Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2019
ASSETS Note V 30 June 2019 31 December 2018
Current assets
Cash and bank balances 1 8086328508.49 8089781304.56
Notes receivable 2 790664828.26 1357311929.63
Accounts receivable 3
11826440731.59 9336861647.92
Receivable f inancing 4 325439580.18 -
Advances to suppliers 5 357078819.64 583484515.95
Other receivables 6
654086387.85 643493359.32
Incl:Interest receivable 14791483.10 8223327.64
Inventories 7 4882673616.27 4389335942.19
Other current assets 8 97317287.60 95347629.18
Total current assets 27020029759.88 24495616328.75
Non-current assets
Long-term equity investments 9 2077811395.30 1880393786.10
Other equity instruments
investment
10
13685760.00 13685760.00
Other non-current f inancial assets 11 140000000.00 140000000.00
Investment properties 12 140319140.00 144894495.97
Fixed assets 13
593552480.99 607933827.67
Construction in progress 14 31980582.21 36412614.61
Right-of-use assets 15 1910981197.63 -
Intangible assets 16
320522690.59 319207126.15
Goodw ill 17 847041800.60 833547800.60
Long-term prepaid expenses 18 311311781.97 311328706.46
Deferred tax assets 19
65417507.01 74914209.95
Other non-current assets 20 66944586.76 72365863.71
Total non-current assets 6519568923.06 4434684191.22
Total assets 33539598682.94 28930300519.97
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 2019
LIABILITIES Note V 30 June 2019 31 December 2018
Current liabilities
Short-term borrowings 21 3290877595.23 2597652702.43
Notes payable 22 3539095262.34 3416755681.80
Accounts payable 23 8088697602.94 6468535961.17
Advances from customers - -
Employee benefits payable 25 161719082.78 231866407.40
Tax payable 26 215579001.83 241980412.72
Other payables 27 1474526698.43 1539436971.93
Incl: Interest payable 29012444.93 21906660.63
Dividends payable 6389320.96 6389320.96
Contract liabilities 24 239739020.90 255590612.37
Non-current liabilities due w ithin one year 28 558296784.75 5861324.37
Other current liabilities 29 445493.48 292465.75
Total current liabilities 17568976542.68 14757972539.94
Non-current liabilities
Long-term borrow ings 30 - 31600000.00
Lease liabilities 31 1186461123.96 -
Long-term payables 32 800000.00 4563978.52
Long-term employee benefits payable 33 1915000.00 2050000.00
Deferred income 34 88722818.18 91491170.40
Deferred tax liabilities 19 66386258.77 67605161.88
Other non-current liabilities 35 67840696.09 69241176.18
Total non-current liabilities 1412125897.00 266551486.98
Total liabilit ies 18981102439.68 15024524026.92
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 2019
SHAREHOLDERS’ EQUITY Note V 30 June 2019 31 December 2018
Shareholders’ equity
Share capital 36 428126983.00 428126983.00
Capital surplus 37 4363409728.51 4320984981.51
Surplus reserve 38 214063491.50 214063491.50
Retained earnings 39
7134839714.47 6655257147.27
Shareholders’ equity attributable
to shareholders of the parent
12140439917.48 11618432603.28
Non-controlling interests
2418056325.78 2287343889.77
Total shareholders’ equity 14558496243.26 13905776493.05
Total liabilities and shareholders’
equity
33539598682.94 28930300519.97
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 2019
Note V
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Operating revenue 40 25228147377.43 20778425602.22
Less: Operating costs 40 22415519952.87 18367643723.84
Tax and surcharge 41 62139226.44 56620527.25
Selling expenses 42 1483332500.73 1273588756.07
Administrative expenses 43 377216694.13 351820063.78
Finance costs 44 104095254.24 57541544.32
Incl: Interest cost 169529472.37 83356367.18
Interest income 60630036.91 23082233.56
Add: Other incomes 45 14990919.02 11330310.02
Investment income 46 169142289.99 162693771.35
Incl: Investment income from
associates
169142289.99 162662271.35
Impairment loss on f inancial assets 47 (11434101.13) 1026702.24
Impairment losses 48
(125554.34) (508849.26)
Gain on disposal of assets 49 (29725.44) 4281164.61
Operating profits 958387577.12 850034085.92
Add: Non-operating income 50 3667170.25 5498951.11
Less: Non-operating expenses 51 1718265.56 1797292.80
Total profit 960336481.81 853735744.23
Less: Income taxes 52 192243926.50 164486734.32
Net profit 768092555.31 689249009.91
Net Profit from continuing operations 768092555.31 689249009.91
Net profit attributable to shareholders of the parent 650833360.40 641727034.93
Profit or loss of non-controlling interests 117259194.91 47521974.98
Total comprehensive income 768092555.31 689249009.91
Incl: Total comprehensive income for the year
attributable to owners of the parent
650833360.40 641727034.93
Total comprehensive income for the year
attributable to non-controlling interests
117259194.91 47521974.98
Earnings per share
Basic earnings per share 1.52 1.50
Diluted earnings per share 1.52 1.50
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 2019
For the six months ended
30 June 2019
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 - 4320984981.51 214063491.50 6655257147.27 11618432603.28 2287343889.77 13905776493.05
others - - - - - - - -
Opening balance of the current year 428126983.00 - 4320984981.51 214063491.50 6655257147.27 11618432603.28 2287343889.77 13905776493.05
Movements in the current year - - 42424747.00 - 479582567.20 522007314.20 130712436.01 652719750.21
(1) Total comprehensive income - - - - 650833360.40 650833360.40 117259194.91 768092555.31
(2) Capital paid and reduced by
owners - - 42424747.00 - - 42424747.00 14780000.00 57204747.00
1.Capital injection by owners - - - - - - 14780000.00 14780000.00
2.Others - - 42424747.00 - - 42424747.00 - 42424747.00
(3) Profit distribution - - - - (171250793.20) (171250793.20) (1326758.90) (172577552.10)
1.Distribution to equity owners - - - - (171250793.20) (171250793.20) (1326758.90) (172577552.10)
2.Others - - - - - - - -
Closing balance of the current year 428126983.00 - 4363409728.51 214063491.50 7134839714.47
12140439917.48 2418056325.78 14558496243.26
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 2019
For the six months ended
30 June 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
others - - - - - - - -
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.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 CASH FLOW STATEMENT
For the six months ended 30 June 2019
Note V
For the six months ended
30 June 2019
For the six months ended
30 June 2018
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of
services 25674088675.82 22055082715.59
Tax refunds 2721287.63 1593193.21
Cash receipts related to other operating activities 53 295482211.20 311984787.60
Sub-total of cash inflows from operating activities 25972292174.65 22368660696.40
Cash paid for goods and services 22598237854.68 19799894631.80
Cash paid to and on behalf of employees
1088230430.51 956322585.28
Cash paid for all types of taxes
627174776.80 548616793.36
Cash payments related to other operating
activities 53
494891531.31 838468976.76
Sub-total of cash outf lows from operating
activities
24808534593.30 22143302987.20
Net cash f lows from operating activities 54 1163757581.35 225357709.20
2.CASH FLOWS FROM INV ESTING ACTIVITIES
Cash received from returns on investments
20129463.78 78825446.85
Net cash received from disposal of f ixed assets
intangible assets and other long-term assets
801205.52 6064099.87
Cash receipts related to other investing activities 53 - 48766145.15
Sub-total of cash inflows from investing activities 20930669.30 133655691.87
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 2019
Note V
For the six months
ended 30 June
2019
For the six months
ended 30 June
2018
2.CASH FLOWS FROM INV ESTING ACTIVITIES(Continued)
Cash paid for acquisition of f ixed assets
intangible assets and other long-term assets
111399813.51 97867494.61
Cash paid for acquisition of investments 43674685.30 10000000.00
Cash payments related to other investing activities 53 1093125.00 43999800.00
Sub-total of cash outf lows from investing activities 156167623.81 151867294.61
Net cash f lows from investing activities (135236954.51) (18211602.74)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 14780000.00 11781200.00
Incl: Cash received from capital contributions from
non-controlling shareholders of
subsidiaries
14780000.00 11781200.00
Cash received from borrowings 16700000.00 40775440.04
Cash receipts related to other f inancing activities 53 3512659.71 83745164.60
Sub-total of cash inflows from financing activities 34992659.71 136301804.64
Cash repayments for debts 73261634.53 79670200.30
Cash payments for distribution of dividends or profit
and interest expenses
343055058.89 226149759.15
Incl: Profit and dividends paid to non-controlling
shareholders of subsidiaries
1326758.90 40392215.98
Cash payments related to other f inancing activities 53 510162167.74 118725719.23
Sub-total of cash outf lows from financing activities 926478861.16 424545678.68
Net cash f lows from financing activities (891486201.45) (288243874.04)
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 2019
Note V For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS
(176567.25) 314863.47
5.NET INCREASE IN CASH AND CASH EQUIVALENTS 54 136857858.14 (80782904.11)
Add: Cash and cash equivalents at beginning of the
year
7632117020.77 3673498691.48
6.CASH AND CASH EQUIVALENTS AT END OF YEAR 54
7768974878.91 3592715787.37
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET
As at 30 June 2019
ASSETS Note XIV 30 June 2019 31 December 2018
Current assets
Cash and bank balances 2210653256.99 1817654598.01
Notes receivable 70539252.94 63870980.39
Accounts receivable 1 610075622.91 631236593.94
Advances to suppliers 3875346.87 4760182.00
Other receivables 2 1858484572.60 1541980883.50
Incl:Interest receivable 14926690.76 7550877.07
Dividends receivable 106074898.00 -
Inventories 225040528.88 158166185.65
Other current assets 39482.38 39482.38
Total current assets 4978708063.57 4217708905.87
Non-current assets
Long-term equity investments 3 7639715544.55 7432906692.24
Other non-current financial assets 140000000.00 140000000.00
Investment properties 1635946.12 1955854.46
Fixed assets 19952922.05 21362422.03
Right-of-use assets 6316333.03 -
Intangible assets 2997883.63 2452222.51
Long-term deferred expenses 6990428.04 7481809.53
Other non-current assets 7000000.00 7000000.00
Total non-current assets 7824609057.42 7613159000.77
Total assets 12803317120.99 11830867906.64
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 2019
LIABILITIES 30 June 2019 31 December 2018
Current liabilities
Short-term borrowings 570000000.00 539000000.00
Notes payable 321344616.65 252317800.78
Accounts payable 547918074.90 442049241.22
Contract liabilities 9058538.51 4182083.40
Employee benefits payable 34702315.82 36233563.12
Tax payables 11430926.20 13426601.90
Other payables 1729610132.84 1481817856.56
Incl:Interest payable 5588978.10 1354592.35
Non-current liabilities due within one
year
32452757.27 -
Other current liabilities 208701.01 226427.99
Total current liabilities 3256726063.20 2769253574.97
Non-current liabilities
Long-term borrowings - 31600000.00
Lease liabilities 5584622.27 -
Long-term payables 800000.00 800000.00
Long-term employee benefits payable 102000.00 118000.00
Deferred income 1508786.84 1687899.50
Deferred tax liabilities 1635298.63 2298426.39
Total non-current liabilities 9630707.74 36504325.89
Total liabilities 3266356770.94 2805757900.86
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 2019
SHAREHOLDERS’ EQUITY 30 June 2019 31 December 2018
Shareholders’ equity
Share capital 428126983.00 428126983.00
Capital surplus 4468787524.26 4426362777.26
Surplus reserves 214063491.50 214063491.50
Retained earnings 4425982351.29 3956556754.02
Total shareholders’ equity 9536960350.05 9025110005.78
Total liabilities and shareholders’ equity
12803317120.99 11830867906.64
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 2019
Note XIV
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Operating revenue 4 2008004563.30 1687621355.83
Less: Operating costs 4 1921272394.76 1614717473.91
Tax and surcharge 2519247.99 2016368.93
Selling expenses 31052044.81 25894795.45
Administrative expenses 38056806.31 33679106.75
Finance costs (28398244.00) (19369880.08)
Incl: Interest cost 23271307.72 20770113.43
Interest income 52479722.42 40925200.74
Add: Other incomes 332764.13 1299345.14
Investment income 5 608288420.47 534840744.46
Incl: Investment income from associates 181280533.11 173326290.14
Impairment loss on f inancial assets (2365765.08) 7411.02
Impairment losses (102112.84) (630953.33)
Gain on disposal of assets (26074.52) -
Operating profits 649629545.59 566200038.16
Add: Non-operating income 46069.40 33.08
Less: Non-operating expenses - 127688.63
Total profit 649675614.99 566072382.61
Less: Income taxes 8999224.52 6292873.84
Net profit 640676390.47 559779508.77
Net Profit from continuing operations 640676390.47 559779508.77
Total comprehensive income 640676390.47 559779508.77
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 2019
For the six months ended 30
June 2019
Share capital
Other equity
instruments
Capital surplus Surplus reserve Retained earnings Total equity
Closing balance of the preceding
year 428126983.00 - 4426362777.26 214063491.50 3956556754.02 9025110005.78
Others - - - - - -
Opening balance of the current
year 428126983.00 - 4426362777.26 214063491.50 3956556754.02 9025110005.78
Movements in the current year - - 42424747.00 - 469425597.27 511850344.27
(1) Total comprehensive income - - - - 640676390.47 640676390.47
(2) Capital paid and reduced by
ow ners - - 42424747.00 - - 42424747.00
1. Capital injection by
ow ners - - - - - -
2. Others - - 42424747.00 - - 42424747.00
(3) Profit distribution - - - - （171250793.20） （171250793.20）
1. Distribution to ow ners - - - - （171250793.20） （171250793.20）
Closing balance of the current
year 428126983.00 - 4468787524.26 214063491.50 4425982351.29 9536960350.05
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 six months ended 30 June 2019
For the six months ended 30 June
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
ow ners
- - 397342.21 - - 397342.21
1. Capital injection by owners - - - - - -
2. Others - - 397342.21 - - 397342.21
(3) Profit distribution - - - - (128438094.90) (128438094.90)
1. Distribution to ow ners - - - - (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 CASH FLOW STATEMENT
For the six months ended 30 June 2019
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering
of services 2136424520.77 1787065555.60
Cash receipts related to other operating
activities 18658823.82 43943301.92
Sub-total of cash inflows from operating
activities 2155083344.59 1831008857.52
Cash paid for goods and services 1905147658.61 1655107446.18
Cash paid to and on behalf of employees 48424818.87 44855325.83
Cash paid for all types of taxes 27913893.13 18706775.51
Cash payments related to other operating
activities
17265038.12 36183479.25
Sub-total of cash outf lows from operating
activities 1998751408.73 1754853026.77
Net cash f lows from operating activities 156331935.86 76155830.75
2. CASH FLOWS FROM INV ESTING ACTIVITIES
Cash received from returns of investments 55106832.79 187137437.23
Net cash received from disposal of f ixed assets
intangible assets and other long-term assets
119000.00 -
Cash receipts related to other investing activities 996340000.00 857940000.00
Sub-total of cash inflows from investing activities 1051565832.79 1045077437.23
Cash paid for acquisition of f ixed assets
intangible assets and other long-term assets 5983680.11 6044462.78
Cash paid for investments - 10000000.00
Cash payments related to other investing
activities 1200340000.00 1051642980.00
Sub-total of cash outf lows from investing
activities 1206323680.11 1067687442.78
Net cash f lows from investing activities (154757847.32) (22610005.55)
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 2019
183
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from borrowings 10000000.00 10000000.00
Cash receipts related to other f inancing
activities
11037461719.13 8065884436.80
Sub-total of cash inflows from financing
activities
11047461719.13 8075884436.80
Cash repayments for debts 10000000.00 10000000.00
Cash payments for distribution of dividends or
profit and interest expenses
182679899.11 144898008.66
Cash payments related to other f inancing
activities
10463180682.33 8230488300.78
Sub-total cash outf lows from financing activities 10655860581.44 8385386309.44
Net cash f lows from financing activities 391601137.69 (309501872.64)
4.EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH AND CASH
EQUIVALENTS
(176567.25) 314863.47
5. NET INCREASE IN CASH AND CASH
EQUIVALENTS
392998658.98 (255641183.97)
Add: Cash and cash equivalents at beginning of
the year
1817654598.01 1776696342.87
6. CASH AND CASH EQUIVALENTS
AT END OF YEAR
2210653256.99 1521055158.90
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
20
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 2019.
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 t he 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 six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
21
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 2019 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 vit ro 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 six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
22
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 22 August 2019.
(4) Subsidiaries consolidated in the financial statements for the current peri od and change in the
consolidation scope are shown in Note VI.
II Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards
of 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 accounts receivable
(NoteⅢ (10)) inventory costing methods (NoteⅢ (13)) depreciation methods for fixed assets and
amortization method for intangible assets (NoteⅢ(18)NoteⅢ(22)) judgement basis for capitalization of
development costs (NoteⅢ(22)) impairment of long-term assets (NoteⅢ(23)) revenue recognition
(NoteⅢ(30)).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
23
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 year ended 30 June 2 019 are in compliance with
Accounting Standards for Business Enterprises and truly and completely present the financial position
of the Group and the Company as of 30 June 2019 and the operating results cash flows and other
information for the six months ended 30 June 2019 of the Group and the Company.
(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 the 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 t ransaction costs of issuing
equity securities or debt securities for a 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 cur rent 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.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 fa ir value on the
acquisition date with the difference between the fair value and carrying amount recognized as
investment income for the current period.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
24
III Summary of significant accounting policies and accounting estimates (Continued)
(4) Business combinations (Continued)
(b) Business combinations involving enterprises not under common control (Continued)
If the acquirer’s previously held equity interests of the acquiree involve other comprehensive income
(“OCI”) under the equity method the account ing t reatment 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 cha rged to
profit or loss for the current period on the acquisition date. For financial assets at fair value through OCI
held before the acquisition date changes in fair value that was accumulated through OCI will transfer to
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 attribut able 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. The unrealized gain
or loss from selling assets to subsidiaries fully offsets the net income attributable to equity holders of the
Company. The 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. The unrealized gain or loss from a
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 t ransaction arise
within different accounting identities which are set up 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 six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
25
III Summary of significant accounting policies and accounting estimates (Continued)
(5) Preparation of consolidated financial statements (Continued)
When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-
term equity investment in the subsidiary in stages if each of the multiple transactions does not form part
of a bundled transaction the transactions conducted before the loss of control of the subsidiary are
accounted for in accordance with the accounting policy for partial disposal of the equity investment in
subsidiaries where control is retained. If each of the multiple transactions forms part of a bundled
transaction which eventually results in the loss of control in the subsidiary these multiple transactions
are accounted for as a single transaction. In the consolidated financial statements the difference
between the consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of control shall
be recognized in other comprehensive income and transferred to profit or loss when the parent
eventually loses control of the subsidiary.
(6) Cash and cash equivalents
Cash and cash equivalents 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.
(7) Foreign currency translation
Foreign currency transactions are 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 for eign
currency borrowings that have been taken out specifically for the acquisition or construction of
qualifying assets which are capitalized as part of the cost of those assets. Non-monetary items
denominated in foreign currencies that are measured at historical cost are translated at the balance
sheet date using the spot exchange rates at the dates of the transactions. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.
(8) Financial instruments
Financial instruments are the contracts that formed the financial assets of one entity and at the same
time formed the financial liabilities or equity instruments of other entities.Recognition and derecognition of financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the instrument.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
26
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Recognition and derecognition of financial instruments (Continued)
The Group derecognises a financial asset part of a financial asset or group of financial assets i.e.offset from the accounts and statement of financial position if either of the follo wing conditions is
satisfied:
(i) The contractual rights to the cash flows from the financial asset expire; or
(ii) The contractual rights to the cash flows from the financial asset are transferred out or obligated
to transfer out all generated cash flows on receipt; and (a) substantially all the risks and
rewards of ownership of the financial asset are transferred to the t ransferee; or (b) the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.The Group derecognises a financial liability only when the underlying present obligation is settled
discharged or expired. An agreement to replace the original financial liability with a new financia l liability
with substantially different terms or to modify the original financial liability’s terms substantially is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability Derecognized and
the new financial liability should be recognised in profit or loss for the current period.
All regular means of purchases or sales of financial assets are recognised and Derecognized on a trade
date basis. Regular means of purchases or sales are purchases or sales of financial assets that require
delivery of assets within the period generally established by regulation or convention in the marketplace.Trade date is the date that the Group commits to purchase or sell the financial asset.
Classification and measurement of financial assets
At initial recognition the Group classifies its financial assets into: financial assets at fair value through
profit or loss financial assets at amortised cost or financial assets at fair value through other
comprehensive income according to the Group’s business model for managing financial assets and the
contract cash flow characteristics of the financial assets. Financial assets are measured at fa ir value at
initial recognition provided that trade receivables or bills receivable not containing significant financing
components or for which financing components of not more than 1 year are not taken into consideration
shall be measured at their transaction prices at initial recognition.
For financial assets at fair value through profit or loss the relevant transaction costs are directly
recognised in profit or loss; for other financial assets the relevant transaction costs are recognised in
their initial recognition amount.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
27
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
Subsequent measurement depends on the classification of the financial assets:
Financial assets measured at amortised cost (debt instruments)
The Group measures financial assets at amortized cost if both of the following conditions are met: The
financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows; The contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.Interest income of this kind of financial assets is recognized using the effective interest method. Gains
and losses are recognized in the income statement when the asset is derecognized modified or
impaired. These financial assets mainly include cash and cash equivalents bills receivable and trade
receivables other receivables debt investment and long-term receivables. Debt investments and long-
term receivables due within one year from the balance sheet date are reported by the Group as current
portion of non-current assets and debt investments due within one year from the original maturity date
are reported as other current assets.
Financial assets at fair value through other comprehensive income (debt instruments)
The Group measures debt investments at fair value through other comprehensive income if both of the
following conditions are met: The financial asset is held within a business model with the objective of
both holding to collect contractual cash flows and selling; The contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. Changes in fair values are recognized in other comprehensive income
except that interest income impairment losses and exchange differences are recognized in current
profit or loss. Upon derecognition the cumulative fair value change recognised in other comprehensive
income is transferred to profit or loss. Such financial assets are reported as other debt investment.Other debt investment due within one year from the balance sheet date is reported as a current portion
of non-current assets and other debt investment due within one year from the original maturity date is
reported as an item of other current assets.
Financial assets designated at fair value through other comprehensive income (equity investments)
The Group irrevocably chooses to designate some non -tradable equity instrument investments as
financial assets at fair value through other comprehensive income. Only relevant dividend income
(excluding dividend income explicitly recovered as part of investment cost) is recognized in profit or loss
and subsequent changes in fair value are included in other comprehensive income without provision for
impairment. When financial assets are derecognized the accumulated gains or losses previously
recognized in other comprehensive gains are transferred from other comprehensive income and
recognized in retained earnings. Such financial assets are reported as other equity investment.If one of the following conditions is met it is a held-for-trading financial asset: the acquisition of the
relevant financial asset is intended primarily for sale or repurchase in the near future; it is a part of the
port folio of identifiable financial instruments under centralized management and there is objective
evidence that the short-term profit model is adopted in the near future; it is a derivative except for a
derivative that is designated as a valid hedging instrument other than a derivative that complies with a
financial guarantee contract.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
28
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
Financial assets at fair value through profit or loss
Financial assets other than the above-mentioned financial assets at amortised cost and financial assets
at fair value through other comprehensive income are classified as financ ial assets at fair value through
profit or loss. For such financial assets fair value is used for subsequent measurement and all changes
in fair value are recognised in profit or loss. Such financial assets are presented as held -for-trading
financial assets and are presented as other non-current financial assets if they expire after more than
one year from the balance sheet date or expected to be held more than one year from the balance
sheet date.Only when an accounting mismatch is eliminated or signi ficantly decreased financial assets are
designated as financial assets at fair value through profit or loss at initial recognition.When an enterprise initially designates a financial asset as a financial asset at fair value through profit
or loss it cannot be reclassified to other financial assets; other financial assets cannot be re-designated
after initial recognition as financial assets measured at fair value through profit or loss.When and only when the Group changes its business model of managing financial assets it reclassifies
all relevant financial assets affected.
Classification and measurement of financial liabilities
On initial recognition of financial liabilities of the Group are classified as financial liabilities at fair value
through profit or loss other financial liabilities and derivatives designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss the relevant transaction costs are
directly recognized in profit or loss and the related transaction costs of other financial liabilities are
recognized in their initial amount.Subsequent measurement of financial liabilities is determined by its classification:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss consist of held for trading financial liabilities
(including derivatives belonging to financial liabilities) and financial liabilities designated on initial
recognition as financial liabilities at fair value through profit or loss.
Financial liabilities are held-for-trading financial liabilities if one of the following conditions are met: the
purpose of assuming related financial liabilities is mainly to sell or repurchase in the near future; they
are part of a centrally managed identifiable portfolio of financial instruments and there is objective
evidence that enterprises have adopted a short-term profitability model in the near future; they are
derivatives excluding derivatives that are designated as effective h edging instruments and derivatives
that meet the financial guarantee contract. Held-for-trading financial liabilities (including derivatives
belonging to financial liabilities) are subsequently measured at fair value. Except for hedging accounting
all changes in fair value are recognized in profit or loss.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
29
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial liabilities (Continued)
Only if one of the following conditions is met can financial liabilities be designated as financial liabilities
at fair value through profit or loss on initial recognition: (1) It can eliminate or significantly reduce the
accounting mismatch. (2) The formal written document of risk management or investment strategy has
stated that the port folio of financial instruments is managed evaluated and reported to key managers
on the basis of fair value. (3) The financial liability is a hybrid instrument that contains one or more
embedded derivatives unless the embedded derivatives have no significant change in the cash flows of
the hybrid instrument or the embedded derivatives should obviously not be separated from the related
hybrid instruments. (4) Mixed instruments contain embedded derivatives that need to be split but cannot
be measured separately at the time of acquisition or on subsequent balance sheet days.
For such financial liabilities subsequent measurements are made at fair value. Changes in fair value
caused by changes in the Group’s own credit risk are recognized in other comprehensive income while
other changes in fair value are recognized in profit or loss. Unless changes in fair value caused by
changes in the Group's own credit risk recognized in other comprehensive income may result in or
expand accounting mismatches in profit or loss the Group shall recognize all changes in fair value
(including the amount of impact of changes in its own credit risk) in profit or loss.When an enterprise
designates a financial liability as a financial liability at fair value through profit or loss it cannot be
reclassified as other financial liabilities; nor can other financial liabilities be re-designated as financial
liabilities at fair value through profit or loss after initial recognition.Other financial liabilities
For such financial liabilities subsequent measurement is made at amortized cost using the effective
interest rate method.Impairment of financial assets
Based on expected credit losses the Group undertakes impairment treatment and confirms loss
provisions of financial assets at amortized cost debt instrument investments at fair value through other
comprehensive income and financial guarantee contracts.
Credit loss refers to the difference between the cash flows of all contracts discounted at the original
effective interest rate and the expected cash flows of all contracts receivable i.e. the present value of
all cash shortages. Among them the financial assets purchased by or originated from the Group to
which credit impairment has occurred shall be discounted at the effective interest rate adjusted by the
credit of the financial assets.
For trade receivables and contractual assets that do not contain significant financing components the
Group uses a simplified measurement method to measure loss provisions in accordance with the
amount of expected credit losses equivalent to the entire life cycle.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
30
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Impairment of financial assets (Continued)
For trade receivables and contractual assets with significant financing components the Group uses a
simplified measurement method to measure loss provisions in accordance with the amount of the
expected credit loss equivalent to the entire lifetime.
For financial assets other than those measured with simplified valuation methods the Group evaluates
at each balance sheet date whether its credit risk has significantly increased since initial recognition.The period during which credit risk has not significantly increased since initial recognition is considered
the first stage at which the Group shall measure the loss provision based on the amount of the
expected credit loss for the next 12 months and shall compute interest income according to the book
balance and effective interest rate; the period during which credit risk has significantly increased since
initial recognition although no credit impairment has occurred is considered the second stage at which
the Group shall measure the loss provision based on the amount of the expected credit loss for the
entire valid period and shall compute interest income according to the book balance and effective
interest rate; The period during which credit impairment has occurred after initial recognition is
considered the third stage at which the Group shall measure the loss provision based on the amount of
the expected credit loss for the entire period and shall compute interest income according to the
amortised cost and effective interest rate. For financial instruments with relatively low credit risk at the
balance sheet date the Group assumes that its credit risk has not significantly increases since initial
recognition.The Group evaluates the expected credit losses of financial instruments on a single and combined
basis. Taking into account the credit risk characteristics of different customers the Group evaluates the
expected credit losses of trade receivables based on the agi ng port folio.In assessing expected credit losses the Group takes into account reasonable and valid information on
past events current conditions and future economic forecasts.Refer to Notes VIII.3 for the disclosure of the Group's criteria for judging the significant increase in
credit risk the definition of assets with impaired credit losses and the assumption of measuring
expected credit losses.When the Group no longer reasonably expects to be able to recover all or part of the contract cash
flows of the financial assets the Group will write off the book value of the financial assets directly.Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of
financial position if there is a currently enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis or to realize the financial assets and settle the financial
liabilities simultaneously.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
31
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Modification of financial assets
Where the Group modifies or renegotiates the contract with its counterparty and does not result in the
derecognition of financial assets but results in a change in the cash flow of the contract the Group
recalculates the book value of the financial asset on the basis of the renegotiated or modified contract
cash flows at the discounted value of the original effective interest rate (or credit-adjusted effective rate
of interest) of the financial asset and the related gains or losses are recognized in profit or loss. The
revised cost or expense of the financial assets adjust the book value of the financial assets and are
amortized within the remaining period of the modified financial assets.Transfer of financial assets
The Group derecognises a financial asset when it has transferred substantially all the risks and rewards
of ownership of the financial asset to the transferee; the Group does not derecognize those financial
assets when it retains substantially all the risks and rewards of the ownership.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of financial
assets the related accounting treatments of such financial assets are as follows: the Group
derecognises financial assets when it retains no control on them and associated assets and liabilities
are recognised at the same time. If the Group retains control of the financial asset it recognizes the
financial asset to the extent of its continuing involvement in the transferred financial asset and
recognizes an associated liability.
Continuing involvement that takes the form of a financial guarantee over the trans ferred asset is
measured at the lower of the original carrying amount of the asset and the financial guarantee. The
amount of the financial guarantee is the maximum amount of consideration that the Group could be
required to repay.
(9) Notes receivables
For details of the method for determining the expected credit loss of notes receivable please refer to
“III.8 Financial instruments - Impairment of financial instruments.”
(10) Accounts Receivable
For details of the method for determining the expected credit loss of accounts receivable please refer
to “III.8 Financial instruments - Impairment of financial instruments.”
(11) Accounts Receivable Financing
It includes notes receivable and accounts receivable that are measured at fair value on the bala nce
sheet date and whose changes are included in other comprehensive income.
For details of the method for determining the expected credit loss of receivables financing please refer
“III.8 Financial instruments - Impairment of financial instruments.”
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
32
III Summary of significant accounting policies and accounting estimates (Continued)
(12) Other receivables
For details of the method for determining the expected credit losses of other receivables please refer to
“III.8 Financial instruments - Impairment of financial instruments.”
(13) Inventories
Inventories include raw materials work in progress finished goods delegate processing supplies and
turnover materials and are measured at the lower of cost and net realizable value.
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.
Basis for determining the net realizable values of inventories and method for making provisions for
decline in the value of inventories
Provisions for decline 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.The Group adopts the perpetual inventory system.
(14) Contract asse ts
The unconditional (namely dependent only on the passage of time) right to receive consideration from
customers owned by the Group shall be presented as amounts receivable. The right to receive
consideration following the transfer of products to customers which is dependent on factors other than
the passage of time is presented as contract assets.
(15) Assets relating to contract cost
The Group’s assets relating to contract costs include the contract acquisition costs and contract
performance costs presented respectively under inventories other current assets and other non -
current assets.Where the Group expects the incremental costs for acquiring a contract to be recoverable such
contract acquisition costs are recognised as an asset (unless the amortisation period of the asset is not
more than 1 year).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
33
III Summary of significant accounting policies and accounting estimates (Continued)
(15) Assets relating to contract cost (Continued)
Costs incurred by the Group for the performance of a contract are recognised as an asset as contract
performance costs if they do not fall under the scope of the relevant standards for inventories fixed
assets or intangible assets but meet all the following conditions:
(1) They are directly related to a current or anticipated contract including direct labour direct
materials manufacturing expenses (or similar expenses) to be borne by customers as
specifically stipulated and otherwise incurred solely in connection with the contract;
(2) they will increase the resources to be utilised in the Company’s future performance of its
contractual obligations; and
(3) they are expected to be recoverable.
The Group amortises assets relating contract costs on the same basis as that for the recognition of
revenue relating to such assets and recognises the amortised assets in current profit or loss.
For assets relating to contract costs whose carrying value is higher than the difference between the
following two items the Group makes provision for impairment for the excess to be recognised as asset
impairment losses:
(1) The remaining consideration expected to be obtained as a result of the transfer of goods
relating to such assets;
(2) Estimated costs to be incurred in connection with the transfer of relevant goods
In the event that the difference between (1) and (2) becomes higher than the carrying value of such
assets as a result of changes in the factors of impairment for previous periods previous provisions for
asset impairment losses should be written back and included in current profit or loss provided that the
carrying asset value following the write-back shall not exceed the carrying value that such assets would
have on the date of write-back were there no provision for impairment.
(16) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries
joint ventures and associates.Long-term equity investments are accounted for using the coast method at the time it was acquired. 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.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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
34
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Long-term equity investments (Continued)
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. For long-term equity investments
acquired by way of the swap of non-monetary assets the initial investment cost shall be determined in
accordance with “ASBE No. 7 — Swap of Non-monetary Assets.” For long-term equity investments
acquired by way of debt restructuring the initial investment cost shall be determined in accordance with
“ASBE No. 12 — Debt Restructuring.”
(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.
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 to
recognize 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 the recognition of provisions under the accounting standards on
contingencies are satisfied the Group continues to recognize 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 a 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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
35
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Long-term equity investments (Continued)
(b) Subsequent measurement and recognition of related profit or loss (Continued)
The unrealized profits or losses arising from the int ra-group transactions amongst the Group and its
investees are eliminated in proportion to the Group’s equity interests in the investees and then based
on which the investment gains or losses are recognized. For the loss on intra-group transactions
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
Cont rol 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.
(17) 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
investment properties are included in the cost of 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.
Estimated useful lives 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 property is transferred to owner -occupied property it is reclassified as a fixed
asset or intangible asset at the date of transfer. When an owner-occupied property is transferred out for
earning rentals or for capital appreciation the fixed asset or intangible asset is reclassified as an
investment property at its carrying amount at the date of transfer.The investment properties’ useful life net residual value and depreciation (amortiz ation) method applied
are reviewed and adjusted as appropriate at the end of each year.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
36
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Investment properties (Continued)
An investment property is Derecognized on disposal or when the investment property 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 property after its carrying amount
and related taxes and expenses is recognized in profit or loss for the current period.
(18) Fixed assets
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. 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.
Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset
at the end of its use is considered. The cost of a fixed asset is the aggregate cost of purchase price
related taxes and any directly attributable expenditure for bringing the asset to its working condition for
its intended use.
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 determin ed based upon the
adjusted carrying amounts over their remaining useful lives.
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
Fixed assets held under finance leases are depreciated under the same depreciation method as other
fixed assets. The assets are depreciated over their estimated useful lives where ownership of the
assets can be reasonably estimated to be gained when lease periods end; otherwise the leased assets
are depreciated over the shorter of the lease terms and the estimated useful lives of the assets.The Group reviews the useful life estimated net residual value of a fixed asset and the depreciation
method applied at least once at each financial year end and adjusts for any change when necessary.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
37
III Summary of significant accounting policies and accounting estimates (Continued)
(18) Fixed assets (Continued)
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.
(19) Construction in progress
Construction in progress is measured at its actual cost. The actual cost includes various necessary
construction expenditures during the construction period borrowing costs capitalised before it is ready
for intended use and other relevant costs.
(20) Borrowing costs
Borrowing costs refer to the interest and other relevant cost incurred from borrowing which include loan
interest discount or amortization of premiums auxiliary expenses and exchange differences due to
foreign currency loans etc.Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization it shall be capitalized and recorded into
the costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of theactual amount incurred and shall be recorded into the current profits and losses. The term “assetseligible for capitalization” shall refer to the fixed assets investment real estate inventories and other
assets of which the acquisition and construction or production may take quite a long time to get ready
for its intended use or for sale.The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
(1) The asset disbursements have already incurred;
(2) The borrowing costs have already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the
asset for its intended use or sale have already started.When the qualified asset under acquisition and construction or production is ready for the intended use
or sale the capitalization of the borrowing costs shall be ceased. Borrowing costs incurred after the
intended use or sale shall be recorded in the current profits and losses.
During the period of capitalization the capitalized amount of interest in each accounting period shall be
calculated and determined in the ways below:
The enterprise shall calculate and determine the interest of a specific loan by deducting interest income
of the loan capital deposit in the bank or investment income obtained from a temporary investment.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
38
III Summary of significant accounting policies and accounting estimates (Continued)
(20) Borrowing costs (Continued)
The enterprise shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used.Where the acquisition and construction or production of a qualified asset is interrupted abnormally and
the interruption period lasts for more than 3 months the capitalization of the borrowing costs shall be
suspended. The borrowing costs incurred during such period shall be recognized as expenses and
shall be recorded into the profits and losses of the current period till the acquisition and construction or
production of the asset restarts.
(21) Right-of-use assets
On the commencement date of the lease term the lessee recognizes the right -of-use asset for the
lease (except for short-term leases and low-value asset leases). The right to use asset costs includes:
the initial measurement amount of the leas liability; the lease payment amount paid on or before the
start date of the lease period (if there is a lease incentive deducting the relevant amount of the lease
incentive); The initial direct cost incurred by the lessee.Where the lessee can reasonably determine the ownership of the leased asset at the expiration of the
lease term the depreciation is provided within the remaining useful life of the leased asset; If it is not
reasonable to determine that the leasehold asset can be acquired at the expiration of the lease term
the depreciation is provided during the period between the lease term and the remaining useful life of
the leased asset. The lessee is required to determine whether the right -of-use asset is impaired at the
same time and accounting for identified impairment losses.
(22) Intangible assets
Intangible assets are recognised and measured on initial recognition at cost only if the related economic
benefits will probably flow into the Group and their costs can be measured reliably. However the
intangible assets acquired through a business combination not involving enterprises under common
control should be measured at fair value separately as intangible assets when their fair values can be
reliably measured.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
39
III Summary of significant accounting policies and accounting estimates (Continued)
(22) Intangible assets (Continued)
The useful life of the intangible assets shall be assessed according to the estimated beneficial period
expected to generate economic benefits for the Group. An intangible asset shall be regarded as having
an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected
to generate economic benefits for the Group.
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
Land use rights obtained by the Group are usually accounted for as intangible assets. As for the
construction of plants factories and other buildings of the Group the related land use rights and other
buildings were accounted for as intangible assets and fixed assets respectively. Purchase costs of land
use rights and buildings were allocated to intangible assets and fixed assets separately. Purchase costs
were recognised as cost of fixed assets only if the separation was impracticable.Intangible assets with a finite useful li fe are amortised over their estimated useful lives using the
straight-line method or other reasonable systematic methods. For an intangible asset with a finite useful
life the Group reviews the useful li fe and amortization method at least once at each financial year end
and makes adjustments when necessary.A land use right granted by the 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.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 the
end of the project.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
40
III Summary of significant accounting policies and accounting estimates (Continued)
(22) Intangible assets (Continued)
Expenditure for investigation evaluation and selection of product ion process and new drug 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.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 asset s at the date
that the asset is ready for its intended use.The Group classifies the expenses for internal research and development as research costs and
development costs. All research costs are charged to the current profit or loss as incurred. Expendit ure
incurred on projects to develop new products is capitalised and deferred only when the Group can
demonstrate the technical feasibility of completing the intangible asset so that it will be available for use
or sale its intention to complete and its ability to use or sell the asset how the asset will generate future
economic benefits (including demonstration that the product derived from the intangible asset or the
intangible asset itself will be marketable or in the case of internal use the usefulness of the intangible
asset as such) the availability of technical and financial resources to complete the project and procure
the use or sale of the intangible asset and the ability to measure reliably the expenditure during the
development. Product development expenditure which does not meet these criteria is expensed when
incurred.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
41
III Summary of significant accounting policies and accounting estimates (Continued)
(23) 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.Goodwill that is separately presented in the financial statements intangible assets with infinite useful
lives and capitalized development costs are tested at least annually for impairment irrespective of
whether there is any indication that it may be impaired. In conducting the test the carrying value of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit
from the synergies of the business combination. If the result of the test indicates that the recoverable
amount of an asset group or a 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.
(24) 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.
(25) Contract liabilities
The obligation to pass products to customers in connection with customer consideration received or
receivable is presented as contract liabilities for example amounts received prior to the transfer of the
promised products.
Contract assets and contract liabilities under the same contract are presented on a net basis after set -
off.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
42
III Summary of significant accounting policies and accounting estimates (Continued)
(26) Employee benefits
Short-term employee benefits
The actual occurred short-term employee benefits are recognizes as liabilities during the accounting
period in which the service has been rendered by the employees and as costs of assets or expenses to
whichever the employee service is attributable.Post-employment benefits (defined contribution plans)
The employees in the Group participate in social insurance and unemployment insurance schemes
administrated by the local governments and the related expenditures are recorded in cost of related
assets or profit or loss in the period when they incurred.Post-employment benefits (defined benefit plans)
The Group operates a defined benefit pension scheme. No funds have been injected into the scheme.The cost of benefits provided under the defined benefit scheme is calculated using the expected benefit
accrual unit approach.Remeasurement arising from defined benefit pension schemes including actuarial gains or losses
changes in the asset cap effect (deducting amounts included in net interest) and returns on scheme
assets (deducting amounts included in net interest) are instantly recognised in the balance sheet and
charged to shareholders’ equity through other comprehensive income for the period during which it is
incurred. It will not be reversed to profit and loss in subsequent periods.Previous service costs are recognised as current expenses when: the defined benefit scheme is
revised or relevant restructuring costs or termination benefits are recognised by the Group whichever
earlier.Net interest is arrived at by multiplying net liabilities or net assets of defined benefits with a discount
rate. Changes in net obligations of defined benefits are recognised as operating costs and
administration expenses in the income statement. Service costs included current services costs past
service costs and settlement of profit or loss. Net interest included interest income from scheme assets
interest expenses for scheme obligations and interest of the asset cap effect.Termination benefits
The Group recognizes a liability for termination benefits and charges to profit or loss at the earlier of the
following dates: a) when the Group can no longer withdraw from the termination plan or the redundancy
offer; and b) when the Group recognizes costs or expense for a restructuring plan which involves the
payment of termination benefits.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
43
III Summary of significant accounting policies and accounting estimate s (Continued)
(26) Employee benefits (Continued)
Other long term employee benefits
Other long-term employees’ benefits provided to employees shall be recognised and measured as net
liabilities or net assets where provisions regarding post-employment benefits are applicable provided
that changes shall be included in current profit and loss or related capital costs.
(27) Lease liability
On the commencement date of the lease term the lessee recognizes the lease liability for the lease
(except for short-term leases and low-value asset leases). The lease liability is initially measured using
the incremental borrowing rate as the present value of the discount rate based on the lease payments
that have not been paid on the start date of the lease term. At the same time the lessee calculates the
interest expense of the lease liability for each period of the lease term based on the effective interest
method and recognizes it in profit or loss for the current period.
(28) 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 commo n control:
(1) The obligation is a present obligation of the Group;
(2) It is probable that an out flow of economic benefits from the Group will be required to settle
theobligation; 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.
For business combinations not under common control 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 six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
44
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Share-based payments
The share-based payments shall consist of equity-settled share-based payments and cash-settled
share-based payments. The term "equity-settled share-based payment" refers to a transaction in which
the group grants shares or other equity instruments as a consideration in return for services.The equity-settled share-based payment in return for employee services shall be measured at the fair
value of the equity instruments granted to the employees. As to an equity -settled share-based payment
in return for services of employees i f the right may be exercised immediately after the grant the fair
value of the equity instruments shall on the date of the grant be included in the relevant cost or
expense and the capital reserves shall be increased accordingly. As to an equity-settled share-based
payment in return for employee services i f the right cannot be exercised until the vesting period comes
to an end or until the prescribed performance conditions are met then on each balance sheet date
within the vesting period the Group shall make the best estimate of the number of vested equity
instruments based on the latest movement of the granted employee the content of prescribed
performance and other conditions. Based on the best estimate the services obtained in the current
period shall be included in the relevant costs or expenses and the capital reserves at the fair value of
the equity instruments on the date of the grant.
For awards that do not ultimately vest because non-market performance and service conditions have
not been met no expense is recognised. Where awards include a market or non-vesting condition the
transactions are treated as vesting irrespective of whether the market or non -vesting condition is
satisfied provided that all other performance and service conditions are satisfied.Where the terms of an equity-settled award are modified as a minimum an expense is recognised as if
the terms had not been modified if the original terms of the award are met. In addition an expense is
recognised for any modification that increases the total fair value of the share -based payments or is
otherwise beneficial to the employee as measured at the date of modification.Where an equity-settled award is cancelled it is treated as if it had vested on the date of cancellation
and any expense not yet recognised for the award is recognised immediately. This includes any award
where non-vesting conditions within the control of either the Group or the employee are not met.However if a new award is substituted for the cancelled award and is designated as a replacement
award on the date that it is granted the cancelled and new awards are treated as if they were a
modification of the original award as described in the previous paragraph.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
45
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Share-based payments (Continued)
A cash-settled share-based payment shall be measured in accordance with the fair value of liability
calculated and confirmed based on the shares or other equity instruments undertaken by an enterprise.
As to a cash-settled share-based payment instruments if the right may be exercised immediately after
the grant the fair value of the liability undertaken by the enterprise shall on the date of the grant be
included in the relevant costs or expenses and the liabilities shall be increased accordingly. As to a
cash-settled share-based payment if the right may not be exercised until the vesting period comes to
an end or until the specified performance conditions are met on each balance sheet date within the
vesting period the services obtained in the current period shall based on the best estimate of the
information about the exercisable right be included in the relevant costs or expenses and the
corresponding liabilities at the fair value of the liability undertaken by the group. The group shall on
each balance sheet date and on each account date prior to the settlement of the relevant liabilities re-
measure the fair values of the liabilities and include the changes in the current profits and losses.
(30) Revenue recognition
The group recognizes revenue when it has fulfilled its obligations under the contract i e. when the
customer acquires control relevant goods or services. Acquiring control over the goods or services
refers to the ability to dominate the use of the goods or the portion of services and to derive almost all
the economic benefits therefrom.
Contracts for sale of goods
The contracts for the sale of goods between the Group and its customer usually only contain the
performance obligations for the transfer of goods. The Group generally recognizes revenue at the point
of transferring the control of goods on the basis of a combination of the following factors: the current
right to collect the goods the transfer of major risks and benefits in the ownership of the goods and the
transfer of the legal ownership of the goods the transfer of physical assets of the goods and that the
customers have accepted the goods.Service Contracts
The service contracts between the Group and its customers usually consist of performance obligations
such as engineering construction management engineering design consulting and so on. As the
Group's performance of contracts is at the same time when the customer obtains and consumes the
economic benefits of the performance of the Group and the Group has the right to collect receivables
from the performance of contacts that has been completed to date the Group regards it as a contact
obligation over a period of time except that the progress of performance cannot be reasonably
determined. The Group determines the progress of the performance of contracts in accordance with the
input method. If the progress of performance of contracts cannot be reasonably determined and the
cost incurred by the Group are expected to be compensated the revenue is recognized on the basis of
the incurred costs until the progress of performance of contacts can be reasonably measured.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
46
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Revenue recognition (Continued)
Variable consideration
Certain contracts between the Group and its customers contain cash discounts and price guarantee
clauses which will give rise to variable consideration. Where a contract contains variable consideration
the Group determines the best estimates on the variable consideration based on expected values or the
most probable amount provided that transaction prices including variable consid eration shall not
exceed the cumulative amount of recognised revenue upon the removal of relevant uncertainties in
connection with which a significant reversal is highly unlikely.
Consideration payable to customers
Where consideration is payable by the Group to a customer such consideration payable shall be
deducted against the transaction price and against current revenue upon the recognition of revenue or
the payment of (or the commitment to pay) the consideration to the customer (whichever is later) save
for consideration payable to the customer for the purpose of acquiring from the customer other clearly
separable products.Return clauses
In connection with sales with a return clause revenue is recognised according to the amount of
consideration it expects to be entitled to for the transfer to a customer when the customer acquires
control of the relevant. Amounts expected to be refunded for the return of sales are recognised as
liabilities. At the same time the balance of the carrying value of th e product expected to be returned
upon transfer less expected costs for the recall of such product (including an impairment loss of the
recalled product) shall be recognised as an asset (i.e. cost of return receivables) and the net amount of
the carrying value of the transferred product upon the transfer less the aforesaid asset cost shall be
transferred to cost. At each balance sheet date the Group reassesses the future return of sales and
remeasures the above assets and liabilities.Significant financing component
Where a contract contains a significant financing component the Group determines transaction prices
based on amounts payable assumed to be settled in cash by customers immediately upon the
acquisition of control over the products. The difference between such transaction price and contract
consideration is amortised over the contract period using the effective interest rate method based on a
ratio that discounts the nominal contractual consideration to the current selling price of the products .The Group shall not give consideration to any significant financing component in a contract if the gap
between the customer’s acquisition of control over the products and payment of consideration is
expected to be less than 1 year.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
47
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Revenue recognition (Continued)
Warranty clauses
The Group provides quality assurance for products sold and assets built in accordance with
contract terms and laws and regulations. The accounting treatment of quality assurance in the
form of warranty assuring customers products sold are in compliance with required standards is
set out in Note III.28. Where the Group provides a service warranty for a standalone service in
addition to the assurance of compliance of products with required standards such warranty is
treated as a standalone contractual performance obligation and a portion of the transaction
price shall be allocated to the service warranty based on a percentage of the standalone price
for the provision of product and service warranty. When assessing whether a warranty is
rendering a standalone service in addition to providing guarantee to customers that all sold
goods are in compliance with required standards the Group will consider whether or not such
warranty is a statutory requirement the term of the warranty and the nature of the Group’s
undertaking to perform its obligations.Reward points program
The Group grants reward points to customers when selling goods. Customers can use reward
points to redeem free or discounted goods provided by the Group. This reward points program
provides significant rights to customers the Group consider it as an individual performance
obligation and an apportion part of the transaction price to reward points based on pricing of
goods or services with warranty clauses. Revenue is recognised when customers obtain goods
redeemed or when reward points expire.Principal responsible person/proxy
For goods or other assets obtained from a third party which were transferred later to customers
the Group has the right to decide independently pricing of goods. This means that the Group
has obtained control over related goods before transferring to customers. Therefore the Group
is the principal responsible person and revenue is recognised based on total amount of
consideration received or receivable. Otherwise the Group is proxy and revenue is recognised
based on expected commission. This amount should be the total amount of consideration
received or receivable net of the amount payable to other parties or based on the fixed amount
or percentage.
(31) Government grants
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 t ransfer 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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
48
III Summary of significant accounting policies and accounting estimates (Continued)
(31) Government grants (Continued)
Government grants related to assets refer to government assets which are granted to enterprises for
the long-term assets formed by acquisition construction or in other manners. Government grants
related to income refer to government grants other than those related to assets.Government grants related to income to be used as compensation for future expenses or losses shall
be recognized as deferred income and shall be charged to the current profit or loss or be used to write
down the relevant loss during the recognition of the relevant cost expenses or losses; or used as
compensation for relevant expenses or losses already incurred by enterprises shall be directly charged
to the profit or loss account in the current period or used to write down the relevant cost.The government grants related to assets shall be used to write down the book value of the relevant
assets or be recognized as deferred income. The government grants related to assets recognized as
deferred income shall be charged to the profit and loss reasonably and systematically in stages over
the useful lives of the relevant assets. The government grants measured at a nominal amount shall be
directly charged to the current profit or loss.If any related asset is sold transferred written off or destroyed before the end of its useful life the
balance of the undistributed deferred income shall be transferred to the current gain or loss on disposal
of the asset.
(32) 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 periods based on
the amount of income tax expected to be paid by the Group or returned by tax authorites 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). A 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 diffe rences 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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
49
III Summary of significant accounting policies and accounting estimates (Continued)
(32) Income tax (Continued)
Deferred tax assets are only recognized for deductible temporary differences deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences deductible losses and tax credits can be utilized.
Deferred tax assets and liabilities are offset when:
? the deferred taxes are related to the same tax payer within the Group and the same taxation
authority; and
? that tax payer has a legally enforceable right to offset current tax assets against current tax
liabilities.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries
and associates except where the Group is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the temporary differences can be utilized the corresponding deferred tax assets
are recognized.
(33) Changes in accounting policies and accounting estimates
Changes in accounting policies
Details and reasons for changes in
accounting estimates
Procedures for approval Notes
On 7 December 2018 the Ministry of
Finance revised “Accounting Standardfor Enterprises No. 21 - Lease” (the
“New Lease Standard”). It is also
required that enterprises listed both
domestically and abroad and
enterprises listed abroad and preparing
f inancial statements in accordance w ith
International Financial Reporting
Standards or the Accounting Standards
for Business Enterprises adopt the New
Lease Standard from 1 January 2019.
Approval by The eleventh meeting
of the eighth board of directors that
held on August 22 2019.The Group implement the New Lease
Standard from 1 January 2019. According to
the convergence rules of the New Lease
Standard it is optional to adjust the amount
of the retained earnings and other relevant
accounts at the beginning of the year when
the New Lease Standard is initially
implemented based on the cumulative
impact of the initial implement of the New
Lease Standard without adjusting the
information for the comparable period. This
change in accounting policy will increase the
company's total assets and total liabilities
but it is not expected to have a signif icant
impact on the ow ner's equity and net profit.The main impact of the retroactive adjustments resulting from the above changes in accounting policies on the
financial statements are as follows:
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
50
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
Consolidated balance sheet:
ASSETS 31 December 2018 1 January 2019 Adjustment
Current assets
Cash and bank balances 8089781304.56 8089781304.56
Notes receivable 1357311929.63 789536654.23 (567775275.40)
Accounts receivable 9336861647.92 9336861647.92
Receivable f inancing - 567775275.40 567775275.40
Advances to suppliers 583484515.95 419443944.83 (164040571.12)
Other receivables 643493359.32 643493359.32
Incl:Interest receivable 8223327.64 8223327.64
Inventories 4389335942.19 4389335942.19
Other current assets 95347629.18 95347629.18
Total current assets 24495616328.75 24331575757.63 (164040571.12)
Non-current assets
Long-term equity investments 1880393786.10 1880393786.10
Other equity instruments
investment
13685760.00 13685760.00
Other non-current f inancial assets 140000000.00 140000000.00
Investment properties 144894495.97 144894495.97
Fixed assets 607933827.67 594067973.91 (13865853.76)
Construction in progress 36412614.61 36412614.61
Right-of-use assets - 1782725159.78 1782725159.78
Intangible assets 319207126.15 318693082.72 (514043.43)
Goodw ill 833547800.60 833547800.60
Long-term prepaid expenses 311328706.46 311328706.46
Deferred tax assets 74914209.95 74914209.95
Other non-current assets 72365863.71 58168919.11 (14196944.60)
Total non-current assets 4434684191.22 6188832509.21 1754148317.99
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
51
Total assets 28930300519.97 30520408266.84 1590107746.87
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
LIABILITIES 31 December 2018 1 January 2019 Adjustment
Current liabilities
Short-term borrowings 2597652702.43 2597652702.43
Notes payable 3416755681.80 3416755681.80
Accounts payable 6468535961.17 6468535961.17
Advances from customers - -
Employee benefits payable 231866407.40 231866407.40
Tax payable 241980412.72 241980412.72
Other payables 1539436971.93 1539436971.93
Incl: Interest payable 21906660.63 21906660.63
Dividends payable 6389320.96 6389320.96
Contract liabilities 255590612.37 255590612.37
Non-current liabilities due w ithin one year 5861324.37 495132751.96 489271427.59
Other current liabilities 292465.75 292465.75
Total current liabilities 14757972539.94 15247243967.53 489271427.59
Non-current liabilities
Long-term borrow ings 31600000.00 31600000.00
Lease liabilities - 1104600297.80 1104600297.80
Long-term payables 4563978.52 800000.00 (3763978.52)
Long-term employee benefits payable 2050000.00 2050000.00
Deferred income 91491170.40 91491170.40
Deferred tax liabilities 67605161.88 67605161.88
Other non-current liabilities 69241176.18 69241176.18
Total non-current liabilities 266551486.98 1367387806.26 1100836319.28
Total liabilit ies 15024524026.92 16614631773.79 1590107746.87
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
52
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
SHAREHOLDERS’ EQUITY 31 December 2018 1 January 2019 Adjustment
Shareholders’ equity
Share capital 428126983.00 428126983.00
Capital surplus 4320984981.51 4320984981.51
Surplus reserve 214063491.50 214063491.50
Retained earnings
6655257147.27 6655257147.27
Shareholders’ equity attributable
to shareholders of the parent
11618432603.28 11618432603.28
Non-controlling interests
2287343889.77 2287343889.77
Total shareholders’ equity
13905776493.05 13905776493.05
Total liabilities and shareholders’
equity
28930300519.97 30520408266.84 1590107746.87
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
53
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
Company’s balance sheet：
ASSETS 31 December 2018 1 January 2019 Adjustment
Current assets
Cash and bank balances 1817654598.01 1817654598.01
Notes receivable 63870980.39 34154774.75 (29716205.64)
Accounts receivable 631236593.94 631236593.94
Receivable financing 29716205.64 29716205.64
Advances to suppliers 4760182.00 4757318.66 (2863.34)
Other receivables 1541980883.50 1541980883.50
Incl:Interest receivable 7550877.07 7550877.07
Dividends receivable - -
Inventories 158166185.65 158166185.65
Other current assets 39482.38 39482.38
Total current assets 4217708905.87 4217706042.53 (2863.34)
Non-current assets
Long-term equity investments 7432906692.24 7432906692.24
Other non-current financial
assets
140000000.00 140000000.00
Investment properties 1955854.46 1955854.46
Fixed assets 21362422.03 21362422.03
Right-of-use assets - 6827171.38 6827171.38
Intangible assets 2452222.51 2452222.51
Long-term deferred expenses 7481809.53 7481809.53
Other non-current assets 7000000.00 7000000.00
Total non-current assets 7613159000.77 7619986172.15 6827171.38
Total assets 11830867906.64 11837692214.68 6824308.04
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
54
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
LIABILITIES 31 December 2018 1 January 2019 Adjustment
Current liabilities
Short-term borrowings 539000000.00 539000000.00
Notes payable 252317800.78 252317800.78
Accounts payable 442049241.22 442049241.22
Contract liabilities 4182083.40 4182083.40
Employee benefits payable 36233563.12 36233563.12
Tax payables 13426601.90 13426601.90
Other payables 1481817856.56 1481817856.56
Incl:Interest payable 1354592.35 1354592.35
Non-current liabilities
due within one year
- 786068.44 786068.44
Other current liabilities 226427.99 226427.99
Total current liabilities 2769253574.97 2770039643.41 786068.44
Non-current liabilities
Long-term borrowings 31600000.00 31600000.00
Lease liabilities - 6038239.60 6038239.60
Long-term payables 800000.00 800000.00
Long-term employee
benefits payable
118000.00 118000.00
Deferred income 1687899.50 1687899.50
Deferred tax liabilities 2298426.39 2298426.39
Total non-current liabilities 36504325.89 42542565.49 6038239.60
Total liabilities 2805757900.86 2812582208.90 6824308.04
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
55
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
SHAREHOLDERS’ EQUITY 31 December 2018 1 January 2019 Adjustment
Shareholders’ equity
Share capital 428126983.00 428126983.00
Capital surplus 4426362777.26 4426362777.26
Surplus reserves 214063491.50 214063491.50
Retained earnings 3956556754.02 3956556754.02
Total shareholders’ equity 9025110005.78 9025110005.78
Total liabilities and shareholders’
equity
11830867906.64 11837692214.68 6824308.04
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
56
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 by using the
taxable sales amount multiplied
by the effective tax rate less
deductible VAT input of the
current period)
0%3%5%6%9%
10%13%16%
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 2011 the Urumqi Head Office Changji Branch and Karamay Branch of Sinopharm Holding
Xinjiang New & Special Medicines Chain Store Co. Ltd. (“Xinjiang New & Special Medicines”)
subsidiaries 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.
In 2014 the Group’s subsidiary Sinopharm Holding Guangxi Logistics Co. Ltd. (“SinopharmGuangxi Logistics”) was approved by the Guangxi Local Tax Burea u to enjoy a tax discount
applicable to corporations in the region of Western Development to pay income tax at a tax rate of
15%.
Eight subsidiaries in Guangxi Province of the Group including Sinopharm Guangxi Sinopharm
Holding Liuzhou Co. Ltd. (“Sinopharm Liuzhou”) Sinopharm Holding Beihai Co. Ltd (“Sinopharm
Beihai”) Sinopharm Holding Guilin Co. Ltd. (“Sinopharm Guilin”) Sinopharm Holding Guigang
Co. Ltd. (“Sinopharm Guigang”) Sinopharm Holding Yulin Co. Ltd. (“Sinopharm Yulin”)
Sinopharm Holding Baise Co. Ltd (“Sinopharm Baise”)and Sinopharm Holding Wuzhou Co. Ltd.(“Sinopharm Wuzhou”) were all approved by the Guangxi Local Tax Bureau to enjoy a tax
concession of Western Development at a preferential CIT rate of 15%. The applicable period for
Sinopharm Guangxi Sinopharm Liuzhou and Sinopharm Beihai is 1 January 2014 to 31 December
2020 and that for the other 5 subsidiaries is 1 January 2015 to 31 December 2020.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
57
IV Taxation (Continued)
2. Tax preferences (Continued)
The Group's subsidiary Sinopharm Holding National Pharmacy Inner Mongolia Co. Ltd.(hereinafter referred to as "National University of Inner Mongolia") Sinopharm Holding National
Pharmacy Hulunbeier Co. Ltd. Sinopharm Holding National Pharmacy Wulanchabu Co. Ltd.National University Pharmacy Manzhouli Co. Ltd. Sinopharm Holding National Pharmacy
Bayannaoer Co. Ltd. and Inner Mongolia NUS Pharmaceutical Co. Ltd. in accordance with the
provisions of Caishui [2011] No. 58 Document meet the conditions for the enjoyment of corporate
income tax benefits in the Western Development and obtain the Notice of Approval for Reduction
and Exemption of Taxes. In 2019 the enterprise income tax was paid at a preferential tax rate of
15%. According to Caishui [2011] No. 58 Document Sinopharm Holding National Pharmacy
Guangxi Chain Co. Ltd. and Ningxia Guoda Pharmacy Chain Co. Ltd. reduced the corporate
income tax of 2019 at a reduced rate of 15%.In the half year of 2019 according to the "Notice on Implementing the Inclusive Tax Deduction
Policy for Small and Micro Enterprises" (Cai Shui [2019] No. 13): the Group's subsidiary
Sinopharm Medical Supply Chain Service (Guangxi) Co. Ltd. Shanghai Guoda Dongsheng
Pharmacy Co. Ltd. Sinopharm Holding National Pharmacy Guangzhou Chain Co. Ltd. Taishan
City Guokong Guoda Group Kangda Pharmacy Chain Co. Ltd. Guangxi Guoda Pharmaceutical
Consulting Chain Co. Ltd. Changzhi City Guoda Wanmin Pharmacy Co. Ltd. Shanghai Fumei
Xuhui Pharmacy Co. Ltd. Sanhe Liyang Jinxiang Pharmacy Co. Ltd. Sinopharm Holding
National Pharmacy Hulunbeier Co. Ltd. The company NUS Pharmacy Manzhouli Co. Ltd. pays
taxable income less than RMB 3 million and meets the requirements of small and meager profit
enterprises so it pays corporate income tax at a rate of 20%.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
58
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2019 1 January 2019
Cash on hand 3415085.25 5587191.18
Cash at banks 7765559793.66 7626529829.59
Other cash balances 317353629.58 457664283.79
8086328508.49 8089781304.56
At 30 June 2019 other cash balances were consisted of letter credit deposits amounting to RMB
305806.00 (31 December 2018: RMB 4191246.00) bank acceptance notes deposits amounting to
RMB317047823.58 (31 December 2018: RMB453473037.79).
2. Notes receivable
30 June 2019 1 January 2019
Trade acceptance notes 790664828.26 789536654.23
Bank acceptance notes - -
790664828.26 789536654.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
59
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 2019 and 31 December 2018 are as follows:
30 June 2019
Derecognized Not derecognized
Trade acceptance notes 216316836.99
Bank acceptance notes -
216316836.99
As at 30 June 2019 and 31 December 2018 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 2019
Bank acceptance notes -
Trade acceptance notes 20010459.85
20010459.85
3. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2019
1 Januar y 2019
Gross carryi ng amount Provision for bad debt Gross carryi ng amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for
which
provision for
bad debt is
recognised
separatel y 613529239.36 5.17% 19044116.83 3.10% 595919487.29 6.36% 16766679.23 2.81%
Items for
which
provision for
bad debt is
recognized by
group (credit
risk
characteristics
) 11262211636.12 94.83% 30256027.06 0.27% 8780463595.37 93.64% 22754755.51 0.26%
11875740875.48 100.00%
49300143.89 0.42%
9376383082.66 100.00%
39521434.74 0.42%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
60
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
At 30 June 2019 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
352956757.11 588948.80 0.17%
Part of the medical insurance receivable
takes longer to collect and has risk of
default
Receivable of E-Business other
suppliers 110676893.44 6739296.66 6.09%
Receivable of E-Business w ith low risk
of recoverability
Receivable of card settlement e-
commerce and third-party
payment platform
55508719.88
-
-
0.00%
Receivable of Franchises w ith no risk of
recoverability
Receivable of related party
47567694.11
-
-
0.00%
Receivable due from a related party with
low risk of recoverability
Daton Xin Jian Kang Hospital
21439257.44
- 0.00%
Receivable due from a f ixed cooperative
hospital w ith no risk of recoverability
Liuzhou Railw ay Central Hospital
13820739.09 156693.08 1.13%
Both parties to the transaction have
differences in the amount of purchase
and sales and has risk of default
Hubei xianning Pharmaceutical
Co. Ltd.
11559178.29
11559178.29 100.00%
A lawsuit has been filed against the
customer and has high risk of default
Total 613529239.36 19044116.83 - -
Provision for bad debts of accounts receivable according to the general model of expected credit
loss:
30 June 2019
Estimated def ault amount
Expected credit loss in entire
lif etime Expected credit loss rate
Within 1 y ear
11186234127.33 25495025.53 0.23%
1 to 2 y ears
71069101.89 3646494.40 5.13%
2 to 3 y ears
1616063.02 194281.68 12.02%
Ov er 3 years
3292343.88 920225.45 27.95%
11262211636.12 30256027.06
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
61
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The aging analysis of accounts receivables was as follows:
30 June 2019
Within 1 year 11753416277.07
1 to 2 years 80575034.81
2 to 3 years 3374443.53
3 to 4 years 24801268.92
4 to 5 years 12775655.02
Over 5 years 798196.13
Total 11875740875.48
Bad debt provision for the current period as follows:
Opening
balance
Reversal of write-off
in previous years
Increases in
the year
Reversal in
the year
Written
off in
the year
Closing
balance
Bad debts 39521434.74 11040.00 16376925.13 (6609255.98) - 49300143.89
total 39521434.74 11040.00 16376925.13 (6609255.98) - 49300143.89
On 30 June 2019 the top five accounts receivable by customer are summarised
below:
Amount
Bad debt
provision
amount
% of the
total
accounts
receivabl
e
The top five accounts
receivable total 861862590.71 363240.29 7.25%
On 30 June 2019 the Group's accounts receivable that were terminated due to the cooperation on
accounts receivable factoring with financial institutions without recourse were RMB
2707165636.40.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
62
V Notes to the consolidated financial statements (Continued)
4. Accounts receivable financing
30 June 2019 1 January 2019
Bank acceptance notes 325439580.18 567775275.40
325439580.18 567775275.40
5. Advances to suppliers
(a) The aging of advances to suppliers is analyzed below:
30 June 2019 1 January 2019
Amount % of total balance Amount % of total balance
Within 1 year 355664414.27 99.60% 416103769.08 99.20%
1 to 2 years 1215326.29 0.34% 873351.85 0.21%
2 to 3 years 109088.48 0.03% 2466823.90 0.59%
Above 3 years 89990.60 0.03% - -
357078819.64 - 419443944.83 -
The prepayment aged for more than a year is mainly the advance equipment amounting to RMB1414405.37
(31 December 2018: RMB3340175.75) as the hospital equipment procurement is a large project which
takes a long time to complete.(b) On 30 June 2019 the top five advances to suppliers by custom er are summarized below:
Amount Proportion of total balance
Total amount of top five advances to suppliers 128740740.37 36.05%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
63
V Notes to the consolidated financial statements (Continued)
6. Other receivables
30 June 2019 1 January 2019
Interest receivable 14791483.10 8223327.64
Other receivables 639294904.75 635270031.68
654086387.85 643493359.32
（1）Interest receivable
30 June 2019 1 January 2019
Fixed deposits 13306641.88 6376708.68
Entrusted Loans 1484841.22 1846618.96
14791483.10 8223327.64
（2）Other receivables
Category of other receivables by nature is as follows:
Nature 30 June 2019 1 January 2019
Deposits 257903552.46 278455623.30
Receivable due from related parties 10414842.49 8119399.79
Entrusted borrowings 44000000.00 44000000.00
Petty cash advance to employees 17538148.13 12439613.27
Receivable of equity transactions 8980000.00 8980000.00
Others 321989366.05 303197349.04
Total 660825909.13 655191985.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
64
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
The changes in bad debt provision for other receivables based on the entire li fetime expected
credit losses are as follows:
Stage 1 Stage 2 Stage 3
Bad debt
Expected
credit
losses
over the
next 12
months
Entire lifetime
expected credit
losses(No credit
impairment
occurred)
Entire lifetime
expected credit
losses(Credit
impairment occurred)
Total
Balance at 1 January 2019 - 19921953.72 - 19921953.72
Balance at 1 January 2019 during the period
Provisions during the period - 3108281.87 - 3108281.87
Reversal during the period - (1441849.89) - (1441849.89)
Write-back during the period - - - -
Write-off during the period - (57381.32) - (57381.32)
Other Changes - - - -
Balance at 30 June 2019 - 21531004.38 - 21531004.38
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
65
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
The aging analysis of other receivables was as follows:
30 June 2019
Within 1 year 526279992.21
1 to 2 years 98441809.40
2 to 3 years 15955086.40
Over 3 years 20149021.12
Total 660825909.13
Bad debt provision of other receivables in 2019 was RMB3108281.87 with the recovered or
reversed amount of RMB1441849.89 and the written off amount of RMB 57381.32.
As at 30 June 2019， the top 5 parties that owed the largest amounts of other receivable
balances are analyzed below:
Nature Amount Age % of total amount Provision of bad debt
Guangdong Phar maceutical electronic
trading platfor m
Phar maceutical tradi ng platform
repayment not yet cl eared 111024446.08
Within 1
year 16.80%
Sinophar m Group Zhijun (Suzhou)
Phar maceutical C o. Ltd. Entrusted borrowings 44000000.00
Within 2
year 6.66%
TCM-Integrated C ancer C enter of
Southern Medical Uni versity
Deposit of logistics extension
services projec t 30082900.00
Within 2
year 4.55%
Shenyang Medical Insurance
Management Service Center Amount due from government 27635423.96
Within 1
year 4.18%
Shenzhen Social Insur ance Fund
Admi nistration Amount due from government 18714610.23
Within 1
year 2.83%
231457380.27
35.03%
-
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
66
V Notes to the consolidated financial statements (Continued)
7. Inventories
(a) Inventories by category are analyzed below:
30 June 2019 1 January 2019
Book v alue Prov ision Net book v alue Book v alue Prov ision Net book v alue
Raw materials 362562.93 - 362562.93 1410012.28 - 1410012.28
Work in progress 5344.32 - 5344.32 1011007.23 - 1011007.23
Finished goods 4883623033.69 7772292.62 4875850741.07 4392144746.88 8313195.29 4383831551.59
Low cost consumables 6454967.95 - 6454967.95 3083371.09 - 3083371.09
4890445908.89 7772292.62 4882673616.27 4397649137.48 8313195.29 4389335942.19
(b) Provision for declines in value of inventories is analysed below:
1 January 2019
Increases Decreases
30 June 2019
charge Other
Reversal or
Written off
Other
Finished goods 8313195.29 1567262.18 - 2108164.85 - 7772292.62
8313195.29 1567262.18 - 2108164.85 - 7772292.62
8. Other current assets
30 June 2019 1 January 2019
Input VAT to be credited 95048826.51 94312573.34
Corporate income tax to be deducted 2041094.25 723000.46
Others 227366.84 312055.38
97317287.60 95347629.18
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
67
V Notes to the consolidated financial statements (Continued)
9. Long-term equity investments
Associates in 2019
Inve stee 1 Ja nu a ry 2 01 9
C ha n ge s in t he yea r
30 Jun e 2 01 9
Pro vi si o n f o r
im pai rm en t
Ad diti on al
In ve st m e nt
Profi t of l o ss u n de r
eq uit y me th o d
Ot he r ch a ng e s i n
eq uit y
C a sh di vid e nd
de cl a red b y
in ve st ee
Im p airm e nt
pro vi si o n
Associate s
Sh e n zh e n M ain L u ck P h arm a ce uti cal I n c.( “Mai n Lu ck Ph a rm a ce uti cal ” ). 26 5 3 16 6 5 3. 68 - 33 5 9 2 99 5. 7 0 - - - 29 8 9 09 6 4 9. 38 -
Zhiju n M e di cin e 35 5 3 53 1 9 6. 15 - 58 5 3 6 10 1. 7 4 - - - 41 3 8 89 2 9 7. 89 -
Zhiju n T rad e
8 73 0 9 94 .8 7 - 1 46 7 0 31 .7 7 - - - 10 1 9 8 02 6. 6 4 -
Zhiju n Su zh o u 23 3 7 9 01 8. 9 2 - (1 1 3 90 5 3 8. 03 ) - - - 11 9 8 8 48 0. 8 9 -
Pin g sha n M e di cin e 86 2 9 2 92 7. 3 3 - 22 4 2 5 90 0. 4 5 - - - 10 8 7 18 8 2 7. 78 -
Sh yn de c Ph a rma ce uti cal 1 09 8 5 66 8 5 2. 51 - 65 2 5 8 50 3. 4 5 42 4 2 4 74 7. 0 0 (1 6 8 96 4 2 7. 80 ) - 1 18 9 3 53 6 7 5. 16 -
Sh a ng h ai B ei yi Gu o d a P h a rma ce uti cal C o. Lt d. 11 0 2 9 91 8. 1 0 - 24 7 5 88 .4 9 - (1 0 5 2 99 9. 9 9 ) - 10 2 2 4 50 6. 6 0 -
Sh a ng h ai Li yi P h arm a cy C o. L td . 95 5 4 28 .2 3 - - - - - 95 5 4 28 .2 3 -
Sh a ng h ai R en b ei P h arm a cy C o. L td - 1 80 0 0 00 .0 0 - 1 80 0 0 00 .0 0
Gu a ng d on g Ji a nh ui C o n st ru cti on I n ve st m en t
M an a ge m e nt C o. Lt d. - 2 00 0 0 00 .0 0 - 2 00 0 0 00 .0 0
Sin op h a rm Ji en u o M edi cal T re at m en t S e rvi ce
Gu a ng d on g C o. Lt d. ( “Gu an g do n g Ji e n uo ”) 6 80 2 1 56 .1 9 - (9 9 5 29 3. 5 8 ) - - - 5 80 6 8 62 .6 1 -
Sh a ng h ai Din g qu n M a na g e me nt & Co n sulti ng
C o. Lt d 23 9 6 6 64 0. 1 2 - - - - - 23 9 6 6 64 0. 1 2 -
D on g yu an A cco rd Ph a rma ce uti cal C h ain Co .
Lt d. 39 6 6 38 .3 2 - - - - - 39 6 6 38 .3 2 39 6 6 38 .3 2
1 88 0 7 90 4 2 4. 42 3 80 0 0 00 .0 0 16 9 1 42 2 8 9. 99 42 4 2 4 74 7. 0 0 (1 7 9 49 4 2 7. 79 ) - 2 07 8 2 08 0 3 3. 62 39 6 6 38 .3 2
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
68
V Notes to the consolidated financial statements (Continued)
10. Other equity instrument investment
30 June 2019 1 January 2019
Sinopharm Health Online Co. Ltd. 12 0 0 0 00 0. 0 0 12 0 0 0 00 0. 0 0
Sinopharm Guoda Hubei Co. Ltd. 1 00 0 0 00 .0 0 1 00 0 0 00 .0 0
Hunan Zhongbai Pharmaceutical
Investment Co. Ltd. 31 5 0 00 .0 0 31 5 0 00 .0 0
Shanghai Guoda Shuguang Pharmacy
Co. Ltd 27 0 7 60 .0 0 27 0 7 60 .0 0
Shanghai Guoren Pharmacy Co. Ltd. 10 0 0 00 .0 0 10 0 0 00 .0 0
13 6 8 5 76 0. 0 0 13 6 8 5 76 0. 0 0
11. Other non-current financial assets
30 June 2019 1 January 2019
Financial asset measured at fair value
through current profit or loss 140000000.00 140000000.00
140000000.00 140000000.00
On June 30 2019 the balance of other non-current financial assets was the fair value of the share of the
Sinopharm CICC Medical Industry Fund (referred to as “the Industrial Fund”) subscribed by the Company. The
Group's 21st meeting of the 7th Board of Directors held on January 6 2017 reviewed and approved the proposal
of the Company to subscribe for the industry fund and related party transactions. As a limited partner of the
industry fund the company plans to invest RMB 200 million to subscribe for the share of the industrial fund which
will be paid in three phases. The company paid the initial investment of RMB 60 million in 2017. As of December
31 2017 the fund did not complete the relevant licenses and approvals and did not start operations. Therefore
the company's initial investment amounted to RMB 60 million. Included in other non-current assets. In 2018 the
company paid the second phase of the capital contribution of RMB 80 million. As of June 30 2019 the company
had paid a total of RMB 140 million. The industry fund has obtained relevant approvals in 2018 and has started
operations. Since the cash flow obtained by the Company from the investment of the fund includes both the
contractual cash flow generated by the underlying assets during the investment period and the cash flow of the
disposal of the underlying assets the contractual cash flow that does not satisfy the financial assets generated on
a specific date is only The payment of interest on the basis of the outstanding principal amount therefore the
Company classifies the investment of the industrial fund into financial assets measured at fair value through profit
or loss and presented as other non-current financial assets. .
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
69
V Notes to the consolidated financial statements (Continued)
12. Investment properties
Subsequent measurement under the cost model:
2019 Buildings and
constructions Land use right
Construction in
progress
Total
Original cost
Opening balance 242555189.91 22719102.03 265274291.94
Purchase - - -
Transfer to f ixed assets
assets
1634951.97 - 1634951.97
Closing balance 240920237.94 22719102.03 263639339.97
Accumulated
depreciation and
amortization
Opening balance 111131166.21 7948629.76 119079795.97
Provision 3376058.13 51879.46 3427937.59
Transfer to f ixed assets 487533.59 - 487533.59
Closing balance 114019690.75 8000509.22 122020199.97
Provision for
impairment
Opening balance 1300000.00 - 1300000.00
Closing balance 1300000.00 - 1300000.00
Carrying
amount
At end of the period 125600547.19 14718592.81 140319140.00
At beginning of the period 130124023.70 14770472.27 144894495.97
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
70
V Notes to the consolidated financial statements (Continued)
13. Fixed assets
2019
Buildings Machinery Vehicles Other equipment
Fixed asset
improvements
Total
Original cost
Opening balance 489661268.82 185444104.09 89613300.13 294575902.89 54661564.43 1113956140.36
Purchase 714456.83 16956031.53 5069073.21 15843713.46 17383853.37 55967128.40
Transfer from construction in progress - 2113175.66 - 816880.96 - 2930056.62
Business combination not involving enterprises under
common control
- - - - - -
Transfer from Investment properties 1634951.97 - - - - 1634951.97
Disposal or retirement - 1487621.64 5499822.63 7281743.77 10306628.70 24575816.74
Closing balance 492010677.62 203025689.64 89182550.71 303954753.54 61738789.10 1149912460.61
Accumulated depreciation
Opening balance 164477441.12 85085741.31 59523264.14 172436749.05 38364970.83 519888166.45
Provision 7866027.60 14213255.59 3843870.06 12354113.52 10639915.07 48917181.84
Transfer from Investment properties 487533.59 - - - - 487533.59
Disposal or retirement - 1107179.83 3813515.96 4549800.50 3462405.97 12932902.26
Closing balance 172831002.31 98191817.07 59553618.24 180241062.07 45542479.93 556359979.62
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
71
V Notes to the consolidated financial statements (Continued)
13. Fixed assets (Continued)
2019(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 period 319179675.31 104833872.57 29628932.47 123713691.47 16196309.17 593552480.99
At beginning of the period 325183827.70 100358362.78 30090035.99 122139153.84 16296593.60 594067973.91
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
72
V Notes to the consolidated financial statements (Continued)
13. Fixed assets (Continued)
Fixed assets without official property right certificates
Items Carrying amount Reason for outstanding property right certificates
Buildings 27259503.70 In the process
14. Construction in progress
30 June 2019 1 January 2019
Construction in progress 31980582.21 36412614.61
30 June 2019 1 January 2019
Carrying balance Impairment Carrying amount Carrying balance Impairment Carrying amount
Warehouse improvement project 862479.40 - 862479.40 806272.40 - 806272.40
New office building project 627903.09 - 627903.09 188251.26 - 188251.26
Supply chain extension project 15025013.15 - 15025013.15 12617953.89 - 12617953.89
Software project 5544210.47 - 5544210.47 12930498.53 - 12930498.53
Other projects 9920976.10 - 9920976.10 9869638.53 - 9869638.53
31980582.21 - 31980582.21 36412614.61 - 36412614.61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
183
V Notes to the consolidated financial statements (Continued)
14. Construction in progress (Continued)
(a) Changes of significant construction in progress
Changes of significant construction in progress in 2019 are presented as follows:
Project name Budget
At beginning of
the year
Increase
Decrease At end of year
Proportion of
investment to
budget (%)
project
progres
s
Source of
funds
Transferred to
fixed assets
Transferred
to intangible
assets
Others
Warehouse
improvement
project 2981387.76 806272.40 1309197.95 278461.63 - 974529.32 862479.40 60.65% 60.65% Own funds
New office building
Project 627903.08 188251.26 439651.83 - - - 627903.09 100.00% 100.00% Own funds
Supply chain
extension project 33412417.24 12617953.89 5137275.29 2606162.49 - 124053.54 15025013.15 53.80% 53.80% Own funds
Software project 12949580.19 12930498.53 5563292.13 45432.50 - 12904147.69 5544210.47 43.20% 43.20% Own funds
Other construction
projects 206249966.06 9869638.53 83546.40 - 32208.83 9920976.10 4.84% 4.84% Own funds
256221254.33 36412614.61 12532963.60 2930056.62 14034939.38 31980582.21 - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
74
V Notes to the consolidated financial statements (Continued)
15、 Right-of-use assets
Items Stores Office building Warehouse Others Total
Original cost
Opening balance 1471295979.51 48588435.58 239171388.66 23669356.03 1782725159.78
Increase 364813035.13 25970953.21 33172962.78 423956951.12
Closing balance 1836109014.64 74559388.79 272344351.44 23669356.03 2206682110.90
Accumulated depreciation
Opening balance - - - - -
Depreciation 261325528.91 8926444.74 22855535.44 2593404.18 295700913.27
Closing balance 261325528.91 8926444.74 22855535.44 2593404.18 295700913.27
Carrying amount
At end of the period 1574783485.73 65632944.05 249488816.00 21075951.85 1910981197.63
At beginning of the period 1471295979.51 48588435.58 239171388.66 23669356.03 1782725159.78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
75
V Notes to the consolidated financial statements (Continued)
16. Intangible assets
2019 Land use right Software Trademarks Favorable lease Sales network Franchise Total
Original cost
Opening balance 62083143.97 142108155.42 65977850.00 93242000.00 112117142.86 710000.00 476238292.25
Purchase - 3733823.60 - - - - 3733823.60
Transfer from construction in
progress - 12904147.69 - - - - 12904147.69
Disposal or retirement - - - - - - -
Closing balance 62083143.97 158746126.71 65977850.00 93242000.00 112117142.86 710000.00 492876263.54
Accumulated amortization
Opening balance 27889638.96 68273563.72 196850.16 19782823.36 40692333.33 710000.00 157545209.53
Provision 474270.36 9058311.54 - 2472852.94 2802928.58 - 14808363.42
Closing balance 28363909.32 77331875.26 196850.16 22255676.30 43495261.91 710000.00 172353572.95
Provision for impairment - - - - - - -
Opening balance - - - - - - -
Provision - - - - - - -
Closing balance
- - - - - - -
Carrying amount
At end of the period
33719234.65 81414251.45 65780999.84 70986323.70 68621880.95 - 320522690.59
At beginning of the period 34193505.01 73834591.70 65780999.84 73459176.64 71424809.53 - 318693082.72
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
76
V Notes to the consolidated financial statements (Continued)
17. Goodwill
(1) Goodwill cost
30 June 2019 Opening balance Increase Decrease Closing balance
Sinopharm Holding(Jiangmen)Medical Co. Ltd. (“SinopharmJiangmen”) 27392317.73 - - 27392317.73
Sinopharm Holding ShenzhenYanf eng Co. Ltd. (“SinopharmYanf eng”) 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 Henan
Pharmacy Chain Store Co. Ltd 22666179.77 - - 22666179.77
Sinopharm Holding Guoda Inner
Mongolia Co. Ltd. 70485777.00 - - 70485777.00
Sinopharm Hebei Lerentang
Pharmaceutical Chain Co. Ltd. 29482149.57 - - 29482149.57
Sinopharm Guoda Pharmacy
Jiangmen Chain Co. Ltd.. 77350000.00 - - 77350000.00
Sinopharm Holding Guoda Shanxi
Y iyuan Chain Co. Ltd. 9080100.00 - - 9080100.00
Taiy uan Tongxinli Guoda Pharmacy
Co. Ltd. 2818647.85 - - 2818647.85
Sinopharm Holding Guoda Shanghai
Pharmacy Chain Store Co. Ltd. 5028638.00 - - 5028638.00
Sinopharm Holding Guoda Yangzhou
Dadesheng Pharmacy Chain Store
Co. Ltd.. 7979000.00 - - 7979000.00
Zhejiang Guoda Pharmacy Co. Ltd. 3045183.85 - - 3045183.85
Shenzhen Guanganli Pharmacy Chain
Store Co. Ltd. store acquisition. 13420000.00 - - 13420000.00
Taishan Sinopharm Holding Guoda
Qunkang Pharmacy Chain Co. Ltd. 26826120.55 - - 26826120.55
Fujian Guoda Pharmacy Chain Store
Co. Ltd. 1567250.76 - - 1567250.76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
77
V Notes to the consolidated financial statements (Continued)
17. Goodwill (Continued)
(1)Goodwill cost (Continued)
30 June 2019 (Continued) Opening balance Increasel Decrease Closing balance
Sinopharm Holding Guoda Shenyang
Pharmacy Chain Store Co. Ltd. 41047958.08 - - 41047958.08
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
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy Chain
Co. Ltd. 41165574.64 - - 41165574.64
Shanxi Guoda Wanmin Pharmacy
Chain Store Co. Ltd. 65025000.00 - - 65025000.00
Xiaoy i Guoda Wanmin Baicaotang
Pharmacy Chain Store Co. Ltd. 15866680.00 - - 15866680.00
Liy ang Guoda People Pharmacy
Chain Store Co. Ltd. 107275095.74 - - 107275095.74
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co. Ltd. 19405450.23 - - 19405450.23
Beijing Golden Elephant Pharmacy
Medicine Chain Company Limited 64140124.36 - - 64140124.36
Sinopharm Holding Guoda
Bay annaoer Co. Ltd. - 13494000.00 - 13494000.00
858547800.60 13494000.00 - 872041800.60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
78
V Notes to the consolidated financial statements (Continued)
17. Goodwill (Continued)
(2)Provision of impairment loss
Changes in provision for impairment of goodwill are presented as follows:
2019 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 an asset group or a group of asset groups is determined on a financial
budget approved by management covering a five-year period. The cash flows beyond the five-year
period are extrapolated using the inflation rate.The recoverable amount of the asset group and asset group combination is calculated using the cash
flow forecasting method based on the five-year budget approved by the management. Management
determines the budgetary gross margin based on historical experience and forecasts of market
development and uses a pre-tax rate that reflects the specific risk of the relevant asset group and asset
group combination as the discount rate. The above assumptions are used to analyze the recoverable
amount of each asset group and asset group combination within the business segment.
18. Long-term prepaid expenses
2019 Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 249458261.87 47060353.55 42594066.57 1166437.43 252758111.42
Acquisition expenditure to
obtain the right to operate 57617166.63 3971737.95 7010668.66 - 54578235.92
Others 4253277.96 760218.61 1002537.39 35524.55 3975434.63
311328706.46 51792310.11 50607272.62 1201961.98 311311781.97
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
79
V Notes to the consolidated financial statements (Continued)
19. Deferred tax assets/liabilities
(a) Deferred tax assets before offseting
30 June 2019 1 January 2019
Deductible temporary
differences
Deferred tax
assets
Deductible temporary
differences
Deferred tax
assets
Provision for
impairment of assets 79547128.04 18378950.01 68153222.07 15676020.10
Deductible tax loss 34968710.28 8677091.14 77791621.20 19311837.06
Deferred Income 25565030.92 6387445.17 30188142.13 7547758.26
Accrued payroll 13435720.26 2963493.05 64598625.74 15656015.32
Accrued expenses 132416395.94 32742594.34 94108769.33 22301617.95
Others 30339847.94 7164541.66 6238492.18 1467765.00
316272833.38 76314115.37 341078872.65 81961013.69
(b) Deferred tax liabilities before offseting
30 June 2019 1 January 2019
Taxable temporary
differences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilities
Fair value adjustment
for business
combination not
involving enterprises
under common
control 221963869.66 55490967.41 227900345.39 56975086.34
Changes in fair value 87167599.53 21791899.72 75366942.99 17676879.28
309131469.19 77282867.13 303267288.38 74651965.62
(c) Deferred tax assets and liabilities are presented after being offset against each other:
30 June 2019 1 January 2019
Deferred tax
assets/liabilities -
Net
Temporary
differences
after set-off
Deferred tax
assets/liabilities -
Net
Temporary
differences
after set-off
Deferred tax assets 10896608.36 65417507.01 7046803.74 74914209.95
Deferred tax
liabilities 10896608.36 66386258.77 7046803.74 67605161.88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
80
V Notes to the consolidated financial statements (Continued)
19. Deferred tax assets/liabilities (Continued)
(d) The deductible temporary differences and deductible losses that were not recognized as
deferred tax assets are presented as follows:
30 June 2019 1 January 2019
Deductible temporary differences 932951.17 1480000.00
Deductible loss (Note) 30894876.42 29391422.33
31827827.59 30871422.33
The aforesaid unrecognized deductible losses will due:
30 June 2019 1 January 2019
2019 6106580.00 2864062.85
2020 1636825.76 4725707.87
2021 8256680.69 2563056.08
2022 8358197.50 7261117.97
2023 6536592.47 11977477.56
30894876.42 29391422.33
(Note) As some subsidiaries are still at a loss and it’s uncertain that those subsidiaries can obtain
enough taxable income to offset against the loss in the future. So the Group do not recognise
deferred tax assets which came from the deductible loss of RMB 30894876.42 .
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
81
V Notes to the consolidated financial statements (Continued)
20. Other non-current assets
30 June 2019
1 January 2019
Carrying
balance Impairment
Carrying
amount
Carrying
balance Impairment
Carrying
amount
Physical assets
reserve specif ically
authorized 44621093.48 - 44621093.48 47576273.75 - 47576273.75
Prepayment for
project and
equipment 22323493.28 - 22323493.28 10592645.36 - 10592645.36
66944586.76 - 66944586.76 58168919.11 - 58168919.11
21. Short-term borrowings
30 June 2019 1 January 2019
Credit borrowings 3079560758.24 2427639275.32
Discounted notes 211316836.99 170013427.11
3290877595.23 2597652702.43
As at 30 June 2019 the annual interest rate for the above borrowings was 4.55% (31
December 2018: 4.65%).
On June 30 2019 and December 31 2018 the Group had no short -term loan that were due but
not yet repaid.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
82
V Notes to the consolidated financial statements (Continued)
22. Notes payable
30 June 2019 1 January 2019
Commercial acceptance notes 23896465.30 13843479.73
Bank acceptance notes 3515198797.04 3402912202.07
3539095262.34 3416755681.80
At 30 June 2019，balance of notes payable at maturity was RMB0.00. (31 December 2018：RMB
0.00).
23. Accounts payable
30 June 2019 1 January 2019
Trade payables 8088697602.94 6468535961.17
At 30 June 2019 the total amount of accounts payable aged over one year was
RMB496134298.59(31 December 2018: RMB467525486.03 ).
24. Contract liabilities
30 June 2019 1 January 2019
Advances from customers - -
Contract liabilities 239739020.90 255590612.37
239739020.90 255590612.37
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
83
V Notes to the consolidated financial statements (Continued)
25. Employee benefits payable
2019 At beginning of the year Increase Decrease At end of the year
Short-term employee benefits (a) 226152409.27 927118638.71 1001730616.89 151540431.09
Post-employment benefits
(defined contribution plan)(b) 5248146.99 93025372.36 88529751.61 9743767.74
Termination benefits (c) 465851.14 841185.81 872153.00 434883.95
231866407.40 1020985196.88 1091132521.50 161719082.78
(a) Short-term employee benefits
2019
At beginning of
year Increase Decrease At end of year
Salaries bonuses allowances
and grants 210723820.21 810503119.74 884415868.48 136811071.47
Staff welfare 1750750.89 23556598.47 24295552.24 1011797.12
Social security contribution 1622271.12 47247265.73 46045452.79 2824084.06
Incl: Medical insurance 1362150.59 42318821.55 41333544.10 2347428.04
Work injury insurance 30755.69 1427211.06 1394836.56 63130.19
Maternity insurance 229364.84 3501233.12 3317072.13 413525.83
Housing funds 1063993.02 30889248.28 30946436.95 1006804.35
Labor union funds and
employee education funds 9956772.12 13593217.16 15024466.50 8525522.78
Other short-term benefits 1034801.91 1329189.33 1002839.93 1361151.31
Total 226152409.27 927118638.71 1001730616.89 151540431.09
(b) Defined contribution plan
2019 At beginning of year Increase Decrease At end of year
Basic pension
insurance 1755160.16 88463119.33 86167938.13 4050341.36
Unemployment
insurance 122350.65 2587235.09 2359308.38 350277.36
Contribution to
pension fund 3370636.18 1975017.94 2505.10 5343149.02
5248146.99 93025372.36 88529751.61 9743767.74
Note：For the half year of 2019 the Group provided other termination benefits for severing labor
relations of RMB153286.50. For the half year of 2018 the Group provided other termination benefits
for severing labor relations of RMB69075.00.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
84
V Notes to the consolidated financial statements (Continued)
26. Tax payable
30 June 2019 1 January 2019
Value-added tax 61484212.40 90356534.09
Corporate Income taxes 121174058.74 115226820.39
Individual income tax payable 4518825.00 3954139.24
City maintenance and construction surtax 4994194.58 6854426.95
Educational surcharge payable 3593664.02 4937147.17
Water conservancy fund payable 5523161.32 5421280.43
Stamp duty 4098721.21 5854355.91
Property tax 1407180.81 1123276.37
Land use tax payable 241952.24 209179.29
Others 8543031.51 8043252.88
215579001.83 241980412.72
27. Other payables
30 June 2019 1 January 2019
Interest payable 29012444.93 21906660.63
Dividend payable 6389320.96 6389320.96
Other payables 1439124932.54 1511140990.34
1474526698.43 1539436971.93
（1） Interest payable
30 June 2019 1 January 2019
Long-term loans’ (With periodic payments of
principal and interest charges) interest 35440.21 38984.25
Interest on short-term borrowings 10692042.51 10973397.39
Trade receivables’ factoring interest 18284962.21 10894278.99
29012444.93 21906660.63
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
85
V Notes to the consolidated financial statements (Continued)
27. Other payables (Continued)
（2）Dividend payable
30 June 2019 1 January 2019
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. 4835511.58 4835511.58
Zhenfang Zhang 1389639.31 1389639.31
Meiluo Pharmaceutical Co. Ltd. 164170.07 164170.07
6389320.96 6389320.96
As at 30 June 2019 the Group had no significant dividend aged more than one year and not yet paid
(31 December 2018: nil).
（3）Other payables
30 June 2019 1 January 2019
Payables for factoring programs 550002940.12 724272060.30
Deposit 389299163.12 334821325.72
Accrued selling and distribution expenses 174163680.40 131493977.43
Payables arising from acquisition of subsidiaries 77082980.00 78702980.00
Payables for construction in progress and
equipment 58230154.88 79380923.99
Payables for rentals 40290060.94 29298835.46
Payables to individuals 28207673.38 22730210.22
Temparary loan 15800000.00 15800000.00
Payables to related parties 15581702.81 5436532.76
Payables for land transfer payments 12597500.00 18071000.00
Equity subscription 10000000.00 10000000.00
Collection of others 9067830.66 7525379.59
Others 58801246.23 53607764.87
1439124932.54 1511140990.34
At 30 June 2019 significant other payables over 1 year are:
Amount payable Reason for outstanding
Non-controlling interests in South
Pharmaceutial Foreign Trade Fu Yuequn
and other 11 natural persons 54722980.00 Payment conditions not met
Shenzhen No.1 Construction Engineering
Co. Ltd. 8605625.20
Payment conditions not met
Liuzhou Shengli Pharmacy 5986288.12 Payment conditions not met
69314893.32
V Notes to the consolidated financial statements (Continued)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
86
27. Other payables (Continued)
The amount arising from the acquisition of subsidiaries is mainly for the shares acquisition of minorities
of South Pharmaceutial Foreign Trade .
At 30 June 2019 other payables due within 1 year amounting to RMB 137518449.47(31 December
2018: RMB 136286760.04 ) are mainly consisted of construction cost payable company borrowings
payable deposits and etc.
28. Non-current liabilities due within 1 year
30 June 2019 1 January 2019
Long-term borrowings due within 1 year 31600000.00 -
Lease liabilities due within 1 year 526696784.75 495132751.96
558296784.75 495132751.96
29. Other current liabilities
30 June 2019 1 January 2019
Output VAT to be recognized 445493.48 292465.75
30. Long-term borrowings
30 June 2019 1 January 2019
Credit borrowings(a) - 31600000.00
- 31600000.00
(a) At 30 June 2019 the Group has no entrusted borrowings(31 December 2018:
RMB31600000.00). The Group's long-term borrowings are loans lent by the China National
Pharmaceutical Group Corporation. The borrowings due within one year have been reclassified to
non-current liabilities due within one year.
At 30 June 2019 the annual interest rate of above-mentioned borrowings was 4.04% (31
December 2018: 4.04%).
31．Lease liabilities
30 June 2019 1 January 2019
lease payables 1713157908.71 1599733049.76
Less:： lease payables due within 1
year
(526696784.75)
(495132751.96)
1186461123.96 1104600297.80
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
87
V Notes to the consolidated financial statements (Continued)
32. Long-term payables
30 June 2019 1 January 2019
Payable for specif ic projects 800000.00 800000.00
Payable for specific projects
At beginning of
year Increase Decrease At end of year
Reasons of
derred income
Special funds granted by
government
800000.00
-
-
800000.00
Granted by the
government
33. Long-term employee benefits payable
30 June 2019 1 January 2019
Early retirement benefits payable 1915000.00 2050000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
88
V Notes to the consolidated financial statements (Continued)
34. Deferred income
2019 Opening balance Increase Decrease Closing balance
Reasons of derred
income
Government
grants 91491170.40 79184.44 2847536.66 88722818.18 Government grants
91491170.40 79184.44 2847536.66 88722818.18
As at 30 June 2019 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) 75555441.17 - 1349204.28 - 74206236.89 Asset related
Guangxi Logistics Project 6453426.58 - - 230346.06 6223080.52 Asset related
Guangzhou Logistics
standardization project 2815012.55 - - 273123.42 2541889.13 Asset related
A comprehensive
experimental modern
service industry
subsidies 1500000.00 - - 150000.00 1350000.00 Asset related
Shared Logistics Center 252058.35 - - 9400.20 242658.15 Asset related
Other projects 4915231.75 79184.44 835462.70 4158953.49
Asset/Income
related
91491170.40 79184.44 1349204.28 1498332.38 88722818.18
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 (12)).
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 revenueand would be
amortized and recognized in the income statement within the expected useful lives using the straight
line method (Note V(50)) and the other cash compensation.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
89
V Notes to the consolidated financial statements (Continued)
35. Other non-current liabilities
30 June 2019 1 January 2019
Contract liabilities 53375.33 -
Governmental medical reserve funds 45427343.31 45427343.31
Product promotion accumulative points
programme
22359977.45 23813832.87
67840696.09 69241176.18
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
Movement during the current year
2019 At beginning of year Issue of new share Others Total At end of year
Shares 428126983.00 428126983.00
37. Capital surplus
2019 At beginning of year Increase Decrease At end of year
Share premium 2118174787.27 - - 2118174787.27
Significant reorganization 1173907763.19 - - 1173907763.19
Other changes in equity of invested
units under equity method
(94032514.34) 42424747.00 - (51607767.34)
Transfer of capital surplus
recognized under the previous
accounting system 2650322.00 - - 2650322.00
Business combination involving
enterprises under common control - - - -
Others 1120284623.39 - - 1120284623.39
4320984981.51 42424747.00 - 4363409728.51
Capital surplus-others increased by RMB 42424747.00 when other changes in equity of Modern
Pharmaceutical resulted in adjustment of long-term equity investment and an increase of capital
surplus by RMB 42424747.00 .
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
90
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 2019 1 January 2019
Retained earnings at the end of the prior year 6655257147.27 5572952806.39
Retained earnings at beginning of year after
retrospective adjustment and restatement 6655257147.27 5572952806.39
Add: Net profit attributable to the parent 650833360.40 1210742435.78
Cash dividends payable for ordinary shares 171250793.20 128438094.90
Others -Business combination involving enterprises under
common control - -
Retained earnings at end of year 7134839714.47 6655257147.27
40. Operating revenue and cost
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Revenue Cost Revenue Cost
Principal
operations 25040619938.98 22398327532.43 20606027974.57 18355002752.42
Other
operations 187527438.45 17192420.44 172397627.65 12640971.42
25228147377.43 22415519952.87 20778425602.22 18367643723.84
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
91
V Notes to the consolidated financial statements (Continued)
40. Operating revenue and cost (Continued)
Classif ication
Headquarters Distribution Retail
Inter-segment
offsets
Total
By product
Include:
Medicines - 17951760565.22 5957083892.95 (361359523.83) 23547484934.34
Medical appliance - 1345459501.68 - - 1345459501.68
Other 4747314.83 179640288.21 150815338.37 - 335202941.41
By area
Include:
Domestic sales 4747314.83 19476860355.11 6107899231.32 (361359523.83) 25228147377.43
Overseas sales - - - - -
By contract
duration
Include:
Confirm revenue
at a certain point
in time - 19297220066.90 5957083892.95 (361359523.83) 24892944436.02
Confirm revenue
at a certain time
period 4747314.83 179640288.21 150815338.37 - 335202941.41
Total 4747314.83 19476860355.11 6107899231.32 (361359523.83) 25228147377.43
Information about the Group’s obligations is as follows:
The Group recognises revenue when goods are delivered and will receive payment within 30-210 days.The Group recognises revenue after providing services and will receive payment within 30 -210 days.The expected revenue recognition time for the Group’s contract obligations above is in year 2019.Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has
not yet fulfilled is 239739020.90 yuan of which 239739020.90 yuan is expected to be recognized in 2019.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
92
V Notes to the consolidated financial statements (Continued)
41. Tax and surcharges
For the six month ended
30 June 2019
For the six month ended
30 June 2018
City maintenance and construction tax 24015771.70 22352680.77
Educational surcharge 17051137.40 16112625.97
Property tax 3182784.83 3075856.41
Land tax 310374.16 245070.74
Vehicle and vessel use tax 71880.95 98966.20
Stamp duty 17406047.59 14200426.96
Others 101229.81 534900.20
62139226.44 56620527.25
42. Selling expenses
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Employees payroll and welfare benefits 751390265.97 659176548.69
Rental expenses 85603520.94 322805173.33
Transportation charges 42481965.66 33086676.72
Depreciation expenses 313982576.03 26125384.59
Promotion and marketing expenses 21130375.63 18454328.54
Office allowances 19914617.62 16283197.98
Entertainment expenses 11670679.46 11357532.12
Storage expenses 15216365.97 14866861.14
Travel allowances 3017736.94 3415890.36
Market development fees 3713897.19 3255084.76
Conference expenses 1196924.88 1654991.62
Others 214013574.44 163107086.22
1483332500.73 1273588756.07
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
93
V Notes to the consolidated financial statements (Continued)
43. Administrative expenses
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Employees payroll and welfare benefits 265705706.25 248803724.84
Rental expenses 9155207.14 18347245.83
Depreciation expenses 16813385.90 12732380.45
Office allowances 11183599.31 11877499.56
Amortization of intangible assets 9779109.11 8272613.85
Entertainment expenses 5822240.83 6428775.38
Amortization of long-term deferred expenses 5532926.20 4518905.10
Vehicle management expenses 3630572.81 4435451.82
Travel allowances 3801532.99 4323679.13
Utilities 3094494.34 2713666.76
Taxations 1847691.62 2241415.79
Conference expenses 2586044.56 2059875.35
Repairing fees 2507057.40 1624550.73
Others 35757125.67 23440279.19
377216694.13 351820063.78
44. Finance costs
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Interest expenses 169529472.37 83356367.18
Less: Interest income (60630036.91) (23082233.56)
Cash discount (23190566.63) (21542580.44)
Exchanges loss/(gain) (389882.62) 329665.40
Others 18776268.03 18480325.74
104095254.24 57541544.32
45. Other incomes
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Government grants related to daily operating
activities 14974471.87 10589212.57
Taxation service charge refund 16447.15 741097.45
14990919.02 11330310.02
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
94
V Notes to the consolidated financial statements (Continued)
46. Investment income
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Investment income from long-term equity investments
under the equity method 169142289.99 162662271.35
Dividend income from other equity instruments invested
during the holding period - 31500.00
169142289.99 162693771.35
47. Impairment loss on financial assets
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Impairment loss of trade receivables (1666431.98) (1172127.53)
Impairment loss of other receivables
(9767669.15)
2198829.77
(11434101.13) 1026702.24
48. Impairment losses
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Inventory provision (125554.34) (508849.26)
(125554.34) (508849.26)
49. Gain on disposal of assets
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Gain on disposal of fixed assets (29725.44) 389144.70
Gain on disposal of intangible assets - 3892019.91
(29725.44) 4281164.61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
95
V Notes to the consolidated financial statements (Continued)
50. Non-operating income
For the six month
ended
30 June 2019
For the six month
ended
30 June 2018
Amount classif ied as
non-recurring profit or
loss
Government grants 1349204.28 1349204.28 1349204.28
Gain from writing off the unnecessary
payment 306191.87 2898512.62 306191.87
Gain on disposal of non-current assets 195336.00 2303.00 195336.00
Others 1816438.10 1248931.21 1816438.10
3667170.25 5498951.11 3667170.25
Government grants included in current period profit or loss:
Project Name Government
Department
Reasons for
Government
grants
Type Affects the
profit or
loss of this
year
Special
subsidy
For the six
months
ended
30 June 2019
For the six
months
ended
30 June
2018
Related to
asset/income
Resettlement
Compensation
of No. 7
Zhongyao
Road
Nanning
Economic &
Technological
Development
Area
Management
Committee
Subsidy Subsidies from
local government
for support policies
such as attracting
investment
Yes No 1349204.28 1349204.28 Asset related
All non-operating income was wholly classified as non-recurring profit or loss for the six month ended
51. Non-operating expenses
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Amount
classif ied as
non-recurring
profit or loss
Donation expenses - 60000.00 -
Penalty expenses 273498.60 1194388.28 273498.60
Loss on disposal of a non-
current asset 161292.34 28525.01 161292.34
Others 1283474.62 514379.51 1283474.62
1718265.56 1797292.80 1718265.56
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
96
V Notes to the consolidated financial statements (Continued)
52. Income taxes
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Current income tax 183966126.67 163102979.73
Deferred income tax 8277799.83 1383754.59
192243926.50 164486734.32
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 2019
Total profit 960336481.81
Income taxes calculated at applicable tax rates 240084120.45
Lower tax rates enacted by local authorities (13265455.52)
Adjustment of income tax expense of previous years (4574884.17)
Income not subject to tax (47995671.32)
Expenses not deductible for tax 17747992.12
Deductible loss on unconfirmed deferred tax assets at end of the
period 493231.44
Impact of the temporary discrepancy on unconfirmed deductible
deferred tax assets at end of the period (255667.65)
Impact of the temporary discrepancy on unconfirmed deductible
deferred tax assets of the pervious year 10261.15
Income tax 192243926.50
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
97
V Notes to the consolidated financial statements (Continued)
53. Notes to items in the cash flow statement
(a) Cash receipts related to other operating activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Government grants except tax return 16340011.49 10345223.64
Rent income 37910253.81 37793728.50
Received operational restricted bank deposits 123321063.70 88156799.79
Interest income 60227651.15 22642258.30
Others 57683231.05 153046777.37
295482211.20 311984787.60
(b) Cash paid relating to other operating activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Rental expenses 94758728.08 341152419.16
Entertainment expenses 17492920.29 17786307.50
Transportation charges 42481965.66 33086676.72
Travel expenses 6819269.93 7739569.49
Storage expenses 15216365.97 14866861.14
Office expenses 31098216.93 28160697.54
Advertising expenses 21130375.63 18454328.54
Others 265893688.82 377222116.67
494891531.31 838468976.76
(c) Cash received relating to other investing activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Received entrusted loan payments 44000000.00
Received funds of acquiring Sinopharm
Huadu
4680000.00
Others 86145.15
- 48766145.15
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
98
V Notes to the consolidated financial statements (Continued)
53. Notes to items in cash flow statement (Continued)
(d)
Cash paid relating to other investing
activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Entrusted borrowings paid to Zhijun Suzhou - 43999800.00
Others 1093125.00 -
1093125.00 43999800.00
(e)
Cash received relating to other
financing activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Financing restricted monetary funds
received
3512659.71
79825164.60
Others - 3920000.00
3512659.71 83745164.60
(f)
Cash payments relating to other
financing activities
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Bank factoring payable 174269120.18 64002739.23
Lease payment 299173550.25 -
Purchase of equity of minority shareholders - 54722980.00
Others 36719497.31 -
510162167.74 118725719.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
99
V Notes to the consolidated financial statements (Continued)
54. Supplementary information of cash flow statement
(a) Reconciliation of net profit to cash flows from operating activities
For the six month ended
30 June 2019
For the six month ended
30 June 2018
Net profit 768092555.31 689249009.91
Adjustments: Provision for asset impairment 11559655.47 (506814.18)
Depreciation of fixed assets and investment
properties 48917181.72 38366126.42
Amortization of intangible assets 14808363.43 11832914.62
Amortization of long-term prepaid expenses 50607272.62 41638297.62
Gains on disposal of fixed assets and other
non-current assets 131566.90 (4254942.60)
Finance costs 159266607.86 82449854.36
Investment income (169142289.99) (162693771.35)
Increase in deferred tax assets 5674224.55 3402744.73
(Increase)/decrease in deferred tax liabilities 2603575.28 (2018990.14)
(Increase)/decrease in inventories (492796771.41) (463324117.97)
Increase in operating receivables items (1983255213.04) (1298602834.11)
(Decrease)/increase in operating payable
items 2463112034.51 1170553090.12
Others 284178818.14 119267141.77
Net cash generated from operating activities 1163757581.35 225357709.20
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
100
V Notes to the consolidated financial statements (Continued)
54. Supplementary information of cashflow statement (Continued)
(b) Movement of cash
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Cash at the end of the period 7768974878.91 3592715787.37
Less: Cash at the beginning of the period 7632117020.77 3673498691.48
Net increase in cash 136857858.14 (80782904.11)
(c) Cash
30 June 2019 31 December 2018
Cash 7768974878.91 7632117020.77
Incl: Cash on hand 3415085.25 5587191.18
Bank deposits on demand 7765559793.66 7626529829.59
Ending banlance cash and
cash equivalent 7768974878.91 7632117020.77
55. Notes to changes in shareholders’ equity
The current capital reserve -“Other” increased by RMB 42424747.00 when other changes in equity of
Shyndec Pharma resulted in adjustment of long-term equity investment and an increase of capital surplus
amounting to RMB 42424747.00.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
101
V Notes to the consolidated financial statements (Continued)
56. Assets under restricted ownership or right of use
Book value Reasons
Cash and cash equivalents 317353629.58
Deposits of bank acceptance notes
depostis for letter of credit and others.Notes receivables 211316836.99
notes receivable discounted but not
due
528670466.57
Note 1: At 30 June 2019 the Group had deposits of bank acceptance notes and letter of credit deposit
amounting to RMB317353629.58 (31 December 2018: RMB457664283.79) (Note V(1)); the deposit of
bank acceptance bill is RMB317047823.58 the letter of credit deposit is RMB305806.00.Note 2: At 30 June 2019 the Group had notes receivable of RMB211316836.99 discounted but not due (31
December 2018: RMB170013427.11) (Note V (2)).
Note 3: At 30 June 2019 the Group had notes receivable of RMB 0 endorsed but not due (31 December
2018: 301416.00) (Note V (2)).
57. Government grants
Type
Amount Account title
Included in current
period profit or loss:
2017 Key enterprise development award funds
of Liwan District Guangzhou
3166380.00
Other incomes
3166380.00
2018 Hundreds of enterprises reward funds of
Chancheng District Foshan City
310824.00 Other incomes 310824.00
Third party drug modern logistics public
information platform
9400.20 Other incomes 9400.20
2013 Guangzhou subsidies for headquarters 264841.74 Other incomes 264841.74
Guangzhou special subsidy for the
construction of research and development
institutions
44705.94 Other incomes 44705.94
Guangzhou special subsidy for commerce and
trade circulation industry
241440.44 Other incomes 241440.44
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
102
V Notes to the consolidated financial statements (Continued)
57. Government grants (Continued)
Liw an District Sinopharm Supply Chain
Engineering Technology Research and
Development Center
11598.84 Other incomes 11598.84
Medical Smart Supply Chain E-commerce
Service Platform Technology Project
21884.52 Other incomes 21884.52
Input tax 10% deduction
406083.20
Other incomes/
Deferred income
369265.69
Office rent subsidy 102415.76 Other incomes 102415.76
Centralized f inancial subsidy fund for
comprehensive pilot w ork of modern service
industry
150000.00 Other incomes 150000.00
Guangdong Provincial Science and
Technology Bureau's grant for the "Smart
Supply Chain Project"
17011.65 Other incomes 17011.65
Guangzhou Logistics Standardization Pilot
Project
273123.42 Other incomes 273123.42
Industrial application project of pharmaceutical
cold chain patent incubator
12499.98 Other incomes 12499.98
Key enterprises support rewards of Liwan
District Guangzhou
60800.00 Other incomes 60800.00
Employment subsidy 619679.48 Other incomes 619679.48
Statistical work subsidy 10000.00 Other incomes 10000.00
Nanning logistics project construction support
fund
93203.22 Other incomes 93203.22
Business bureau award 50000.00 Other incomes 50000.00
Business enterprise support reward 300000.00 Other incomes 300000.00
Modern logistics cold chain integration
monitoring platform project
30000.00 Other incomes 30000.00
Medical w arehousing center logistics
information platform project
71428.56 Other incomes 71428.56
Modern pharmaceutical logistics remote
location construction project
35714.28 Other incomes 35714.28
Industrial transformation and upgrading special
funds
179112.66 Other incomes 179112.66
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
103
V Notes to the consolidated financial statements (Continued)
57. Government grants (Continued)
Quarterly growth award for special funds for
industrial development
150000.00 Other incomes 150000.00
Subsidies for the employment of disabled
persons
18257.35 Other incomes 18257.35
Futian district modern service industry
quarterly growth award
300000.00 Other incomes 300000.00
Special funds for business development 50000.00 Other incomes 50000.00
2018 finance bureau subsidy of Putuo district 1430000.00 Other incomes 1430000.00
Key enterprises support funds of Putuo district 483143.05 Other incomes 483143.05
Futian District Industrial Development Special
Fund Award
700000.00 Other incomes 700000.00
Gulou District Tax Subsidy 130000.00 Other incomes 130000.00
Small-scale taxpayers are exempt from VAT 2310639.30 Other incomes 2310639.30
Tianjin Heping District Business Committee
Award
5600.00 Other incomes 5600.00
Shenyang City Service Development Special
Fund Subsidy
2000000.00 Other incomes 2000000.00
tax return form Dalian 682221.79 Other incomes 682221.79
Weidong District Tax Rew ard 100000.00 Other incomes 100000.00
Yangpu District SME Development Special
Fund
169000.00 Other incomes 169000.00
Tax system service fee refund 280.00 Other incomes 280.00
Subsidy of electric vehicle 39619.95 Deferred income
Resettlement Compensation of No. 7 Zhongyu
Road
1349204.28
Non-operating
income
1349204.28
Shenzhen Futian District Development Service
Center District Industrial Development Special
Fund Loan Discount
133300.00
Financial
expenses
133300.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
104
VI. Changes in scope of consolidation
1. Changes in scope of consolidation for other reasons
Establishment of subsidiaries:
30 June 2019
For the six months ended 30
June 2019
Net assets Net profits
Sinopharm Holding Guoda Bayannaoer Co. Ltd.(a) 20071010.09 71010.09
Inner Mongolia Guoda Pharmaceutical Co. Ltd.(b) 19435858.10 (564141.90)
Sinopharm Holding Guoda Yongxingtang Chain
(Chaoyang) Co. Ltd.(c) 21362985.84 162985.84
a. On 18 November 2018 the Group and Hohhot Manshengyuan Trading Co. Ltd. set up
Sinopharm Holding Guoda Bayannaoer Co. Ltd. registered capital subscribed RMB
16000000.00 and RMB 4000000.00 respctively. In January 2019 the Group and minority
shareholders completed the capital contribution.The Group holds 80% of its equity after the
completion。
b. On 22 October 2018 The Group wholly-owned Inner Mongolia Guoda Pharmaceutical Co. Ltd.with a registered capital of RMB 20 million. and completed capital contribution in February 2019.c. On 30 April 2019 the Group and Chaoyang Bowei Consulting Service Co. Ltd. set up
Sinopharm Holding Guoda Yongxingtang Chain (Chaoyang) Co. Ltd. registered capital
subscribed RMB 19380000.00 and RMB 18620000.00 respctively. In June 2019 the Group
and the minority shareholders contributed RMB 6528000.00 and RMB 6272000.00
respectively. The Group holds 51% of its equity after the completion。
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
105
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% Establishment
Sinopharm Baise Baise Baise Commercial - 100% Establishment
Sinopharm Holding
Zhongshan Co.Ltd.(hereafter
ref ered
as"Sinopharm
Zhongshan") Zhongshan Zhongshan Commercial - 100% Establishment
Sinopharm Guigang Guigang Guigang Commercial - 100% Establishment
Sinopharm Beihai Beihai Beihai Commercial - 100% Establishment
Sinopharm Holding
Guangzhou Medical
Treatment Guangzhou Guangzhou Commercial - 51% Establishment
Sinopharm Holding
Shenzhen Jianmin
Co. Ltd.(hereafter
ref ered
as"Sinopharm
Jianmin") Shenzhen Shenzhen Commercial 100% -
Business
combinations
inv olving entities
under common
control
Sinopharm Holding
Shenzhen
Traditional & Herbal
Medicine Co. Ltd.(hereafter referd as“SinopharmTraditional & Herbal
Medicine") Shenzhen Shenzhen Commercial 100% -
Business
combinations
inv olving entities
under common
control
Sinopharm Holding
Shenzhen Logistics
Co. Ltd. (hereafter
ref eredas“ShenzhenLogistics") Shenzhen Shenzhen Serv ices 100% -
Business
combinations
inv olving entities
under common
control
Sinopharm Holding
Guangzhou Co. Ltd.(hereafter referedas“SinopharmGuangzhou") Guangzhou Guangzhou Commercial 100% -
Business
combinations
inv olving entities
under common
control
Sinopharm Holding
Guangdong
Hengxing Co. Ltd.(hereafter referedas“SinopharmHengxing") Guangzhou Guangzhou Commercial - 100%
Business
combinations
inv olving entities
under common
control
Sinopharm Yulin Yulin Yulin Commercial - 100%
Business
combinations
inv olving entities
under common
control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
106
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidi aries
Principal pl ace
of business
Place of
incorporation
Nature of
business
Shareholdi ng
Ways of acquisition
Direct Indirect
Sinophar m Li uzhou Liuzhou Liuzhou Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Guangdong Hui xin Investment
Co. Ltd. (“Hui xin Inves tment”) Guangzhou Guangzhou Service 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Foshan Co.Ltd. (“Sinophar m Foshan") Foshan Foshan Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng GuangdongYuexing Co. Ltd. (“Sinophar mYuexing”) Guangzhou Guangzhou Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guangdong
Logistics Co. Ltd.(“Guangdong Logistic”) Guangzhou Guangzhou Service 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Guangxi Nanning Nanning Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Guangxi Logistic Nanning Nanning Service 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Wuzhou Wuzhou Wuzhou Commercial 99.90%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Dongguan Dongguan Dongguan Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Zhanjiang Zhanjiang Zhanjiang Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Yanfeng Shenzhen Shenzhen Commercial 51.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Meizhou Meizhou Meizhou Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Huizhou Huizhou Huizhou Commercial 100.00%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Zhaoqing Zhaoqing Zhaoqing Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Jiangmen（a） Jiangmen Jiangmen Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Shaoguan Shaoguan Shaoguan Commercial - 70%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Holdi ng Shantou C o.Ltd.(hereafter referedas"Sinopharm Shantou”) Shantou Shantou Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Foshan Nanhai Medicine Co. Ltd. Foshan Foshan Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Foshan Nanhai Uptodate &
Special M edicines Co. Ltd. Foshan Foshan Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Foshan Nanhai Medicine Co. Ltd. Foshan Foshan Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Guangdong Uptodate & Special
Medicines Guangzhou Guangzhou Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Guangdong South Phar maceutical
Foreign Trade C o. Ltd. Guangzhou Guangzhou Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Zhuhai Co.Ltd. ((hereafter referd as“Sinopharm Zhuhai") Zhuhai Zhuhai Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
107
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidi aries
Principal pl ace
of business
Place of
incorporation
Nature of
business
Shareholdi ng
Ways of acquisition
Direct Indirect
Sinophar m Holdi ng Maoming Co.Ltd. ((hereafter referd as“Sinopharm Maoming") Maoming Maoming Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Holdi ng GZ Medical
Technology Co. Ltd. Guangzhou Guangzhou Commercial - 51% Establishment
Sinophar m Holdi ng GZ Medical
Supply Chai n Service Co. Ltd. Guangzhou Guangzhou Commercial - 51% Establishment
Sinophar m Holdi ng Heyuan Co.Ltd. ((hereafter referd as“Sinopharm Heyuan") Heyuan Heyuan Commercial - 70%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Holdi ng Guoda
Phar macy Co. Ltd. Shanghai Shanghai Commercial 60% -
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Phar macy Chain Stor e
Shanghai Co. Ltd. Shanghai Shanghai Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Beijing Guoda Pharmacy Chai n
Store C o. Ltd. Beijing Beijing Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Tianjin Guoda Phar macy C hain
Store C o. Ltd. Tianjin Tianjin Commercial - 80%
Business combi nations
involvi ng entiti es under
common control
Guangxi Guoda Pharmacy
Consulting Chain Store Co.
Ltd. Nanning Nanning Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Phar macy Guangdong Co.Ltd. Shenzhen Shenzhen Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Guoda Phar macy
Guangxi Chain Co. Ltd. Liuzhou Liuzhou Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Zhejiang Guoda Phar macy C o.Ltd. Hangzhou Hangzhou Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Yangzhou D adesheng
Phar macy Chain Stor e Co.Ltd. Yangzhou Yangzhou Commercial - 93.68%
Business combi nations
involvi ng entiti es under
common control
Ningxia Guoda Phar macy C hain
Store C o. Ltd. Yinchuan Yinchuan Commercial - 70%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda Nanjing
Phar macy Chain Stor e Co.Ltd. Nanjing Nanjing Commercial - 60%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Shandong Pharmacy Chain
Store C o. Ltd. Linyi Linyi Commercial - 55%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Shenyang Pharmacy Chain
Store C o. Ltd.(b) Shenyang Shenyang Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Fujian Guoda Pharmacy Chain
Store C o. Ltd.(c) Xiamen Xiamen Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Anhui Guoda Phar macy Chain
Store C o. Ltd. Hefei Hefei Commercial - 60%
Business combi nations
involvi ng entiti es under
common control
Quanzhou Guoda Pharmacy
Chain Store C o. Ltd. Quanzhou Quanzhou Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Shanxi Guoda Wanmin Pharmacy
Chain Store C o. Ltd. Taiyuan Taiyuan Commercial - 85%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Hunan Guoda
Minshengtang Pharmacy
Chain Co. Ltd. Hengyang Hengyang Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Liyang Guoda People Phar macy
Chain Store C o. Ltd. Liyang Liyang Commercial - 80%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda Henan
Phar macy Chain Stor e Co.Ltd. Pingdingshan Pingdingshan Commercial - 60%
Business combi nations
involvi ng entiti es under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
108
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidi aries
Principal pl ace
of business
Place of
incorporation
Nature of
business
Shareholdi ng
Ways of acquisition
Direct Indirect
Sinophar m Holdi ng Guoda Inner
Mengdia Phar macy Chain
Store C o. Ltd. Hohhot Hohhot Commercial - 96.7%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Hebei Lerentang
Phar macy Chain Stor e Co.Ltd. Shijiazhuang Shijiazhuang Commercial - 60%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Guoda Phar macy
Jiangmen Chain Co. Ltd. Jiangmen Jiangmen Commercial - 65%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda Shanxi
Yiyuan Pharmacy Chain Store
Co. Ltd. Taiyuan Taiyuan Commercial - 80%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Xinjiang New
& Special Medicines C hain
Store C o. Ltd. Urumqi Urumqi Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda ForMe
Medicines (Shanghai) Co. Ltd. Shanghai Shanghai Commercial - 97%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda ForMe
Phar macy Chain Stor e Co.Ltd. (Formerl y “Shanghai
ForMe YiXing Pharmacy ChainStore C o. Ltd.”) Shanghai Shanghai Commercial - 99.76%
Business combi nations
involvi ng entiti es under
common control
Beijing Golden Elephant Phar macy
Medicine Chain C ompany
Limited Beijing Beijing Commercial - 53.13%
Business combi nations
involvi ng entiti es under
common control
Shanxi Tongfeng Pharmacy
Logistics Co. Ltd. Taiyuan Taiyuan Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Changzhi Guoda Wanmi n
Phar macy Chain Stor e Co.Ltd. Changzhi Changzhi Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Shanxi Guoda Wanmin Clinic
Management Chain Co. Ltd. Taiyuan Taiyuan Medical ser vices - 100%
Business combi nations
involvi ng entiti es under
common control
Shanghai Guoda Shanghong
Qibao Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Zhejiang Intlmedicine Pharmacy
Dongshan Co. Ltd. Hangzhou Hangzhou Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Shanghai Guoda D ongsheng
Phar macy Co. Ltd. Shanghai Shanghai Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Guoda Drug Store
(Shenzhen) Chai n Co. Ltd. Shenzhen Shenzhen Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Phar macy Guangzhou Chain
Co. Ltd. Guangzhou Guangzhou Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Shanghai Guodong Chinese
Traditional Medicine Clinic Co.Ltd. Shanghai Shanghai Medical clinic - 100%
Business combi nations
involvi ng entiti es under
common control
Shanghai Guoda D ongxi n
Phar macy Chain Stor e Co.Ltd. Shanghai Shanghai Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Shanghai Yutaitang Chi nese
Traditional Medicine Clinic Co.Ltd. Shanghai Shanghai Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sanhe Li yang Golden Elephant
Phar macy Co. Ltd. Langfang Langfang Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Xiaoyi Guoda Wanmi n Baicaotang
Phar macy Chain Stor e Co.Ltd. Xiaoyi Xiaoyi Commercial - 70%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda
Phar macy Hul un Buir Co. Ltd. Hulun Buir Hulun Buir Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
ForMe Xuhui Shanghai Shanghai Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Ulanqab C o.Ltd. Ulanqab Ulanqab Commercial - 60% Establishment
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
109
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidi aries
Principal pl ace
of business
Place of
incorporation
Nature of
business
Shareholdi ng
Ways of acquisition
Direct Indirect
Sinophar m Guoda Phar macy
Qinhuangdao C hain C o. Ltd. Qinhuangdao Qinhuangdao Commercial - 51%
Business combi nations
involvi ng entiti es under
common control
Taishan Sinopharm Holding
Guoda Qunkang Phar macy
Chain Store C o. Ltd. Taishan Taishan Commercial - 70%
Business combi nations
involvi ng entiti es under
common control
Beijing Golden Elephant Fuxi ng
Technology Co. Ltd. Beijing Beijing Commercial - 80%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Lerentang
Shijiazhuang Phar maceutical Shijiazhuang Shijiazhuang Commercial - 100%
Business combi nations
involvi ng entiti es under
common control
Sinophar m Holdi ng Guoda Drug
Store Manchuria Co. Ltd. Manchuria Manchuria Commercial - 51% Establishment
Sinophar m Guoda Drug Store
Anshan C hain Co. Ltd. Anshan Anshan Commercial - 51% Establishment
Sinophar m Holdi ng Guoda
Yongsheng Drug Store（Shanghai） Co. Ltd. Shanghai Shanghai Commercial - 55% Establishment
Sanhe Li xin Golden El ephant
Drugstore Co. Ltd. Langfang Langfang Commercial - 100% Establishment
Sinophar m Holdi ng Foshan
Medical Consumables Supply
Chain Co. Ltd. Foshan Foshan Commercial - 70% Establishment
Sinophar m Holdi ng Medical
Supply Chai n Service
(Guang xi) Co. Ltd. Nanning Nanning Commercial - 30.06% Establishment
Shanghai Guoda H aohai
Phar macy Co. Ltd. Shanghai Shanghai Commercial - 51% Establishment
Sinophar m Holdi ng Bai yi
Phar macy Guangxi C o. Ltd. Nanning Nanning Commercial - 51% Establishment
Sinophar m Holdi ng Hezhou Co.Ltd. Hezhou Hezhou Commercial - 100% Establishment
Sinophar m Holdi ng National
Phar macy Zhengzhou Chain
Co. Ltd. Zhengzhou Zhengzhou Commercial - 60% Establishment
Shanghai Guoda R uijing
Phar macy Co. Ltd. Shanghai Shanghai Commercial - 55% Establishment
Fujian Guoda Pharmaceutical Co.
Ltd. Xiamen Xiamen Commercial - 100% Establishment
Sinophar m Holdi ng Qinzhou C o.Ltd. Qinzhou Qinzhou Commercial - 100% Establishment
Sinophar m Holdi ng Hechi Co. Ltd. Hechi Hechi Commercial - 100% Establishment
Sinophar m Holdi ng Guangzhou
Huadu Co. Ltd. Guangzhou Guangzhou Commercial - 70%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Holdi ng Guoda Shanxi
Phar maceutical C o. Ltd.(d) Taiyuan Taiyuan Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Taiyuan Tong xinli Guoda
Phar macy Co. Ltd. Taiyuan Taiyuan Commercial - 100%
Business combi nations
involvi ng entiti es not under
common control
Sinophar m Holdi ng Guoda
Bayannaoer Co. Ltd.(e) a Bayannaoer a Bayannaoer Commercial - 80% Establishment
Inner Mongolia Guoda
Phar maceutical C o. Ltd.(f) Hohhot Hohhot Commercial - 100% Establishment
Sinophar m Holdi ng Guoda
Yong xingtang Chain
(Chaoyang) Co. Ltd.(g) Chaoyang Chaoyang Commercial - 51% Establishment
VII Interests in other entities(Continued)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
110
1． Interests in subsidiaries(Continued)
(1) The composition of the Group(Continued)
a. On 13 March 2019 Sinopharm Jiangmen was renamed as “Sinopharm Holding (Jiangmen) Co. Ltd.”.b. Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co. Ltd increased the registered capital by
RMB32000000.00 with undistributed profits. After the capital increased the registered capital of Shenyang
Guoda increased from RMB18000000.00 to RMB 50000000.00 and the shareholding ratio of the original
shareholders did not change.c. On 17 April 2019 the shareholder of Fujian Guoda Pharmacy Chain Store Co. Ltd. Changed from Sinopharm
Holding Guoda Pharmacy Co. Ltd. to Fujian Guoda Pharmaceutical Co. Ltd. by internal transfer. The 1 00%
equity of Fujian Guoda Chain held by the original shareholder Sinopharm Holding Guoda Pharmacy Co. Ltd.was transferred to Fujian Guoda Pharmaceutical Co. Ltd.d. On 1 February 2019 Shanxi Zhongao Pharmaceutical Co. Ltd. was renamed as “Sinopharm Hold ing GuodaShanxi Pharmaceutical Co. Ltd.”.e. On 5 November 2018 the Group and Hohhot Manshengyuan Trading Co. Ltd. set up Sinopharm Holding
Guoda Bayannaoer Co. Ltd. registered capital subscribed RMB 16000000.00 and RMB 4000000.00
respctively. In January 2019 the Group and minority shareholders completed the capital contribution.The
Group holds 80% of its equity after the completion.f. On 22 October 2018 the Group wholly-owned Inner Mongolia Guoda Pharmaceutical Co. Ltd. with a
registered capital of RMB 20 million. and completed capital contribution in February 2019.g. On 30 April 2019 the Group and Chaoyang Bowei Consulting Service Co. Ltd. set up Sinopharm Holding
Guoda Yongxingtang Chain (Chaoyang) Co. Ltd. registered capital subscribed RMB 19380000.00 and RMB
18620000.00 respctively. In June 2019 the Group and minority shareholders contributed RMB 6528000.00
and RMB 6272000.00 respectively. The Group holds 51% of its equity after the completion。
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
111
VII. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) Important non-wholly owned subsidiary
Subsidiaries Minority
shareholding ratio
Profit or loss
attributable to minority
shareholders in the
current period
Dispatch of dividends
to minority
shareholders in the
current period
Minority shareholders'
equity
Sinopharm Holding Guoda
Pharmacy Co. Ltd. 40.00% 60082149.76 1743715207.60
(2) Key financial information of important non-wholly owned subsidiaries
Subsidiaries
30 June 2019 31 December 2018
Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total liabilities Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total liabilities
Sinopharm
Holding Guoda
Pharmacy Co.Ltd.
7637323815 .74 3210489588 .58 10847813404 .32 4642692689 .21 1027988905 .69 5670681594 .90 7467662962 .46 1567755313 .41 9035418 275.87 3994471884 .62 64729132.20 4059201016 .82
Subsidiaries
For the six months ended 30 June 2019 For the six months ended 30 June 2018
Operating revenue Net profit
Total comprehensive
income
Cash flow from
operating activities
Operating revenue Net profit
Total comprehensive
income
Cash flow from
operating activities
Sinopharm Holding
Guoda Pharmacy Co.Ltd.
6107899231.32 186189865.75 186189865.75 545455740.77 5143601636.87 172985004.03 172985004.03 77797706.43
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
112
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.(hereafter referd as"Main
Luck Pharmaceutical ") Shenzhen Shenzhen Manufacturing 35.19% - Equity
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Co. Ltd. Suzhou Suzhou Manufacturing 33.00% - Equity
Si nopharm Group
Zhij un(Shenzhen)
Pharmaceuti ca l Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shenzhen Zhij un Pharmaceut i cal
Trade Co. L td. Shenzhen Shenzhen Commercial 49.00% - Equity
Si nopharm Group
Zhij un(Shenzhen) Pi ngshan
Pharmaceuti ca l Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shanghai Shyndec
Pharmaceutical Co. Ltd.(hereafter referd as
“Shyndec Pharmaceutical”) Shanghai Shanghai Manufacturing 16.28% - Equity
Shanghai Dingqun Enterprise
Management Consulting
Co. Ltd.(hereafter refered
as “Shanghai Dingqun”) Shanghai Shanghai
Business service
industry 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
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
113
VII. Interests in other entities (Continued)
2. Interests in associates (Continued)
Principal
place of
business
Place of
incorporation
Nature of
business
Shareholding(%)
Accounting
Direct Indirect
Associates
Dongyuan accord
pharmaceutical chain Co.Ltd. Heyuan Heyuan Commercial - 45.00% Equity
Guangdong Jianhui
Construction Investment
Management Co.Ltd.(hereafter refered as
“Guangdong Jianhui”) Zhanjiang Zhanjiang
Public-Private-
Partnership - 10.00% Equity
Shanghai Renbei Pharmacy
Co. Ltd. Shanghai Shanghai Commercial - 30.00% Equity
Explication of the shareholding ratio of a joint venture differs from the proportion of voting rights:
The basis that holds less than 20% of the voting rights but has a significant impact or holds 20% or
more of the voting rights but has no significant impact:
(1) The highest authority of Shanghai Dingqun is the shareholders' meeting and the shareholders
exercise their voting rights according to the proportion of capital contribution. At the same time
Shanghai Dingqun has set up a board of directors which is responsible for the shareholders'
meeting. The board consists of three members of which the company has appointed one
director. The vote on the board's resolution is one vote per person and all the board
resolutions should be passed by more than half of all directors.
(2) The highest authority of Guangdong Jianhui is the shareholders' meeting and the shareholders
exercise their voting rights according to the proportion of the capital contribution. At the same
time Guangdong Jianhui set up a board of directors which is responsible for the shareholders'
meeting. The board consists of five members of which the company has appointed one director.The vote on the resolution of the board of directors is one vote per person.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
114
VII. Interests in other entities (Continued)
3. Summarised financial information of significant associate
30 June 2019/ For the six months
ended 30 June 2019
1 January 2019/ For the six months
ended 30 June 2018
Shanghai Shyndec
Pharmaceutical Co. Ltd.Shanghai Shyndec Pharmaceutical
Co. Ltd.
Current assets 10502009120.54 8470191403.19
Non-current assets 7879885410.94 7993673189.70
Total assets 18381894531.48 16463864592.89
Current liabilit ies 7111735949.12 6568480863.79
Non-current liabilities 2323172902.37 1452099931.65
Total liabilit ies 9434908851.49 8020580795.44
Non-controlling interests 1616396132.89 1637029480.44
Shareholders’ equity attributable to
shareholders of the parent
7330589547.10 6806254317.01
Portion of net assets calculated by
shareholding ratio
1189353675.16 1098566852.51
Carrying value of equity investment in
joint ventures
1189353675.16 1098566852.51
Operating revenue 6255380073.90 5853255169.05
Net profit 525814658.05 575258204.58
Total comprehensive income 525814658.05 575258204.58
Dividends received from joint ventures
this period
16896427.80 8641853.20
30 June 2019/ For the six months
ended 30 June 2019
1 January 2019/ For the six months
ended 30 June 2018
Sinopharm Group
Zhijun(Shenzhen) Pharmaceutical
Co. Ltd.
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd.
Current assets 1288625706.65 1111485098.64
Non-current assets 302186939.74 298610691.12
Total assets 1590812646.39 1410095789.76
Current liabilit ies 725207812.63 659931220.07
Non-current liabilities 20932797.22 24953965.28
Total liabilit ies 746140609.85 684885185.35
Non-controlling interests - -
Shareholders’ equity attributable to
shareholders of the parent 844672036.54 725210604.41
Portion of net assets calculated by
shareholding ratio 413889297.90 355353196.15
Carrying value of equity investment in
joint ventures 413889297.90 355353196.15
Operating revenue 1060889164.97 979292309.92
Net profit 119461432.13 125252164.85
Total comprehensive income 119461432.13 125252164.85
Dividends received from joint ventures
this period - 58111254.57
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
115
VIIl. Risks related to financial instruments
1. Classification of financial instruments
The carrying amounts of each category of financial instruments as at the date of financial position are as follows:
30 June 2019
Financial assets
Financial assets at fair
value through profit or loss
Financial assets at
amortised cost
Financial assets at fair value through other
comprehensive income
Total
Mandatorily required
Mandatorily
required
Designation
Cash and bank balances - 8086328508.49 - - 8086328508.49
Notes receivable - 790664828.26 - - 790664828.26
Accounts receivable - 11826440731.59 - - 11826440731.59
Receivable financing - -
325439580.18 - 325439580.18
Other receivables - 654086387.85 - - 654086387.85
Other non-current financial
assets 140000000.00 - - - 140000000.00
Investment in other equity
instrument - - - 13685760.00 13685760.00
140000000.00 21357520456.19
325439580.18 13685760.00 21836645796.37
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
116
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
30 June 2019
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 3290877595.23
Notes payable 3539095262.34
Accounts payable 8088697602.94
Other payables 1474526698.43
Non-current liabilities due within one year 558296784.75
16951493943.69
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
117
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
The carrying amounts of each category of financial instruments as at the date of financial position are as follows:
1 January 2019
Financial assets
Financial assets at fair
value through profit or loss
Financial assets at
amortised cost
Financial assets at fair value through other
comprehensive income
Total
Mandatorily required
Mandatorily
required
Designation
Cash and cash equivalents - 8089781304.56 - - 8089781304.56
Notes receivable - 789536654.23 - - 789536654.23
Accounts receivable - 9336861647.92 - - 9336861647.92
Receivable financing - - 567775275.40 567775275.40
Other receivables - 643493359.32 - - 643493359.32
Other non-current financial
assets 140000000.00 - - - 140000000.00
Investment in other equity
instrument - - - 13685760.00 13685760.00
140000000.00 18859672966.03 567775275.40 13685760.00 19581134001.43
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
118
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
1 January 2019
2. Transfer of financial assets
Transferred financial assets that are not derecognized in their entirety
As at 30 June 2019 the Group had endorsed commercial bills receivable (the "Endorsed Bills") to
certain of its suppliers in order to settle trade payables due to such suppliers of RMB5000000.00 (31
December 2018: RMB 301416.00). During the year the Group operated a number of discounting
business through several banks in China. At 30 June 2019 the carrying value thereof was
RMB211316836.99 (31 December 2018: RMB170013427.11). In the opinion of the directors the
Group has retained the substantial risks and rewards which include default risks relating to s uch
Endorsed Bills and accordingly it continued to recognize the full carrying amounts of the Endorsed
Bills and the associated trade payables settled. Subsequent to the Endorsement the Group did not
retain any rights of 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 2019 the carrying value of trade payables settled by the
Group totalled RMB216316836.99 (31 December 2018: RMB170314843.11).
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 2597652702.43
Notes payable 3416755681.80
Accounts payable 6468535961.17
Other payables 1539436971.93
Non-current liabilities due within one year 5861324.37
Long-term borrowings 31600000.00
Long-term payables 3763978.52
14063606620.22
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
119
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 2019 the Group had endorsed commercial bills receivable (the "Endorsed Bills") to
certain of its suppliers in order to settle trade payables due to such suppliers of RMB665479757.50
(31 December 2018: RMB568118674.84). During the year the Group operated a number of
discounting business through several banks in China. At 30 June 2019 the carrying value thereof was
RMB879092916.00 (31 December 2018: RMB705143849.35). 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 have a right of recourse against the Group if the
accepting banks default (the “Continuing Involvement”). 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 trade payables.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.
During the six months ended 30 June 2019 the Group has not recognized any gain or loss on the date
of transfer. No gain or loss was recognized from derecognized financial assets in which the Continuing
Involvement exists both during the year or cumulatively.
During the six months ended 30 June 2019 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.
As part of its normal business the Group entered into an trade receivable factoring arrangement (the
“Arrangement”) without recourse and transferred certain trade receivables 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 trade receivables. The
original carrying value of the derecognized trade receivables transferred under the Arrangement that
have not been settled as at 30 June 2019 amounted to RMB1299923031.76 (31 December 2018:
RMB827745640.19).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
120
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments
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 trade receivables and trade payables
which arise directly from its operations.The Company’s board of directors are responsible for planning and establishing the risk management
framework of the Group formulating risk management policies and related guidelines of the Group and
supervising the implementation of risk management measures. The Group has already developed risk
management policies to identify and analyse the risks faced by the Group which have clearly identified
specific risks covering a lot of aspects such as market risk credit risk and liquidity risk management.The Group regularly assesses the market environment and changes in the Group’s business activities
to determine whether or not to update the risk management policies and systems. The risk
management of the Group shall be conducted by the operations and management department
according to the policy approved by the Company’s management. The operations and management
department identifies evaluates and avoids related risks by means of close cooperation with o ther
business units of the Group.To avoid the risk concentrating on a single industry a specific area or a specific counterparty the Group
spreads financial instruments risk with diversified investments and business portfolio.
Credit risk
The Group only trades with recognised and creditworthy third parties. It is the Group’s policy that all
customers who wish to trade on credit terms are subject to credit verification procedures. In addition
receivable balances are monitored on an ongoing basis and the Group’s exposure to bad debts is not
significant. For t ransactions that are not denominated in the functional currency of the relevant
operating unit the Group does not offer credit terms without the special approval of the credit control
department of the Group.Since cash and bank balances bank acceptance bills receivable and derivative financial instruments
are placed in the well -established banks with high credit ratings the credit risk of these financial
instruments is lower.The other financial instruments of the Group include cash and bank and other receivables. The credit
risk of these financial assets result from default of counterparty. The maximum credit exposure equals
to the book value of these instruments.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
121
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
The Group applies standard credit clause for sale of goods to customers at the same time purchase
other goods from some of the major customers. Disclosures regarding maximum credit exposure on
trade receivables are as follows:
30 June 2019 1 January 2019
Trade receivable book value 12991845283.92 10733695012.29
Less: Bad debt provision (49300143.89) (39521434.74)
Carrying value 12942545140.03 10694173577.55
Amount payable to customer
The Group has agreement with customers stating that only in the circumstances of default in payment
from the customer can the Group use the payable balance of the same customer to offset receivables.Therefore at every balance sheet date the maximum credit risk exposure of the Group is the total
amount of trade receivables less bad debt provision. Since payables cannot be offset within the balance
sheet the maximum credit risk exposure is without deducting the customer payable balance.Since the Group trades only with recognised and creditworthy third parties there is no requirement for
collateral. Credit risks are managed by customer/counterparty by geographical region and by industry
sector. There are no significant concentrations of credit risk within the Group as the customer bases of
the Group’s trade receivables are widely dispersed in different sectors and industries. The Group does
not hold any collateral or other credit enhancements over its trade receivable balances.
Determination of significant increase in credit risk
At each reporting date the group determines whether the credit risk of a financial asset has increased
significantly since initial recognition. When determining whether the credit risk of a financial asset has
increased significantly since initial recognition the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative
and qualitative information analysis based on the Group’s historical experience and informed credit
assessment and including forward-looking information. In order to determine the change of expected
default risk during the financial instrument’s entire lifetime the Group compares the default risk of
financial instrument on the balance sheet date and on the initial recognition date base on a single
financial instrument or financial instrument port folio with similar default risk.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
122
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
The Group determines that the credit risk tof financial assets has significantly increased when one or
more quantitative or qualitative criteria are met:
- quantitative criteria are mainly probability of default increasing more than a given % since
initial recognition;
- qualitative criteria are mainly significant detrimental changes in the borrower’s operating or
financial conditions and early warning customer lists.- The upper criteria is 30 days the borrowers default.
Definition of credit-impaired financial assets
In assessing whether a financial asset is credit-impaired the Group considers both quantitative and
qualitative information in line with internal credit risk management. The Group assesses whether a
financial asset is credit-impaired by considering the following factors:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or past due event;
- the lender(s) of the borrower for economic or contractual reasons relating to the borrower’s
financial difficulty having granted to the borrower concession(s) that the lender(s) would not
otherwise consider;
- it is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;
- the disappearance of an active market for security because of financial difficulties ;
- financial assets purchased or sourced at large discounts indicating that credit losses have
occurred.The impairment of financial assets may not be necessarily due to a single disparate event. The
combined effects of multiple events may result in financial assets being credit -impaired.Parameter of the expected credit loss model
Based on whether there is a significant increase in credit risk and whether the financial assets are
credit-impaired the Group recognizes impairment allowance for different assets using either 12 -month
expected credit losses or li fetime expected credit losses. The measurement of the ECL model is a
function of the probability of default the loss given default (i.e. the magnitude of the loss if there is a
default) and the exposure at default. The Group establishes the model by considering the quantitative
analysis of historical statistics such as counterparty rating the guarantee method collateral category
repayment method and also forward-looking information.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
123
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
Definitions:
- The probability of default is the probability that the debtor will not be able to meet its
repayment obligations within the following 12 months or throughout the remaining duration.To reflect the macro-economic environment conditions the Group’s assessment of the
probability of default is based on the calculation of the ECL model adjusted by forward-
looking information.- The loss given default (i.e. the magnitude of the loss if there is a default) refers to the
Group's expectation of the extent of the loss of default risk exposure. The loss given default
varies depending on the type of counterparty the way and priority of recourse and the type
of collateral. The loss given default is the percentage of the risk exposure loss at the time of
default calculated on the basis of the next 12 months or the entire duration.- The exposure at default refers to the amount that the Group should be repaid in the event of
default in the next 12 months or throughout the remaining period.
Forward-look ing information
The assessment of a significant increase in credit risk and the calculation of the ECL both involve
forward-looking information. The Group recognizes key economic ratios that influence credit risk and
ECL by historical data analysis.
As at 30 June 2019 there was no evidence of significant increase in credit risk (31 December 2018: nil).
Currency risk
The Group’s major operational activities are carried out in Mainland China and a majority of
thetransactions 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 headquarters 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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
124
VIIl. Risks related to financial instruments (Continued)
4. Capital management
The Company’s primary objective for managing capital is to ensure that it maintains a strong credit
rating and healthy capital ratio in order to support its business maximize s hareholders’ 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 sharehold ers
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 30 June 2019 and 1 January 2019 were as follows:
30 June 2019 1 January 2019
Gearing ratio 56.59% 54.44%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
125
IX. Disclosure of fair value
1. Assets and liabilities at fair value
30 June 2019:
Input applied in the measurement of fair value
Quoted
prices in
active
markets
Significant
observable
inputs
Significant
unobservable
inputs
Total
Level 1 Level 2 Level 3
Receivable financing - 325439580.18 - 325439580.18
Investment in other
equity instrument
- - 13685760.00 - 13685760.00
Other non-current
financial assets
- - 140000000.00 140000000.00
- 339125340.18 140000000.00 479125340.18
1 January 2019:
Input applied in the measurement of fair value
Quoted
prices in
active
markets
Significant
observable
inputs
Significant
unobservable
inputs
Total
Level 1 Level 2 Level 3
Receivable financing - 567775275.40 - 567775275.40
Investment in other
equity instrument
- - 13685760.00 - 13685760.00
Other non-current
financial assets
- - 140000000.00 140000000.00
- 581461035.40 140000000.00 721461035.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
126
IX. Disclosure of fair value
2. Assets and liabilities disclosed at fair value
1 January 2019:
Input applied in the measurement of fair value
Quoted
prices in
active
markets
Significant
observable
inputs
Significant
unobservable
inputs
Total
Level 1 Level 2 Level 3
Long-term borrowings - 31600000.00 - 31600000.00
3. Estimation of fair value
The following are book value and fair value of financial instruments of the Group excluding those that has
immaterial different in book value and fair value:
30 June 2019 1 January 2019 31 December 2018
Book value
Fair value Book value
Fair value Book value Fair value
Financial liabilit ies
Long-term
borrowings - - 31600000.00 31600000.00
31600000.0
0 31600000.00
Management has assessed that the fair values of cash and cash equivalents notes receivable trade receivables
other receivables short-term borrowings notes payable trade payables other payables non-current liabilities due
within one year and other current assets and liabilities and current liabilities approximate to their carrying amounts
largely due to the short remaining maturities of these instruments.The financial controller of the Group takes the responsibility to formulate policies and procedures related to
financial instrument fair value measurements and directly reports to the CFO and the audit committee. On each
balance sheet date the financial department analyses the variation of the fair vule of financial instruments and
determines the inputs applicable to valuation. The valuation is required to be approved by the CFO.The fair values of financial assets and liabilities are the amount at which the instrument could be exchanged or
debts could be settled in an arm’s length transaction between knowledgeable and willing parties other than in a
forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.The fair values of short-term and long-term borrowings and long-term payables have been calculated by
discounting the expected future cash flows using market rates of return currently available for other financial
instruments with similar terms credit risk and remaining maturities. As at 30 June 2019 the Group’s own non -
performance risk for short-term and long-term borrowings was assessed to be insignificant.
For an equity instrument of listed entities the market price is used to determine fair value. For an equity instrument
of non-listed entities the market comparable company model is used to estimate fair value. The Group believes
that estimated fair value by the valuation method is rational and also the most sufficient value at the balance sheet
date.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
127
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
128
IX. Disclosure of fair value
4. Unobservable inputs
A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonable
fluctuation of the unobservable inputs.
5. Transfers between levels of fair value measurement
At 30 June 2019 and 1 January 2019 there were no transfers of fair value measurements between
Level 1 and Level 2.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
129
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. 297165.62 56.06% 56.06%
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII (1) for details of subsidiaries.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
130
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
Shyndec 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
Shanghai Renbei Pharmacy Co. Ltd. Associate
Guangdong Jianhui Construction Investment Management Co. Ltd. Associate
4. Other related parties
Company name Related party relationships
Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Southw est Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Zhidekang Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yongzhou Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
131
Company name Related party relationships
China National Medicines Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Prospect Dentech (Beijing) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co. Ltd. Controlled by Sinopharm Group
Sinopharm holdings Beijing huahong co. Ltd Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sub Marketing Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Henan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shandong Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lunan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dezhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Liaocheng 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 Putian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Medical Devices Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Bayannaoer Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ordos Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
132
Company name Related party relationships
Sinopharm Holding Jiangsu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lianyungang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co.Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Le-Ren-Tang Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade 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 Holding Donghong Medical (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changsha Co. Ltd. Controlled by Sinopharm Group
Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. Controlled by Sinopharm Group
Sinopharm Group Anhui Medical Devices Co. Ltd. Controlled by Sinopharm Group
China Medical Equipment Shandong Co. Ltd. Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Instrument Branch Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Distribution Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Gansu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
133
Company name Related party relationships
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company
Limited Controlled by Sinopharm Group
Sinopharm Xinxiang Chain Store Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nantong Co. Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Zhuhai Medical Instrument Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Binhai Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Logistics Co. Ltd. Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co. Ltd. Guangzhou Branch Controlled by Sinopharm Group
China National Scientif ic Instruments & Materials Imp/Exp Shenzhen Co. Ltd. Controlled by Sinopharm Group
Guorun Medical Supply Chain Service (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Base Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Lvliang Co. Ltd. Controlled by Sinopharm Group
Guoyao Lerentang Hebei Medical Device Supply Chain Management Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co. Ltd. Controlled by Sinopharm Group
Sinopharm Hebei Medical Instrument Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinhua Co. Ltd. Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Honghe Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chuxiong 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 Guanai Yuankang Pharmacy (Haikou) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Longyan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningde Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anshun Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongren Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
134
Company name Related party relationships
Sinopharm Holding Guizhou Medical Equiment Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Chain Store 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 Xuzhou Co. Ltd. Controlled by Sinopharm Group
Guoyao Lerentang Shijiazhuang Medical Management Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Deyang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co. Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument Foshan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Nanping Medical Instrument Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangxi Medical Equipment Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lu'an Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanchang Chain Store Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinxiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huangshi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jining Co. Ltd. Controlled by Sinopharm Group
Fujian Sinopharm Medical Instrument Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co. Ltd. Controlled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co. Ltd. Controlled by Sinopharm Group
Sinopharm Xinjiang Korla Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Shantou Jinshi Pharmaceutical Co. Ltd. Controlled by CNPGC
Huayi Pharmaceutical Co. Ltd. Controlled by CNPGC
Beijing Huamiao Pharmaceutical 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
Sinopharm Fengliaoxing (Foshan) Medicines Co. Ltd. Controlled by CNPGC
Shandong Lu Ya Pharmaceutical Co. Ltd. Controlled by CNPGC
Foshan Fengliaoxing Pharmaceutical Co. Ltd. Controlled by CNPGC
Winteam Pharmaceutical Group Ltd. Controlled by CNPGC
Foshan Dezhong Pharmaceutical Co. Ltd. Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co. Ltd. Controlled by CNPGC
Lanzhou Biotechnology Development Co. Ltd. Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co. Ltd. Controlled by CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
135
Company name Related party relationships
Shantou Jinshi Pow der Injection Co. Ltd. Controlled by CNPGC
Chengdu Institute of Biological Products Co.Ltd. Controlled by CNPGC
China National Pharmaceutical Industry Co. Ltd. Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co. Ltd. Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co. Ltd. Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co. Ltd. Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co. Ltd. Controlled by CNPGC
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 Yixin Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Holding Sanyi Medicine (Wuhu) Co. Ltd. Controlled by CNPGC
Guizhou Tongjitang Pharmacy Chain Co. Ltd. Controlled by CNPGC
Sichuan Jiangyouzhongbafuzi Technology Development Co. Ltd. Controlled by CNPGC
Lanzhou Institute of Biological Products Co. Ltd. Controlled by CNPGC
Sinopharm Wuhan blood products Co. Ltd. Controlled by CNPGC
Fujian Chentian Jinling Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Group Guizhou Blood 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
Group Financial Co. Controlled by CNPGC
Shanghai Shangsheng Biological Products Co. Ltd. Controlled by CNPGC
Sinopharm Group Chengdu Xinlibang Biological Products Co. Ltd. Controlled by CNPGC
Sinopharm Weiqida Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co. Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Traditional Chinese Medical Center Foshan
Nanhai Co. Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co. Ltd. Controlled by CNPGC
Yichang Humanw ell 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
Sinopharm Holding Financing Lease Co. Ltd. Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co. Ltd. Associate of Sinopharm Group
Nanchang Sinopharm Holding Guoyaotang Pharmacy Co. Ltd. Associate of Sinopharm Group
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Sinopharm ShanXi Ruifulai Pharmaceutical Co. Ltd. Associate of CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
136
Company name Related party relationships
Chongqing Yaoyou Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Guilin South pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co.Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co. Ltd. Subsidiary of Fosun Pharm
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
Jiangsu Huanghe Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Jiangsu Fuxing Pharmaceutical Trading Co. Ltd Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co. Ltd. Subsidiary of Fosun Pharm
Shanghai Compound Technology Medical Devices Co. Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng District Central Hospital Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shenzhen Qianda Medical Beauty Clinic Subsidiary of Fosun Pharm
Shenzhen Heng Sheng Hosital Subsidiary of Fosun Pharm
Shenzhen Wanwei Medicine Trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Linyi Medical Group Co. Ltd. Non-controlling interest of a subsidiary
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary
Henan Wanxitang Pharmacy Co. Ltd. Non-controlling interest of a subsidiary
Heyuan Mairui Trading Co. Ltd. Non-controlling interest of a subsidiary
Shenyang Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary
Zhang Zhenfang Non-controlling interest of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary
Lerentang Investment Group Co. Ltd. Non-controlling interest of a subsidiary
Shenzhen Jiufeng Investment Co. Ltd. Non-controlling interest of a subsidiary
Hunan Minshengtang Investment Co. Ltd. Non-controlling interest of a subsidiary
Taishan Qunkang Pharmacy Co. Ltd. Non-controlling interest of a subsidiary
Gu Haiqun Non-controlling interest of a subsidiary
Guangdong Jiyuantang Development Co. Ltd. Non-controlling interest of a subsidiary
Hangzhou Xihu Business Group Corporation 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
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
137
Company name Related party relationships
of a subsidiary
Gu Jinhua
Family member of the non-controlling
shareholder of a subsidiary
Wang Yang
Controller of non-controlling interest of
a subsidiary
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(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
(1) Related party transactions –goods and services
Purchase of goods and receiving of services from related parties
Related party Type of transaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Sub Marketing Center Co.Ltd. Purchase of goods 583923608.63 515167083.81
China National Medicines Co. Ltd. Purchase of goods 263718638.49 237636101.58
Sinopharm Holding Shanxi Co. Ltd.Purchase of goods 165125264.60 156466334.83
Sinopharm Holding Shanxi Co. Ltd. Purchase of goods 117012541.61 83517976.15
Sinopharm Group Purchase of goods 92577206.95 95150353.69
Jiangsu Wanbang Pharmacy Marketing Co. Ltd. Purchase of goods 84007944.24 33623739.18
Sinopharm Holding Shenyang Co. Ltd. Purchase of goods 63745181.47 63689297.73
Sinopharm Le-Ren-Tang Medicine Co. Ltd.Purchase of goods 58690396.26 79259083.01
Lanzhou Biotechnology Development Co. Ltd. Purchase of goods 55500000.00 -
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Purchase of goods 54227928.18 90145795.30
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. Purchase of goods 46674234.45 39872567.55
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. Purchase of goods 45672377.13 127271627.94
Sinopharm Holding Inner Mongolia Co. Ltd. Purchase of goods 34523083.38 18984953.29
Sinopharm Holding Lunan Co. Ltd. Purchase of goods 32561603.45 39298409.81
Sinopharm Holding Yangzhou Co. Ltd. Purchase of goods 29671574.81 23005232.97
Jinzhou AoHong Pharmaceuticals Co. Ltd. Purchase of goods 28182818.68 23749213.17
Chongqing Yaoyou Pharmaceutical Co. Ltd.
Purchase of goods 27810842.74 21508305.23
Tibet Yaoyou Medicines Co.Ltd.Purchase of goods 22100470.84 2761512.07
Sinopharm Holding Beijing Co. Ltd. Purchase of goods 20533829.97 23822442.41
Shenzhen Main Luck Pharmaceutical Co. Ltd. Purchase of goods 19919483.19 14173934.35
Winteam Pharmaceutical Group Ltd.Purchase of goods 19827909.28 15331219.12
Jiangxi Erye Medicine Marketing Co. Ltd. Purchase of goods 17959707.56 -
Sinopharm Holding Fujian Co. Ltd. Purchase of goods 16041870.46 9171420.33
Sinopharm Holding Lerentang Pharmaceutical
Co. Ltd. Purchase of goods 15458862.78 16967826.05
Sinopharm Group Zhijun(Shenzhen) Pingshan
Pharmaceutical Co. Ltd. Purchase of goods 14856080.60 5519530.03
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
139
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Pingdingshan Co. Ltd. Purchase of goods 14429720.75 14446097.55
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Purchase of goods 14255875.26 4670243.13
Chengdu Rongsheng Pharmacy Co. Ltd. Purchase of goods 13746664.10 8958139.00
Sinopharm Holding Jiangsu Co. Ltd. Purchase of goods 12867682.99 12276533.11
Sinopharm Holding Henan Co. Ltd. Purchase of goods 12814208.20 6575293.46
Shenzhen Wanwei Medicine Trading Co. Ltd. Purchase of goods 10936219.06 10428796.93
Sinopharm Holding Xiamen Co. Ltd. Purchase of goods 10273616.32 9246131.91
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. Purchase of goods 10193725.00 3614733.64
Sinopharm Holding Hubei Co. Ltd. Purchase of goods 9071305.78 -
Sinopharm Lerentang Shijiazhuang Medicine
Co. Ltd. Purchase of goods 8677802.26 10465965.70
Sinopharm Holding Shandong Co. Ltd. Purchase of goods 7306060.58 718163.95
Sinopharm Holding Ningxia Co. Ltd. Purchase of goods 7213084.95 6113483.50
Sinopharm Xingsha Pharmaceuticals (Xiamen)
Co. Ltd. Purchase of goods 7161067.43 3676515.83
Yichang Humanw ell Pharmaceutical Co. Ltd. Purchase of goods 6711635.43 4513583.78
Sinopharm Holding Changzhou Co. Ltd. Purchase of goods 6705005.60 2900395.11
China Otsuka Pharmaceutical Co. Ltd. Purchase of goods 6697508.52 241236.29
Shanghai Modern Pharmaceutical Co. Ltd.(Modern Pharmaceutical) Purchase of goods 6577712.26 142521.39
Sinopharm Yixin Pharmaceutical Co. Ltd. Purchase of goods 6463202.79 -
Sinopharm Holding Hunan Co. Ltd. Purchase of goods 5496202.17 22435971.65
Sichuan Hexin Pharmaceutical Co. Ltd. Purchase of goods 5339761.19 1094458.11
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. Purchase of goods 5189668.17 2003690.59
Suzhou Erye Pharmaceutical Limited Company Purchase of goods 4729210.71 9554764.03
Beijing Huasheng Pharmaceutical Biotechnology
Development Co. Ltd. Purchase of goods 4541480.00 -
Sinopharm Chuan Kang Pharmaceutical Co.Ltd. Purchase of goods 4521905.90 5794907.91
Sinopharm Holding Shanxi Lvliang Co. Ltd. Purchase of goods 4369021.12 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
140
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Changzhou Medical Logistics
Center Co. Ltd. Purchase of goods 3824818.27 4530675.45
Sinopharm Group Guorui Medicine Co. Ltd. Purchase of goods 3219200.90 3735052.72
Sinopharm Group Rongsheng Pharmaceutical
Co. Ltd. Purchase of goods 3158018.27 1574958.10
Sinopharm Holding Jinan Co. Ltd. Purchase of goods 3031490.28 3621583.69
Sinopharm Holding Tongliao Co. Ltd. Purchase of goods 2906482.17 584726.70
Sinopharm Holding Fuzhou Co. Ltd. Purchase of goods 2676398.89 4703935.11
Pudong New Area of Shanghai Pharmaceutical
Medicine Ltd. Purchase of goods 2652028.86 2298554.23
Sinopharm Holding Heilongjiang Co. Ltd. Purchase of goods 2603286.79 -
Shanghai Shangsheng Biological Products Co.Ltd. Purchase of goods 2478155.34 -
Sinopharm Holding Wuxi Co. Ltd. Purchase of goods 2456981.90 2453393.36
Sinopharm Lerentang Hebei Medical Instrument
Trade Co. Ltd. Purchase of goods 2326076.00 1889376.44
Sinopharm holdings Beijing huahong co. Ltd Purchase of goods 2143025.16 3550261.18
Sinopharm Holding Jinzhou Co. Ltd. Purchase of goods 2050823.42 2249516.98
Shanghai Chaohui Pharmaceutical Co. Ltd. Purchase of goods 1967905.09 330363.62
Guizhou Tongjitang Pharmaceutical Co. Ltd. Purchase of goods 1947122.98 1536282.82
Beijing Golden Elephant Fosun Pharmaceutical
Co. Ltd. Purchase of goods 1673805.68 1799439.15
Sinopharm Holding Beijing Kangchen Bio-
Pharmaceutical Co. Ltd. Purchase of goods 1672471.40 2240460.54
Jiangsu Fuxing Pharmaceutical Trading Co. Ltd Purchase of goods 1647132.50 -
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co. Ltd. Purchase of goods 1634592.42 1451522.48
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. Purchase of goods 1634371.49 615989.84
Shantou Jinshi Pow der Injection Co. Ltd. Purchase of goods 1575114.81 330119.93
Sinopharm Weiqida Pharmaceutical Co. Ltd. Purchase of goods 1396321.58 31965.52
Shenyang Hongqi Pharmaceutical Co. Ltd. Purchase of goods 1395942.72 1058670.33
Sinopharm Holding Zhihuiminsheng (Tianjin)
Pharmaceutical Co. Ltd. Purchase of goods 1374403.26 80410.58
China National Pharmaceutical Industry Co. Ltd. Purchase of goods 1237603.17 188275.39
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
141
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Hunan Dongting Pharmaceutical Co. Ltd. Purchase of goods 1221714.73 340441.92
Sinopharm Holding Yancheng Co. Ltd. Purchase of goods 1174557.52 1402672.48
Sinopharm Holding Changsha Co. Ltd. Purchase of goods 1166442.94 414897.11
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. Purchase of goods 1115619.67 921863.31
Sinopharm Fengliaoxing (Foshan) Medicines
Co. Ltd. Purchase of goods 1047564.70 -
Sinopharm Group Southw est Medicine Co. Ltd. Purchase of goods 942169.90 153389.66
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co. Ltd. Purchase of goods 904775.75 400421.76
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co. Ltd. Purchase of goods 853055.98 200544.82
Sinopharm Group Yibin Pharmaceuticals Co.Ltd. Purchase of goods 825452.16 121618.26
Sinopharm Holding Suzhou Co. Ltd. Purchase of goods 821818.78 6247553.79
Chengdu Institute of Biological Products Co.Ltd. Purchase of goods 821518.40 -
Sinopharm Holding Lianyungang Co. Ltd. Purchase of goods 815620.38 153111.27
Sinopharm Holding Hulun Buir Co. Ltd. Purchase of goods 813318.59 713341.49
Guangdong Medi-World Pharmaceutical Co. Ltd. Purchase of goods 778815.71 584223.16
Sinopharm Holding Dalian Co. Ltd. Purchase of goods 708136.87 769041.46
Sinopharm Holding Tianjin Co. Ltd. Purchase of goods 706163.71 1598345.37
Sinopharm Holding Biopharmaceutical (Tianjin)
Co. Ltd. Purchase of goods 627257.64 63648.72
Sinopharm Holding Putian Co. Ltd. Purchase of goods 602182.39 895532.89
Sinopharm Holding Anhui Co. Ltd. Purchase of goods 558299.15 539726.50
Sinopharm Holding Hainan Co. Ltd. Purchase of goods 556396.59 97450.60
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co. Ltd. Purchase of goods 551162.81 763625.20
Anhui Jingfang Pharmaceutical Co. Ltd. Purchase of goods 537444.48 (13269.30)
Sinopharm Group Guizhou Blood Products Co.Ltd. Purchase of goods 536000.00 -
Shanghai Merro Pharmaceutical Co. Ltd. Purchase of goods 513712.42 2016321.47
Sinopharm Holding Quanzhou Co. Ltd. Purchase of goods 509096.37 509662.25
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
142
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Guilin South pharmaceutical Co. Ltd. Purchase of goods 491705.68 -
Shanghai Transfusion Technology Co. Ltd. Purchase of goods 444825.76 -
Sinopharm Holding Yangzhou Medical Treatment
Equipment Co. Ltd. Purchase of goods 434284.50 -
Sinopharm Holding Zhejiang Co. Ltd. Purchase of goods 383036.87 289516.54
Wuhan Zhonglian Pharmaceutical Group Co.Ltd. Purchase of goods 357980.82 435887.39
Fujian Chentian Jinling Pharmaceutical Co. Ltd. Purchase of goods 328557.99 -
Sinopharm Shantou Jinshi Pharmaceutical Co.Ltd. Purchase of goods 257629.73 109039.96
Sinopharm Wuhan blood products Co. Ltd. Purchase of goods 248000.00 -
Sinopharm Holding Shanxi Zhidekang Medicine
Co. Ltd. Purchase of goods 189064.65 -
Sinopharm Holding Dalian Hecheng Co. Ltd. Purchase of goods 175327.42 262027.99
Sinopharm Holding Yangzhou Biological
Products Co. Ltd. Purchase of goods 166268.35 444000.00
Foshan Fengliaoxing Pharmaceutical Co. Ltd. Purchase of goods 160792.59 2015702.90
Sinopharm Holding (Hubei) Base Pharmaceutical
Co. Ltd. Purchase of goods 152076.28 -
Sinopharm Holding Dezhou Co. Ltd. Purchase of goods 148796.05 228731.52
Sinopharm Holding Hunan Pharmaceutical
Development Co. Ltd. Purchase of goods 142539.15 -
Jiangsu Huanghe Pharmaceutical Co. Ltd. Purchase of goods 133968.48 -
Sinopharm Holding Bayannaoer Co. Ltd. Purchase of goods 120003.15 -
China Medical Equipment Shandong Co. Ltd. Purchase of goods 116013.65 -
Sinopharm Group Shanxi Co. Ltd. Purchase of goods 111864.77 87596.90
Foshan Dezhong Pharmaceutical Co. Ltd. Purchase of goods 95965.53 -
Sinopharm Liaoning Medical Equipment Co. Ltd. Purchase of goods 90783.71 -
Sinopharm Xinjiang Pharmaceutical Co. Ltd. Purchase of goods 73542.96 12.82
Sinopharm Holding Fuzhou Medical Devices Co.Ltd. Purchase of goods 40707.96 -
Sinopharm Holding Sanyi Medicine (Wuhu) Co.Ltd. Purchase of goods 39203.47 58952.78
The Fourth Pharmaceutical Co. Ltd. of
Zhonglian Group Purchase of goods 35353.29 24295.86
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
143
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Taizhou Co. Ltd. Purchase of goods 34438.88 73304.23
Sichuan Jiangyouzhongbafuzi Technology
Development Co. Ltd. Purchase of goods 29090.91 49297.30
Sinopharm Holding Rizhao Co. Ltd. Purchase of goods 19834.99 586905.03
Sinopharm Holding Nanjing Wende
Pharmaceutical Co.Ltd. Purchase of goods 19401.89 27310.34
Guoyao Lerentang Hebei Medical Device Supply
Chain Management Co. Ltd. Purchase of goods 17131.04 -
Sinopharm Holding Ulanqab Co. Ltd. Purchase of goods 17027.43 308191.79
Sinopharm Holding Shanxi Mingdikang Medicine
Co. Ltd. Purchase of goods 14185.41 -
Sinopharm Holding Jilin Co. Ltd. Purchase of goods 13152.13 -
Sinopharm Group Medicine Logistic Co. Ltd. Purchase of goods 10445.10 -
Sinopharm Holding Zhangzhou Pharmaceutical
Co. Ltd. Purchase of goods 10137.93 -
Sinopharm Holding Shanxi Jincheng Co. Ltd. Purchase of goods 8408.74 11481.46
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co. Ltd. Purchase of goods 6891.48 335484.62
Lanzhou Institute of Biological Products Co. Ltd. Purchase of goods - 52860000.00
China National Pharmaceutical Foreign Trade
Corporation Purchase of goods - 13645110.09
Sinopharm Holding Shanxi Instrument Branch
Co. Ltd. Purchase of goods - 7410730.23
Shanghai Shyndec Pharmaceutical Marketing
Co. Ltd. Purchase of goods - 995510.64
Sinopharm Lerentang Qinhuangdao Medicine
Co. Ltd. Purchase of goods - 193277.45
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co. Ltd. Purchase of goods - 173484.94
Sinopharm Holding Guizhou Co. Ltd. Purchase of goods - 73729.75
Chongqing Haisiman Pharmaceutical Co. Ltd. Purchase of goods - 33895.38
Sinopharm Lerentang Tangshan Medicine Co.Ltd. Purchase of goods - 20598.94
Sinopharm Holding Nanping Newforce Co. Ltd. Purchase of goods - 15315.32
Sinopharm Zhuhai Medical Instrument Co. Ltd. Purchase of goods - 9564.95
Sinopharm Hebei Medical Instrument Co. Ltd. Purchase of goods - 6533.84
Beijing Huamiao Pharmaceutical Co. Ltd. Purchase of goods - 2649.79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
144
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
Related party Type of ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Group Guangdong Medicine Device
Co. Ltd. Purchase of goods - 1770.86
Sinopharm Holding Jinhua Co. Ltd. Purchase of goods - 38.80
Sinopharm Holding Ordos Co. Ltd. Purchase of goods - (10667.01)
Sinopharm Holding Yongzhou Co. Ltd. Purchase of goods (49.36) 38141.67
Sinopharm Prospect Dentech (Beijing) Co. Ltd. Purchase of goods (63.80) 4073.48
Sinopharm Group Chengdu Xinlibang Biological
Products Co. Ltd. Purchase of goods (9500.00) -
Shandong Lu Ya Pharmaceutical Co. Ltd. Purchase of goods (23551.03) 2909280.05
Huayi Pharmaceutical Co. Ltd. Purchase of goods (191940.52) 695732.52
Sinopharm Group Medicine Logistic Co. Ltd.Storage and
transport
cost;Consulting
service fee
7275965.45 6666668.71
Sinopharm Health Online Co. Ltd.
Consulting service
fee 6298404.97 6085895.22
Shanghai Beiyi Guoda pharmaceutical Co. Ltd.
Consulting service
fee 1229716.93 1263962.22
Shanghai Tongyu Information Technology Co.Ltd.Information
system access fee 142764.15 98113.21
Pingdingshan Pusheng Pharmaceutical Co. Ltd. Others 109458.10 -
China National Pharmaceutical Logistics Co.
Ltd.Storage and
transport cost 54651.59 44030.65
Sinopharm Holding Tianjin Binhai
Pharmaceutical Co. Ltd.Information
system access fee - 7075.47
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
145
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
For the six months ended 30
June 2019
For the six months
ended 30 June 2018
Sinopharm Group Sale of goods 113329103.30 54514170.65
Foshan Chancheng Pharmaceutical Co. Ltd. Sale of goods 59004606.02 42375781.14
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. Sale of goods 55645701.04 49727338.63
Sinopharm Holding Hainan Co. Ltd. Sale of goods 48570645.00 29338160.25
Sinopharm Holding Hainan Hongyi Co. Ltd. Sale of goods 17357873.16 24127524.50
Sinopharm Holding Wenzhou Co. Ltd. Sale of goods 14754017.76 10830194.79
Sinopharm holdings Beijing huahong co. Ltd Sale of goods 13727246.49 4816641.92
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. Sale of goods 12079800.79
7489471.75
Sinopharm Holding Sub Marketing Center Co.Ltd. Sale of goods 12022683.32
8970804.72
Beijing Golden Elephant Fosun
Pharmaceutical Co. Ltd. Sale of goods 11241528.41
9738902.57
Sinopharm Holding Beijing Co. Ltd. Sale of goods 10806898.05 5770691.44
Shenzhen Heng Sheng Hosital Sale of goods 10482252.70 8215885.93
Sinopharm Le-Ren-Tang Medicine Co. Ltd. Sale of goods 9207801.66 7728482.84
Pudong New Area of Shanghai Pharmaceutical
Medicine Ltd. Sale of goods 9123984.75
10524551.98
Sinopharm Holding Henan Co. Ltd. Sale of goods 8408084.97 8736054.45
Sinopharm Sichuan Pharmaceutical Co. Ltd. Sale of goods 7749468.18 9061104.38
Sinopharm Holding Nantong Co. Ltd. Sale of goods 7649412.43 8717338.95
Sinopharm Holding Shandong Co. Ltd. Sale of goods 7547654.37 4577546.05
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. Sale of goods 7346892.05 6837559.00
Foshan Chancheng District Central Hospital Sale of goods 5456346.95 4504644.96
Sinopharm Holding Hubei Co. Ltd. Sale of goods 5366299.13 3772162.27
Sinopharm Holding Shanxi Co. Ltd. Sale of goods 5246365.87 917123.69
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. Sale of goods 4369980.09 673847.93
Sinopharm Holding Yangzhou Co. Ltd. Sale of goods 4293371.83 5144530.81
Shanghai Merro Pharmaceutical Co. Ltd. Sale of goods 4068584.00 1223626.19
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. Sale of goods 3423834.39 17376808.71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
146
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 ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Yunnan Co. Ltd. Sale of goods 3291886.51 5713012.18
Foshan Chanyixing Medicine Development Co
Ltd. Sale of goods 3252324.63 1450198.02
Sinopharm Holding Anhui Co. Ltd. Sale of goods 2691014.38 1168187.29
Sinopharm Holding Jinzhou Co. Ltd. Sale of goods 2509334.67 -
Sinopharm Holding Xuzhou Co. Ltd. Sale of goods 2496791.90 -
Sinopharm Holding Tianjin Co. Ltd. Sale of goods 2043046.86 1029758.40
China National Medicines Co. Ltd. Sale of goods 1932350.56 1740716.75
Sinopharm Holding Shanxi Co. Ltd. Sale of goods 1927565.82 2577305.96
Sinopharm Holding Jilin Co. Ltd. Sale of goods 1861781.97 1172196.27
Sinopharm Holding Dalian Co. Ltd. Sale of goods 1833913.00 1263047.36
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. Sale of goods 1828562.25 4409528.78
Sinopharm Holding Fujian Co. Ltd. Sale of goods 1731691.96 979220.98
Sinopharm Group Southw est Medicine Co. Ltd. Sale of goods 1580662.42 1006172.43
Sinopharm Holding Hunan Co. Ltd. Sale of goods 1476158.08 1308950.82
Sinopharm Holding Anhui Pharmaceutical Co.Ltd. Sale of goods 1436139.10 -
Shanghai Liyi Drug Store Co.Ltd Sale of goods 1432059.22 -
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co. Ltd. Sale of goods 1283881.89 -
Yuxi Sinopharm Medicine Co. Ltd. Sale of goods 956668.77 625927.21
Sinopharm Holding Ningxia Co. Ltd. Sale of goods 772293.60 240539.93
Sinopharm Holding Dalian Hecheng Co. Ltd. Sale of goods 743390.17 301982.46
Sinopharm Holding Shenyang Co. Ltd. Sale of goods 608363.96 103846.57
Sinopharm Holding Gansu Co. Ltd. Sale of goods 505887.62 1353030.00
Sinopharm Holding Wuxi Co. Ltd. Sale of goods 484790.17 349203.27
Shanghai Guoda Lingyun Pharmacy Co. Ltd. Sale of goods 425714.65 540476.78
Sinopharm Holding Wuhu Co. Ltd. Sale of goods 419826.51 127195.59
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
147
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 ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Jiaozuo Co. Ltd. Sale of goods 406784.27 -
Sinopharm Holding Yancheng Co. Ltd. Sale of goods 382851.04 -
Sinopharm Holding Honghe Co. Ltd. Sale of goods 377186.11 9595.25
Sinopharm Holding Tianjin North Medicine Co.Ltd. Sale of goods 363748.93 58775.86
Sinopharm Holding Inner Mongolia Co. Ltd. Sale of goods 326327.82 239130.68
Sinopharm Group Guangdong Medicine Device
Co. Ltd. Sale of goods 296825.53 -
Sinopharm Group Shanxi Co. Ltd. Sale of goods 266895.84 486510.78
Sinopharm Holding Chengdu Co. Ltd. Sale of goods 252754.20 215685.18
Sinopharm Holding Qinghai Co. Ltd. Sale of goods 250674.21 168653.68
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. Sale of goods 225250.43 448887.64
Sinopharm Holding Tongren Co. Ltd. Sale of goods 197968.78 21011.20
Sinopharm Holding (Hubei) Hankou Pharmacy
Co. Ltd. Sale of goods 195295.22 -
Nanchang Sinopharm Holding Guoyaotang
Pharmacy Co. Ltd. Sale of goods 173403.11 -
Sinopharm Holding Guizhou Co. Ltd. Sale of goods 158213.27 1042466.52
Sinopharm Holding Chongqing Taimin
Pharmaceutical Co. Ltd. Sale of goods 155771.69 -
Sinopharm Holding Zunyi Co. Ltd. Sale of goods 146542.78 35054.94
Sinopharm Holding Taizhou Co. Ltd. Sale of goods 141236.61 -
Shenzhen Qianda Medical Beauty Clinic Sale of goods 140970.86 -
Sinopharm Holding Chongqing Co. Ltd. Sale of goods 138748.70 145147.69
Sinopharm Holding Hubei Hongyuan Co. Ltd. Sale of goods 132556.02 97162.40
Sinopharm Holding Fuzhou Co. Ltd. Sale of goods 131753.26 6927.14
Sinopharm Group Fengliaoxing Pharmacy
(Foshan) Co. Ltd. Sale of goods 128687.69 -
Sinopharm Holding Jiangxi Co. Ltd. Sale of goods 123135.25 371671.87
Sinopharm Medical Instrument Guizhou Qiannan
Co. Ltd. Sale of goods 114833.43 12712.58
Sinopharm Fengliaoxing Medical Hospital Co.Ltd. Sale of goods 101588.59 16804.60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
148
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 ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Changzhou Medical Logistics
Center Co. Ltd. Sale of goods 86668.69 175352.41
Sinopharm Holding Jiangsu Co. Ltd. Sale of goods 76013.68 -
Sinopharm Guangdong Medical Examination
Co. Ltd. Sale of goods 73203.54 -
Sinopharm Holding Guizhou Medical Equiment
Co. Ltd. Sale of goods 70073.94 133404.19
Sinopharm Group Guangxi Medical Equipment
Co. Ltd. Sale of goods 66013.12 -
Shanghai Compound Technology Medical
Devices Co. Ltd. Sale of goods 59482.76 -
Sinopharm Medical Instrument Foshan Co. Ltd. Sale of goods 58330.19 -
Sinopharm Guanai Yuankang Pharmacy
(Haikou) Co. Ltd. Sale of goods 55763.79 -
Sinopharm Holding Changzhou Co. Ltd. Sale of goods 50185.70 435840.01
Sinopharm Holding Ulanqab Co. Ltd. Sale of goods 47434.77 175775.17
Sinopharm Holding Longyan Co. Ltd. Sale of goods 44963.97 58172.99
Sinopharm Holding Chuxiong Co. Ltd. Sale of goods 41712.99 -
Sinopharm Holding Jilin Chain Store Co. Ltd. Sale of goods 38234.48 91435.98
Sinopharm Holding Deyang Co. Ltd. Sale of goods 36771.21 -
Dongyuan accord pharmaceutical chain Co. Ltd. Sale of goods 30868.27 39393.65
Sinopharm Holding Anshun Co. Ltd. Sale of goods 21688.95 -
Sinopharm Nanping Medical Instrument Co. Ltd. Sale of goods 19993.91 -
Sinopharm Holding Ningde Co. Ltd. Sale of goods 19818.67 23864.90
Sinopharm Holding Liaocheng Co. Ltd. Sale of goods 15779.79 15596.82
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Sale of goods 14949.89 7617.49
Sinopharm Zhuhai Medical Instrument Co. Ltd. Sale of goods 13939.15 9119.70
Sinopharm Holding Shanxi Jincheng Co. Ltd. Sale of goods 11204.59 -
Sinopharm Holding Siping Co. Ltd. Sale of goods 9998.28 26548.13
Sinopharm Holding Hongrun Medical Business
Service (Shanghai) Co. Ltd. Sale of goods 9884.46 19240.32
China National Scientif ic Instruments & Materials
Imp/Exp Shenzhen Co. Ltd. Sale of goods 6320.71 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
149
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 ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Group Fengliaoxing Traditional
Chinese Medical Center Foshan Nanhai Co. Ltd. Sale of goods 6233.90 -
Sinopharm Jienuo Medical Treatment Sevice
Guangdong Co. Ltd. Sale of goods 3590.16 -
Guoyao Lerentang Shijiazhuang Medical
Management Co. Ltd. Sale of goods 2663.79 -
Sinopharm Holding Zhejiang Co. Ltd. Sale of goods - 921282.05
Hubei Pharmaceutical Group Co. Ltd. Sale of goods - 853130.68
Sinopharm Holding Heilongjiang Co. Ltd. Sale of goods - 324789.98
Sinopharm Holding Yongzhou Co. Ltd. Sale of goods - 203544.77
Sinopharm Holding Huaian Co. Ltd. Sale of goods - 128653.00
Sinopharm Holding Suzhou Co. Ltd. Sale of goods - 103840.63
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 Nanchang Chain Store Co.Ltd. Sale of goods - 54017.59
Sinopharm Holding Xinxiang Co. Ltd. Sale of goods - 34164.62
Sinopharm Holding Huangshi Co. Ltd. Sale of goods - 34025.78
Sinopharm Holding Jining Co. Ltd. Sale of goods - 19035.54
Fujian Sinopharm Medical Instrument Co. Ltd. Sale of goods - 13988.00
Sinopharm Lerentang Baoding Medicine Co.Ltd. Sale of goods - 12991.45
Sinopharm Lerentang Hengshui Medicine Co.Ltd. Sale of goods - 12108.38
Sinopharm Holding Hulun Buir Co. Ltd. Sale of goods - 4570.00
Sinopharm Holding Putian Co. Ltd. Sale of goods (33809.91) 64610.68
Sinopharm Holding Quanzhou Co. Ltd. Sale of goods (87055.63) -
China National Medicines Co. Ltd.
Transport and
storage income 4430727.40 3580698.30
Sinopharm Group Medicine Logistic Co. Ltd.Transport and
storage income 401376.93 294804.62
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Meal fee 308882.00 294180.00
Sinopharm Group Zhijun(Shenzhen) Pingshan
Pharmaceutical Co. Ltd.Transport and
storage income 123995.03 122242.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
150
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 ransaction
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Group Southw est Medicine Co. Ltd.Transport and
storage income 82001.72 -
Sinopharm Holding Biopharmaceutical (Tianjin)
Co. Ltd.
Consulting service
income 2792.45 -
Sinopharm Holding Shanxi Co. Ltd.
Consulting service
income 1688.12 9433.96
Guizhou Tongjitang Pharmaceutical Co. Ltd.
Consulting service
income - 8285.71
Winteam Pharmaceutical Group Ltd.
Consulting service
income - 2023.58
Sinopharm Holding Shanxi Instrument Branch
Co. Ltd. Other income - 1132.08
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
151
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
For the six months
ended 30 June 2019
Income from leases
For the six months
ended 30 June 2018
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Building 957142.86 351428.58
Shenzhen Zhijun Pharmaceutical Trade Co.Ltd. Building 285714.30 285714.30
China National Medicines Co. Ltd. Building 24000.00 45714.29
(b) As the lessee
Type of assets
under leases
Expense from leases
For the six months
ended 30 June 2019
Expense from leases
For the six months
ended 30 June 2018
Beijing Golden Elephant Fosun Pharmaceutical
Co. Ltd.
Building 6670660.92 5461904.76
Sinopharm Group Medicine Logistic Co. Ltd. Equipment 3750000.00 3750000.00
Sinopharm Group Shanghai Co. Ltd. Building 3721698.57 3790426.48
Sinopharm Group Medicine Logistic Co. Ltd. Building 3539999.98 3539999.98
Lerentang Investment Group Co. Ltd. Building 3354162.22 2277892.99
Pingdingshan Pusheng Pharmaceutical Co.Ltd.
Building 2405696.37 1277732.57
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd.
Building 2234982.50 3914124.76
Sinopharm Holding Yangzhou Co. Ltd. Building 1902091.52 1862857.14
Hunan Minshengtang Investment Co. Ltd. Building 1838716.70 2027673.99
Linyi Medical Group Co. Ltd. Building 1482764.04 2036376.45
Guangdong Jiyuantang Development Co. Ltd. Building 1088752.31 1192864.11
Nanjing Yuanguang Trading Co. Ltd. Building 855468.84 866794.89
Shaoguan Wujiang District Muyang Medicine
Information Consultant Co. Ltd.
Building 476713.98 470161.86
Taishan Xiangranhui Trade Co. Ltd Building 456054.17 451963.88
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co. Ltd.
Building 277303.54 184253.18
Sinopharm Group Building 267553.06 259915.02
Wang Yang Building 262857.12 262857.12
Sinopharm Holding Beijing Co. Ltd. Building 260870.74 235714.29
Shenyang Pharmaceutical Co. Ltd. Building 253564.15 3548219.75
Zhang Zhenfang Building 214062.49 402499.98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
152
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
Expense from leases
For the six months
ended 30 June 2019
Expense from leases
For the six months
ended 30 June 2018
Gu Jinhua Building 207084.48 178800.00
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co. Ltd. Building 173068.27 173523.81
Hangzhou Xihu Business Group
Corporation Building 145986.38 132823.81
China National Medicines Co. Ltd. Building 145865.91 153750.00
Sinopharm Xinjiang Pharmaceutical Co.Ltd. Building 136369.86 130208.30
Gu Haiqun Building 108277.61 0.00
Shenzhen Jiufeng Investment Co. Ltd. Building 100414.19 89260.15
Taishan Qunkang Pharmacy Co. Ltd. Building 70864.95 74170.32
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co. Ltd. Building 47990.56 236051.50
Sinopharm Holding Fujian Co. Ltd. Building 6571.39 6571.38
Sinopharm Holding Shanxi Co. Ltd. Building 0.00 234017.16
Xinjiang Baitong Property Service Co. Ltd. Building 0.00 44581.16
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co. Ltd. Park 0.00 35428.57
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
153
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. 43428873.45 22 April 2019 31 May 2019
Discount on commercial
acceptance notes
Group Financial Co. 40197120.84 17 April 2019 17 July 2019 Short-term borrowings
Group Financial Co. 38384946.67 24 January 2019 28 February 2019
Discount on commercial
acceptance notes
Group Financial Co. 37311327.27 22 May 2019 22 August 2019 Short-term borrowings
Group Financial Co. 33815106.08 18 March 2019 30 April 2019
Discount on commercial
acceptance notes
CNPGC 31600000.00 24 May 2017 24 May 2020 Long-term borrow ings
Group Financial Co. 27852641.75 30 January 2019 30 April 2019
Discount on commercial
acceptance notes
Group Financial Co. 27408812.83 21 May 2019 30 June 2019
Discount on commercial
acceptance notes
Group Financial Co. 23148716.55 18 March 2019 25 May 2019
Discount on commercial
acceptance notes
Group Financial Co. 21601820.90 18 March 2019 31 May 2019
Discount on commercial
acceptance notes
Group Financial Co. 20902069.23 30 January 2019 28 March 2019
Discount on commercial
acceptance notes
Group Financial Co. 18680669.14 21 May 2019 31 July 2019
Discount on commercial
acceptance notes
Group Financial Co. 18309493.19 30 January 2019 29 March 2019
Discount on commercial
acceptance notes
Group Financial Co. 14997301.99 30 January 2019 09 May 2019
Discount on commercial
acceptance notes
Group Financial Co. 14442689.98 30 January 2019 25 March 2019
Discount on commercial
acceptance notes
Group Financial Co. 11932011.37 30 January 2019 26 April 2019
Discount on commercial
acceptance notes
Group Financial Co. 9827139.59 22 April 2019 09 August 2019
Discount on commercial
acceptance notes
Group Financial Co. 9776155.18 22 April 2019 25 June 2019
Discount on commercial
acceptance notes
Group Financial Co. 2227866.60 30 January 2019 28 June 2019
Discount on commercial
acceptance notes
Group Financial Co. 2115440.26 22 April 2019
26 September
2019
Discount on commercial
acceptance notes
Group Financial Co. 2037126.50 30 January 2019 28 May 2019
Discount on commercial
acceptance notes
Group Financial Co. 1628019.46 18 March 2019 27 August 2019
Discount on commercial
acceptance notes
Group Financial Co. 1188450.22 30 January 2019 26 June 2019
Discount on commercial
acceptance notes
Group Financial Co. 859454.60 21 May 2019 26 August 2019 Discount on commercial
acceptance notes
Group Financial Co. 798997.80 22 April 2019 26 July 2019 Discount on commercial
acceptance notes
Group Financial Co. 729054.60 18 March 2019 26 June 2019 Discount on commercial
acceptance notes
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
154
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(4) Related party asset transfer
Ty pe of transaction For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Holding Tianjin Binhai Pharmaceutical Co.Ltd.Purchase of
construction in progress - 21794.87
(5) Other related party transactions
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
(a) Remuneration for key management personnel 3843750.00 2981250.00
(b) Interest expense
Related party Category
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Group Financial Co.Payment of notes
discount interest 2615234.17 3411652.84
China National Pharmaceutical Group
Corporation
Payment of entrusted loan
interest 641469.02 641469.02
Group Financial Co. Payment of loan interest 473516.87 -
Sinopharm Holding Financing Lease
Co. Ltd.
Payment of f inancing
lease interest 177850.56 623402.17
Sinopharm Holding Financing Lease
Co. Ltd.
Payment of non-recourse
receivable factored
interest expense 63750.00 -
Guorun Medical Supply Chain Serv ices
(Shanghai) Co. Ltd.Pay ment of related parties
loan interest - 1778.67
3971820.62 4678302.70
(c) Interest income
Related party Category
For the six months
ended 30 June 2019
For the six months
ended 30 June 2018
Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co. Ltd. Entrusted loan interest 1669601.71 1549650.99
Group Financial Co. Deposit interest 145659.27 387479.46
1815260.98 1937130.45
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
155
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties
Accounts receivable 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Foshan Chancheng Pharmaceutical Co.
Ltd. 45958521.41 276165.34 39888094.43 235040.74
Sinopharm Group 40401102.06 - 32263115.51 -
Sinopharm Holding Hainan Co. Ltd. 9869915.19 - 6607589.69 -
Shanghai Beiyi Guoda pharmaceutical Co.Ltd. 9772467.43 - 11966548.05 -
Sinopharm Health Online Co. Ltd. 7991221.08 - 6543624.21 -
Sinopharm Holding Sub Marketing Center
Co. Ltd. 4943166.98 - - -
Sinopharm holdings Beijing huahong co.Ltd 4491263.20 - 4009562.41 -
Shenzhen Heng Sheng Hosital 4350627.94 - 2674948.35 -
Beijing Golden Elephant Fosun
Pharmaceutical Co. Ltd. 4350308.37 - 5372873.84 -
Pudong New Area of Shanghai
Pharmaceutical Medicine Ltd. 4175729.23 - 3839268.45 -
Sinopharm Le-Ren-Tang Medicine Co. Ltd. 4123874.57 - 3143231.13 -
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. 4092864.80 - 3986543.21 -
Sinopharm Holding Beijing Co. Ltd. 3345842.50 - 888815.16 -
Sinopharm Holding Hainan Hongyi Co. Ltd. 3314718.28 - 5370089.88 -
Foshan Chancheng District Central Hospital 3160081.13 44928.58 2440447.52 12753.61
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. 2539969.75 - 986526.05 -
Sinopharm Holding Henan Co. Ltd. 2447128.74 - 1036327.62 -
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. 2196272.00 - 1178605.80 -
Sinopharm Holding Shandong Co. Ltd. 2037494.51 - 210969.36 -
Foshan Chanyixing Medicine Development
Co Ltd. 1865947.36 6667.32 1743775.57 9377.72
Sinopharm Holding Wenzhou Co. Ltd. 1710031.20 - 1261643.94 -
China National Medicines Co. Ltd. 1604941.84 - 1454237.32 -
Sinopharm Sichuan Pharmaceutical Co.Ltd. 1424513.17 - 1081909.20 -
Sinopharm Holding Yangzhou Co. Ltd. 1366338.68 - 540349.73 -
Shanghai Merro Pharmaceutical Co. Ltd. 1348428.86 - 884486.53 -
Sinopharm Holding Xuzhou Co. Ltd. 1272626.48 - 34941.30 -
Sinopharm Holding Anhui Pharmaceutical
Co. Ltd. 1095210.16 - - -
Sinopharm Holding Shanxi Co. Ltd. 1044424.48 - 1028660.04 -
Sinopharm Holding Yunnan Co. Ltd. 852406.76 - 27737.44 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
156
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Accounts receivable (Continued) 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Sinopharm Holding Tianjin Co. Ltd. 736401.04 - 200407.20 -
Sinopharm Holding Jilin Co. Ltd. 638937.96 - 1499742.50 -
Sinopharm Holding Nantong Co. Ltd. 637245.24 - 66541.32 -
Sinopharm Holding Fujian Co. Ltd. 602589.12 - - -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 599179.84 - 772488.31 -
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. 596543.86 - 164566.12 -
Sinopharm Holding Anhui Co. Ltd. 583647.00 - 221425.72 -
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. 552496.16 - 1704316.57 -
Sinopharm Holding Hunan Co. Ltd. 537470.30 - 569264.26 -
Sinopharm Holding Hubei Co. Ltd. 457991.94 - 68314.16 -
Sinopharm Holding Shanxi Co. Ltd. 368536.28 - 68361.75 -
Yuxi Sinopharm Medicine Co. Ltd. 365065.92 - 182532.96 -
Sinopharm Holding Dalian Co. Ltd. 357662.16 - 144334.03 -
Shanghai Guoda Lingyun Pharmacy Co.Ltd. 357524.59 - 17535.13 -
Sinopharm Holding Dalian Hecheng Co.Ltd. 286270.00 - 126684.00 -
Sinopharm Holding Chengdu Co. Ltd. 280800.00 - - -
Sinopharm Group Southw est Medicine Co.Ltd. 248554.12 - 5090863.70 -
Sinopharm Group Medicine Logistic Co.Ltd. 209724.91 - 139697.93 -
Sinopharm Holding (Hubei) Hankou
Pharmacy Co. Ltd. 201154.08 - - -
Sinopharm Jienuo Medical Treatment
Sevice Guangdong Co. Ltd. 124568.18 - 120403.60 -
Sinopharm Holding Qinghai Co. Ltd. 110520.40 - 96319.48 -
Sinopharm Holding Yancheng Co. Ltd. 108561.80 - - -
Sinopharm Holding Ningxia Co. Ltd. 100896.00 - - -
Sinopharm Holding Gansu Co. Ltd. 94147.34 - 176910.34 -
Sinopharm Holding Shenyang Co. Ltd. 84504.52 - 123126.34 -
Sinopharm Holding Tianjin North Medicine
Co. Ltd. 78465.54 - 91390.41 -
Sinopharm Group Fengliaoxing Pharmacy
(Foshan) Co. Ltd. 69005.33 453.65 - -
Sinopharm Holding Inner Mongolia Co. Ltd. 63160.96 - 90159.36 -
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co. Ltd. 59076.00 - 39618.00 -
Sinopharm Holding Honghe Co. Ltd. 58831.14 - - -
Sinopharm Holding Heilongjiang Co. Ltd. 50000.00 50000.00 50000.00 -
Sinopharm Guangdong Medical
Examination Co. Ltd. 41360.00 - - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
157
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Accounts receivable (Continued) 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Sinopharm Holding Jiangxi Co. Ltd. 22606.08 - - -
Shanghai Liyi Drug Store Co.Ltd 19278.81 - 76366.48 -
Sinopharm Holding Zunyi Co. Ltd. 18358.20 - - -
Sinopharm Holding Changzhou Co. Ltd. 15557.40 - - -
Sinopharm Holding Fuzhou Co. Ltd. 15195.60 - - -
Sinopharm Holding Chuxiong Co. Ltd. 13132.80 - - -
Sinopharm Fengliaoxing Medical Hospital
Co. Ltd. 12020.26 74.54 16836.25 136.35
Nanchang Sinopharm Holding Guoyaotang
Pharmacy Co. Ltd. 11448.00 - - -
Sinopharm Holding Guizhou Co. Ltd. 8307.00 - 16026.00 -
Sinopharm Holding Wuxi Co. Ltd. 6818.00 - 157614.80 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. 6669.00 - 1070.60 -
Sinopharm Holding Hongrun Medical
Business Service (Shanghai) Co. Ltd. 5900.96 - 1300.54 -
Sinopharm Holding Ulanqab Co. Ltd. 3933.10 - - -
Sinopharm Guanai Yuankang Pharmacy
(Haikou) Co. Ltd. 3366.10 - 1488.00 -
Sinopharm Group Fengliaoxing Traditional
Chinese Medical Center Foshan Nanhai
Co. Ltd. 1526.02 4.78 695.70 0.94
Sinopharm Group Shanxi Co. Ltd. 1.60 - 58518.00 -
Sinopharm Xinxiang Chain Store Co. Ltd. - - 2064.20 -
Sinopharm Holding Changzhou Medical
Logistics Center Co. Ltd.- - 144600.00 -
Sinopharm Medical Instrument Foshan Co.Ltd.- - 11904.00 -
Hubei Pharmaceutical Group Co. Ltd. - - 61959.91 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
158
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Notes receivable 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Holding Financing Lease Co.Ltd. 13210232.00 - 202456075.93 -
Sinopharm Holding Hainan Co. Ltd. 3896828.51 - 12035409.02 -
Sinopharm Le-Ren-Tang Medicine Co.Ltd. 2500000.00 - 1148409.56 -
Sinopharm Holding Hainan Hongyi Co.Ltd. 1528421.30 - 10234483.82 -
Sinopharm Holding Hubei Co. Ltd. 1008876.24 - - -
Sinopharm Holding Nantong Co. Ltd. 750000.00 - - -
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. 472387.20 - - -
Sinopharm Holding Gansu Co. Ltd. 239670.00 - 163198.80 -
Sinopharm Holding Shanxi Co. Ltd. - - 1077861.97 -
Sinopharm Holding Shenyang Co. Ltd. - - 422520.00 -
Sinopharm Holding Shanxi Co. Ltd. - - 359459.04 -
Sinopharm Holding Sub Marketing Center
Co. Ltd. - - 3144392.00 -
Sinopharm Holding Henan Co. Ltd. - - 1032584.76 -
Sinopharm Holding Anhui Co. Ltd. - - 390062.21 -
Sinopharm Holding Shandong Co. Ltd. - - 1241661.12 -
Sinopharm Holding Fujian Co. Ltd. - - 400000.00 -
Sinopharm Holding Ningxia Co. Ltd. - - 176568.00 -
Sinopharm Holding Jilin Co. Ltd. - - 274058.00 -
Sinopharm Holding Chengdu Co. Ltd. - - 201332.00 -
Other receivables 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co. Ltd. 44000000.00 2200000.00 44000000.00 -
Sinopharm Group Medicine Logistic Co.Ltd. 6226734.36 - 2494174.31 -
Shyndec Pharmaceutical 5624940.00 - 7913430.00 -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 385381.65 - 100000.00 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. 234693.89 600.00 109774.26 600.00
Sinopharm Lerentang Hebei Medical
Instrument Trade Co. Ltd. 48493.16 - 48493.16 -
Sinopharm Holding Tianjin Co. Ltd. 41100.00 - - -
Sinopharm Group 13416.00 - - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
159
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Other receivables (Continued) 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Holding Sub Marketing Center
Co. Ltd. 10990.00 - - -
Wuhan Zhonglian Pharmaceutical Group
Co. Ltd. 5000.00 1000.00 5000.00 1000.00
Sinopharm Holding Fujian Co. Ltd. 3476.39 - 5476.34 -
Sinopharm Holding Jiaozuo Co. Ltd. - - 30171.00 -
Henan Wanxitang Pharmacy Co. Ltd. - - 1098981.30 -
Sinopharm Health Online Co. Ltd. - - 81755.36 -
Sinopharm Group Medicine Logistic Co.Ltd. Guangzhou Branch - - 18650.00 -
Advances to suppliers 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 1628396.28 - 1643251.42 -
Chongqing Yaoyou Pharmaceutical Co.
Ltd. 1097717.47 - 931286.48 -
Sinopharm Group 760415.14 - 2308319.33 -
Guizhou Tongjitang Pharmaceutical Co.Ltd. 446109.64 - 227175.58 -
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co. Ltd. 242701.50 - - -
Sinopharm Holding Xinjiang Xinte
Karamay Pharmaceutical Co. Ltd. 230666.79 - - -
Sichuan Hexin Pharmaceutical Co. Ltd. 174960.00 - - -
Anhui Jingfang Pharmaceutical Co. Ltd. 146744.67 - 45611.47 -
Sinopharm Weiqida Pharmaceutical Co.Ltd. 140382.00 - - -
Chengdu Rongsheng Pharmacy Co. Ltd. 122000.00 - 1416622.63 -
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co. Ltd. 82800.00 - 78857.14 -
Sinopharm Yixin Pharmaceutical Co. Ltd. 81152.00 - - -
China National Medicines Co. Ltd. 78750.00 - 78750.00 -
Chengdu Institute of Biological Products
Co.Ltd. 64979.60 - 48734.70 -
Sinopharm Group Guorui Medicine Co.Ltd. 63310.27 - - -
Shyndec Pharmaceutical 56281.48 - 57838.35 -
Shenzhen Wanwei Medicine Trading Co.Ltd. 50658.00 - - -
Jinzhou AoHong Pharmaceuticals Co.Ltd. 33040.00 - 16520.00 -
Sinopharm Group Yibin Pharmaceuticals
Co. Ltd. 27085.38 - 15655.31 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
160
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Advances to suppliers(Continued) 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Guilin South pharmaceutical Co. Ltd. 26524.88 - 10989.56 -
Shanghai Chaohui Pharmaceutical Co.Ltd.
21646.80 - - -
Sinopharm Xinjiang Korla Pharmaceutical
Co. Ltd.
20279.70 - 282467.38 -
Jiangxi Erye Medicine Marketing Co. Ltd. 16726.80 - 729789.16 -
Shantou Jinshi Pow der Injection Co. Ltd. 14889.93 - - -
Sinopharm Holding Sub Marketing Center
Co. Ltd.
14885.06 - - -
Taishan Qunkang Pharmacy Co. Ltd. 13150.07 - - -
Shandong Lu Ya Pharmaceutical Co. Ltd. 11436.42 - 1412.52 -
Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co. Ltd.
9560.00 - 1846.55 -
Suzhou Erye Pharmaceutical Limited
Company
9242.76 - - -
Winteam Pharmaceutical Group Ltd. 8877.09 - 9346.82 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd.
5812.50 - 139392.00 -
Sinopharm Holding Jilin Co. Ltd. 4267.77 - - -
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co. Ltd.
778.62 - - -
Jiangsu Fuxing Pharmaceutical Trading
Co. Ltd
81.08 - 81.08 -
Sinopharm Holding Shanxi Co. Ltd. - - 3890993.71 -
Sinopharm Holding Shanxi Co. Ltd. - - 3330287.42 -
Sinopharm Holding Shanxi Lvliang Co.Ltd.- - 660000.00 -
Sinopharm Holding Beijing Co. Ltd. - - 123809.52 -
Sinopharm Holding Fujian Co. Ltd. - - 225.81 -
Xinjiang Baitong Property Service Co.Ltd.- - 16856.89 -
Sinopharm Group Guizhou Blood
Products Co. Ltd.- - 536000.00 -
Sinopharm Xinjiang Pharmaceutical Co.Ltd.- - 45432.69 -
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co. Ltd.- - 103503.41 -
Shanghai Shyndec Pharmaceutical
Marketing Co. Ltd.- - 609418.22 -
Sinopharm Chuan Kang Pharmaceutical
Co. Ltd.
- - 346772.59 -
Fresenius Kabi Huarui Pharmaceuticals
Co. Ltd.
- - 1231.58 -
Shenyang Hongqi Pharmaceutical Co.Ltd.- - 237150.00 -
Linyi Medical Group Co. Ltd. - - 775396.82 -
Hunan Minshengtang Investment Co. Ltd. - - 3349268.77 -
Taishan Xiangranhui Trade Co. Ltd - - 39450.05 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
161
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Advances to suppliers(Continued) 30 June 2019 1 January 2019
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Nanjing Yuanguang Trading Co. Ltd. - - 169697.02 -
7. Amounts due to related parties
Related party 30 June 2019 1 January 2019
Accounts payable
Sinopharm Holding Sub Marketing Center
Co. Ltd.
195937772.42 104262822.63
China National Medicines Co. Ltd. 62209906.16 48352935.82
Sinopharm Holding Shanxi Co. Ltd. 51758102.97 945054.21
Sinopharm Holding Shanxi Co. Ltd. 31832547.24 -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd.
28675206.92 18259929.53
Fresenius Kabi Huarui Pharmaceuticals
Co. Ltd.
24077737.27 10470003.68
Sinopharm Le-Ren-Tang Medicine Co.Ltd.
21572062.09 -
Sinopharm Group 21374852.12 13732261.69
Jiangsu Wanbang Pharmacy Marketing
Co. Ltd.
21363008.26 15038618.86
Lanzhou Biotechnology Development Co.Ltd.
20100000.00 -
Sinopharm Holding Lunan Co. Ltd. 16885035.59 71599.97
Sinopharm Holding Shenyang Co. Ltd. 11151742.57 4015953.59
Sinopharm Holding Inner Mongolia Co.Ltd.
10342153.14 2225947.78
Shenzhen Main Luck Pharmaceutical Co.Ltd.
9804573.26 8565744.21
Sinopharm Holding Yangzhou Co. Ltd. 9362416.32 7630403.88
Sinopharm Holding Lerentang
Pharmaceutical Co. Ltd.
8517232.26 8402288.43
Tibet Yaoyou Medicines Co.Ltd. 8066785.64 8346619.80
Sinopharm Holding Hubei Co. Ltd. 7380255.63 -
Jinzhou AoHong Pharmaceuticals Co.Ltd.
7121913.42 2422868.00
Sinopharm Holding Beijing Co. Ltd. 6747587.35 7478006.36
Sinopharm Lerentang Shijiazhuang
Medicine Co. Ltd.
6179335.72 183737.13
Winteam Pharmaceutical Group Ltd. 6143556.76 6294519.81
Sinopharm Holding Fujian Co. Ltd. 5942354.78 4484641.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
162
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co. Ltd.
5480684.06 3550454.25
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd.
4903616.19 2922052.73
Sinopharm Holding Jiangsu Co. Ltd. 4884948.33 6745253.51
Shenzhen Wanwei Medicine Trading Co.Ltd.
4704357.80 4219138.81
Chongqing Yaoyou Pharmaceutical Co.
Ltd.
4440477.23 3506823.08
Sinopharm Holding Shandong Co. Ltd. 3795662.54 10865.00
Sinopharm Holding Pingdingshan Co.Ltd.
3638807.19 3603335.66
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd.
3182288.62 795448.03
Yichang Humanw ell Pharmaceutical Co.Ltd.
3022607.79 1936090.54
Sinopharm Holding Xiamen Co. Ltd. 2812274.62 1710756.72
Sinopharm Holding Changzhou Co. Ltd. 2732668.55 1484634.49
Beijing Huasheng Pharmaceutical
Biotechnology Development Co. Ltd.
2630700.01 637.01
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd.
2493666.00 1755209.60
Sinopharm Holding Ningxia Co. Ltd. 2423060.64 3007737.39
Sinopharm Lerentang Hebei Medical
Instrument Trade Co. Ltd.
2265517.01 1519045.91
Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co. Ltd.
2257975.91 966925.12
Henan Wanxitang Pharmacy Co. Ltd. 2041958.50 2053637.44
China Otsuka Pharmaceutical Co. Ltd. 1959904.38 1571696.86
Sinopharm Holding Tongliao Co. Ltd. 1758793.98 872644.61
Sichuan Hexin Pharmaceutical Co. Ltd. 1685255.64 454536.00
Jiangxi Erye Medicine Marketing Co. Ltd. 1673658.34 262590.49
Sinopharm Holding Heilongjiang Co. Ltd. 1478359.09 922059.45
Sinopharm holdings Beijing huahong co.Ltd
1373387.43 1498601.00
Sinopharm Yixin Pharmaceutical Co. Ltd. 1339719.99 175855.31
Jiangsu Fuxing Pharmaceutical Trading
Co. Ltd
1274138.60 549104.40
Sinopharm Holding Henan Co. Ltd. 1265401.40 1441223.83
Sinopharm Holding Jinan Co. Ltd. 1251027.35 189250.47
Sinopharm Group Rongsheng
Pharmaceutical Co. Ltd.
1225702.70 398911.58
Shenyang Hongqi Pharmaceutical Co.Ltd.
1162650.62 1191792.10
Sinopharm Holding Wuxi Co. Ltd. 971301.75 492702.04
Sinopharm Holding Fuzhou Co. Ltd. 955698.95 328729.69
Sinopharm Holding Beijing Kangchen Bio- 926405.95 917154.80
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
163
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Pharmaceutical Co. Ltd.
Beijing Golden Elephant Fosun
Pharmaceutical Co. Ltd.
891429.22 1050690.44
Sinopharm Holding Changzhou Medical
Logistics Center Co. Ltd.
853893.17 3080381.47
Hunan Dongting Pharmaceutical Co. Ltd. 795952.06 265365.25
Shyndec Pharmaceutical 696904.24 511528.32
Shanghai Chaohui Pharmaceutical Co.Ltd.
694598.86 311797.36
Sinopharm Holding Hulun Buir Co. Ltd. 661633.04 364441.22
Chengdu Rongsheng Pharmacy Co. Ltd. 657794.89 1947271.88
Chengdu Institute of Biological Products
Co.Ltd.
655200.00 370800.00
Sinopharm Holding Suzhou Co. Ltd. 644244.31 1871807.98
Sinopharm Holding Xinjiang Xinte
Karamay Pharmaceutical Co. Ltd.
611742.48 1133803.05
China National Pharmaceutical Industry
Co. Ltd.
588962.54 363778.78
Sinopharm Holding Hainan Co. Ltd. 558876.10 72738.00
Guizhou Tongjitang Pharmaceutical Co.Ltd.
558859.22 342846.28
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd.
498790.10 213020.90
Sinopharm Holding Changsha Co. Ltd. 481119.66 -
Huayi Pharmaceutical Co. Ltd. 473024.00 961440.00
Suzhou Erye Pharmaceutical Limited
Company
446987.01 278341.97
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co. Ltd.
445108.34 350668.16
Sinopharm Group Yibin Pharmaceuticals
Co. Ltd.
431253.60 150034.94
Foshan Fengliaoxing Pharmaceutical Co.
Ltd.
424687.33 1254306.67
Sinopharm Group Southw est Medicine
Co. Ltd.
401710.17 194982.00
Wuhan Zhonglian Pharmaceutical Group
Co. Ltd.
385312.50 560483.58
Sinopharm Holding Hunan Co. Ltd. 362310.86 7718.24
Sinopharm Holding Lianyungang Co. Ltd. 353590.00 276118.64
Sinopharm Fengliaoxing (Foshan)
Medicines Co. Ltd.
326508.24 149.02
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd.
318353.90 165476.77
Shanghai Transfusion Technology Co.Ltd.
311860.00 352100.00
Sinopharm Chuan Kang Pharmaceutical
Co. Ltd.
310881.30 472481.64
Sinopharm Holding Jinzhou Co. Ltd. 304289.19 530995.29
Jiangsu Huanghe Pharmaceutical Co. 284275.55 261207.05
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
164
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Ltd.Sinopharm Holding Yangzhou Medical
Treatment Equipment Co. Ltd.
282295.93 55877.68
Sinopharm Holding Putian Co. Ltd. 274267.65 7144.64
Sinopharm Group Medicine Logistic Co.Ltd.
267956.64 -
Sinopharm Holding Zhihuiminsheng
(Tianjin) Pharmaceutical Co. Ltd.
266517.35 -
Sinopharm Holding Dezhou Co. Ltd. 251966.42 233602.84
Sinopharm Group Guorui Medicine Co.Ltd.
241407.19 1057129.20
Sinopharm Holding Tianjin Co. Ltd. 233292.17 15615.31
Sinopharm Group (Tianjin) Eastern
Bokang Pharmaceutical Co. Ltd.
231523.37 -
Sinopharm Holding Yancheng Co. Ltd. 201484.85 190168.37
Sinopharm Holding Shanxi Zhidekang
Medicine Co. Ltd.
165906.67 139969.67
Shanghai Merro Pharmaceutical Co. Ltd. 161072.33 90275.31
Sinopharm Holding Hunan Pharmaceutical
Development Co. Ltd.
160457.71 -
Anhui Jingfang Pharmaceutical Co. Ltd. 148041.15 165171.12
Sinopharm Holding Anhui Co. Ltd. 139702.67 18589.18
Foshan Dezhong Pharmaceutical Co. Ltd. 139274.51 98835.01
Sinopharm Holding Dalian Co. Ltd. 136272.27 182516.75
Sinopharm Holding Bayannaoer Co. Ltd. 131992.42 -
China National Pharmaceutical Foreign
Trade Corporation
122930.63 122930.63
Sinopharm Shantou Jinshi Pharmaceutical
Co. Ltd.
120579.21 102693.04
Sinopharm Holding Biopharmaceutical
(Tianjin) Co. Ltd.
108541.17 20509.50
Pudong New Area of Shanghai
Pharmaceutical Medicine Ltd.
106921.13 91493.10
China Medical Equipment Shandong Co.
Ltd.
106382.80 -
Sinopharm Liaoning Medical Equipment
Co. Ltd.
102585.59 -
The Fourth Pharmaceutical Co. Ltd. of
Zhonglian Group
92151.64 97099.70
Sinopharm Holding Taizhou Co. Ltd. 76424.00 99508.00
Sinopharm Group Shanxi Medical Devices
Co. Ltd.
75016.66 -
Sinopharm Holding Zhejiang Co. Ltd. 72393.66 58508.35
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co. Ltd.
67745.54 57148.85
Sinopharm Holding Yangzhou Biological
Products Co. Ltd.
64687.73 50162.16
Shandong Lu Ya Pharmaceutical Co. Ltd. 52819.07 52819.07
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
165
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Xinjiang Pharmaceutical Co.Ltd.
49772.38 9720.00
Sinopharm Holding Fuzhou Medical
Devices Co. Ltd.
46000.00 -
Sinopharm Holding Nanjing Wende
Pharmaceutical Co.Ltd.
44682.80 102437.80
Sinopharm Holding Ulanqab Co. Ltd. 44330.00 61246.80
Shantou Jinshi Pow der Injection Co. Ltd. 39838.05 245352.00
Sinopharm Holding Sanyi Medicine
(Wuhu) Co. Ltd.
33085.44 25483.57
Sinopharm Holding Rizhao Co. Ltd. 32873.67 10236.15
Beijing Huamiao Pharmaceutical Co. Ltd. 29912.02 372103.86
Sinopharm Holding Dalian Hecheng Co.Ltd.
28687.56 -
Guangdong Medi-World Pharmaceutical
Co. Ltd.
27719.91 297576.35
Sinopharm Holding Quanzhou Co. Ltd. 26085.88 62947.60
Sinopharm Holding Shanxi Mingdikang
Medicine Co. Ltd.
24871.11 27215.64
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co. Ltd.
22800.00 -
Sinopharm Holding Yongzhou Co. Ltd. 19809.36 19858.72
Sinopharm Group Shanghai Medicine
Device Co. Ltd.
16603.02 16603.02
Sinopharm Holding Liaocheng Co. Ltd. 16197.93 16197.93
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co. Ltd.
13891.78 84524.54
Sinopharm Holding Zhangzhou
Pharmaceutical Co. Ltd.
11760.00 -
Sinopharm Group Shanxi Co. Ltd. 10144.80 -
Sinopharm Group Anhui Medical Devices
Co. Ltd.
5200.00 -
Changchun Changsheng Gene
Pharmaceutical Co. Ltd.
3017.20 1492.91
Sinopharm Holding Ordos Co. Ltd. 1771.20 1771.20
Sinopharm Holding Shanxi Jincheng Co.Ltd.
1659.94 3846.13
Sinopharm Prospect Dentech (Beijing)
Co. Ltd.
1461.99 1536.00
Guilin South pharmaceutical Co. Ltd. 1210.43 1210.80
Sinopharm Holding Huaideju
Pharmaceutical (Xiamen) Co. Ltd.
1113.85 1113.85
Guizhou Tongjitang Pharmacy Chain Co.Ltd.
991.50 -
Shenzhen Zhijun Pharmaceutical Trade
Co. Ltd.
534.20 534.20
Shanghai Shyndec Pharmaceutical
Marketing Co. Ltd.
106.76 106.76
Chongqing Haisiman Pharmaceutical Co.
Ltd.
101.91 101.91
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
166
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Holding Chongqing Co. Ltd. 45.00 45.00
Linyi Medical Group Co. Ltd. 10.47 10.47
Sinopharm Holding Xinyu Co. Ltd. 0.01 0.01
Sinopharm Holding Jilin Co. Ltd. - -
Sinopharm Holding Shanxi Instrument
Branch Co. Ltd.
- 6309208.47
Sinopharm Holding Tianjin Distribution
Center Co. Ltd.
- 35.32
Sinopharm Holding Zhangzhou Co. Ltd. - 5472.50
Sinopharm Sichuan Pharmaceutical Co.Ltd.
- 2741.40
Sichuan Jiangyouzhongbafuzi Technology
Development Co. Ltd.
- 80000.00
Lanzhou Institute of Biological Products
Co. Ltd.
- 180000.00
Sinopharm Wuhan blood products Co.Ltd.
- 170387.93
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co. Ltd.
- 255089.90
Sinopharm ShanXi Ruifulai
Pharmaceutical Co. Ltd.
- 63081.60
Jiangsu Lianhuan Pharmaceutical Co.Ltd.
- 1321298.26
Qinghai Pharmaceutical Factory Co. Ltd. - 32970.00
Jingfukang Pharmaceutical Group Co.Ltd.
- 184438.44
Shanghai Sinopharm Pharmaceutical Co.Ltd.
- 92610.00
Fujian Chentian Jinling Pharmaceutical
Co. Ltd.
- 505555.00
Related party 30 June 2019 1 January 2019
Notes payable
Sinopharm Holding Sub Marketing Center
Co. Ltd.
116044638.24 230067443.17
Sinopharm Holding Shenyang Co. Ltd. 65065373.01 76894045.21
Sinopharm Holding Inner Mongolia Co.Ltd.
25122678.38 20459755.01
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd.
18119677.13 13887657.53
Sinopharm Holding Shanxi Co. Ltd. 7725000.00 67926610.30
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
167
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Notes payable (Continued)
Sinopharm Holding Fujian Co. Ltd. 7114576.43 7011034.30
Sinopharm Holding Lerentang
Pharmaceutical Co. Ltd.
6824078.95 14650495.82
Chongqing Yaoyou Pharmaceutical Co.
Ltd.
6503471.90 5538258.30
China National Medicines Co. Ltd. 5851346.28 26654608.10
Sinopharm Holding Xiamen Co. Ltd. 5423216.11 5361959.66
Chengdu Rongsheng Pharmacy Co. Ltd. 5041000.00 2673500.00
Lanzhou Biotechnology Development Co.Ltd.
4860000.00 3000000.00
Sinopharm Lerentang Shijiazhuang
Medicine Co. Ltd.
4185619.88 8148267.06
Sinopharm Holding Jinzhou Co. Ltd. 2493839.62 1611340.65
Jiangsu Wanbang Pharmacy Marketing
Co. Ltd.
2439745.89 4817408.42
Sinopharm Holding Shanxi Co. Ltd. 2082000.00 18340013.80
Sinopharm Holding Hunan Co. Ltd. 2043558.46 3114143.15
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd.
1856344.00 325741.92
Shenzhen Wanwei Medicine Trading Co.Ltd.
1802808.00 2402393.40
Shenzhen Main Luck Pharmaceutical Co.Ltd.
1769052.60 2877350.00
Sinopharm Holding Ningxia Co. Ltd. 1538808.00 1413847.22
Sinopharm Holding Jinan Co. Ltd. 1240000.00 1880000.00
Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co. Ltd.
1145486.98 356554.16
Sinopharm Group Shanxi Medical Devices
Co. Ltd.
949700.00 -
Sinopharm Holding Dalian Co. Ltd. 857791.87 950169.80
Guangdong Medi-World Pharmaceutical
Co. Ltd.
755306.20 -
Guizhou Tongjitang Pharmaceutical Co.Ltd.
632834.40 -
Sinopharm Holding Changsha Co. Ltd. 632325.90 -
Anhui Jingfang Pharmaceutical Co. Ltd. 409923.80 -
Sinopharm Holding Changzhou Medical
Logistics Center Co. Ltd.
400000.00 1000000.00
Shanghai Transfusion Technology Co.Ltd.
301800.00 503000.00
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co. Ltd.
262800.00 -
Shyndec Pharmaceutical 255516.40 475780.40
Sinopharm Group Rongsheng
Pharmaceutical Co. Ltd.
213037.00 223333.00
Sinopharm Holding Quanzhou Co. Ltd. 205791.15 170891.70
Sinopharm Holding Putian Co. Ltd. 160980.86 614504.48
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
168
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Notes payable (Continued)
Sinopharm Holding Yancheng Co. Ltd. 160000.00 -
Winteam Pharmaceutical Group Ltd. 154417.60 111322.50
Sinopharm Yixin Pharmaceutical Co. Ltd. 107472.00 394064.00
Sinopharm Group - 1183604.16
Sinopharm Holding Shanxi Instrument
Branch Co. Ltd.
- 1981189.60
Sinopharm Holding Lunan Co. Ltd. - 8596290.47
Sinopharm Holding Yangzhou Co. Ltd. - 626534.40
Sinopharm Holding Heilongjiang Co. Ltd. - 31320.00
Sinopharm Le-Ren-Tang Medicine Co.Ltd.
- 22076249.59
Foshan Fengliaoxing Pharmaceutical Co.
Ltd.
- 320310.10
Sinopharm Group Guizhou Blood
Products Co. Ltd.
- 536000.00
Lanzhou Institute of Biological Products
Co. Ltd.
- 6236153.40
Shenyang Hongqi Pharmaceutical Co.Ltd.
- 602172.00
Chongqing Haisiman Pharmaceutical Co.
Ltd.
- 275652.00
China Otsuka Pharmaceutical Co. Ltd. - 1793583.51
Jiangsu Lianhuan Pharmaceutical Co.Ltd.
- 522071.08
Jingfukang Pharmaceutical Group Co.Ltd.
- 151120.00
Fujian Chentian Jinling Pharmaceutical
Co. Ltd.
- 100600.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
169
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Other payables
Sinopharm Group Medicine Logistic Co.Ltd.
11518140.63 2278301.79
Shanghai Dingqun Enterprise
Management Consulting Co. Ltd.
10000000.00 10000000.00
Sinopharm Chongqing Pharmaceutical
and Medical Industry Design Institute
5173229.10 5943030.80
Sinopharm Group 3842067.59 3706406.59
Sinopharm Group Shanghai Co. Ltd. 1690992.16 1660431.38
China National of Traditional&Herbal
Medicine Co. Ltd.
1300000.00 1300000.00
Sinopharm Holding Tianjin Binhai
Pharmaceutical Co. Ltd.
387617.70 339760.00
Shyndec Pharmaceutical 327973.63 327973.63
Shanghai Beiyi Guoda pharmaceutical Co.Ltd.
195898.04 566180.09
Sinopharm Holding Hunan Weian
Pharmacy Medicine Chain Company
Limited
97305.00 30000.00
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd.
76540.19 41794.27
Sinopharm Holding Sub Marketing Center
Co. Ltd.
37782.33 37782.33
Xinjiang Baitong Property Service Co.Ltd.
33713.74 -
China National Pharmaceutical Logistics
Co. Ltd.
10349.70 10349.70
Sinopharm Group Medicine Logistic Co.Ltd. Guangzhou Branch
- 18650.00
Sinopharm Holding Financing Lease Co.Ltd.
- 4424970.21
Heyuan Mairui Trading Co. Ltd. - 672396.36
Shenyang Pharmaceutical Co. Ltd. - 4419166.69
Linyi Medical Group Co. Ltd. - 51398.45
Zhang Zhenfang - 2309999.96
Pingdingshan Pusheng Pharmaceutical
Co. Ltd.
- 1246412.02
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
170
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Contract liability
Sinopharm Holding Quanzhou Co. Ltd. 111943.09 10088.00
Sinopharm Holding Inner Mongolia Co.Ltd.
23021.80 23021.80
Sinopharm Holding Jiangxi Co. Ltd. 22924.91 34334.51
Sinopharm Holding Gansu Co. Ltd. 21960.00 -
China Otsuka Pharmaceutical Co. Ltd. 20475.00 -
China National Pharmaceutical Foreign
Trade Corporation
2727.23 1495.33
Sinopharm Holding Chengdu Co. Ltd. 851.59 851.59
Sinopharm Holding Chongqing Co. Ltd. 755.62 755.62
Sinopharm Group Guangdong Medicine
Device Co. Ltd.
639.92 1599.80
Sinopharm Holding Taizhou Co. Ltd. 24.80 -
Sinopharm Holding Jinzhou Co. Ltd. 0.19 -
Sinopharm Holding Hunan Co. Ltd. - 87764.97
Sinopharm Holding Hunan Weian
Pharmacy Medicine Chain Company
Limited
- 67305.00
Sinopharm Xinxiang Chain Store Co. Ltd. - 0.01
Sinopharm Holding Yunnan Co. Ltd. - 11900.19
Sinopharm Holding Nantong Co. Ltd. - 143177.12
Sinopharm Sichuan Pharmaceutical Co.Ltd.
- 1123087.93
Sinopharm Medical Instrument Guizhou
Qiannan Co. Ltd.
- 93.60
Sinopharm Zhuhai Medical Instrument
Co. Ltd.
- 3719.00
Sinopharm Health Online Co. Ltd. - 416056.44
Sinopharm Holding Hulun Buir Co. Ltd. - 21177.25
Sinopharm Holding Huaian Co. Ltd. - 19.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
171
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Interest receivable
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co. Ltd. 1484841.22 1846618.96
Interest payable
Group Financial Co. 98338.84 -
CNPGC 35440.21 38984.25
Other non-current assets
Hunan Minshengtang Investment Co. Ltd. - 3519217.54
Lease liability
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. 51477662.49 -
Lerentang Investment Group Co. Ltd. 15361691.91 -
Linyi Medical Group Co. Ltd. 7333666.98 2214094.34
Sinopharm Holding Financing Lease Co. Ltd. 6824613.01 9625302.89
Guangdong Jiyuantang Development Co. Ltd. 5895887.17 6679233.35
Sinopharm Holding Yangzhou Co. Ltd. 5440115.48 7178262.00
Taishan Xiangranhui Trade Co. Ltd 2506316.51 2834391.56
Gu Jinhua 2091695.72 2224810.30
Nanjing Yuanguang Trading Co. Ltd. 1979076.07 2675365.64
Shenyang Pharmaceutical Co. Ltd. 1685513.08 1885957.03
Shaoguan Wujiang District Muyang Medicine Information
Consultant Co. Ltd. 996884.75 1441844.49
Sinopharm Group 917838.40 1156090.31
Sinopharm Holding Beijing Co. Ltd. 866374.99 1094397.22
Gu Haiqun 686419.59 766279.30
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co. Ltd. 506243.41 652436.66
Hangzhou Xihu Business Group Corporation 422980.77 553514.61
China National Medicines Co. Ltd. 417186.76 550480.20
Shenzhen Jiufeng Investment Co. Ltd. 385892.93 377758.33
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
172
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Entrusted loan
CNPGC - 31600000.00
Other non-current liabilities
Sinopharm Group - 35061743.31
short-term loan
Group Financial Co. 111418168.96 122426393.33
Long-term payables
Sinopharm Holding Financing Lease Co. Ltd. - 3763978.52
Non-current liabilities due w ithin one year
CNPGC 31600000.00 -
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. 9673454.33 9206427.16
Lerentang Investment Group Co. Ltd. 8032346.40 5822550.02
Sinopharm Holding Financing Lease Co. Ltd. 6157645.87 5861324.37
Sinopharm Holding Yangzhou Co. Ltd. 3587508.60 3512206.10
Guangdong Jiyuantang Development Co. Ltd. 1752116.60 1649377.54
Linyi Medical Group Co. Ltd. 1450117.00 1549099.93
Nanjing Yuanguang Trading Co. Ltd. 1407714.78 1163845.57
Shaoguan Wujiang District Muyang Medicine Information
Consultant Co. Ltd. 918533.66 899216.52
Taishan Xiangranhui Trade Co. Ltd 657171.76 660453.69
Sinopharm Group 491639.09 481344.63
Sinopharm Holding Beijing Co. Ltd. 477779.78 460701.48
Shenyang Pharmaceutical Co. Ltd. 428258.20 404634.11
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co. Ltd. 325813.14 295389.79
Hangzhou Xihu Business Group Corporation 276559.91 263776.29
China National Medicines Co. Ltd. 275115.69 269340.95
Gu Jinhua 273920.39 268369.48
Shenzhen Jiufeng Investment Co. Ltd. 188790.90 184833.91
Gu Haiqun 168618.03 161206.64
Cash deposite with a related party
Group Financial Co. 11759504.84 2125351.39
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
173
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 2019 31 December 2018
RMB‘0000 RMB‘0000
Buildings machinery and equipment 2196.50 42.16
Investment commitments (Note) 6000.00 6000.00
8196.50 6042.16
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 RMB60 million and 40% in 2018 amounting to RMB80
million. The remaining payment amount is RMB60 million. .
2. Contingencies
As of the balance sheet date there were no contingencies that the Group was required to disclose.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
174
XII Other significant events
1. Segment reporting
Operating segments
For management purpose the Group is organized into business units based on its
product and service and has four reportable operating segments as follows:
a) The Head Office which is mainly engaged in investing and managing business;
b) Pharmaceutical distribution segment which is mainly engaged in the
distribution of medicine and pharmaceutical products to customers;
c) Retail pharmacy segment which is the managing the operation of Guoda
Pharmacy;
Management monitors the results of the Group’s operating segments separately for the
purpose of making decisions about resource allocation and performance assessment.Segment performance is evaluated based on reportable segment profit which is a
measure of adjusted profit before tax. The adjusted profit before tax is measured
consistently with the Group’s profit before tax except that finance costs dividend
income non-operating income non-operating expense investment income as well as
head office and corporate expenses are excluded from such measurement.Inter-segment sales and transfers are transacted with reference to the selling prices
used in the transactions carried out with third parties at the then prevailing market
prices.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
175
XII Other significant events (Continued)
2. Segment reporting (Continued)
Operating segments (Continued)
Operating segment information as at and for the semi year ended
Head Office
Pharmaceutical
distribution
Retai l
Elimination between
segments
Total
Revenue of main operat ions - 19442945442.54 5957083892.95 (359409396.51) 25040619938.98
Cost of main operations - (18238282841.05) (4 518680260.83) 358635569.45 (22398327532.43)
Investment income 169889995.08 (995293.58) 247588.49 - 169142289.99
Net profit 607413658.42 403231513.97 186189865.75 (428742482.83) 768092555.31
Total assets 11863959776.81 20784963352.57 10847813404.32 (9957137850.76) 33539598682.94
Total liabilities (2406658554.25) (15349630522.38) (5 670681594.90) 4 445868231.85 (18981102439.68)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
183
XIII Notes to key items of the company financial statements
1. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2019 1 Januar y 2019
Gross carryi ng amount Provision for bad debt Gross carryi ng amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for which
provision for bad
debt is recognised
separatel y 19207761.36 3.15% 161522.25 0.84% 17846941.30 2.83% - -
Items for which
provision for bad
debt is recognized
by the company
(credit risk
characteristics) 591029383.80 96.85% - - 613389652.64 97.17% - -
610237145.16 100.00%
161522.25 0.03%
631236593.94 100.00%
- -
At 30 June 2019 accounts receivable that are individually signif icant and individually assessed for provisions are as
follows:
Accounts receivable(by
company) Carrying amount
Bad debt
provision Rate Assessment for impairment
Receivable of related party 18884716.86 - 0.00%
Receivable due from a related party
with low risk of recoverability
Shenzhen Dongtai
Pharmaceutical Co. Ltd. 323044.50 161522.25 50.00%
The customer has poor management
and bad f inancial situation with hi
gh risk of recoverability
Total 19207761.36 161522.25
Provision for bad debts of accounts receivable according to the general model of expected credit
loss:
30 June 2019
Estimated def ault amount
Expected credit loss in entire
lif etime Expected credit loss rate
Within 1 year 591029383.80 - -
591029383.80 - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
177
XIII Notes to key items of the company financial statements (Continued)
1. Accounts receivable (Continued)
The aging analysis of accounts receivables was as follows:
30 June 2019
Within 1 year 610237145.16
Total
610237145.16
Bad debt provision for the current period as follows:
Opening
balance
Reversal of write-
off in previous
years
Increases in the year
Reversal in the
year
Written off
in the year
Closing
balance
Bad debts - - 161522.25 - - 161522.25
Total - - 161522.25 - - 161522.25
On 30 June 2019 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 117550911.53 - 19.26%
On 30 June 2019 the Company's accounts receivable that were terminated due to the
cooperation on accounts receivable factoring with financial institutions without recourse were RMB
183988184.79.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
178
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
30 June 2019 1 January 2019
Interest receivable 14926690.76 7550877.07
Dividend receivable 106074898.00 -
Other receivables 1737482983.84 1534430006.43
1858484572.60 1541980883.50
（1）Interest receivable
30 June 2019 1 January 2019
Fixed deposits 11411000.00 3697083.33
Entrusted Loans 3515690.76 3853793.74
14926690.76 7550877.07
（2）Dividend receivable
30 June 2019 1 January 2019
Sinopharm Holding Shenzhen Logistics
Co. Ltd. 1332303.75 -
Sinopharm Holding Shenzhen Traditional
& Herbal Medicine Co. Ltd 245732.05 -
Shenzhen Jianmin Pharmaceutical Co.Ltd. 2260593.51 -
Sinopharm Holding Guangzhou Co. Ltd 71642571.23 -
Sinopharm Holding Guangxi Co. Ltd 30593697.46 -
106074898.00 -
（3）Other receivables
Category of other receivables by nature is as follows:
Nature 30 June 2019 1 January 2019
Receivable due from related parties 1721317102.80 1469192387.91
Receivable of equity transactions 8980000.00 8980000.00
Deposits 436311.09 1449978.94
Others 17964114.36 63817941.16
Total 1748697528.25 1543440308.01
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
179
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
The changes in bad debt provision for other receivables based on the entire li fetime expected
credit losses are as follows:
Stage 1 Stage 2 Stage 3
Bad debt Expected credit
losses over the
next 12 months
Entire lifetime
expected credit
losses(No credit
impairment occurred)
Entire lifetime expected
credit losses(Credit
impairment occurred)
Total
Balance at 1 January 2019 - 9010301.58 - 9010301.58
Balance at 1 January 2019
during the period
Provisions during the
period - 2204412.83 - 2204412.83
Reversal during the period - (170.00) - (170.00)
Balance at 30 June 2019 - 11214544.41 - 11214544.41
The aging analysis of other receivables was as follows:
30 June 2019
Within 1 year 1689730979.74
1 to 2 years 49856902.50
2 to 3 years 29829.20
Over 3 years 9079816.81
Total 1748697528.25
Bad debt provision of other receivables in 2019 was RMB2204412.83 with the recovered or reversed
amount of RMB170.00.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
180
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
As at 30 June 2019，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
Sinopharm Guangxi Entrusted borrow ings 343000000.00 Within 1 year 19.61%
Sinopharm Yuexing Entrusted borrow ings 190700000.00 Within 1 year 10.91%
Sinopharm Holding
Dongguan Co. Ltd. Entrusted borrow ings 161000000.00 Within 1 year 9.21%
Sinopharm Holdings
Zhanjiang Co. Ltd. Entrusted borrow ings 117000000.00 Within 1 year 6.69%
Sinopharm Holding
Meizhou Co. Ltd. Entrusted borrow ings 76700000.00 Within 1 year 4.39%
888400000.00 50.81%
3. Long-term equity investments
30 June 2019 1 January 2019
Original v alue
Bad debt
prov ision Carry ing amount Original v alue
Bad debt
prov ision Carry ing amount
Inv estments
in
subsidiaries 5594679427.58 - 5594679427.58 5594679427.58 - 5594679427.58
Inv estments
in
associates 2084966116.97 39930000.00 2045036116.97 1878157264.66 39930000.00 1838227264.66
7679645544.55 39930000.00 7639715544.55 7472836692.24 39930000.00 7432906692.24
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
181
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(a) Subsidiaries
1 Januar y 2019 Increases
decrease 30 June 2019
Provision for
impairment in the
current period
Ending value of
impairment
provision
Sinophar m Jianmi ng 60054911.04 - - 60054911.04 - -
Sinophar m Traditi onal &
Herbal Medicine 15450875.93 - - 15450875.93
- -
Shenzhen Logistics 5019062.68 - - 5019062.68 - -
Sinophar m Guangzhou 3588689716.80 - - 3588689716.80 - -
Sinophar m Guangxi 525456951.07 - - 525456951.07 - -
Sinophar m Yanfeng 38207800.00 - - 38207800.00 - -
Sinophar m Holdi ng
Guoda Phar macy Co.Ltd. 1361800110.06 - - 1361800110.06 - -
5594679427.58 - - 5594679427.58 - -
(b) Associates
Mo vement
1 January 20 19 Investment
Profit or loss under
the equity method
Other changes in
equity
Dividend
declared
Other 30 June 2019
Provision of
impairment
Sinopharm Group Zhijun (Suzhou )
Pharmaceutical Co. Ltd. 39930000.00 - - - - - 39930000.00 39930000.00
Shenzhen Main Luc k Pharmaceutical
Co. Ltd 265316653.68 - 33592995.70 - - - 298909649.38
Sinopharm Group Zhijun (Shenzhen )
Pharmaceutical Co. Ltd. 355353196.15 - 58536101.74 - - - 413889297.89 -
Shenzhen Zhijun Pharmaceutical
Trade Co. Ltd.
8730994.87 - 1467031.77 - - - 10198026.64 -
Sinopharm Group Zhijun(Shenzhen )
Pingshan Pharmaceutical Co.Ltd. 86292927.33 - 22425900.45 - - - 108718827.78 -
Shanghai Shyndec Pharmaceutical
Co. Ltd. 1098566852.51 - 65258503.45 42424747.00 (16896427.80 ) - 1189353675.16 -
Shanghai Dingqun Enterprise
Manag ement Consulting Co. Ltd. 23966640.12 - - - - - 23966640.12 -
1878157264.66 - 181280533.11 42424747.00 (16896427.80 ) - 2084966116.97 39930000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
182
XIII Notes to key items of the company financial statements (Continued)
4. Sales and cost of sales
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Revenue Cost Revenue Cost
Principal
operations 1997575365.19 1915240571.14 1681220169.43 1612710688.13
Other
operations 10429198.11 6031823.62 6401186.40 2006785.78
2008004563.30 1921272394.76 1687621355.83 1614717473.91
Classif ication For the six months ended
30 June 2019
By product
Include:
Medicines 1919165623.70
Medical appliance 78409741.49
Other 10429198.11
By area
Include:
Domestic 2008004563.30
Overseas
By contract duration
Include:
Confirm revenue at a certain point in time 1997575365.19
Confirm revenue at a certain time period
10429198.11
Total 2008004563.30
Information about the Company’s obligations is as follows:
The Company recognises revenue when goods are delivered and will receive payment within 30-210 days.The Company recognises revenue after providing services and will receive payment within 30 -210 days.The expected revenue recognition time for the Company’s contract obligations above is in year 2019.Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has
not yet fulfilled is9058538.51 yuan of which 9058538.51 yuan is expected to be recognized in 2019.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
183
XIII Notes to key items of the company financial statements (Continued)
5. Investment income
For the six months ended
30 June 2019
For the six months ended
30 June 2018
Long-term equity investment
income calculated by cost method 427007887.36 361514454.32
Long-term equity investment income
calculated by equity method
181280533.11 173326290.14
608288420.47 534840744.46
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Supplementary information to financial statements
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
183
XIV Supplementary information to financial statements
1. Schedule of non-recurring profi t or loss
Amount for 30 June 2019 Illustration
Gains and losses from disposal of non-current assets
including write off of accrued asset impairment 4318.22 .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 16456976.15
Mainly contains tax
subsidies and f inancial
incentives received during
current period
Reversal of bad debt provision for accounts receivable that were
tested for impairment individually 1076222.62
Profit or loss from outward entrusted borrowings 1715338.06
The interest income from
the entrusted loan provided
to Sinopharm Group Zhijun
(Suzhou) Pharmaceutical
Co. Ltd.
Non-operating income and expenses other than the aforesaid
items 519920.40
Other 16447.15
Less:Impact on income tax 4668084.55
Impact on non-controlling interests after tax 3988225.60
11132912.45
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 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
185
XIV 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 5.44% 1.52 1.52
Net profit after deducting non-recurring
profit or loss attributable to the
Company’s ordinary shareholders of the
parent 5.35% 1.49 1.49
China National Accord Medicines Corporation Ltd.
Legal representative: Lin Zhaoxiong
24 August 2019
沪公网安备31011802005267号
