一致Ｂ：2020年半年度报告（英文版）

China National Accord Medicines Corporation Ltd.

Semi-Annual Report 2020

August 2020

Section I. Important Notice Contents and Interpretation

Board of Directors Supervisory Committee all directors supervisors and senior

executives of China National Accord Medicines Corporation Ltd. (hereinafter

referred to as the Company) hereby confirm that there are no any fictitious

statements misleading statements or important omissions carried in this report

and shall take all responsibilities individual and/or joint for the reality

accuracy and completion of the whole contents.Lin Zhaoxiong Principal of the Company Gu Guolin person in charger of

accounting works and Wang Ying person in charge of accounting organ

(accounting principal) hereby confirm that the Financial Report of Semi-

Annual Report 2020 is authentic accurate and complete.

Other directors attending the Meeting for annual report deliberation except for

the followed:

Name of director absent Title for absent director Reasons for absent Attorney

Lian Wanyong Director Official business Li Dongjiu

The Company plans not to pay cash dividends bonus and carry out capitalizing

of common reserves.

Contents

Semi-Annual Report 2020..................................................................................................................2

Section I Important Notice Contents and Interpretation.............................................................. 2

Section II Company Profile and Main Financial Indexes...............................................................5

Section III Summary of Company Business.................................................................................... 9

Section IV Discussion and Analysis of the Operation................................................................... 13

Section V Important Events............................................................................................................ 33

Section VI Changes in shares and particular about shareholders...............................................61

Section VII Preferred Stock.............................................................................................................66

section VIII Convertible Bonds.......................................................................................................67

Section IX Particulars about Directors Supervisors and Senior Executives ........................... 68

Section X Corporate bond............................................................................................................... 69

Section XI Financial Report............................................................................................................ 70

Section XII Documents available for reference........................................................................... 315

Interpretation

Items Refers to Contents

Listed Company Company the Company

Sinopharm Accord the Group

Refers to China National Accord Medicines Corporation Ltd.SINOPHARM Refers to China National Pharmaceutical Group Corporation

Sinopharm Holding Refers to Sinopharm Group Co. Ltd Controlling shareholder of the Company

Company Law Refers to Company Law of the People’s Republic of China

Securities Law Refers to Securities Law of the People’s Republic of China

Yuan 10 thousand Yuan 100 million Yuan Refers to RMB RMB 10 thousand RMB 100 million

Terminology: Refers to

4D business Refers to

SPD hospital logistics supply chain extension business IVD diagnostic

reagent business CSSD disinfection service and MWD equipment life

cycle management business

GPO Refers to Group purchasing organizations

Abbreviation: Refers to

Sinopharm Holding Guangzhou Refers to Sinopharm Holding Guangzhou Co. Ltd.Guoda Drugstore Refers to Sinopharm Holding Guoda Drugstore Co. Ltd.Sinopharm Holding Guangxi Refers to Sinopharm Holding Guangxi Co. Ltd.

Foshan Nanhai Refers to Foshan Nanhai Pharmaceutical Group Co. Ltd.

Nanfang Pharmaceutical Foreign Trade Refers to Guangdong Nanfang Pharmaceutical Foreign Trade Co. Ltd.

China National Zhijun Zhijun

Pharmaceutical

Refers to China National Zhijun (Shenzhen) Pharmaceutical Co. Ltd.Zhijun Pharmacy Trade Refers to Shenzhen Zhijun Pharmacy Trade Co. Ltd.Zhijun Pingshan Pingshan Pharmaceutical Refers to China National Zhijun (Shenzhen) Pingshan Pharmaceutical Co. Ltd.Main Luck Pharmaceuticals Refers to Shenzhen Main Luck Pharmaceuticals Inc.Shanghai Dingqun Refers to Shanghai Dingqun Enterprise Management Consulting Co. Ltd.Jilin Tianhe Refers to Sinopharm Holding Tianhe Jilin Pharmaceutical Co. Ltd.Yanghetang Refers to Shanghai Yanghetang Pharmaceutical Chain Management Co. Ltd.Pudong Medicine Refers to Pudong NewArea of Shanghai Pharmaceutical Medicine Ltd.Section II. Company Profile and Main Financial Indexes

I. Company profile

Short form of the stock Sinopharm Accord Accord B Stock code 000028 200028

Stock exchange for listing Shenzhen Stock Exchange

Name of the Company (in

Chinese) 国药集团一致药业股份有限公司

Short form of the Company

(in Chinese if applicable) 国药一致

Foreign name of the Company

(if applicable) China National Accord Medicines Corporation Ltd.Short form of foreign name of

the Company (if applicable) SinopharmAccord

Legal representative Lin Zhaoxiong

II. Person/Way to contact

Secretary of the Board Representative of security affairs

Name Chen Changbing Wang Zhaoyu

Contact add.

Accord Pharm. Bldg. No. 15 Ba Gua Si

Road Futian District Shenzhen

Guangdong Province

Accord Pharm. Bldg. No. 15 Ba Gua Si

Road Futian District Shenzhen

Guangdong Province

Tel. +(86)755 25875195 +(86)755 25875222

Fax. +(86)755 25195435 +(86)755 25195435

E-mail gyyzinvestor@sinopharm.com gyyz0028@sinopharm.com

III. Others

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in reporting period or

not

□ Applicable √ Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change in reporting period

found more details in Annual Report 2019.

2. Information disclosure and preparation place

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

The newspaper appointed for information disclosure website for semi-annual report publish appointed by CSRC and preparation

place for semi-annual report have no change in reporting period found more details in Annual Report 2019

IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data

√ Yes □No

Cause of retroactive adjustment or restatement

Enterprises combined under the same control

Current period

Same period of last year

Increase/decrease in

this report y-o-y (+-)

Before adjustment After adjustment After adjustment

Operating revenue (RMB) 27169940188.52 25228147377.43 25599198815.30 6.14%

Net profit attributable to shareholders of the

listed Company (RMB)(note 1)

643451580.59 650833360.40 649154414.55 -0.88%

Net profit attributable to shareholders of the

listed Company after deducting

non-recurring gains and losses (RMB)

627017019.45 639700447.95 639700447.95 -1.98%

Net cash flow arising from operating

activities (RMB)

1438204043.35 1163757581.35 1139154120.89 26.25%

Basic earnings per share (RMB/Share) (note

1.50 1.52 1.52 -1.32%

Diluted earnings per share (RMB/Share) 1.50 1.52 1.52 -1.32%

Weighted average ROE (note 1) 4.91% 5.44% 5.38%

Decline 0.47

percentage points

End of current

period

End of last period

Increase/decrease in

this report-end over

that of last

period-end (+-)

Before adjustment After adjustment After adjustment

Total assets (RMB) 37669850203.30 33539598682.94 34028843214.20 10.70%

Net assets attributable to shareholder of

listed Company (RMB)

13199983119.01 12140439917.48 12911140435.88 2.24%

Note: The Group acquired 75.00% equity of Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. under the same control in

the current year. When preparing the comparative statement of the 2020 semi-annual consolidated statement it is deemed that the

parties involved in the merger already exist in the current state when the ultimate controlling party begins to exercise control and

adjust the previous comparative statement.Note 1: Net profit attributable to shareholders of listed companies decreased by 0.88% from the same period of last year mainly due

to the impact of the novel coronavirus pneumonia epidemic the sales growth of the Group slowed down. At the same time changes

in industry policies have also led to a narrowing of profit margins as a result the basic earnings per share earnings fell by 1.32% and

the weighted average return on equity fell by 0.47%.

V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report under both IAS (International

Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under both IAS (International Accounting

Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting

rules and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under both foreign accounting rules and

Chinese GAAP (Generally Accepted Accounting Principles)

VI. Items and amounts of extraordinary profit (gains)/loss

√ Applicable □ Not applicable

In RMB

Item Amount Note

Gains/losses from the disposal of non-current asset (including the

write-off that accrued for impairment of assets)

3933705.37

Mainly probability of gain and

losses from the end of lease .Governmental subsidy calculated into current gains and

losses(while closely related with the normal business of the

Company excluding the fixed-amount or fixed-proportion

governmental subsidy according to the unified national standard)

28001035.78

Mainly probability of special

subsidies received in the period

and tax reduction & exemption

Reversal of impairment reserve for account receivable with

separate impairment testing

362078.91

Consigning fee received for consigned operation 961488.75

Other non-operating income and expenditure except for the

aforementioned items

1233502.85

Other gains/losses satisfy a definition of extraordinary 819788.51

gains/losses

Less: impact on income tax 8198319.82

Influenced amount of minority shareholders’ equity (after

tax) 10678719.21

Total 16434561.14 --

Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies

Offering Their Securities to the Public --- Extraordinary Profit/loss and the items defined as recurring profit (gain)/loss according to

the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their

Securities to the Public --- Extraordinary Profit/loss explain reasons

□ Applicable √ Not applicable

In reporting period the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of

extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to

the Public --- Extraordinary Profit/loss

Section III. Summary of Company Business

I. Main businesses of the company in the reporting period

The Company complies with the disclosure requirement of Information Disclosure Guidelines for the Shenzhen Stock Exchange No.

8- Listing Company Engaged in Retailing Industry

In the reporting period the main business of Sinopharm Accord includes pharmaceutical distribution and

pharmaceutical retail specifically as follows:

(i) In the pharmaceutical distribution field the company continues to integrate the distribution and logistics

business deeply penetrates into the end markets improves the stepped distribution network creates intelligent

supply chain and devotes to become a provider for pharmaceutical and health care products and services with the

strongest influence the highest share the most complete variety the best service and the fastest delivery in south

district of China.

1. The Company’s pharmaceutical distribution business is established in Guangdong and Guangxi with its network

extents to the county-level region and realizes the whole network operation. The network further expanded in

2020 which including: as of 30 June 2020 there are 975 second- and third-tier medical institutions 6319

primary-level medical customers and 4881 retail terminal customers (chain pharmacies single stores and

self-paying pharmacies in hospitals).

2. The Company’s pharmaceutical distribution business has achieved the first scale in Guangdong and Guangxi

and the leading position in market segment of Guangdong and Guangxi and has obtained the relatively leading

position in vaccine instrument and e-commerce industries.(ii) In the pharmaceutical retail field Guoda Drugstore is a pharmaceutical retail enterprise that ranks the first in

the sales volume throughout the country and is one of the few enterprises in China with national direct sales drug

retail network.

As of 30 June 2020 Guoda Drugstore has operated 5838 stores covering 22 provinces autonomous regions and

municipalities entering nearly 75 large and medium sized cities which has formed a drugstore networks covering

eastern and northern China southern coastal cities and gradually expanded into northeast central plains and

inland cities ranking the first within industry; Guoda drugstore the business of which were mainly relying on

modern retail drugstores has been putting great attention on the development of professional service system with

medical resources as core competitiveness building a group of stores with professional commercial activities

which are able to provide retails and therapy services that integrating medical service and health-care products

sales and cooperate with hospitals; at the same time the Company has been vigorously developing new business

exploring and expanding new sales channels improving professional services being dedicated to transit from a

traditional medical retail into an innovative service enterprise. By means of conventional products retail

management improving major brands and exploring business cooperation with supplier accelerating the

establishment and improvement of DTP business and continuation of health care service system Guoda has built

industry-leading professional service ability.II. Major changes in main assets

1. Major changes in main assets

Major assets Note of major changes

Equity assets Increased 37.0472 million yuan over that of period-begin with 1.67% rata of change there are no major

changes during the reporting period.

Fixed assets Increased 8.8469 million yuan over that of period-begin with 1.25% rata of change there are no major changes

during the reporting period.Intangible assets

Increased 233.2735 million yuan over that of period-begin with 62.24% rata of change the new sells network

trademarks and brand rights are recognized due to the acquisition of Shanghai Dingqun Enterprise

Management Consulting Co. Ltd in the Period.

Construction in

progress

Decreased 2.582 million yuan over that of period-begin with -8.18% rata of change mainly because the

completion of ERP software installation are transfer to intangible assets and the supply chain extension project

transfer to fixed assets.Note receivable

Decreased 390.6618 million yuan over that of period-begin with -49.25% rata of change mainly because

affected by GPO policy purchasing mode of hospital customers changes and the settlement mode change

accordingly.

Account receivable

Increased 3179.7116 million yuan over that of period-begin with 29.68% rata of change mainly because due to

the COVID-19 epidemic and market environment collection of account receivables is affected. and receivable

increased at end of the period for newly combined in the Company.Goodwill

Increased 554.8737 million yuan over that of period-begin with 54.93% rata of change mainly resulted by the

acquisition of Shanghai Dingqun Enterprise Management Consulting Co. Ltd by subsidiary-Guoda Drugstore

in the Period.Other non-current

assets

Increased 256.6312 million yuan over that of period-begin with 331.76% rata of change mainly caused by the

purchase of special emergency supplies at the request of the government for the prevention and control of

COVID-19.

2. Main overseas assets

□Applicable √ Not applicable

III. Core competitiveness analysis

1. Strong network coverage and layout

Relying on comprehensive distribution networks and variety resources Sinopharm Accord has continued to

optimize the efficiency of the supply chain by promoting the integration of wholesale and retail resources in

recent years. The company has complete pharmaceutical distribution networks in Guangdong and Guangxi

covering the second and third-tier medical institutions and retail chain terminals in Guangdong and Guangxi and

continuously promotes the extension of channels to the retail side. In the first half of 2020 the sales volume of the

company's retail direct sales small-scale social medical services etc. have achieved rapid growth.SinopharmAccord has retail network leading in scale and covering the whole country Guoda Drugstore has retail

chain network spreading over 22 provinces autonomous regions and municipalities directly under the Central

Government covering 75 large and medium-sized cities nationwide.

2. Abundant variety resources

In the pharmaceutical distribution the company has established extensive cooperative relations with thousands of

domestic manufacturers and commercial enterprises and established stable business relationships with hundreds of

import and joint venture manufacturers and has rich variety resources.Guoda Drugstore operates nearly 120000 merchandises. With its relatively comprehensive purchasing network

and years of experience in commodity management Guoda Drug Store has established a merchandise system with

wide coverage high professionalization and rich varieties.

3. Complete logistics and distribution system

Sinopharm Accord distribution adopts supply chain management and warehouse management solutions system it

has built large-scale first-grade logistics centers in Guangzhou Nanning Shenzhen and other places and

established distribution centers in Guangdong and Guangxi which has formed ladder logistics and distribution

networks it is the first enterprise in Guangdong and Guangxi that has achieved the third-party logistics

qualification and has the professional pharmaceutical logistics capabilities with the largest scale the most

extensive network and the most complete modes in southern China.Guoda Drugstore has a nationwide modern logistics and distribution system and the logistics warehouses are

located in 17 provinces has 30 large-and-small logistics warehouses covering an area of about 113800 square

meters in total.The company conducts scientific planning for the logistics network in Guangdong and Guangxi which adapts to

the wholesale and retail integration strategy of Sinopharm Accord supports the construction of the national

emergency material guarantee system; the company modernizes the original warehouses and uses robots and

other automation technologies to improve productivity.

4. The advantages of medical insurance resources

Regarding medicine retails the subsidiaries of Guoda Drugstore have featured generally higher medical insurance

acquiring ability with higher medical insurance sales ratio and steady operation.

5. The advantages of Compliance

In the process of operation and management the company always emphasizes and strictly requires legal

compliance which has a great advantage in the face of current situation of tighter policy supervision.

6. Unique-influence Sinopharm brand

Brand of the Company and distribution industry child-brand and controlling shareholder and actual controller’s

brand come down in one continuous line depending on powerful force of central enterprises the Company’s

popularity and influence are prominent day by day in the industry.Section IV. Discussion and Analysis of Business

I. Introduction

In the first half of 2020 in the face of the sudden novel coronavirus pneumonia epidemic all employees of

Sinopharm Accord fully implemented the original intention and mission of the pharmaceutical central enterprise

and gave full play to the role of the national team and main force of the pharmaceutical central enterprise.

Affected by the novel coronavirus epidemic on the one hand public medical institutions were directly affected

during the epidemic mainly reflected in the general decrease in outpatients the sharp decline in hospitalization

and surgery the sharp decline in hospital operating income and the sharp decline in the purchase of drugs and

instruments; on the one hand the epidemic brought about changes in consumer habits people reduced the

frequency of going out and the flow of people reduced the sales volume of prescription drugs in hospitals and

pharmacies decreased significantly. At the same time citizens have generally tried e-commerce online business

and online retail pharmaceutical sales have shown a rapid growth trend. Under the overall operating pressure in

the first half of 2020 the company completed a total of 27.17 billion yuan in operating revenue a year-on-year

increase of 6.14%; realized operating profit of 1.014 billion yuan a year-on-year increase of 5.94%; net profit

attributable to shareholders of listed companies was 643 million yuan a year-on-year decrease of 0.88%.

Among them the distribution business of Sinopharm Accord cumulatively completed operating revenue of 18.982

billion yuan a decrease of 2.54% on a year-on-year basis and realized a net profit of 405 million yuan an

increase of 0.38% on a year-on-year basis.Guoda Drugstore cumulatively completed a total of 8.613 billion yuan in operating revenue a year-on-year

increase of 32.94% and realized a net profit of 248 million yuan a year-on-year increase of 33.96%. Guoda

Drugstore’s cumulative net profit attributable to the parent company was 180 million yuan a year-on-year

increase of 21.96%.The company's accumulated investment income in associates was 134 million yuan a year-on-year decrease of

21.01%.

(i) The performance of key tasks in the first half of the year

1. Seized opportunities for investment mergers and acquisitions and promoted nationwide distribution in

many ways

(1) Deepened the distribution network layout: further completed the distribution of blank areas in Guangdong and

Guangxi and implemented secondary distribution in key regions and county markets.

(2) National distribution of the retail network: Guoda Drugstore fully undertook prescription outflows quickly

covered key areas through mergers and acquisitions and connected medical insurance policies and outpatient

specific items and outpatient designated chronic disease qualifications.

As of the disclosure date Guoda Drugstore has delisted and acquired 100% equity of Chengda Fangyuan

Pharmaceutical Group Co. Ltd. ("Chengda Fangyuan" for short) and completed the industrial and commercial

change registration on July 30 2020. As of the end of 2019 Chengda Fangyuan had more than 1500 stores in 5

provinces and 19 cities covering some key cities in Liaoning Jilin Inner Mongolia Shandong and Hebei.

2. Completed the optimization of information organization structure and implemented the digital

transformation project

The company established an information technology center to simulate "demutualization" operation and

management and promoted the transformation and upgrading of the supply chain through a clear digital

implementation path:

(1) Deepened integrated management and control: achieved unification through standardization and obtained the

best order thereby reduced costs and improved efficiency.

(2) Improved visualization experience: realized business visibility accuracy and traceability through the Internet

of Things big data and other technological information methods.

(3) Promoted digital transformation: strengthened capabilities in business decision-making business operation

marketing design and risk management and control through data analysis.

3. Promoted the integration of supply chain integrated national logistics resources to improve efficiency

(1) Guoda Drugstore completed the collection of the address list of some network nodes including the warehouse

address information of more than 30 logistics centers in the country and the address information of more than

5000 stores nationwide of Guoda Drugstore; completed the flow direction and flow analysis of some nodes in the

national multi-warehouse model including the flow direction and flow analysis report on the centralized

procurement at the Guoda Headquarters and planned the national logistics network around the strategic goal of

the integration of wholesale and retail to realize the linkage of multiple warehouses across the country.

(2) Actively promoted logistics optimization projects and management improvement

Completed the supply chain ex-warehouse visualization of 10 logistics/distribution centers including Guangzhou

warehouse Foshan warehouse and Shenzhen warehouse.

4. Distribution business: rapidly responded improved quality and efficiency and promoted the business

deployment of one body with two wings

During the epidemic the company's distribution business deployment of one body with highlighted its anti-risk

capabilities. Among them retail direct sales retail diagnosis and treatment and devices consumables businesses

maintained a growth higher than the overall average growth rate. In the first half of 2020 hospital direct sales

revenue was 11.516 billion yuan a year-on-year decrease of 7.6%; primary medical sales revenue was 974 million

yuan a year-on-year decrease of 8.1%; retail direct sales revenue was 3.412 billion yuan a year-on-year increase

of 17.0%; retail clinic sales revenue was 770 million yuan a year-on-year increase 24.4%; sales revenue of

devices consumables was 2.179 billion yuan a year-on-year increase of 40.4%.

(1) Actively responded to policy changes

Consortium Centralized Procurement (4+7 expansion): In Guangdong region the point distribution ratio of the

company was 100%; the second batch of national centralized procurement: the point distribution ratio of the

company was 97.87%; national negotiations: the point distribution ratio of the company was 99.15%.In Guangxi region the point distribution ratio of the company was 80%; the second batch of national centralized

procurement:the point distribution ratio of the company was 63%; the first batch of GPO in Guangxi the point

distribution ratio of the company was 76%.

(2) Retail direct sales: The number of single stores in the province reaches 6613 with an increase of 1800 the

opened member stores total 628 and there are 279 stores near the hospitals. During the epidemic retail direct

medical e-commerce grew rapidly with sales of 644 million yuan a year-on-year increase of 28%.

(3) Retail diagnosis and treatment: There are 83 stores in Guangdong and Guangxi including 62 in Guangdong

and 21 in Guangxi.Retail diagnosis and treatment explored the strategic layout of multi-modal prescription circulation projects

consolidated first-mover advantages through departmental linkage and cooperated with more than 10 platforms.Retail diagnosis and treatment explored different levels of medical insurance designated qualifications: obtained

medical insurance coordinating designated qualifications for the "outpatient specific disease outsourcing +

outpatient chronic disease drug outsourcing" in 9 cities in Guangdong and Guangdong and actively explored

access to related characteristic models through "Internet + medical insurance co-ordination". Became the

designated point of commercial supplementary medical insurance outsourcing in Zhuhai Shenzhen Foshan and

other places and developed the first insurance file system in the province.Retail diagnosis and treatment innovated online live broadcast of patient education and launched 25 online live

broadcasts of patient education including 5 broadcasts on the independent platform.

(4) Devices consumables: Realized business informatization realized the promotion of the new consignment

model across the whole province; completed the promotion of the consignment closed-loop management mode of

2 pilot hospitals; realized the interface interconnection of the provincial platform consumable network and helped

the consumable business to develop and accelerate the promotion of SPD in a number of hospitals in Guangzhou

Shenzhen and in the province and advanced the implementation of SPD in 6 hospitals in Guangdong Province in

the first half of the year.

5. Guoda Drugstore: seized opportunities strengthened innovative business layout and consolidated basic

capabilities for high-quality development

As of June 30 2020 the number of total stores of Guoda Drugstore reached 5838 of which 4516 were directly

operated and 1322 were franchised. During the epidemic the performance of Guoda Drugstore showed a steady

growth trend and policies such as prescription outflow brought revenue growth to retail pharmacies. Various

business types have been developing steadily among them direct sales revenue was 5.10 billion yuan a

year-on-year increase of 32.78% DTP sales revenue was 972million yuan a year-on-year increase of 19.34%

OTO sales revenue was 115 million yuan a year-on-year increase of233.53% franchise business sales revenue

was 634 million yuan a year-on-year increase of 14.13%.

(1) Comprehensive development of e-commerce business in multiple formats

Self-operated e-commerce platform: realized sales of 17.04 million in the first half of the year an increase of

731% on a year-on-year basis. During the epidemic the importance of the platform became prominent the

company reorganized the positioning of the platform introduced products suitable for self-operated e-commerce

sales launched mask reservation service and increased the number of fans on the official account by millions.Third-party O2O platform: sales reached 115 million in the first half of the year an increase of 262% on a

year-on-year basis daily order quantity exceeded 20000 and prescription drug sales accounted for 20%. The

number of online stores on third-party platforms (Meituan Eleme JD Daojia and AliHealth) has reached 4000

and 180 night sales stores have been opened. At the same time third-party O2O channels such as platform

haoyisheng and JD Health have been introduced.

Category: key cooperative suppliers carried out O2O business linkage formulated exclusive regional hot-selling

product catalogs for all regional companies across the country created online core hot items and used hot items to

achieve drainage.

(2)Professional service ability improvement

Chronic disease management: Guoda Drugstore continued to strengthen chronic disease management and

professional service improvement developed a chronic disease core product catalog and tracked the selection

stocking and sales of chronic disease core products of various companies; developed gout hyperlipidemia and

coronary heart disease projects for Healthy Communities formulated relevant catalogs and set up return visits;

gradually improved the ability of pharmaceutical services by improving the quality of specialist cases.Member management: Guoda Drugstore analyzed member data carried out store basic service improvement and

customer satisfaction surveys and improved professional services; newly added chronic disease projects for

Healthy Communities; promoted the establishment of member management platform and Enterprise WeChat and

member platforms have been connected ( It has been piloted in Jiangmen and Guangxi).The Company complies with the disclosure requirement of “Information Disclosure Guidelines for the ShenzhenStock Exchange No. 8- Listing Company Engaged in Retailing Industry”

(ii) The entity business operations and the business condition of the stores during the reporting period:

1. As of the end of June 2020 Guoda Drugstore had 4516 direct-operated stores with sales revenue of 6.22

billion Yuan(tax excluded); 1322 franchise stores with distribution revenue of 625 million Yuan(tax excluded).Region Direct-sale store Franchised outlet

Numbers

Sales revenue

(in 10 thousand

Yuan)

Y-o-y changes

(+-)

Numbers Distribution revenue

(in 10 thousand

Yuan)

Y-o-y changes (+-)

North 2444 340601.16 33.63% 464 25759.82 19.72%

East China 944 127857.82 19.54% 596 28721.64 8.23%

South China 565 85374.96 29.11% 142 4683.08 13.31%

Central China 291 32087.48 29.55% 120 3299.93 27.61%

Northwest 272 36069.32 44.25% - - -

Total 4516 621990.74 30.20% 1322 62464.47 14.04%

Note:

North: Liaoning Shanxi Inner Mongolia Beijing Tianjin Hebei Jilin;

East China: Shanghai Jiangsu Anhui Shandong Fujian Zhejiang;

South China: Guangdong Guangxi Yunnan;

Central China: Henan Hunan;

Northwest: Ningxia Xinjiang.

(1) Top 10 stores in sales:

Serial Region Name

Year for starting

business

Operating mode

Business

activity

Actual operating

area (in M2)

Property

belonging

1 Inner Mongolia HQ 2003 Direct-sale 5+X 1689.26 Rental

Guangdong Shenzhen

Exhibition Hall

2006 Direct-sale

Modern

pharmacy

260.00 Rental

Jiangsu

Jiangsu Baiyulan 1991 Direct-sale

Modern

pharmacy

970.00 Rental

4 Shanxi Er Yuan Branch 2011 Direct-sale 5+X 629.90 Rental

5 Hebei Le Ren Tang HQ 2010 Direct-sale TCM diagnosis 1206.00 Rental

shops

6 Shanxi Zhongli Branch 2002 Direct-sale 5+X 821.80 Rental

7 Beijing Xidan Jinxiang 1997 Direct-sale

Modern

pharmacy

773.16 Rental

Fujian Xiamen New

Special Medicine

2005 Direct-sale

Modern

pharmacy

132.90 Rental

9 Shanxi Kangweier Branch 2003 Direct-sale

Modern

pharmacy

106.80 Rental

10 Henan

Zhongxin Store of

Sinopharm

Holding Guoda

Durgstore Henan

Chain Co. Ltd.

2002 Direct-sale

Modern

pharmacy

830.00 Rental

(2) In first half of 2020 207 new direct-sale stores opened and 87 stores shut down net increase of 120 stores.

Region

Direct-sale store Franchised outlet

Number of store

increased

Total area(in M2)

Number of stores

shut down

Number of store

increased

Number of stores shut

down

North 154 19585.75 -35 15 -11

East China 13 4553.63 -28 4 -13

South China 22 3760.37 -14 19 -2

Central China 6 1354.00 -7 4 -

Northwest 12 1913.24 -3 - -

Total 207 31166.99 -87 42 -26

(3) Medical insurance qualification of the stores

As of 30 June 2020 the Company has 4516 chain stores with directly selling and 3874 pharmacy stores obtained

the qualification of “Designated retail pharmacies of medical insurance” representing 86% of the total pharmacies

of the Company.Region Number of stores

Stores obtained the qualificationof “Designated retailpharmacies of medical

Ratio in total pharmaciesinsurance”

North 2444 2198 90%

East China 944 704 75%

South China 565 483 85%

Central China 291 245 84%

Northwest 272 244 90%

Total 4516 3874 86%

(4) Change of main selling index

(5) Operating efficiency of direct-sale stores in reporting period:

Note: Daily average efficiency=Average daily operating income/Operating area of the stores;

Period

Per customer

transaction (RMB)

Proportion of

prescription drugs

Proportion of medical

insurance sales in

direct-sale stores

Proportion of the

direct member sales

Proportion of transaction

times of direct members

First half year

of 2019

77 53% 38% 66% 55%

First half year

of 2020

83 51% 37% 65% 55%

Region

Number of

stores

Operating area of the stores

(square meters)

Daily average efficiency

(tax-included Yuan/Square

Meters)

Rental efficiency (tax-included)

North 2444 297260 78 15

East China 944 117870 91 14

South China 565 62687 88 17

Central China 291 34692 65 14

Northwest 272 32746 69 23

Average daily operating revenue=Operating revenue (tax-included) of the store in the Year/Operating days of store

in the Year.Rental efficiency= Sales volume/Rental

(6) Structure of the category at retail terminal

Category First half of 2020 First half of 2019

Health food 5.15% 6.49%

Convenience food 0.93% 0.93%

Rx Drug 51.13% 52.94%

OTC 24.30% 27.23%

Personal care 4.49% 5.71%

Home convenience 1.50% 1.21%

Household health products 0.49% 0.27%

Chinese Herbal Medicine 9.71% 4.97%

Proportion of other categories 2.30% 0.25%

2. In first half of 2020 online sales developed in a steady pace the sale amount in B2C amounted as 132 million

yuan (tax excluded) in total and total sales in O2O business was 115 million yuan(tax excluded). Details are:

In 10 thousand Yuan

Cooperation platform Sales amount (tax excluded)

B2C 13275.22

O2O 11526.55

Total 24801.77

3. Procurement inventory and supplier from the headquarter: top 5 suppliers in first half of 2020:

In 10 thousand Yuan

Ranking Procurement amount (tax included) Purchase ratio

No. 1 11854 14%

No. 2 6381 8%

No. 3 6357 8%

No. 4 5016 6%

No. 5 4375 5%

4. Warehousing and logistics:

As of 30 June 2020 Guoda Drugstore has 30 large and small sized logistic warehouses in total covering more

than 113800 square meters spreading out across 19 provinces.Province Region Warehouse area (M2) Management ownership

Liaoning Shenyang 18821 Self-management

Guangdong

Guangzhou

/ DelegationShenzhen

Jiangmen

Shanxi

Shanxi Wanmin 10919 Self-management

Shanxi Yiyuan / Delegation

Jiangsu

Dadesheng 4869 Self-management

Nanjing 2200 Self-management

Liyang 1920 Self-management

Fujian

Fujian 5628 Self-management

Quanzhou 1096 Self-management

Hebei Hebei / Delegation

Shandong Shandong 4800 Self-management

Ningxia Ningxia 3000 Self-management

Hunan Hunan 4717 Self-management

Henan

Henan 3610 Self-management

Zhengzhou / Delegation

Inner Mongolia Inner Mongolia 5236 Self-management

Guangxi Guangxi 1950 Self-management

Beijing

Beijing Guoda

/ Delegation

Beijing Jinxiang

Tianjin Tianjin / Delegation

Anhui Anhui 1000 Self-management

Xinjiang Xinjiang 3517 Self-management

Shanghai Shanghai Fumei 20000 Self-management

Shanghai Guoda

Zhejiang Hangzhou 974 Self-management

HQ of Guoda HQ / Delegation

Jilin Yihe Jilin Yihe / Delegation

Pu’er Songmao Pu’er Songmao 1895 Self-management

Pudong Medicine Pudong Medicine 17680 Self-management

Total 113832

5. Goods suppliers of Guoda Drugstore are mainly external suppliers and assist affiliated enterprise of

SINOPHARM and private brands. As of first half year of 2020 sales information are as:

In 10 thousand Yuan

Self-brand Nature Type Sales amount (tax included) Proportion

a In OEM Health food 1074 0.16%

b In OEM Children 12 0.00%

c In OEM Gynaecology 11 0.00%

d In OEM Household health 4311 0.63%

e In OEM Anti-infection 25 0.00%

f In OEM Anti-allergy & anti-vertigo 4 0.00%

g In OEM Endocrine 2 0.00%

h In OEM Clearing away heat & toxic

materials

244 0.04%

i In OEM Drugs for external use 208 0.03%

j In OEM ENT dept. 134 0.02%

k In OEM Chinese Herbal Medicine 1586 0.23%

Total 7611 1.11%

6. Member management and service business

As of June 30 2020 the company's membership sales accounted for 65% a decrease of 1 percentage point

compared with the membership sales of 66% in 2019. At the same time the number of member transactions in

2020 has increased by 26% on a year-on-year basis. The proportion of member transactions in total transactions

increased from 54.8% in 2018 to 55.3% in 2020. The number of member transactions has maintained a steady

annual growth during the continuous improvement of sales which played a key supporting role in the steady

improvement of the company's performance.The company has improved its operating efficiency by optimizing the product structure. In the first half of 2020

the unit price of company members was 119 yuan which was 1.13 times higher than that of non-member

customers of 56 yuan.II. Main business analysis

Found more in I. Introduction in Discussion and Analysis of Business

Y-o-y changes of main financial data

In RMB

Current period Same period of last year

Y-o-y

increase/decr

ease

Reasons for changes

Operating revenue 27169940188.52 25599198815.30 6.14% No major changes

Operating costs 23971029719.44 22712876604.19 5.54% No major changes

Selling expenses 1728738818.60 1541285047.94 12.16% No major changes

Administration expenses 443287144.92 391848337.91 13.13% No major changes

Finance expenses 65313829.62 64987758.92 0.50% No major changes

Income tax expenses 210106764.35 192124358.84 9.36% No major changes

Net cash flow arising

from operating activities

1438204043.35 1139154120.89 26.25% No major changes

Net cash flow arising

from investment

activities

-666346816.87 -105516061.35 -531.51%

Decreased 531.51% on a y-o-y basis

mainly due to the cash paid for

acquisition of Shanghai Dingqun

Enterprise Management Consulting

Co. Ltd.by subsidiary Guoda

Drugstore and there was no such

event in the same period of last year.Net cash flow arising

from financing activities

-1197318438.51 -893012855.18 -34.08%

Decreased 34.08% on a y-o-y basis

mainly because number of stores

increased during the Period and rent

payment increased accordingly; and

the investment amount paid for

subsidiary(Pudong New Area of

Shanghai Pharmaceutical Medicine

Ltd) combined under the same

control by Guoda Drugstore

Net increase of cash and

cash equivalent

-425509148.00 140448637.11 -402.96%

Decreased 402.96% on a y-o-y basis

mainly due to the acquisition amount

paid in the period from Guoda

Drugstore there was no such event

in the same period of last year.Major changes on profit composition or profit resources in reporting period

□ Applicable √ Not applicable

No major changes on profit composition or profit resources occurred in reporting period.

Constitution of operation revenue

In RMB

Current period Same period last year

Increase/decrease

y-o-yAmount

Ratio in operation

revenue

Amount

Ratio in operation

revenue

Total of operation

revenue

27169940188.52 100% 25599198815.30 100% 6.14%

According to industries

Pharmaceutical

distribution

19185884075.68 70.61% 19232044967.89 75.13% -0.24%

Retail pharmacy 7876117404.69 28.99% 6278130158.65 24.52% 25.45%

Other 107938708.15 0.40% 89023688.76 0.35% 21.25%

According to products

Pharmaceuticals 24375725625.65 89.72% 23743125701.29 92.75% 2.66%

Medical devices and

disposables

2185440182.47 8.04% 1320195827.34 5.16% 65.54%

Diagnostic reagent 335716038.17 1.24% 347786617.78 1.36% -3.47%

Medical equipments 165119634.08 0.61% 99066980.13 0.39% 66.67%

Other 107938708.15 0.39% 89023688.76 0.34% 21.25%

According to region

China 27169940188.52 100.00% 25599198815.30 100.00% 6.14%

About the industries products or regions accounting for over 10% of the company’s operating income or operating profit

√Applicable □ Not applicable

In RMB

Operating revenue Operating cost

Gross profit

ratio

Increase/decrease

of operating

revenue y-o-y

Increase/decrease

of operating cost

y-o-y

Increase/decrease

of gross profit

ratio y-o-y

According to industries

Pharmaceutical

distribution

19185884075.68 18023920190.08 6.06% -0.24% -0.17% -0.06%

Retail pharmacy 7876117404.69 5921911082.38 24.81% 25.45% 27.76% -1.36%

According to products

Pharmaceuticals 24375725625.65 21528380814.97 11.68% 2.66% 2.01% 0.57%

According to region

China 27169940188.52 23971029719.44 11.77% 6.14% 5.54% 0.49%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main business based on

latest one year’s scope of period-end

□Applicable √Not applicable

Reasons for the above 30% changes in relevant data on a y-o-y basis

√Applicable □Not applicable

In this period Medical devices and disposablesand Medical equipments increased by 65.54% and 66.67% respectively over the same

period of the previous year mainly due to the implementation of the company's development strategy adjustment of business

structure transformation and vigorous promotion of innovative business development.III. Analysis of the non-main business

□Applicable √ Not applicable

IV.Analysis of assets and liabilities

1. Major changes of assets composition

In RMB

End of current period End of last period

Ratio

changes

Notes of major changes

Amount

Ratio in total

assets

Amount

Ratio in total

assets

Cash and bank

balances

8239840227.80 21.87% 8092738303.99 23.75% -1.88% No major changes

Accounts

receivable

13892695134.41 36.88% 11926115915.38 35.00% 1.88% No major changes

Inventories 5344906740.17 14.19% 5008443509.60 14.70% -0.51% No major changes

Investment

properties

130090605.82 0.35% 140319140.00 0.41% -0.06% No major changes

Long-term equity

investment

2142161636.01 5.69% 2077811395.30 6.10% -0.41% No major changes

Fix assets 716847033.81 1.90% 694088419.39 2.04% -0.14% No major changes

Construction in

process

29000528.39 0.08% 38138362.71 0.11% -0.03% No major changes

Short-term

borrowings

3710647467.19 9.85% 3290877595.23 9.66% 0.19% No major changes

2. Assets and liability measured by fair value

√Applicable □Not applicable

In RMB

Item

Opening

amount

Gain/loss of

changes in

fair value

Cumulative

changes of

fair value

reckoned into

equity

Impairment

accrual in the

Period

Amount

purchased in

the Period

Amount sold

in the Period

Other

changes

Ending

amount

Financial

assets

Other equity

instrument

investment

116021000.0

102335240.

116021000

.00

Other

non-current

financial

assets

140000000.0

-19027649

.76

120972350

.24

Receivable

financing

446342588.4

-46452938

.45

399889650

.01

Total of above

702363588.4

102335240.

-65480588

.21

636883000

.25

Financial

liability

0.00 0.00

Content of other changes

1. Other non-current financial assets were the fair value of the shares of Sinopharm Zhongjin Medical Industry Fund (hereinafter

referred to as "Industry Fund") subscribed by the Company. Other changes were the withdrawal of fund investment projects and part

of the investment cost of the withdrawal of projects was returned according to the agreement.

2. In the financing of receivables other changes were caused by changes in bank acceptance bills held in the current period.

Whether the measurement attribute for main assets of the Company have changed significantly in the reporting period

□Yes √No

3. Assets right restriction till end of reporting period

Nil

V. Investment

1. Overall situation

√Applicable □ Not applicable

During the reporting period the company paid cash to acquire the equity of Shanghai Dingqun Enterprise

Management Consulting Co. Ltd. (100%) and Beijing Jinxiang Guoxing Pharmaceutical Co. Ltd. (100%)

realizing the business combination not under the same control of these two companies and paying cash for the

acquisition of equity (85%) of Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. and achieved

business combination under the same control. The company newly established subsidiaries Guoda Drugstore

(Rizhao) Co. Ltd. (100%) and Liaoning Guoda Health Pharmacy Co. Ltd. (100%).

During the reporting period the company paid cash to acquire the business assets of 43 directly-operated stores

and the operating rights of 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co. Ltd.

During the reporting period the company increased capital (100%) to Sinopharm Holding Maoming Co. Ltd..

After the capital increase was completed the shareholding ratio remained unchanged.

For specific investment please refer to note (VIII) and (IX) of the financial report.

2. The major equity investment obtained in the reporting period

□Applicable √ Not applicable

3. The major non-equity investment doing in the reporting period

□Applicable √ Not applicable

4.Financial assets measured by fair value

√Applicable □Not applicable

In RMB

Type

Initial

investment cost

Gain/loss of

changes in

fair value

Cumulative

changes of fair

value reckoned

Amount

purchased in

the Period

Amount

sold in the

Period

Cumulative

investment

income

Ending amount

Capital

source

into equity

Other 13685760.00 0.00 102335240.00 0.00 0.00 4397810.94 116021000.00 Own funds

Other 140000000.00 0.00 0.00 0.00 0.00 4109881.90 120972350.24 Own funds

Total 153685760.00 0.00 102335240.00 0.00 0.00 8507692.84 236993350.24 --

5. Financial assets investment

(1) Securities investment

□Applicable √ Not applicable

The Company had no securities investment in the reporting period.

(2) Derivative investment

□Applicable √ Not applicable

The Company has no derivatives investment in the Period

VI. Sales of major assets and equity

1. Sales of major assets

□Applicable √ Not applicable

There are no major assets sell in the period

2. Sales of major equity

□Applicable √ Not applicable

VII. Analysis of main holding Company and stock-jointly companies

√Applicable □ Not applicable

Particular about main subsidiaries and stock-jointly companies net profit over 10%

In RMB

Company

name Type Main business

capital Total assets Net assets

Operating

revenue

Operating

profit Net profit

Sinopharm

Holding

Guangzhou

Co. Ltd.

Subsidiar

"Sales of drugs

medical apparatus

and instruments

freightage

storage loading

and unloading

glass wares

355324939

3.17

146368442

88.53

434345376

4.32

140239720

75.91

36920026

7.47

273272949.71

cosmetics and

daily merchandise;

other business

services other

professional

consultation

various goods

agency and for

self-operation

import & export of

technology houses

leasing"

Sinopharm

Holding

Guoda

Drugstore

Co. Ltd.

Subsidiar

"Chinese

traditional patent

medicine

chemical

preparations

antibiotics

bio-chemical

medicine

biological

medicine

diagnosis

medicine

biological

medicine with

features of

treatment and

diagnosis

shaped packing

food chemical

products and

various

commodity

and technique

hold by

self-support

and agency as

well as import

& export of

technology"

168333333

3.00

134955797

32.65

535609365

2.12

861302030

9.15

33018874

7.31

248037573.90

Sinopharm

Holding

Subsidiar

"Retail and

distribution in

521407965.

423276365

8.66

107079735

8.69

300932242

7.21

99295363

.01

85991211.39

Guangxi Co.Ltd.respect of

pharmaceutical

products and

medical apparatus

and instruments

wholesale and

retails of health

products"

Particular about subsidiaries obtained or disposed in report period

√Applicable □ Not applicable

Company

The method of obtaining and handling

subsidiaries during the report period

The influence to the whole production and

performance

Shanghai Dingqun Enterprise Management

Consulting Co. Ltd.

Acquisition

Expand the layout of wholesale and retail

business and without major influence on

performance of the Company

Beijing Jinxiang Guoxing Pharmaceutical

Co. Ltd.

Acquisition

Expand local medicine retail business

layout and without major influence on

performance of the Company

Pudong NewArea of Shanghai

Pharmaceutical Medicine Ltd.

Acquisition

Expand the layout of wholesale and retail

business and without major influence on

performance of the Company

Guoda Drugstore (Rizhao) Co. Ltd. Establishment

Expand local medicine retail business

layout and without major influence on

performance of the Company

Liaoning Guoda Health Pharmacy Co.Ltd.

Establishment

Expand local medicine retail business

layout and without major influence on

performance of the Company

Notes of main holding Company and stock-jointly companies

VIII. Structured vehicle controlled by the Company

□ Applicable √ Not applicable

IX. Prediction of business performance from January – September 2020

Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the

warning of its material change compared with the corresponding period of the last year and explanation on reason

□Applicable √ Not applicable

X. Risks and countermeasures

1.Risks of changes in industry policy

With the continuous deepening of new medical reform the pharmaceutical industry frequently releases policies

and the operating environment of the industry has major changes affected by the “4 + 7” centralized procurement

linkage and expansion the GPO in Guangdong and Guangxi provinces and the continuous expansion of the

national talks and other policies the drug price has continued to drop sharply and the company’s profit margin is

facing the risk of further compression. The supervision has been continuously upgraded the introduction of the

new Drug Administration Law and the implementation of the “four strictest” put forward higher requirements for

the compliance operation of pharmaceutical enterprises the pharmaceutical circulation industry faces increased

risks of uncertain compliance. The company will respond to the impacts of industry policies by transforming and

upgrading its business structure exploring new profit models and improving its risk management and control

capabilities.

2. Management risks of the continuous expansion of marketing network of Guoda Drugstore

Through the continuous opening of new stores and extended M & A the marketing network of Guoda Drugstore

has maintained a steady growth trend in recent years. The expansions of the sales areas and the increase in the

number of stores have put pressure on the store location distribution cash management marketing and human

resource management of Guoda Drugstore. The company will strengthen management and construction in the

commodity procurement logistics and delivery sales and other links and formulate corresponding management

measures in each link to ensure unified standards and management quality for store expansion and at the same

time strengthen integration and control of new merged stores.

3. Risks of intensifying market competition

As the country continues to introduce corresponding policies to encourage the integration of pharmaceutical retail

industry the major pharmaceutical retail enterprises in the industry have accelerated the pace of mergers and

acquisitions and continued to expand the marketing networks improve the logistics center constructions and

innovate the business and profit models so that the sales scale and comprehensive strength continuously

strengthen. At the same time with the upgrading of consumption and the gradual opening of market the foreign

pharmaceutical distribution enterprises with powerful strength are entering the domestic pharmaceutical

distribution markets through a variety of ways so the industry competition is further intensifying. In addition the

cross-border competitors with internet genes have quickly penetrated into the company’s traditional business

fields which brought certain challenges to the company’s business model.The company will continue to integrate existing resources deepen the strategic development initiatives with

wholesale-retail integration as the core and deeply give play to the synergies directly face the terminal patients

and consumers through complementary varieties capital collaboration supply chain collaboration and

international promotion and continuously increase investment in scientific and technological innovation and

actively respond to cross-border competition.

4. Risks of facing the horizontal competition

In the pharmaceutical retail field Sinopharm Holding’s affiliated distribution subsidiaries have also opened some

social retail pharmacies which constitute a certain degree of horizontal competition with the subordinate Guoda

Drugstore. Sinopharm Holding and SINOPHARM have pledged to take effective measures to resolve the possible

horizontal competition.

5. The risk of goodwill impairments

On 30 June 2020 the book value of goodwill in consolidate financial statement listed as 1564931605.00 Yuan

and distributed to the assets group of distribution business and retail business. In accordance with the Accounting

Standards for Business Enterprises the Company carried out annual impairment test for the goodwill.Impairment of goodwill will released on the Note V.-32 and Note VII-28 listed under the Financial Statement

国药集团一致药业股份有限公司 2020年半年度报告全文

Section V. Important Events

I. In the report period the Company held annual shareholders’ general meeting and

extraordinary shareholders’ general meeting

1. Shareholders’ General Meeting in the report period

Session of meeting Type

Ratio of investor

participation

Date Date of disclosure Index of disclosure

Annual General

Meeting of 2019

AGM 66.62% 2019-05-15 2019-05-16

Juchao

Website—(http://ww

w.cninfo.com.cn)

"Resolution Notice

of AGM of 2019

No.: 2020-17

2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore

□Applicable √ Not applicable

II. Profit distribution plan and capitalizing of common reserves plan for the Period

□Applicable √ Not applicable

The Company has no plans of cash dividend distributed no bonus shares and has no share converted from capital reserve either for

the semi-annual year.III. Commitments completed in Period and those without completed till end of the Period

from actual controller shareholders related parties purchaser and companies

√Applicable □ Not applicable

Commitments Promise

Type of

commitments

Content of commitments

Comm

itment

date

Commitment

term

Implementatio

Commitments

in assets

reorganization

Sinopharm Group

Co. Ltd;China

National

Pharmaceutical

Foreign Trade

Corporation

Commitment

on restricted

"Sinopharm Group and Sinopharm

Foreign Trade made commitments in

the Report about China National

Accord Medicines Corporation Ltd.

Purchasing Assets and Raising

Supporting Funds and Related

Transactions by Asset Sale Stock

2016-

36 months Completed

国药集团一致药业股份有限公司 2020年半年度报告全文

Issuance and Cash Payment that the

non-public offering of shares of

Sinopharm Accord obtained from

this transaction shall not be

transferred within 36 months since

the finish date of issuance and shall

be unlocked after 36 months since

the date of listing. Within 6 months

after the completion of this

transaction if the closing price of the

stock of Sinopharm Accord is less

than the issue price in continuous 20

trading days or the closing price at

the end of 6 months after the

completion of this transaction is less

than the issue price the lockup

period of the stock of Sinopharm

Group and Sinopharm Foreign Trade

obtained from Sinopharm Accord by

this transaction will automatically

prolong at least 6 months. The shares

derived from stock dividends

allocation and capital reserve

increase transferring of Sinopharm

Accord based on the non-public

offering of shares of Sinopharm

Accord obtained by this transaction

should also abide by the above stock

restricted arrangements."

Ping’an Assets

Management Co.Ltd

Commitment

on restricted

"Ping An Asset Management Co.Ltd. made commitments in the

Report about China National Accord

Medicines Corporation Ltd.Purchasing Assets and Raising

Supporting Funds and Related

Transactions by Asset Sale Stock

Issuance and Cash Payment that the

non-public offering of shares of

Sinopharm Accord obtained from

this transaction shall not be

transferred within 36 months since

the finish date of issuance and shall

be unlocked after 36 months since

the date of listing. After placement

2016-

36 months Completed

国药集团一致药业股份有限公司 2020年半年度报告全文

completed the shares of the listed

Company increased due to bonus

shares and turning to increase capital

should pursuit to the restriction

arrangement the above mentioned.

Completed on

time (Y/N)

IV. Appointment and non-reappointment (dismissal) of CPA

Financial report has been audit or not

□ Yes √ No

Not been audited.

V. Explanation from Board of Directors Supervisory Committee for "Qualified Opinion"

that issued by CPA

□Applicable √ Not applicable

VI. Explanation from the Board for "Qualified Opinion" of last year’s

□Applicable √ Not applicable

VII. Bankruptcy reorganization

□Applicable √ Not applicable

No bankruptcy reorganization for the Company in Period.VIII. Lawsuits

Material lawsuits and arbitration

□ Applicable √ Not applicable

No significant lawsuits and arbitration occurred in the reporting period.Other lawsuits

As of June 30 2020 the Company has 17 cases of contract disputes in the daily operation with total amount of 22335300 yuan

involved; 4 cases of intellectual property infringement disputes with total amount of 15.381 million yuan involved; 3 cases of equity

transfer disputes with amount of 91.9546 million yuan involved; 1 case of medical product liability dispute with amount of 21.5888

million yuan involved; 2 cases of lease contract disputes with amount of 497100 yuan involved; 3 cases of labor disputes with

amount of 362100 yuan involved; 1 case of noise pollution dispute with amount of 31800 yuan involved.The total amount involved in the above 31 cases was 152151000 yuan which neither formed the expected liabilities nor had an

effect on normal operation and management of the Company.国药集团一致药业股份有限公司 2020年半年度报告全文

IX. Media questioning

□Applicable √Not applicable

During the reporting period the company had no media generally questioned matters.

X. Penalty and rectification

□Applicable √ Not applicable

No penalty and rectification for the Company in Period.XI. Integrity of the Company and its controlling shareholders and actual controllers

√Applicable □ Not applicable

In the reporting period integrity of the Company and its controlling shareholders and actual controllers is good and they do not have

a relatively large amount of due existing debt with court's effective judgments.XII. Implementation of the Company’s stock incentive plan employee stock ownership plan

or other employee incentives

□Applicable √ Not applicable

The Company has no equity incentive plan employee stock ownership plans or other employee incentives in Period.XIII. Major related transaction

1. Related transaction with routine operation concerned

(1) Related transaction with routine operation concerned can be found in "12. Related party and related transaction" carried in

Section XI. Financial Report;

(2) The related transactions are settled in cash and by notes according to the "Proposal of Expected Routine Related Transactions

with Subordinate Enterprise for Year of 2020" was deliberated and approved by 15th session of 8th BOD held on 20 April 2020 and

"Announcement on Expected Routine Related Transaction for Year of 2020" (Notice No.: 2020-10) released on 22 April 2020 in the

reporting period related sales takes 35.89% in total expected amount for the whole year and related procurement takes 41.14% in

total expected amount for the whole year.

2. Related transactions by assets acquisition and sold

□Applicable √ Not applicable

No related transactions by assets acquisition and sold for the Company in reporting period.

3. Related transactions of mutual investment outside

□Applicable √ Not applicable

No main related transactions of mutual investment outside for the Company in reporting period.国药集团一致药业股份有限公司 2020年半年度报告全文

4. Contact of related credit and debt

□Applicable √ Not applicable

The Company had no contact of related credit and debt in the period.

5. Other related transactions

□Applicable √ Not applicable

The Company had no other related transaction in the period.XIV. Non-operational fund occupation from controlling shareholders and its related party

□Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.XV. Significant contract and implementations

1. Trusteeship contract and leasing

(1) Trusteeship

□Applicable √ Not applicable

No trusteeship for the Company in reporting period.

(2) Contract

□Applicable √ Not applicable

No contract for the Company in reporting period.

(3) Leasing

□Applicable √ Not applicable

No leasing for the Company in reporting period.

2. Major guarantees

√Applicable □ Not applicable

(1) Guarantees

In 10 thousand Yuan

The company and its subsidiaries' external guarantees (Barring the guarantee for subsidiaries)

Name of the

Company

Announce

Guarantee

limit

Actual date of

happening

Actual

guarantee limit

Guarantee

type

Guarantee

term Implemen Guarante

国药集团一致药业股份有限公司 2020年半年度报告全文

guaranteed ment

disclosure

date

ted (Y/N) e for

party

(Y/N)

Total amount of external

guarantee approved during the

reporting period (A1)

The total amount of external

guarantees actually occurred

during the reporting period

(A2)

The total amount of external

guarantees approved at the end

of the reporting period (A3)

Total balance of actual

external guarantees at the end

of the reporting period (A4)

The company's guarantees to subsidiaries

Name of the

Company

guaranteed

Announce

ment

disclosure

date

Guarantee

limit

Actual date of

happening

Actual

guarantee limit

Guarantee

type

Guarantee

term

Implemen

ted (Y/N)

Guarante

e for

party

(Y/N)

Sinopharm

Holding

Guangzhou Co.Ltd.

2020-04-22 33000 2020-05-20 10095.91

Joint liability

assurance

2020.05.20-2

021.05.20

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2020-04-22 60000 2020-05-20 60000

Joint liability

assurance

2020.05.20-2

021.05.19

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-08-24 60000 2019-11-29 23311.11

Joint liability

assurance

2019.11.29-2

020.11.27

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-08-24 25000 2020-03-31 17462.56

Joint liability

assurance

2020.03.31-2

021.03.30

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-04-25 15000 2019-08-07

Joint liability

assurance

2019.08.07-2

020.08.06

N Y

Sinopharm

Holding

Guangzhou Co.

2020-04-22 80000 2020-05-20 47119.27

Joint liability

assurance

2020.05.20-2

021.05.19

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Ltd.Sinopharm

Holding

Guangzhou Co.Ltd.

2019-08-24 15000 2020-01-15 10700.22

Joint liability

assurance

2020.01.15-2

021.01.14

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-08-24 35000 2019-10-15 1119.38

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-04-25 52000 2019-07-26 46951.66

Joint liability

assurance

2019.07.26-2

020.07.25

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-04-25 10000 2019-08-13

Joint liability

assurance

2019.08.13-2

020.08.12

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2019-04-25 60000 2019-08-06

Joint liability

assurance

2019.08.06-2

020.08.05

N Y

Sinopharm

Holding

Guangzhou Co.Ltd.

2020-04-22 5000 2020-06-11 581.74

Joint liability

assurance

2020.06.11-2

021.05.18

N Y

Sinopharm

Holding

Guangdong

Yuexing Co. Ltd.

2020-04-22 5000 2020-05-20 1193.23

Joint liability

assurance

2020.05.20-2

021.05.20

N Y

Sinopharm

Holding

Guangdong

Yuexing Co. Ltd.

2019-08-24 15000 2019-10-15 3829.26

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding

Guangdong

Yuexing Co. Ltd.

2019-08-24 10000 2019-12-25 4474.81

Joint liability

assurance

2019.12.25-2

020.12.24

N Y

Sinopharm

Holding

Guangdong

Yuexing Co. Ltd.

2019-04-25 5000 2019-08-06

Joint liability

assurance

2019.08.06-2

020.08.05

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Sinopharm

Holding

Guangdong

Yuexing Co. Ltd.

2019-08-24 5000 2019-09-26 1827.02

Joint liability

assurance

2019.09.26-2

020.09.25

N Y

Sinopharm

Holding

Guangdong

Hengxing Co. Ltd.

2019-08-24 10000 2019-11-28 6979.79

Joint liability

assurance

2019.11.28-2

020.10.18

N Y

Sinopharm

Holding

Guangdong

Hengxing Co. Ltd.

2019-08-24 3000 2019-11-26 2667.16

Joint liability

assurance

2019.11.26-2

020.11.25

N Y

Sinopharm

Holding Foshan

Co. Ltd.

2019-08-24 3000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Foshan

Co. Ltd.

2020-04-22 3000 2020-05-27 52.05

Joint liability

assurance

2020.05.27-2

021.03.21

N Y

Sinopharm

Holding Foshan

Co. Ltd.

2019-08-24 2500 2019-11-07 128.88

Joint liability

assurance

2019.11.07-2

020.11.06

N Y

Sinopharm

Holding Zhaoqing

Co. Ltd.

2019-08-24 2000 2019-10-15 1757.42

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Zhaoqing

Co. Ltd.

2019-08-24 2000 2019-12-23 1915.14

Joint liability

assurance

2019.12.23-2

020.12.22

N Y

Sinopharm

Holding Zhaoqing

Co. Ltd.

2020-04-22 2000 2020-06-05 745.8

Joint liability

assurance

2020.06.05-2

021.05.18

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-04-25 15000 2019-07-01 11335.32

Joint liability

assurance

2019.07.01-2

020.06.30

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-08-24 10000 2019-09-24 2886.33

Joint liability

assurance

2019.09.24-2

020.09.23

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-08-24 20000 2019-11-08 15377.95

Joint liability

assurance

2019.11.08-2

020.09.30

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-08-24 10000 2019-08-30

Joint liability

assurance

2019.08.30-2

020.08.13

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-08-24 3000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2019-08-24 10000 2020-04-07 5774.59

Joint liability

assurance

2020.04.07-2

020.10.22

N Y

Guangdong

Nanfang

Pharmaceutical

Foreign Trade Co.

Ltd.

2020-04-22 10000 2020-06-03

Joint liability

assurance

2020.06.03-2

021.05.18

N Y

Foshan Nanhai

Pharmaceutical

Co. Ltd.

2019-08-24 5000 2019-10-15 494.47

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Foshan Nanhai

Pharmaceutical

Co. Ltd.

2020-04-22 10000 2020-05-27 1979.57

Joint liability

assurance

2020.05.27-2

021.03.21

N Y

Foshan Nanhai

Pharmaceutical

Co. Ltd.

2019-08-24 7000 2019-11-07 3031.14

Joint liability

assurance

2019.11.07-2

020.11.06

N Y

Foshan Nanhai

Pharmaceutical

Co. Ltd.

2019-08-24 2500 2020-04-16

Joint liability

assurance

2020.04.16-2

020.12.23

N Y

Foshan Nanhai

Uptodate &

Special Medicines

Co. Ltd.

2019-08-24 6000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Foshan Nanhai

Uptodate &

Special Medicines

Co. Ltd.

2020-04-22 10000 2020-05-27 8307.23

Joint liability

assurance

2020.05.27-2

021.03.21

N Y

Foshan Nanhai

Uptodate &

Special Medicines

Co. Ltd.

2019-08-24 7000 2019-11-07 1631.03

Joint liability

assurance

2019.11.07-2

020.11.06

N Y

Foshan Nanhai

Uptodate &

Special Medicines

Co. Ltd.

2019-08-24 3000 2019-11-20 1989.28

Joint liability

assurance

2019.11.20-2

020.11.19

N Y

Foshan Nanhai

Uptodate &

Special Medicines

Co. Ltd.

2019-08-24 2500 2020-04-16

Joint liability

assurance

2020.04.16-2

020.12.23

N Y

Sinopharm

Holding

(Jiangmen) Co.Ltd.

2019-08-24 1000 2019-10-15 999

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding

(Jiangmen) Co.Ltd.

2020-04-22 3000 2020-05-26 2999.47

Joint liability

assurance

2020.05.26-2

021.05.18

N Y

Sinopharm

Holding

(Jiangmen) Co.Ltd.

2019-08-24 1000 2019-12-13 520.67

Joint liability

assurance

2019.12.13-2

020.12.12

N Y

Sinopharm

Holding Meizhou

Co. Ltd.

2019-08-24 1000 2019-10-15 1000

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Meizhou

Co. Ltd.

2020-04-22 4000 2020-06-29 2063.45

Joint liability

assurance

2020.06.29-2

021.06.28

N Y

Sinopharm

Holding Meizhou

Co. Ltd.

2020-04-22 5000 2020-05-22 4523.76

Joint liability

assurance

2020.05.22-2

021.05.18

N Y

Sinopharm

Holding Meizhou

Co. Ltd.

2020-04-22 3000 2020-06-10

Joint liability

assurance

2020.06.10-2

021.05.31

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Sinopharm

Holding

Zhongshan Co.Ltd.

2019-08-24 1000 2019-10-15 773.9

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding

Zhongshan Co.Ltd.

2019-08-24 2000 2019-09-24 1974.35

Joint liability

assurance

2019.09.24-2

020.09.23

N Y

Sinopharm

Holding Shantou

Co. Ltd.

2019-08-24 500 2019-10-15 500

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Shantou

Co. Ltd.

2019-08-24 1000 2019-12-23 1000

Joint liability

assurance

2019.12.23-2

020.12.22

N Y

Sinopharm

Holding Shantou

Co. Ltd.

2020-04-22 2000 2020-06-01 1500

Joint liability

assurance

2020.06.01-2

021.05.31

N Y

Sinopharm

Holding Huizhou

Co. Ltd.

2019-08-24 1000 2019-10-15 569.97

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Huizhou

Co. Ltd.

2019-08-24 1000 2019-12-17

Joint liability

assurance

2019.12.17-2

020.12.16

N Y

Sinopharm

Holding Huizhou

Co. Ltd.

2019-08-24 3000 2019-12-10 2002.27

Joint liability

assurance

2019.12.10-2

020.12.09

N Y

Sinopharm

Holding Zhanjiang

Co. Ltd.

2019-08-24 1000 2019-10-15 1000

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Zhanjiang

Co. Ltd.

2019-08-24 2000 2020-01-15 2000

Joint liability

assurance

2020.1.15-20

20.12.19

N Y

Sinopharm

Holding Zhanjiang

Co. Ltd.

2020-04-22 3000 2020-06-03

Joint liability

assurance

2020.06.03-2

021.05.20

N Y

Sinopharm

Holding Zhuhai

Co. Ltd.

2019-08-24 1000 2019-10-15 996.34

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Zhuhai

2019-08-24 2000 2019-09-24 1995.99

Joint liability

assurance

2019.09.24-2

020.09.23

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Co. Ltd.

Sinopharm

Holding Zhuhai

Co. Ltd.

2020-04-22 2000 2020-05-15 863.65

Joint liability

assurance

2020.05.15-2

021.05.15

N Y

Sinopharm

Holding Dongguan

Co. Ltd.

2020-04-22 5000 2020-05-29 1000

Joint liability

assurance

2020.05.29-2

021.05.18

N Y

Sinopharm

Holding Dongguan

Co. Ltd.

2019-08-24 2000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Dongguan

Co. Ltd.

2019-04-25 2000 2019-08-06

Joint liability

assurance

2019.08.06-2

020.08.05

N Y

Sinopharm

Holding Dongguan

Co. Ltd.

2020-04-22 3000 2020-06-24 506.94

Joint liability

assurance

2020.06.24-2

021.06.23

N Y

Sinopharm

Holding Dongguan

Co. Ltd.

2020-04-22 3000 2020-05-06

Joint liability

assurance

2020.05.06-2

021.02.27

N Y

Guangdong

Dongfang New

Special Medicine

Co. Ltd

2020-04-22 10000 2020-05-11 2517.14

Joint liability

assurance

2020.05.11-2

021.05.10

N Y

Guangdong

Dongfang New

Special Medicine

Co. Ltd

2020-04-22 5000 2020-05-20 3294.15

Joint liability

assurance

2020.05.20-2

021.04.10

N Y

Guangdong

Dongfang New

Special Medicine

Co. Ltd

2019-08-24 3000 2020-04-09 1707.8

Joint liability

assurance

2020.04.09-2

021.03.16

N Y

Guangdong

Dongfang New

Special Medicine

Co. Ltd

2019-08-24 9000 2019-10-17 7096.43

Joint liability

assurance

2019.10.17-2

020.10.16

N Y

Guangdong

Dongfang New

Special Medicine

Co. Ltd

2019-08-24 4000 2019-10-15 3839.13

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Guangdong 2019-08-24 2500 2020-04-16 Joint liability 2020.04.16-2 N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Dongfang New

Special Medicine

Co. Ltd

assurance 020.12.23

Sinopharm

Holding Shaoguan

Co. Ltd.

2019-08-24 3000 2020-01-15 1379.09

Joint liability

assurance

2020.1.15-20

20.12.31

N Y

Sinopharm

Holding Shaoguan

Co. Ltd.

2020-04-22 3000 2020-05-29 2994.21

Joint liability

assurance

2020.05.29-2

021.05.18

N Y

Sinopharm

Holding Maoming

Co. Ltd.

2020-04-22 5000 2020-05-26 1817.49

Joint liability

assurance

2020.05.26-2

021.05.18

N Y

Sinopharm

Holding

Guangzhou Huadu

Co. Ltd.

2019-04-25 2500 2019-07-23 1927.58

Joint liability

assurance

2019.07.23-2

020.07.22

N Y

Sinopharm

Holding

Guangzhou Huadu

Co. Ltd.

2020-04-22 2000 2020-06-08 1611.75

Joint liability

assurance

2020.06.08-2

021.06.07

N Y

Sinopharm

Holding

Guangzhou Huadu

Co. Ltd.

2019-08-24 1500 2019-12-09 1408.91

Joint liability

assurance

2019.12.09-2

020.09.30

N Y

Sinopharm

Holding Heyuan

Co. Ltd.

2019-08-24 2000 2019-12-18 840

Joint liability

assurance

2019.12.18-2

020.12.17

N Y

Sinopharm

Holding Heyuan

Co. Ltd.

2020-04-22 5000 2020-05-21 1900

Joint liability

assurance

2020.05.21-2

021.05.18

N Y

Sinopharm

Holding Foshan

Medical

Consumables

Supply Chain Co.Ltd.

2019-08-24 1000 2019-11-07 3.59

Joint liability

assurance

2019.11.07-2

020.11.06

N Y

Sinopharm Accord

(Guangzhou)

Medicines Co.Ltd.

2020-04-22 1000 2020-06-17

Joint liability

assurance

2020.06.17-2

021.05.18

N Y

Sinopharm 2020-04-22 30000 2020-06-28 11142.5 Joint liability 2020.06.28-2 N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Holding Guangxi

Co. Ltd.

assurance 021.04.20

Sinopharm

Holding Guangxi

Co. Ltd.

2019-08-24 28000 2019-10-15 5233.67

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2019-08-24 25000 2020-02-17 10803.63

Joint liability

assurance

2020.02.17-2

021.02.21

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2020-04-22 20000 2020-06-16 15659.68

Joint liability

assurance

2020.06.16-2

021.06.15

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2020-04-22 10000 2020-05-28 1637.34

Joint liability

assurance

2020.05.28-2

021.05.28

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2019-08-24 25000 2019-12-25 14957.4

Joint liability

assurance

2019.12.25-2

020.12.25

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2019-04-25 5000 2019-07-26 3999.51

Joint liability

assurance

2019.07.26-2

020.07.25

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2020-04-22 20000 2020-05-20 8151.82

Joint liability

assurance

2020.05.20-2

021.05.19

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2019-04-25 20000 2019-07-03 670

Joint liability

assurance

2019.07.03-2

020.07.03

N Y

Sinopharm

Holding Guangxi

Co. Ltd.

2020-04-22 12000 2020-05-29 7423.84

Joint liability

assurance

2020.05.29-2

021.05.18

N Y

Sinopharm

Holding Liuzhou

Co. Ltd.

2019-08-24 9000 2019-10-15 3139.5

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Liuzhou

Co. Ltd.

2020-04-22 10000 2020-06-21 7041.9

Joint liability

assurance

2020.06.21-2

021.06.20

N Y

Sinopharm

Holding Liuzhou

Co. Ltd.

2019-08-24 10000 2020-02-21 13.37

Joint liability

assurance

2020.02.21-2

021.02.20

N Y

Sinopharm

Holding Liuzhou

2019-04-25 5000 2019-07-09 4988.93

Joint liability

assurance

2019.07.09-2

020.07.08

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Co. Ltd.

Sinopharm

Holding Liuzhou

Co. Ltd.

2019-08-24 9000 2019-10-29

Joint liability

assurance

2019.10.29-2

020.10.28

N Y

Sinopharm

Holding Liuzhou

Co. Ltd.

2019-08-24 10000 2019-12-20 4999.64

Joint liability

assurance

2019.12.20-2

020.12.19

N Y

Sinopharm

Holding Medical

Supply Chain

Services (Guangxi)

Co. Ltd.

2019-08-24 1059 2019-10-08 621.28

Joint liability

assurance

2019.10.08-2

020.10.07

N Y

Sinopharm

Holding Wuzhou

Co. Ltd.

2019-08-24 2500 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Guilin

Co. Ltd

2019-08-24 1500 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Beihai

Co. Ltd

2019-08-24 3000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Baise Co.Ltd

2019-08-24 2500 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Guigang

Co. Ltd

2019-08-24 2000 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Yulin Co.Ltd

2019-08-24 1500 2019-10-15

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Shenzhen

Jianmin Co. Ltd.

2019-08-24 2000 2019-10-15 1028.6

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm

Holding Shenzhen

Jianmin Co. Ltd.

2019-08-24 2000 2020-02-17 600

Joint liability

assurance

2020.02.17-2

021.02.17

N Y

Sinopharm

Holding Shenzhen

Medicine Co. Ltd

2019-08-24 1000 2019-10-15 314.64

Joint liability

assurance

2019.10.15-2

020.10.14

N Y

Sinopharm 2019-08-24 12000 2019-10-15 3922.33 Joint liability 2019.10.15-2 N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Holding Shenzhen

Yanfeng Co. Ltd.assurance 020.10.14

Sinopharm

Holding Shenzhen

Yanfeng Co. Ltd.

2020-04-22 8000 2020-05-28 2941.7

Joint liability

assurance

2020.05.28-2

021.05.28

N Y

Sinopharm

Holding Shenzhen

Yanfeng Co. Ltd.

2019-04-25 7000 2019-08-06

Joint liability

assurance

2019.08.06-2

020.08.05

N Y

Sinopharm

Holding Shenzhen

Yanfeng Co. Ltd.

2019-08-24 5000 2019-09-03 4000

Joint liability

assurance

2019.09.03-2

020.09.03

N Y

Sinopharm

Holding Shenzhen

Yanfeng Co. Ltd.

2020-04-22 10000 2020-05-25 3000

Joint liability

assurance

2020.05.25-2

021.05.18

N Y

Sinopharm Accord

Medicines Supply

Chain (Shenzhen)

Co. Ltd.

2020-04-22 5000 2020-06-18

Joint liability

assurance

2020.06.18-2

021.05.18

N Y

Total amount of approving

guarantee for subsidiaries in

report period (B1)

407000

Total amount of actual

occurred guarantee for

subsidiaries in report period

(B2)

794876.17

Total amount of approved

guarantee for subsidiaries at the

end of reporting period (B3)

1077559

Total balance of actual

guarantee for subsidiaries at

the end of reporting period

(B4)

473137.63

Guarantees of subsidiaries to subsidiaries

Name of the

Company

guaranteed

Announce

ment

disclosure

date

Guarantee

limit

Actual date of

happening

Actual

guarantee limit

Guarantee

type

Guarantee

term

Implemen

ted (Y/N)

Guarante

e for

party

(Y/N)

Sinopharm

Holding Guoda

Drugstore

Yangzhou

Dadesheng Chain

Co. Ltd.

2019-08-24 1200 2019-10-10 992.48

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Fujian Guoda

Drugstore Chain

Co. Ltd.

2020-04-22 1800 2020-05-17 1093.79

Joint liability

assurance

2020.05.17-2

021.05.17

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Sinopharm

Holding Guoda

Fumei Drugstore

Shanghai Chain

Co. Ltd.

2020-04-22 1800 2020-06-29 0

Joint liability

assurance

2020.06.29-2

021.06.28

N Y

Sinopharm

Holding Guoda

Drugstore

Guangdong Co.Ltd.

2019-08-24 4800 2019-10-10 3551.46

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore

Guangdong Co.Ltd.

2019-08-24 1800 2019-12-18 0

Joint liability

assurance

2019.12.18-2

020.12.17

N Y

Sinopharm

Holding Guoda

Drugstore

Guangdong Co.Ltd.

2019-08-24 1800 2020-03-19 1454.06

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

Taishan Sinopharm

Holding Guoda

Qunkang

Drugstore Chain

Co. Ltd.

2019-04-25 300 2019-06-02 86.06

Joint liability

assurance

2019.06.02-2

020.06.01

N Y

Taishan Sinopharm

Holding Guoda

Qunkang

Drugstore Chain

Co. Ltd.

2019-08-24 300 2019-10-10 232.96

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore Guangxi

Chain Co. Ltd.

2019-08-24 1800 2019-10-10 371.51

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore Guangxi

Chain Co. Ltd.

2019-08-24 1200 2020-03-19 128.47

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

China National

Hebei Lerentang

Medicine Chain

2019-08-24 1800 2019-10-10 1714.5

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Co. Ltd.

China National

Hebei Lerentang

Medicine Chain

Co. Ltd.

2020-04-22 9000 2020-06-03 2211.86

Joint liability

assurance

2020.06.03-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Henan

Chain Co. Ltd.

2019-08-24 1800 2019-12-06 0

Joint liability

assurance

2019.12.06-2

020.12.05

N Y

Hunan Guoda

Minshentang

Drugstore Chain

Co. Ltd.

2019-08-24 1800 2019-10-10 853.19

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore

Jiangmen Chain

Co. Ltd.

2019-08-24 1800 2019-10-10 1194.75

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore

Jiangmen Chain

Co. Ltd.

2019-08-24 1200 2020-04-01 436.33

Joint liability

assurance

2020.04.01-2

021.04.01

N Y

Sinopharm

Holding Guoda

Drugstore

Jiangmen Chain

Co. Ltd.

2019-08-24 1200 2020-03-19 860.29

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

Beijing Jinxiang

Drugstore

Medicine Chain

Co. Ltd

2019-08-24 4200 2020-03-19 1832.02

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

Sinopharm

Holding Guoda

Drugstore Nanjing

Chain Co. Ltd.

2019-08-24 600 2020-03-19 536.49

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

Sinopharm

Holding Guoda

Drugstore Inner

Mongolia Co. Ltd.

2019-08-24 1800 2019-10-18 0

Joint liability

assurance

2019.10.18-2

020.10.17

N Y

Sinopharm 2020-04-22 1800 2020-04-30 1214.15 Joint liability 2020.04.30-2 N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Holding Guoda

Drugstore Inner

Mongolia Co. Ltd.assurance 021.04.29

Sinopharm

Holding Guoda

Drugstore Inner

Mongolia Co. Ltd.

2019-08-24 5700 2019-10-10 4039.35

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore Bayan

Nur Co. Ltd.

2020-04-22 600 2020-05-19 457.65

Joint liability

assurance

2020.05.19-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Inner

Mongolia Co. Ltd.

2019-08-24 4800 2020-03-19 1358.76

Joint liability

assurance

2020.03.19-2

021.03.18

N Y

Sinopharm

Holding Guoda

Drugstore Hulun

Buir Co. Ltd.

2020-04-22 600 2020-05-18 592.85

Joint liability

assurance

2020.05.18-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Ulanqab

Co. Ltd.

2020-04-22 600 2020-06-15 128.51

Joint liability

assurance

2020.06.15-2

021.05.14

N Y

Ningxia Guoda

Drugstore Chain

Co. Ltd.

2019-08-24 2400 2019-08-29 1200

Joint liability

assurance

2019.08.29-2

020.08.28

N Y

Sinopharm

Holding Guoda

Drugstore

Shandong Co. Ltd.

2019-08-24 2400 2019-10-14 1096.65

Joint liability

assurance

2019.10.14-2

020.10.13

N Y

Shanxi Guoda

Wanmin Drugstore

Chain Co. Ltd.

2019-08-24 3000 2019-11-08 0

Joint liability

assurance

2019.11.08-2

020.11.07

N Y

Shanxi Guoda

Wanmin Drugstore

Chain Co. Ltd.

2019-04-25 3600 2019-06-13 1080

Joint liability

assurance

2019.06.13-2

020.06.12

N Y

Shanxi Guoda

Wanmin Drugstore

Chain Co. Ltd.

2019-08-24 2520 2020-01-18 1512

Joint liability

assurance

2020.01.18-2

021.01.17

N Y

Shanxi Guoda

Wanmin Drugstore

2020-04-22 15000 2020-05-22 6900

Joint liability

assurance

2020.05.22-2

021.05.14

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Chain Co. Ltd.

Shanxi Guoda

Wanmin Drugstore

Chain Co. Ltd.

2019-08-24 3600 2019-10-10 3600

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Shanxi Medicines

Co. Ltd.

2020-04-22 15000 2020-05-21 10835.42

Joint liability

assurance

2020.05.21-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore

Shanghai Chain

Co. Ltd.

2019-08-24 3000 2019-12-10 1619.59

Joint liability

assurance

2019.12.10-2

020.12.09

N Y

Sinopharm

Holding Guoda

Drugstore

Shanghai Chain

Co. Ltd.

2019-08-24 2400 2019-10-25 0

Joint liability

assurance

2019.10.25-2

020.10.24

N Y

Sinopharm

Holding Guoda

Drugstore

Shanghai Chain

Co. Ltd.

2019-08-24 2400 2019-10-10 1420.9

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore

Shanghai Chain

Co. Ltd.

2020-04-22 3000 2020-06-29 0

Joint liability

assurance

2020.06.29-2

021.06.28

N Y

Sinopharm

Holding Guoda

Drugstore

Shenyang Chain

Co. Ltd.

2019-08-24 6000 2019-09-11 4410.81

Joint liability

assurance

2019.09.11-2

020.09.10

N Y

Sinopharm

Holding Guoda

Drugstore

Shenyang Chain

Co. Ltd.

2019-08-24 2400 2019-10-28 0

Joint liability

assurance

2019.10.28-2

020.10.27

N Y

Sinopharm

Holding Guoda

Drugstore

2019-08-24 15000 2019-10-10 9192.14

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Shenyang Chain

Co. Ltd.

Sinopharm

Holding Guoda

Drugstore

Shenyang Chain

Co. Ltd.

2020-04-22 13800 2020-06-05 12086.2

Joint liability

assurance

2020.06.05-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Xinjiang

New Special

Medicine Chain

Co. Ltd

2019-08-24 3000 2019-10-21 2019.18

Joint liability

assurance

2019.10.21-2

020.10.21

N Y

Sinopharm

Holding Guoda

Drugstore Xinjiang

New Special

Medicine Chain

Co. Ltd

2019-08-24 3000 2020-01-26 1057.5

Joint liability

assurance

2020.01.26-2

020.10.29

N Y

Sinopharm

Holding Guoda

Drugstore Shanxi

Yiyuan Chain Co.Ltd.

2020-04-22 4200 2020-05-02 0

Joint liability

assurance

2020.05.02-2

021.05.01

N Y

Sinopharm

Holding Guoda

Drugstore Shanxi

Yiyuan Chain Co.Ltd.

2019-04-25 3360 2019-06-14 61.74

Joint liability

assurance

2019.06.14-2

020.06.13

N Y

Sinopharm

Holding Guoda

Drugstore Shanxi

Yiyuan Chain Co.Ltd.

2019-08-24 9000 2019-10-10 7723.02

Joint liability

assurance

2019.10.10-2

020.10.09

N Y

Sinopharm

Holding Guoda

Drugstore

Zhengzhou Chain

Co. Ltd.

2019-08-24 300 2020-01-17 164.4

Joint liability

assurance

2020.01.17-2

020.11.26

N Y

Inner Mongolia

Guoda Drugstore

Co. Ltd.

2020-04-22 2400 2020-06-03 1869.45

Joint liability

assurance

2020.06.03-2

021.05.14

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Sinopharm

Holding Tianhe

Jilin Medicines

Co. Ltd.

2020-04-22 5100 2020-04-22 4776.1

Joint liability

assurance

2020.4.22-20

20.11.11

N Y

Guoda Yihe

Drugstore Jilin

Co. Ltd.

2020-04-22 2550 2020-04-22 2550

Joint liability

assurance

2020.4.22-20

20.11.11

N Y

Guoda Yihe

Drugstore Jilin

Co. Ltd.

2020-04-22 4080 2020-04-22 3948.77

Joint liability

assurance

2020.4.22-20

20.11.11

N Y

Hunan Guoda

Minshengtang

Drugstore Chain

Co. Ltd.

2019-08-24 1200 2020-01-17 554.47

Joint liability

assurance

2020.01.17-2

020.11.26

N Y

Tianjin Guoda

Drugstore Chain

Co. Ltd.

2019-08-24 300 2020-02-26 240.59

Joint liability

assurance

2020.02.26-2

020.11.26

N Y

Sinopharm

Holding Guoda

Drugstore

Shandong Co. Ltd.

2019-08-24 1200 2020-01-17 469.74

Joint liability

assurance

2020.01.17-2

020.11.26

N Y

Sinopharm

Holding Guoda

Drugstore Henan

Co. Ltd.

2019-08-24 1200 2020-01-16 543.81

Joint liability

assurance

2020.01.16-2

020.11.26

N Y

Shanxi Guoda

Wanmin Drugstore

Chain Co. Ltd.

2019-08-24 3000 2020-01-25 600

Joint liability

assurance

2020.01.25-2

020.06.24

N Y

Sinopharm

Holding Guoda

Drugstore

(Shenzhen) Chain

Co. Ltd.

2019-08-24 1800 2020-01-15 594.91

Joint liability

assurance

2020.01.15-2

020.11.26

N Y

Sinopharm

Holding Guoda

Drugstore

Yangzhou

Dadesheng Chain

Co. Ltd.

2019-08-24 1200 2020-01-15 792.62

Joint liability

assurance

2020.01.15-2

020.11.26

N Y

Beijing Guoda

Drugstore Chain

2019-08-24 1800 2019-11-27 0

Joint liability

assurance

2020.01.16-2

020.11.26

N Y

国药集团一致药业股份有限公司 2020年半年度报告全文

Co. Ltd.

Sinopharm

Holding Guoda

Drugstore Inner

Mongolia Co. Ltd.

2020-04-22 1800 2020-06-05 881.84

Joint liability

assurance

2020.06.05-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Shanxi

Yiyuan Chain Co.Ltd.

2020-04-22 3000 2020-05-26 199.61

Joint liability

assurance

2020.05.26-2

021.05.25

N Y

Sinopharm

Holding Guoda

Drugstore Xinjiang

New Special

Medicine Chain

Co. Ltd

2020-04-22 1800 2020-06-29 0

Joint liability

assurance

2020.06.29-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Henan

Chain Co. Ltd.

2020-04-22 1800 2020-06-11 0

Joint liability

assurance

2020.06.11-2

021.05.14

N Y

Taishan Sinopharm

Holding Guoda

Qunkang

Drugstore Chain

Co. Ltd.

2020-04-22 600 2020-06-16 0

Joint liability

assurance

2020.06.16-2

021.05.14

N Y

Guoda Drugstore

(Pu'er) Songmao

Co. Ltd.

2020-04-22 1200 2020-06-15 0

Joint liability

assurance

2020.06.15-2

021.05.14

N Y

Liaoning Guoda

Medicines Co.Ltd.

2020-04-22 3000 2020-06-29 0

Joint liability

assurance

2020.06.29-2

021.05.14

N Y

Yanji Xianghe

Medicines Co.Ltd.

2020-04-22 1800 2020-06-17 0

Joint liability

assurance

2020.06.17-2

021.05.14

N Y

Sinopharm

Holding Guoda

Drugstore Shanxi

Yiyuan Chain Co.Ltd.

2020-04-22 4200 2020-05-21 0

Joint liability

assurance

2020.05.21-2

021.05.14

N Y

Total amount of approving

guarantee for subsidiaries in

100530

Total amount of actual

occurred guarantee for

115209.2

国药集团一致药业股份有限公司 2020年半年度报告全文

report period (C1) subsidiaries in report period

(C2)

Total amount of approved

guarantee for subsidiaries at the

end of reporting period (C3)

219510

Total balance of actual

guarantee for subsidiaries at

the end of reporting period

(C4)

109342.95

Total amount of guarantee of the Company (total of three abovementioned guarantee)

Total amount of approving

guarantee in report period

(A1+B1+C1)

507530

Total amount of actual

occurred guarantee in report

period (A2+B2+C2)

910085.37

Total amount of approved

guarantee at the end of report

period (A3+B3+C3)

1297069

Total balance of actual

guarantee at the end of report

period (A4+B4+C4)

582480.58

The proportion of the total amount of actually guarantee in the

net assets of the Company (that is A4+ B4+C4)

44.13%

Including:

Amount of guarantee for shareholders actual controller and its

related parties (D) 0

The debts guarantee amount provided for the guaranteed

parties whose assets-liability ratio exceed 70% directly or

indirectly (E)

Proportion of total amount of guarantee in net assets of the

Company exceed 50% (F) 0

Total amount of the aforesaid three guarantees (D+E+F) 0

Explanations on possibly bearing joint and several liquidating

responsibilities for undue guarantees (if applicable)

N/A

Explanations on external guarantee against regulated

procedures (if applicable)

N/A

(2) Guarantee outside against the regulation

□Applicable √ Not applicable

No guarantee outside against the regulation in Period.

3. Trust financing

□Applicable √ Not applicable

The Company had no trust financing in the reporting period.国药集团一致药业股份有限公司 2020年半年度报告全文

4. Other material contracts

□Applicable √ Not applicable

No other material contracts for the Company in reporting period.XVI. Social responsibility

1. Major environment protection

The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department

voluntary disclosure

Company

/subsidiary

Name of

Major

Pollutants

and

Particular

Pollutants

Emission

Method

Quantity of

Discharge

Outlet

Distribution

Discharge

Outlet

Emission

Concentr

ation

Executed

Pollutant

Discharge

Standards

Total

Emissions

Approved

Total

Emissions

Excessive

Discharge

China

National

Zhijun

COD

Tube

Discharge

Outlet of

Waste

Water

23.75mg/L “WaterPollutant

Discharge

Limit Value

-DB44/26-200

1”(before 8

May 2020);

“DischargeStandards for

Water

Pollutants in

the

Pharmaceutica

l Industry of

Mixed

Preparations-G

21908-2008”

(after 8 May

2020)

0.738 ton

7.306

ton/year

N/A

China

National

Zhijun

Ammonia

Nitrogen

Tube

Discharge

Outlet of

Waste

Water

1.0835m

g/L

0.034 ton

0.812

ton/year

N/A

China

National

Zhijun

Phosphate

Tube

Discharge

Outlet of

Waste

Water

0.0325m

g/L

0.001 ton

0.041

ton/year

N/A

Zhijun

Pingshan

COD

Tube

Discharge

Outlet of

Waste

Water

12.67mg/

0.4118 ton

2.16

ton/year

N/A

Zhijun

Pingshan

Ammonia

Nitrogen

Tube

Discharge

Outlet of

Waste

Water

0.243mg/

0.0079 ton

0.144

ton/year

N/A

Zhijun

Pingshan

Total

phosphorus

Tube

Discharge

Outlet of

Waste

Water

0.09mg/

0.0029 ton

0.0216

ton/year

N/A

Main Luck COD Tube 1 Discharge 12mg/L DB44/26-2001 0.005 ton 0.041 N/A

国药集团一致药业股份有限公司 2020年半年度报告全文

Pharmaceuti

cals

Discharge Outlet of

Waste

Water

LEVEL 1

STANDARD

FOR THE

SECOND

PERIOD

ton/year

Main Luck

Pharmaceuti

cals

Ammonia

Nitrogen

Tube

Discharge

Outlet of

Waste

Water

0.5mg/L 0.0002 ton

0.005

ton/year

N/A

Main Luck

Pharmaceuti

cals

Phosphate

Tube

Discharge

Outlet of

Waste

Water

0.04mg/l 0.00002 ton

0.0002

ton/year

N/A

Main Luck

Pharmaceuti

cals

BOD

Tube

Discharge

Outlet of

Waste

Water

4mg/L 0.002 ton

0.009

ton/year

N/A

Main Luck

Pharmaceuti

cals

Tube

Discharge

Outlet of

Waste

Water

10mg/L 0.005 ton

0.027

ton/year

N/A

Construction and operation of pollution prevention and control facilities

At present the above-mentioned environmental pollution key monitoring units in which the Company has a

shareholding have established pollution prevention and control facilities for waste water. In the daily management

process enterprises establish management procedures and operating instructions for environmental protection

facilities and ensure the normal and compliant operation of anti-pollution facilities through system

implementation and responsibility implementation. All enterprises are continuously investing funds and stepping

up the transformation and improvement of pollution prevention and control facilities to ensure the stable operation

of pollution prevention facilities and improve the disposal capacity of environmental protection facilities.

Environmental impact assessment of construction projects and other environmental protection administrative

licenses

At present the projects of all key monitoring units have carried out environmental impact assessments and

obtained approvals. The projects to be built also carry out the relevant administrative review procedures according

to the "three simultaneous" requirements of the environmental protection facilities of the construction project.

Emergency plan for environmental emergencies

At present the above-mentioned environmental pollution key monitoring units in which the Company has a

shareholding have formulated the Emergency Plan for Environmental Emergencies and reported them according

to the regulatory requirements of the local regulatory authorities. According to the management requirements of

国药集团一致药业股份有限公司 2020年半年度报告全文

the emergency plan the key units regularly carry out emergency plan drills to further provide the enterprises’

emergency response capability.

Environmental self-monitoring scheme

At present the above-mentioned environmental pollution key monitoring units in which the Company has a

shareholding have established environmental self-detection scheme and plan and implemented self-inspection

third-party detection and other monitoring methods according to the government requirements. Relevant

monitoring data and reports have been archived and saved.Other environmental information that should be disclosed

The above two companies are joint stock companies of the Company. The Company and its holding subsidiaries

are not listed as key pollutant discharge units announced by the environmental protection department.Relevant information on environment protection

Nil

2. Execution of social responsibility of targeted poverty alleviation

The Company temporarily not to carry out a targeted poverty alleviation in the period and there are no follow-up plans either.XVII. Explanation on other significant events

√Applicable □ Not applicable

On July 20 2020 Sinopharm Accord convened the eighteenth session of the eighth board of directors and

reviewed and approved the Proposal on the Proposed Delisting of Guoda Drugstore to Acquire 100% Equity of

Chengda Fangyuan Pharmaceutical Group Co. Ltd. and agreed with the entry and delisting matters of Guoda

Drugstore.

On July 24 2020 Guoda Drugstore succeeded in delisting the 100% equity transfer project of Chengda Fangyuan

with a transaction price of 1860 million yuan. On the same day Guoda Drugstore and Liaoning Chengda signed

the Equity Transaction Contract.On July 30 2020 Guoda Drugstore received the Notice of Approval of Change of Registration (Liaoning)

SJHBTNZ [2020] No. 2020000380 from Liaoning Administration for Market Regulation the registration

procedures for the industrial and commercial change registration of 100% equity of Chengda Fangyuan

Pharmaceutical Group Co. Ltd. through public delisting of Guoda Drugstore were completed on July 30 2020.

For details of the above content please refer to the Announcement of Sinopharm Accord on the Public Delisting

and Transfer of 100% Equity of Chengda Fangyuan Pharmaceutical Group Co. Ltd. (Announcement No.:

国药集团一致药业股份有限公司 2020年半年度报告全文

2020-21) Announcement on the Progress of Sinopharm Accord on the Public Delisting and Transfer of 100%

Equity of Chengda Fangyuan Pharmaceutical Group Co. Ltd. (Announcement No.: 2020-22) and Announcement

on the Progress of Sinopharm Accord on the Public Delisting and Transfer of 100% Equity of Chengda Fangyuan

Pharmaceutical Group Co. Ltd. (Announcement No.: 2020-23) disclosed by the company on July 21 July 25 and

July 31 2020.XVIII. Significant event of subsidiary of the Company

√Applicable □ Not applicable

Please see XVII. Explanation of Other Important Matters

国药集团一致药业股份有限公司 2020年半年度报告全文

Section VI. Changes in Shares and Particulars about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

In Share

Before the Change Increase/Decrease in the Change (+ -) After the Change

Amount

Proportio

New

issued

Bon

shar

Capitalizatio

n of public

reserve

Others Subtotal Amount

Proportio

I. Restricted shares 65498153 15.30% -59989270 -59989270 5508883 1.29%

2. State-owned legal

person’s shares 60380743 14.10% -54874973 -54874973 5505770 1.29%

3. Other domestic

shareholding 5117410 1.20% -5114297 -5114297 3113 0.00%

Including: Domestic legal

person’s shares 5114297 1.19% -5114297 -5114297 0 0.00%

Domestic nature

person shares 3113 0.00% 3113 0.00%

II. Unrestricted shares 362628830 84.70% 59989270 59989270 422618100 98.71%

1. RMB Ordinary shares 307744355 71.88% 59989270 59989270 367733625 85.89%

2. Domestically listed

foreign shares 54884475 12.82% 54884475 12.82%

III. Total shares 428126983 100.00% 428126983 100.00%

Reasons for share changed

√Applicable □ Not applicable

When the company issued shares to purchase assets and raised matching funds in 2016 the non-publicly issued

shares with restrictions on sales were lifted from sales restrictions on January 6 2020 and the number of shares

released from sales restrictions was 59989270 shares.

Approval of share changed

□Applicable √Not applicable

Ownership transfer of share changed

□Applicable √ Not applicable

Progress of shares buy-back

国药集团一致药业股份有限公司 2020年半年度报告全文

□Applicable √Not applicable

Implementation progress of the reduction of repurchases shares by centralized bidding

□Applicable √Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common

shareholders of Company in latest year and period

□ Applicable √ Not applicable

Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators

□ Applicable √ Not applicable

2. Changes of restricted shares

√Applicable □ Not applicable

In Share

Shareholders

Opening shares

restricted

Restricted

increased

the

Period

Shares released in

Period

Ending shares

restricted

Restricted

reasons

Date for released

Sinopharm Group

Co. Ltd

55057700 49551930 0 5505770

Non-public

offering share

2020-1-6

China National

Pharmaceutical

Foreign Trade

Corp.

5323043 5323043 0 0

Non-public

offering share

2020-1-6

Ping An

Asset-ICBM

-Ping An Asset

Xinxiang No. 7

Insurance Asset

Management

Product

2557148 2557148 0 0

Non-public

offering share

2020-1-6

Ping An

Asset-ICBM -

Xinxiang No. 3

Asset

Management

Product

2557149 2557149 0 0

Non-public

offering share

2020-1-6

Total 65495040 59989270 0 5505770 -- --

国药集团一致药业股份有限公司 2020年半年度报告全文

II. Securities issuance and listing

□Applicable √ Not applicable

III. Number of shareholders and share-holding

In Share

Total common shareholders at

period-end 34260

Total preference shareholders

with voting rights recovered at

end of reporting period (if

applicable) (see Note 8)

Particulars about shares held above 5% by common shareholders or top ten common shareholders

Shareholders

Nature of

shareholder

Proportion

of shares

held

Number

common

held at

period-en

Changes in

reporting

period

Amount

restricted

common

held

Amount of

un-restricted

common

shares held

Number of share

pledged/frozen

State of

Amount

Sinopharm

Group Co. Ltd.State-owned

corporate 56.06%

2399999

5505770 234494221

Hong Kong

Securities

Clearing

Company Ltd.

Overseas corporate 2.72%

1163595

11635950

HTHK/CMG

FSGUFP-CMG

FIRST STATE

CHINA

GROWTH FD

Overseas corporate 2.68%

1146964

11469644

Shanghai Gaoyi

Asset

Management

Partnership

(Limited

Partnership)-Ga

oyi Linshan No.

1 Yuanwang

Fund

Domestic non

state-owned

corporate

2.34%

1000000

10000000

National Social

Security Fund

118 Portfolio

Domestic non

state-owned

corporate

1.82% 7774799 7774799

国药集团一致药业股份有限公司 2020年半年度报告全文

China National

Pharmaceutical

Foreign Trade

Corp.

State-owned

corporate 1.24% 5323043 5323043

Central Huijin

Investment Ltd.State-owned

corporate 0.89% 3804400 3804400

Fidelity

Investment

Management

(Hong Kong)

Limited -

Client’s fund

Overseas corporate 0.79% 3391337 3391337

BBH BOS S/A

FIDELITY FD -

CHINA

FOCUS FD

Overseas corporate 0.78% 3358761 3358761

National Social

Security Fund

103 Portfolio

Domestic non

state-owned

corporate

0.65% 2799865 2799865

Explanation on associated

relationship among the aforesaid

shareholders

Sinopharm Group Co. Ltd. and China National Pharmaceutical Foreign Trade Corporation

have the same actual controller which is China National Pharmaceutical Group Corporation.It is unknown that there exists no associated relationship or belongs to the consistent actionist

among the other tradable shareholders regulated by the Management Measure of Information

Disclosure on Change of Shareholding for Listed Companies.

Particular about top ten common shareholders with un-restrict shares held

Shareholders

Amount of un-restrict common shares held at

period-end

Type of shares

Type Amount

Sinopharm Group Co. Ltd. 234494221

RMB ordinary

shares 234494221

Hong Kong Securities Clearing

Company Ltd. 11635950

RMB ordinary

shares 11635950

HTHK/CMG FSGUFP-CMG

FIRST STATE CHINAGROWTH

11469644

Domestically

listed foreign

11469644

Shanghai Gaoyi Asset Management

Partnership (Limited

Partnership)-Gaoyi Linshan No. 1

Yuanwang Fund

10000000

RMB ordinary

shares 10000000

National Social Security Fund 118

Portfolio

7774799

RMB ordinary

shares 7774799

国药集团一致药业股份有限公司 2020年半年度报告全文

China National Pharmaceutical

Foreign Trade Corp. 5323043

RMB ordinary

shares 5323043

Central Huijin Investment Ltd. 3804400

RMB ordinary

shares 3804400

Fidelity Investment Management

(Hong Kong) Limited - Client’s

fund

3391337

RMB ordinary

shares 3391337

BBH BOS S/A FIDELITY FD -

CHINA FOCUS FD

3358761

Domestically

listed foreign

3358761

National Social Security Fund 103

Portfolio

2799865

RMB ordinary

shares 2799865

Expiation on associated relationship

or consistent actors within the top

10 un-restrict shareholders and

between top 10 un-restrict

shareholders and top 10

shareholders

Sinopharm Group Co. Ltd. and China National Pharmaceutical Foreign Trade Corporation

have the same actual controller which is China National Pharmaceutical Group Corporation.It is unknown that there exists no associated relationship or belongs to the consistent actionist

among the other tradable shareholders regulated by the Management Measure of Information

Disclosure on Change of Shareholding for Listed Companies.

Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back

agreement dealing in reporting period

□Yes √ No

The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no

buy-back agreement dealing in reporting period.IV. Changes of controlling shareholders or actual controller

Changes of controlling shareholders in reporting period

□ Applicable √ Not applicable

Changes of controlling shareholders had no change in reporting period.

Changes of actual controller in reporting period

□ Applicable √ Not applicable

Changes of actual controller in reporting period had no change in reporting period.

国药集团一致药业股份有限公司 2020年半年度报告全文

Section VII. Preferred Stock

□Applicable √ Not applicable

The Company has no preferred stock in reporting period.国药集团一致药业股份有限公司 2020年半年度报告全文

Section VIII. Convertible Bonds

□Applicable √ Not applicable

The Company had no convertible bonds in the Period.国药集团一致药业股份有限公司 2020年半年度报告全文

Section IX. Directors Supervisors and Senior Executives

I. Changes of shares held by directors supervisors and senior executives

□Applicable √ Not applicable

Shares held by directors supervisors and senior executives have no changes in reporting period found more details in Annual Report

2019.

II. Resignation and dismissal of directors supervisors and senior executives

√ Applicable □ Not applicable

Name Title Type Date Reasons

Wei Pingxiao

Chief Financial

Officer

Dismissal 2020-05-28

Job changes and no longer serves as the chief financial

officer.Gu Guolin

Chief Financial

Officer

Appoint 2020-05-28

The 8th Board of Directors appointed the Chief

Financial Officer.

Ma Zhanjun Vice Chairman Leave office 2020-07-31 Resigned due to reaching the legal retirement age.国药集团一致药业股份有限公司 2020年半年度报告全文

Section X. Corporate Bond

Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when

semi-annual report approved for released or fail to cash in full on due

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

CONSOLIDATED BALANCE SHEET

As at 30 June 2020

(Expressed in Renminbi Yuan)

Section XI. 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 2020

(Expressed in Renminbi Yuan)

ASSETS Note V 30 June 2020 31 December 2019

Current assets

Cash and bank balances 1 8239840227.80 8885729250.47

Notes receivable 2 402639901.74 793301688.64

Accounts receivable 3 13892695134.41 10712983544.18

Receivable financing 4 399889650.01 446342588.46

Advances to suppliers 5 415037472.63 389828785.54

Other receivables 6 613031947.42 501958841.43

Incl: Dividend receivable - 834914.61

Inventories 7 5344906740.17 5063274143.26

Other current assets 8 84049888.58 102207498.20

Total current assets 29392090962.76 26895626340.18

Non-current assets

Long-term equity investments 9 2142161636.01 2105114410.88

Other equity instrument investment 10 116021000.00 116021000.00

Other non-current financial assets 11 120972350.24 140000000.00

Investment properties 12 130090605.82 138900358.30

Fixed assets 13 716847033.81 708000172.63

Construction in progress 14 29000528.39 31582575.84

Right-of-use assets 15 2072151887.64 1994757862.07

Intangible assets 16 608062260.25 374788799.48

Goodwill 17 1564931605.00 1010057927.17

Long-term prepaid expenses 18 356074254.02 373527968.14

Deferred tax assets 19 87459888.93 63110829.12

Other non-current assets 20 333986190.43 77354970.39

Total non-current assets 8277759240.54 7133216874.02

Total assets 37669850203.30 34028843214.20

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 2020

(Expressed in Renminbi Yuan)

LIABILITIES Note V 30 June 2020 31 December 2019

Current liabilities

Short-term borrowings 21 3710647467.19 1453018300.01

Notes payable 22 4691825761.98 5555697557.53

Accounts payable 23 8077705277.54 6703967826.54

Contract liabilities 24 287186619.13 303194940.70

Employee benefits payable 25 221834256.19 259640813.10

Tax payable 26 293029278.65 253379524.34

Other payables 27 1794827639.44 1822364637.62

Incl: Interest payable 16242505.92 23632632.90

Dividend payable 11831814.95 6389320.96

Non-current liabilities due within one year 28 616449909.74 611917847.37

Other current liabilities 29 836086.14 749710.19

Total current liabilities 19694342296.00 16963931157.40

Non-current liabilities

Long-term borrowings 30 - -

Lease liabilities 31 1216076164.93 1208453029.51

Long-term payables 32 800000.00 800000.00

Long-term employee benefits payable 33 1390000.00 1433000.00

Deferred income 34 85995054.01 88704272.88

Deferred tax liabilities 19 180948720.64 118284962.77

Other non-current liabilities 35 472489632.40 73256514.93

Total non-current liabilities 1957699571.98 1490931780.09

Total liabilities 21652041867.98 18454862937.49

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 2020

(Expressed in Renminbi Yuan)

SHAREHOLDERS’ EQUITY Note V 30 June 2020 31 December 2019

Shareholders’ equity

Share capital 36 428126983.00 428126983.00

Capital surplus 37 4372912064.89 4470766959.44

Other comprehensive income 38 46039529.66 45917342.77

Surplus reserve 39 214063491.50 214063491.50

Retained earnings 40 8138841049.96 7752265659.17

Shareholders’ equity attributable to

shareholders of the parent 13199983119.01 12911140435.88

Non-controlling interests 2817825216.31 2662839840.83

Total shareholders’ equity 16017808335.32 15573980276.71

Total liabilities and shareholders’

equity 37669850203.30 34028843214.20

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 (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

Note V For the six months ended30 June 2020

For the six months ended

30 June 2019

Operating revenue 41 27169940188.52 25599198815.30

Less: Operating costs 41 23971029719.44 22712876604.19

Taxes and surcharges 42 69505309.32 62711394.37

Selling expenses 43 1728738818.60 1541285047.94

Administrative expenses 44 443287144.92 391848337.91

Finance costs 45 65313829.62 64987758.92

Incling: Interest cost 133350510.68 134795237.41

Interest income 65512550.22 60641102.49

Add: Other incomes 46 35855298.32 16490919.02

Investment income 47 105206349.26 126873486.44

Incling: Investment income from

associates 133604904.16 169142289.99

Income from the derecognition of

financial assets measured at

amortised cost

(33507102.64) (42268803.55)

Credit impairment losses 48 (21580231.52) (11434101.13)

Impairment losses 49 (1743888.30) (125554.34)

Gain on disposal of assets 50 4305324.80 (29725.44)

Operating profits 1014108219.18 957264696.52

Add: Non-operating income 51 5219980.22 3673692.45

Less: Non-operating expenses 52 3008892.52 1749450.08

Total profit 1016319306.88 959188938.89

Less: Income tax expenses 53 210106764.35 192124358.84

Net profit 806212542.53 767064580.05

Net Profit from continuing operations 806212542.53 767064580.05

Net profit attributable to owners of the parent 643451580.59 649154414.55

Profit or loss of non-controlling interests 162760961.94 117910165.50

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

Note V For the six months ended

30 June 2020

For the six months ended

30 June 2019

Other comprehensive income net of tax 122186.89 -

Other comprehensive income net of tax

attributable to owners of the parent 122186.89 -

Other comprehensive income that will be

reclassified to profit or loss 122186.89 -

Other comprehensive income using the equity

method that will be reclassified to profit or loss

122186.89 -

Total comprehensive income 80633472942 76706458005

Incl: Total comprehensive income

attributable to owners of the parent 643573767.48 649154414.55

Total comprehensive income

attributable to non-controlling interests

162760961.94 117910165.50

Earnings per share

Basic earnings per share 1.50 1.52

Diluted earnings per share 1.50 1.52

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 2020

(Expressed in Renminbi Yuan)

For the six months ended 30

June 2020

Shareholders’ equity attributable to shareholders of the parent Non-controlling

interests

Total equity

Share capital Capital surplus

Other comprehensive

income Surplus reserve Retained earnings Subtotal

Closing balance of the preceding year 428126983.00 4363007511.57 45917342.77 214063491.50 7755295537.08 12806410865.92 2553426974.31 15359837840.23

Business combination involving

enterprises under common control - 107759447.87 - - (3029877.91) 104729569.96 109412866.52 214142436.48

Opening balance of the current year 428126983.00 4470766959.44 45917342.77 214063491.50 7752265659.17 12911140435.88 2662839840.83 15573980276.71

Movements in the current year - (97854894.55) 122186.89 - 386575390.79 288842683.13 154985375.48 443828058.61

(1) Total comprehensive income - - 122186.89 - 643451580.59 643573767.48 162760961.94 806334729.42

(2) Capital paid and reduced by

owners - (97854894.55) - - - (97854894.55) 10931276.73 (86923617.82)

1.Others - (97854894.55) - - - (97854894.55) 10931276.73 (86923617.82)

(3) Profit distribution - - - - (256876189.80) (256876189.80) (18706863.19) (275583052.99)

1.Distribution to equity owners - - - - (256876189.80) (256876189.80 ) (18706863.19) (275583052.99)

Closing balance of the current year 428126983.00 4372912064.89 46039529.66 214063491.50 8138841049.96 13199983119.01 2817825216.31 16017808335.32

The accompanying notes form an integral part of these financial statements

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY(Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months ended 30

June 2019

Shareholders’ equity attributable to shareholders of the parent Non-controlling

interests

Total equity

Share capital 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

Business combination involving

enterprises under common control - 107759447.87 - 328013.78 108087461.65 110114216.72 218201678.37

Opening balance of the current year 428126983.00 4428744429.38 214063491.50 6655585161.05 11726520064.93 2397458106.49 14123978171.42

Movements in the current year - 42424747.00 - 477903621.35 520328368.35 131363406.60 651691774.95

(1) Total comprehensive income - - - 649154414.55 649154414.55 117910165.50 767064580.05

(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)

Closing balance of the current year 428126983.00 4471169176.38 214063491.50 7133488782.40 12246848433.28 2528821513.09 14775669946.37

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 2020

(Expressed in Renminbi Yuan)

Note V For the six months ended

30 June 2020

For the six months ended

30 June 2019

1.CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from sales of good and the

rendering of services 27735103033.02 26078970809.97

Receipts of taxes and surcharges refunds 8145306.66 2721287.63

Cash receipts related to other operating activities 54 707202110.00 309460457.97

Total cash inflows from operating activities 28450450449.68 26391152555.57

Cash payments for goods and services 24305374637.56 22943691763.40

Cash payments to and on behalf of employees 1278474969.40 1145240067.80

Cash paid for all types of taxes 724722540.88 640484280.01

Cash payments relating to other operating

activities

54 703674258.49 522582323.47

Total cash outflows from operating activities 27012246406.33 25251998434.68

Net cash flows from operating activities 55 1438204043.35 1139154120.89

2.CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments 19027649.76 -

Cash receipts from returns on investments 84166102.10 20129463.78

Net cash received from disposal of fixed

assets intangible assets and other long-term

assets 4352536.98 807205.52

Cash receipts related to other investing activities 54 22040000.00 260600000.00

Total cash inflows from investing activities 129586288.84 281536669.30

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 2020

(Expressed in Renminbi Yuan)

Note V For the six months ended30 June 2020

For the six months ended

30 June 2019

2.CASH FLOWS FROM INVESTING ACTIVITIES (Continued)

Cash payments for acquisition of fixed assets

intangible assets and other long-term assets 116186214.91 114284920.35

Cash payments for investments 20545399.15 43674685.30

Net cash payments for acquisition of subsidiaries

and other business units 659201491.65 -

Cash payments relating to other investing activities 54 - 229093125.00

Total cash outflows from investing activities 795933105.71 387052730.65

Net cash flows from investing activities (666346816.87) (105516061.35)

3.CASH FLOWS FROM FINANCING ACTIVITIES

Cash proceeds from investments by others - 14780000.00

Incl: Cash receipts from capital contributions from

non-controlling interests of subsidiaries - 14780000.00

Cash receipts from borrowings 589920037.57 104700000.00

Cash receipts relating to other financing

activities 54 334349840.06 3512659.71

Total cash inflows from financing activities 924269877.63 122992659.71

Cash repayments for debts 284200000.00 161261634.53

Cash payments for distribution of dividends or

profit and interest expenses 432276651.88 344581712.62

Incl: Dividends or profit paid to non-controlling

shareholders of subsidiaries 10890773.58 1326758.90

Cash payments relating to other financing

activities 54 1405111664.26 510162167.74

Total cash outflows from financing activities 2121588316.14 1016005514.89

Net cash flows from financing activities (1197318438.51) (893012855.18)

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 2020

(Expressed in Renminbi Yuan)

Note V For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES

ON CASH AND CASH EQUIVALENTS (47935.97) (176567.25)

5.NET INCREASE IN CASH AND CASH EQUIVALENTS 55 (425509148.00) 140448637.11

Add: Cash and cash equivalents at beginning of the year 8426071170.16 7634936037.30

6.CASH AND CASH EQUIVALENTS AT END OF YEAR 55 8000562022.16 7775384674.41

The accompanying notes form an integral part of these financial statements

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

COMPANY BALANCE SHEET

As at 30 June 2020

(Expressed in Renminbi Yuan)

ASSETS Note XIV 30 June 2020 31 December 2019

Current assets

Cash and bank balances 3783035653.60 2909417289.71

Notes receivable - 14900068.42

Accounts receivable 1 640874941.28 571544784.65

Receivables financing 14618645.61 30194682.11

Advances to suppliers 1620450.15 7996243.28

Other receivables 2 1669369213.60 1928941595.38

Incl: Dividend receivable 5664636.60 834914.61

Inventories 163941874.00 169422075.78

Other current assets 39482.38 39482.38

Total current assets 6273500260.62 5632456221.71

Non-current assets

Long-term equity investments 3 7729748342.18 7698756525.83

Other non-current financial assets 120972350.24 140000000.00

Investment properties 1468165.30 1484198.56

Fixed assets 13758603.80 14763656.62

Right-of-use assets 5713745.04 6217504.50

Intangible assets 5338870.03 5838737.17

Long-term deferred expenses 5154262.50 6130534.55

Deferred tax assets 9236448.42 9327850.53

Other non-current assets 14160535.79 9000000.00

Total non-current assets 7905551323.30 7891519007.76

Total assets 14179051583.92 13523975229.47

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 2020

(Expressed in Renminbi Yuan)

LIABILITIES 30 June 2020 31 December 2019

Current liabilities

Short-term borrowings 367293866.62 121350644.36

Notes payable 433478121.14 751577900.22

Accounts payable 420416081.88 322436681.01

Contract liabilities 11170128.91 7293184.46

Employee benefits payable 27706738.19 30469777.88

Tax payables 19296823.49 22909124.90

Other payables 2145057270.41 2120794765.05

Incl: Interest payable 743724.90 861110.53

Non-current liabilities due within one year 1033492.62 32640325.77

Other current liabilities 251426.46 338196.81

Total current liabilities 3425703949.72 3409810600.46

Non-current liabilities

Lease liabilities 4988812.95 5461257.38

Long-term payables 800000.00 800000.00

Long-term employee benefits payable 21000.00 -

Deferred income 1052178.42 1276698.66

Other non-current liabilities 107507794.94 -

Total non-current liabilities 114369786.31 7537956.04

Total liabilities 3540073736.03 3417348556.50

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 2020

(Expressed in Renminbi Yuan)

SHAREHOLDERS’ EQUITY 30 June 2020 31 December 2019

Shareholders’ equity

Share capital 428126983.00 428126983.00

Capital surplus 4468399442.76 4468385307.32

Other comprehensive income (11179.30) (133366.19)

Surplus reserve 214063491.50 214063491.50

Retained earnings 5528399109.93 4996184257.34

Total shareholders’ equity 10638977847.89 10106626672.97

Total liabilities and shareholders’ equity 14179051583.92 13523975229.47

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 2020

(Expressed in Renminbi Yuan)

Note XIV For the six monthsended 30 June 2020

For the six months

ended 30 June 2019

Operating revenue 4 1772487363.56 2008004563.30

Less: Operating costs 4 1689564062.24 1921272394.76

Taxes and surcharges 2582640.86 2519247.99

Selling expenses 31376377.04 31052044.81

Administrative expenses 43060479.75 38056806.31

Finance costs (43838117.34) (30577119.28)

Incl: Interest cost 21928061.34 21387846.09

Interest income 66569319.85 52479722.42

Add: Other incomes 629921.47 332764.13

Investment income 5 749633760.78 606109545.19

Incl: Investment income from

associates 133549495.38 181280533.11

Income from the derecognition of financial

assets measured at amortised cost (1526968.25) (2178875.28)

Credit impairment losses (976022.96) (2365765.08)

Impairment losses (242731.87) (102112.84)

Gain on disposal of assets - (26074.52)

Operating profits 798786848.43 649629545.59

Add: Non-operating income 1596.77 46069.40

Less: Non-operating expenses 52122.72 -

Total profit 798736322.48 649675614.99

Less: Income tax expenses 9645280.09 8999224.52

Net profit 789091042.39 640676390.47

Net Profit from continuing operations 789091042.39 640676390.47

Other comprehensive income net of tax 122186.89 -

Other comprehensive income that will be reclassified

to profit or loss 122186.89 -

Other comprehensive income using the equity

method that will be reclassified to profit or loss 122186.89 -

Total comprehensive income 789213229.28 640676390.47

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 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2020 Share capital Capital surplus Other comprehensiveincome Surplus reserve Retained earnings Total equity

Closing balance of the preceding year 428126983.00 4468385307.32 (133366.19) 214063491.50 4996184257.34 10106626672.97

Opening balance of the current year 428126983.00 4468385307.32 (133366.19) 214063491.50 4996184257.34 10106626672.97

Movements in the current year - 14135.44 122186.89 - 532214852.59 532351174.92

(1) Total comprehensive income - - 122186.89 - 789091042.39 789213229.28

(2) Capital paid and reduced by owners - 14135.44 - - - 14135.44

1.Others - 14135.44 - - - 14135.44

(3) Profit distribution - - - - (256876189.80) (256876189.80)

1.Distribution to equity owners - - - - (256876189.80) (256876189.80)

Closing balance of the current year 428126983.00 4468399442.76 (11179.30) 214063491.50 5528399109.93 10638977847.89

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 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2019 Share capital Capital surplus Surplus reserve Retained earnings Total equity

Closing balance of the preceding year 428126983.00 4426362777.26 214063491.50 3956556754.02 9025110005.78

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 owners - 42424747.00 - - 42424747.00

1.Others - 42424747.00 - - 42424747.00

(3) Profit distribution - - - (171250793.20) (171250793.20)

1.Distribution to equity owners - - - (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 CASH FLOW STATEMENT

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

1.CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from sales of good and the

rendering of services 1959922054.30 2136424520.77

Cash receipts related to other operating activities 56400693.21 18658823.82

Total cash inflows from operating activities 2016322747.51 2155083344.59

Cash payments for goods and services 1808113785.36 1905147658.61

Cash payments to and on behalf of employees 56731764.12 48424818.87

Cash paid for all types of taxes 34728524.87 27913893.13

Cash payments relating to other operating

activities 36411653.42 17265038.12

Total cash outflows from operating activities 1935985727.77 1998751408.73

Net cash flows from operating activities 80337019.74 156331935.86

2. CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from returns of investments 32664096.76 -

Cash receipts from returns on investments 252042116.93 55106832.79

Net cash received from disposal of fixed assets

intangible assets and other long-term assets - 119000.00

Cash receipts related to other investing activities 1575127297.73 996340000.00

Total cash inflows from investing activities 1859833511.42 1051565832.79

Cash payments for acquisition of fixed

assets intangible assets and other long-term

assets 10386641.64 5983680.11

Cash payments for investments

Cash payments relating to other investing

activities 1309671874.11 1200340000.00

Total cash outflows from investing activities 1320058515.75 1206323680.11

Net cash flows from investing activities 539774995.67 -154757847.32

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 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

3. CASH FLOWS FROM FINANCING ACTIVITIES

Cash receipts from borrowings 32264821.52 10000000.00

Cash receipts relating to other financing activities 16113679647.75 11037461719.13

Total cash inflows from financing activities 16145944469.27 11047461719.13

Cash repayments for debts 43700000.00 10000000.00

Cash payments for distribution of dividends or

profit and interest expenses 272655694.83 182679899.11

Cash payments relating to other financing

activities 15582101156.66 10463180682.33

Total cash outflows from financing activities 15898456851.49 10655860581.44

Net cash flows from financing activities 247487617.78 391601137.69

4.EFFECT OF FOREIGN EXCHANGE RATE

CHANGES ON CASH AND CASH

EQUIVALENTS (47935.97) (176567.25)

5. NET INCREASE IN CASH AND CASH

EQUIVALENTS 867551697.22 392998658.98

Add: Cash and cash equivalents at beginning of the

year 2894333956.38 1817654598.01

6. CASH AND CASH EQUIVALENTS

AT END OF YEAR 3761885653.60 2210653256.99

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 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III. 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

RMB428.13 million 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 asset exchange proposal was

approved by shareholders in the Second Extraordinary General Meeting on December 29 2000. The

transaction was completed on 8 January 2001.

On 18 February 2004 the Company’s original major shareholder Shenzhen Investment Management

Company entered into a Stock Transfer Agreement with Sinopharm Group Co. Ltd. (hereinafter referred

to as “Sinopharm Group”) to transfer its 43.33% shares in the Company to Sinopharm Group. The legal

procedures of the above equity transfer were completed on 9 December 2004. At the same time as

approved by the State-owned Assets Supervision and Administration Commission of the State Council

(GZCQ (2004) No.525) and the China Securities Regulatory Commission (ZJGSZ (2004) No.94) the

nature of these shares was changed from state-owned stock to state-owned legal entity stock and

Sinopharm Group became the largest shareholder of the Company.

On 14 April 2006 the Company’s proposal on reformation of segregated stocks was approved. To gain

liquidity for the restricted stocks of the Company the holders of the restricted stocks of the Company

agreed to pay the following consideration: based on the stock registration as of 27 April 2006 the

Company issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A shares to liquidated

A-shareholders which went public on the same day. After this bonus issue the total number of shares of

the Company remained unchanged with corresponding changes in the composition of shareholdings.On March 14 2014 the company issued 74482543 ordinary shares (A shares) through the non-public

offering. Par value per share is RMB1.00. The shares shall not be transferred within 36 months since the

issue day. The total number of shares of the Company was 362631943 since the date of issue.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III. Profile of the Company (Continued)

(1) Historical development and basic information (Continued)

As of 31 October 2016 the company issued RMB65.50 million ordinary shares (A shares) through the

non-public offering. Par value per share is RMB1.00. 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”) Guangdong South

Pharmaceutical Foreign Trade Co. Ltd. (“South Pharma & Trade”) Guangdong Dong Fang Uptodate &

Special Medicines Co. Ltd. (“Guangdong Uptodate & Special Medicines”) by issuing shares and raisedsupporting funds by issuing shares to Ping An Asset Management Co. Ltd.(“Ping An AssetManagement”) 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 2020 the total share capital was RMB428.13 million.

The Company is registered with Shenzhen Administration for Industry & Commerce. Its Uniform Social

Credit Code is 91440300192186267U. The operation period of the Company is from 2 August 1986 to

the long term. The registered capital of the Company is RMB428.13 million. The legal representative of

the Company is Lin Zhaoxiong.The approved scope of business of the Company and its subsidiaries (together “the Group”) includes:

the wholesale of traditional Chinese medicine preparations bulk pharmaceutical drugs chemical

preparations bulk antibiotic drugs antibiotic preparations biochemical drugs biological products

(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations narcotic drugs

toxic drugs for medical use protein assimilation preparation and peptide hormones; trading of dietary

supplement; research development and consultation services of pharmaceutical packaging materials

and pharmaceutical industry products; industrial investment holding; domestic trade; material supply and

marketing industry (other than special licensing); sale of ambulances; trade of second-class and third-

class medical equipment; project investment; property management and leasing of self-owned

properties; pharmacovigilance and medical information consulting; parking operation; logistics and

related services; package agency business; logistic design; import and export services (excluding

projects that are prohibited by the country; and limited projects has to be approved before operating).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III. Profile of the Company (Continued)

(2) The Group’s parent and ultimate parent companies are Sinopharm Group and China National

Pharmaceutical Group Corporation (“CNPGC”) respectively.

(3) These financial statements were authorized for issue by the board of directors of the Company

on 29 August 2020.

(4) Subsidiaries consolidated in the financial statements for the current period and change in the

consolidation scope are shown in Note VIII.IV. Basis of preparation

The financial statements were prepared in accordance with the Basic Standard and specific standards of

Accounting Standards for Business Enterprises issued by the Ministry of Finance and the specific

accounting standards application guidance interpretation and other relevant regulations issued oramended thereafter (hereafter collectively referred to as “Accounting Standards for Business

Enterprises” or “CAS”). Except for certain financial instruments the financial statements have beenprepared using the historical cost as the principle of measurement. Where assets are impaired

provisions for asset impairment are made in accordance with the relevant requirements.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

V. Summary of significant accounting policies and accounting estimates

The Group determines the specific accounting policies and estimates based on its features of production

and operation primarily comprising the methods of provision for expected credit losses on receivables

valuation of inventories depreciation of fixed assets and amortisation of intangible assets the

measurement model of investment properties recognition and measurement of revenue etc.

(1) Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements of the Company for the year ended 30 June 2020 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 2020 and the operating results cash flows and other

information for the six months ended 30 June 2020 of the Group and the Company.

(2) Accounting year

The Company’s accounting year begins on 1 January and ends on 31 December.

(3) Functional currency

The Group’s functional and presentation currency is Renminbi (RMB). The currency unit is RMB

Yuan unless otherwise stated.

(4) Business combinations

Business combinations are classified into business combinations involving enterprises under common

control and business combinations not involving enterprises under common control.(a) Business combinations involving enterprises under common control

A business combination involving enterprises under common control is a business combination in which

all of the combining enterprises are ultimately controlled by the same party or parties both before and

after the combination and that control is not transitory. In a business combination involving enterprises

under common control the enterprise that at the combination date obtains control of another combining

enterprise is the absorbing enterprise while that other combining enterprise is the enterprise being

absorbed. The combination date is the date on which the absorbing enterprise effectively obtains

control on the enterprise being absorbed.The assets and liabilities (including goodwill arising from the ultimate controlling party’s acquisition of the

enterprise being absorbed) that are obtained by the absorbing enterprise in a business combination

involving enterprises under common control shall be measured on the basis of their carrying amounts in

the financial statements of the ultimate controlling party at the combination date. The difference

between the carrying amount of the net assets obtained and the carrying amount of the consideration

paid for the combination (or the aggregate face value of shares issued as consideration) shall be

adjusted to capital premium under capital reserves and the balance transferred from capital reserves

under the old accounting system. If the capital premium is not sufficient to absorb the difference any

excess shall be adjusted against retained earnings.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(4) Business combinations (Continued)

(b) Business combinations involving enterprises not under common control

A business combination not involving enterprises under common control is a business combination in

which all of the combining enterprises are not ultimately controlled by the same party or parties both

before and after the combination. In a business combination not involving enterprises under common

control the enterprise that on the acquisition date obtains control of another combining enterprise is the

acquirer while that other combining enterprise is the acquiree. The acquisition date is the date on

which the acquirer effectively obtains control of the acquiree.The acquirer shall measure the acquiree’s identifiable assets liabilities and contingent liabilities acquired

in the business combination at their fair values on the acquisition date.Goodwill is initially recognised and measured at cost being the excess of the aggregate of the fair value

of the consideration transferred (or the fair value of the equity securities issued) and any fair value of the

Group’s previously held equity interest in the acquiree over the Group’s interest in the fair value of the

acquiree’s net identifiable assets. After initial recognition goodwill is measured at cost less any

accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred

(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity

interest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiable

assets the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets

liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of

the equity securities issued) together with the fair value of the Group’s previously held equity interest in

the acquiree. If after that reassessment the aggregate of the fair value of the consideration transferred

(or the fair value of the equity securities issued) and the Group’s previously held equity interest in the

acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets

the Group recognises the remaining difference in profit or loss.Where the business combination not involving enterprises under common control is achieved in stages

the acquirer’s previously held equity interests in the acquiree are remeasured at the fair value on the

acquisition date with the difference between the fair value and carrying amount recognised as

investment income for the current period. If the acquirer’s previously held equity interests of the acquiree

involve other comprehensive income (“OCI”) under the equity method the accounting treatment is

conducted on the same basis as would have been required if the investee had directly disposed of the

related assets or liabilities and the changes in shareholders’ equity other than net profit or loss OCI and

profit distributions are charged to profit or loss for the current period on the acquisition date. For financial

assets at fair value through OCI held before the acquisition date changes in fair value that were

accumulated through OCI will transfer to retained earnings.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(5) Preparation of consolidated financial statements

The scope of the consolidated financial statements which include the financial statements of the

Company and all of its subsidiaries is determined on the basis of control. A subsidiary is an entity that

is controlled by the Company (such as an enterprise a deemed separate entity or a structured entity

controlled by the Company).In the preparation of the consolidated financial statements the financial statements of subsidiaries are

prepared for the same accounting year as the Company using consistent accounting policies. All

intra-group assets and liabilities equity income expenses and cash flows relating to transactions

between members of the Group are eliminated in full on consolidation.Where the loss for the current period attributable to non-controlling interests of a subsidiary exceeds the

non-controlling interests of the opening balance of equity of the subsidiary the excess shall still be

allocated against the non-controlling interests.

For subsidiaries acquired through business combinations not involving entities under common control

the financial performance and cash flows of the acquiree shall be consolidated from the date on which

the Group obtains control and continue to be consolidated until the date such control ceases. While

preparing the consolidated financial statements the Group shall adjust the subsidiary’s financial

statements on the basis of the fair values of the identifiable assets liabilities and contingent liabilities

recognised on the acquisition date.

For subsidiaries acquired through business combinations involving entities under common control the

financial performance and cash flows of the entity being absorbed shall be consolidated from the

beginning of the period in which the combination occurs. While preparing the comparative financial

statements adjustments are made to related items in the financial statements for the prior period as if

the reporting entity after the combination has been in existence since the date the ultimate controlling

party first obtained the control.The Group reassesses whether or not it controls an investee if any change in facts and circumstances

indicates that there are changes to one or more of the three elements of control.When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-term

equity investment in the subsidiary in stages if each of the multiple transactions does not form part of a

bundled transaction the transactions conducted before the loss of control of the subsidiary are

accounted for in accordance with the accounting policy for partial disposal of the equity investment in

subsidiaries where control is retained. If each of the multiple transactions forms part of a bundled

transaction which eventually results in the loss of control in the subsidiary these multiple transactions

are accounted for as a single transaction. In the consolidated financial statements the difference

between the consideration received and the corresponding proportion of the subsidiary’s net assets

(calculated continuously from the acquisition date) in each transaction prior to the loss of control shall be

recognised in other comprehensive income and transferred to profit or loss when the parent eventually

loses control of the subsidiary.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(6) Cash and cash equivalents

Cash comprises the Group’s cash on hand and bank deposits that can be readily withdrawn on demand.

Cash equivalents are short-term highly liquid investments that are readily convertible into known

amounts of cash and are subject to an insignificant risk of changes in value.

(7) Foreign currency transactions and foreign currency translation

The Group translates foreign currency transactions into its functional currency.

At the balance sheet date monetary items denominated in foreign currencies are translated into RMB

using the spot exchange rates on the balance sheet date. Exchange differences arising from these

translations are recognised in profit or loss for the current period except for those attributable to foreign

currency borrowings that have been taken out specifically for the acquisition or construction of qualifying

assets which are capitalized as part of the cost of those assets. Non-monetary items denominated in

foreign currencies that are measured at historical cost are translated at the balance sheet date using the

spot exchange rates at the dates of the transactions.

Foreign currency cash flows are translated using the spot exchange rates prevailing on the dates of cash

flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

(8) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial

liability or equity instrument of another entity.Recognition and derecognition

The Group recognises a financial asset or a financial liability when it becomes a party to the contractual

provisions of a financial instrument.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(8) Financial instruments (Continued)

Recognition and derecognition (Continued)

A financial asset (or where applicable a part of a financial asset or part of a group of similar financial

assets) is primarily derecognised (i.e. removed from the Group’s consolidated balance sheet) when:

(1) the rights to receive cash flows from the financial asset have expired; or

(2) the Group has transferred its rights to receive cash flows from the financial asset or has

assumed an obligation to pay the received cash flows in full without material delay to a third

party under a “pass-through” arrangement; and either (i) has transferred substantially all the

risks and rewards of the financial asset or (ii) has neither transferred nor retained substantially

all the risks and rewards of the asset but has transferred control of the financial asset.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or

expires. When an existing financial liability is replaced by another from the same lender on

substantially different terms or the terms of an existing liability are substantially modified such an

exchange or modification is treated as a derecognition of the original liability and a recognition of a new

liability and the difference between the respective carrying amounts is recognised in profit or loss.Regular way purchases and sales of financial assets are recognised and derecognised using trade date

accounting. Regular way purchases or sales are purchases or sales of financial assets that require

delivery within the period generally established by regulation or convention in the marketplace. The

trade date is the date that the Group committed to purchase or sell a financial asset.

Classification and measurement of financial assets

The classification of financial assets at initial recognition depends on the financial asset’s contractual

cash flow characteristics and the Group’s business model for managing them: financial assets at fair

value through profit or loss financial assets at amortised cost and financial assets at fair value through

other comprehensive income. All affected related financial assets will be reclassified only if the Group

changes its business model for managing financial assets.

Financial assets are measured at fair value on initial recognition but accounts receivable or notes

receivable arising from the sale of goods or rendering of services that do not contain significant financing

components or for which the Group has applied the practical expedient of not adjusting the effect of a

significant financing component due within one year are initially measured at the transaction price.

For financial assets at fair value through profit or loss relevant transaction costs are directly recognised

in profit or loss and transaction costs relating to other financial assets are included in the initial

recognition amounts.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(8) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

The subsequent measurement of financial assets depends on their classification as follows:

Debt investments measured at amortised cost

The Group measures financial assets at amortised cost if both of the following conditions are met: the

financial asset is held within a business model with the objective to hold financial assets in order to

collect contractual cash flows; the contractual terms of the financial asset give rise on specified dates to

cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest method and

are subject to impairment. Gains and losses are recognised in profit or loss when the asset is

derecognised modified or impaired.

Debt investments at fair value through other comprehensive income

The Group measures debt investments at fair value through other comprehensive income if both of the

following conditions are met: the financial asset is held within a business model with the objective of both

holding to collect contractual cash flows and selling; the contractual terms of the financial asset give rise

on specified dates to cash flows that are solely payments of principal and interest on the principal

amount outstanding. Interest income is recognised using the effective interest method. The interest

income impairment losses and foreign exchange revaluation are recognised in profit or loss. The

remaining fair value changes are recognised in other comprehensive income. Upon derecognition the

cumulative fair value change recognised in other comprehensive income is recycled to profit or loss.

Equity investments at fair value through other comprehensive income

The Group can elect to classify irrevocably its equity investments which are not held for trading as equity

investments designated at fair value through other comprehensive income. Only the relevant dividend

income (excluding the dividend income explicitly recovered as part of the investment cost) is recognised

in profit or loss. Subsequent changes in the fair value are included in other comprehensive income

and no provision for impairment is made. When the financial asset is derecognised the accumulated

gains or losses previously included in other comprehensive income are transferred from other

comprehensive income to retained earnings.

Financial assets at fair value through profit or loss

The financial assets other than the above financial assets measured at amortised cost and financial

assets at fair value through other comprehensive income are classified as financial assets at fair value

through profit or loss. Such financial assets are subsequently measured at fair value with net changes in

fair value recognised in profit or loss except for the derivatives designated as hedging instruments in an

effective hedge.Only when an accounting mismatch is eliminated or significantly decreased financial assets are

designated as financial assets at fair value through profit or loss at initial recognition.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(8) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

When an enterprise initially designates a financial asset as a financial asset at fair value through profit or

loss it cannot be reclassified to other financial assets; and other financial assets cannot be

re-designated after initial recognition as financial assets measured at fair value through profit or loss.

Classification and measurement of financial liabilities

The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value

through profit or loss other financial liabilities or derivatives designated as effective hedging instruments.

For financial liabilities at fair value through profit or loss relevant transaction costs are directly

recognised in profit or loss and transaction costs relating to other financial liabilities are included in the

initial recognition amounts.The subsequent measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including

derivative instruments attributable to financial liabilities) and financial liabilities designated upon initial

recognition as at fair value through profit or loss. Financial liabilities held for trading (including

derivative instruments attributable to financial liabilities) are subsequently measured at fair value. All

changes in fair value of such financial liabilities are recognised in profit or loss except for the derivatives

designated as hedging instruments in an effective hedge. Financial liabilities designated at fair value

through profit or loss are subsequently measured at fair value and gains or losses are recognised in

profit or loss except for the gains or losses arising from the Group’s own credit risk which are presented

in other comprehensive income. If gains or losses arising from the Group’s own credit risk which are

presented in other comprehensive income will lead to or expand accounting mismatch in profit or loss

the Group will include all the changes in fair value (including the amount affected by changes in the

Group’s own credit risk) of such financial liabilities in profit or loss.Only if one of the following conditions is met can financial liabilities be designated as financial liabilities at

fair value through profit or loss on initial recognition:

(1) It can eliminate or significantly reduce the accounting mismatch.

(2) The formal written document of the risk management or investment strategy has stated that the

portfolio of financial instruments is managed evaluated and reported to key managers on the

basis of fair value.

(3) The financial liability is a hybrid instrument that contains one or more embedded derivatives

unless the embedded derivatives have no significant change in the cash flows of the hybrid

instrument or the embedded derivatives should obviously not be separated from the related

hybrid instruments.

(4) Mixed instruments contain embedded derivatives that need to be split but cannot be measured

separately at the time of acquisition or on subsequent balance sheet days.When an enterprise designates a financial liability as a financial liability at fair value through profit or loss

it cannot be reclassified as other financial liabilities; nor can other financial liabilities be re-designated as

financial liabilities at fair value through profit or loss after initial recognition.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(8) Financial instruments (Continued)

Classification and measurement of financial liabilities (Continued)

Other financial liabilities

After initial recognition such financial liabilities are measured at amortised cost using the effective

interest method.Impairment of financial assets

Based on the expected credit losses (“ECLs”) the Group recognises an allowance for ECLs for the

financial assets measured at amortised cost debt investments at fair value through other

comprehensive income and contract assets.

For trade receivables and contract assets that do not contain a significant financing component the

Group applies the simplified approach to recognise a loss allowance based on lifetime ECLs.

For trade receivables and contract assets that contain a significant financing component the Group

chooses to adopt the simplified approach to recognise a loss allowance based on lifetime ECLs.

Except for financial assets which apply the simplified approach as mentioned above and other financial

assets the Group assesses whether the credit risk has increased significantly since initial recognition at

each balance sheet date. If the credit risk has not increased significantly since initial recognition (stage

1) the loss allowance is measured at an amount equal to 12-month ECLs by the Group and the interest

income is calculated according to the carrying amount and the effective interest rate; if the credit risk has

increased significantly since initial recognition but are not credit-impaired (stage 2) the loss allowance is

measured at an amount equal to lifetime ECLs by the Group and the interest income is calculated

according to the carrying amount and the effective interest rate; if such financial assets are

credit-impaired after initial recognition (stage 3) the loss allowance is measured at an amount equal to

lifetime ECLs by the Group and the interest income is calculated according to the amortised cost and the

effective interest rate. If the credit risk of financial instruments is low at the balance sheet date the Group

assumes that the credit risk has not increased significantly since initial recognition.The Group evaluates the expected credit losses on financial instruments on a single and combined basis.Taking into account the credit risk characteristics of different customers the Group evaluates the

expected credit losses on accounts receivable based on the aging portfolio.Refer to Note X (3) for the disclosure of the Group's criteria for judging the significant increase in credit

risk the definition of assets with impaired credit losses and the assumption of measuring expected

credit losses.When the Group no longer reasonably expects to be able to recover all or part of the contract cash flows

of the financial assets the Group directly writes down the carrying amount of the financial asset.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(8) Financial instruments (Continued)

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if

there is a currently enforceable legal right to offset the recognised amounts; and there is an intention to

settle on a net basis or to realise the assets and settle the liabilities simultaneously.Transfer of financial assets

A financial asset is derecognised when the Group has transferred substantially all the risks and rewards

of the asset to the transferee. A financial asset is not derecognised when the Group retains

substantially all the risks and rewards of the financial asset.When the Group has neither transferred nor retained substantially all the risks and rewards of the

financial asset it either (i) derecognises the financial asset and recognises the assets and liabilities

created in the transfer when it has not retained control of the asset; or (ii) continues to recognise the

transferred asset to the extent of the Group's continuing involvement in which case the Group also

recognises an associated liability.

Continuing involvement that takes the form of a guarantee over the transferred financial asset is

measured at the lower of the original carrying amount of the financial asset and the guarantee amount.The guarantee amount is the maximum amount of consideration that the Group could be required to

repay.

(9) Notes receivables

For details of the method for determining the expected credit loss of notes receivable please refer to

Note V (10) “Financial instruments - Impairment of financial instruments”.

(10) Accounts receivables

For details of the method for determining the expected credit loss of accounts receivable please refer to

Note V (10) “Financial instruments - Impairment of financial instruments”.

(11) Receivable financing

It includes notes receivable and accounts receivables designated at fair value through other

comprehensive income as at balance sheet date.

For details of the method for determining the expected credit loss of receivables financing please refer

to Note V (10) “Financial instruments - Impairment of financial instruments”.

(12) Other receivables

For details of the method for determining the expected credit losses of other receivables please refer to

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

Note V (10) “Financial instruments - Impairment of financial instruments”.III Summary of significant accounting policies and accounting estimates (Continued)

(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.Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase costs of

conversion and other costs. Cost is determined on the weighted average basis. Turnover materials

include low value consumables and packing materials which are on the immediate write-off basis.The Group adopts the perpetual inventory system.

At the balance sheet date inventories are stated at the lower of cost and net realisable value. The

inventories are written down below cost to net realisable value and the write-down is recognised in profit

or loss if the cost is higher than the net realisable value. When the circumstances that previously

caused the inventories to be written down below cost no longer exist in which case the net realisable

value of inventories becomes higher than the carrying amount the amount of the write-down is reversed.The reversal is limited to the amount of the original write-down and is recognised in profit or loss.Net realisable value is the estimated selling price in the ordinary course of business less the estimated

costs of completion and the estimated costs necessary to make the sale and relevant taxes. Finished

goods are written down item by item.

(14) Contract assets

The Group presents contract assets or contract liabilities depending on the relationship between the

satisfaction of its performance obligations and the customer’s payment in the balance sheet. The

Group offsets the contract assets and contract liabilities under the same contract and presents the net

amount.

A contract asset is the right to consideration in exchange for goods or services that the Group has

transferred to a customer and that right is conditioned on something other than the passage of time.

For details of how the Group measures and accounts for the ECLs of a contract asset refer to Note V

(10) “Financial instruments - Impairment of financial instruments”.

(15) Assets relating to contract cost

The Group’s contract cost assets include the costs to obtain and fulfil a contract and are classified as

inventories other current assets and other non-current assets by liquidity.The Group recognises as an asset the incremental costs of obtaining a contract with a customer if the

Group expects to recover those costs unless the amortisation period of the asset is one year or less.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(15) Assets relating to contract cost (Continued)

Other than the costs which are capitalised as inventories fixed assets and intangible assets etc. costs

incurred to fulfil a contract with a customer are capitalised as an asset if all of the following criteria are

met:

(1) the costs relate directly to a contract or to an anticipated contract including direct labour direct

materials overheads (or similar expenses) costs that are explicitly chargeable to the customer

and other costs that are incurred only because an entity entered into the contract;

(2) the costs generate or enhance resources of the Group that will be used in satisfying

performance obligations in the future; and

(3) the costs are expected to be recovered.

The contract cost asset is amortised and charged to profit or loss on a systematic basis that is consistent

with the pattern of the revenue to which the asset related is recognised.The Group accrues provisions for impairment and recognises impairment losses to the extent that the

carrying amount of a contract cost asset exceeds:

(1) the remaining amount of consideration that the entity expects to receive in exchange for the

goods or services to which the asset relates; less

(2) the costs that are expected to be incurred to transfer those related goods or services.

The Group recognises in profit or loss a reversal of the impairment loss previously recognised to the

extent that the difference between (1) and (2) exceeds the carrying amount of the asset due to the

subsequent changes of the factors causing asset impairment in previous periods but the carrying

amount after the reversal does not exceed the carrying amount of the asset at the reversal date if no

impairment loss is otherwise recognised.

(16) Long-term equity investments

Long-term equity investments include equity investments in subsidiaries joint ventures and associates.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(16) Long-term equity investments (Continued)

A long-term equity investment is initially measured at its initial investment cost on acquisition. For

long-term equity investments arising from business combination involving enterprises under common

control the initial investment cost shall be the share of the carrying amount of equity of the acquiree in

the consolidated financial statements of the ultimate controlling party as at the combination date. The

difference between the initial investment cost and book value of consideration of combination is adjusted

to capital reserves and to retained earnings if capital reserves is insufficient. Other comprehensive

income recognised before the combination date is accounted for on the same basis as would have been

required if the investee had directly disposed of the related assets or liabilities. Equity previously

recognised resulting from the investee’s equity changes other than profit or loss other comprehensive

income and profit distribution is reclassified to profit or loss. Equity which still involves a long-term

investment after disposal is reclassified to profit or loss on a pro-rata basis and equity which swiches to a

financial instrument after disposal is fully reclassified to profit or loss. For long-term equity investments

arising from business combination involving enterprises not under common control the investment cost

shall be the combination cost. (For a business combination achieved in stages the initial investment cost

is determined as the sum of the carrying amount of equity of the acquiree and the additional investment

costs on the combination date.) The combination cost involves the assets paid by the acquirer liabilities

incurred and the fair value of equity securities. Other comprehensive incomes recognised using the

equity method before the combination date is accounted for on the same basis as would have been

required if the investee had directly disposed of the related assets or liabilities. Equity previously

recognised resulting from the investee’s equity changes other than profit or loss other comprehensive

income and profit distribution is reclassified to profit or loss. Equity which still involves a long-term

investment after disposal is reclassified to profit or loss on a pro-rata basis and equity which swiches to a

financial instrument after disposal is fully reclassified to profit or loss. The accumulated changes in the

fair value of financial assets at fair value through other comprehensive income is reclassified to retained

earnings when adopting the cost method. Depending on the way of acquisition of long-term equity

investments the initial investment cost is determined as follows: For long-term equity investments

acquired by way of cash payment the initial investment cost includes all directly associated expenses

applicable taxes and fees and other necessary expenses. For long-term equity investments acquired by

way of issuing equity securities the initial investment cost includes the fair value of equity securities. For

long-term equity investments acquired by way of the swap of non-monetary assets the initial investment

cost shall be determined in accordance with “ASBE No. 7 — Swap of Non-monetary Assets.” For

long-term equity investments acquired by way of debt restructuring the initial investment cost shall be

determined in accordance with “ASBE No. 12 — Debt Restructuring.”

For a long-term equity investment where the Company can exercise control over the investee the

long-term investment is accounted for using the cost method in the Company’s individual financial

statements. Control is achieved when the Group is exposed or has rights to variable returns from its

involvement with the investee and has the ability to affect those returns through its power over the

investee.Under the cost method the long-term equity investment is measured at its initial investment cost.When additional investment is made or the investment is recouped the cost of long-term equity

investment is adjusted accordingly. Cash dividends or profit distributions declared by the investee are

recognised as investment income in profit or loss.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(16) Long-term equity investments (Continued)

The equity method is adopted when the Group has joint control or exercises significant influence over

the investee. Joint control is the contractually agreed sharing of control of an arrangement which

exists only when decisions about the relevant activities require the unanimous consent of the parties

sharing control. Significant influence is the power to participate in the financial and operating policy

decisions of the investee but is not control or joint control with other parties over those policies.Under the equity method where the initial investment cost of a long-term equity investment exceeds the

Group’s interest in the fair value of the investee’s identifiable net assets at the acquisition date no

adjustment is made to the initial investment cost. Where the initial investment cost is less than the

Group’s interest in the fair values of the investee’s identifiable net assets at the acquisition date the

difference is charged to profit or loss and the cost of the long-term equity investment is adjusted

accordingly.Under the equity method after it has acquired a long-term equity investment the Group recognises its

share of the investee’s profit or loss as well as its share of the investee’s other comprehensive income

as investment income or loss and other comprehensive income and adjusts the carrying amount of the

investment accordingly. The Group recognises its share of the investee’s profit or loss after making

appropriate adjustments to the investee’s profit or loss based on the fair value of the investee’s

identifiable assets at the acquisition date using the Group’s accounting policies and periods.Unrealised profits and losses from transactions with its joint ventures and associates are eliminated to

the extent of the Group’s investments in the associates or joint ventures (except for assets that constitute

a business) (However any loss arising from such transactions which are attributable to an impairment

loss shall be recognised at its entirety). The carrying amount of the investment is reduced based on the

Group’s share of any profit distributions or cash dividends declared by the investee. The Group’s share

of net losses of the investee is recognised to the extent that the carrying amount of the investment

together with any long-term interests that in substance form part of its net investment in the investee is

reduced to zero except that the Group has the obligations to assume further losses. The Group’s

owner’s equity changes other than those arising from the investee’s profit or loss other comprehensive

income or profit distribution is recognised in the Group’s equity and the carrying amount of the

long-term equity investment is adjusted accordingly.Upon disposal of a long-term equity investment the difference between the proceeds actually received

and the carrying amount is recognised in profit or loss. For a long-term equity investment accounted for

using the equity method when the Group discontinues using the equity method due to disposal all

amounts previously recognised in other comprehensive income are accounted for on the same basis as

would have been required if the investee had directly disposed of the related assets or liabilities. Equity

previously recognised resulting from the owner’s equity changes other than profit or loss other

comprehensive income and profit distribution is reclassified to profit or loss in its entirety. When the

Group continues to use the equity method the amounts previously recognised in other comprehensive

income are accounted for on the same basis as would have been required if the investee had directly

disposed of the related assets or liabilities and reclassified to profit or loss on a pro-rata basis. Equity

previously recognised resulting from the investee’s equity changes other than profit or loss other

comprehensive income and profit distribution is reclassified to profit or loss on a pro-rata basis.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(17) Investment properties

Investment properties are properties held to earn rental income and/or for capital appreciation.Investment properties include land use rights leased out land use rights held for transfer upon capital

appreciation and buildings leased out.

An investment property is measured initially at cost. If the economic benefits relating to an investment

property will probably flow in and the cost can be reliably measured subsequent costs incurred for the

property are included in the cost of the investment property. Otherwise subsequent costs are

recognised in profit or loss as incurred.The Group adopts the cost model for subsequent measurement of investment properties. Buildings and

land use rights are depreciated or amortized to their estimated net residual values over their estimated

useful lives. The estimated useful lives the estimated net residual values that are expressed as a

percentage of cost and the annual depreciation (amortization) rates of investment properties are as

follows:

Estimated useful lives Estimated residual value Annual depreciation

(amortization) rates

Buildings 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 (amortization) method applied

are reviewed and adjusted as appropriate at the end of each year.

(18) Fixed assets

Recognition criteria

A fixed asset is recognised only when the economic benefits associated with the asset will probably flow

into the Group and the cost of the asset can be measured reliably. Subsequent expenditures incurred

for a fixed asset that meets the recognition criteria shall be included in the cost of the fixed asset and the

carrying amount of the component of the fixed asset that is replaced shall be derecognised. Otherwise

such expenditures are recognised in profit or loss as incurred. Fixed assets are initially measured at

cost by taking into account the effect of any asset retirement obligations. The cost of a purchased fixed

asset comprises the purchase price relevant taxes and any directly attributable expenditure for bringing

the asset to working condition for its intended use. The Group reviews the useful life and estimated net

residual value of a fixed asset and the depreciation method applied at least at each year end and make

adjustments if necessary.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(18) Fixed assets (Continued)

Depreciation method

Estimated useful

lives

Estimated residual

value

Annual depreciation

rates

Buildings 20-35years 0-5% 2.71-5.00%

Machineries 5-14years 3-6% 6.79-19.40%

Motor vehicles 3-10years 0-5% 9.50-33.33%

Office equipments 3-10years 0-5% 9.50-33.33%

Electronic equipments within 5 years 0% 20% and above

(19) Construction in progress

The cost of construction in progress is determined according to the actual expenditures incurred for the

construction including all necessary construction expenditures incurred during the construction period

borrowing costs that shall be capitalised before the construction is ready for its intended use and other

relevant expenditures.

An item of construction in progress is transferred to fixed assets when the asset is ready for its intended

use.

(20) Borrowing costs

Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of

the funds. Borrowing costs include interest amortisation of discounts or premiums related to

borrowings ancillary costs incurred in connection with the arrangement of borrowings and exchange

differences arising from foreign currency borrowings.The borrowing costs that are directly attributable to the acquisition construction or production of a

qualifying asset are capitalised. The amounts of other borrowing costs incurred are recognised as an

expense in the period in which they are incurred. Qualifying assets are assets (fixed assets investment

properties inventories etc.) that necessarily take a substantial period of time of acquisition construction

or production to get ready for their intended use or sale.The capitalisation of borrowing costs commences only when all of the following conditions are satisfied:

(1) expenditures for the asset have been incurred;

(2) borrowing costs have been incurred; and

(3) activities that are necessary to acquire construct or produce the asset for its intended use or

sale have been undertaken.

Capitalisation of borrowing costs ceases when the qualifying asset being acquired constructed or

produced gets ready for its intended use or sale. Any borrowing costs subsequently incurred are

recognised in profit or loss.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(20)Borrowing costs (Continued)

During the capitalisation period the amount of interest eligible for capitalisation for each accounting

period shall be determined as follows:

(1) where funds are borrowed specifically for the purpose of obtaining a qualifying asset the

amount of interest eligible for capitalisation is the actual interest costs incurred on that borrowing

for the period less any bank interest earned from depositing the borrowed funds before being

used on the asset or any investment income on the temporary investment of those funds; or

(2) where funds are borrowed generally for the purpose of obtaining a qualifying asset the amount

of interest eligible for capitalisation is determined by applying a weighted average interest rate

on the general borrowings to the weighted average of the excess of the cumulative expenditures

on the asset over the expenditures on the asset funded by the specific borrowings.

Capitalisation of borrowing costs is suspended during periods in which the acquisition construction or

production of a qualifying asset is suspended abnormally by activities other than those necessary to get

the asset ready for its intended use or sale when the suspension is for a continuous period of more than

3 months. Borrowing costs incurred during these periods are recognised as an expense in profit or loss

until the acquisition construction or production is resumed.

(21) Right-of-use assets

The right-of-use assets of the Group mainly include buildings machinery vehicles office equipments

and other equipments (such as land use right).

At the commencement date of the lease the Group recognises a right-of-use asset. The cost of the

right-of-use asset comprises: (i) the amount of the initial measurement of the lease liability; (ii) any lease

payments made at or before the commencement date of the lease less any lease incentives received;

(iii) any initial direct cost incurred; and (iv) an estimate of costs incurred by the lessee in dismantling and

removing the underlying asset restoring the site on which it is located or restoring the underlying asset

to the condition required by the terms and conditions of the lease. The right-of-use assets are

depreciated on a straight-line basis subsequently by the Group. If the Group is reasonably certain that

the ownership of the underlying asset will be transferred to the Group at the end of the lease term the

Group depreciates the asset from the commencement date to the end of the useful life of the asset.Otherwise the Group depreciates the assets from the commencement date to the earlier of the end of

the useful life of the asset or the end of the lease term.The Group remeasures the lease liability at the present value of the changed lease payments and

adjusts the carrying amount of the right-of-use assets accordingly when the carrying amount of the

right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease

liability the Group recognises the remaining amount of the remeasurement in profit or loss.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(22) Intangible assets

An intangible asset shall be recognised only when it is probable that the economic benefits associated

with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible

assets are measured initially at cost. However intangible assets acquired in a business combination

not involving entities under common control with a fair value that can be measured reliably are

recognised separately as intangible assets and initially measured at the fair value at the date of

acquisition.The useful life of an intangible asset is determined according to the period over which it is expected to

generate economic benefits for the Group. An intangible asset is regarded as having an indefinite

useful life when there is no foreseeable limit to the period over which the asset is expected to generate

economic benefits for the Group.The useful lives of the intangible assets are as follows:

Categories Useful lives

Land use rights Between the approved useful period and the

Company’s operating period

Software 3-5 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 that are purchased by the Group are accounted for as intangible assets. Buildings such

as plants that are developed and constructed by the Group and relevant land use rights are accounted

for as fixed assets and intangible assets respectively. Payments for the land and buildings purchased

are allocated between the land use rights and the buildings; they are accounted for as fixed assets if they

cannot be reasonably allocated.

An intangible asset with a finite useful life is amortised using the straight-line method over its useful life.

For an intangible asset with a finite useful life the Group reviews the useful life and amortisation method

at least at each year end and makes adjustment if necessary.Land use rights allocated by the State are regarded as an intangible asset with an indefinite useful life

due to an uncertain useful life. The impairment test should be conducted for the intangible assets with

the indefinite service life every year to determine whether the impairment exists. The intangible assets

with the indefinite service life shall not be amortized and the Company shall make the review of the

service life of the intangible assets during every accounting period. If evidence prove that useful lives are

finite the Group accounts for the intangible assets in accordance with intangible assets with a finite

useful life.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(22) Intangible assets (Continued)

Internal research and development project

The Group classifies the expenses for internal research and development as research costs and

development costs. All research costs are charged to the current profit or loss as incurred. Expenditure

incurred on projects to develop new products is capitalised and deferred only when the Group can

demonstrate the technical feasibility of completing the intangible asset so that it will be available for use

or sale its intention to complete and its ability to use or sell the asset how the asset will generate future

economic benefits (including demonstration that the product derived from the intangible asset or the

intangible asset itself will be marketable or in the case of internal use the usefulness of the intangible

asset as such) the availability of technical and financial resources to complete the project and procure

the use or sale of the intangible asset and the ability to measure reliably the expenditure during the

development. Product development expenditure which does not meet these criteria is expensed when

incurred.

Expenditure for investigation evaluation and selection of production process and new drug researches

is recognised in profit or loss in the period in which it is incurred. Expenditure on the designation

measurement of the final utilization of the production process and new drugs before mass production is

capitalized only if all of the following conditions are satisfied:

(1) development of the production process and new drugs has been fully demonstrated by the

technical team;

(2) management has approved the budget of drug production development and new drugs;

(3) market research analysis suggests that the products produced by the new production

technology are able to be promoted;

(4) adequate technical financial and other resources to complete the development and the

ability to use or sell the intangible asset;

(5) the expenditure attributable to the intangible asset during its development phase can be

reliably measured.Other development costs that do not meet the conditions above are recognised in profit or loss in the

period in which they are incurred. Development costs previously recognised as expenses are not

recognised as an asset in a subsequent period. Capitalized expenditure on the development phase is

presented as development costs in the balance sheet and transferred to intangible assets at the date

that the asset is ready for its intended use.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(23) Long-term prepaid expenses

Long-term prepaid expenses include the expenditure for improvements to fixed assets under operating

leases and other expenditures that have been made but should be recognised as expenses over more

than one year in the current and subsequent periods. Long-term prepaid expenses are amortized on the

straight-line basis over the expected beneficial period and are presented at actual expenditure net of

accumulated amortization.

(24) Impairment of long-term assets

The Group determines the impairment of assets other than the impairment of inventories investment

properties measured using the fair value model deferred tax assets financial assets and assets

classified as held for sale using the following methods:

The Group assesses at the balance sheet date whether there is any indication that an asset may be

impaired. If any indication exists that an asset may be impaired the Group estimates the recoverable

amount of the asset and performs impairment testing. Goodwill arising from a business combination

and an intangible asset with an indefinite useful life are tested for impairment at least at each year end

irrespective of whether there is any indication that the asset may be impaired. Intangible assets that

have not been ready for their intended use are tested for impairment each year.The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value

of the future cash flows expected to be derived from the asset. The Group estimates the recoverable

amount on an individual basis unless it is not possible to estimate the recoverable amount of the

individual asset in which case the recoverable amount is determined for the asset group to which the

asset belongs. Identification of an asset group is based on whether major cash inflows generated by

the asset group are largely independent of the cash inflows from other assets or asset groups.When the recoverable amount of an asset or asset group is less than its carrying amount the carrying

amount is reduced to the recoverable amount by the Group. The reduction in the carrying amount is

treated as an impairment loss and recognised in profit or loss. A provision for impairment loss of the

asset is recognised accordingly.

For the purpose of impairment testing the carrying amount of goodwill acquired in a business

combination is allocated from the acquisition date on a reasonable basis to each of the related asset

groups unless it is impossible to allocate to the related asset groups in which case it is allocated to each

of the related sets of asset groups. Each of the related asset groups or sets of asset groups is an asset

group or a set of asset groups that is expected to benefit from the synergies of the business combination

and shall not be larger than a reportable segment determined by the Group.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(24) Impairment of long-term assets (Continued)

When testing an asset group (a set of asset groups) to which goodwill has been allocated for

impairment if there is any indication of impairment the Group firstly tests the asset group (set of asset

groups) excluding the amount of goodwill allocated for impairment i.e. the Group determines and

compares the recoverable amount with the related carrying amount and recognises any impairment loss.

After that the Group tests the asset group (set of asset groups) including goodwill for impairment the

carrying amount of the related asset group (set of asset groups) is compared to its recoverable amount.If the carrying amount of the asset group (set of asset groups) is higher than its recoverable amount the

amount of the impairment loss is firstly used to reduce the carrying amount of the goodwill allocated to

the asset group (set of asset groups) and then used to reduce the carrying amount of other assets

(other than the goodwill) within the asset group (set of asset groups) on a pro-rata basis of the carrying

amount of each asset.Once the above impairment loss is recognised it cannot be reversed in subsequent accounting periods.

(25) Contract liabilities

The Group presents contract assets or contract liabilities depending on the relationship between the

satisfaction of its performance obligations and the customer’s payment in the balance sheet. The

Group offsets the contract assets and contract liabilities under the same contract and presents the net

amount.

A contract liability is the obligation to transfer goods or services to a customer for which the Group has

received consideration or an amount of consideration is due from the customer such as an amount of

consideration that an entity has received before the transfer of the promised goods or services.

(26) Employee benefits

Employee benefits refer to all forms of consideration or compensation other than share-based payments

given by the Group in exchange for services rendered by employees or for termination of employment.

Employee benefits include short-term employee benefits post-employment benefits termination

benefits and other long-term employee benefits. Benefits given by the Group to an employee’s spouse

children and dependents.Short-term employee benefits

The actual occurred short-term employee benefits are recognized as liabilities during the accounting

period in which the service has been rendered by the employees and as costs of assets or expenses to

whichever the employee service is attributable.Post-employment benefits (defined contribution plans)

The employees of the Group participate in a pension scheme and unemployment insurance managed by

the local government and an enterprise pension fund the corresponding expenses shall be included in

the cost of related assets or profit or loss.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(26) Employee benefits (Continued)

Post-employment benefits (defined benefit plans)

The Group operates a defined benefit pension plan which requires contributions to be made to a

separately administered fund. The benefits are unfunded. The cost of providing benefits under the

defined benefit plan is determined using the projected unit credit method.Remeasurements arising from the defined benefit pension plan comprising actuarial gains and losses

the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit

liability) and the return on plan assets (excluding amounts included in net interest on the net defined

benefit liability) are recognised immediately in the balance sheet with a corresponding debit or credit to

equity through other comprehensive income in the period in which they occur. Remeasurements are

not reclassified to profit or loss in subsequent periods.Past service costs are recognised in profit or loss at the earlier of the date of the plan amendment and

the date that the Group recognises restructuring-related costs or termination benefits.Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The

Group recognises the following changes in the net defined benefit obligation under administrative

expenses and finance expenses in the income statement: service costs comprising current service

costs past service costs gains and losses on settlements; net interest comprising interest income on

plan assets interest costs on the defined benefit obligation and interest on the effect of the asset ceiling.Termination benefits

The Group provides termination benefits to employees and recognises an employee benefits liability for

termination benefits with a corresponding charge to profit or loss at the earlier of when the Group can

no longer withdraw the offer of those benefits resulting from an employment termination plan or a

curtailment proposal and when the Group recognise costs involving the payment of termination benefits.The Group offers termination benefits to the employees who accept internal retirement arrangements.Termination benefits refers to salaries and social securities paid to the employees who voluntarily retire

and approved by the management before the legal retirement age. The Group pays termination benefits

from the date of the starting of internal retirement arrangements to legal retirement age. When meeting

the recognition criteria termination benefits are recognised as liabilities from the date on which the

employees stop offering services to the legal retirement date and recognised in profit or loss as incurred.The change of termination benefits’ actuarial assumptions and difference incurred by the adjustment of

welfare standards are recognised in profit or loss as incurred.The termination benefits expected to be settled within one year since the balance sheet date are

classified as current liabilities.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(26) Employee benefits (Continued)

Other long term employee benefits

Other long-term employee’ benefits provided to employees shall be recognised and measured as net

liabilities or net assets where provisions regarding post-employment benefits are applicable provided

that changes shall be included in the current profit and loss or related asset costs.

(27) Lease liability

At the commencement date of the lease the Group measures the lease liability at the present value of

the lease payments that are not paid at that date except for short-term leases and leases of low-value

assets. In calculating the present value of the lease payments the Group uses the interest rate implicit in

the lease as the discount rate. If that rate cannot be readily determined the Group uses the lessee’s

incremental borrowing rate. The Group calculates the interest expenses of the lease liability in each

period during the lease term using the constant periodic rate of interest and recognises such interest

expenses in profit or loss except those in the costs of the related asset as required. Variable lease

payments that are not included in the measurement of the lease liabilities are recognised in profit or loss

as incurred except those in the costs of the related asset as required.

After the commencement date of the lease the Group remeasures lease liabilities with changed present

value of the lease payments when fixed payment expected unguaranteed residual value payable the

interest rate implicit in the lease as the discount rate purchase options options to extend the lease or

determination of the lease term change.

(28) Provisions

An obligation related to a contingency shall be recognised by the Group as a provision when all of the

following conditions are satisfied except for contingent considerations and contingent liabilities assumed

in a business combination not involving entities under common control:

(1) the obligation is a present obligation of the Group;

(2) it is probable that an outflow of economic benefits from the Group will be required to settle the

obligation; and

(3) a reliable estimate can be made of the amount of the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle the related

present obligation taking into account factors pertaining to a contingency such as the risks uncertainties

and time value of money as a whole. Provisions are reviewed at each balance sheet date. Where

there is clear evidence that the carrying amount of a provision does not reflect the current best estimate

the carrying amount is adjusted to the current best estimate.

A contingent liability recognised in a business combination not involving entities under common control is

initially measured at fair value. Subsequently it is measured at the higher of: (i) the amount that would

be recognised in accordance with the general policy for provisions above; and (ii) the amount initially

recognised less cumulative amortisation recognised in accordance with the policy for revenue

recognition.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(29) Share-based payments

A share-based payment is classified as either an equity-settled share-based payment or a cash-settled

share-based payment. An equity-settled share-based payment is a transaction in which the Group

receives services and uses shares or other equity instruments as consideration for settlement.

An equity-settled share-based payment in exchange for services received from employees is measured

at the fair value of the equity instruments granted to the employees. If such equity-settled share-based

payment could vest immediately related costs or expenses at an amount equal to the fair value on the

grant date are recognised with a corresponding increase in capital reserves; if such equity-settled

share-based payment could not vest until the completion of services for a vesting period or until the

achievement of a specified performance condition the Group at each balance sheet date during the

vesting period recognises the services received for the current period as related costs and expenses

with a corresponding increase in capital reserves at an amount equal to the fair value of the equity

instruments at the grant date based on the best estimate of the number of equity instruments expected

to vest which is made on the basis of the latest available information such as the changes in the number

of covered employees and whether specified performance conditions have been met. The fair value is

determined using the binomial model.The cost of equity-settled transactions is recognised together with a corresponding increase in capital

reserves over the period in which the specified performance or service conditions are fulfilled. The

cumulative expense recognised for equity-settled transactions at each balance sheet date until the

vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of

the number of equity instruments that will ultimately vest.

For awards that do not ultimately vest because non-market performance and/or service conditions have

not been met no expense is recognised. Where awards include a market or non-vesting condition the

transactions are treated as vesting irrespective of whether the market or non-vesting condition is

satisfied provided that all other performance and/or service conditions are satisfied.Where the terms of an equity-settled share-based award are modified as a minimum an expense is

recognised as if the terms had not been modified. In addition an expense is recognised for any

modification that increases the total fair value of the share-based payments or is otherwise beneficial to

the employee as measured at the date of modification.Where an equity-settled share-based award is cancelled it is treated as if it had vested on the date of

cancellation and any expense not yet recognised for the award is recognised immediately. This

includes any award where non-vesting conditions within the control of either the Group or the employee

are not met. However if a new award is substituted for the cancelled award and is designated as a

replacement on the date that it is granted the cancelled and new awards are treated as if they were a

modification of the original award.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(29) Share-based payments (Continued)

The cost of cash-settled transactions is measured at the fair value of the liability which is determined on

the basis of shares or other equity instruments of the Group. It is initially recognised at the fair value on

the grant date using binomial model together with the consideration of terms and conditions on which the

equity instruments are granted. If the rights under a cash-settled share-based payment could vest

immediately related costs or expenses at an amount equal to the fair value on the grant date are

recognised with a corresponding increase in liability. If the rights under a cash-settled share-based

payment could not vest until the completion of services for a vesting period or until achievement of a

specified performance condition the Group at each balance sheet date during the vesting period

recognises the services received for the current period as related costs and expenses with a

corresponding increase in liability at an amount equal to the fair value of the liability based on the best

estimate of the outcome of vesting. The liability is measured at each balance sheet date up to and

including the settlement date with changes in fair value recognised in profit or loss.

(30) Revenue recognition

Revenue from contracts with customers is recognised when the Group has fulfilled its performance

obligations in the contracts that is when the customer obtains control of relevant goods or services.

Control of relevant goods or services refers to the ability to direct the use of the goods or the provision of

the services and obtain substantially all of the remaining benefits from the goods or services.

Contracts for sale of goods

The contracts for the sale of goods between the Group and its customer usually only contain the

performance obligations for the transfer of goods. The Group generally recognizes revenue at the point

of transferring the control of goods on the basis of a combination of the following factors: the current right

to collect the goods the transfer of major risks and benefits in the ownership of the goods and the

transfer of the legal ownership of the goods the transfer of physical assets of the goods and that the

customers have accepted the goods.Service Contracts

The service contracts between the Group and its customers usually consist of performance obligations

such as storage and logistics and so on. As the Group's performance of contracts is at the same time

when the customer obtains and consumes the economic benefits of the performance of the Group and

the Group has the right to collect receivables from the performance of contacts that has been completed

to date the Group regards it as a contract obligation over a period of time except that the progress of

performance cannot be reasonably determined. The Group determines the progress of the performance

of contracts in accordance with the input method. If the progress of performance of contracts cannot be

reasonably determined and the cost incurred by the Group is expected to be compensated the revenue

is recognised on the basis of the incurred costs until the progress of performance of contacts can be

reasonably measured.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(30) Revenue recognition (Continued)

Variable consideration

Some of the Group's contracts with customers including arrangements of sales rebates (list items in

accordance with the customer’s actual conditions such as early completion awards or others) result in

variable consideration. The Group determines the best estimate of variable consideration by using the

expected value method or the most likely amount method. However the transaction price including

variable consideration is only to the extent that it is highly probable that a significant reversal in the

amount of cumulative revenue recognised will not occur when the uncertainty associated with the

variable consideration is subsequently resolved.

Consideration payable to customers

Where consideration is payable by the Group to a customer such consideration payable shall be

deducted against the transaction price and against current revenue upon the recognition of revenue or

the payment of (or the commitment to pay) the consideration to the customer (whichever is later) save

for consideration payable to the customer for the purpose of acquiring from the customer other clearly

separable products.Return clauses

In connection with sales with a return clause revenue is recognised according to the amount of

consideration it expects to be entitled to for the transfer to a customer when the customer acquires

control of the relevant products. Amounts expected to be refunded for the return of sales are recognised

as liabilities. At the same time the balance of the carrying value of the product expected to be returned

upon transfer less expected costs for the recall of such product (including an impairment loss of the

recalled product) shall be recognised as an asset (i.e. cost of return receivables) and the net amount of

the carrying value of the transferred product upon the transfer less the aforesaid asset cost shall be

transferred to cost. At each balance sheet date the Group reassesses the future return of sales and

remeasures the above assets and liabilities.Significant financing component

Where a contract contains a significant financing component the Group determines transaction prices

based on amounts payable assumed to be settled in cash by customers immediately upon the

acquisition of control over the products. The difference between such transaction price and contract

consideration is amortised over the contract period using the effective interest rate method based on a

ratio that discounts the nominal contractual consideration to the current selling price of the products.The Group shall not give consideration to any significant financing component in a contract if the gap

between the customer’s acquisition of control over the products and payment of consideration is

expected to be less than 1 year.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

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 V.36.Where the Group provides a service warranty for a standalone service in addition to the assurance of

compliance of products with required standards such warranty is treated as a stand-alone contractual

performance obligation and a portion of the transaction price shall be allocated to the service warranty

based on a percentage of the stand-alone price for the provision of the product and service warranty.When assessing whether a warranty is rendering a stand-alone service in addition to providing

guarantee to customers that all sold goods are in compliance with required standards the Group will

consider whether or not such warranty is a statutory requirement the term of the warranty and the nature

of the Group’s undertaking to perform its obligations.Reward points program

The Group grants reward points to customers when selling goods. Customers can use reward points to

redeem free or discounted goods provided by the Group. This reward points program provides

significant rights to customers and the Group considers it as an individual performance obligation and

apportions part of the transaction prices to reward points based on pricing of goods or services with

warranty clauses. Revenue is recognised when customers obtain goods redeemed or when reward

points expire.Principal responsible person/proxy

For goods or other assets obtained from a third party which were transferred later to customers the

Group has the right to decide independently the pricing of goods. This means that the Group has

obtained control over related goods before transferring to customers. Therefore the Group is the

principal responsible person and revenue is recognised based on the total amount of consideration

received or receivable. Otherwise the Group is proxy and revenue is recognised based on expected

commission. This amount should be the total amount of consideration received or receivable net of the

amount payable to other parties or based on the fixed amount or percentage.

(31) Government grants

Government grants are recognised when all attaching conditions will be complied with and the grants will

be received. If a government grant is in the form of a transfer of a monetary asset it is measured at the

amount received or receivable. If a government grant is in the form of a transfer of a non-monetary

asset it is measured at fair value; if fair value is not reliably determinable it is measured at a nominal

amount.Government grants related to assets refer to government assets which are granted to enterprises for the

long-term assets formed by acquisition construction or in other manners. Government grants related to

income refer to government grants other than those related to assets.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(31) Government grants (Continued)

A government grant related to income is accounted for as follows: (i) if the grant is a compensation for

related expenses or losses to be incurred in subsequent periods the grant is recognised as deferred

income and released in profit or loss or offset against related expenses over the periods in which the

related costs are recognised; or (ii) if the grant is a compensation for related expenses or losses already

incurred it is recognised immediately in profit or loss or offset against relevant expenses.

A government grant relating to an asset shall be offset against the carrying amounts of relevant assets

or recognised as deferred income and amortised in profit or loss over the useful life of the related asset

by annual instalments in a systematic and rational way (however a government grant measured at a

nominal amount is recognised directly in profit or loss). Where the assets are sold transferred retired

or damaged before the end of their useful lives the rest of the remaining deferred income is released to

profit or loss for the period in which the relevant assets are disposed of.

(32) Income tax

Income tax comprises current and deferred tax. Income tax is recognised as income or expense in

profit or loss or recognised directly in equity if it arises from a business combination or relates to a

transaction or event which is recognised directly in equity.

Current tax liabilities or assets arising from the current and prior periods at the amount expected to be

paid by the Group or returned by the tax authority calculated according to related tax laws.

Deferred tax is provided using the balance sheet liability method on all temporary differences at the

balance sheet date between the tax bases of assets and liabilities and their carrying amounts and

temporary differences between the tax bases and the carrying amounts of the items which have a tax

base according to related tax laws but are not recognised as assets and liabilities.

Deferred tax liabilities are recognised for all taxable temporary differences except:

(1) when the taxable temporary difference arises from the initial recognition of goodwill or an asset

or liability in a transaction that is not a business combination and at the time of transaction

affects neither accounting profit nor taxable profit or loss; and

(2) in respect of taxable temporary differences associated with investments in subsidiaries

associates and joint ventures when the timing of the reversal of the temporary differences can

be controlled and it is probable that the temporary differences will not be reversed in the

foreseeable future.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(32) Income tax (Continued)

Deferred tax assets are recognised for all deductible temporary differences and the carryforward of

unused tax losses and any unused tax credits. Deferred tax assets are recognised to the extent that it

is probable that taxable profit will be available against which the deductible temporary differences the

carryforward of unused tax losses and unused tax credits can be utilised except:

(1) when the deductible temporary difference arises from the initial recognition of an asset or liability

in a transaction that is not a business combination and at the time of the transaction affects

neither the accounting profit nor taxable profit or loss; and

(2) in respect of the deductible temporary differences associated with investments in subsidiaries

associates and joint ventures deferred tax assets are only recognised to the extent that it is

probable that the temporary differences will be reversed in the foreseeable future and taxable

profit will be available against which the temporary differences can be utilised in the future.

At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are

expected to apply to the period when the asset is realised or the liability is settled in accordance with the

requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects

the tax consequences that would follow from the manner in which the Group expects at the balance

sheet date to recover the assets or settle the liabilities.The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to the

extent that it is no longer probable that sufficient taxable profit will be available in future periods to allow

the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the balance

sheet date and are recognised to the extent that it has become probable that sufficient taxable profit will

be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable

right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax

liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or

different taxable entities which intend either to settle current tax liabilities and assets on a net basis or to

realise the assets and settle the liabilities simultaneously in each future period in which significant

amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(33) Other significant accounting judgements and estimates

Identification of leases

At inception of a contract the Group assesses whether the contract is or contains a lease. A contract

is or contains a lease if the contract conveys the right to control the use of an identified asset for a

period of time in exchange for consideration. To assess whether a contract conveys the right to control

the use of an identified asset for a period of time the Group assesses whether throughout the period of

use the customer has both of the right to obtain substantially all of the economic benefits from use of the

identified asset and the right to direct the use of the identified asset.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(33) Other significant accounting judgements and estimates (Continued)

Identification of separate lease components

For a contract that contains multiple separate lease components the Group separates the components

of the contract and accounts for each separate lease component. The right to use an underlying asset

is a separate lease component if both:

(1) the lessee can benefit from use of the underlying asset either on its own or together with other

resources that are readily available to the lessee; and

(2) the underlying asset is neither highly dependent on nor highly interrelated with the other

underlying assets in the contract.Separating lease components and non-lease components

For a contract that contains lease components and non-lease components the Group accounts for lease

components and non-lease components separately as a lessor or a lessee.

Assessment of the lease term

The lease term is the non-cancellable period of a lease for which the Group has the right to use an

underlying asset. If the Group has an option to extend the lease that is the Group has the right to

extend the lease and is reasonably certain to exercise that option the lease term also includes periods

covered by an option to extend the lease. If the Group has an option to terminate the lease that is the

Group has the right to terminate the lease but is reasonably certain not to exercise that option the lease

term includes periods covered by an option to terminate the lease. The Group reassesses whether it is

reasonably certain to exercise an extension option purchase option or not to exercise a termination

option upon the occurrence of either a significant event or a significant change in the circumstances that

is within the control of the Group and affects whether the Group is reasonably certain to exercise an

option not previously included in its determination of the lease term.

As leasee

The accounting treatment of the Group as lease please refer to Note.III.29 and Note III.35.Lease modifications

Lease modification is a change in the scope of a lease or the consideration for a lease that was not part

of the original terms and conditions of the lease for example adding or terminating the right to use one

or more underlying assets or extending or shortening the contractual lease term.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(33) Other significant accounting judgements and estimates (Continued)

Lease modifications (Continued)

The Group accounts for a lease modification as a separate lease if both:

(1) the modification increases the scope of the lease by adding the right to use one or more

underlying assets; and

(2) the consideration for the lease increases by an amount commensurate with the stand-alone

price for the increase in scope and any appropriate adjustments to that stand-alone price to

reflect the circumstances of the particular contract.

For a lease modification that is not accounted for as a separate lease at the effective date of the lease

modification the Group remeasures the lease liability by discounting the revised lease payments using a

revised discount rate. The revised discount rate is determined as the interest rate implicit in the lease

for the remainder of the lease term or the lessee’s incremental borrowing rate at the effective date of the

modification if the interest rate implicit in the lease cannot be readily determined.

For a lease modification that is not accounted for as a separate lease the Group accounts for the

remeasurement of the lease liability by:

(1) decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of

the lease for lease modifications that decrease the scope of the lease and recognising the gain

or loss relating to the partial or full termination of the lease in profit or loss; or

(2) making a corresponding adjustment to the right-of-use asset for all other lease modifications.

Short-term leases and leases of low-value assets

The Group considers a lease that at the commencement date of the lease has a lease term of 12

months or less and does not contains any purchase option as a short-term lease; and a lease for which

the value of the individual underlying asset is not more than RMB40000 when it is new as a lease of

low-value assets. If the Group subleases an asset or expects to sublease an asset the head lease

does not qualify as a lease of a low-value asset. The Group does not recognise the right-of-use assets

and lease liabilities for short-term leases and low-value assets. The Group recognises lease payments

on short-term leases and leases of low-value assets in the costs of the related asset or profit or loss on a

straight-line basis over the lease term.

As lessor

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to

ownership of an underlying asset except that a lease is classified as an operating lease at the inception

date. The Group as an intermediate lessor classifies the sublease by reference to the right-of-use

asset arising from the head lease.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(33) Other significant accounting judgements and estimates (Continued)

As lessor of an operating lease

Rent income under an operating lease is recognised on a straight-line basis over the lease term through

profit or loss. Variable lease payments that are not included in the measurement of lease receivables

are charged to profit or loss as incurred.The Group accounts for a modification to an operating lease as a new lease from the effective date of the

modification considering any prepaid or accrued lease payments relating to the original lease as part of

the lease payments for the new lease.

(34) Others

Governmental medical reserve funds and specially approved reserving materials

Appointed by the PRC Government CNPGC is responsible for purchasing allocating and providing the

governmental medical reserves which include the medical products traditional Chinese medicine and

medical appliances for nation-wide emergency rescue and disaster relief. Appointed by the Government

of Guangxi Province and Guangdong Province the Company Sinopharm Holding Guangxi Co. Ltd.(“Sinopharm Guangxi”) and Sinopharm Holding Guangzhou Co. Ltd. (“Sinopharm Guangzhou”) are

responsible for purchasing allocating and providing the medical reserves which include the medical

products needed for serious disasters epidemics and other emergencies as well as endemic diseases in

Guangxi Province and Guangdong Province. In accordance with the regulation of CNPGC being the

enterprise which bears the obligation for specially approved medical reserving materials the medical

reserve funds received from the PRC Government or local government are recognised as other

non-current liabilities. The Group reserves the specially approved medical reserving materials according

to the reserve program (by category and by quantity) applies dynamic management and recognizes

them as other non-current assets.

Dividend distribution

Cash dividend distribution is recognised as a liability in the period in which it is approved by shareholders

at the annual shareholders’ meeting.

Fair value measurement

At each balance sheet date the Group measures the fair value of equity instrument investments. Fair

value means the price receivable from the disposal of an asset or required to be paid for the transfer of a

liability in an orderly transaction incurred by market participants on the measurement date. The Group

measures assets or liabilities at fair value with the assumption that the orderly transaction of asset

disposal or the transfer of liabilities takes place in the major market for the relevant assets or liabilities.Where there is no major market the Group assumes that such transaction takes place in the most

favourable market for the relevant assets or liabilities. The major market (or most favourable market) is a

trading market which the Group has access to on the measurement date. The Group adopts

assumptions used by market participants when they price the asset or liability with the aim of maximising

its economic benefits.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(34) Others (Continued)

Fair value measurement (Continued)

The measurement of non-financial assets measured at fair value should take into account the ability of

market participants to utilise the asset in the best way for generating economic benefits or the ability to

dispose of such asset to other market participants who are able to utilise the asset in the best way for

generating economic benefits.The Group adopts valuation techniques that are appropriate in the current circumstances and supported

by sufficient usable data and other information. Observable input will be used first and foremost.Unobservable input will only be used when it is not possible or practicable to obtain observable input.The fair value hierarchy in which an asset or liability is measured or disclosed in the financial statements

at fair value will be determined on the basis of the lowest level of input which is significant for the fair

value measurement as a whole. Input at the first level represents unadjusted quoted prices in an active

market for the acquisition of the same asset or liability on the measurement date. Input at the second

level represents directly or indirectly observable assets or liabilities apart from input at the first level.Input at the third level represents unobservable input for the asset or liability.

At each balance sheet date the Group reassesses assets and liabilities measured at fair value on an

ongoing basis recognised in the financial statements to determine whether the level of fair value

measurement should be changed.Segment information

The Group identifies operating segments based on the internal organization structure management

requirements and internal reporting system and discloses segment information of reportable segments

which is determined on the basis of operating segments.

An operating segment is a component of the Group that satisfies all of the following conditions: (1) the

component is able to earn revenues and incur expenses from its ordinary activities; (2) the component’s

operating results are regularly reviewed by the Group’s management to make decisions about resources

to be allocated to the segment and to assess its performance and (3) for which the information on

financial position operating results and cash flows is available to the Group. If two or more operating

segments have similar economic characteristics and satisfy certain conditions they are aggregated into

one single operating segment.Significant accounting judgements and estimates

The preparation of the financial statements requires management to make judgements estimates and

assumptions that affect the reported amounts of revenue expenses assets and liabilities and their

accompanying disclosures and the disclosure of contingent liabilities at the balance sheet date.Uncertainty about these assumptions and estimates could result in outcomes that could require a

material adjustment to the carrying amounts of the assets or liabilities affected in the future.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements

In the process of applying the Group's accounting policies management has made the following

judgements which have a significant effect on the amounts recognised in the financial statements:

Operating leases - the Group as lessor

The Group has entered into lease agreements on its investment property portfolio. The Group has

determined these leases to be operating leases based on an evaluation of the terms and conditions of

the agreements that it retains substantially all the significant risks and rewards of ownership of these

properties.

Business models

The classification of financial assets at initial recognition depends on the Group's business model for

managing financial assets. When determining the business model the Group considers the methods to

include evaluation and report financial asset performance to key management the risks affecting the

performance of financial assets and the risk management and the manner in which the relevant

management receives remuneration. When assessing whether the objective is to collect contractual

cash flows the Group needs to analyse and judge the reason timing frequency and value of the sale

before the maturity date of the financial assets.

Contractual cash flow characteristics

The classification of financial assets at initial recognition depends on the financial asset’s contractual

cash flow characteristics and the judgements on whether the contractual cash flows are solely

payments of principal and interest on the principal amount outstanding including when assessing the

modification of the time value of money the judgement on whether there is any significant difference

from the benchmark cash flow and whether the fair value of the prepayment features is insignificant for

financial assets with prepayment features etc.

Estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the

balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts

of assets and liabilities within the future accounting periods are described below.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Impairment of financial instruments

The Group uses the expected credit loss model to assess the impairment of financial. The Group is

required to perform significant judgement and estimation and take into account all reasonable and

supportable information including forward-looking information. When making such judgements and

estimates the Group infers the expected changes in the debtor's credit risk based on historical

repayment data combined with economic policies macroeconomic indicators industry risks and other

factors. The different estimates may impact the impairment assessment and the provision for

impairment may also not be representative of the actual impairment loss in the future.Impairment of non-current assets other than financial assets (other than goodwill)

The Group assesses whether there are any indications of impairment for all non-current assets other

than financial assets at the balance sheet date. Intangible assets with indefinite useful lives are tested

for impairment annually and at other times when such an indication exists. Other non-current assets

other than financial assets are tested for impairment when there are indications that the carrying

amounts may not be recoverable. An impairment exists when the carrying amount of an asset or asset

group exceeds its recoverable amount which is the higher of its fair value less costs of disposal and the

present value of the future cash flows expected to be derived from it. The calculation of the fair value

less costs of disposal based on available data from binding sales transactions in an arm’s length

transaction of similar assets or observable market prices less incremental costs for disposing of the

assets. When the calculations of the present value of the future cash flows expected to be derived from

an asset or asset group are undertaken management must estimate the expected future cash flows

from the asset or asset group and choose a suitable discount rate in order to calculate the present value

of those cash flows. Further details are included in Note V.12/13/14/15/16.Impairment of goodwill

The Group determines whether goodwill is impaired at least on an annual basis. This requires an

estimation of the present value of the future cash flows expected to be derived from the asset groups

(sets of asset groups) to which the goodwill is allocated. Estimating the present value requires the

Group to make an estimate of the expected future cash flows from the asset groups (sets of asset

groups) and also to choose a suitable discount rate in order to calculate the present value of those cash

flows. Further details are included in Note V.17.

Deferred tax assets

Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable

profit will be available against which the losses can be utilised. Significant management judgement is

required to determine the amount of deferred tax assets that can be recognised based upon the likely

timing and level of future taxable profits together with future tax planning strategies.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Fair value of unlisted equity investments

The unlisted equity investments have been valued based on the expected cash flows discounted at

current rates applicable for items with similar terms and risk characteristics. This valuation requires the

Group to make estimates about expected future cash flows credit risk volatility and discount rates and

hence they are subject to uncertainty.Loyalty points

The Group makes reasonable estimate of the stand-alone selling price of the loyalty points by taking into

account all relevant information such as the stand-alone selling prices for the customer to acquire

additional free goods or services or the discounts enjoyed by the customer using the loyalty points and

the possibility for the customer to exercise the redemption right. The Group considers the likelihood for

the customer to exercise the redemption right based on the historical data of point redemption the

current point redemption and the future changes for the customer the future trend of the market and

other factors. The Group re-evaluates the stand-alone selling price of loyalty points at least on each

balance sheet date and determines the transaction price to be allocated to the loyalty points based on

the stand-alone selling price of the re-evaluated loyalty points.Sales with a right of return

The Group makes reasonable estimate of a group of contracts with similar characteristics according to

the sales return historical data the current sales return situation as well as customer changes market

changes and other relevant information. Estimates of the expected return rate may not be

representative of the actual returns in the future. The Group re-evaluates the return rate at least on

each balance sheet date and updates the measurement of the refund liabilities and the right-of-return

assets based on the re-evaluated return rate.Warranties

The Group makes reasonable estimate of the warranty rate of a group of contracts with similar

characteristics based on historical warranty data current warranty as well as all relevant information

such as product improvements market changes etc. Estimates of the expected warranty rate may not

be representative of the actual warranty rate in the future. The Group re-evaluates the warranty rate at

least on each balance sheet date and updates the measurement of the provisions based on the

re-evaluated warranty rate.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

III Summary of significant accounting policies and accounting estimates (Continued)

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Assessment of constrains on variable consideration

The Group estimates within a reasonable quantity the amount of variable consideration that may occur

and the likelihood by taking into account all reasonably available information including historical

information current information and predictive information. The Group includes in the transaction price

some or all of an amount of variable consideration estimated only to the extent that it is highly probable

that a significant reversal in the amount of cumulative revenue recognised will not occur when the

uncertainty associated with the variable consideration is subsequently resolved. In assessing whether

it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not

occur once the uncertainty related to the variable consideration is subsequently resolved the Group

considers both the likelihood and the magnitude of the revenue reversal. On each balance sheet date

the Group updates the estimated transaction price (including updating its assessment of whether an

estimate of variable consideration is constrained) to reflect the circumstances present at the end of the

reporting period and the changes in circumstances during the reporting period.Lessee’s incremental borrowing rate

If the interest rate implicit in the lease cannot be readily determined the Group measures the lease

liability at the present value of the lease payments discounted using the lessee’s incremental borrowing

rate. According to the economic environment the Group takes the observable interest rate as the

reference basis for determining the incremental borrowing rate then adjusts the observable interest rate

based on its own circumstances underlying assets lease terms and amounts of lease liabilities to

determine the applicable incremental borrowing rate.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VI. Taxation

1. Main categories and rates of taxes:

Categories Tax base Tax rate

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% 1% 3% 5% 6% 9% 13%

City maintenance and

construction tax Amount of VAT 5% or 7%

Corporate income tax

(“CIT”) Taxable income 15% 20% or 25%

Educational surcharge Amount of VAT 3%

Local educational

surcharge Amount of VAT 2%

2. Tax preferences

(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 payable 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 Bureau to enjoy a tax discount

applicable to corporations in the region of Western Development to pay income tax at a tax rate of

15%.

In 2015 eight subsidiaries in Guangxi Province of the Group including Sinopharm Guangxi

Sinopharm Holding Liuzhou Co. Ltd. (“Sinopharm Liuzhou”) Sinopharm Holding Beihai Co. Ltd

(“Sinopharm Beihai”) Sinopharm Holding Guilin Co. Ltd. (“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 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

IV Taxation (Continued)

2. Tax preferences (Continued)

In 2019 the Group's subsidiary Sinopharm Holding National Pharmacy (Pu‘er) Songmao Co. Ltd. in

accordance with the provisions of Caishui [2011] No. 58 Document met the conditions for the

enjoyment of corporate income tax benefits in the Western Development and obtained the

confirmation letter of Pu 'er City Development and Reform Commission that the relevant business of

Pu 'er Song Maoji Antang Pharmaceutical Co. LTD was the encouraged industry of the country. The

enterprise income tax was paid at a preferential tax rate of 15% from 2019 to 2020.

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 which met the requirements of small

and meager profit enterprises paid corporate income tax at a rate of 20% and reduced the taxable

income by 25% if the annual taxable was less than RMB 1 million. And if the annual taxable was

between RMB 1 million and 3 million the Group's subsidiary reduced the taxable income by 50%

from 1 January 2019 to 31 December 2020.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements

1. Cash and bank balances

30 June 2020 31 December 2019

Cash on hand 13254761.42 5333515.38

Cash at banks (Note 1) 8008457260.74 8437723437.66

Other cash balances (Note 2) 218128205.64 442672297.43

8239840227.80 8885729250.47

Note 1: Current deposits earn interest at the rate based on current deposit interest rates. Maturities of short-term time

deposits range from 1 month to 6 months depending on the fund arrangements of the Group and the deposits earn

interest at the respective deposit rates. The maturities of bank notice deposits are 7 days depending on the fund

arrangement of the Group and the deposits earn interest at the respective deposit rates. Balance of cash and cash

equivalents in cash at banks is RMB7987307260.74 (31 December 2019: RMB8420737654.78). Balance of interest

receivable from cash at banks not yet due at the end of the period is RMB21150000.00 (31 December 2019:

RMB16985782.88)

Note 2: Other monetary funds as at 30 June 2020 include: bank acceptance bills guarantee of RMB 217953399.64

(31 December 2019: RMB442547491.43) as well as deposit of the letter of guarantee of RMB174806.00 (31

December 2019: RMB124806.00).

2. Notes receivable

(1) The notes receivable by category

30 June 2020 31 December 2019

Commercial acceptance bills 402639901.74 793301688.64

402639901.74 793301688.64

(2) At the end of the period the company transferred the acceptance notes to accounts receivable due to the drawer's

failure to perform the contract:

Amount transferred to

accounts receivable

at the end of the period

Commercial acceptance bills 728020.99

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable

(1) The accounts receivable by category

30 June 2020 31 December 2019

Gross carrying amount Provision for bad debt Gross carrying value Gross carrying amount Provision for bad debt Gross carrying value

Amount Proportion Amount Proportion Amount Proportion Amount Proportion

Items for which provision

for bad debt is recognized

separately 791162699.66 5.66% 18189265.80 2.30% 772973433.86 586321444.68 5.45% 18329609.15 3.13% 567991835.53

Items for which provision

for bad debt is recognized

by group 13179058766.79 94.34% 59337066.24 0.45% 13119721700.55 10172578829.97 94.55% 27587121.32 0.27% 10144991708.65

13970221466.45 100.00% 77526332.04 0.55% 13892695134.41 10758900274.65 100.00% 45916730.47 0.43% 10712983544.18

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category (Continued)

Accounts receivable that are individually assessed for provisions

Carrying amount

Bad debt

provision Proportion Assessment for impairment

Receivable of medical

insurance 576508029.76 - 0.00%

The receivable of medical insurance has

lower-tier default risk.

Client A 11559178.29 11559178.29 100.00%

Debtor had irregular operations of

subject to serious financial difficulties

and related to multiple lawsuits is with

lower-tier recoverability.

Client B 2447976.74 2447976.74 100.00%

Debtor had irregular operations of

subject to serious financial difficulties

and has been placed on a national list of

defaulters with highly risk of going

bankruptcy or financial restructuring.

Client C 2365253.03 2365253.03 100.00%

Debtor had irregular operations of

subject to serious financial difficulties

and has been placed on a national list of

defaulters with highly risk of going

bankruptcy or financial restructuring.Others 198282261.84 1816857.74 0.92%

Part of the receivable takes longer than

usual to recover and has risk of

recoverability.

791162699.66 18189265.80 -

Provision for bad debts of accounts receivable according to the general model of expected credit loss

30 June 2020

Estimated default amount Expected credit loss in entire

lifetime

Expected credit loss rate

Within 1 year 12948463247.57 38221387.67 0.30%

1 to 2 years 218440449.79 18054393.73 8.27%

2 to 3 years 8678368.49 1985006.57 22.87%

Over 3 years 3476700.94 1076278.27 30.96%

13179058766.79 59337066.24

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category (Continued)

The aging analysis of accounts receivables:

30 June 2020

Within 1 year 13721343683.59

1 to 2 years 224065055.60

2 to 3 years 8678368.49

Over 3 years 16134358.77

13970221466.45

(2) Changes in bad debt provision recovery or reverse

Bad debt provision for the current period

Opening balance

Amount changes in current period

Closing balance

Increases Reversal Increases inmerger

Reversal of

write-off in

previous years

Accounts

receivable bad

debt provision 45916730.47 24586368.81 (4407868.49) 11263303.38 167797.87 77526332.04

(3) The top five accounts receivable by customer

Amount

% of the total accounts

receivable

Bad debt provision

amount

The top five accounts receivable in total 870584683.17 6.26% 4023082.69

(4) Accounts receivable derecognized due to the financial assets transferred

From January to June 2020 the Group factored a small portion of accounts receivable at amortised cost to financial

institutions. The amount of accounts receivable derecognised was RMB2756648565.22 (January to June 2019:

RMB2707165636.40) and the amount of loss recognised through Investment income was RMB33507102.64 (January to

June 2019: RMB42268803.55).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

4. Receivable financing

30 June 2020 31 December 2019

Bank acceptance bills 399889650.01 446342588.46

Receivable financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2020

30 June 2020

Derecognised Not Derecognised

Bank acceptance bills 2305328560.58 -

5. Advances to suppliers

(1) The aging of advances to suppliers

30 June 2020 31 December 2019

Amount % of total balance Amount % of total balance

Within 1 year 409588936.38 98.69% 388572636.93 99.68%

1 to 2 years 5231662.72 1.26% 244213.07 0.06%

2 to 3 years 83222.53 0.02% 815319.09 0.21%

Above 3 years 133651.00 0.03% 196616.45 0.05%

415037472.63 - 389828785.54 -

The illustration of the reasons why advance payments with a more than one-year aging while the amounts are significant

not settled in time:

On 30 June 2020 advance payments with a more than one-year aging are mainly prepaid equipments and prepaid rents.

(2) The top five advances to suppliers by customer on 30 June 2020

Amount Proportion of total balance

Total amount of top five advances to suppliers 147282145.54 35.49%

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables

30 June 2020 31 December 2019

Dividends receivable - 834914.61

Other receivables 613031947.42 501123926.82

613031947.42 501958841.43

(1) Dividends receivable

30 June 2020 31 December 2019

Shanghai Dingqun Enterprise Management

Consulting Co. Ltd. - 834914.61

(2) Other receivables

(a) Category of other receivables by nature

30 June 2020 31 December 2019

Deposits 325055837.65 275364596.97

Receivable of price reduction compensation

and purchasing rebates 109165508.43 67585688.47

Receivable of the pharmaceutical electronic

trading platform 52855538.34 49597763.58

Entrusted borrowings 46334222.24 45360333.35

Petty cash advance to employees 18865088.01 11606921.79

Receivable of equity transactions 8980000.00 8980000.00

Receivable due from related parties 1950270.73 25786279.26

Others 116635565.91 81032902.12

679842031.31 565314485.54

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables (Continued)

(b) Changes in bad debt provision

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 2020 - 7107131.41 57083427.31 64190558.72

Balance at 1 January 2020 during the period

Provisions during the period - 1033302.06 1385884.43 2419186.49

Reversal during the period - (1017455.29) - (1017455.29)

Write-off during the period - (124000.00) - (124000.00)

Other Changes - 1341793.97 - 1341793.97

Balance at 30 June 2020 - 8340772.15 58469311.74 66810083.89

The aging analysis of other receivables was as follows:

30 June 2020

Within 1 year 542153839.37

1 to 2 years 26056296.78

2 to 3 years 50957128.63

Over 3 years 60674766.53

679842031.31

The bad debt provision amount of other receivables in current period was RMB2419186.49 with the recovered or reversed

amount of RMB1017455.29. The write-off amount of other receivables in current period was RMB124000.00.Guoda Pharmacy a subsidiary of the Group acquired Shanghai Dingqun which led the bad debt provision amount of other

receivables in current period increased RMB1341793.97.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables (Continued)

(d) The top 5 parties that owed the largest amounts of other receivable balances

Nature Amount Age

% of

total

amount

Provision of bad

debt

Guangdong Pharmaceutical

electronic trading platform

Pharmaceutical trading

platform repayment not

yet cleared 52491794.34 Within 1 year 7.72% -

Sinopharm Group Zhijun (Suzhou

Pharmaceutical Co. Ltd. (Note) Entrusted borrowings 46334222.24 2 to 3 years 6.82% 46334222.24

Jilin Oilfield General Hospital Deposits 30000000.00 Within 1 year 4.41% -

TCM-Integrated Cancer Center of

Southern Medical University

Deposit of logistics

extension services project 20000000.00 3 to 4 years 2.94% -

Shenyang Medical Insurance

Management Service Center

Amount due from medical

insurance 19676195.95 Within 1 year 2.89% -

168502212.53 24.79% 46334222.24

Note: With bad operation declining solvency and increasing credit risk of Zhijun Suzhou in 2019 the Group accrued the total

amount RMB45360333.35 of the entrusted borrowings of Zhijun Suzhou for bad debt provision. Including: the balance at the

end of the period increased by RMB973888.89 compared with that at the beginning of the period which was caused by the

failure of the drawer – Zhijun Suzhou to perform the payment when the commercial acceptance bill was due and the Company

transferred those amount into other accounts receivable.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

7. Inventories

(1) Inventories by category

30 June 2020 31 December 2019

Book value Provision for

declines in value

of inventories

and impairment

of contract

performance

costs

Net book value Book value Provision for

declines in

value of

inventories or

impairment of

contract

performance

costs

Net book value

Raw materials 955930.73 - 955930.73 645627.66 - 645627.66

Work in progress 178002.50 - 178002.50 140458.20 - 140458.20

Finished goods 5351309550.74 10411125.72 5340898425.02 5067666999.13 8902200.40 5058764798.73

Low cost consumables 2874381.92 - 2874381.92 3723258.67 - 3723258.67

5355317865.89 10411125.72 5344906740.17 5072176343.66 8902200.40 5063274143.26

(2) Provision for declines in value of inventories and impairment of contract performance costs

31 December 2019

Increases Decreases

30 June 2020

Provision Addition due tocombination

Reversal or

write-off Others

Finished goods 8902200.40 3457289.05 362553.37 2310917.10 - 10411125.72

8. Other current assets

30 June 2020 31 December 2019

Input VAT to be credited 81207754.10 101376702.28

Corporate income tax to be deducted 2433581.63 513305.14

Others 408552.85 317490.78

84049888.58 102207498.20

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

9. Long‐term equity investments

Investee 31 December 2019

Changes in current period

30 June 2020 Provision forimpairmentAdditional

Investment

Negative

investment

Profit of loss under

equity method

Other comprehensive

income adjustment

Other changes

in equity

Cash dividend

declared by

investee

AssociatesShenzhen Main Luck Pharmaceutical Inc. (“Main LuckPharmaceutical”) 294469367.27 - - 34556440.58 - - (63342000.00) 265683807.85 -

Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.(“Shanghai Beiyi”) 9887944.98 - - 549217.13 - - - 10437162.11 -

Shanghai Liyi Pharmacy Co. Ltd. (“Shanghai Liyi”) 1039039.88 - - - - - - 1039039.88 -Shanghai Renbei Pharmacy Co. Ltd. (“ShanghaiRenbei”) 1800000.00 - - - - - - 1800000.00 -

Dongyuan Accord Pharmaceutical Chain Co. Ltd.

(“Dongyuan Accord”) - - - - - - - - 396638.32

Sinopharm Jienuo Medical Treatment Service

Guangdong Co. Ltd. (“Guangdong Jienuo”) 6453679.96 - - (639160.54) - - - 5814519.42 -

Guangdong Jianhui Construction Investment

Management Co. Ltd. (“Guangdong Jianhui”) 1854647.81 6000000.00 - 145352.19 - - - 8000000.00 -

Zhijun Suzhou - -- - - - - - 0.00 1857279.52

Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co.Ltd. (“Zhijun Medicine”) 400578574.68 - - 17400995.09 - - - 417979569.77 -Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. (“ZhijunTrade”) 10275257.61 - - 757325.01 - - - 11032582.62 -

Sinopharm Group Zhijun (Shenzhen) PingShan

Pharmaceutical Co. Ltd. (“Zhijun Pingshan”) 120878018.74 - - 27665891.90 - - - 148543910.64 -Shanghai Shyndec Pharmaceutical Co.Ltd (“ShyndecPharma”) 1235240098.79 - - 53168842.80 122186.89 14135.44 (16714220.20) 1271831043.72 -

Shanghai Dingqun Enterprise Management Consulting

Co. Ltd. (“Shanghai Dingqun”) 22637781.16 - (22637781.16) - - - - - -

2105114410.88 6000000.00 (22637781.16) 133604904.16 122186.89 14135.44 (80056220.20) 2142161636.01 2253917.84

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

10. Other equity instrument investment

30 June 2020 31 December 2019

Sinopharm Health Online Co. Ltd. 96748000.00 96748000.00

Shanghai Guoda Shuguang Pharmacy Co. Ltd. 8365000.00 8365000.00

Shanghai Guoren Pharmacy Co. Ltd. 5704000.00 5704000.00

Sinopharm Guoda Hubei Co. Ltd. 4751000.00 4751000.00

Hunan Zhongbai Pharmaceutical Investment Co. Ltd. 453000.00 453000.00

116021000.00 116021000.00

11. Other non‐current financial assets

30 June 2020 31 December 2019

Financial asset measured at fair value

through current profit or loss 120972350.24 140000000.00

On June 30 2020 the balance of other non-current financial assets was the fair value of the share of Sinopharm CICC

Medical Industry Fund (referred to as “the Industry Fund”) subscribed by the Company. The Group's 21st meeting of the

7th Board of Directors held on January 6 2017 reviewed and approved the proposal of the Company to subscribe for the

industry fund and related party transactions. As a limited partner of the Industry Fund the Company plans to invest

RMB200 million to subscribe for the share of the Industrial Fund which will be paid in three phases.The Industrial Fund

obtained the relevant licenses as well as approvals and started operating in 2018. As of December 31 2019 the Company

had paid a total of RMB 140 million. The Company received the withdraw fund of this project’s principal of

RMB19027649.76 from Qirui Port Investment Center LP of Ningbo Meishan Bonded Port. Since the cash flow obtained

by the Company from the investment of the Industry Fund includes both the contractual cash flow generated by the

underlying assets during the investment period and the cash flow of the disposal of the underlying assets the contractual

cash flow that does not satisfy the financial assets generated on a specific date is only the payment of interest on the basis

of the outstanding principal amount therefore the Company classifies the investment of the Industry Fund into financial

assets measured at fair value through profit or loss and presented as other non-current financial assets..

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

12. Investment properties

Subsequent measurement under the cost model:

Buildings and

constructions

Land use right Construction in

progress

Total

Original cost

Opening balance 243610633.09 22719102.03 - 266329735.12

Increase amount in current period 202865.73 - - 202865.73

Purchase 2865.73 - - 2865.73

Transfer from inventories\fixed

assets\construction in progress 200000.00 - - 200000.00

Decrease amount in current period 11562525.28 1730283.59 - 13292808.87

Disposal or retirement 2720126.63 - - 226.63

Transfer to intangible assets - 1730283.59 - 1730283.59

Transfer to fixed assets 8842398.65 - - 8842398.65

Closing balance 232250973.54 20988818.44 - 253239791.98

Accumulated depreciation and amortization

Opening balance 117940803.43 8188573.39 - 126129376.82

Increase amount in current period 2999424.16 114228.44 - 3113652.60

Provision 2933025.28 114228.44 - 353.72

Transfer from fixed assets 66398.88 - - 66398.88

Decrease amount in current period 6942885.60 450957.66 - 7393843.26

Disposal or retirement 1830106.44 - - 1830106.44

Transfer to intangible assets - 450957.66 - 450957.66

Transfer to fixed assets 5112779.16 - - 5112779.16

Closing balance 113997341.99 7851844.17 - 121849186.16

Provision for impairment

Opening balance and Closing balance 1300000.00 - - 1300000.00

Carrying amount

At end of the period 116953631.55 13136974.27 - 130090605.82

At beginning of the period 124369829.66 14530528.64 - 138900358.30

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets

30 June 2020 31 December 2019

Fixed assets 716847033.81 708000172.63

(1) Condition of fixed assets

Buildings Machinery and

equipment

Motor vehicles Office equipments Electronic

equipments

Total

Original cost

Opening balance 603848760.59 239741250.34 90023564.89 322298724.55 90133289.24 1346045589.61

Increase amount in current period 8842398.65 29686043.50 6103974.09 18584722.03 17834413.27 81051551.54

Purchase - 26587842.12 5271101.19 13435072.46 17298530.99 62592546.76

Transfer from construction in progress - 2762433.88 - - - 2762433.88

Business combinations - 335767.50 832872.90 5149649.57 535882.28 6854172.25

Transfer from Investment properties 8842398.65 - - - - 8842398.65

Decrease amount in current period 200000.00 2948811.58 2033850.94 5403408.46 6839844.04 17425915.02

Disposal or retirement - 2948811.58 2033850.94 5403408.46 6839844.04 17225915.02

Transfer to investment properties 200000.00 200000.00

Closing balance 612491159.24 266478482.26 94093688.04 335480038.12 101127858.47 1409671226.13

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets (Continued)

(1) Condition of fixed assets (Continued)

Buildings Machinery and

equipment

Motor vehicles Office equipments Electronic

equipments

Total

Accumulated depreciation

Opening balance 210725255.48 114086892.23 58060958.31 195644163.28 59528147.68 638045416.98

Increase amount in current period 14128973.18 19823458.34 4080452.14 15648096.19 12579646.47 66260626.32

Provision 9016194.02 19823458.34 4080452.14 15648096.19 12579646.47 61147847.16

Transfer from Investment properties 5112779.16 - - - - 5112779.16

Decrease amount in current period 66398.88 2144599.72 1919607.20 2965344.14 4385901.04 11481850.98

Disposal or retirement - 2144599.72 1919607.20 2965344.14 4385901.04 11415452.10

Transfer to investment properties 66398.88 - - - - 66398.88

Closing balance 224787829.78 131765750.85 60221803.25 208326915.33 67721893.11 692824192.32

Carrying amount

At end of period 387703329.46 134712731.41 33871884.79 127153122.79 33405965.36 716847033.81

At beginning of the period 393123505.11 125654358.11 31962606.58 126654561.27 30605141.56 708000172.63

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets (Continued)

(2) Condition of Fixed assets falling to accomplish certification of title

Book value Reason for not obtaining certification of title

Houses and buildings 25912957.40

As at 30 June 2020 the Company has not yet obtained the certification

of title for No.13 Jingxing North Street Tiexi District Shenyang. The

transferor the State-owned Assets Supervision and Administration

Commission was still processing the case and had provided a relevant

notification.

14. Construction in progress

30 June 2020 31 December 2019

Construction in progress 29000528.39 31582575.84

(1) Condition of construction in progress

30 June 2020 31 December 2019

Carrying

balance

Impairment Carrying

amount

Carrying

balance

Impairment Carrying

amount

Warehouse improvement project 3146431.51 - 3146431.51 1232957.94 - 1232957.94

New office building project 96609.62 - 96609.62 110090.53 - 110090.53

Supply chain extension project 6188066.46 - 6188066.46 8081340.80 - 8081340.80

Software project 10768504.76 - 10768504.76 13197683.52 - 13197683.52

Other construction projects 8800916.04 - 8800916.04 8960503.05 - 8960503.05

29000528.39 - 29000528.39 31582575.84 - 31582575.84

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

VII. Notes to the consolidated financial statements (Continued)

14. Construction in progress (Continued)

(2) Changes of significant construction in progress in current period

Project name Budget Opening balance Increase

Decrease Closing balance

Proportion of

investment

to budget

Project

progress

Source of

funds

Transferred to

fixed assets Others

Warehouse improvement project 13281971.98 1232957.94 3892668.96 842610.88 1136584.51 3146431.51 38.59 % 38.59 % Own capital

New office building Project 500000.00 110090.53 - - 13480.91 96609.62 22.02% 22.02% Own capital

Supply chain extension project 15695768.25 8081340.80 26548.66 1919823.00 - 6188066.46 51.66% 51.66% Own capital

Software project 30000000.00 13197683.52 10768504.76 - 13197683.52 10768504.76 79.89% 79.89% Own capital

Other construction projects 205059930.48 8960503.05 45261.93 - 204848.94 8800916.04 4.39% 4.39% Own capital

264537670.71 31582575.84 14732984.31 2762433.88 14552597.88 29000528.39

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

146

VII. Notes to the consolidated financial statements (Continued)

15. Right‐of‐use assets

Houses and buildings Machinery transport

and office equipment Others Total

Original cost

Opening balance 2634697656.23 14470094.95 2418809.35 2651586560.53

Increase amount in current period 486014886.43 - - 486014886.43

Incl: Business combinations not under common control 139301280.63 - - 139301280.63

Decrease amount in current period 202597928.71 - - 202597928.71

Disposal 202597928.71 - - 202597928.71

Closing balance 3057415894.58 14470094.95 2418809.35 3074304798.88

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

147

VII. Notes to the consolidated financial statements (Continued)

15. Right-of-use assets (Continued)

Houses and buildings

Machinery transport

and office equipment Others Total

Accumulated depreciation

Opening balance 652657513.16 4075450.60 95734.70 656828698.46

Increase amount in current period 386116427.19 2044641.59 47736.21 388208804.99

Depreciation 386116427.19 2044641.59 47736.21 388208804.99

Incl: Business combinations not under common control 38641408.12 - - 38641408.12

Decrease amount in current period 81526000.33 - - 81526000.33

Disposal 81526000.33 - - 81526000.33

Closing balance 995889348.14 6120092.19 143470.91 1002152911.24

Carrying amount

At end of the period 2061526546.44 8350002.76 2275338.44 2072151887.64

At beginning of the period 1982040143.07 10394644.35 2323074.65 1994757862.07

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

148

VII. Notes to the consolidated financial statements (Continued)

16. Intangible assets

Land use rights Software Trademarks Favorable leases Distribution network Franchise Total

Original cost

Opening balance 62083143.97 175625594.44 92349850.00 127486000.00 112117142.86 710000.00 570371731.27

Increase amount in current period 1730283.59 18027371.70 73007075.12 - 163000000.00 - 255764730.41

Purchases - 2839548.43 - - - - 2839548.43

Business combinations not under common

control - 1990139.75 73007075.12 - 163000000.00 - 237997214.87

Transfer from investment properties 1730283.59 - - - - - 1730283.59

Transfer from construction in progress - 13197683.52 - - - - 13197683.52

Closing balance 63813427.56 193652966.14 165356925.12 127486000.00 275117142.86 710000.00 826136461.68

Accumulated amortization

Opening balance 28858577.16 88726743.09 196850.16 30792570.91 46298190.47 710000.00 195582931.79

Increase amount in current period 955036.92 11114376.17 950.04 3542977.94 6877928.57 - 22491269.64

Provision 504079.26 11114376.17 950.04 3542977.94 6877928.57 - 22040311.98

Transfer from investment properties 450957.66 - - - - - 450957.66

Closing balance 29813614.08 99841119.26 197800.20 34335548.85 53176119.04 710000.00 218074201.43

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

149

VII. Notes to the consolidated financial statements (Continued)

16. Intangible assets (Continued)

Land use rights Software Trademarks Favorable leases Distribution network Franchise Total

Provision for impairment

Opening balance - - - - - - -

Closing balance - - - - - - -

Carrying amount

At end of the year 33999813.48 93811846.88 165159124.92 93150451.15 221941023.82 - 608062260.25

At beginning of the year 33224566.81 86898851.35 92152999.84 96693429.09 65818952.39 - 374788799.48

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

150

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill

(1) Original Book Value of goodwill

Names of the investee or matters of forming goodwill Opening balance

Increase during this period

Decrease

during this

period

Closing

balance

Merger of

holdings not

under

common

control

Business

combinations

not under

common control

Sinopharm Holding (Jiangmen) Medical Co. Ltd.(“Sinopharm Jiangmen”) 27392317.73 - - - 27392317.73

Sinopharm Holding Shenzhen Yanfeng Co. Ltd.(“Sinopharm Yanfeng”) 16868644.87 - - - 16868644.87Sinopharm Holding Zhaoqing Co. Ltd. (“SinopharmZhaoqing”) 2594341.53 - - - 2594341.53Sinopharm Holding Shaoguan Co. Ltd. (“SinopharmShaoguan”) 1686496.80 - - - 1686496.80Sinopharm Holding Meizhou Co. Ltd. (“SinopharmMeizhou”) 1610819.66 - - - 1610819.66Sinopharm Holding Huizhou Co. Ltd. (“SinopharmHuizhou”) 923184.67 - - - 923184.67Sinopharm Holding Zhanjiang Co. Ltd. (“SinopharmZhanjiang”) 282135.55 - - - 282135.55Sinopharm Holding Dongguan Co. Ltd. (“Sinopharm

Dongguan”) 1499.02 - - - 1499.02

South Pharma & Trade 2755680.62 - - - 2755680.62

Foshan Nanhai 88877850.51 - - - 88877850.51Sinopharm Holding Zhuhai Co. Ltd.(“SinopharmZhuhai”) 6772561.47 6772561.47Sinopharm Holding Maoming Co. Ltd.(“SinopharmMaoming”) 66417.07 - - - 66417.07

Sinopharm Holding Guoda ForMe Medicines (Shanghai)

Co. Ltd. (“ForMe Medicines’’) 3033547.53 - - - 3033547.53Sinopharm Hebei Lerentang Pharmacy Chain Store Co.Ltd.(“Hebei Lerentang”) 29482149.57 - - - 29482149.57

Xiaoyi Guoda Wanmin Baicaotang Pharmacy Chain

Store Co. Ltd. (“Xiaoyi Wanmin”) 15866680.00 - - - 15866680.00

Shanxi Guoda Wanmin Pharmacy Chain Store Co. Ltd.(“Shanxi Wanmin”) 65025000.00 - - - 65025000.00

Sinopharm Holding Guoda ForMe Pharmacy Chain

Store Co. Ltd. (“ForMe Pharmacy Chain Store”) 19405450.23 - - - 19405450.23

Sinopharm Holding Guoda Pharmacy Chain Store

Shanghai 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

Sinopharm Holding Guoda Nanjing Pharmacy Chain

Store Co. Ltd. 11598341.12 - - - 11598341.12

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 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

151

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(1) Original Book Value of goodwill (Continued)

Names of the investee or matters of

forming goodwill

Opening balance

Increase during this period

Decrease

during this

period

Closing

balanceMerger of

holdings not

under common

control

Business

combinations

not under

common control

Sinopharm Holding Guoda Shandong Pharmacy Chain

Store Co. Ltd. 29110409.46 - - - 29110409.46

Sinopharm Holding Guoda Shenyang Pharmacy Chain

Store Co. Ltd. (“Guoda Shenyang”) 41047958.08 - - - 41047958.08

Liyang Guoda People Pharmacy Chain Store Co. Ltd. 107275095.74 - - - 107275095.74

Sinopharm Holding Hunan Guoda Minshengtang

Pharmacy Chain Co. Ltd. 41165574.64 - - - 41165574.64

Quanzhou Guoda Pharmacy Chain Store Co. Ltd.(“Guoda Quanzhou”) 41298622.59 - - - 41298622.59

Sinopharm Holding Guoda Henan Pharmacy Chain

Store Co. Ltd. 22666179.77 - - - 22666179.77

Guoda Neimenggu 70485777.00 - - - 70485777.00

Sinopharm Guoda Pharmacy Jiangmen Chain Co. Ltd. 77350000.00 - - - 77350000.00

Sinopharm Holding Guoda Shanxi Yiyuan Pharmacy

Chain Store Co. Ltd. 9080100.00 - - - 9080100.00

Shenzhen Guanganli Pharmacy Chain Store Co. Ltd. ‘s

Store Acquisition 13420000.00 - - - 13420000.00

Beijing Golden Elephant Pharmacy Medicine Chain

Company Limited 64140124.36 - - - 64140124.36

Guoda Taishan 26826120.55 - - - 26826120.55Taiyuan Tongxinli Pharmacy Co. Ltd. (“TaiyuanTongxinli”) 2818647.85 - - - 2818647.85

Sinopharm Holding Guoda Yongxingtang Pharmacy

Chain Store (Chaoyang) Co. Ltd (“ChaoyangYongxingtang”) 25973399.17 - - - 25973399.17

Sinopharm Holding Guoda Bayannur Co. Ltd. 13494000.00 - - - 13494000.00

Guoda Pu’er 71064684.79 - - - 71064684.79

Shanghai Dingqun Enterprise Management Consulting

Co. Ltd. - 520836246.17 - - 520836246.17

Liaoning Xianzhen Pharmaceutical Chain Co. Ltd. - - 34037431.66 - 34037431.66

1035057927.17 520836246.17 34037431.66 - 1589931605.00

(2) Provision of impairment loss

Names of the investee or matters of

forming goodwill Opening balance Increase Decrease Closing balance

Quanzhou Guoda Pharmacy

Chain Store Co. Ltd. 25000000.00 - - 25000000.00

Relevant information of asset group or combination of asset groups in which goodwill is located

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

152

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(2) Provision of impairment loss (Continued)

Explain the process of goodwill impairment test key parameters (such as the growth rate in the forecast

period the growth rate in the stable period the profit rate the discount rate the forecast period etc.) and

the recognition method of goodwill impairment loss:

The carrying value of goodwill is apportioned according to the proportion of each asset group or

combination of asset groups at fair value of the total amount of goodwill at fair value. It is shown as

follows:

30 June 2020 31 December 2019

Pharmaceutical distribution 152865497.03 152865497.03

Pharmaceutical retail 1412066107.97 857192430.14

1564931605.00 1010057927.17

The recoverable amount of asset group and combination of asset groups is calculated based on the

five-year period budget approved by the management while using the cash flow forecast method. The

cash flows beyond the five-year period are extrapolated using the inflation rate.Key assumptions were used for the calculation of the present values of future cash flow projections of

asset group and combination of asset groups consisting of pharmaceutical distribution and

pharmaceutical retail as of 30 June 2020. Key assumptions made by management on projections of

cash flows used in impairment testing are described as follows:

Pharmaceutical

distribution

Pharmaceutical retail

Revenue growth rate in the budget period 2.00%-40.00% 0.86%-35.00%

Sustainable growth rate 3.00% 3.00%

Gross margin 3.70%-6.94% 18.80%-41.22%

Discount rate 12.40%-15.00% 13.00%-15.00%

The budgeted gross margin and the revenue growth rate in the budget period are determined based on

the past performance and expectation for market development. The discount rates used are pre-tax

discount rates after reflecting specific risks of the relevant asset groups. The recoverable amount of the

asset group consisting of pharmaceutical distribution and pharmaceutical retail was determined

according to the key assumptions.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

153

Impact of goodwill impairment test

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(2) Provision of impairment loss (Continued)

Other declarations

The Group had acquired Shanghai Dingqun Enterprise Management Consulting Co. Ltd. in January

2020 which formed goodwill amounting to RMB520836246.17. Refer to Note VIII (1) for the calculative

process.The Group had acquired 43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical

Chain Co. Ltd. in January 2020 which formed goodwill amounting to RMB34037431.66. Refer to Note

VIII (6) for the calculative process.

18. Long‐term prepaid expenses

Opening balance Additions Amortization Other decrease Closing balance

Fixed asset improvement

expenditure 277430842.46 32090618.69 46186637.44 574966.71 262759857.00

Acquisition expenditure to

obtain the right to operate 67134884.98 10234469.22 8563697.31 - 68805656.89

Others 28962240.70 390900.59 4844401.16 - 24508740.13

373527968.14 42715988.50 59594735.91 574966.71 356074254.02

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

154

VII. Notes to the consolidated financial statements (Continued)

19. Deferred tax assets/liabilities

(1) Deferred tax assets before offseting

30 June 2020 31 December 2019

Deductible temporary

differences

Deferred tax

assets

Deductible temporary

differences

Deferred tax

assets

Provision for

impairment of assets 154608453.64 37042164.04 119337381.49 28279430.24

Accrued expenses 79114804.56 19537676.82 101057882.46 24536658.05

Deferred Income 36901990.37 8911273.37 32719558.79 7996709.35

Deductible tax loss 30884711.16 7893514.29 30789517.62 7536230.76

Accrued payroll 9176816.17 1861880.58 11868705.75 2454711.04

Others 146351742.65 34786664.66 78831333.02 17989763.45

457038518.55 110033173.76 374604379.13 88793502.89

(2) Deferred tax liabilities before offseting

30 June 2020 31 December 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 596762261.00 144013564.34 354297299.88 88574324.96

Changes in fair value

of financial assets

through other

comprehensive

income 102335240.00 25583810.00 102335240.00 25583810.00

Others 140375102.86 33924631.13 124248282.00 29809501.58

839472603.86 203522005.47 580880821.88 143967636.54

(3) Deferred tax assets and liabilities are presented after being offset against each other:

30 June 2020 31 December 2019

Deferred tax

assets/liabilities

Temporary

differences

Deferred tax

assets/liabilities -

Temporary

differences

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

155

-Net after set-off Net after set-off

Deferred tax assets 22573284.83 87459888.93 25682673.77 63110829.12

Deferred tax liabilities 22573284.83 180948720.64 25682673.77 118284962.77

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

156

VII. Notes to the consolidated financial statements (Continued)

19. Deferred tax assets/liabilities (Continued)

(4) The deductible temporary differences and deductible losses that were not recognized as

deferred tax assets are presented as follows:

30 June 2020 31 December 2019

Deductible temporary differences 3873005.85 (4654442.98)

Deductible loss 41606495.83 49106535.92

45479501.68 44452092.94

(5) The aforesaid unrecognized deductible losses will due:

30 June 2020 31 December 2019

2020 4725707.87 4725707.87

2021 2563056.08 2563056.08

2022 7261117.97 7261117.97

2023 11977477.56 11977477.56

2024 22579176.44 22579176.44

49106535.92 49106535.92

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

157

VII. Notes to the consolidated financial statements (Continued)

20. Other non‐current assets

30 June 2020 31 December 2019

Carrying

balance Impairment

Carrying

amount

Carrying

balance Impairment

Carrying

amount

Physical assets reserve

specifically

authorized 204600543.73 - 204600543.73 55550834.89 - 55550834.89

Security deposit 98860000.00 - 98860000.00 - - -

Prepayment for project

and equipment 30525646.70 - 30525646.70 21713763.10 - 21713763.10

Prepayment for rental

fee - - - 90372.40 - 90372.40

333986190.43 - 333986190.43 77354970.39 - 77354970.39

21. Short‐term borrowings

30 June 2020 31 December 2019

Credit borrowings 3710647467.19 1388979951.89

Discounted notes - 64038348.12

3710647467.19 1453018300.01

At 30 June 2020 the annual interest rate for the above borrowings was 3.98% (31 December 2019: 4.44%).

At 30 June 2020 and December 31 2019 there were no short-term borrowings of the Group that were overdue but not

yet paid.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

158

VII. Notes to the consolidated financial statements (Continued)

22. Notes payable

30 June 2020 31 December 2019

Commercial acceptance bills 27478678.61 40343723.78

Bank acceptance bills 4664347083.37 5515353833.75

4691825761.98 5555697557.53

At 30 June 2020 the total amount of notes payable that were due but not yet paid was nil (31 December 2019: nil).

23. Accounts payable

30 June 2020 31 December 2019

Payment for goods 8077705277.54 6703967826.54

At 30 June 2020 significant accounts payable aged over one year was analyzed below:

30 June 2020 Reason

Payment for goods 411112452.26 Not yet settled

At 30 June 2020 accounts payable aged over one year mainly the unsettled payment for goods was RMB411112452.26

(31 December 2019: RMB331837741.84).

24. Contract liabilities

30 June 2020 31 December 2019

Contract liabilities 287186619.13 303194940.70

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

159

VII. Notes to the consolidated financial statements (Continued)

25. Employee benefits payable

31 December 2019 Increase Decrease 30 June 2020

Short-term employee benefits (1) 254250943.71 1182689350.81 1230281170.97 206659123.55

Post-employment benefits

(defined contribution plan) (2) 5057047.69 51315317.37 41513011.89 14859353.17

Termination benefits 332821.70 661707.33 678749.56 315779.47

259640813.10 1234666375.51 1272472932.42 221834256.19

(1) Short-term employee benefits

31 December

2019 Increase Decrease 30 June 2020

Salaries bonuses allowances and grants 240039850.54 1051177293.05 1101589900.12 189627243.47

Staff welfare 1390324.53 29067766.74 29296335.09 1161756.18

Social security contribution 1749787.15 39494596.49 38189199.17 3055184.47

Incl: Medical insurance 1488183.67 35996281.26 35121968.13 2362496.80

Work injury insurance 34813.39 1032214.29 851069.33 215958.35

Maternity insurance 226790.09 2466100.94 2216161.71 476729.32

Housing funds 1461572.85 41848007.31 41545943.42 1763636.74

Labor union funds and employee

education funds 8550047.84 18536769.22 17424875.17 9661941.89

Other short-term benefits 1059360.80 2564918.00 2234918.00 1389360.80

254250943.71 1182689350.81 1230281170.97 206659123.55

(2) Defined contribution plan

31 December 2019 Increase Decrease 30 June 2020

Basic pension

insurance 1971797.54 48143186.16 38656748.31 11458235.39

Unemployment

insurance 107237.57 1832179.77 1494194.44 445222.90

Contribution to

pension fund 2978012.58 1339951.44 1362069.14 2955894.88

5057047.69 51315317.37 41513011.89 14859353.17

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

160

Note：For the half year of 2020 the Group provided other termination benefits for severing labor relations of RMB155676.56

For the half year of 2019 the Group provided other termination benefits for severing labor relations of RMB153286.50. For

the half year of 2020 and 2019 other termination benefits that were reversed for there was no need to pay for severing labor

relations were nil.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

161

VII. Notes to the consolidated financial statements (Continued)

26. Tax payable

30 June 2020 31 December 2019

Value-added tax 108825512.97 88904599.66

Corporate Income taxes 143919371.54 127697970.77

Individual income tax 9783502.58 4532506.64

City maintenance and construction surtax 7171349.99 6795877.54

Water conservancy fund 5562715.52 5488930.64

Educational surcharge 5234896.01 5089214.42

Stamp duty 3710928.46 6089170.55

Property tax 716939.75 532454.30

Land use tax 27219.91 11137.20

Others 8076841.92 8237662.62

293029278.65 253379524.34

27. Other payables

30 June 2020 31 December 2019

Interest payable 16242505.92 23632632.90

Dividend payable 11831814.95 6389320.96

Other payables 1766753318.57 1792342683.76

1794827639.44 1822364637.62

(1) Interest payable

30 June 2020 31 December 2019

Factoring interest on accounts receivable 16242505.92 23632632.90

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

162

VII. Notes to the consolidated financial statements (Continued)

27. Other payables (Continued)

(2) Dividend payable

30 June 2020 31 December 2019

Shenzhen Jiufeng Investment Co.Ltd. 5442493.99 -

Shanghai Fosun Pharmaceutical (Group) Co. Ltd. 4835511.58 4835511.58

Zhenfang Zhang 1389639.31 1389639.31

Meiluo Pharmaceutical Co. Ltd. 164170.07 164170.07

11831814.95 6389320.96

At 30 June 2020 and 31 December 2019 the Group had no significant dividend aged more than one year and not yet paid.

(3) Other payables

30 June 2020 31 December 2019

Payables for factoring programs 567495639.43 849490467.87

Deposit 455465836.66 425140894.94

Payables arising from acquisition of subsidiaries 247858171.71 72193635.62

Accrued expenses 138625440.62 129552787.78

Payables to individuals 94124011.89 32783589.00

Payables for construction in progress and

equipment

70827853.48 56723800.74

Payables for rentals 51769768.87 26375012.00

Equity subscription 36000000.00 46023136.00

Temporary loans 15800000.00 15800000.00

Collection of others 15513845.86 11844558.24

Payables for land transfer payments 12597500.00 12597500.00

Payables to related parties 1920951.59 67028812.08

Others 58754298.46 46788489.49

1766753318.57 1792342683.76

At 30 June 2020 significant other payables over 1 year are:

Amount payable Reason for outstanding

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

163

Changchun Shenshang Trade Co. Ltd. 21706566.50 Payment conditions not met

Foshan Gaoming District People's Hospital 13245282.96 Payment conditions not met

Shenyang Tiexi District State-owned Assets Supervision

and Administration Bureau 12597500.00 Payment conditions not met

Guangzhou Kaiti Biotechnology Co. Ltd. 7000000.00 Payment conditions not met

Liuzhou Shengli Drugstore 5943068.92 Payment conditions not met

Guangzhou Baiqiang Bio-pharm Co. Ltd. 5800000.00 Payment conditions not met

66292418.38

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

164

VII. Notes to the consolidated financial statements (Continued)

28. Non‐current liabilities due within 1 year

30 June 2020 31 December 2019

Long-term borrowings due within 1 year - 31638984.25

Lease liabilities due within 1 year 616449909.74 580278863.12

616449909.74 611917847.37

29. Other current liabilities

30 June 2020 31 December 2019

Output VAT to be recognized 836086.14 749710.19

30. Long‐term borrowings

At 30 June 2020 the total amount of remaining entrusted loans was nil(31 December 2019: RMB31638984.25). CNPGC

entrusted Sinopharm Group Finance Co. Ltd. to provide the loan. Borrowings due within one year have been reclassified to

non-current liabilities due within one year at 31 December 2019.

At 30 June 2020 the weighted average annual interest rate of the entrusted loans was nil (31 December 2019: 4.04%).

31. Lease liabilities

30 June 2020 31 December 2019

Lease payment 1832526074.67 1788731892.63

Less: Lease liabilities due within 1 year (616449909.74) (580278863.12)

1216076164.93 1208453029.51

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

165

VII. Notes to the consolidated financial statements (Continued)

32. Long‐term payables

30 June 2020 31 December 2019

Payables for specific projects 800000.00 800000.00

Payables for specific projects:

31 December

2019 Increase Decrease 30 June 2020

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 2020 31 December 2019

Early retirement benefits payable 1390000.00 1433000.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

166

VII. Notes to the consolidated financial statements (Continued)

34. Deferred income

Opening balance Increase Decrease Closing balance

Reasons of derred

income

Government grants 88704272.88 1114910.87 3824129.74 85995054.01 Government grants

As at 30 June 2020 deferred income from government grants are as follows:

Government grants

program

Opening

balance

Addition Amount included

in non-operating

income

Amount

included in

other income

Closing balance Asset related/

income related

Resettlement

Compensation (Note) 72857032.61 - 1349204.28 - 71507828.33 Asset related

Guangxi Logistics Project 6045353.50 - - 194631.86 5850721.64 Asset related

A comprehensive

experimental modern

service industry

subsidies 21780.55 6758.22 - - 28538.77 Asset related

Shared Logistics Center 233257.95 - - 9400.20 223857.75 Asset related

Other projects 9546848.27 1108152.65 323646.29 1947247.11 8384107.52

Asset/Income

88704272.88 1114910.87 1672850.57 2151279.17 85995054.01

Note:

Due to the implementation of urban planning for old town reconstruction in Nanning the operating center of Guangxi

Logistics which was located in Longteng Road District Nanning City was to be reconstructed in another place.

According to the agreement signed between Guangxi Logistics and the real estate developer in May 2012 Guangxi

Logistics would obtain a compensation of RMB120250000.00 including cash of RMB50000000.00 and a property in

construction equal to value of RMB70250000.00. Cash compensation of RMB50000000.00 was received in May

2012. In 2015 construction properties with a value of RMB70250000.00 were built and delivered and had been

recognised as investment properties.The compensation relating to the capital expenditure in the reconstruction of the new logistic center in another place

amounting to RMB93320000.00 was recognised as deferred revenue and would be amortized and recognised in the

income statement within the expected useful lives using the straight-line method and the other cash compensation of

which the amount approximates to RMB26930000.00 was recognised in the income statement in 2012.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

167

VII. Notes to the consolidated financial statements (Continued)

35. Other non‐current liabilities

30 June 2020 31 December 2019

Contract liabilities 53375.33 53785.13

Emergency special reserve funds (1) 396709549.65 -

Governmental medical reserve funds (2) 46723743.31 46723743.31

Product promotion accumulative points

programme (3) 29002964.11 26478986.49

472489632.40 73256514.93

(1) The emergency special reserve fund is the special fund set up to fight against the novel coronavirus infection pneumonia

epidemic.

(2) Governmental medical reserve funds are the funds received from the national and local governments for purchasing

reserve medical supplies.

(3) The Product promotion accumulative points programme refers to those product-originated accumulative points that remain

more than one year surplus before the expiration date.

36. Share capital

Movement during the current year

31 December 2019 Issue of new share Others Subtotal 30 June 2020

Shares 428126983.00 - - - 428126983.00

37. Capital surplus

31 December 2019 Increase Decrease 30 June 2020

Share premium 2118174787.27 - - 2118174787.27

Other capital surplus (1) 2352592172.17 - 97854894.55 2254737277.62

4470766959.44 97854894.55 4372912064.89

(1) The decrease of RMB97854894.55 in other capital reserves during the half year of 2020 was mainly due to as follows:

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

168

(a) On January 2 2020 Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. was absorbed by the Group’s

subsidiary Guoda Pharmacy making the business combination involving entities under common control. The decrease of

other capital surplus of RMB107759447.87 was resulted from the restatement on the combination date. The difference

between the carrying amount of the net assets of the ultimate controlling party obtained and the carrying amount of the

consideration paid for the combination lead to an increase of RMB9890417.88 of other capital surplus.(b) The increase of RMB 14135.44 was due to the increase of other equity investments of the Group's associate Shyndec

Pharma.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

169

VII. Notes to the consolidated financial statements (Continued)

38. Other comprehensive income

Amounts changes in current period

31 December 2019 Occurrence

amount

before tax

Attributable to

shareholders of

owners of the parent

30 June 2020

Other comprehensive income items which

will not be reclassified subsequently to

profit or loss 46050708.96 - 46050708.96

Incl: Change in the fair value of other

equity investments 46050708.96 - 46050708.96

Other comprehensive income that may be

reclassified to profit or loss (133366.19) 122186.89 122186.89 (11179.30)

Incl: Other comprehensive income using

the equity method that may be

reclassified to profit or loss (133366.19) 122186.89 122186.89 (11179.30)

45917342.77 122186.89 122186.89 46039529.66

39. Surplus reserve

31 December 2019 Increase Decrease 30 June 2020

Statutory surplus reserves 214063491.50 - - 214063491.50

40. Retained earnings

30 June 2020 31 December 2019

Retained earnings at beginning of year before

retrospective adjustment and restatement 7755295537.08 6655257147.27

The retrospective adjustment and restatement (1) (3029877.91) 328013.78

Retained earnings at beginning of year after

retrospective adjustment and restatement 7752265659.17 6655585161.05

Add: Net profit attributable to the parent 643451580.59 1267931291.32

Cash dividends declared (256876189.80) (171250793.20)

Retained earnings on June 30 2020 8138841049.96 7752265659.17

(1) The decrease of RMB3029877.91 of retained earnings was resulted from the business combinations involving entities under

common control.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

170

VII. Notes to the consolidated financial statements (Continued)

41. Operating revenue and cost

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Revenue Cost Revenue Cost

Principal operations 26944450698.03 23953267481.54 25404078914.05 22695673074.28

Other operations 225489490.49 17762237.90 195119901.25 17203529.91

27169940188.52 23971029719.44 25599198815.30 22712876604.19

Classification Head Office Pharmaceutical

distribution

Pharmaceutical

retail

Elimination between

segments

Total

By product

Incl:

Pharmaceuticals - 16641438242.96 8156648517.32 (422361134.63) 24375725625.65

Medical devices

and disposables - 1750812482.89 434627699.58 - 2185440182.47

Diagnostic

reagents - 335716038.17 - - 335716038.17

Medical equipments - 165119634.08 - - 165119634.08

Others 1752928.75 81665462.45 - (5701598.40) 77716792.80

By area

Incl:

China 1752928.75 18974751860.55 8591276216.90 (428062733.03) 27139718273.17

By contract duration

Incl:

At a point in time - 18893086398.10 8591276216.90 (422361134.63) 27062001480.37

Over time 1752928.75 81665462.45 - (5701598.40) 77716792.80

1752928.75 18974751860.55 8591276216.90 (428062733.03) 27139718273.17

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

171

VII. Notes to the consolidated financial statements (Continued)

41. Operating revenue and cost (Continued)

Information about the Group’s performance obligations is summarised below:

(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 days

from delivery;

(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service is

completed.Information related to the sales price allocated to the remaining obligations:

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled is

RMB287186619.13 of which RMB287186619.13 is expected to be recognized in 2020.

Revenue is as follows:

For the six month ended

30 June

2020

For the six month ended

June 2019

Revenue from contracts with customers 27139718273.17 25563937953.07

Rentals 30221915.35 35260862.23

27169940188.52 25599198815.30

42. Tax and surcharges

For the six month ended

30 June

2020

For the six month ended

30 June

2019

City maintenance and construction tax 28121494.67 24093402.61

Educational surcharge 20311577.25 17361303.42

Property tax 2492284.79 3222428.64

Land tax 317162.91 316667.35

Vehicle and vessel use tax 72575.73 75549.45

Stamp duty 17140178.76 17540813.09

Others 1050035.21 101229.81

69505309.32 62711394.37

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

172

VII. Notes to the consolidated financial statements (Continued)

43. Selling expenses

For the six month ended

30 June 2020

For the six month ended 30

June 2019

Employees payroll and welfare benefits 904925594.87 783513545.77

Depreciation expenses of right-of-use assets 387380924.52 289067372.67

Amortization of long-term deferred expenses 52138560.36 44285025.97

Technical service fee 45620729.98 93048651.31

Repairing fees 7147598.96 6150263.59

Utilities 34081779.59 29521818.72

Property management fee 15659321.63 13758182.29

Rental expenses 60573717.68 88051897.57

Transportation charges 51095840.37 42481965.66

Depreciation expenses 43808801.59 41024228.63

Promotion and marketing expenses 15399693.56 21514669.28

Office allowances 27895774.76 19914617.62

Entertainment expenses 9358003.62 11670679.46

Storage expenses 18300237.30 15216365.97

Travel allowances 1845288.42 3017736.94

Market development fee 4517975.19 3713897.19

Conference expenses 292483.51 1208841.86

Others 48696492.69 34125287.44

1728738818.60 1541285047.94

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

173

VII. Notes to the consolidated financial statements (Continued)

44. Administrative expenses

For the six month ended

30 June 2020

For the six month ended

30 June 2020

Employees payroll and welfare benefits 325153640.16 274365059.08

Depreciation expenses 16351496.61 14817248.80

Office allowances 12677148.40 11775153.56

Technical service fee 11527561.19 7610686.90

Depreciation expenses of right-of-use assets 10925364.40 10270387.34

Amortization of intangible assets 8991474.97 9972779.46

Amortization of long-term deferred expenses 6808445.06 5532926.20

Rental expenses 5390672.79 7146127.99

Entertainment expenses 4596522.19 6405404.04

Agency service fee 3411279.41 4163879.71

Vehicle management expenses 3169051.19 3744396.56

Property management fee 3089556.70 2171738.05

Repairing fees 2898331.91 2507057.40

Promotion and marketing expenses 2180552.03 3417621.60

Utilities 1919161.42 3826117.17

Travel allowances 1822634.84 3818046.45

Conference expenses 730264.28 2693174.37

Others 21643987.37 17610533.23

443287144.92 391848337.91

45. Finance costs

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Interest expenses 133350510.68 134795237.41

Less: Interest income 65512550.22 60641102.49

Cash discount 20153456.44 23190566.63

Exchanges gain/(loss) 47935.97 (389882.62)

Others 17581389.63 14414073.25

65313829.62 64987758.92

A breakdown for interest income is as follows:

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Cash 65512550.22 60641102.49

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

174

VII. Notes to the consolidated financial statements (Continued)

46. Other incomes

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Government grants related to daily operating activities 25786877.95 13664566.88

VAT reduction for small-scale taxpayers 8383678.31 2440639.30

Taxation service charge refund 820107.47 16447.15

VAT additional deduction 864634.59 369265.69

35855298.32 16490919.02

47. Investment income

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Long-term equity investment income under the

equity method 133604904.16 169142289.99

Investment income from financial assets at fair value through

profit or loss 4109881.90 -

Investment income from the derecognition of financial assets

measured at amortised cost (33507102.64) (42268803.55)

Others 998665.84 -

105206349.26 126873486.44

48. Credit impairment losses

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Impairment loss of other receivables (1401731.20) (1666431.98)

Impairment loss of accounts receivable (20178500.32) (9767669.15)

(21580231.52) (11434101.13)

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

175

VII. Notes to the consolidated financial statements (Continued)

49. Impairment losses

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Inventory provision (1743888.30) (125554.34)

50. Gain on disposal of assets

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Gain on disposal of right-of-use assets 3971813.20 -

Gain on disposal of fixed assets 333511.60 (29725.44)

4305324.80 (29725.44)

51. Non‐operating income

For the six month

ended

30 June 2020

For the six month

ended

30 June 2019

Amount classified as

non-recurring profit or

loss

Government grants 1349204.28 1349204.28 1349204.28

Gain from writing off the unnecessary payment 199266.47 306191.87 199266.47

Gain on disposal of non-current assets 2171.01 195336.00 2171.01

Others 3669338.46 1822960.30 3669338.46

5219980.22 3673692.45 5219980.22

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 2020

For the six

months ended

30 June

2019

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

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

176

VII. Notes to the consolidated financial statements (Continued)

52. Non‐operating expenses

For the six month

ended

30 June 2020

For the six month

ended

30 June 2019

Amount classified

as non-recurring

profit or loss

Donation expenses 527677.41 - 527677.41

Penalty expenses 467582.50 273498.60 467582.50

Losses arising from damage and obsolescence

of non-current assets 373790.44 181433.28 373790.44

Others 1639842.17 1294518.20 1639842.17

3008892.52 1749450.08 3008892.52

53. Income tax expenses

For the six month ended

30 June 2020

For the six month ended

30 June 2019

Current income tax 213477221.94 184056184.46

Deferred income tax (3370457.59) 8068174.38

210106764.35 192124358.84

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 2020

Profit before income tax 1016319306.88

Tax at the applicable tax rate 254079826.72

Effect of different tax rates for some subsidiaries (11800964.95)

Adjustments in respect of current tax of previous periods (553240.46)

Income not subject to tax (33401226.04)

Expenses not deductible for tax 1361683.42

Unrecognised deductible temporary differences and tax losses 420685.65

Income tax 210106764.35

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

177

VII. Notes to the consolidated financial statements (Continued)

54. Notes to items in the cash flow statemen

(1) Cash receipts related to other operating activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Received the special emergency reserve fund from

Guangdong Food and Strategic Reserves Bureau

330000000.00 -

Interest income 65499031.75 60227651.15

Rent income 30221915.35 38487260.93

Received other government grants except tax refund 28018379.40 17840011.49

Received operational restricted bank deposits - 123321063.70

Others 253462783.50 69584470.70

707202110.00 309460457.97

(2) Cash paid relating to other operating activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Rental expenses 65964390.47 103959514.38

Transportation charges 51095840.37 42481965.66

Office expenses 40572923.16 31689771.18

Utilities 36000941.01 33347935.89

Storage expenses 18300237.30 15222526.30

Advertising expenses 17580245.59 21514669.28

Entertainment expenses 13954525.81 18076083.50

Travel expenses 3667923.26 6835783.39

Others 456537231.52 249454073.89

703674258.49 522582323.47

(3) Cash received relating to other investing activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Received from capital pool 22000000.00 260600000.00

Others 40000.00 -

22040000.00 260600000.00

Shanghai Pudong New Area Pharmaceutical Co. Ltd. a subsidiary of the Group received the funds allocated from the

capital pool of its former parent company Sinopharm Holdings Co. Ltd. during the same period last year and

recovered the funds collected into the capital pool in this period.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

178

VII. Notes to the consolidated financial statements (Continued)

54. Notes to items in cash flow statement (Continued)

(4) Cash paid relating to other investing activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Paid to capital pool - 228000000.00

Others - 1093125.00

- 229093125.00

Shanghai Pudong New Area Pharmaceutical Co. Ltd. a subsidiary of the Group collected the funds into the capital pool

of its parent company Sinopac Holdings Co. Ltd. in last period.

(5) Cash received relating to other financing activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Received loan provided by minority shareholders 149900000.00 -

Financing restricted monetary funds received 128449840.06 3512659.71

Received loan provided by Sinmpharm 56000000.00 -

334349840.06 3512659.71

(6) Cash payments relating to other financing activities

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Lease payment 466492796.45 299173550.25

Repayment of the loan provided by minority

shareholders 304000000.00 -

Bank factoring payable 281994828.44 174269120.18

Investment fund of Shanghai Pudong New Area

Pharmaceutical Co. Ltd. 163115049.98 -

Repayment of the loan provided by Sinmpharm 114000000.00 -

Purchase of equity of minority shareholders 52309117.11 -

Others 23199872.28 36719497.31

1405111664.26 510162167.74

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

179

VII. Notes to the consolidated financial statements (Continued)

55. Supplementary information of cash flow statement

(1) Reconciliation of net profit to cash flows from operating activities

For the six month

ended

30 June 2020

For the six month

ended

30 June 2019

Net profit 806212542.53 767064580.05

Add: Provisions for asset impairment 23324119.82 11559655.47

Depreciation of fixed assets 61147847.16 64732395.55

Depreciation of right-of-use assets 388208804.99 302028195.79

Amortization of intangible assets 22955311.98 15002033.78

Amortization of long-term prepaid expenses 51031038.60 50607272.62

Gains/(losses) on disposal of fixed assets intangible assets and other

long-term assets (4287008.63) 222202.30

Finance expenses 124862298.31 65730326.01

Investment losses (105206349.26) (127616053.53)

(Increase)/decrease in deferred tax assets (1027041.92) 5891176.39

(Decrease)/increase in deferred tax liabilities (2343415.67) 2176997.99

Decrease in inventories (85043215.49) (490003184.76)

Increase in operating receivables items (2023296252.84) (1984309017.89)

(Decrease)/increase in operating payable items (133395115.40) 2422514591.29

Others 2315060479.17 33552949.83

Net cash generated from operating activities 1438204043.35 1139154120.89

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

180

VII. Notes to the consolidated financial statements (Continued)

55. Supplementary information of cashflow statement (Continued)

(2) Movement of cash

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Cash at the end of the period 8000562022.16 7775384674.41

Less: Cash at the beginning of the period 8426071170.16 7634936037.30

Net increase in cash (425509148.00) 140448637.11

(3)

For the six months ended

30 June 2020

Cash and cash equivalents paid for acquisitions of subsidiaries and other

operating units 702172656.27

Incl: Shanghai Dingqun Enterprise Management Consulting Co. Ltd. 683453553.00

43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical

Chain Co. Ltd. 18719103.27

Less: Cash and cash equivalents held by subsidiaries and other operating units at the

acquisition date 42971164.62

Incl: Shanghai Dingqun Enterprise Management Consulting Co. Ltd. 42971164.62

43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical

Chain Co. Ltd. -

Net cash outflow/(inflow) on acquisition of the subsidiaries and other operating units 659201491.65

(4) Cash and cash equivalent

30 June 2020 31 December 2019

Cash 8000562022.16 8426071170.16

Inclue: Cash on hand 13254761.42 5333515.38

Bank deposits on demand 7987307260.74 8420737654.78

Ending banlance cash and cash equivalent 8000562022.16 8426071170.16

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

181

VII. Notes to the consolidated financial statements (Continued)

56. Assets under restricted ownership or right of use

Book value Reasons

Cash and bank balances 218128205.64 Note 1-3

Note 1: As at 30 June 2020 the Group had deposits of bank acceptance bills and letter of credit deposit amounting to

RMB218128205.64 (31 December 2019: RMB442672297.43) (Note V(1)).

Note 2: As at 30 June 2020 the Group had Commercial acceptance bills of RMB0.00 discounted but not due (31 December

2019: RMB64038348.12) (Note V (2)).

Note 3: As at June 2020 the Group had Commercial acceptance bills of RMB0.00 endorsed but not due (31 December 2019:

0.00) (Note V (2)).

57. Government grants

Type Amount

Items of financial

statements

The amount

recorded into

profit or loss for

the current period

Stabilitation allowances 9258969.12 Other income 9258969.12

Special funds for science and technology issued by

Shanghai Yangpu District Finance Bureau 4184000.00 Other income 4184000.00

Emergency supplies 2185530.25 Other income 2185530.25

Tax return 2050692.07 Other income 2050692.07

Resettlement Compensation of No. 7 Zhongyu Road 1349204.28

Non-operating

income

/Deferred

income 1349204.28

Financial support fund 1320000.00 Other income 1320000.00

supporting fund from Beijing commerce bureau 1000000.00 Other income 1000000.00

Government grants for COVID-19 983100.00 Other income 983100.00

Collection of housing compensation from Shanghai putuo

district 940000.00 Other income 940000.00

Government support fund from Shanghai jingan district

finance bureau 780000.00 Other income 780000.00

Government support fund 758529.43 Other income 758529.43

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

182

VII. Notes to the consolidated financial statements (Continued)

57. Government grants (Continued)

Type Amount

Items of financial

statements

The amount

recorded into

profit or loss for

the current period

Tax allowance from Nanjing gulou district 592168.98 Other income 592168.98

Guangzhou logistics standardization pilot project

allowance 273123.42

Other income

/Deferred

income 273123.42

VAT reduction or exemption for self-employment retired

soldiers 230070.00 Other income 230070.00

2013 Guangzhou subsidies for headquarters 173525.33

Other income

/Deferred

income 173525.33

Centralized financial subsidy fund for comprehensive pilot

work of modern service industry 150000.00

Other income

/Deferred

income 150000.00

Financial subsidy for the construction of modern supply

chain system in central circulation field 132565.02

Other income

/Deferred

income 132565.02

Government support fund from Shanghai minxing district 130000.00 Other income 130000.00

Special fund for the development of small and

medium-sized enterprises from Shanghai yangpu district

finance bureau 117000.00 Other income 117000.00

Logistics project construction support fund from Nanning

economic development committee 93203.22

Other income

/Deferred

income 93203.22

Rewards for steady growth of business and trade from

Xiamen huli district 75000.00 Other income 75000.00

Medical storage center logistics information platform

project allowance from Nanning finance bureau 71428.64

Other income

/Deferred

income 71428.64

Guangzhou special subsidy for commerce and trade

circulation industry 50000.04

Other income

/Deferred

income 50000.04

Rewards for excellent enterprise from Liyang 50000.00 Other income 50000.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

183

VII. Notes to the consolidated financial statements (Continued)

57. Government grants (Continued)

Type Amount

Items of financial

statements

The amount

recorded into

profit or loss for

the current

period

Special Fund for the construction of Enterprise Research

and development Institutions in Guangzhou 44705.94

Other income

/Deferred

income 44705.94

One-time employment subsidy for college graduates 31000.00 Other income 31000.00

Project subsidy of logistics cold chain integrated

monitoring platform 30000.00

Other income

/Deferred

income 30000.00

Allowance from Beijing circulation economic research

center 16400.00 Other income 16400.00

Medical intelligent supply chain e-commerce service

platform technology project subsidy from Guangzhou

liwan district 15424.57

Other income

/Deferred

income 15424.57

Subsidy for industrialization application project of

pharmaceutical cold chain patent incubator from

Guangzhou liwan district 12499.98

Other income

/Deferred

income 12499.98

Supply Chain Engineering Technology Research and

Development Center project funding from Guangzhou

liwan district 11598.84

Other income

/Deferred

income 11598.84

Deduction of land use tax from Guangxi finance

department 9942.90 Other income 9942.90

Third party medicine modern logistics public information

platform allowances from Guangzhou liwan district 9400.20

Other income

/Deferred

income 9400.20

Rewards from Changzhi luzhou districtcommerce bureau 5000.00 Other income 5000.00

Rewards from Qinzhou qinnan district commerce bureau 2000.00 Other income 2000.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

184

VIII. Changes in scope of consolidation

1. Business combination not involving enterprises under common control

1.1 Acquiring Shanghai Dingqun Enterprise Management Consulting Co. Ltd. And Beijing Jinxiang Guoxing Medical Co. Ltd.

Acquiree The date of

acquiring the

right

Acquistion cost of

the right

Proportion of

rights owned by

the Group

Methods of

acquisition

the right

Acquisition date The basis for

determining the

date of purchase

Income earned from the

acquisition date to

30 June 2020

Net profit earned from

the acquisition date to

30 June 2020

Shanghai

Dingqun

Enterprise

Management

Consulting Co.

Ltd. (a) 7 January 2020 934240000.00 100.00% Acquisition 7 January 2020

The purchaser

actually acquires

control over the

acquired

company 1000951799.38 27351707.81

Beijing Jinxiang

Guoxing Medical

Co. Ltd. (b) 2 April 2020 10000.00 100.00% Acquisition 2 April 2020

The purchaser

actually acquires

control over the

acquired

company - -

Additional clarification：

(a) Guoda Pharmacy a subsidiary of the Company acquired 100% shares of Shanghai Dingqun Enterprise Management Consulting Co. Ltd. as known as 85% shares of Jilin Tianhe Pharmaceutical

Technology Co. Ltd. from Ningbo Meishan bonded port area Qiling equity investment center LP and the Group by RMB934240000.00. The acquisition was completed on 7 Jaunary 2020 the Company

controlled Shanghai dingqun and formed a business combination not involving enterprises under common control which Shanghai dingqun was included in the scope of the Company's consolidation.(b) Beijing Golden Elephant Pharmacy Medicine Chain Co. Ltd. a subsidiary of the Company acquired 100% shares of Beijing Jinxiang Guoxing Medical Co. Ltd. from Beijing Jinxiang Fosun Medical Co.Ltd. by RMB10000.00. The acquisition was completed on 2 April 2020 the Company controlled Beijing Jinxiang Guoxing Medical Co. Ltd. and formed a business combination not involving enterprises

under common control which Beijing Jinxiang Guoxing Medical Co. Ltd. was included in the scope of the Company's consolidation.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

185

VIII. Changes in scope of consolidation (Continued)

1. Business combinations not involving enterprises under common control (Continued)

1.2 Acquisition costs and goodwill arising from acquisition

Acquisition costs

Shanghai Dingqun

Enterprise

Management

Consulting Co. Ltd.

Beijing Jinxiang Guoxing

Medical Co. Ltd.

Cash 934240000.00 10000.00

Acquisition costs 934240000.00 10000.00

Less: the fair values of acquired identifiable net assets 413403753.83 10000.00

Goodwill arising from acquisition/Acquisition costs exceeding the fair

values of acquired identifiable net assets 520836246.17 -

The fair value of the cost of acquisition is recognized according to the price actually paid.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

186

VIII. Changes in scope of consolidation (Continued)

1. Business combinations not involving enterprises under common control (Continued)

1.3 The fair values of acquired identifiable assets and liabilities on the acquisition date

Shanghai Dingqun Enterprise Management

Consulting Co. Ltd. Beijing Jinxiang Guoxing Medical Co. Ltd.

Fair value Carrying amount Fair value Carrying amount

Cash and bank balances 56055948.87 56055948.87 10000.00 10000.00

Accounts receivable 753590278.82 753590278.82 - -

Inventories 346785462.21 346785462.21 - -

Fixed assets 6092375.11 6092375.11 - -

Intangible assets 237873287.90 1873287.90 - -

Receivable financing 19457255.29 19457255.29 - -

Advances to suppliers 42432641.61 42432641.61 - -

Other receivables 37527663.99 37527663.99 - -

Other current assets 6040985.16 6040985.16 - -

Right-of-use assets 101117742.73 101117742.73 - -

Long-term prepaid expenses 2797065.29 2797065.29 - -

Deferred tax assets 20212628.97 20212628.97 - -

Other non-current assets 98900000.00 98900000.00 - -

Short-term borrowings 250000000.00 250000000.00 - -

Notes payable 164882176.00 164882176.00

Accounts payable 224639145.65 224639145.65 - -

Deferred tax liabilities 61897784.60 2897784.60 - -

Contract liabilities 1344985.26 1344985.26 - -

Employee benefits payable 7519225.65 7519225.65 - -

Tax payable 32667189.01 32667189.01 - -

Other payables 416021537.02 416021537.02 - -

Non-current liabilities due

within one year 24715341.58 24715341.58 - -

Lease liabilities 55614900.64 55614900.64 - -

Net assets 489581050.54 312581050.54 - -

Less: equity of minority 76177296.71 49627296.71 - -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

187

shareholders

Net assets acquired 413403753.83 262953753.83 10000.00 10000.00

Methods for determining the fair value of identifiable assets and liabilities:

It is recognized according to the appraisal.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

188

VIII. Changes in scope of consolidation (Continued)

1. Business combination not involving enterprises under common control (Continued)

1.4 The gain or loss arising from the acquisition of the remeasurement at the fair value of the

acquirer’s previously held equity

Acquired

company

Carrying amount of

the acquirer’s

previously held

equity on the

acquisition day

Fair value of the

acquirer’s

previously held

equity on the

acquisition day

Gain or loss arising

from the acquisition

of the

remeasurement at

the fair value of the

acquirer’s

previously held

equity on the

acquisition date

Main assumptions o

f the remeasurem

ent of the fair val

ue of

the acquirer’s

previously held

equity

Amount transfer

from other

comprehensive

income to

investment income

of the Acquirer’s

previously held

equity

Shanghai Dingqun

Enterprise

Management

Consulting Co.

Ltd. 22637781.16 23636447.00 998665.84

remeasure

according to the

evaluation -

Other：

On May 2018 the Group jointly established Shanghai Dingqun with Ningbo Meishan bonded port area Qiling equity investment

center LP subscribing 2.53% and 97.47% of shareholdings respectively. According to the Articles of Association the board of

directors of Shanghai Dingqun consisted of three directors and one of them was appointed by our Company. Each director shall

represent one vote on the board’s decisions which shall be adopted if they are voted for by a simple majority of all the members of

the board. Therefore the Group has significant influence over Shanghai Dingqun and thus it is considered as an associate of the

Group. In the current year Guoda Pharmacy a subsidiary of the Group acquired 100% shares of Shanghai Dingqun Enterprise

Management Consulting Co.Ltd. and 85% shares of Jilin Tianhe Pharmaceutical Technology Co. Ltd. from Ningbo Meishan

bonded port area Qiling equity investment center LP and the Group by RMB934240000.00. The acquisition was completed on 7

Jaunary 2020. After that Shanghai Dingqun Enterprise Management Consulting Co. Ltd. is involved in the Group.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

189

VIII. Changes in scope of consolidation (Continued)

2. Business combinations involving enterprises under common control

2.1 Acquisition occurred in the current year

Acquiree Proportion

of rights

owned by

the Group

The basis for

identifying

Business

combinations

involving

enterprises

under common

control

Acqusition

date

The basis for

determining the

date of

purchase

Revenue of

the acquiree

from the

beginning of

the year to

the

acquisition

date

Net profit of

the acquiree

from the

beginning of

the year to

the

acquisition

date

Revenue of the

acquiree during

the comparison

period

Net profit of

the acquiree

during the

comparison

period

Pudong New Area

of Shanghai

Pharmaceutical

Medicine Ltd. 75.00%

Acquiree is und

er common co

ntrol before an

d after the acq

uisition

and the control

is not temporary

1 January

2020

The purchaser

actually

acquires control

over the

acquired

company - - 382731690.83 (1027975.26)

Others:

Guoda Pharmacy a subsidiary of the Company acquired 75% shares of Pudong New Area of Shanghai Pharmaceutical Medicine

Ltd from Sinopharm Group by RMB163115000.00. The acquisition was completed on 2 Jaunary 2020. After the business

combination involving entities under common control. After that Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. is

involved in the Group.

2.2 Acquisition costs

Acquisition cost Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.

Cash 163115049.98

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

190

VIII. Changes in scope of consolidation (Continued)

2. Business combinations involving enterprises under common control (Continued)

2.3 The carrying amount of the Acquiree’s assets and liabilities at the acquisition date

Pudong New Area of Shanghai Pharmaceutical

Medicine Ltd.

Acquisition date 31 December 2019

Cash and bank balances 3394404.68 3394404.68

Accounts receivable 100459214.59 100459214.59

Inventories 115849551.73 115849551.73

Fixed assets 95400228.52 95400228.52

Intangible assets 54842072.44 54842072.44

Advances to suppliers 4946238.30 4946238.30

Other receivables 23970596.45 23970596.45

Other current assets 8933.82 8933.82

Right-of-use assets 39296729.06 39296729.06

Long-term prepaid expenses 7065829.13 7065829.13

Deferred tax assets 2479813.13 2479813.13

Goodwill 65978042.61 65978042.61

Accounts payable 155320266.34 155320266.34

Contract liabilities 544372.73 544372.73

Employee benefits payable 3813091.44 3813091.44

Tax payable 3261136.20 3261136.20

Other payables 65506176.60 65506176.60

Non-current liabilities due within one year 10490753.75 10490753.75

Lease liabilities 26045944.43 26045944.43

Deferred tax liabilities 34567476.49 34567476.49

Net assets 144761654.23 144761654.23

Minus：equity of minority 39593153.20 39593153.20

Net assets acquired 174549283.28 174549283.28

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

191

VIII. Changes in scope of consolidation (Continued)

3. Reverse purchase

Basic information of the transaction the basis on which the transaction constitutes the reverse purchase whether the assets and

liabilities retained by the listed company constitute the business and the basis the determination of the merger cost and the

amount of the adjusted equity in accordance with the equity transaction and its calculation:

4. Other reasons for Changes in scope of consolidation

Other reasons for Changes in scope of consolidation (set up new company liquidation etc.)

30 June 2020 1 January 2020

During the period

Net assets Net profit

Guoda Pharmacy (Rizhao) Co. Ltd. (a) - -

Liaoning Guoda Health Pharmacy Co. Ltd. (b) 10001.36 1.36

(a) At 3 June 2020the Group invested RMB1500.00 thousand to set up Guoda Pharmacy (Rizhao) Co. Ltd As at 30

June 2020 payment has not been completed.(b) At 13 March 2020the Group invested RMB5000.00 thousand to set up Liaoning Guoda Health Pharmacy Co. Ltd.

As at 30 June 2020 RMB10000.00 was paid.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

192

VIII. Changes in scope of consolidation (Continued)

5. Others

Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co. Ltd. a subsidiary of the Group obtained 43 directly-operated

stores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co. Ltd. with cash of RMB45000000.00. The acquisition was

completed on January 2020. The fair values and carrying amounts of identifiable assets and liabilities of the management right of

43 stores and 11 clinics on the acquisition date are presented as follows:

Liaoning Xianzhen Pharmaceutical Chain Co. Ltd. 30 March 2020 30 March 2020

Fair value Carrying amount

Fixed assets 962568.34 962568.34

Inventories 10000000.00 10000000.00

Total 10962568.34 10962568.34

Price paid 45000000.00 45000000.00

Goodwill arising from acquisition 34037431.66 34037431.66

Operating results and cash flows of 43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co. Ltd.for the period from the acquisition date to the end of the June are presented as follows:

30 March 2020 to 30 June 2020

Operating revenue 21862569.11

Net profit (25323.42)

cash flows from operating activities 3363331.77

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

193

IX. Interests in other entities

1． Interests in subsidiaries

(1) The composition of the Group:

Subsidiaries Principal place ofbusiness

Place of

incorporation

Nature of

business

Shareholding

Ways of acquisition

Direct Indirect

Sinopharm Guilin Guilin Guilin Commercial - 100.00% Establishment

Sinopharm Baise Baise Baise Commercial - 100.00% Establishment

Sinopharm Holding

Zhongshan Co.Ltd.(hereafter

refered

as"Sinopharm

Zhongshan") Zhongshan Zhongshan Commercial - 100.00% Establishment

Sinopharm Guigang Guigang Guigang Commercial - 100.00% Establishment

Sinopharm Beihai Beihai Beihai Commercial - 100.00% Establishment

Sinopharm Holding

Guangzhou Medical

Treatment Guangzhou Guangzhou Commercial - 51.00% Establishment

Sinopharm Holding

Shenzhen Jianmin

Co. Ltd.(hereafter

refered

as"Sinopharm

Jianmin") Shenzhen Shenzhen Commercial 100.00% -

Business

combinations

involving entities

under common

control

Sinopharm Holding

Shenzhen

Traditional & Herbal

Medicine Co. Ltd.(hereafter referd as“SinopharmTraditional & Herbal

Medicine") Shenzhen Shenzhen Commercial 100.00% -

Business

combinations

involving entities

under common

control

Sinopharm Holding

Shenzhen Logistics

Co. Ltd. (hereafterrefered as“ShenzhenLogistics") Shenzhen Shenzhen Services 100.00% -

Business

combinations

involving entities

under common

control

Sinopharm Holding

Guangzhou Co. Ltd.(hereafter referedas“SinopharmGuangzhou") Guangzhou Guangzhou Commercial 100.00% -

Business

combinations

involving entities

under common

control

Sinopharm Holding

Guangdong

Hengxing Co. Ltd.(hereafter referedas“SinopharmHengxing") Guangzhou Guangzhou Commercial - 100.00%

Business

combinations

involving entities

under common

control

Sinopharm Yulin Yulin Yulin Commercial - 100.00%

Business

combinations

involving entities

under common

control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

194

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Sinopharm Liuzhou Liuzhou Liuzhou Commercial - 51.00%

Business combinations

involving entities under

common control

Guangdong Huixin Investment Co.Ltd. (“Huixin Investment”) Guangzhou Guangzhou Service 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Foshan Co.Ltd. (“Sinopharm Foshan") Foshan Foshan Commercial 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding GuangdongYuexing Co. Ltd. (“SinopharmYuexing”) Guangzhou Guangzhou Commercial 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guangdong

Logistics Co. Ltd.(“Guangdong Logistic”) Guangzhou Guangzhou Service 100.00%

Business combinations

involving entities under

common control

Sinopharm Guangxi Nanning Nanning Commercial 100.00%

Business combinations

involving entities under

common control

Guangxi Logistic Nanning Nanning Service 100.00%

Business combinations

involving entities under

common control

Sinopharm Wuzhou Wuzhou Wuzhou Commercial 99.90%

Business combinations

involving entities under

common control

Sinopharm Dongguan Dongguan Dongguan Commercial 100.00%

Business combinations

involving entities not under

common control

Sinopharm Zhanjiang Zhanjiang Zhanjiang Commercial 100.00%

Business combinations

involving entities not under

common control

Sinopharm Yanfeng Shenzhen Shenzhen Commercial 51.00%

Business combinations

involving entities not under

common control

Sinopharm Meizhou Meizhou Meizhou Commercial 100.00%

Business combinations

involving entities not under

common control

Sinopharm Huizhou Huizhou Huizhou Commercial 100.00%

Business combinations

involving entities not under

common control

Sinopharm Zhaoqing Zhaoqing Zhaoqing Commercial - 100.00%

Business combinations

involving entities not under

common control

Sinopharm Jiangmen Jiangmen Jiangmen Commercial - 100.00%

Business combinations

involving entities not under

common control

Sinopharm Shaoguan Shaoguan Shaoguan Commercial - 70.00%

Business combinations

involving entities not under

common control

Sinopharm Holding Shantou Co.Ltd.(hereafter referedas"Sinopharm Shantou”) Shantou Shantou Commercial - 100.00%

Business combinations

involving entities not under

common control

Foshan Nanhai Foshan Foshan Commercial - 100.00%

Business combinations

involving entities under

common control

Foshan Nanhai Uptodate & Special

Medicines Co. Ltd. Foshan Foshan Commercial - 100.00%

Business combinations

involving entities under

common control

Foshan Nanhai Medicine Co. Ltd. Foshan Foshan Commercial - 100.00%

Business combinations

involving entities under

common control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

195

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Guangdong Uptodate & Special

Medicines Guangzhou Guangzhou Commercial - 100.00%

Business combinations

involving entities under

common control

Guangdong South Pharmaceutical

Foreign Trade Co. Ltd. Guangzhou Guangzhou Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Zhuhai Co.Ltd. ((hereafter referd as“Sinopharm Zhuhai") Zhuhai Zhuhai Commercial - 100.00%

Business combinations

involving entities not under

common control

Sinopharm Maoming (a) Maoming Maoming Commercial - 100.00%

Business combinations

involving entities not under

common control

Sinopharm Holding GZ Medical

Technology Co. Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment

Sinopharm Holding GZ Medical

Supply Chain Service Co. Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment

Sinopharm Holding Heyuan Co.Ltd. ((hereafter referd as“Sinopharm Heyuan") Heyuan Heyuan Commercial - 70.00%

Business combinations

involving entities not under

common control

Sinopharm Holding Guoda

Pharmacy Co. Ltd. Shanghai Shanghai Commercial 60.00% -

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Pharmacy Chain Store

Shanghai Co. Ltd. Shanghai Shanghai Commercial - 100.00%

Business combinations

involving entities under

common control

Beijing Guoda Pharmacy Chain

Store Co. Ltd. Beijing Beijing Commercial - 100.00%

Business combinations

involving entities under

common control

Tianjin Guoda Pharmacy Chain

Store Co. Ltd. Tianjin Tianjin Commercial - 80.00%

Business combinations

involving entities under

common control

Guangxi Guoda Pharmacy

Consulting Chain Store Co.

Ltd. Nanning Nanning Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Pharmacy Guangdong Co.Ltd. Shenzhen Shenzhen Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Guoda Pharmacy

Guangxi Chain Co. Ltd. Liuzhou Liuzhou Commercial - 100.00%

Business combinations

involving entities under

common control

Zhejiang Guoda Pharmacy Co.Ltd. Hangzhou Hangzhou Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Yangzhou Dadesheng

Pharmacy Chain Store Co.Ltd. Yangzhou Yangzhou Commercial - 93.68%

Business combinations

involving entities under

common control

Ningxia Guoda Pharmacy Chain

Store Co. Ltd. Yinchuan Yinchuan Commercial - 70.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda Nanjing

Pharmacy Chain Store Co.Ltd. Nanjing Nanjing Commercial - 60.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Shandong Pharmacy Chain

Store Co. Ltd. Linyi Linyi Commercial - 55.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Shenyang Pharmacy Chain

Store Co. Ltd.(b) Shenyang Shenyang Commercial - 51.00%

Business combinations

involving entities under

common control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

196

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Fujian Guoda Pharmacy Chain

Store Co. Ltd.(c) Xiamen Xiamen Commercial - 100.00%

Business combinations

involving entities under

common control

Anhui Guoda Pharmacy Chain

Store Co. Ltd. Hefei Hefei Commercial - 60.00%

Business combinations

involving entities under

common control

Quanzhou Guoda Pharmacy Chain

Store Co. Ltd. Quanzhou Quanzhou Commercial - 51.00%

Business combinations

involving entities under

common control

Shanxi Guoda Wanmin Pharmacy

Chain Store Co. Ltd. Taiyuan Taiyuan Commercial - 85.00%

Business combinations

involving entities under

common control

Sinopharm Holding Hunan Guoda

Minshengtang Pharmacy

Chain Co. Ltd. Hengyang Hengyang Commercial - 51.00%

Business combinations

involving entities under

common control

Liyang Guoda People Pharmacy

Chain Store Co. Ltd. Liyang Liyang Commercial - 80.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda Henan

Pharmacy Chain Store Co.Ltd. Pingdingshan Pingdingshan Commercial - 60.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda Inner

Mengdia Pharmacy Chain

Store Co. Ltd. Hohhot Hohhot Commercial - 96.70%

Business combinations

involving entities under

common control

Sinopharm Hebei Lerentang

Pharmacy Chain Store Co.Ltd. Shijiazhuang Shijiazhuang Commercial - 60.00%

Business combinations

involving entities under

common control

Sinopharm Guoda Pharmacy

Jiangmen Chain Co. Ltd. Jiangmen Jiangmen Commercial - 65.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda Shanxi

Yiyuan Pharmacy Chain Store

Co. Ltd. Taiyuan Taiyuan Commercial - 80.00%

Business combinations

involving entities under

common control

Sinopharm Holding Xinjiang New &

Special Medicines Chain Store

Co. Ltd. Urumqi Urumqi Commercial - 51.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda ForMe

Medicines (Shanghai) Co. Ltd. Shanghai Shanghai Commercial - 97.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda ForMe

Pharmacy Chain Store Co.Ltd. (Formerly “Shanghai

ForMe YiXing Pharmacy ChainStore Co. Ltd.”) Shanghai Shanghai Commercial - 99.76%

Business combinations

involving entities under

common control

Beijing Golden Elephant Pharmacy

Medicine Chain Company

Limited Beijing Beijing Commercial - 53.13%

Business combinations

involving entities under

common control

Shanxi Tongfeng Pharmacy

Logistics Co. Ltd. Taiyuan Taiyuan Commercial - 100.00%

Business combinations

involving entities under

common control

Changzhi Guoda Wanmin

Pharmacy Chain Store Co.Ltd. Changzhi Changzhi Commercial - 51.00%

Business combinations

involving entities under

common control

Shanxi Guoda Wanmin Clinic

Management Chain Co. Ltd. Taiyuan Taiyuan Medical services - 100.00%

Business combinations

involving entities under

common control

Shanghai Guoda Shanghong

Qibao Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 51.00%

Business combinations

involving entities under

common control

Zhejiang Intlmedicine Pharmacy

Dongshan Co. Ltd. Hangzhou Hangzhou Commercial - 51.00%

Business combinations

involving entities under

common control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

197

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Shanghai Guoda Dongsheng

Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Guoda Drug Store

(Shenzhen) Chain Co. Ltd. Shenzhen Shenzhen Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Pharmacy Guangzhou Chain

Co. Ltd. Guangzhou Guangzhou Commercial - 100.00%

Business combinations

involving entities under

common control

Shanghai Guodong Chinese

Traditional Medicine Clinic Co.Ltd. Shanghai Shanghai Medical clinic - 100.00%

Business combinations

involving entities under

common control

Shanghai Guoda Dongxin

Pharmacy Chain Store Co.Ltd. Shanghai Shanghai Commercial - 100.00%

Business combinations

involving entities under

common control

Shanghai Yutaitang Chinese

Traditional Medicine Clinic Co.Ltd. Shanghai Shanghai Commercial - 100.00%

Business combinations

involving entities under

common control

Sanhe Liyang Golden Elephant

Pharmacy Co. Ltd. Langfang Langfang Commercial - 100.00%

Business combinations

involving entities under

common control

Xiaoyi Guoda Wanmin Baicaotang

Pharmacy Chain Store Co.Ltd. Xiaoyi Xiaoyi Commercial - 70.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda

Pharmacy Hulun Buir Co. Ltd. Hulun Buir Hulun Buir Commercial - 51.00%

Business combinations

involving entities under

common control

ForMe Xuhui Shanghai Shanghai Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Ulanqab Co.Ltd. Ulanqab Ulanqab Commercial - 60.00% Establishment

Taishan Sinopharm Holding Guoda

Qunkang Pharmacy Chain

Store Co. Ltd. Taishan Taishan Commercial - 70.00%

Business combinations

involving entities under

common control

Sinopharm Lerentang

Shijiazhuang Pharmaceutical Shijiazhuang Shijiazhuang Commercial - 100.00%

Business combinations

involving entities under

common control

Sinopharm Holding Guoda Drug

Store Manchuria Co. Ltd. Manchuria Manchuria Commercial - 51.00% Establishment

Sinopharm Guoda Drug Store

Anshan Chain Co. Ltd. Anshan Anshan Commercial - 51.00% Establishment

Sinopharm Holding Guoda

Yongsheng Drug Store（Shanghai） Co. Ltd. Shanghai Shanghai Commercial - 55.00% Establishment

Sinopharm Holding Foshan

Medical Consumables Supply

Chain Co. Ltd. Foshan Foshan Commercial - 70.00% Establishment

Sinopharm Holding Medical Supply

Chain Service (Guangxi) Co.

Ltd. Nanning Nanning Commercial - 30.06% Establishment

Shanghai Guoda Haohai

Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 51.00% Establishment

Sinopharm Holding Baiyi

Pharmacy Guangxi Co. Ltd. Nanning Nanning Commercial - 51.00% Establishment

Sinopharm Holding Hezhou Co.Ltd. Hezhou Hezhou Commercial - 100.00% Establishment

Sinopharm Holding National

Pharmacy Zhengzhou Chain

Co. Ltd. Zhengzhou Zhengzhou Commercial - 60.00% Establishment

Shanghai Guoda Ruijing Pharmacy

Co. Ltd. Shanghai Shanghai Commercial - 55.00% Establishment

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

198

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Fujian Guoda Pharmaceutical Co.

Ltd. Xiamen Xiamen Commercial - 100.00% Establishment

Sinopharm Holding Qinzhou Co.Ltd. Qinzhou Qinzhou Commercial - 100.00% Establishment

Sinopharm Holding Hechi Co. Ltd. Hechi Hechi Commercial - 100.00% Establishment

Sinopharm Holding Guangzhou

Huadu Co. Ltd. Guangzhou Guangzhou Commercial - 70.00%

Business combinations

involving entities not under

common control

Sinopharm Holding Guoda Shanxi

Pharmaceutical Co. Ltd.(d) Taiyuan Taiyuan Commercial - 100.00%

Business combinations

involving entities not under

common control

Taiyuan Tongxinli Guoda

Pharmacy Co. Ltd. Taiyuan Taiyuan Commercial - 100.00%

Business combinations

involving entities not under

common control

Sinopharm Holding Guoda

Bayannaoer Co. Ltd.(e) a Bayannaoer a Bayannaoer Commercial - 80.00% Establishment

Inner Mongolia Guoda

Pharmaceutical Co. Ltd.(f) Hohhot Hohhot Commercial - 100.00% Establishment

Sinopharm Holding Guoda

Yongxingtang Chain

(Chaoyang) Co. Ltd.(g) Chaoyang Chaoyang Commercial - 51.00% Establishment

Sinopharm Accord Medicial Supply

Chain (Shenzhen) Co. Ltd. Shenzhen Shenzhen Commercial 60.00% Establishment

Sinopharm Holding Guozhi

Pharmacy (Heyuan) Co. Ltd. Heyuan Heyuan Commercial 70.00% Establishment

Liaoning Guoda Pharmaceutical

Co. Ltd. Shenyang Shenyang Commercial 100.00% Establishment

Sinopharm Holding Guangyi

Health Management

(Zhanjiang) Co. Ltd. Zhanjiang Zhanjiang Commercial 60.00% Establishment

Guangzhou Medicine Guangzhou Guangzhou

Commercial

70.00%

Business combinations

involving entities not under

common control

Chaoyang Renai Chaoyang Chaoyang

Commercial

51.00%

Business combinations

involving entities not under

common control

Guoda Pu’er Puer Puer

Commercial

60.00%

Business combinations

involving entities not under

common control

Shanghai Dingqun(b) Shanghai Shanghai Medical services 100.00%

Business combinations

involving entities not under

common control

Sinopharm Holding Tianhe Jilin

Pharmaceutical Co. Ltd. Changchun Changchun Commercial 85.00%

Business combinations

involving entities not under

common control

Jilin Yihe Drug Store Co. Ltd. Changchun Changchun Commercial 100.00%

Business combinations

involving entities not under

common control

Jilin Donglong Medical Logistis

distribution Co. Ltd. Changchun Changchun Commercial 100.00%

Business combinations

involving entities not under

common control

Yushu Dinghe Medical Technology

Co. Ltd.

Changchun Changchun Commercial 51.00%

Business combinations

involving entities not under

common control

Jilin Pharmaceutical Co. Ltd. Changchun Changchun Commercial 100.00%

Business combinations

involving entities not under

common control

Yanji Xianghe Medical Co. Ltd. Yanji Yanji Commercial 51.00%

Business combinations

involving entities not under

common control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

199

IX. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

Subsidiaries Principal placeof business

Place of

incorporation Nature of business

Shareholding

Ways of acquisition

Direct Indirect

Jilin YiheDrug Store Co. Ltd. Jilin Jilin Commercial 100.00%

Business combinations

involving entities not under

common control

Shanghai Pudong New Area

Medicine & Medication Co.Ltd. (c)

Shanghai Shanghai Commercial 75.00%

Business combinations

involving entities under

common control

Shanghai Yanghetang

Pharmaceutical Chain

Management Co. Ltd.Shanghai Shanghai Commercial 100.00% Business combinations

involving entities under

common control

Shanghai Pudong Yanghetang

TCM Clinic Co. Ltd. Shanghai Shanghai Commercial 100.00%

Business combinations

involving entities under

common control

Shanghai Yanghetang Keyuan

TCM Clinic Co. Ltd. Shanghai Shanghai Medical clinic 100.00%

Business combinations

involving entities under

common control

Shanghai Yanghetang Jinyang

TCM Clinic Co. Ltd. Shanghai Shanghai Medical clinic 100.00%

Business combinations

involving entities under

common control

Guoda Pharmacy (Rizhao) Co.Ltd. (d) Rizhao Rizhao Commercial 100.00% Establishment

Liaoning Guoda Health Pharmacy

Co. Ltd. (e) Shenyang Shenyang Commercial 100.00% Establishment

Beijing Jinxiang Guoxing

pharmaceutical chain Co. Ltd.(f)

Beijing Beijing Commercial 100.00%

Business combinations

involving entities not under

common control

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

200

VII Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(1) The composition of the Group (Continued):

a. On 22 June 2020 the registered capital of Sinopharm Maoming was changed from RMB2000.00 thousand to RMB60000.00

thousand. After the change the Group subscribed RMB60000.00 thousand of registered capital. As at 30 June 2020

payment has been completed.b. On 7 Jaunary 2020 Guoda Pharmacy a subsidiary of the Groupacquired 97.47% shares of Shanghai Dingqun Enterprise

Management Consulting Co. Ltd. and 2.53% shares from the Group for RMB 934240.00 thousand to constitute a business

combination involving enterprises not under common control. Since then the Group included Shanghai Dingqun in the scope

of consolidation.As on 30 June RMB208100.00 thousand was paid.c. On 2 Jaunary 2020 the Group acquired 75% shares of Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.from

Sinopharm Group for RMB163115.00 thousand to constitute a business combination involving enterprises under common

control.The acquisition was completed on 2 January 2020. Since then the Group included Pudong New Area of Shanghai

Pharmaceutical Medicine Ltd.d. On 3 June 2020 the Group invested RMB1500.00 thousand to set up Guoda Pharmacy (Rizhao) Co. Ltd. As at 30 June

2020 payment has not been completed.

e. On 13 March 2020 the Group invested RMB5000.00 thousand to set up Liaoning Guoda Health Pharmacy Co. Ltd. As at 30

June 2020 RMB10000.00 was paid.f. On 2 April 2020 Beijing Jinxiang Medical Co. Ltd. a subsidiary of the Group acquired 100% shares of Beijing Jinxiang

Guoxing Medical Co. Ltd. from Beijing Jinxiang Fosun Medical Co. Ltd.for RMB10000.00 to constitute a business

combination not involving enterprises under common control. The acquisition was completed on 2 April 2020.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

201

VII. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(2) 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% 71974056.77 12158365.28 1889364292.70

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

202

VII. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(3) Key financial information of important non-wholly owned subsidiaries

Subsidiarie

30 June 2020 31 December 2019

Current assets Non-currentassets 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.

8725704967.

4769874765.

13495579732.

6934144873.

1205341207.

8139486080.

7896719966.

3785271722.

11681991688.

5341165404.

1133674087.

6474839491.

Subsidiaries

For the six months ended 30 June 2020 For the six months ended 30 June 2019

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. 8613020309.15 248037573.90 248037573.90 470794143.55 6478950669.19 185161890.49 185161890.49 520852280.31

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

203

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

204

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

Sinopharm Group

Zhijun(Shenzhen)

Pharmaceutical Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity

Shenzhen Zhijun

Pharmaceutical Trade Co.Ltd. Shenzhen Shenzhen Commercial 49.00% - Equity

Sinopharm Group

Zhijun(Shenzhen) Pingshan

Pharmaceutical Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity

Shyndec Pharma Shanghai Shanghai Business service industry 16.28% - Equity

Shanghai Beiyi Guoda

pharmaceutical Co. Ltd. Shanghai Shanghai Commercial - 26.00% Equity

Shanghai Liyi Pharmacy

Co. Ltd Shanghai Shanghai Commercial - 35.00% Equity

Sinopharm Jienuo Medical

Treatment Service

Guangdong Co. Ltd. Guangzhou Guangzhou Commercial - 29.00% Equity

Dongyuan accord

pharmaceutical chain Co.Ltd. Heyuan Heyuan Commercial - 45.00% Equity

Shanghai Renbei Pharmacy

Co. Ltd. Shanghai Shanghai Commercial - 30.00% Equity

Guangdong Jianhui

Construction Investment

Management Co.Ltd.(hereafter refered as

“Guangdong Jianhui”) Zhanjiang Zhanjiang Public-Private-Partnership - 10.00% 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:

The highest authority of Guangdong Jianhui is the shareholders' meeting and shareholders shall exercise their voting rights

in accordance with the proportion of subscribed capital contributions. At the same time The board of directors of Guangdong

Jianhui was established which is responsible to the shareholders' meeting consisting of five members among whom our

company appointed one director. The votes of the board of directors shall be one vote per person.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

205

VII. Interests in other entities (Continued)

2. Interests in associates (Continued)

30 June 2019/ For the six months ended

30 June 2020

1 January 2019/ For the six months ended

30 June 2019

Shyndec Pharma Shenzhen Zhijun

Pharmaceutical Trade

Co. Ltd.

Shyndec Pharma Shenzhen Zhijun

Pharmaceutical

Trade Co. Ltd.

Current assets 9757495160.60 1203833538.10 9676372530.32 1295003085.13

Non-current assets 8073121734.07 257066698.41 7962091231.68 273684959.60

Total assets 17830616894.67 1460900236.51 17638463762.00 1568688044.73

Current liabilities 6026005819.45 600005337.92 6491804082.54 734280688.66

Non-current liabilities 2327842012.07 7875368.42 1943465618.97 16900060.78

Total liabilities 8353847831.52 607880706.34 8435269701.51 751180749.44

Non-controlling

interests 1664566751.25 - 1615724166.23 -

Shareholders’ equity

attributable to

shareholders of the

parent 7812202311.90 853019530.17 7587469894.26 817507295.29

Portion of net assets

calculated by

shareholding ratio 1271831043.72 417979569.77 1235240098.79 400578574.68

Carrying value of equity

investment in joint

ventures 1271831043.72 417979569.77 1235240098.79 400578574.68

Operating revenue 6211855587.54 659730341.51 6255380073.90 1060889164.97

Net profit 427914866.04 35512234.88 525814658.05 119461432.13

Other comprehensive

income 750533.71 - - -

Total comprehensive

income 428665399.75 35512234.88 525814658.05 119461432.13

Dividends received

from joint ventures

this period 16714220.20 - 16896427.80 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

206

X. 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 2020:

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 Designated

Cash and bank

balances - 8239840227.80 - - 8239840227.80

Notes receivable - 402639901.74 - - 402639901.74

Accounts

receivable 13892695134.41 13892695134.41

Receivable

financing - 399889650.01 - 399889650.01

Other

receivables - 613031947.42 - - 613031947.42

Other

non-current

financial

assets 120972350.24 - - - 120972350.24

Other equity

instrument

investment - - - 116021000.00 116021000.00

120972350.24 23148207211.37 399889650.01 116021000.00 23785090211.62

Financial liabilities Financial liabilities at amortised cost

Short-term borrowings 3710647467.19

Notes payable 4691825761.98

Accounts payable 8077705277.54

Other payables 1794827639.44

Non-current liabilities due within 1 year 616449909.74

Lease liabilities 1216076164.93

20107532220.82

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

207

X. Risks related to financial instruments (Continued)

1. Classification of financial instruments (Continued)

31 December 2019:

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 Designated

Cash and bank

balances - 8885729250.47 - - 8885729250.47

Notes

receivable - 793301688.64 - - 793301688.64

Accounts

receivable - 10712983544.18 - - 10712983544.18

Receivable

financing - - 446342588.46 446342588.46

Other

receivables - 501958841.43 - - 501958841.43

Other

non-current

financial

assets 140000000.00 - - - 140000000.00

Other equity

instrument

investment - - - 116021000.00 116021000.00

140000000.00 20893973324.72 446342588.46 116021000.00 21596336913.18

Financial liabilities Financial liabilities at amortised cost

Short-term borrowings 1453018300.01

Notes payable 5555697557.53

Accounts payable 6703967826.54

Other payables 1822364637.62

Non-current liabilities due within 1 year 611917847.37

Lease liabilities 1208453029.51

17355419198.58

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

208

X. Risks related to financial instruments (Continued)

2. Transfer of financial assets

Transferred financial assets that are not derecognised in their entirety

As at 30 June 2020 the Group had endorsed commercial bills receivable (the "Endorsed Bills")

to certain of its suppliers in order to settle accounts payable due to such suppliers of RMB 0.00

(31 December 2019: RMB0.00). As at 30 June 2020 the carrying value thereof was RMB0.00

(31 December 2019: RMB64038348.12). In the opinion of the directors the Group has retained

the substantial risks and rewards which include default risks relating to such Endorsed Bills and

accordingly it continued to recognize the full carrying amounts of the Endorsed Bills and the

associated accounts payable settled. Subsequent to the Endorsement the Group did not retain

any rights 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 2020 the total carrying value of accounts payable settled by the Group was

RMB0.00 (31 December 2019: RMB64038348.12).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

209

X. Risks related to financial instruments (Continued)

2. Transfer of financial assets (Continued)

Transferred financial assets that are derecognised in their entirety in which continuing

involvement exists

As at 30 June 2020 the Group had endorsed commercial bills receivable (the "Endorsed Bills")

to certain of its suppliers in order to settle accounts payable due to such suppliers of

RMB505193307.96 (31 December 2019: RMB867007837.74). During the year the Group

operated a number of discounting business through several banks in China. At 30 June 2020

the carrying value thereof was RMB1800135252.62 (31 December 2019:

RMB1413116120.20). The derecognised bills had a maturity of 1 to 12 months at the end of

the reporting period. In accordance with the Law of Negotiable Instruments the holders of the

derecognised bills have a right of recourse against the Group if the accepting banks default (the

“Continuing Involvement”). In the opinion of the directors the Group has transferred

substantially all risks and rewards relating to the derecognised bills. Accordingly it has

derecognised the full carrying amounts of the derecognised bills and the associated accounts

payable. The maximum exposure to loss from the Group's Continuing Involvement in the

derecognised bills and the undiscounted cash flows to repurchase these derecognised bills is

equal to their carrying amounts. In the opinion of the directors the fair values of the Group’s

Continuing Involvement in the derecognised bills are not significant.

During 2020 the Group has not recognised any gain or loss on the date of transfer. No gain or

loss was recognised from derecognised financial assets in which the Continuing Involvement

exists both during the year or cumulatively.

During 2020 the Group has not recognised any gain or loss on the date of transfer of the

derecognised bills. No gains or losses were recognised from the Continuing Involvement both

during the year or cumulatively.

As part of its normal business the Group entered into an accounts receivable factoring without

recourse with banks and transferred certain accounts receivable to banks. In the opinion of the

directors the Group has transferred substantially all risks and rewards under the arrangement.

Accordingly it has derecognised the full carrying amounts of the associated accounts receivable.

The original carrying value of the derecognised accounts receivable transferred under the

Arrangement that have not been settled as at 30 June 2020 amounted to RMB1148298422.63

(31 December 2019: RMB1525687080.99).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

210

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments

The main risks arising from the Group's financial instruments are credit risk liquidity risk and

market risk (including currency risk and interest rate risk). The Group's principal financial

instruments comprise cash and bank balances equity investments debt investments borrowings

notes receivable accounts receivable notes payable and accounts payable. Risks that related to

these financial instruments and the Group's risk management strategies for reducing these risks

are as follows.The Company’s board of directors is responsible for planning and establishing the risk

management framework of the Group formulating risk management policies and related

guidelines of the Group and supervising the implementation of risk management measures. The

Group has already developed risk management policies to identify and analyse the risks faced by

the Group which have clearly identified specific risks covering a lot of aspects such as market

risk credit risk and liquidity risk management. The Group regularly assesses the market

environment and changes in the Group’s business activities to determine whether or not to update

the risk management policies and systems. The risk management of the Group shall be

conducted by the operation and management department according to the policy approved by the

Company’s management. The operation and management department identifies evaluates and

avoids related risks by means of close cooperation with other business units of the Group.To avoid the risk concentrating on a single industry a specific area or a specific counterparty the

Group spreads financial instruments risk with diversified investments and business portfolio.

Credit risk

The Group only trades with recognised and creditworthy third parties. It is the Group’s policy that

all customers who wish to trade on credit terms are subject to credit verification procedures. In

addition receivable balances are monitored on an ongoing basis and the Group’s exposure to

bad debts is not significant. For transactions that are not denominated in the functional currency

of the relevant operating unit the Group does not offer credit terms without the special approval of

the credit control department of the Group.Since cash and bank balances bank acceptance bills receivable and derivative financial

instruments are placed in the well-established banks with high credit ratings the credit risk of

these financial instruments is lower.The other financial instruments of the Group include cash and bank balances and other

receivables. The credit risk of these financial assets results from default of counterparty. The

maximum credit exposure equals to the book value of these instruments.The maximum exposure to credit risk of the Group at each balance sheet date is the total amount

charged to the customers less the amount of the impairment provision.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

211

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

Since the Group trades only with recognised and creditworthy third parties there is no

requirement for collateral. Credit risks are managed by customer/counterparty by geographical

region and by industry sector. There are no significant concentrations of credit risk within the

Group as the customer bases of the Group’s accounts receivable are widely dispersed in different

sectors and industries. The Group does not hold any collateral or other credit enhancements over

its accounts receivable balances

Determination of significant increase in credit risk

At each reporting date the Group determines whether the credit risk of a financial asset has

increased significantly since initial recognition. When determining whether the credit risk of a

financial asset has increased significantly since initial recognition the Group considers

reasonable and supportable information that is relevant and available without undue cost or effort.This includes both quantitative and qualitative information analysis based on the Group’s

historical experience and informed credit assessment and including forward-looking information.In order to determine the change of expected default risk during the financial instrument’s entire

lifetime the Group compares the default risk of financial instrument on the balance sheet date

and on the initial recognition date based on single financial instrument or financial instrument

portfolio with similar default risk.The Group determines that the credit risk of financial assets has significantly increased when one

or more quantitative or qualitative criteria are met:

(1) Quantitative criteria are mainly probability of default increasing more than a given % since

initial recognition;

(2) Qualitative criteria are mainly significant detrimental changes in the borrower’s operating or

financial conditions and early warning customer lists.

(3) The upper criterion is above 30 days of the borrowers default (including principal and

interests).

Definition of credit-impaired financial assets

In assessing whether a financial asset is credit-impaired the Group considers both quantitative

and qualitative information in line with internal credit risk management. The Group assesses

whether a financial asset is credit-impaired by considering the following factors:

(1) Significant financial difficulty of the borrower or issuer;

(2) A breach of contract such as a default or past due event;

(3) The lender(s) of the borrower for economic or contractual reasons relating to the borrower’s

financial difficulty having granted to the borrower concession(s) that the lender(s) would not

otherwise consider;

(4) It is becoming probable that the borrower will enter bankruptcy or other financial

reorganisation;

(5) The disappearance of an active market for security because of financial difficulties; and

(6) Financial assets purchased or sourced at large discounts indicating that credit losses have

occurred.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

212

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

The impairment of financial assets may not be necessarily due to a single disparate event. The

combined effects of multiple events may result in financial assets being credit-impaired.Parameter of the expected credit loss model

Based on whether there is a significant increase in credit risk and whether the financial assets are

credit-impaired the Group recognizes impairment allowance for different assets using either

12-month expected credit losses or lifetime expected credit losses. The measurement of the ECL

model is a function of the probability of default the loss given default (i.e. the magnitude of the

loss if there is a default) and the exposure at default. The Group establishes the model by

considering the quantitative analysis of historical statistics such as the counterparty rating the

guarantee method the collateral category the repayment method and also forward-looking

information.

Definitions:

(1) The probability of default is the probability that the debtor will not be able to meet its

repayment obligations within the following 12 months or throughout the remaining duration.To reflect the macro-economic environment conditions the Group’s assessment of the

probability of default is based on the calculation of the ECL model adjusted by

forward-looking information.

(2) The loss given default (i.e. the magnitude of the loss if there is a default) refers to the

Group's expectation of the extent of the loss of default risk exposure. The loss given

default varies depending on the type of counterparty the way and priority of recourse and

the type of collateral. The loss given default is the percentage of the risk exposure loss at

the time of default calculated on the basis of the next 12 months or the entire duration.

(3) The exposure at default refers to the amount that the Group should repay in the event of

default in the next 12 months or throughout the remaining period.

Both the assessment of a significant increase in credit risk and the calculation of the ECL involve

forward-looking information. The Group recognizes key economic ratios that influence credit risk

and the ECL by historical data analysis.

As at 30 June 2020 there was no evidence of a significant increase in credit risk (31 December

2019: nil).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

213

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk

The maturity analysis of the Group's financial liabilities as at the end of the reporting period based on the contractual undiscounted cash flows is as follows:

30 June 2020

Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total

Short-term borrowings 3712317703.91 - - - 3712317703.91

Notes payable 4691825761.98 - - - 4691825761.98

Accounts payable 8077705277.54 - - - 8077705277.54

Other payables 1794827639.44 - - - 1794827639.44

Non-current liabilities due within 1 year 704074304.59 - - - 704074304.59

Lease liabilities - 526811698.69 669425154.23 142072104.34 1338308957.26

18980750687.46 526811698.69 669425154.23 142072104.34 20319059644.72

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

214

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk (Continued)

The maturity analysis of the Group's financial liabilities as at the end of the reporting period based on the contractual undiscounted cash flows is as follows:

31 December 2019

Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total

Short-term borrowings 1473390678.14 - - - 1473390678.14

Notes payable 5555697557.53 - - - 5555697557.53

Accounts payable 6703967826.54 - - - 6703967826.54

Other payables 1822364637.62 - - - 1822364637.62

Non-current liabilities due within 1 year 692440439.57 - - - 692440439.57

Lease liabilities - 521527272.55 641028016.36 135810836.52 1298366125.43

16247861139.40 521527272.55 641028016.36 135810836.52 17546227264.83

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

215

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

216

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Market risk

Interest rate risk

The Group's interest rate risk arises from long-term borrowings from banks. Financial liabilities

issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities

issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the

relative proportions of its fixed rate and floating rate contracts depending on the prevailing market

conditions. As at 30 June 2020 the Group has no long-term interest-bearing borrowing (31

December 2019: if the floating interest rates of the long-term interest-bearing borrowings

increased or decreased by 50 base points while other factors did not change the Group’s net

income would increase or decrease by RMB40471.31).The Group’s finance department at its headquarters continuously monitors the interest rate

position of the Group. Increases in interest rates will increase the cost of new borrowings and the

interest expenses with respect to the Group’s outstanding floating rate borrowings and therefore

could have a material adverse effect on the Group’s financial position. The Group’s management

layer would make adjustments with reference to the latest market conditions which are interest

rate swap agreements to mitigate its exposure to interest rate risk. During 2020 and 2019 the

Group had not entered into any interest rate swap agreements.

For the year ended 30 June 2020 the Group has no long-term interest-bearing borrowing (31

December 2019: RMB31600000.00).

Currency risk

The Group’s major operational activities are carried out in Mainland China and a majority of the

transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from

the recognised assets and liabilities as well as future transactions (denominated in foreign

currencies primarily with respect to United States dollars and Hong Kong dollars). The Group’s

finance department at its headquarters is responsible for monitoring the amounts of assets and

liabilities and transactions denominated in foreign currencies aim at mitigating the potential

foreign exchange risk to a large extent.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

217

X. Risks related to financial instruments (Continued)

4. Capital management

The Company’s primary objective for managing capital is to ensure that it maintains a strong credit

rating and a healthy capital ratio in order to support its business bring shareholders investing returns

and benefit related parties. Management also aims to maintain a capital structure that ensures that

the lowest cost of capital is available to the entity.Management adjusts the capital structure through adjusting dividend payments to shareholders

returning capital to shareholders issuing new shares or selling assets to reduce debts.The Group’s total capital is the total shareholders’ equity in the balance sheet. The Group does not

adopt an asset ratio as a compulsory factor to govern capital investment.The gearing ratios of the Group as at the end of the reporting periods were as follows:

30 June 2020 31 December 2019

Gearing ratio 57.48% 54.23%

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

218

XI. Disclosure of fair value

1. Assets and liabilities at fair value

30 June 2020:

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

Continuous measurement of

fair value

Receivable financing - 399889650.01 - 399889650.01

Other investment in equity

instruments - 116021000.00 - 116021000.00

Other non-current financial

assets - - 120972350.24 120972350.24

- 515910650.01 120972350.24 636883000.25

31 December 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

Continuous measurement of

fair value

Receivable financing - 446342588.46 - 446342588.46

Other investment in equity

instruments - 116021000.00 - 116021000.00

Other non-current financial

assets - - 140000000.00 140000000.00

- 562363588.46 140000000.00 702363588.46

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

219

XI. Disclosure of fair value (Continued)

2. Estimation of fair value

Management has assessed that the fair values of cash and cash equivalents trade receivables receivable financing

other receivables short-term borrowings notes payable trade payables other payables non-current liabilities due

within 1 year as well as other short-term financial assets and liabilities. Due to the short remaining maturities of

these instruments the fair value approximated to the carrying amount.The financial controller of the Group takes the responsibility to formulate policies and procedures related to financial

instrument fair value measurements and directly reports to the CFO and the audit committee. On each balance

sheet date the financial department analyses the variation of the fair value of financial instruments and determines

the inputs applicable to valuation. The valuation is required to be approved by the CFO.The fair values of financial assets and liabilities are the amounts at which the instrument could be exchanged or

debts could be settled in an arm’s length transaction between knowledgeable and willing parties other than in a

forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.The fair values of short-term and long-term borrowings and long-term payables have been calculated by

discounting the expected future cash flows using market rates of return currently available for other financial

instruments with similar terms credit risk and remaining maturities. As at 30 June 2020 the Group’s own

non-performance risk for short-term and long-term borrowings was assessed to be insignificant.

For an equity instrument of listed entities the market price is used to determine fair value. For an equity instrument

of non-listed entities the recent equity transaction consideration or the market comparable company model is used

to estimate fair value. The Group believes that the estimated fair value by the valuation method is rational and also

the most sufficient value at the balance sheet date.

3. Unobservable inputs

Other non-current financial assets were the fund shares of Qirui Port Investment Center LP of Ningbo Meishan

Bonded Port subscribed by the Group. For the determination of the fair value of the investment after referring to the

net assets of Qirui Port Investment Center LP of Ningbo Meishan Bonded Port on 30 June 2020 which has

implemented the new financial instrument standards the result was calculated and determined according to the fund

share proportion owned by the company.

A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonable

fluctuation of the unobservable inputs.

4. Transfers between levels of fair value measurement

At 30 June 2020 and 31 December 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 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

220

XII. Related party relationships and transactions

1. Parent

Parent’s

name

Registered

address

Nature of business Share capital Proportion of

ownership

interest in the

Company

Proportion of

voting power in

the Company

Sinophar

m Group

Co. Ltd. Shanghai

Industrial investment holding trustee of

a pharmaceutical enterprise assets

reorganization distribution and retail of

medicines and pharmaceutical products

etc.

3120656191.0

0 56.06% 56.06%

The ultimate controlling party of the Company is CNPGC.

2. Subsidiaries

Refer to Note IX (1) for details of subsidiaries.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

221

XII. Related party relationships and transactions (Continued)

3. Associates

Refer to Note IX (3) for details of associates.

Company name Related party relationships

Shenzhen Main Luck Pharmaceutical Co. Ltd. Associate

Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co. Ltd. Associate

Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. Associate

Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co.Ltd. Associate

Shanghai Shyndec Pharmaceutical Co. Ltd. Associate

Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co. Ltd. Associate

Sinopharm Jienuo Medical Treatment Sevice Guangdong Co. Ltd. Associate

Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. Associate

Shanghai Liyi Pharmacy 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 Sub Marketing Center Co. Ltd. Controlled by Sinopharm Group

Shanghai Tongyu Information Technology Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Guorui Medicine Co. Ltd. Controlled by Sinopharm Group

Beijing Sinopharm Tianyuan Real Estate & Property Management Co. Ltd. Controlled by Sinopharm Group

China National Medicines Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Beijing Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Lianyungang Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Lerentang Hebei Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Xingsha Pharmaceuticals (Xiamen) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Chengdu Co. Ltd. Controlled by Sinopharm Group

Xinjiang Baitong Property Service Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hubei Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hunan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yangzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Huaian Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

222

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Hulun Buir Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Rizhao Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Fujian Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hainan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hainan Hongyi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Henan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Wenzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holdings Beijing Huahong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Nantong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shandong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanghai Likang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Sichuan Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Anhui Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Quanzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Anshun Co. Ltd. Controlled by Sinopharm Group

Handan Sinopharm Lerentang Pharmacy Chain Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Tianjin Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Hebei Medical Instrument Trade Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jilin Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xuzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Tangshan Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yunnan Co. Ltd. Controlled by Sinopharm Group

Shanghai Merro Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Zunyi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Gansu Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Southwest Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Dalian Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jiangxi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Guizhou Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

223

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Wuxi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Anhui Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Donghong Medical (Shanghai) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanghai Biomedicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Honghe Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Qinghai Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Zhangjiakou Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yancheng Co. Ltd. Controlled by Sinopharm Group

Yuxi Sinopharm Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shenyang Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Langfang Pharmaceutical Co. Ltd Controlled by Sinopharm Group

Sinopharm Group Shanxi Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Tianjin North Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Hengshui Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jiangsu Co. Ltd. Controlled by Sinopharm Group

Guoyao Lerentang Shijiazhuang Medical Management Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Baoding Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Chengde Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Xintai Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Changzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co. Ltd Controlled by Sinopharm Group

Sinopharm Lerentang Cangzhou Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Handan Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Chuxiong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co. Ltd Controlled by Sinopharm Group

Sinopharm Lerentang Qinhuangdao Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Shijiazhuang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Guanai Yuankang Pharmacy (Haikou) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Fuzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Heilongjiang Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

224

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Dalian Hecheng Co. Ltd. Controlled by Sinopharm Group

Sinopharm Guanai Jikun Pharmacy (Haikou) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jinzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co. Ltd Controlled by Sinopharm Group

Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Inner Mongolia Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Ningde Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Ulanqab Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Lunan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Ningxia Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Shanxi Medical Devices Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Dajiuzhou Medicine Co. Ltd Controlled by Sinopharm Group

Sinopharm Holding Pingdingshan Co. Ltd. Controlled by Sinopharm Group

Shanghai International Pharmaceutical Trade Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Tongliao Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xiamen Co. Ltd. Controlled by Sinopharm Group

Sinopharm Jiankun (Beijing) Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Liaoning Medical Equipment Co. Ltd. Controlled by Sinopharm Group

Sinopharm Huixinqinyuan (Beijing) Technology Development Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jinan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Yunnan Sinopharm Holding Dongchang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yangzhou Medical Treatment Equipment Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Anhui Huaning Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Putian Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Anshan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Bayannur Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Puer Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

225

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Linfen Ningle Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Dezhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hunan Pharmaceutical Development Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Changsha Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Runhe Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Taizhou Co. Ltd. Controlled by Sinopharm Group

China Medical Equipment Shandong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Mingdikang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Device (Guangdong) Medicial Technology Co. Ltd. Controlled by Sinopharm Group

Sinopharm (Dalian) Medicial Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yangzhou Biological Products Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Baotou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Changzhou Medical Logistics Center Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Biopharmaceutical (Tianjin) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Shanghai Medicine Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Changsha Gaoxin Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xinye (Hubei) Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Nanjing Wende Pharmaceutical Co.Ltd. Controlled by Sinopharm Group

Sinopharm Holding Nanping Newforce Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Zhejiang Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Anhui Medical Devices Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Jincheng Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Ordos Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Zhangzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Liaocheng Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jilin Province Medicial Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Chongqing Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Suzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Xinyu Co. Ltd. Controlled by Sinopharm Group

Sinopharm Hebei Medical Instrument Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

226

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Hubei Guoda Pharmacy Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Tonghua Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Wuhu Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hubei Hongyuan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Guangdong Medicine Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Guangxi Medical Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Guizhou Medical Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Guangdong Medical Examination Co. Ltd. Controlled by Sinopharm Group

Guoyao Lerentang Hebei Medical Device Supply Chain Management Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Medicine Logistic 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

Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited Controlled by Sinopharm Group

Sinopharm Group Medicine Logistic Co. Ltd. Guangzhou Branch Controlled by Sinopharm Group

Sinopharm Pharmaceutical Logistics Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Guizhou Yitong Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Hubei Bokang Co. Ltd. Controlled by Sinopharm Group

Sinopharm Guangdong Medicine Device Supply Chain Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Co. Ltd. Shanghai Management Consulting Branch Controlled by Sinopharm Group

China National Scientific Instruments & Materials I&E Shenzhen Co. Ltd. Controlled by Sinopharm Group

Guorun Medical Supply Chain Service (Shanghai) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Shenzhen Medicine Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Medical Instrument Hainan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Wuhan Hongshen Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Advanced (Shanghai) Medicine Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Linyi Medicial Device Co. Ltd. Controlled by Sinopharm Group

Liaoning Pilot Free Trade Zone China Medical Device Technology Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Jinzhong Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Linfen Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Med-Tech Co. Ltd. Controlled by Sinopharm Group

China National Medical Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shiyan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Lvliang Co. Ltd. Controlled by Sinopharm Group

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

227

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Holding Shanxi Zhidekang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding (Hubei) Base Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Fuzhou Medical Devices Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Luzhou Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Yongzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Prospect Dentech (Beijing) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Group Lingshang Hospital Management Services (Shanghai) Co.Ltd.

Controlled by Sinopharm Group

Sinopharm Logistics Beijing Co. Ltd. Controlled by Sinopharm Group

Sinopharm Zhuhai Medical Instrument Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Guizhou (Zunyi) Medical Equiment Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Tongren Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jiaozuo Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Chongqing Taimin Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Hunan Prov. Medical Equipment Co. Ltd. Controlled by Sinopharm Group

Sinopharm Baise Device Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Longyan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Qianxinan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Fuzhou Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Kunming Pharmacy Co. Ltd. Controlled by Sinopharm Group

Sinopharm Medical Instrument Guizhou Qiannan Co. Ltd. Controlled by Sinopharm Group

Sinopharm Lerentang Langfang Medicine Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Zhenjiang Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Guizhou Medicial Chain Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Shanxi Hejin Pharmaceutical Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding (Hubei) Hankou Pharmacy Co. Ltd. Controlled by Sinopharm Group

Sinopharm Medical Instrument (Foshan) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Deyang Co. Ltd. Controlled by Sinopharm Group

Sinopharm (Nanping) Medical Instrument Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Siping Co. Ltd. Controlled by Sinopharm Group

Shanghai Shengxin Pharmacy Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Pharmacy (Shanghai) Co. Ltd. Controlled by Sinopharm Group

Sinopharm Holding Jilin Chain Store Co. Ltd. Controlled by Sinopharm Group

Chengdu Rongsheng Pharmacy Co. Ltd. Controlled by CNPGC

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

228

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Sinopharm Wuhan Blood Products Co. Ltd. Controlled by CNPGC

Foshan Winteam Pharmaceutical Group Ltd. Controlled by CNPGC

Shantou Jinshi Powder Injection Co. Ltd. Controlled by CNPGC

Sinopharm Jingfang (Anhui) Pharmaceutical Co. Ltd. Controlled by CNPGC

Chengdu Institute of Biological Products Co.Ltd. Controlled by CNPGC

Sinopharm Group Yibin Pharmaceuticals Co. Ltd. Controlled by CNPGC

China National Pharmaceutical Foreign Trade Corporation Controlled by CNPGC

Sinopharm Tongjitang (Guizhou) Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Luya (Shandong) Pharmaceutical Co. Ltd. Controlled by CNPGC

China National Pharmaceutical Industry Co. Ltd. Controlled by CNPGC

Lanzhou Biotechnology Development Co. Ltd. Controlled by CNPGC

Sinopharm Xinjiang Pharmaceutical Co. Ltd. Controlled by CNPGC

Foshan Chengnan Fengliaoxing Medicial Hospital Co. Ltd. Controlled by CNPGC

Sinopharm Fengliaoxing Medical Hospital Co. Ltd. Controlled by CNPGC

Sinopharm Fengliaoxing (Foshan) Medicines Co. Ltd. Controlled by CNPGC

Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co. Ltd. Controlled by CNPGC

Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co. Ltd. Controlled by CNPGC

Sinopharm Yixin Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Zhonglian Pharmaceutical Group Co. Ltd. Controlled by CNPGC

Fujian Chentian Jinling Pharmaceutical Co. Ltd. Controlled by CNPGC

Beijing Huasheng Pharmaceutical Biotechnology Development Co. Ltd. Controlled by CNPGC

Sinopharm Group Rongsheng Pharmaceutical Co. Ltd. Controlled by CNPGC

Shanghai Shyndec Pharmaceutical Marketing Co. Ltd. Controlled by CNPGC

Sinopharm ChuanKang Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Guangdong Global Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Wuhan Zhonglian Siyao Pharmaceutical Co. Ltd. Controlled by CNPGC

Huayi Pharmaceutical Co. Ltd. Controlled by CNPGC

Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Shantou Jinshi Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Dezhong (Foshan) Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Holding Sanyi Medicine (Wuhu) Co. Ltd. Controlled by CNPGC

Sinopharm Beijing Huamiao Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Weiqida Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Industry Investment Co. Ltd. Controlled by CNPGC

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

229

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

China National of Traditional&Herbal Medicine Co. Ltd. Controlled by CNPGC

China Medicine Group Chongqing Medicine Design Institute Controlled by CNPGC

Sinopharm Sinopharm Group Finance Co. Ltd. Controlled by CNPGC

Shanghai Zeno Biotechnology Co. Ltd. Controlled by CNPGC

Shanghai Shangsheng Biological Products Co. Ltd. Controlled by CNPGC

Sinopharm Group Guizhou Blood Products Co. Ltd. Controlled by CNPGC

Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co.Ltd.

Controlled by CNPGC

Sinopharm Group Chengdu Xinlibang Biological Pharmaceutial Co. Ltd. Controlled by CNPGC

Qinhai Pulante Pharmaceutical Co. Ltd. Controlled by CNPGC

China Sinopharm International Corporation Controlled by CNPGC

Guangdong Yifang Pharmaceutical Co. Ltd. Controlled by CNPGC

Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co. Ltd. Controlled by CNPGC

Sinopharm Holding (China) Financing Lease Co. Ltd. Associate of Sinopharm Group

Sinopharm Health Online Co. Ltd. Associate of Sinopharm Group

Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co. Ltd. Associate of Sinopharm Group

Guoyaotang Pharmacy (Shanghai) Co. Ltd. Associate of Sinopharm Group

Shanghai Guoda Lingyun Pharmacy Co. Ltd. Associate of Sinopharm Group

Yichang Humanwell Pharmaceutical Co. Ltd. Associate of Sinopharm Group

Sinopharm Nutraceuticals (Shanghai) Co. Ltd. Associate of Sinopharm Group

Sinopharm Holding Chuangke Medicial Technology (Guangxi) Co. Ltd. Associate of Sinopharm Group

Sinopharm Holding Chuangke Yuanzhe Medicial Technology (Shanghai) Co.Ltd.

Associate of Sinopharm Group

Nanchang Sinopharm Holding Guoyaotang Pharmacy Co. Ltd. Associate of Sinopharm Group

SINO-TCM Shanghai Medicine & Medicinal Materials Co. Ltd. Associate of CNPGC

Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC

China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC

Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC

Chongqing Yaoyou Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm

Jiangxi Erye Medicine Marketing Co. Ltd. Subsidiary of Fosun Pharm

Jinzhou Avanc Pharmaceuticals Co. Ltd. Subsidiary of Fosun Pharm

Fosun Pharmaceutical Distribution Jiangsu Co. Ltd. Subsidiary of Fosun Pharm

Guilin Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

230

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Foshan Chancheng Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Foshan Chancheng Central Hospital Co. Ltd. Subsidiary of Fosun Pharm

Shenzhen Hengsheng Hospital Subsidiary of Fosun Pharm

Foshan Chanyixing Medicine Development Co Ltd. Subsidiary of Fosun Pharm

Foshan Chancheng District Shiwan Town Chengnan Community Health

Service Center

Subsidiary of Fosun Pharm

Jiangsu Wanbang Pharmacy Marketing Co. Ltd. Subsidiary of Fosun Pharm

Tibet Yaoyou Medicines Co.Ltd. Subsidiary of Fosun Pharm

Jinzhou Avanc Medicine Co. Ltd. Subsidiary of Fosun Pharm

Sichuan Hexin Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Glaxosmithkline Pharmaceuticals (Suzhou) Co. Ltd. Subsidiary of Fosun Pharm

Shanghai Transfusion Technology Co. Ltd. Subsidiary of Fosun Pharm

Shanghai Chaohui Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Hunan Dongting Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Jiangsu Huanghe Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Chengdu List Pharmaceutical Co.Ltd. Subsidiary of Fosun Pharm

Shenyang Hongqi Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Chongqing Haisiman Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm

Dalian Aleph Biomedical Co. Ltd. Subsidiary of Fosun Pharm

Chindex International Trading (Shanghai) Co. Ltd. Subsidiary of Fosun Pharm

Shenzhen Chindex Medical Beauty Clinic Subsidiary of Fosun Pharm

Shanghai Compound Technology Medical Devices Co. Ltd. Subsidiary of Fosun Pharm

Shenzhen Wanwei Medicine Trading Co. Ltd. Subsidiary of Main Luck

Pharmaceutical

Hangzhou Xihu Business Group Corporation Non-controlling interest of a subsidiary

Shenzhen Jiufeng Investment Co. Ltd. Non-controlling interest of a subsidiary

Shenyang Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary

Lerentang Investment Group Co. Ltd. Non-controlling interest of a subsidiary

Guangdong Jiyuantang Development Co. Ltd. Non-controlling interest of a subsidiary

Beijing Huafang Investment Co. Ltd. Non-controlling interest of a subsidiary

Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary

Gu Haiqun Non-controlling interest of a subsidiary

Puer Songmao Medicine Group Co. Ltd. Non-controlling interest of a subsidiary

Linyi Medical Group Co. Ltd. Non-controlling interest of a subsidiary

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

231

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name Related party relationships

Zhang Zhenfang Non-controlling interest of a subsidiary

Pingdingshan Pusheng Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary

Henan Wanxitang Pharmacy Co. Ltd. Non-controlling interest of a subsidiary

Taishan Xiangranhui Trade Co. Ltd. Controlled by non-controlling interest of

a subsidiary

Shaoguan Wujiang District Muyang Medicine Information Consultant Co. Ltd. Controlled by non-controlling interest of

a subsidiary

Nanjing Yuanguang Trading Co. Ltd. Controlled by non-controlling interest of

a subsidiary

Gu Jinhua Family member of the non-controlling

shareholder of a subsidiary

Shanghai Shyndec Pharmaceutical Co. Ltd. Associate

Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co. Ltd. Associate

Dongyuan Accord Pharmaceutical chain Co. Ltd. Associate

Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co. Ltd. Associate

Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. Associate

Shanghai Liyi Pharmacy Co.Ltd. Associate

Shenzhen Main Luck Pharmaceutical Co. Ltd. Associate

Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. Associate

Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co. Ltd. Associate

Sinopharm Jienuo Medical Treatment Sevice Guangdong Co. Ltd. Associate

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

232

XII. 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

2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June 2019

Sinopharm Holding Sub

Marketing Center Co. Ltd.Purchase of

goods 548051256.56

6580000000.00

NO 587767944.47

China National Medicines

Co. Ltd.

Purchase of

goods 309588426.46

NO 264335667.59

Sinopharm Holding Shanxi

Co. Ltd.

Purchase of

goods 302659086.81

NO 165125264.60

Sinopharm Holding Shanxi

Co. Ltd.

Purchase of

goods 168218597.08

NO 117012541.61

Sinopharm Lerentang

Medicine Co. Ltd.Purchase of

goods 144033107.71

NO 58690396.26

Sinopharm Group Co. Ltd. Purchase of

goods 101625946.62

NO 124135516.50

Jiangsu Wanbang Pharmacy

Marketing Co. Ltd. Purchase of

goods 97184029.57

NO 84007944.24

Sinopharm Holding

Shenyang Co. Ltd.Purchase of

goods 91252243.44

NO 63745181.47

Sinopharm Group Xinjiang

Special Drugs National

Pharmaceutical Co. Ltd.Purchase of

goods 76699225.00

NO 46674234.45

Fresenius Kabi Huarui

Pharmaceuticals Co. Ltd.Purchase of

goods 60511824.27

NO 54227928.18

Sinopharm Holding Hubei

Co. Ltd.

Purchase of

goods 58060607.87

NO 9071305.78

Lanzhou Biotechnology

Development Co. Ltd.

Purchase of

goods 48840600.00

NO 55500000.00

Sinopharm Holding

Yangzhou Co. Ltd.Purchase of

goods 38126655.70

NO 29671574.81

Sinopharm Holding Inner

Mongolia Co. Ltd.Purchase of

goods 35570487.58

NO 34523083.38

Sinopharm Holding Beijing

Tianxing Puxin Biological

Medical Co. Ltd.Purchase of

goods 34820929.08

NO 6891.48

Sinopharm Holding Xinjiang

Special Drugs Western

Pharmaceutical Co. Ltd.Purchase of

goods 34152784.08

NO 10193725.00

Sinopharm Holding Beijing

Co. Ltd.

Purchase of

goods 32520572.80

NO 20533829.97

Chongqing Yaoyou

Pharmaceutical Co. Ltd.Purchase of

goods 26949678.43

NO 27810842.74

Sinopharm Holding Lunan

Co. Ltd.

Purchase of

goods

26448807.82 NO 32561603.45

Sinopharm Holding Henan

Co. Ltd.

Purchase of

goods

22896338.50 NO 12814208.20

Sinopharm Holding Fujian

Co. Ltd.

Purchase

of goods

21032808.12 NO 16041870.46

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

233

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Shenzhen Main Luck

Pharmaceutical Co. Ltd.Purchase of

goods

16716318.29

6580000000.00

NO 19919483.19

Sinopharm Holding

Lerentang Hebei

Pharmaceutical Co. Ltd.Purchase of

goods

16213399.66 NO 15458862.78

Sinopharm Holding

Pingdingshan Co. Ltd.Purchase of

goods

15984508.75 NO 14429720.75

Sinopharm Holding Ningxia

Co. Ltd.

Purchase of

goods 12243904.08

NO 7213084.95

Sinopharm Group Zhijun

(Shenzhen)

Pharmaceutical Co. Ltd.Purchase of

goods 12126208.66

NO 20043121.07

Sinopharm Group Zhijun

(Shenzhen) Pingshan

Pharmaceutical Co. Ltd.Purchase of

goods 11851634.26

NO 14856080.60

Foshan Winteam

Pharmaceutical Group Ltd.Purchase of

goods 11624754.37

NO 20304885.66

Shenzhen Wanwei

Medicine Trading Co. Ltd.Purchase of

goods 11467474.49

NO 11854921.28

Sinopharm Holding Jilin

Co. Ltd.

Purchase of

goods 11181666.83

NO 13152.13

Sinopharm Holding

Changzhou Co. Ltd.

Purchase of

goods 11126503.85

NO 6705005.60

Tibet Yaoyou Medicines

Co.Ltd.

Purchase of

goods 10576537.72

NO 22100470.84

Sinopharm Holding Jiangsu

Co. Ltd.

Purchase of

goods 10137097.99

NO 12867682.99

Sinopharm Holding

Shandong Co. Ltd.Purchase of

goods 9870222.38

NO 7306060.58

Shanghai Shyndec

Pharmaceutical Co. Ltd.Purchase of

goods 9493936.28

NO 6577712.26

Sinopharm Holding Hunan

Co. Ltd.

Purchase of

goods 8970281.71

NO 5496202.17

Sinopharm Holding Wuxi

Co. Ltd.

Purchase of

goods 8550202.41

NO 2456981.90

Chengdu Rongsheng

Pharmacy Co. Ltd.Purchase of

goods 8518290.00

NO 13746664.10

Sinopharm Yixin

Pharmaceutical Co. Ltd.Purchase of

goods 8249563.42

NO 6463202.79

Sinopharm Holding Xiamen

Co. Ltd.

Purchase of

goods 8217598.96

NO 10273616.32

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

234

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

China National

Pharmaceutical Foreign

Trade Corporation

Purchase of

goods 8156658.48

6580000000.00

NO -

Yichang Humanwell

Pharmaceutical Co. Ltd.Purchase of

goods 7649748.62

6711635.43

Sinopharm Holding Shanxi

Zhongjian Medicial Device

Chain Co. Ltd.

Purchase of

goods

7522898.44

Sinopharm Lerentang

Shijiazhuang Medicine Co.Ltd.Purchase of

goods

7471038.17

8677802.26

Jinzhou Avanc

Pharmaceuticals Co. Ltd.Purchase of

goods

7185929.54 NO 28182818.68

Glaxosmithkline

Pharmaceuticals (Suzhou)

Co. Ltd.

Purchase of

goods

6570287.55

Jiangxi Erye Medicine

Marketing Co. Ltd.Purchase of

goods

6456636.49 NO 17959707.56

China Otsuka

Pharmaceutical Co. Ltd.Purchase of

goods

6256674.56 NO 6697508.52

Sinopharm Xingsha

Pharmaceuticals (Xiamen)

Co. Ltd.

Purchase of

goods

5872922.23

7161067.43

Sinopharm Holding

Tongliao Co. Ltd.Purchase of

goods

5810230.35 NO 2906482.17

Sinopharm Group Shanxi

Medical Devices Co. Ltd.Purchase of

goods

4980871.81 NO -

Sinopharm Shenzhen

Medicine Device Co. Ltd.Purchase of

goods

7522898.44 NO -

Sinopharm Holding Shanxi

Dajiuzhou Medicine Co.

Ltd.Purchase of

goods

4689458.43

Shanghai Zeno

Biotechnology Co. Ltd.

Purchase of

goods

4606542.22 NO -

Sinopharm Lerentang

Hebei Medical Instrument

Trade Co. Ltd.Purchase of

goods

4424779.00

Sinopharm Liaoning

Medical Equipment Co.Ltd.Purchase of

goods

4168839.16

2326076.00

Shanghai Chaohui

Pharmaceutical Co. Ltd.Purchase of

goods

3970884.24 NO 90783.71

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

235

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Shanghai International

Pharmaceutical Trade Co.Ltd.Purchase of

goods

3912114.41

6580000000.00

1967905.09

Sinopharm Holding Hubei

Guoda Pharmacy Co. Ltd.Purchase of

goods

3897527.05 NO -

Tibet Yaoyou Medicines

Co.Ltd.

Purchase of

goods

3749173.52 NO -

China National Scientific

Instruments & Materials

I&E Shenzhen Co. Ltd.

Purchase of

goods

3716814.16

Hutchison Whampoa

Sinopharm

Pharmaceuticals

(Shanghai) Co. Ltd.Purchase of

goods

3507017.31

3018099.42

Sinopharm Holding Jinan

Co. Ltd.

Purchase of

goods 3208390.44

3031490.28

Sinopharm Holding Jinzhou

Co. Ltd.

Purchase of

goods 3117332.78

2050823.42

Sinopharm Holding

Chongqing Co. Ltd.

Purchase of

goods 3106188.00

Sinopharm Holding Beijing

Huahong Co. Ltd.Purchase of

goods 2856735.70

2143025.16

Jinzhou Avanc Medicine

Co. Ltd.

Purchase of

goods 2780545.99

Sinopharm Fengliaoxing

(Foshan) Pharmaceutical

Drugs Co Ltd

Purchase of

goods 2745736.27

160792.59

Sinopharm Holding

Xinjiang Special Drugs

Karamay Pharmaceutical

Co Ltd

Purchase of

goods 2704084.84

1634592.42

Sinopharm Group Guorui

Medicine Co. Ltd.Purchase of

goods 2675445.41

3219200.90

Sinopharm Tongjitang

(Guizhou) Pharmaceutical

Co. Ltd.

Purchase of

goods 2616939.67

1947122.98

Sinopharm Holding

Heilongjiang Co. Ltd.Purchase of

goods 2533432.31

2603286.79

Fosun Pharmaceutical

Distribution Jiangsu Co.

Ltd.Purchase of

goods 2481349.10

1647132.50

Sinopharm Holding Anhui

Co. Ltd.

Purchase of

goods 2398623.06

558299.15

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

236

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Beijing Golden Elephant

Fosun Pharmaceutical Co.

Ltd.Purchase of

goods 2391565.82

6580000000.00

NO 1673805.68

Sinopharm Luya

(Shandong)

Pharmaceutical Co. Ltd.Purchase of

goods 2381688.57 NO -23551.03

Sinopharm Holding

Shanghai Likang

Pharmaceutical Co. Ltd.Purchase of

goods 2283462.26 NO 5703217.41

Sichuan Hexin

Pharmaceutical Co. Ltd.Purchase of

goods 2257987.38 NO 5339761.19

Sinopharm Holding

Zhihuiminsheng (Tianjin)

Pharmaceutical Co. Ltd.Purchase of

goods 2181662.15 NO 1374403.26

Sinopharm Holding Tianjin

Co. Ltd.

Purchase of

goods 2168770.41 NO 706163.71

Sinopharm Holding Fuzhou

Co. Ltd.

Purchase of

goods 2117865.83 NO 2676398.89

Sinopharm Medical

Instrument Hainan Co. Ltd. Purchase of

goods 2109734.51 NO -

Sinopharm Group

Rongsheng Pharmaceutical

Co. Ltd.

Purchase of

goods 1911884.91 NO 4431084.35

Hunan Dongting

Pharmaceutical Co. Ltd.Purchase of

goods 1885047.92 NO 1221714.73

Sinopharm Holding

Changsha Co. Ltd.

Purchase of

goods 1783867.44 NO 1166442.94

Sinopharm Lingyun

Biopharmaceutical

(Shanghai) Co. Ltd.Purchase of

goods 1717968.13 NO 45806688.15

Sinopharm Chuankang

Pharmaceutical Co. Ltd.Purchase of

goods 1699176.97 NO 4521905.90

Sinopharm Holding

Yancheng Co. Ltd.Purchase of

goods 1623042.70 NO 1174557.52

Sinopharm Holding Hulun

Buir Co. Ltd.

Purchase of

goods 1564568.11 NO 813318.59

China National

Pharmaceutical Industry

Co. Ltd.

Purchase of

goods 1509682.80 NO 1237603.17

Shanghai Shangsheng

Biological Products Co.

Ltd.Purchase of

goods 1506116.50 NO 2556796.11

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

237

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Suzhou Erye

Pharmaceutical Limited

Company

Purchase of

goods 1489545.90

6580000000.00

NO 4729210.71

Beijing Huasheng

Pharmaceutical

Biotechnology

Development Co Ltd

Purchase of

goods 1450504.18 NO 4541480.00

Sinopharm Holding Dalian

Co. Ltd.

Purchase of

goods 1450198.00 NO 708136.87

Sinopharm Jiankun

(Beijing) Medicine Co. Ltd. Purchase of

goods 1444828.32 NO -

Sinopharm Holding Anhui

Huaning Medicine Co. Ltd. Purchase of

goods 1434252.18 NO -

Sinopharm Holding Wuhan

Hongshen Medicine Co.Ltd.Purchase of

goods 1415929.21 NO -

Sinopharm Huixinqinyuan

(Beijing) Technology

Development Co. Ltd.

Purchase of

goods 1300658.82 NO -

Sinopharm Holding

Yangzhou Medical

Treatment Equipment Co.Ltd.Purchase of

goods 1209038.66 NO 434284.50

Sinopharm Holding

Donghong Medical

(Shanghai) Co. Ltd.Purchase of

goods

1124358.11

NO 2751225.88

Sinopharm Shantou Jinshi

Pharmaceutical Co. Ltd.Purchase of

goods

1077980.94 NO 257629.73

Yunnan Sinopharm Holding

Dongchang Medicine Co.

Ltd.Purchase of

goods

989799.95

Sinopharm (Dalian)

Medicial Device Co. Ltd.Purchase of

goods

928255.76 NO -

Sinopharm Zhonglian

Pharmaceutical Group Co.Ltd.Purchase of

goods

907465.81

NO 357980.82

Sinopharm Holding

Quanzhou Co. Ltd.Purchase of

goods

880856.56 NO 509096.37

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

238

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Sinopharm Holding

Chuangke Medicial

Technology (Guangxi) Co.Ltd.Purchase of

goods

796460.19

6580000000.00

Sinopharm Jingfang

(Anhui) Pharmaceutical

Purchase of

goods

766468.52 NO 537444.48

Shanghai Merro

Pharmaceutical Co. Ltd.Purchase of

goods 749178.23 NO 980340.63

Shanghai Transfusion

Technology Co. Ltd.Purchase of

goods 712212.39 NO 444825.76

Sinopharm Holding

Chuangke Yuanzhe

Medicial Technology

(Shanghai) Co. Ltd.Purchase of

goods 672566.40 NO -

Sinopharm Weiqida

Pharmaceutical Co. Ltd.Purchase of

goods 668790.52 NO 1396321.58

Sinopharm Holding

Bayannur Co. Ltd.

Purchase of

goods 667045.83 NO 120003.15

Sinopharm Advanced

(Shanghai) Medicine

Device Co. Ltd.

Purchase of

goods 649215.02 NO -

Sinopharm Holding Linyi

Medicial Device Co. Ltd.Purchase of

goods 633769.93 NO -

Sinopharm Holding

Xinjiang Special Drugs

Kashgar Pharmaceutical

Co. Ltd.

Purchase of

goods 627174.03 NO 904775.75

Sinopharm Hebei Medical

Instrument Co. Ltd.Purchase of

goods 607424.77 NO -

Sinopharm Holding Anshan

Co. Ltd.

Purchase of

goods 584206.98 NO -

Sinopharm Guangdong

Global Pharmaceutical Co.Ltd.Purchase of

goods 581499.90 NO 778815.71

Shanghai Modern Hasen

(Shangqiu) Pharmaceutical

Co. Ltd.

Purchase of

goods 506283.18 NO 853055.98

Chengdu Institute of

Biological Products Co.Ltd. Purchase of

goods 475738.80 NO 821518.40

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

239

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Sinopharm Holding Putian

Co. Ltd.

Purchase of

goods 466764.43

6580000000.00

NO 602182.39

Sinopharm Holding Puer

Co. Ltd.

Purchase of

goods 446396.77 NO -

Sinopharm Group Yibin

Pharmaceuticals Co. Ltd.Purchase of

goods 433524.84 NO 825452.16

Sinopharm Holding

Biopharmaceutical (Tianjin)

Co. Ltd.

Purchase of

goods 414430.28 NO 627257.64

Sinopharm Group

Southwest Medicine Co.Ltd.Purchase of

goods 372966.72 NO 942169.90

Sinopharm Xinjiang

Pharmaceutical Co. Ltd.Purchase of

goods 368206.57 NO 73542.96

Shenyang Hongqi

Pharmaceutical Co. Ltd.Purchase of

goods 359010.73 NO 1395942.72

Guilin Pharmaceutical Co.Ltd.Purchase of

goods 351228.30 NO 491705.68

Sinopharm Group

Shanghai Medicine Device

Co Ltd

Purchase of

goods 308584.08 NO -

Shantou Jinshi Powder

Injection Co. Ltd.Purchase of

goods 300803.34 NO 1575114.81

Sinopharm Holding

Shanghai Biomedicine Co.Ltd.Purchase of

goods 282209.74 NO 533969.68

Liaoning Pilot Free Trade

Zone China Medical Device

Technology Co. Ltd. Purchase ofgoods

260176.99

Chengdu List

Pharmaceutical Co.Ltd.Purchase of

goods

204849.56 NO -

Sinopharm Holding

Zhejiang Co. Ltd.Purchase of

goods

194238.02 NO 383036.87

Huayi Pharmaceutical Co.Ltd.Purchase of

goods

176144.72 NO -191940.52

Sinopharm Holding Linfen

Ningle Pharmaceutical Co.Ltd

Purchase of

goods

160565.02

Sinopharm Holding Hunan

Pharmaceutical

Development Co. Ltd.

Purchase of

goods 157222.35 NO 142539.15

Sinopharm Sichuan

Pharmaceutical Co. Ltd.Purchase of

goods 144648.00 NO -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

240

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Sinopharm Holding Yunnan

Co. Ltd.

Purchase of

goods 143973.45

6580000000.00

NO -

Fujian Chentian Jinling

Pharmaceutical Co. Ltd.Purchase of

goods 138669.72 NO 328557.99

Sinopharm Holding Special

Drugs Shihezi

Pharmaceutical Co. Ltd.Purchase of

goods 132136.11 NO -

Sinopharm Holding Baotou

Co. Ltd.

Purchase of

goods 126066.66

Sinopharm Holding

Nanping Newforce Co. Ltd. Purchase of

goods 122980.30 NO -

Sinopharm Holding Shanxi

Jinzhong Co. Ltd.Purchase of

goods 119470.72 NO -

Sinopharm Holding Hainan

Co. Ltd.

Purchase of

goods 111398.23 NO 556396.59

Sinopharm Holding Dezhou

Co. Ltd.

Purchase of

goods 108484.59 NO 148796.05

Sinopharm Group Linfen

Co. Ltd.

Purchase of

goods 107014.36 NO -

Sinopharm Holding Shanxi

Runhe Medicine Co. Ltd.Purchase of

goods 93171.55 NO -

Sinopharm Group

Med-Tech Co. Ltd.Purchase of

goods 92920.35 NO -

Shanghai Shyndec

Pharmaceutical Marketing

Co Ltd

Purchase of

goods 82302.92 NO -

Sinopharm Holding Taizhou

Co. Ltd.

Purchase of

goods 81224.26 NO 34438.88

Sinopharm Holding

Zhangzhou Co. Ltd.Purchase of

goods 73228.32 NO -

Sinopharm Holding Xinye

(Hubei) Medicine Co. Ltd.Purchase of

goods 56646.03 NO -

Sinopharm Dezhong

(Foshan) Pharmaceutical

Co. Ltd.

Purchase of

goods 53734.51 NO 95965.53

Sinopharm Device

(Guangdong) Medicial

Technology Co. Ltd.Purchase of

goods 52672.56 NO -

Sinopharm Holding

Yangzhou Biological

Products Co. Ltd.Purchase of

goods 49400.00 NO 166268.35

Sinopharm Holding Dalian

Hecheng Co. Ltd.Purchase of

goods 48749.02 NO 175327.42

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

241

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Sinopharm Holding Sanyi

Medicine (Wuhu) Co. Ltd.Purchase of

goods 46347.42

6580000000.00

NO 39203.47

Sinopharm Holding Shanxi

Mingdikang Medicine Co.Ltd.Purchase of

goods 42957.42 NO 14185.41

Sinopharm Holding Rizhao

Co. Ltd.

Purchase of

goods 34498.69 NO 19834.99

Sinopharm Holding

Changsha Gaoxin Medicine

Co. Ltd.

Purchase of

goods 32964.60 NO -

Sinopharm Holding Jiangxi

Co. Ltd.

Purchase of

goods 28244.60 NO -

China National Medical

Device Co. Ltd.

Purchase of

goods 26548.67 NO -

Sinopharm Wuhan Blood

Products Co. Ltd.Purchase of

goods 24800.00 NO 248000.00

Sinopharm Holding Hainan

Hongyi Co. Ltd.Purchase of

goods 17043.48 NO --

China Medical Equipment

Shandong Co. Ltd.Purchase of

goods 14427.65 NO 116013.65

Sinopharm Holding

Chengdu Co. Ltd.

Purchase of

goods 11307.62 NO -

Sinopharm Group Medicine

Logistic Co. Ltd.Purchase of

goods 11161.53 NO 10445.10

Sinopharm Holding Nanjing

Wende Pharmaceutical

Co.Ltd.

Purchase of

goods 9026.54 NO 19401.89

Sinopharm Holding Shiyan

Co. Ltd.

Purchase of

goods 2088.50 NO -

Sinopharm Holding

Ulanqab Co. Ltd.Purchase of

goods 2043.91 NO 17027.43

Sinopharm Holding Shanxi

Jincheng Co. Ltd.Purchase of

goods 171.81 NO 8408.74

Sinopharm Holding Shanxi

Lvliang Co. Ltd.Purchase of

goods - NO 4369021.12

Sinopharm Group (Tianjin)

Eastern Bokang

Pharmaceutical Co. Ltd.Purchase of

goods - NO 1115619.67

Sinopharm Fengliaoxing

(Foshan) Medicines Co.

Ltd.Purchase of

goods - NO 1047564.70

Sinopharm Holding Suzhou

Co. Ltd.

Purchase of

goods - NO 821818.78

Sinopharm Group Guizhou

Blood Products Co. Ltd.

Purchase of

goods - NO 536000.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

242

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

Sinopharm Holding Shanxi

Zhidekang Medicine Co.Ltd.Purchase of

goods -

6580000000.00

NO 189064.65

Sinopharm Holding (Hubei)

Base Pharmaceutical Co.

Ltd.Purchase of

goods - NO 152076.28

Jiangsu Huanghe

Pharmaceutical Co. Ltd.Purchase of

goods - NO 133968.48

Sinopharm Group Shanxi

Co. Ltd.

Purchase of

goods - NO 111864.77

Sinopharm Holding Fuzhou

Medical Devices Co. Ltd. Purchase of

goods - NO 40707.96

Sichuan Jiangyou Zhongba

Aconiti Science and

Technology Development

Co Ltd

Purchase of

goods - NO 29090.91

Guoyao Lerentang Hebei

Medical Device Supply

Chain Management Co.

Ltd

Purchase of

goods - NO 17131.04

Sinopharm Holding Luzhou

Pharmaceutical Co. Ltd. Purchase of

goods - NO 10137.93

Sinopharm Holding

Yongzhou Co. Ltd.Purchase of

goods - NO (49.36)

Sinopharm Prospect

Dentech (Beijing) Co. Ltd.

Purchase of

goods - NO (63.80)

Sinopharm Group Chengdu

Xinlibang Biological

Pharmaceutial FiCo. Ltd. Purchase of

goods - NO (9500.00)

Sinopharm Group

Lingshang Hospital

Management Services

(Shanghai) Co Ltd

Purchase of

goods - NO 1599454.53

Qinhai Pulante

Pharmaceutical Co. Ltd.Purchase of

goods - NO 258620.67

Sinopharm Holding

Lianyungang Co. Ltd.Purchase of

goods (478.47) NO 815620.38

The Fourth Pharmaceutical

Co. Ltd. of Zhonglian

Purchase of

goods (1875.00) NO 35353.29

Chongqing Haisiman

Pharmaceutical Co. Ltd.Purchase of

goods (3514.34) NO -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

243

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party Type of

transaction

For the six

months ended

30 June 2020

Approved trading quota whether the

transaction

limit is

exceeded

For the six months

ended 30 June

2019

SINO-TCM Shanghai

Medicine&Medicinal

Materials Co. Ltd.Purchase of

goods (10888.69)

6580000000.00

NO -

Sinopharm Holding

Changzhou Medical

Logistics Center Co. Ltd.Purchase of

goods (191787.19) NO 3824818.27

Sinopharm Holding Beijing

Kangchen

Bio-Pharmaceutical Co.

Purchase of

goods (550607.22) NO 1672471.40

Sinopharm Health Online

Co. Ltd.

Consulting

service fee 7008590.59

60000000.00

NO 6298404.97

Shanghai Beiyi Guoda

Pharmaceutical Co. Ltd.

Consulting

service fee 1492677.11 NO 1229716.93

Guorun Medical Supply

Chain Service (Shanghai)

Co. Ltd.

Consulting

service fee

12264.15 NO -

Shanghai Tongyu

Information Technology

Co. Ltd.

Information

system

access fee 187905.67 NO 142764.15

Pingdingshan Pusheng

Pharmaceutical Co. Ltd.Others

- NO 109458.10

Sinopharm Group Medicine

Logistic Co. Ltd.Storage and

transport 8264849.06 NO 7275965.45

Sinopharm Pharmaceutical

Logistics Co. Ltd.Storage and

transport

cost 93635.83 NO 54651.59

Sinopharm Logistics Beijing

Co. Ltd.

Storage and

transport 54060.78 NO -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

244

XII. 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 2020

For the six months

ended 30 June 2019

Sinopharm Group Sale of goods 110426213.05 126258230.79

Shanghai Beiyi Guoda

Pharmaceutical Co. Ltd.Sale of goods 61896587.65 55645701.04

Sinopharm Holding Hainan Co.Ltd.Sale of goods 60158578.46 48570645.00

Sinopharm Holding Fujian Co.Ltd.Sale of goods 51109674.50 1731691.96

Foshan Chancheng

Pharmaceutical Co. Ltd.Sale of goods 49079098.20 59004606.02

Sinopharm Lerentang Medicine

Co. Ltd.

Sale of goods 22566166.73 9207801.66

Sinopharm Holding Hubei Co.Ltd.Sale of goods 18913611.09 5366299.13

Sinopharm Holding Wenzhou

Co. Ltd.

Sale of goods 14794703.17 14754017.76

Sinopharm Holding Hainan

Hongyi Co. Ltd.Sale of goods 13367342.74 17357873.16

Sinopharm Holding Beijing Co.Ltd.Sale of goods 12909717.52 10806898.05

Beijing Golden Elephant Fosun

Pharmaceutical Co. Ltd.Sale of goods 10679779.77 11241528.41

Shenzhen Hengsheng Hospital Sale of goods 10629421.43 10482252.70

Sinopharm Lingyun

Biopharmaceutical (Shanghai)

Co. Ltd.

Sale of goods

10455648.05 12628299.53

Sinopharm Holding Henan Co.Ltd.Sale of goods 9642957.94 8408084.97

Sinopharm Holding Nantong

Co. Ltd.

Sale of goods 7861952.62 7649412.43

Foshan Chancheng Central

Hospital

Sale of goods 7665327.44 5456346.95

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

245

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Zhuhai Medical

Instrument Co. Ltd. Sale of goods 7446238.57 13939.15

Sinopharm Holding Shandong

Co. Ltd. Sale of goods 6925017.46 7547654.37

Sinopharm holdings Beijing

Huahong Co. Ltd. Sale of goods 5763714.05 13727246.49

Sinopharm Holding Sub

Marketing Center Co. Ltd. Sale of goods 5584808.87 12022683.32

Sinopharm Sichuan

Pharmaceutical Co. Ltd. Sale of goods 5574204.53 7749468.18

Sinopharm Group (Tianjin)

Eastern Bokang

Pharmaceutical Co. Ltd. Sale of goods 4803387.32 7346892.05

Foshan Chanyixing Medicine

Development Co Ltd. Sale of goods 3705867.85 3252324.63

Sinopharm Holding Shanghai

Likang Pharmaceutical Co. Ltd. Sale of goods 3680499.78 4382624.09

Sinopharm Holding Anhui Co.Ltd. Sale of goods 3490356.70 2691014.38

Shanghai Merro

Pharmaceutical Co. Ltd. Sale of goods 3312398.44 4094385.70

Sinopharm Holding Yangzhou

Co. Ltd. Sale of goods 3233686.62 4293371.83

Sinopharm Holding Shanxi Co.Ltd. Sale of goods 3053010.35 5246365.87

Chindex International Trading

(Shanghai) Co. Ltd. Sale of goods 3037167.60 -

China Sinopharm International

Corporation Sale of goods 2988690.22 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

246

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Shanxi Co.Ltd. Sale of goods 2812873.37 1927565.82

Sinopharm Holding Xinjiang

Special Drugs Western

Pharmaceutical Co. Ltd. Sale of goods 2349651.28 1828562.25

China National Medicines Co.

Ltd. Sale of goods 2178096.79 1932350.56

Sinopharm Group Southwest

Medicine Co. Ltd. Sale of goods 1891076.22 1580662.42

Sinopharm Holding Yunnan

Co. Ltd. Sale of goods 1875892.22 3291886.51

Sinopharm Holding Tianjin Co.Ltd. Sale of goods 1822107.93 2043046.86

Hutchison Whampoa

Sinopharm Pharmaceuticals

(Shanghai) Co. Ltd. Sale of goods 1724205.31 1283881.89

Sinopharm Lerentang Baoding

Hongkang Pharmaceutical

Chain Co. Ltd. Sale of goods 1716599.10 -

Sinopharm Holding Quanzhou

Co. Ltd. Sale of goods 1628615.99 -87055.63

Sinopharm Holding Jilin Co.Ltd. Sale of goods 1599917.79 1861781.97

Sinopharm Holding Hunan Co.Ltd. Sale of goods 1594378.72 1476158.08

Sinopharm Group Xinjiang

Special Drugs National

Pharmaceutical Co. Ltd. Sale of goods 1587426.88 3423834.39

Sinopharm Holding Dalian Co.Ltd. Sale of goods 1320364.57 1833913.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

247

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Xuzhou

Co. Ltd. Sale of goods 1271612.79 2496791.90

Sinopharm Holding Zunyi Co.Ltd. Sale of goods 1078617.62 146542.78

Handan Sinopharm Lerentang

Pharmacy Chain Co. Ltd. Sale of goods 1075458.43 -

Shanghai Guoda Lingyun

Pharmacy Co. Ltd. Sale of goods 786887.13 425714.65

Sinopharm Holding Donghong

Medical (Shanghai) Co. Ltd. Sale of goods 784084.53 225250.43

Sinopharm Holding Guizhou

Co. Ltd. Sale of goods 749381.57 158213.27

Sinopharm Holding Guizhou

(Zunyi) Medical Equiment Co.Ltd. Sale of goods 722382.88 -

Sinopharm Holding Anhui

Pharmaceutical Co. Ltd. Sale of goods 693361.90 1436139.10

Shanghai Liyi Pharmacy

Co.Ltd Sale of goods 690837.84 1432059.22

Sinopharm Holding Gansu Co.Ltd. Sale of goods 662808.94 505887.62

Sinopharm Lerentang

Tangshan Medicine Co. Ltd. Sale of goods 661960.55 -

Sinopharm Holding Anshun

Co. Ltd. Sale of goods 626960.18 21688.95

Sinopharm Holding Ningxia

Co. Ltd. Sale of goods 607397.50 772293.60

Sinopharm Holding Jiangsu

Co. Ltd. Sale of goods 578180.26 76013.68

Sinopharm Holding Yancheng

Co. Ltd. Sale of goods 556583.59 382851.04

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

248

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Wuxi Co.Ltd. Sale of goods 545114.34 484790.17

Sinopharm Holding Jiangxi Co.Ltd. Sale of goods 499633.43 123135.25

Sinopharm Lerentang Hebei

Medical Instrument Trade Co.Ltd. Sale of goods 492572.13 -

Sinopharm Holding Lerentang

Pharmaceutical Co. Ltd. Sale of goods 477391.38 -

Sinopharm Holding Wuhu Co.Ltd. Sale of goods 421019.02 419826.51

Sinopharm Holding Honghe

Co. Ltd. Sale of goods 411978.99 377186.11

Sinopharm Holding Tongren

Co. Ltd. Sale of goods 347824.70 197968.78

Sinopharm Group Zhijun

(Shenzhen) Pingshan

Pharmaceutical Co. Ltd. Sale of goods 297706.43 -

Sinopharm Holding Shanghai

Biomedicine Co. Ltd. Sale of goods 282212.28 113907.84

Sinopharm Holding Guizhou

Medical Device Co. Ltd. Sale of goods 255175.71 70073.94

Sinopharm Holding Qinghai

Co. Ltd. Sale of goods 253282.77 250674.21

Sinopharm Holding Chengdu

Co. Ltd. Sale of goods 238592.93 252754.20

Sinopharm Holding Tianjin

North Medicine Co. Ltd. Sale of goods 237608.84 363748.93

Dongyuan Accord

Pharmaceutical chain Co. Ltd. Sale of goods 230559.29 30868.27

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

249

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Yuxi Sinopharm Medicine Co.Ltd. Sale of goods 226147.04 956668.77

Foshan Chancheng District

Shiwan Town Chengnan

Community Health Service

Center Sale of goods 207388.60 -

Sinopharm Group Shanxi Co.Ltd. Sale of goods 190595.28 266895.84

Sinopharm Holding Jiaozuo

Co. Ltd. Sale of goods 183421.75 406784.27

Sinopharm Lerentang Xintai

Medicine Co. Ltd. Sale of goods 178966.16 -

Sinopharm Holding Chongqing

Taimin Pharmaceutical Co. Ltd. Sale of goods 174838.95 155771.69

Sinopharm Guangdong Medical

Examination Co. Ltd. Sale of goods 163965.18 73203.54

Sinopharm Holding Inner

Mongolia Co. Ltd. Sale of goods 159586.47 326327.82

Sinopharm Lerentang Hengshui

Medicine Co. Ltd. Sale of goods 158792.13 -

Sinopharm Hunan Prov.Medical Equipment Co. Ltd. Sale of goods 142300.88 -

Sinopharm Holding Hubei

Hongyuan Co. Ltd. Sale of goods 133587.47 132556.02

Sinopharm Holding Fuzhou

Co. Ltd. Sale of goods 131345.42 131753.26

Sinopharm Group Guangxi

Medical Device Co. Ltd. Sale of goods 113097.35 66013.12

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

250

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Changzhou

Co. Ltd. Sale of goods 110397.17 50185.70

Sinopharm Lerentang

Qinhuangdao Medicine Co.Ltd. Sale of goods 107256.67 -

Sinopharm Baise Device Co.Ltd. Sale of goods 102654.87 -

Sinopharm Holding Chongqing

Co. Ltd. Sale of goods 98396.45 138748.70

Shenzhen Chindex Medical

Beauty Clinic Sale of goods 97277.83 140970.86

Sinopharm Holding Shenyang

Co. Ltd. Sale of goods 92078.76 608363.96

Foshan Chengnan Fengliaoxing

Medicial Hospital Co. Ltd. Sale of goods 87322.13 -

Fresenius Kabi Huarui

Pharmaceuticals Co. Ltd. Sale of goods 84955.75 -

Sinopharm Lerentang

Zhangjiakou Medicine Co. Ltd. Sale of goods 84353.70 -

Sinopharm Holding Chuxiong

Co. Ltd. Sale of goods 83585.92 41712.99

Sinopharm Holding Nanjing

Wende Pharmaceutical Co.Ltd. Sale of goods 79064.60 -

Sinopharm Fengliaoxing

Medical Hospital Co. Ltd. Sale of goods 75159.98 101588.59

Sinopharm Holding Jinzhou

Co. Ltd. Sale of goods 72477.87 2509334.67

Sinopharm Holding Taizhou

Co. Ltd. Sale of goods 68810.53 141236.61

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

251

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Lerentang Chengde

Medicine Co. Ltd. Sale of goods 63193.63 -

Sinopharm Holding Longyan

Co. Ltd. Sale of goods 57138.07 44963.97

Guoyao Lerentang

Shijiazhuang Medical

Management Co. Ltd. Sale of goods 55743.09 2663.79

Sinopharm Lerentang Langfang

Pharmaceutical Co. Ltd. Sale of goods 55538.93 -

Sinopharm Holding Putian Co.Ltd. Sale of goods 53777.00 -33809.91

Sinopharm Holding Qianxinan

Co. Ltd. Sale of goods 47058.57 -

Sinopharm Lerentang

Healthcare Shijiazhuang

Pharmacy Co. Ltd. Sale of goods 41262.69 -

Sinopharm Holding Dalian

Hecheng Co. Ltd. Sale of goods 39122.93 743390.17

Sinopharm Holding Fuzhou

Co. Ltd. Sale of goods 36927.44 -

Sinopharm Guanai Yuankang

Pharmacy (Haikou) Co. Ltd. Sale of goods 34988.29 55763.79

Sinopharm Lerentang Baoding

Medicine Co. Ltd. Sale of goods 32999.89 -

Sinopharm Holding Ningde Co.Ltd. Sale of goods 30249.56 19818.67

Sinopharm Lerentang

Cangzhou Medicine Co. Ltd. Sale of goods 27143.36 -

Guangdong Yifang

Pharmaceutical Co. Ltd. Sale of goods 27079.65 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

252

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Kunming

Pharmacy Co. Ltd. Sale of goods 26664.78 -

Sinopharm Holding Beijing

Tianxing Puxin Biological

Medical Co. Ltd. Sale of goods 25300.89 -

Sinopharm Lerentang Handan

Medicine Co. Ltd. Sale of goods 18101.77 -

Sinopharm Lerentang

(Langfang) Pharmaceutical

Trade Co. Ltd. Sale of goods 18101.77 -

Sinopharm Guanai Jikun

Pharmacy (Haikou) Co. Ltd. Sale of goods 17838.67 -

Sinopharm Lerentang

Qinhuangdao Pharmaceutical

Trading Co. Ltd Sale of goods 16467.26 -

Sinopharm Medical Instrument

Guizhou Qiannan Co. Ltd. Sale of goods 16276.77 114833.43

Sinopharm Holding Changxing

Professional Pharmacy

(Haikou) Co. Ltd. Sale of goods 12993.87 -

Sinopharm Fengliaoxing

(Foshan) Medicines Co. Ltd. Sale of goods 12682.56 -

China National Scientific

Instruments & Materials I&E

Shenzhen Co. Ltd. Sale of goods 11412.30 6320.71

Sinopharm Lerentang

Shijiazhuang Medicine Co. Ltd. Sale of goods 8730.28 -

Sinopharm Group Guangdong

Medicine Device Co. Ltd. Sale of goods 8494.51 296825.53

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

253

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Zhuanye

Pharmacy (Dongfang) Co. Ltd. Sale of goods 8438.69 -

Sinopharm Lerentang Langfang

Medicine Co. Ltd. Sale of goods 7323.36 -

Shenzhen Main Luck

Pharmaceutical Co. Ltd. Sale of goods 6610.62 -

Sinopharm Holding Xiamen

Co. Ltd. Sale of goods 5889.38 -

Sinopharm Holding Zhenjiang

Co. Ltd. Sale of goods 5614.16 -

Sinopharm Holding Hongrun

Medical Business Service

(Shanghai) Co. Ltd. Sale of goods 5383.97 9884.46

Sinopharm Group Zhijun

(Shenzhen) Pharmaceutical

Co. Ltd. Sale of goods 3922.08 14949.89

Sinopharm Jienuo Medical

Treatment Sevice Guangdong

Co. Ltd. Sale of goods 2657.08 3590.16

Sinopharm Group Fengliaoxing

Medical Hospital (Foshan

Nanhai) Co. Ltd. Sale of goods 2261.97 6233.90

Sinopharm Medical Instrument

Hainan Co. Ltd. Sale of goods 1805.31 -

Sinopharm Holding Guizhou

Medicial Chain Co. Ltd. Sale of goods 1340.53 -

Sinopharm Holding Shanxi

Hejin Pharmaceutical Co. Ltd. Sale of goods 1187.61 -

Sinopharm Holding (Hubei)

Hankou Pharmacy Co. Ltd. Sale of goods 195295.22

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

254

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Nanchang Sinopharm Holding

Guoyaotang Pharmacy Co.Ltd. Sale of goods 173403.11

Shanghai Shengxin Pharmacy

Co. Ltd. Sale of goods 165688.80

Sinopharm Holding Changzhou

Medical Logistics Center Co.Ltd. Sale of goods 86668.69

Shanghai Compound

Technology Medical Devices

Co. Ltd. Sale of goods 59482.76

Sinopharm Medical Instrument

(Foshan) Co. Ltd. Sale of goods 58330.19

Sinopharm Holding Deyang

Co. Ltd. Sale of goods 36771.21

Sinopharm (Nanping) Medical

Instrument Co. Ltd. Sale of goods 19993.91

Sinopharm Holding Liaocheng

Co. Ltd. Sale of goods 15779.79

Sinopharm Holding Shanxi

Jincheng Co. Ltd. Sale of goods 11204.59

Sinopharm Holding Siping Co.Ltd. Sale of goods 9998.28

Sinopharm Holding Pharmacy

(Shanghai) Co. Ltd. Sale of goods 165688.80

Sinopharm Holding Ulanqab

Co. Ltd. Sale of goods 865.38

Sinopharm Group Fengliaoxing

Pharmacy (Foshan) Co. Ltd. Sale of goods (555.14) 47434.77

Sinopharm Holding Liaocheng

Co. Ltd. Sale of goods (16556.17) 38234.48

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

255

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Holding Shanxi

Jincheng Co. Ltd. Sale of goods (26464.91) 128687.69

Sinopharm Group Medicine

Logistic Co. Ltd. Transport and storage income 3176727.67 401376.93

China National Medicines Co.

Ltd. Transport and storage income 3116205.52 4430727.40

Sinopharm Group Zhijun

(Shenzhen) Pingshan

Pharmaceutical Co. Ltd. Transport and storage income 129797.90 123995.03

Sinopharm Holding Hubei Co.Ltd. Transport and storage income 81773.22

Sinopharm Group Southwest

Medicine Co. Ltd. Transport and storage income 82001.72

Shenzhen Zhijun

Pharmaceutical Trade Co. Ltd. Sublease income 285714.30

Sinopharm Holding Hunan

Weian Pharmacy Medicine

Chain Company Limited Sublease income 97240.50

Sinopharm Holding Sub

Marketing Center Co. Ltd. Consulting service income 1253573.97

Sinopharm Guangdong

Medicine Device Supply Chain

Co. Ltd. Consulting service income 82325.73

Sinopharm Huixinqinyuan

(Beijing) Technology

Development Co. Ltd. Consulting service income 17169.81

Sinopharm Holding Shanxi Co.Ltd. Consulting service income 1886.79 1688.12

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

256

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party Type of transaction For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

China National Scientific

Instruments & Materials

Imp/Exp Shenzhen Co. Ltd.

Consulting service income 2.64

Sinopharm Holding

Biopharmaceutical (Tianjin)

Co. Ltd.

Consulting service income 2792.45

Sinopharm Group Zhijun

(Shenzhen) Pharmaceutical

Co. Ltd.

Sublease income canteen

income

1250273.36 308882.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

257

XII. 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 2020

Income from leases

For the six months

ended 30 June 2019

Sinopharm Group Zhijun (Shenzhen)

Pharmaceutical Co. Ltd. Building 957142.86 957142.86

Shenzhen Zhijun Pharmaceutical Trade Co.Ltd. Building 285714.30 285714.30

Sinopharm Holding Hunan Weian Pharmacy

Medicine Chain Company Limited Building 97240.50 -

China National Medicines Co. Ltd. Building 52554.86 24000.00

(b) As the lessee

Type of assets

under leases

Expense from leases

For the six months

ended 30 June 2020

Expense from leases

For the six months

ended 30 June 2019

Sinopharm Group Medicine Logistic Co. Ltd. Equipment 3750000.00 3750000.00

Beijing Golden Elephant Fosun Pharmaceutical

Co. Ltd.

Building

5296226.44 6670660.92

Sinopharm Group Xinjiang Special Drugs

National Pharmaceutical Co. Ltd.

Building

3786173.34 2234982.50

Shenyang Pharmaceutical Co. Ltd. Building 3571428.61 253564.15

Sinopharm Group Medicine Logistic Co. Ltd. Building 3540000.00 3539999.98

Lerentang Investment Group Co. Ltd. Building 3224047.60 3354162.22

Sinopharm Holding (China) Financing Lease

Co. Ltd.

Building

2971727.14 -

Sinopharm Group Shanghai Co. Ltd. Building 2031905.96 3721698.57

Puer Songmao Medicine Group Co. Ltd. Building 1984761.90 -

Nanjing Yuanguang Trading Co. Ltd. Building 1923809.52 855468.84

Guangdong Jiyuantang Development Co.Ltd.

Building

978504.36 1088752.31

Shaoguan Wujiang District Muyang Medicine

Information Consultant Co. Ltd.

Building

478984.74 476713.98

Sinopharm Holding Rizhao Co. Ltd. Building 436785.87 -

Taishan Xiangranhui Trade Co. Ltd Building 389625.00 456054.17

Wang Yang Building 295868.56 262857.12

Sinopharm Holding Beijing Co. Ltd. Building 254761.90 260870.74

Beijing Sinopharm Tianyuan Real Estate &

Property Management Co. Ltd.

Building

181428.58 173068.27

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

258

Gu Jinhua Building 178800.00 207084.48

Hangzhou Xihu Business Group Corporation Building 146438.10 145986.38

China National Medicines Co. Ltd. Building 142857.14 145865.91

XII. 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 2020

Expense from leases

For the six months

ended 30 June 2019

Beijing Huafang Investment Co. Ltd. Building 120934.28 -

Gu Haiqun Building 99143.81 108277.61

Taishan Qunkang Pharmacy Co. Ltd. Building 70850.46 70864.95

Pingdingshan Pusheng Pharmaceutical Co. Ltd. Building - 2405696.37

Sinopharm Holding Yangzhou Co. Ltd. Building - 1902091.52

Hunan Minshengtang Investment Co. Ltd. Building - 1838716.70

Linyi Medical Group Co. Ltd. Building - 1482764.04

Sinopharm Holding Xinjiang Special Drugs

Karamay Pharmaceutical Co. Ltd.

Building

277303.54

Sinopharm Group Building - 267553.06

Zhang Zhenfang Building - 214062.49

Sinopharm Xinjiang Pharmaceutical Co. Ltd. Building 136369.86

Shenzhen Jiufeng Investment Co. Ltd. Building - 100414.19

Sinopharm Holding Xinjiang Special Drugs

Kashgar Pharmaceutical Co. Ltd.

Building

- 47990.56

Sinopharm Holding Fujian Co. Ltd. Building 6571.39

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

259

XII. 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 Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

26417461.60 17 June 2020 28 February 2021

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

25591174.86 30 March 2020 27 November 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

16708946.70 17 June 2020 28 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

15952617.65 29 June 2020 12 November 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

15738659.54 30 March 2020 22 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

15131629.81 29 June 2020 23 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

13321571.14 29 June 2020 26 November 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

13309316.95 17 June 2020 22 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

12854829.49 17 June 2020 21 October 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

11629891.56 17 June 2020 12 December 2020

Discount on bank

acceptance bill

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

260

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party Amount Inception Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

10000000.00 30 March 2020 21 October 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

9592776.79 30 March 2020 26 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

8734291.95 30 March 2020 13 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

8654531.04 29 June 2020 27 October 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

8468822.74 30 March 2020 29 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

8022833.90 17 June 2020 9 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

7117026.69 30 March 2020 25 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

7036652.31 29 June 2020 18 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

6926217.96 29 June 2020 13 October 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

6774892.18 30 March 2020 23 June 2020

Discount on bank

acceptance bill

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

261

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party Amount Inception Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

5889988.69 17 June 2020 22 November 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

5139400.00 30 March 2020 18 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

5003642.57 17 June 2020 30 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

4806949.14 29 June 2020 24 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

4149277.07 29 June 2020 27 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

4102050.12 29 June 2020 24 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

4004334.07 30 March 2020 23 July 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

3681621.74 29 June 2020 11 Janurary 2021

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

3661014.00 17 June 2020 25 November 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

2111763.51 17 June 2020 25 August 2020

Discount on bank

acceptance bill

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

262

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party Amount Inception Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

2000000.00 30 March 2020 23 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1688887.53 29 June 2020 31 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1627804.20 30 March 2020 24 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1500000.00 29 June 2020 16 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1358141.29 17 June 2020 27 February 2021

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1351727.52 17 June 2020 27 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1143823.59 17 June 2020 8 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1121058.50 30 March 2020 25 May 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1066265.70 17 June 2020 2 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1044379.17 29 June 2020 10 February 2021

Discount on bank

acceptance bill

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

263

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party Amount Inception Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

1028432.84 30 March 2020 9 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1000000.00 30 March 2020 16 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

1000000.00 29 June 2020 5 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

986008.29 29 June 2020 3 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

881404.96 17 June 2020 20 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

814589.70 17 June 2020 19 April 2021

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

727038.70 17 June 2020 16 March 2021

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

664534.24 17 June 2020 15 August 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

582366.26 30 March 2020 20 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

550000.00 30 March 2020 2 June 2020

Discount on bank

acceptance bill

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

264

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party Amount Inception Date Maturity Date Note

Borrow from

Sinopharm Group Finance Co. Ltd.

536958.37 17 June 2020 5 September 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd.

502245.15 30 March 2020 3 June 2020

Discount on bank

acceptance bill

Sinopharm Group Finance Co. Ltd. 44672135.78 13 April 2020 13 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 44259553.08 1 April 2020 1 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 34974084.92 21 February 2020 21 August 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 31431408.53 3 April 2020 3 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 29999958.16 24 March 2020 24 September 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 27106844.88 18 May 2020 18 August 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 27014561.77 6 May 2020 6 August 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 24252458.08 17 April 2020 17 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 22028919.08 2 April 2020 2 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 19997263.24 16 April 2020 16 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 15114633.48 15 April 2020 15 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 14015476.19 20 April 2020 20 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 12803183.37 22 April 2020 22 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 12482024.32 10 April 2020 10 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 10102812.23 24 April 2020 24 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 9825307.89 28 June 2020 27 September 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 8742714.65 27 April 2020 27 July 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 5020801.51 28 February 2020 27 August 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 3526328.80 22 June 2020 22 September 2020 Short-term borrowings

Sinopharm Group Finance Co. Ltd. 1197726.00 7 April 2020 7 July 2020 Short-term borrowings

Sinopharm Group 28000000.00 1 Janurary 2020 31 March 2020 Short-term borrowings

Sinopharm Group 28000000.00 1 February 2020 30 April 2020 Short-term borrowings

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

265

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(4) Remuneration for key management personnel

For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Remuneration for key management personnel 4375318.00 3843750.00

(5) Other related party transactions

Interest expense

Related party Types of transactions For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Group Finance Co. Ltd. Payment of notes discount

interest 3199207.88 2615234.17

Sinopharm Group Finance Co. Ltd. Payment of loan interest 1882094.57 473516.87

Sinopharm Group Finance Co. Ltd. Payment of related parties

loan interest 1311742.70 -

Sinopharm Group Payment of entrusted loan

interest 1035984.12 610933.32

CNGCC Payment of entrusted loan

interest 513884.11 641469.02

Sinopharm Holding (China) Financing Lease

Co. Ltd.

Payment of related parties

loan interest 44007.71 -

7986921.09 4341153.38

Interest income

Related party Types of transactions For the six months

ended 30 June 2020

For the six months

ended 30 June 2019

Sinopharm Group Finance Co. Ltd. Deposit interest 17036.24 145659.27

Sinopharm Group Zhijun (Suzhou)

Pharmaceutical Co. Ltd.

Entrusted loan interest

- 1669601.71

17036.24 1815260.98

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

266

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(5) Other related party transactions (Continued)

Factoring of accounts receivable without recourse

Interest expense of accounts receivable

factoring

For the six months ended 30

June 2020

For the six months ended

30 June 2019

Accounts receivable

factoring

Loss of

derecognition

Accounts receivable

factoring

Loss of

derecognition

Sinopharm Holding (China) Financing

Lease Co. Ltd. - - 54078188.75 1286666.17

- - 54078188.75 1286666.17

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

267

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties

(1). Accounts Receivable

Item Related Party

30 June 2020 31 December 2019

Gross carrying a

mount

Provision for

bad debt

Gross carrying

amount

Provision for bad

debt

Accounts receivable Sinopharm Group 50687300.30 - 46076517.29 -

Accounts receivable Foshan Chancheng Pharmaceutical

Co. Ltd. 37406979.38 238553.41 42596155.81 259530.69

Accounts receivable Shanghai Beiyi Guoda Pharmaceutical

Co. Ltd. 27194421.44 - 27194421.44 -

Accounts receivable Sinopharm Holding Fujian Co. Ltd. 24564532.00 -

Accounts receivable Sinopharm Holding Hainan Co. Ltd. 15128408.68 - 5916009.22 63.29

Accounts receivable Sinopharm Lerentang Medicine Co.

Ltd. 7901564.52 - 4077721.44 -

Accounts receivable Sinopharm Holding Beijing Co. Ltd. 7544342.76 - 2950624.87 -

Accounts receivable Sinopharm Lingyun Biopharmaceutical

(Shanghai) Co. Ltd. 5223272.52 - 3949661.07 -

Accounts receivable Sinopharm Holding Hainan Hongyi Co.

Ltd. 4838994.25 - 3464248.49 -

Accounts receivable Foshan Chancheng Central Hospital 4520477.41 26201.15 3691772.59 23216.99

Accounts receivable Shenzhen Hengsheng Hospital 4482610.82 - 3335198.92 -

Accounts receivable Beijing Golden Elephant Fosun

Pharmaceutical Co. Ltd. 4430694.10 - 8064119.84 -

Accounts receivable Sinopharm Health Online Co. Ltd. 4325680.30 - 3890200.52 -

Accounts receivable Sinopharm Holding Henan Co. Ltd. 3451786.98 - 1190109.52 -

Accounts receivable Sinopharm Holding Wenzhou Co. Ltd. 2934124.70 - 699613.80 -

Accounts receivable Sinopharm Group (Tianjin) Eastern

Bokang Pharmaceutical Co. Ltd. 2520942.53 - 1349144.61 -

Accounts receivable Foshan Chanyixing Medicine

Development Co Ltd. 2352690.27 9242.84 1983599.51 5790.64

Accounts receivable Sinopharm Holding Sub Marketing

Center Co. Ltd. 2261174.30 - 1849543.20 -

Accounts receivable Sinopharm holdings Beijing Huahong

co. Ltd. 1896720.00 - 2876094.02 -

Accounts receivable Sinopharm Holding Nantong Co. Ltd. 1827136.26 - 24611.76 -

Accounts receivable Sinopharm Holding Hubei Co. Ltd. 1823572.55 - 1560416.83 -

Accounts receivable Sinopharm Holding Shandong Co. Ltd. 1726340.63 - 533285.38 -

Accounts receivable Sinopharm Holding Shanghai Likang

Pharmaceutical Co. Ltd. 1549170.77 - 929255.98 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

268

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Accounts receivable

Sinopharm Sichuan

Pharmaceutical Co.Ltd. 1422404.64 - 1558385.72 -

Accounts receivable Sinopharm HoldingAnhui Co. Ltd. 1312067.59 - - -

Accounts receivable Sinopharm Holding

Shanxi Co. Ltd. 1125582.36 - 632719.72 -

Accounts receivable Hutchison Whampoa

Sinopharm

Pharmaceuticals

(Shanghai) Co. Ltd. 961580.00 - -

Accounts receivable Sinopharm Holding

Yangzhou Co. Ltd. 859981.76 - 841923.89 -

Accounts receivable Sinopharm Holding

Quanzhou Co. Ltd. 800883.30 - - -

Accounts receivable Sinopharm Lerentang

Baoding Hongkang

Pharmaceutical Chain

Co. Ltd. 767237.19 - - -

Accounts receivable Sinopharm Holding

Anshun Co. Ltd. 637442.10 - - -

Accounts receivable Handan Sinopharm

Lerentang Pharmacy

Chain Co. Ltd. 604490.32 - - -

Accounts receivable China National

Medicines Co. Ltd. 587735.54 - 985066.52 -

Accounts receivable Sinopharm Holding

Tianjin Co. Ltd. 576492.52 - 574943.68 -

Accounts receivable Sinopharm Lerentang

Hebei Medical

Instrument Trade Co.Ltd. 547178.80 - - -

Accounts receivable Sinopharm Holding

Jilin Co. Ltd. 523389.69 - 600090.20 -

Accounts receivable Sinopharm Holding

Xuzhou Co. Ltd. 467018.42 - 252603.52 -

Accounts receivable Sinopharm Lerentang

Tangshan Medicine

Co. Ltd. 448892.95 - 16848.00 -

Accounts receivable Sinopharm Holding

Yunnan Co. Ltd. 418872.44 - 298842.18 -

Accounts receivable Shanghai Merro

Pharmaceutical Co.Ltd. 409611.20 - 970572.81 -

Accounts receivable Sinopharm Holding

Zunyi Co. Ltd. 404579.55 - 3100.10 -

Accounts receivable Sinopharm Holding

Gansu Co. Ltd. 339402.09 - - -

Accounts receivable Sinopharm Holding

Hunan Co. Ltd. 336402.11 - 281427.54 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

269

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Accounts receivable Sinopharm Group

Zhijun (Shenzhen)

Pingshan

Pharmaceutical Co.Ltd. 324500.00 - - -

Accounts receivable Sinopharm Group

Southwest Medicine

Co. Ltd. 308638.68 - 341949.83 -

Accounts receivable Sinopharm Holding

Dalian Co. Ltd. 287256.14 - 266416.32 -

Accounts receivable Sinopharm Holding

Jiangxi Co. Ltd. 269965.78 - 38377.68 -

Accounts receivable Sinopharm Holding

Guizhou Co. Ltd. 259209.16 - - -

Accounts receivable Sinopharm Holding

Wuxi Co. Ltd. 215218.00 - - -

Accounts receivable Sinopharm Holding

Anhui Pharmaceutical

Co. Ltd. 207109.13 - 66754.36 -

Accounts receivable Sinopharm Holding

Donghong Medical

(Shanghai) Co. Ltd. 193225.72 - 2085296.20 -

Accounts receivable

Sinopharm Holding

Lerentang Hebei

Pharmaceutical Co.Ltd. 187224.65 - -

Accounts receivable Sinopharm Holding

Shanxi Co. Ltd. 143907.52 - 330160.15 -

Accounts receivable Sinopharm Holding

Chengdu Co. Ltd. 142358.41 - 50000.00 -

Accounts receivable Sinopharm Holding

Shanghai Biomedicine

Co. Ltd. 135299.91 - 128039.96 -

Accounts receivable China National

Pharmaceutical

Foreign Trade

Corporation 125181.18 - - -

Accounts receivable Sinopharm Holding

Honghe Co. Ltd. 122165.10 - 6097.20 -

Accounts receivable Foshan Chancheng

District Shiwan Town

Chengnan Community

Health Service Center 112972.02 211.04 - -

Accounts receivable Sinopharm Holding

Xinjiang Special Drugs

Western

Pharmaceutical Co.Ltd. 111826.80 - 887662.72 -

Accounts receivable Sinopharm Group

Xinjiang Special Drugs

National

Pharmaceutical Co. 98499.49 - 797577.51 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

270

Ltd.XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Accounts receivable Sinopharm Holding

Qinghai Co. Ltd. 95519.16 - 87956.16 -

Accounts receivable Sinopharm Lerentang

Zhangjiakou Medicine

Co. Ltd. 95312.04 - - -

Accounts receivable Sinopharm Holding

Yancheng Co. Ltd. 82020.80 - 1.00 -

Accounts receivable Yuxi Sinopharm

Medicine Co. Ltd. 73013.18 - 255546.14 -

Accounts receivable Sinopharm Holding

Shenyang Co. Ltd. 69974.00 - - -

Accounts receivable Sinopharm Lerentang

Langfang

Pharmaceutical Co.Ltd 62759.00 - - -

Accounts receivable Shanghai Liyi

Pharmacy Co.Ltd. 56880.00 - 58919.11 -

Accounts receivable Sinopharm Group

Shanxi Co. Ltd. 54181.60 - - -

Accounts receivable Sinopharm Holding

Tianjin North Medicine

Co. Ltd. 52832.86 - 51990.40 -

Accounts receivable Sinopharm Lerentang

Hengshui Medicine

Co. Ltd. 51470.83 - - -

Accounts receivable Sinopharm Holding

Jiangsu Co. Ltd. 47649.60 - 34997.40 -

Accounts receivable Guoyao Lerentang

Shijiazhuang Medical

Management Co. Ltd. 43294.67 - 1083.00 -

Accounts receivable Sinopharm Lerentang

Baoding Medicine

Co. Ltd. 37033.30 - - -

Accounts receivable Sinopharm Lerentang

Chengde Medicine

Co. Ltd. 32759.10 - 80596.16 -

Accounts receivable Sinopharm Holding

Beijing Tianxing Puxin

Biological Medical

Co. Ltd. 28590.00 - - -

Accounts receivable Sinopharm Lerentang

Xintai Medicine Co.Ltd.

24680.59 - - -

Accounts receivable Sinopharm Holding

Changzhou Co. Ltd. 24330.20 - 66932.96 -

Accounts receivable

Foshan Chengnan

Fengliaoxing Medicial

Hospital Co. Ltd.

23730.44 108.10 42637.80 27.04

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

271

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Accounts receivable Sinopharm Lerentang

(Langfang)

Pharmaceutical Trade

Co. Ltd 20455.00

Accounts receivable Sinopharm Lerentang

Cangzhou Medicine

Co. Ltd.

20455.00 - - -

Accounts receivable Sinopharm Lerentang

Handan Medicine Co.Ltd.

20455.00 - - -

Accounts receivable Sinopharm Holding

Chuxiong Co. Ltd. 19998.00 - - -

Accounts receivable Sinopharm Lerentang

Qinhuangdao

Pharmaceutical

Trading Co. Ltd

18608.00 - - -

Accounts receivable Sinopharm Lerentang

Qinhuangdao

Medicine Co. Ltd.

18052.35 - - -

Accounts receivable Sinopharm

Fengliaoxing Medical

Hospital Co. Ltd.

15919.62 156.25 4510.30 12.28

Accounts receivable Sinopharm Lerentang

Shijiazhuang

Medicine Co. Ltd.

9516.00 - - -

Accounts receivable Sinopharm Guanai

Yuankang Pharmacy

(Haikou) Co. Ltd.

9502.90 - - -

Accounts receivable Sinopharm Holding

Fuzhou Co. Ltd. 7624.00 - 63642.40

Accounts receivable Sinopharm Holding

Heilongjiang Co. Ltd. 7316.40 - - -

Accounts receivable Foshan Fengliaoxing

Pharmaceutical Co.Ltd.

6912.00 - 9504.00 -

Accounts receivable Sinopharm Holding

Changxing Zhuanye

Pharmacy (Haikou)

Co. Ltd.

6479.35 - - -

Accounts receivable Sinopharm Holding

Dalian Hecheng Co.

Ltd.

5034.65 - 156459.70

Accounts receivable Sinopharm Guanai

Jikun Pharmacy

(Haikou) Co. Ltd.

4916.20 - - -

Accounts receivable Sinopharm Group

Zhijun (Shenzhen)

Pharmaceutical Co.Ltd.

4431.95 - 1519.34 -

Accounts receivable Sinopharm Holding

Zhuanye Pharmacy

3424.40 - - -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

272

(Dongfang) Co. Ltd.

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Accounts receivable Sinopharm Holding

Jinzhou Co. Ltd. 3137.50

Accounts receivable Sinopharm Lerentang

Healthcare

Shijiazhuang

Pharmacy Co. Ltd

2604.30

- 5861.85 -

Accounts receivable Sinopharm Holding

Hongrun Medical

Business Service

(Shanghai) Co. Ltd.

1570.35

- 45418.42 -

Accounts receivable Sinopharm Holding

Inner Mongolia Co.Ltd.

4.00

- 135239.04 -

Accounts receivable Shanghai Guoda

Lingyun Pharmacy

Co. Ltd.

- 249856.34 -

Accounts receivable Sinopharm Holding

Ulanqab Co. Ltd. -

- 63874.55 -

Accounts receivable Sinopharm Holding

Ningde Co. Ltd. -

- 7596.00 -

Accounts receivable Guoyaotang

Pharmacy (Shanghai)

Co. Ltd.

- 2108.00 -

Accounts receivable Sinopharm Group

Fengliaoxing

Traditional Chinese

Medical Center

Foshan Nanhai Co.

Ltd.-

- 528.87 5.29

Note receivable Sinopharm Holding

Hainan Co. Ltd. 6891471.74

- 23731011.94 -

Note receivable Sinopharm Lerentang

Medicine Co. Ltd. 1273803.95

- 88613.95 -

Note receivable Sinopharm Holding

Xinjiang Special

Drugs Western

Pharmaceutical Co.Ltd.

600000.00

- 500000.00 -

Note receivable Sinopharm Holding

Hainan Hongyi Co.Ltd.

120500.00

- 1901425.37 -

Note receivable Sinopharm Holding

Henan Co. Ltd. -

- 1983858.81 -

Note receivable Sinopharm Holding

Shandong Co. Ltd. -

- 1754593.14 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

273

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Note receivable Sinopharm Holding

Nantong Co. Ltd. - - 1610000.00 -

Note receivable Sinopharm Holding

Guizhou Yitong

Medicine Co. Ltd.- - 1432800.00 -

Note receivable Sinopharm Group

Zhijun (Suzhou)

Pharmaceutical Co.Ltd.- - 973888.89 -

Note receivable Sinopharm Holding

Shanxi Co. Ltd. - - 617819.29 -

Note receivable Sinopharm Holding

Yunnan Co. Ltd. - - 192204.79 -

Note receivable Sinopharm Holding

Hubei Bokang Co.Ltd.- - 183485.50 -

Note receivable Sinopharm Holding

Yancheng Co. Ltd. - - 134240.00 -

Note receivable Sinopharm Group

Shanxi Co. Ltd. - - 114659.76 -

Other receivable

Sinopharm Group

Zhijun (Suzhou)

Pharmaceutical Co.Ltd.

46334222.24 46334222.24 45360333.35 45360333.35

Other receivable Sinopharm Holding

Fujian Co. Ltd. 2607831.09 - 2760764.82 -

Other receivable Sinopharm Group

Medicine Logistic Co.Ltd.

2315178.74 - 1737147.73 -

Other receivable Shanghai Shyndec

Pharmaceutical Co.Ltd.

983940.00 - 983940.00 -

Other receivable Sinopharm Group

Finance Co. Ltd. 916129.41 - -

Other receivable Sinopharm Group

Zhijun (Shenzhen)

Pharmaceutical Co.Ltd.

545442.69 600.00 222724.69 600.00

Other receivable Sinopharm Holding

Shanghai

Biomedicine Co. Ltd.

199600.00 - - -

Other receivable Sinopharm Holding

Rizhao Co. Ltd. 174974.28 - - -

Other receivable Sinopharm Group

Xinjiang Special

Drugs National

Pharmaceutical Co.Ltd.

100000.00 - 100000.00 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

274

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Other receivable Shenzhen Zhijun

Pharmaceutical Trade

Co. Ltd.

58109.60 - 25374.71 -

Other receivable Sinopharm Lerentang

Hebei Medical

Instrument Trade Co.Ltd.

48493.16 - 48493.16 -

Other receivable Sinopharm

Guangdong Medicine

Device Supply Chain

Co. Ltd.

37135.70 - 23072.42 -

Other receivable Sinopharm Group

Zhijun (Shenzhen)

Pingshan

Pharmaceutical Co.Ltd.

18500.00 - 18500.00 -

Other receivable Shanghai Tongyu

Information

Technology Co. Ltd.

18000.00 - - -

Other receivable Wuhan Zhonglian

Pharmaceutical

Group Co. Ltd.

5000.00 1000.00 5000.00 1000.00

Other receivable Sinopharm Group

Co. Ltd. 1980.00 - - -

Other receivable Sinopharm Holding

(China) Financing

Lease Co. Ltd.

200.00 - 28696.94 -

Other receivable China National

Scientific Instruments

& Materials Imp/Exp

Shenzhen Co. Ltd.

2.80 - - -

Other receivable Puer Songmao

Medicine Group Co.Ltd.- - 6886837.25 -

Other receivable Henan Wanxitang

Pharmacy Co. Ltd. - - 1043144.70 -

Other receivable Sinopharm Group

Co. Ltd - - 22000000.00 -

Other receivable Shanghai Dingqun

Business

Management

Consulting Co. Ltd.

- - 834914.61 -

Advances to suppliers

Chongqing Yaoyou

Pharmaceutical Co.Ltd.

578559.78 - 742517.22 -

Advances to suppliers Chengdu Rongsheng

Pharmacy Co. Ltd. 576000.00 - 555405.13 -

Advances to suppliers Sinopharm Holding

Sub Marketing Center

Co. Ltd.

235788.49 - 1204685.45 -

Advances to suppliers Sinopharm Wuhan

Blood Products Co.

104000.00 - - -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

275

Ltd.

Advances to suppliers Winteam

Pharmaceutical

Group Ltd.

39614.00 - 13972.00 -

Advances to suppliers Shanghai Tongyu

Information

Technology Co. Ltd.

23534.25 - 23534.25 -

Advances to suppliers Sinopharm Group

Co. Ltd. 21170.57 - 1486554.25 -

Advances to suppliers Suzhou Erye

Pharmaceutical

Limited Company

17446.19 - 33120.00 -

Advances to suppliers Jiangxi Erye Medicine

Marketing Co. Ltd. 17258.40 - 2786356.93 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

276

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Advances to suppliers Sinopharm Group

Guorui Medicine Co.Ltd.

15082.30 - 399607.48 -

Advances to suppliers Beijing Sinopharm

Tianyuan Real Estate

& Property

Management Co. Ltd.

14176.84 - 95250.00 -

Advances to suppliers Taishan Xiangranhui

Trade Co. Ltd 13150.03 - - -

Advances to suppliers SINO-TCM Shanghai

Medicine&Medicinal

Materials Co. Ltd.

10888.69 - - -

Advances to suppliers Shanghai Shyndec

Pharmaceutical Co.Ltd.

9270.26 - 758544.00 -

Advances to suppliers China National

Medicines Co. Ltd. 5180.66 - 204855.57 -

Advances to suppliers Sinopharm Holding

Beijing Co. Ltd. 2493.60 - 130000.00 -

Advances to suppliers Shenzhen Wanwei

Medicine Trading Co.Ltd.

987.00 - - -

Advances to suppliers Fresenius Kabi Huarui

Pharmaceuticals Co.Ltd.

582.19 - - -

Advances to suppliers Jinzhou Avanc

Pharmaceuticals Co.Ltd.

179.85 - 179.85 -

Advances to suppliers Fosun

Pharmaceutical

Distribution Jiangsu

Co. Ltd.

81.08 - 499667.68 -

Advances to suppliers Sinopharm Holding

Lianyungang Co. Ltd. 39.87 - - -

Advances to suppliers Sinopharm Holding

Lerentang

Pharmaceutical Co.Ltd.

0.01 - 0.01 -

Advances to suppliers Sinopharm Holding

Shanxi Co. Ltd. - - 3347236.65 -

Advances to suppliers Sinopharm Xingsha

Pharmaceuticals

(Xiamen) Co. Ltd.- - 599760.00 -

Advances to suppliers Shantou Jinshi

Powder Injection Co.Ltd.- - 137988.00 -

Advances to suppliers Anhui Jingfang

Pharmaceutical Co.Ltd.- - 102204.59 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

277

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item Related Party

30 June 2020 31 December 2019

Gross carrying

amount

Provision for bad debt Gross carrying

amount

Provision for bad debt

Advances to suppliers Chengdu Institute of

Biological Products

Co.Ltd.

- - 97469.40 -

Advances to suppliers Sinopharm Group

Yibin Pharmaceuticals

Co. Ltd.

- - 82486.00 -

Advances to suppliers China National

Pharmaceutical

Foreign Trade

Corporation

- - 72010.67

Advances to suppliers Sinopharm Tongjitang

(Guizhou)

Pharmaceutical Co.Ltd.- - 65770.21 -

Advances to suppliers Guilin Pharmaceutical

Co. Ltd. - - 54182.80 -

Advances to suppliers Sinopharm Group

Zhijun (Shenzhen)

Pharmaceutical Co.Ltd.- - 29781.49 -

Advances to suppliers Sinopharm Holding

Chengdu Co. Ltd. - - 13164.80 -

Advances to suppliers Xinjiang Baitong

Property Service Co.Ltd.- - 13135.98 -

Advances to suppliers Sinopharm Luya

(Shandong)

Pharmaceutical Co.Ltd.- - 11436.42 -

Advances to suppliers China National

Pharmaceutical

Industry Co. Ltd.- - 5520.00 -

Advances to suppliers Sinopharm Holding

Hubei Co. Ltd. - - 4671.54 -

Advances to suppliers Sinopharm Holding

Hunan Co. Ltd. - - 16961.90 -

Advances to suppliers Sinopharm Holding

Yangzhou Co. Ltd. - - 1315.99 -

Advances to suppliers Lanzhou

Biotechnology

Development Co. Ltd.

- - 600.00 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

278

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Sub MarketingCenter Co. Ltd. 120173481.84 66808452.93

Accounts Payable China National Medicines Co. Ltd. 91259317.25 40426038.46

Accounts Payable Sinopharm Holding Shanxi Co. Ltd. 81827552.20 8532354.18

Accounts Payable Sinopharm Holding Shanxi Co. Ltd. 72358215.68 12742.54

Accounts Payable Sinopharm Lerentang Medicine Co. Ltd. 53638149.13 1204.27

Accounts Payable Fresenius Kabi Huarui Pharmaceuticals

Co. Ltd. 40418319.99 31723737.14

Accounts Payable Sinopharm Group Xinjiang Special

Drugs National Pharmaceutical Co. Ltd. 34235776.60 17162389.74

Accounts Payable Sinopharm Group Co. Ltd. 28752089.94 25411711.12

Accounts Payable Jiangsu Wanbang Pharmacy Marketing

Co. Ltd. 26935147.94 24015667.60

Accounts Payable Lanzhou Biotechnology Development

Co. Ltd. 19920000.00 -

Accounts Payable Sinopharm Holding Shenyang Co. Ltd. 15155957.79 2256974.94

Accounts Payable Sinopharm Holding Xinjiang Special

Drugs Western Pharmaceutical Co. Ltd. 13009482.84 1978897.26

Accounts Payable Sinopharm Holding Lerentang

Pharmaceutical Co. Ltd. 9500296.77 8188784.90

Accounts Payable Sinopharm Holding Lunan Co. Ltd. 9070209.41 7585.91

Accounts Payable Sinopharm Holding Beijing Co. Ltd. 8389754.91 3396974.41

Accounts Payable Shenzhen Main Luck Pharmaceutical

Co. Ltd. 8115478.69 5284838.75

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

279

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Jiangsu Co. Ltd. 7648208.44 4857052.60

Accounts Payable Sinopharm Yixin Pharmaceutical Co.

Ltd. 7360539.90 998247.00

Accounts Payable Sinopharm Holding Inner Mongolia

Co. Ltd. 7248086.05 3997406.42

Accounts Payable Shenzhen Wanwei Medicine Trading

Co. Ltd. 6627502.69 2809863.53

Accounts Payable Sinopharm Holding Fujian Co. Ltd. 6604821.83 3434291.50

Accounts Payable Sinopharm Holding Jilin Co. Ltd. 6560213.29 -

Accounts Payable Sinopharm Holding Beijing Tianxing

Puxin Biological Medical Co. Ltd. 6140782.46 219881.16

Accounts Payable Sinopharm Holding Changzhou Co.

Ltd. 6037297.14 3201404.20

Accounts Payable Sinopharm Holding Yangzhou Co.

Ltd. 5344284.97 6453171.03

Accounts Payable Sinopharm Holding Beijing Kangchen

Bio-Pharmaceutical Co. Ltd. 5275605.75 5951699.55

Accounts Payable Chongqing Yaoyou Pharmaceutical

Co. Ltd. 5179846.98 6004066.40

Accounts Payable China National Pharmaceutical

Foreign Trade Corporation 5039213.65 929.12

Accounts Payable Sinopharm Lerentang Hebei Medical

Instrument Trade Co. Ltd. 4698272.86 3279216.81

Accounts Payable Sinopharm Holding Ningxia Co. Ltd. 4496631.93 2354374.21

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

280

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Group Shanxi Medical

Devices Co. Ltd. 4478870.01 -

Accounts Payable Sinopharm Group Zhijun (Shenzhen)

Pharmaceutical Co. Ltd. 4445057.53 4012401.17

Accounts Payable Sinopharm Lerentang Shijiazhuang

Medicine Co. Ltd. 4338448.66 3869656.10

Accounts Payable Jinzhou Avanc Pharmaceuticals Co.

Ltd. 3935385.63 3885599.28

Accounts Payable Yichang Humanwell Pharmaceutical

Co. Ltd. 3769048.91 1251702.41

Accounts Payable Sinopharm Holding Shandong Co.

Ltd. 3630609.49 207660.72

Accounts Payable Winteam Pharmaceutical Group Ltd. 3430150.14 4314603.53

Accounts Payable Tibet Yaoyou Medicines Co.Ltd. 3352711.65 998498.23

Accounts Payable Sinopharm Holding Hunan Co. Ltd. 3166359.50 -

Accounts Payable Sinopharm Group Zhijun (Shenzhen)

Pingshan Pharmaceutical Co. Ltd. 3034895.83 6618649.91

Accounts Payable China Otsuka Pharmaceutical Co.

Ltd. 2998332.95 2598401.27

Accounts Payable Sinopharm Holding Wuxi Co. Ltd. 2963866.16 1235593.35

Accounts Payable Sinopharm Holding Shanxi Dajiuzhou

Medicine Co. Ltd 2626554.95 865521.85

Accounts Payable Sinopharm Holding Pingdingshan Co.

Ltd. 2289459.59 5316788.30

Accounts Payable Foshan Fengliaoxing Pharmaceutical

Co. Ltd. 2179406.28 848927.64

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

281

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm holdings Beijing Huahong

co. Ltd. 2051128.31 360959.74

Accounts Payable Shanghai International

Pharmaceutical Trade Co. Ltd. 2024025.63 374634.80

Accounts Payable Jinzhou Avanc Medicine Co. Ltd. 1926323.20 214605.00

Accounts Payable Sinopharm Holding Tongliao Co. Ltd. 1912767.29 540694.90

Accounts Payable Sinopharm Holding Henan Co. Ltd. 1887636.26 2970565.27

Accounts Payable Hutchison Whampoa Sinopharm

Pharmaceuticals (Shanghai) Co. Ltd. 1783082.44 47388.50

Accounts Payable Sinopharm Holding Xiamen Co. Ltd. 1590974.03 1408085.10

Accounts Payable Fosun Pharmaceutical Distribution

Jiangsu Co. Ltd. 1511865.57 1021380.41

Accounts Payable Sinopharm Xingsha Pharmaceuticals(Xiamen) Co. Ltd. 1417221.04 2341325.08

Accounts Payable Shanghai Shyndec Pharmaceutical

Co. Ltd. 1410103.23 1059812.38

Accounts Payable Sinopharm Jiankun (Beijing) Medicine

Co. Ltd. 1312616.00 -

Accounts Payable Sinopharm Holding Jinzhou Co. Ltd. 1303291.11 822337.04

Accounts Payable Sinopharm Lingyun

Biopharmaceutical (Shanghai) Co.

Ltd.

1177501.55 606763.45

Accounts Payable Sichuan Hexin Pharmaceutical Co.

Ltd. 1162312.80 1801110.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

282

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Wuhan Zhonglian Pharmaceutical

Group Co. Ltd. 1099070.69 837017.83

Accounts Payable Sinopharm Tongjitang (Guizhou)

Pharmaceutical Co. Ltd. 1089870.50 379632.11

Accounts Payable Sinopharm Liaoning Medical

Equipment Co. Ltd. 1036603.40 119902.21

Accounts Payable Glaxosmithkline Pharmaceuticals

(Suzhou) Co. Ltd. 1007522.98 -

Accounts Payable China National Pharmaceutical

Industry Co. Ltd. 972820.58 736025.62

Accounts Payable Sinopharm Holding Hubei Co. Ltd. 952392.64 13844018.68

Accounts Payable Sinopharm Huixinqinyuan (Beijing)

Technology Development Co. Ltd. 838469.70 1565600.00

Accounts Payable Sinopharm Luya (Shandong)

Pharmaceutical Co. Ltd. 831008.11 52819.07

Accounts Payable Sinopharm Holding Jinan Co. Ltd. 747636.91 58217.26

Accounts Payable Sinopharm Holding Tianjin Co. Ltd. 733831.25 11995.37

Accounts Payable Sinopharm Holding Shanghai Likang

Pharmaceutical Co. Ltd. 698549.00 1209530.52

Accounts Payable Fujian Chentian Jinling

Pharmaceutical Co. Ltd. 664437.49 639663.90

Accounts Payable Shanghai Transfusion Technology

Co. Ltd. 653900.00 396613.27

Accounts Payable Jiangxi Erye Medicine Marketing Co.

Ltd. 650464.07 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

283

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Xinjiang Special

Drugs Karamay Pharmaceutical Co.

Ltd.

610282.01 502426.41

Accounts Payable Shanghai Chaohui Pharmaceutical

Co. Ltd. 607846.33 807366.46

Accounts Payable Yunnan Sinopharm Holding

Dongchang Medicine Co. Ltd. 600385.66 811039.59

Accounts Payable Beijing Huasheng Pharmaceutical

Biotechnology Development Co. Ltd. 594531.01 490398.43

Accounts Payable Beijing Golden Elephant Fosun

Pharmaceutical Co. Ltd. 530927.04 1400680.42

Accounts Payable Hunan Dongting Pharmaceutical Co.

Ltd. 513393.98 773553.49

Accounts Payable Sinopharm Holding Quanzhou Co.

Ltd. 456859.73 16017.25

Accounts Payable Sinopharm Holding Dalian Co. Ltd. 434085.00 137210.25

Accounts Payable Sinopharm Holding Hulun Buir Co.

Ltd. 433847.47 428928.43

Accounts Payable Sinopharm Holding Heilongjiang Co.

Ltd. 422789.44 711868.35

Accounts Payable Shanghai Merro Pharmaceutical Co.

Ltd. 416980.69 230437.61

Accounts Payable Sinopharm Group Rongsheng

Pharmaceutical Co. Ltd. 390363.18 464076.75

Accounts Payable Sinopharm Group Guorui Medicine

Co. Ltd. 373440.49 661397.90

Accounts Payable Suzhou Erye Pharmaceutical Limited

Company 373337.63 623042.39

Accounts Payable Sinopharm Holding Yangzhou Medical

Treatment Equipment Co. Ltd. 356618.41 131717.74

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

284

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Donghong

Medical (Shanghai) Co. Ltd. 356275.20 285869.50

Accounts Payable Sinopharm Holding Anhui Huaning

Medicine Co. Ltd. 337831.59 1190250.52

Accounts Payable Sinopharm Holding Fuzhou Co. Ltd. 324283.55 802182.13

Accounts Payable Jiangsu Huanghe Pharmaceutical Co.

Ltd. 308163.72 433724.83

Accounts Payable Shanghai Shyndec Pharmaceutical

Marketing Co. Ltd. 307680.02 106.76

Accounts Payable Sinopharm Group Yibin

Pharmaceuticals Co. Ltd. 294305.02 461848.50

Accounts Payable Chengdu Institute of Biological

Products Co.Ltd. 280800.00 561600.00

Accounts Payable Sinopharm Holding Shanxi Zhongjian

Medicial Device Chain Co. Ltd. 270000.00 -

Accounts Payable Sinopharm Holding Xinjiang Special

Drugs Kashgar Pharmaceutical Co.

Ltd.

267744.38 132493.57

Accounts Payable Sinopharm Chuankang

Pharmaceutical Co. Ltd. 266989.00 735729.88

Accounts Payable Sinopharm Holding Putian Co. Ltd. 258736.14 225437.84

Accounts Payable Sinopharm Holding Yancheng Co.

Ltd. 252410.93 688947.61

Accounts Payable Anhui Jingfang Pharmaceutical Co.

Ltd. 233647.54 334741.95

Accounts Payable Sinopharm Holding Anshan Co. Ltd. 224584.88 -

Accounts Payable Sinopharm Guangdong Global

Pharmaceutical Co. Ltd. 194347.33 260408.68

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

285

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Bayannur Co. Ltd. 182323.60 169509.70

Accounts Payable Chengdu List Pharmaceutical Co.Ltd. 178872.89 178872.89

Accounts Payable Sinopharm Xinjiang Pharmaceutical

Co. Ltd. 173958.05

Accounts Payable Shenyang Hongqi Pharmaceutical

Co. Ltd. 173609.93 315137.43

Accounts Payable Sinopharm Holding Puer Co. Ltd. 169639.63 179849.10

Accounts Payable Sinopharm Holding Zhihuiminsheng

(Tianjin) Pharmaceutical Co. Ltd. 160886.55 3905.63

Accounts Payable Sinopharm Holding Linfen Ningle

Pharmaceutical Co. Ltd. 160565.05 -

Accounts Payable Sinopharm Holding Dezhou Co. Ltd. 152860.74 172217.78

Accounts Payable The Fourth Pharmaceutical Co. Ltd.

of Zhonglian Group 152382.89 92151.64

Accounts Payable Sinopharm Sichuan Pharmaceutical

Co. Ltd. 144648.00 -

Accounts Payable Sinopharm Holding Hunan

Pharmaceutical Development Co.Ltd.

143986.57 118519.83

Accounts Payable Sinopharm Holding Changsha Co.

Ltd. 142713.26 288319.19

Accounts Payable Sinopharm Holding Special Drugs

Shihezi Pharmaceutical Co. Ltd. 132136.11 -

Accounts Payable Sinopharm Holding Shanxi Runhe

Medicine Co. Ltd. 103488.00 40320.27

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

286

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Shantou Jinshi Powder Injection Co.

Ltd. 103301.59 124450.25

Accounts Payable Chengdu Rongsheng Pharmacy Co.

Ltd. 100794.89 203000.02

Accounts Payable Sinopharm Holding Taizhou Co. Ltd. 99652.12 55482.20

Accounts Payable Huayi Pharmaceutical Co. Ltd. 99584.00 224064.00

Accounts Payable Shanghai Modern Hasen (Shangqiu)

Pharmaceutical Co. Ltd. 98458.48 31024.85

Accounts Payable China Medical Equipment Shandong

Co. Ltd. 95395.36 216198.77

Accounts Payable Sinopharm Holding Anhui Co. Ltd. 91994.14 149847.70

Accounts Payable Sinopharm Shantou Jinshi

Pharmaceutical Co. Ltd. 89985.94 224753.25

Accounts Payable Foshan Dezhong Pharmaceutical Co.

Ltd. 88973.76 73793.76

Accounts Payable Sinopharm Holding Sanyi Medicine

(Wuhu) Co. Ltd. 67461.47 33081.14

Accounts Payable Sinopharm Holding Shanxi

Mingdikang Medicine Co. Ltd. 63643.77 53102.76

Accounts Payable Changchun Changsheng Gene

Pharmaceutical Co. Ltd. 58955.67 3017.20

Accounts Payable Sinopharm Device (Guangdong)

Medicial Technology Co. Ltd. 56096.28 -

Accounts Payable Sinopharm (Dalian) Medicial Device

Co. Ltd. 52500.00 -

Accounts Payable Sinopharm Holding Yangzhou

Biological Products Co. Ltd. 48205.83 116246.55

Accounts Payable Sinopharm Holding Baotou Co. Ltd. 43485.00 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

287

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Rizhao Co. Ltd. 38983.53 6346.44

Accounts Payable Sinopharm Holding Ulanqab Co. Ltd. 36092.20 33782.58

Accounts Payable Sinopharm Holding Changzhou

Medical Logistics Center Co. Ltd. 34890.99 164471.27

Accounts Payable Sinopharm Beijing Huamiao

Pharmaceutical Co. Ltd. 29912.02 30959.02

Accounts Payable Sinopharm Holding Biopharmaceutical

(Tianjin) Co. Ltd. 23091.24 23207.23

Accounts Payable Sinopharm Holding Hainan Hongyi

Co. Ltd. 17043.48 -

Accounts Payable Sinopharm Group Shanghai Medicine

Device Co. Ltd. 16533.75 16533.75

Accounts Payable Guilin Pharmaceutical Co. Ltd. 14850.00 1210.43

Accounts Payable Sinopharm Holding Changsha Gaoxin

Medicine Co. Ltd. 14075.00 -

Accounts Payable Sinopharm Holding Xinye (Hubei)

Medicine Co. Ltd. 11277.40 -

Accounts Payable Sinopharm Holding Nanjing Wende

Pharmaceutical Co.Ltd. 10720.81 34781.93

Accounts Payable Sinopharm Holding Nanping Newforce

Co. Ltd. 9629.90 -

Accounts Payable Sinopharm Holding Zhejiang Co. Ltd. 6680.18 -

Accounts Payable Sinopharm Group Anhui Medical

Devices Co. Ltd. 5200.00 5200.00

Accounts Payable Sinopharm Holding Dalian Hecheng

Co. Ltd. 4002.10 16053.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

288

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Weiqida Pharmaceutical

Co. Ltd. 3937.70 -

Accounts Payable Sinopharm Nutraceuticals (Shanghai)

Co. Ltd. 3017.25 -

Accounts Payable Sinopharm Holding Shanxi Jincheng

Co. Ltd. 2233.33 2061.51

Accounts Payable Sinopharm Holding Ordos Co. Ltd. 1771.20 1771.20

Accounts Payable Sinopharm Holding Zhangzhou Co.

Ltd. 1172.00 1046.02

Accounts Payable Sinopharm Holding Huaideju

Pharmaceutical (Xiamen) Co. Ltd. 1113.85 1113.85

Accounts Payable Shenzhen Zhijun Pharmaceutical

Trade Co. Ltd. 534.20 534.20

Accounts Payable Sinopharm Fengliaoxing (Foshan)

Medicines Co. Ltd. 127.72 745.98

Accounts Payable Sinopharm Holding Liaocheng Co.

Ltd. 174.00 174.00

Accounts Payable Chongqing Haisiman Pharmaceutical

Co. Ltd. 56.82 56.82

Accounts Payable Sinopharm Holding Jilin Province

Medicial Device Co. Ltd. 47.50 -

Accounts Payable Sinopharm Holding Chongqing Co.

Ltd. 45.00 45.00

Accounts Payable Sinopharm Holding Suzhou Co. Ltd. 2.00 13663.79

Accounts Payable Sinopharm Holding Xinyu Co. Ltd. 0.01 0.01

Accounts Payable Sinopharm Industry Investment Co.

Ltd. - 11280.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

289

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Accounts Payable Sinopharm Holding Hubei Guoda

Pharmacy Co. Ltd. - 1494044.17

Accounts Payable Sinopharm Holding Jiangxi Co. Ltd. - 38021.19

Accounts Payable Sinopharm Holding Tonghua Co. Ltd. - 4200.00

Accounts Payable Sinopharm Holding Lianyungang Co.

Ltd. - 156220.00

Accounts Payable Sinopharm Hebei Medical Instrument

Co. Ltd. - 10540.97

Accounts Payable Sinopharm Wuhan Blood Products

Co. Ltd. - 11600.00

Accounts Payable Sinopharm Holding Shanghai

Biomedicine Co. Ltd. - 216027.00

Notes Payable Sinopharm Lerentang Medicine Co.Ltd. 117612512.46 81499250.53

Notes Payable Sinopharm Holding Sub Marketing

Center Co. Ltd. 90167246.78 147387064.99

Notes Payable Sinopharm Holding Shanxi Co. Ltd. 77969962.18 87095490.10

Notes Payable Sinopharm Holding Shenyang Co.Ltd. 45167585.57 94318580.73

Notes Payable Sinopharm Holding Shanxi Co. Ltd. 43646445.40 26203787.20

Notes Payable Jiangsu Wanbang Pharmacy

Marketing Co. Ltd. 41366897.85 31100216.05

Notes Payable Sinopharm Group Xinjiang Special

Drugs National Pharmaceutical Co.

Ltd.

38164453.57 41655560.15

Notes Payable China National Medicines Co. Ltd. 14606754.12 40093511.44

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

290

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Notes Payable Sinopharm Holding Inner Mongolia

Co. Ltd. 10864152.73 29902234.66

Notes Payable Sinopharm Holding Beijing Tianxing

Puxin Biological Medical Co. Ltd. 9797290.00 -

Notes Payable Sinopharm Holding Fujian Co. Ltd. 9645181.17 12080590.70

Notes Payable Sinopharm Holding Lerentang Hebei

Pharmaceutical Co. Ltd. 7374773.65 7047566.52

Notes Payable Lanzhou Biotechnology Development

Co. Ltd. 6240000.00 17940000.00

Notes Payable Sinopharm Holding Yangzhou Co.Ltd. 6000000.00 -

Notes Payable Chengdu Rongsheng Pharmacy Co.Ltd. 4634770.00 2025000.00

Notes Payable Sinopharm Holding Xiamen Co. Ltd. 4073195.26 5780970.63

Notes Payable Sinopharm Holding Xinjiang Special

Drugs Western Pharmaceutical Co.

Ltd.

4032159.76 -

Notes Payable Sinopharm Holding Hunan Co. Ltd. 3286838.68 3406062.97

Notes Payable Sinopharm Lerentang Shijiazhuang

Medicine Co. Ltd. 2681873.88 5598131.95

Notes Payable China Otsuka Pharmaceutical Co.Ltd. 2394901.84 -

Notes Payable Shenzhen Wanwei Medicine Trading

Co. Ltd. 2307798.00 5148789.36

Notes Payable Sinopharm Holding Ningxia Co. Ltd. 2302373.05 1500000.00

Notes Payable Yichang Humanwell Pharmaceutical

Co. Ltd. 1967332.00 1313384.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

291

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Notes Payable Sinopharm Holding Shanxi Dajiuzhou

Medicine Co. Ltd 1961748.67 -

Notes Payable Sinopharm Group Shanxi Medical

Devices Co. Ltd. 1588743.20 -

Notes Payable Sinopharm Holding Jinan Co. Ltd. 1465064.58 950000.00

Notes Payable Sinopharm Holding Jinzhou Co. Ltd. 1407213.30 2315289.23

Notes Payable Sinopharm Holding Yancheng Co.Ltd. 1142284.73 544347.21

Notes Payable Sinopharm Holding Tianjin Co. Ltd. 1141081.57 -

Notes Payable Sinopharm Holding Zhihuiminsheng

(Tianjin) Pharmaceutical Co. Ltd. 1108686.91 -

Notes Payable Shenzhen Main Luck Pharmaceutical

Co. Ltd. 1031461.20 2360877.27

Notes Payable Sinopharm Xingsha Pharmaceuticals

(Xiamen) Co. Ltd. 966331.82 678672.16

Notes Payable Sinopharm Holding Dalian Co. Ltd. 897426.65 991971.09

Notes Payable Sinopharm Lerentang Hebei Medical

Instrument Trade Co. Ltd. 774193.10 267443.65

Notes Payable Chongqing Yaoyou Pharmaceutical

Co. Ltd. 676214.00 4371561.40

Notes Payable Sinopharm Holding Quanzhou Co.Ltd. 635529.55 45117.50

Notes Payable Sinopharm Huixinqinyuan (Beijing)

Technology Development Co. Ltd. 631274.79 1033600.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

292

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Notes Payable Sinopharm Liaoning Medical

Equipment Co. Ltd. 523200.00 -

Notes Payable Sinopharm Guangdong Global

Pharmaceutical Co. Ltd. 383537.18 428786.24

Notes Payable Jinzhou Avanc Medicine Co. Ltd. 372735.00 -

Notes Payable Sinopharm Fengliaoxing (Foshan)

Pharmaceutical Drugs Co. Ltd. 372559.00 118972.30

Notes Payable Foshan Winteam Pharmaceutical

Group Ltd. 259427.66 -

Notes Payable Shanghai Shyndec Pharmaceutical

Co. Ltd. 219996.00 -

Notes Payable Sinopharm Jiankun (Beijing) Medicine

Co. Ltd. 202320.00 -

Notes Payable Shanghai Transfusion Technology

Co. Ltd. 201200.00 311860.00

Notes Payable Sinopharm Group Rongsheng

Pharmaceutical Co. Ltd. 172225.00 169221.60

Notes Payable Sinopharm Holding Changsha Co.Ltd. 155134.80 171641.40

Notes Payable Sinopharm Holding Yangzhou Medical

Treatment Equipment Co. Ltd. 152350.02 -

Notes Payable Sinopharm Group Zhijun (Shenzhen)

Pharmaceutical Co. Ltd. 144339.00 1087111.04

Notes Payable Sinopharm Wuhan Blood Products

Co. Ltd. 140400.00 196400.00

Notes Payable Sinopharm Holding Nanping Newforce

Co. Ltd. 111897.11 -

Notes Payable Shenyang Hongqi Pharmaceutical

Co. Ltd. 109000.00 211250.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

293

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Notes Payable Sinopharm Holding Anshan Co. Ltd. 82132.80 -

Notes Payable Sinopharm Yixin Pharmaceutical Co.Ltd. 71648.00 107472.00

Notes Payable Sinopharm Group Zhijun (Shenzhen)

Pingshan Pharmaceutical Co. Ltd. 40118.40 529699.96

Notes Payable Sinopharm Holding Shanxi Runhe

Medicine Co. Ltd. 31968.00 -

Notes Payable Sinopharm Holding Lunan Co. Ltd. - 10658369.14

Notes Payable Sinopharm Holding Changzhou Co.Ltd. - 2020000.00

Notes Payable Sinopharm Holding Heilongjiang Co.Ltd. - 218952.73

Notes Payable Guoyao Lerentang Hebei Medical

Device Supply Chain Management

Co. Ltd.

- 46593.60

Notes Payable Sinopharm Tongjitang (Guizhou)

Pharmaceutical Co. Ltd. - 8195.00

Notes Payable Sinopharm (Anhui) Jingfang

Pharmaceutical Co. Ltd. - 832991.60

Notes Payable Sinopharm Dezhong (Foshan)

Pharmaceutical Co. Ltd. - 349459.75

Notes Payable Beijing Huasheng Pharmaceutical

Biotechnology Development Co. Ltd. - 108404.81

Notes Payable Fosun Pharmaceutical Distribution

Jiangsu Co. Ltd. - 140400.00

Notes Payable Sinopharm Holding Heilongjiang Co.Ltd. - 320459.22

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

294

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Other Payable Sinopharm Holding Yangzhou Co.Ltd. 5588571.48 3725714.32

Other Payable Sinopharm Group Medicine Logistic

Co. Ltd. 5265920.10 5755677.01

Other Payable Sinopharm Group Co. Ltd. 4243127.65 4497592.00

Other Payable Sinopharm Group Shanghai Co. Ltd. 3693530.18 1660431.38

Other Payable Zhang Zhenfang 3516400.22 3114999.95

Other Payable Nanjing Yuanguang Trading Co. Ltd. 1854321.33 -

Other Payable China National of Traditional&Herbal

Medicine Co. Ltd. 1300000.00 1300000.00

Other Payable Sinopharm Group Xinjiang Special

Drugs National Pharmaceutical Co.

Ltd.

965215.60 -

Other Payable Sinopharm Holding Zhihuiminsheng

(Tianjin) Pharmaceutical Co. Ltd. 673682.22 -

Other Payable Sinopharm Health Online Co. Ltd. 409813.16 3008259.98

Other Payable Shanghai Beiyi Guoda

Pharmaceutical Co. Ltd. 363922.58 357949.73

Other Payable Sinopharm Holding (Tianjin Binhai)

Pharmaceutical Co. Ltd. 241760.00 241760.00

Other Payable Sinopharm Holding Xinjiang Special

Drugs Kashgar Pharmaceutical Co.

Ltd.

235405.65 -

Other Payable Sinopharm Holding Hunan Weian

Pharmacy Medicine Chain Company

Limited

102195.75 102194.25

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

295

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Other Payable Sinopharm Group Zhijun (Shenzhen)

Pingshan Pharmaceutical Co. Ltd. 50917.44 -

Other Payable Pingdingshan PushengPharmaceutical Co. Ltd. 41840.09 -

Other Payable Sinopharm Holding Sub Marketing

Center Co. Ltd. 38390.86 38236.19

Other Payable Chongqing Yaoyou Pharmaceutical

Co. Ltd. 5667.20 -

Other Payable Xinjiang Baitong Property Service Co.Ltd. 4749.45 -

Other Payable Fresenius Kabi Huarui

Pharmaceuticals Co. Ltd. 6.28 -

Other Payable Sinopharm Group Medicine Logistic

Co. Ltd. Guangzhou Branch - 19950.00

Other Payable Sinopharm Pharmaceutical Logistics

Co. Ltd. - 20825.20

Other Payable Sinopharm Luya (Shandong)

Pharmaceutical Co. Ltd. - 10023.90

Other Payable China Medicine Group Chongqing

Medicine Design Institute - 5173229.10

Other Payable Foshan Chancheng Central Hospital - 265014.68

Other Payable Gu Jinhua - 2054.77

Contract liability Sinopharm Holdings Beijing HuahongCo. Ltd. 429486.31 -

Contract liability Sinopharm Holding Yunnan Co. Ltd. 71884.05 105172.77

Contract liability Sinopharm Holding Wuhu Co. Ltd. 50943.17 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

296

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Contract liability Sinopharm Holding Chongqing Co.

Ltd. 48407.62 755.62

Contract liability Sinopharm Group Xinjiang Special

Drugs National Pharmaceutical Co.

Ltd.

36287.01 -

Contract liability Sinopharm Holding Gansu Co. Ltd. 21960.00 22457.66

Contract liability Sinopharm Holding Hulun Buir Co.

Ltd. 5119.00 -

Contract liability Dongyuan Accord Pharmaceutical

Chain Co. Ltd. 4554.28 -

Contract liability Sinopharm Holding Jiangxi Co. Ltd. 83.60 83.60

Contract liability Sinopharm Holding Dalian Hecheng

Co. Ltd. - 627.20

Contract liability Sinopharm Holding Inner Mongolia

Co. Ltd. - 5400.00

Contract liability Sinopharm Holding Huaian Co. Ltd. - 319996.00

Contract liability Sinopharm Holding Guizhou Medical

Device Co. Ltd. - 8301.54

Contract liability Sinopharm Group Guangxi Medical

Device Co. Ltd. - 21177.25

Contract liability Sinopharm Holding Nantong Co. Ltd. - 19051.49

Contract liability Sinopharm Holding Hunan Co. Ltd. - 10358.80

Contract liability Sinopharm Holding Quanzhou Co.

Ltd. - 19.40

Contract liability Sinopharm Group Guangdong

Medicine Device Co. Ltd. - 1231.90

Contract liability China National Pharmaceutical

Foreign Trade Corporation - 851.59

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

297

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item Related Party 30 June 2020 31 December 2019

Contract liability Sinopharm Holding Chengdu Co. Ltd. - 25179.04

Contract liability Sinopharm Holding Hubei Hongyuan

Co. Ltd. - 47019.75

Contract liability Sinopharm Holding Guizhou Co. Ltd. - 57761.18

Contract liability Sinopharm Holding Wenzhou Co. Ltd. - 575.60

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

298

XII. Related party relationships and transactions (Continued)

7. Commitments of Related Party

Lease commitment

Rent-in

Related Party 30 June 2020 31 December 2019

Sinopharm Group Shanghai Co. Ltd. - 7530062.22

Beijing Huafang Investment Co. Ltd. - 310950.48

Rent-out

Related Party 30 June 2020 31 December 2019

Sinopharm Holding Hunan Weian

Pharmacy Medicine Chain Company

Limited

267025.50 364266.00

Sinopharm Group Zhijun (Shenzhen)

Pharmaceutical Co. Ltd. 159523.81 1116666.67

Shenzhen Zhijun Pharmaceutical Trade

Co. Ltd. - 285714.30

China National Medicines Co. Ltd. - 50400.00

8. Others

Related Party 30 June 2020 31 December 2019

Short-term Borrowing

Sinopharm Group Finance Co. Ltd. 298750780.24 39993943.52

Cash deposite within a related party

Sinopharm Group Finance Co. Ltd. 71455017.29 549033.33

Entrusted loan

CNPGC - 31638984.25

Other non-current liabilities

Sinopharm Group Co. Ltd. - 35061743.31

Lease liability

Lerentang Investment Group Co. Ltd. 9415755.16 12422681.90

Guangdong Jiyuantang Development

Co Ltd

4050018.52 4933890.46

Sinopharm Holding Yangzhou Co. Ltd. 1852606.87 3666055.90

Sinopharm Holding (China) Financing

Lease Co. Ltd.

1043906.67 3861708.94

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

299

XII. Related party relationships and transactions (Continued)

8. Others (Continued)

Related Party 30 June 2020 31 December 2019

Lease liability

Sinopharm Xinjiang Pharmaceutical

Co. Ltd.

757941.63 741876.94

Gu Haiqun 517801.56 605072.66

Beijing Huafang Investment Co. Ltd. 449827.62 -

Sinopharm Group Co. Ltd. 426199.31 674745.68

Sinopharm Holding Beijing Co. Ltd. 388595.21 633695.74

Sinopharm Group Zhijun (Shenzhen)

Pingshan Pharmaceutical Co. Ltd.

381995.82 424359.32

Shenzhen Jiufeng Investment Co. Ltd. 197102.02 192924.42

Beijing Sinopharm Tianyuan Real

Estate & Property Management Co.

Ltd.

180430.28 357046.87

Hangzhou Xihu Business Group

Corporation

146420.86 -

China National Medicines Co. Ltd. 142071.07 281139.25

Shaoguan Wujiang District Muyang

Medicine Information Consultant Co.Ltd.

79826.44 552810.74

Sinopharm Holding Rizhao Co. Ltd. - 295085.71

Taishan Xiangranhui Trade Co. Ltd. - 2173975.05

Gu Jinhua - 1956440.82

Shenyang Pharmaceutical Co. Ltd. - 1481945.76

Linyi Medical Group Co. Ltd. - 6347349.41

Beijing Golden Elephant Fosun

Pharmaceutical Co. Ltd.

- 41664494.99

Puer Songmao Medicine Group Co.Ltd.

- 17247410.11

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

300

XIII. 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 2020 31 December 2019

RMB‘0000 RMB‘0000

Buildings machinery and equipment 69.43 42.16

Investment commitments - 6000.00

69.43 6042.16

2. Contingencies

As of the balance sheet date there were no contingencies that the Group was required to disclose.

XIV Events after the balance sheet date

On 7 July 2020 the Company held the 18th meeting of the 8th board of directors deliberated and passed the proposal on

Guoda Pharmacy's plan to purchase 100% equity of Chengda Fangyuan Pharmaceutical Group Co. Ltd. and agreed that

Guoda pharmacy a subsidiary of the Company to conduct the deal.

On 24 July 2020 Guoda pharmacy successfully obtained the 100% equity transfer project of Chengda Fangyuan Group

Co. Ltd. ("Chengda Fangyuan") with the price of RMB1860 million and signed the Property Right Transaction Contract

with Liaoning Chengda Co. Ltd.Guoda pharmacy completed the payment of the equity purchase then on 30 July 2020 it completed the industrial and

commercial registration change of the 100% equity of Chengda Fangyuan as well as performed the delivery of transferred

equity.

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

301

XV Other significant events

1. Segment reporting

Operating segments

For management purposes the Group is organized into business units based on its products and services and has three

reportable operating segments as follows:

(1) The Head Office which is mainly engaged in the investment and management of businesses;

(2) Pharmaceutical distribution segment which is mainly engaged in the distribution of medicine and pharmaceutical

products to customers;

(3) Retail pharmacy segment which is the management of the operation of Guoda Pharmacy.

Management monitors the results of the Group’s operating segments separately for the purpose of making decisions

about resource allocation and performance assessment. Segment performance is evaluated based on reportable

segment profit which is measured consistently with the Group’s profit before tax.Inter-segment sales and transfers are transacted with reference to the selling prices used in the transactions carried out

with third parties at the then prevailing market prices.

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)

302

XV. Other significant events (Continued)

1. Segment reporting (Continued)

Operating segments (Continued)

Operating segment information as at and for the semi year ended

Head Office Pharmaceutical distribution Pharmaceutical retail Elimination betweensegments Total

Principal operations income - 18911461205.70 8455594668.90 (422605176.57) 26944450698.03

Principal cost of sales - (17753220383.08) (6624161637.21) 424114538.75 (23953267481.54)

Income from investments in associates 133549495.38 (493808.35) 549217.13 - 133604904.16

Net profit 764789368.41 404743743.43 248037573.90 (611358143.21) 806212542.53

Total assets 13453139385.58 21523733888.33 13495579732.65 (10802602803.26) 37669850203.30

Total liabilities (2842410769.10) (15877760586.16) (8139486080.53) 5207615567.81 (21652041867.98)

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

XVI Notes to key items of the company financial statements

1. Accounts receivable

The accounts receivable by category are analyzed below:

30 June 2020 31 December 2019

Gross carrying

amount

Provision for

bad debt

Book

value

Gross carrying

amount

Provision for bad

debt

Book v

alue

Amount

Prop

ortio

Amount Propor

tion Amount

Propor

tion Amount

Prop

ortion

Items for which

provision for bad

debt is

recognised

separately

22884550.

79 3.57%

334294.

70 1.46%

22550256

.09

10352439.

53 1.61%

334294.7

0 3.23%

1001814

4.83

Items for which

provision for bad

debt is

recognized by

group (credit

risk

characteristics)

61832468

5.19 96.43% - 0.00%

61832468

5.19

561526639

.82

98.19

% - 0.00%

5615266

39.82

64120923

5.98

100.00

334294.

70 0.05%

64087494

1.28

571879079

.35

100.0

334294.7

0 0.06%

571544

784.65

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

XVI. Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

At 30 June 2020 accounts receivable that are individually assessed for provisions are as follows:

Debtor’s name Carrying amount

Bad debt

provision Rate Assessment for impairment

Receivables from subsidiaries

of the Group 22550256.09 - 0.00%

Internal related parties with lower-tier

recovery risk

Client A

323044.50 323044.50 100.00%

Debtor had mismanagement subject

to serious financial difficulties and

has been listed as discredited

judgment debtor that will probably

go bankrupt or restructuring

Client B

11250.20 11250.20 100.00%

Debtor had mismanagement subje

ct to serious financial difficulties

and the expected recoverability

very low

22884550.79 334294.70

Provision for bad debts of accounts receivable according to the general model of expected credit loss:

30 June 2020

Estimated default

amount

Expected credit loss in

entire lifetime Expected credit loss rate

Within 1 year 618250317.87 - 0.00%

1 to 2 years 74367.32 - 0.00%

618324685.19 - 0.00%

The accounts receivable for which the Company recognised provision for bad debts using the aging analysis method are

presented as follows:

30 June 2020

Within 1 year 640800573.96

1 to 2 years - - 408662.02

- 641209235.98

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

305

XVI. Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

Bad debt provision for the current period as follows:

Opening balance

Increases

during the

period

Reversal

during the

period

Write-off during

the period Other

Closing

balance

Bad debt provision 334294.70 - - - - 334294.70

On 30 June 2020 the top five accounts receivable by customer are summarised below:

Amount

% of the total accounts

receivable

Bad debt provision

amount

The top five accounts receivable

total 188086430.88 29.33% -

Accounts receivable derecognised due to transfer of financial assets was as follows:

From January to June 2020 the Company factored a small portion of accounts receivable at amortised cost to financial

institutions. The amount of accounts receivable derecognised was RMB156689648.43 (from January to June 2019:

RMB183988184.79) and the amount of loss recognised through Investment income was RMB1526968.25 (from January

to June 2019: RMB2178875.28).

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

306

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables

30 June 2020 31 December 2019

Dividend receivable 5664636.60 834914.61

Other receivables 1663704577.00 1928106680.77

1669369213.60 1928941595.38

（1）Dividend receivable

30 June 2020 31 December 2019

Shanghai Dingqun - 834914.61

Sinopharm Yanfeng 5664636.60 -

5664636.60 834914.61

（2）Other receivables

Category of other receivables by nature is as follows:

Nature 30 June 2020 31 December 2019

Amounts due from subsidiaries 1679099338.43 1913299778.33

Receivable of equity transactions 8980000.00 8980000.00

Deposit 853389.88 840318.90

Others 30152718.65 59391430.54

1719085446.96 1982511527.77

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

307

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables (Continued)

（2） Other receivables (Continued)

Changes in bad debt provision for the 12-month expected credit losses and lifetime expected credit losses on other

receivables are as follows:

Stage 1 Stage 2 Stage 3

Bad debt Expected credit

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 2020 - 64513.65 54340333.35 54404847.00

Balance at 1 January 2020

during the period - - - -

Provisions during the period - 3464.45 973888.89 977353.34

Reversal during the period - 1330.38 - 1330.38

Balance at 30 June 2020 - 66647.72 55314222.24 55380869.96

The aging analysis of other receivables was as follows:

30 June 2020

Within 1 year 1664340378.92

1 to 2 years 449785.31

2 to 3 years 45205040.92

Over 3 years 9090241.81

Total 1719085446.96

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

308

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables (Continued)

（2） Other receivables (Continued)

Bad debt provision for the current period as follows:

Opening

balance

Increases

during the

peried

Reversal during

the period

Write-off

during the

period

Other Closing balance

Bad debt

provision 54404847.00 977353.34 1330.38 - - 55380869.96

As at 30 June 2020，the accumulated top five other receivables are analysed below:

Nature Amount Age % of totalamount

Bad debt

provision

Sinopharm Guangxi Entrusted borrowings 382463823.03 Within 1 year 22.25% -

South Pharma & Trade Entrusted borrowings 161176813.92 Within 1 year 9.38% -

Sinopharm Dongguan Entrusted borrowings 117129675.11 Within 1 year 6.81% -

Sinopharm Zhanjiang Entrusted borrowings 110121916.63 Within 1 year 6.41% -

Sinopharm Meizhou Entrusted borrowings 76785009.05 Within 1 year 4.47% -

847677237.74 49.31% -

3. Long‐term equity investments

30 June 2020 31 December 2019

Original value

Bad debt

provision Carrying amount Original value

Bad debt

provision Carrying amount

Investments in

subsidiaries 5614677427.58 - 5614677427.58 5614677427.58 - 5614677427.58

Investments in

associates 2155000914.60 39930000.00 2115070914.60 2124009098.25 39930000.00 2084079098.25

7769678342.18 39930000.00 7729748342.18 7738686525.83 39930000.00 7698756525.83

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

309

XVI. Notes to key items of the company financial statements(Continued)

3. Long‐term equity investments (Continued)

(1) Subsidiaries

31 December 2019 Increases Decrease 30 June 2020

Amount of provisio

n for impairment

Sinopharm Jianmin 60054911.04 - - 60054911.04 -

Sinopharm Shenzhen

Material 15450875.93 - - 15450875.93 -

Shenzhen Logistics 5019062.68 - - 5019062.68 -

Sinopharm Guangzhou 3588689716.80 - - 3588689716.80 -

Sinopharm Guangxi 525456951.07 - - 525456951.07 -

Sinopharm Yanfeng 38207800.00 - - 38207800.00 -

Guoda Pharmacy 1361800110.06 - - 1361800110.06 -

Sinopharm Accord

Medicial Supply Chain

(Shenzhen) Co. Ltd. 19998000.00 - - 19998000.00 -

5614677427.58 - - 5614677427.58 -

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

XVI. Notes to key items of the company financial statements(Continued)

3. Long‐term equity investments (Continued)

(2) Associates

Changes in the period

Opening b

alance

Investm

ent

increas

Investme

decrease

Profit or

loss

under the

equity

method

Adjustme

nt in other

comprehe

nsive

income

Other

chang

es in

equity

Dividend

declared

Cash divi

dend

profits

declared

Closing b

alance

Provision

impairme

Shenzhen Main Luck

Pharmaceutical Co.Ltd

29446936

7.27 - -

3455644

0.58 - -

(6334200

0.00) -

2656838

07.85

399300

00.00

Sinopharm Group

Zhijun (Suzhou)

Pharmaceutical Co.Ltd. - -- - - - - - - - -

Sinopharm Group

Zhijun (Shenzhen)

Pharmaceutical Co.Ltd.

40057857

4.68 - -

1740099

5.09 - - - -

4179795

69.77 -

Shenzhen Zhijun

Pharmaceutical

Trade Co. Ltd.

10275257

.61 - -

757325.0

1 - - - -

1103258

2.62 -

Sinopharm Group

Zhijun(Shenzhen)

Pingshan

Pharmaceutical Co.Ltd.

12087801

8.74 - -

2766589

1.90 - - - -

1485439

10.64 -

Shanghai Shyndec

Pharmaceutical Co.Ltd.

1235240

098.79 - -

5316884

2.80

122186.8

14135

.44

(1671422

0.20) -

1271831

043.72 -

Shanghai Dingqun

Enterprise

Management

Consulting Co. Ltd.

22637781

.16 -

226377

81.16 - - - - - - -

1878157

264.66 -

226377

81.16

1335494

95.38

122186.8

14135

.44

(8005622

0.20) -

2115070

914.60

399300

00.00

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

XVI. Notes to key items of the company financial statements(Continued)

4. Operating revenue and cost

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Revenue Cost Revenue Cost

Principal

operations 1750454957.66 1679162910.91 1997575365.19 1915240571.14

Other

operations 22032405.90 10401151.33 10429198.11 6031823.62

1772487363.56 1689564062.24 2008004563.30 1921272394.76

Classification

For the six months ended

30 June 2020

By product

Include:

Pharmaceuticals 1586703672.74

Medical devices and disposables 158364033.88

Diagnostic reagents 3200625.97

Medical equipments 2186625.07

Other 17839465.77

By area

Include:

China 1768294423.43

By contract duration

Include:

At a point in time 1750454957.66

Overtime 17839465.77

1768294423.43

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

312

XVI. Notes to key items of the company financial statements(Continued)

4. Operating revenue and cost (Continued)

Information about the Company’s obligations is as follows:

(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 days

from delivery;

(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service is

completed.Information related to the sales price allocated to the remaining obligations:

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled is

RMB11170128.91 of which RMB11170128.91 is expected to be recognized in 2020.

Revenue is as follows:

30 June 2020 30 June 2019

Revenue from contracts with customers 1768294423.43 2003189231.91

Rentals 4192940.13 4815331.39

1772487363.56 2008004563.30

5. Investment income

For the six months ended

30 June 2020

For the six months ended

30 June 2019

Gain on long-term equity investments under the

equity method 133549495.38 181280533.11

Income from disposal of long-term equity

investments method 998665.84 -

Gain on transaction monetary during holding period 4109881.90 -

Income from the derecognition of financial assets

measured at amortised cost measured at

amortised cost (1526968.25) (2178875.28)

Dividends from subsidiaries 612502685.91 427007887.36

749633760.78 606109545.19

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

313

XVII Supplementary information to financial statements

1. Schedule of non‐recurring profit or loss

Amount for 30 June 2020 Illustration

Gains and losses from disposal of non-current assets 3933705.37

Mainly probability of gain and

losses from the end of lease

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 28001035.78

Mainly probability of special

subsidies received in the

period and tax reduction &

exemption

Reversal of bad debt provision for accounts receivable and

contract assets that were tested for impairment individually 362078.91

Income from operation on commission 961488.75

Non-operating income and expenses other than the aforesaid

items 1233502.85

Other gains and losses of non-operating 819788.51

Less:Impact of income tax 8198319.82

Impact of non-controlling interests after tax 10678719.21

16434561.14

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 companies offering

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.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

314

XVII. 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 4.91% 1.50 1.50

Net profit after deducting non-recurring

profit or loss attributable to the

Company’s ordinary shareholders

of the parent 4.79% 1.46 1.46

CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

(All amounts in Renminbi “RMB” unless otherwise stated)

315

Section XII. Documents Available for Reference

1. Accounting Statements carried with the signature and seals of legal representative chief financial officer

and person in charge of accounting;

2. Original text of all documents of the Company as well as manuscript of the announcement disclosed in

reporting period on Securities Times China Securities Journal and Hong Kong Commercial Daily appointed

by the CSRC;

3. The Place Where the document placed: Office of Secretariat of the Board of Directors Accord Pharm

Bldg. No. 15 Ba Gua Si Road Futian District Shenzhen

China National Accord Medicines Corporation Ltd.

Legal representative: Lin Zhaoxiong

29 August 2020

行情