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
2
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
3
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
4
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
5
Note V
For the six months ended
30 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
6
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
7
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
8
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
9
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
10
Note V
For the six months ended
30 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
11
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
12
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
13
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
14
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
15
Note XIV
For the six months
ended 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
16
For the six months ended 30 June 2020 Share capital Capital surplus
Other comprehensive
income
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
17
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
18
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)
19
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)
20
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)
21
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)
22
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)
23
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)
24
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)
25
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)
26
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)
27
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)
28
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)
29
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)
30
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)
31
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)
32
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)
33
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)
34
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)
35
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)
36
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)
37
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)
38
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)
39
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)
40
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)
41
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)
42
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)
43
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)
44
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)
45
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)
46
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)
47
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)
48
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)
49
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)
50
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)
51
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)
52
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)
53
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)
54
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)
55
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)
56
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)
57
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)
58
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)
59
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)
60
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)
61
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)
62
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)
63
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)
64
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 in
merger
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)
65
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)
66
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)
67
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
(c) Changes in bad debt provision recovery or reverse
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)
68
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)
69
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 to
combination
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)
70
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 for
impairment
Additional
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)
71
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)
72
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)
73
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)
74
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)
75
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)
77
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)
78
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)
79
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)
80
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)
81
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)
82
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
balance Merger 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)
83
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)
84
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)
85
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)
86
-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)
87
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)
88
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)
89
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)
90
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)
91
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)
92
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)
93
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)
94
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)
95
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)
96
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)
97
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
related
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)
98
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)
99
(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)
100
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)
101
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)
102
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
30
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)
103
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)
104
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)
105
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)
106
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)
107
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)
108
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)
109
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)
110
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)
111
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)
112
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)
113
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)
114
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)
115
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)
116
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)
117
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)
118
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)
119
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)
120
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)
121
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)
122
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)
123
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)
124
IX. Interests in other entities
1． Interests in subsidiaries
(1) The composition of the Group:
Subsidiaries
Principal place of
business
Place of
incorporation
Nature of
business
Shareholding
Ways of acquisition
Direct Indirect
Sinopharm Guilin Guilin Guilin Commercial - 100.00% Establishment
Sinopharm Baise Baise Baise Commercial - 100.00% Establishment
Sinopharm Holding
Zhongshan Co.Ltd.(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)
125
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
Sinopharm Liuzhou Liuzhou Liuzhou Commercial - 51.00%
Business combinations
involving entities under
common control
Guangdong Huixin Investment Co.Ltd. (“Huixin Investment”) Guangzhou Guangzhou Service 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding Foshan Co.Ltd. (“Sinopharm Foshan") Foshan Foshan Commercial 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding GuangdongYuexing Co. Ltd. (“SinopharmYuexing”) Guangzhou Guangzhou Commercial 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guangdong
Logistics Co. Ltd.(“Guangdong Logistic”) Guangzhou Guangzhou Service 100.00%
Business combinations
involving entities under
common control
Sinopharm Guangxi Nanning Nanning Commercial 100.00%
Business combinations
involving entities under
common control
Guangxi Logistic Nanning Nanning Service 100.00%
Business combinations
involving entities under
common control
Sinopharm Wuzhou Wuzhou Wuzhou Commercial 99.90%
Business combinations
involving entities under
common control
Sinopharm 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)
126
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
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)
127
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
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)
128
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
Shanghai 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)
129
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
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)
130
IX. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
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)
131
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)
132
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)
133
VII. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(3) Key financial information of important non-wholly owned subsidiaries
Subsidiarie
s
30 June 2020 31 December 2019
Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total liabilities Current assets
Non-current
assets
Total assets
Current
liabilities
Non-current
liabilities
Total liabilities
Sinopharm
Holding
Guoda
Pharmacy
Co. Ltd.
8725704967.
04
4769874765.
61
13495579732.
65
6934144873.
02
1205341207.
51
8139486080.
53
7896719966.
23
3785271722.
24
11681991688.
47
5341165404.
42
1133674087.
29
6474839491.
71
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)
134
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)
135
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)
136
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
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)
137
X. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
31 December 2019:
Financial assets
Financial assets
at fair value
through
profit or loss
Financial assets at
amortised cost
Financial assets at fair value
through other comprehensive
income Total
Mandatorily
required
Mandatorily
required
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)
138
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)
139
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)
140
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)
141
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)
142
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)
143
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)
144
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)
145
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)
146
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)
147
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)
148
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)
149
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)
150
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)
151
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)
152
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)
153
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)
154
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)
155
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)
156
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)
157
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)
158
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)
159
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)
160
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)
161
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)
162
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)
163
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
NO
6711635.43
Sinopharm Holding Shanxi
Zhongjian Medicial Device
Chain Co. Ltd.
Purchase of
goods
7522898.44
NO
-
Sinopharm Lerentang
Shijiazhuang Medicine Co.Ltd.Purchase of
goods
7471038.17
NO
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
NO
-
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
NO
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
NO
-
Shanghai Zeno
Biotechnology Co. Ltd.
Purchase of
goods
4606542.22
NO
-
Sinopharm Lerentang
Hebei Medical Instrument
Trade Co. Ltd.Purchase of
goods
4424779.00
NO
-
Sinopharm Liaoning
Medical Equipment Co.Ltd.Purchase of
goods
4168839.16
NO
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)
164
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
NO
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
NO
-
Hutchison Whampoa
Sinopharm
Pharmaceuticals
(Shanghai) Co. Ltd.Purchase of
goods
3507017.31
NO
3018099.42
Sinopharm Holding Jinan
Co. Ltd.
Purchase of
goods 3208390.44
NO
3031490.28
Sinopharm Holding Jinzhou
Co. Ltd.
Purchase of
goods 3117332.78
NO
2050823.42
Sinopharm Holding
Chongqing Co. Ltd.
Purchase of
goods 3106188.00
NO
-
Sinopharm Holding Beijing
Huahong Co. Ltd.Purchase of
goods 2856735.70
NO
2143025.16
Jinzhou Avanc Medicine
Co. Ltd.
Purchase of
goods 2780545.99
NO
-
Sinopharm Fengliaoxing
(Foshan) Pharmaceutical
Drugs Co. Ltd.
Purchase of
goods 2745736.27
NO
160792.59
Sinopharm Holding
Xinjiang Special Drugs
Karamay Pharmaceutical
Co. Ltd.
Purchase of
goods 2704084.84
NO
1634592.42
Sinopharm Group Guorui
Medicine Co. Ltd.Purchase of
goods 2675445.41
NO
3219200.90
Sinopharm Tongjitang
(Guizhou) Pharmaceutical
Co. Ltd.
Purchase of
goods 2616939.67
NO
1947122.98
Sinopharm Holding
Heilongjiang Co. Ltd.Purchase of
goods 2533432.31
NO
2603286.79
Fosun Pharmaceutical
Distribution Jiangsu Co.
Ltd.Purchase of
goods 2481349.10
NO
1647132.50
Sinopharm Holding Anhui
Co. Ltd.
Purchase of
goods 2398623.06
NO
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)
165
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)
166
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
NO
-
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)
167
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
NO
-
Sinopharm Jingfang
(Anhui) Pharmaceutical
Co. Ltd.
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)
168
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 of
goods
260176.99
NO
-
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
NO
-
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)
169
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
NO
-
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)
170
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)
171
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
Group
Purchase of
goods (1875.00) NO 35353.29
Ch ngqing 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)
172
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.
Ltd.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
cost;Consulti
ng service
fee
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
cost
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)
173
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)
174
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)
175
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)
176
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)
177
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)
178
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)
179
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)
180
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)
181
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)
182
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)
183
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)
184
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)
185
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)
186
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
Gu Jinhua Building 178800.00 207084.48
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)
187
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)
188
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)
189
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)
190
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)
191
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)
192
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)
193
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)
194
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)
195
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)
196
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)
197
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 Holding
Anhui 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)
198
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)
199
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)
200
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)
201
(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)
202
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)
203
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)
204
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)
205
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)
206
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)
207
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 Marketing
Center 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)
208
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)
209
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)
210
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)
211
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)
212
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)
213
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)
214
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)
215
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)
216
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)
217
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)
218
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)
219
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)
220
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)
221
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)
222
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)
223
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)
224
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 Pusheng
Pharmaceutical 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 Huahong
Co. 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)
225
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)
226
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)
227
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)
228
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)
229
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)
230
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)
231
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 between
segments
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
n
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
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
is
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)
234
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)
235
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)
236
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)
237
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 total
amount
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)
238
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
e
Investme
nt
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
or
profits
declared
Closing b
alance
Provision
of
impairme
nt
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
9
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
9
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)
241
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)
242
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)
243
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
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