Huadong Medicine Co., Ltd.2020 Third Quarterly Report
October 2020
Section I Important NotesThe Board of Directors, the Supervisory Committee as well as all the directors,supervisors and senior management staff of Huadong Medicine Co., Ltd. (the“Company”) hereby confirm that the information presented in this report is true,accurate and complete, free from false records, misleading statements ormaterial omissions, and will undertake legal liabilities individually and jointly.
All directors have attended the board meeting to review this quarterly report.
Lyu Liang, the Company’s legal representative and the in-charge of accounting,and Qiu Renbo, head of accounting department (accounting supervisor) herebydeclare the financial statements in this report are true, accurate and complete.
According to <Stock Listing Rules of the Shenzhen Stock Exchange>, if theannouncements of the listed companies are in different languages, it is ensuredthe content of the versions are the same. In case of discrepancy, the originalversion in Chinese shall prevail.
Section II Company ProfileI. Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of the previous accounting data
□ Yes √ No
End of the current reporting period | End of last year | Change (%) | ||||
Total assets (RMB) | 24,419,510,307.69 | 21,463,974,146.63 | 13.77% | |||
Net assets attributable to shareholders of the Company (RMB) | 14,231,521,922.12 | 12,309,477,308.00 | 15.61% | |||
The current reporting period | Year-on-year Change (%) | End of the current reporting period | Year-on-year (%) | |||
Operating revenue (RMB) | 8,839,942,450.31 | -5.75% | 25,500,876,607.95 | -7.70% | ||
Net profits attributable to shareholders of the Company (RMB) | 660,281,883.53 | 7.04% | 2,391,466,604.78 | 8.06% | ||
Net profits attributable to shareholders of the Company excluding non-recurring profit or loss (RMB) | 624,184,921.23 | 3.05% | 2,030,908,894.33 | -2.36% | ||
Net cash flows from operating activities (RMB) | 646,271,689.37 | 1,299.22% | 1,901,814,356.66 | 109.21% | ||
Basic earnings per share (RMB per share) | 0.3773 | 7.04% | 1.3667 | 8.06% | ||
Diluted earnings per share (RMB per share) | 0.3773 | 7.04% | 1.3667 | 8.06% | ||
Weighted average Return on Equity (ROE) | 4.75% | -0.69% | 17.69% | -2.45% |
Non-recurring profit or loss items and amounts
√ Applicable □ N/A
Unit: RMB
Items | Amount | Notes |
Profit or loss from disposal of non-current assets (including write-back of provision for impairment) | 303,785,522.75 | Mainly due to the transfer of market distribution rights of related products in Western Europe by Sinclair, a wholly owned subsidiary of the Company in the UK. |
Government grant included in profit or loss (excluding those closely related to operating activities, or regular government grants) | 123,759,645.82 | Mainly due to the recognition of government subsidy by the subsidiaries. |
Other non-operating revenue or expenditures | -9,427,936.85 | |
Less: Effects of income tax | 42,986,623.36 | |
Effected of non-controlling interests (after tax) | 14,572,897.91 | |
Total | 360,557,710.45 | -- |
Reasons are explained if the Company classifies an item as a non-recurring profit or loss in accordance to the < ExplanatoryAnnouncement onInformation Disclosure for Companies Offering Their Securities to the Public No. 1 - Non-Recurring Profit or Loss> or classifies
any non-recurring profit or loss item mentioned in the said announcement as a recurring profit or loss itemed.
□ Applicable √ N/A
No such cases for the reporting period.II. Total number of shareholders and shareholdings of the top ten shareholders as at the endof the reporting period
1. Total number of shareholders of ordinary shares and preference shares with resumed voting rights, andthe shareholding of the top ten shareholders
Unit: Share
Total number of shareholders of ordinary shares at the end of the reporting period | 136,875 | Total number of shareholders of preference shares with resumed voting rights at the end of the reporting period (if any) | 0 | |||||
Information about top 10 shareholders | ||||||||
Name of shareholders | Nature | Shareholding percentage (%) | Number of shares held | Number of restricted shares held | Pledged or frozen shares | |||
Status | Number | |||||||
中国远大集团有限责任公司 (China Grand Enterprises, Inc.) | Domestic non-state-owned corporation | 41.77% | 730,938,157 | 0 | Pledged | 259,114,000 | ||
杭州华东医药集团有限公司 (Hangzhou Huadong Medicine Group Co., Ltd.) | State-owned corporation | 16.46% | 288,000,000 | 0 | ||||
香港中央结算有限公司 (Hong Kong Securities Clearing Company Ltd.*) | Foreign corporation | 2.13% | 37,325,767 | 0 | ||||
全国社保基金一零六组合 (National Social Security Fund Portfolio 106) | Other | 1.59% | 27,797,163 | 0 | ||||
中国证券金融股份有限公司 (China Securities Finance Co., Ltd.*) | Other | 1.27% | 22,186,818 | 0 | ||||
基本养老保险基金一五零四一组合(Basic Endowment Insurance Fund Portfolio 15041) | Other | 0.44% | 7,623,568 | 0 | ||||
基本养老保险基金八零七组合 (Basic Endowment Insurance Fund Portfolio 807) | Other | 0.29% | 5,133,343 | 0 | ||||
中国银行股份有限公司-嘉实3年封闭运作战略配售灵活配置混合型证券投资基金(LOF) (Bank of China Co., Ltd.?) –Harvest 3-year closed operation strategic placement Flexible Allocation hybrid Securities Investment Fund (LOF) | Other | 0.24% | 4,266,168 | 0 | ||||
嘉实基金-建设银行-中国人寿-中国人寿委托嘉实基金股票型组合(Harvest Fund - China Construction Bank - China Life - China Life Entrusted harvest Fund equity portfolio) | Other | 0.24% | 4,262,147 | 0 | ||||
#Chen Shaoming | Domestic | 0.23% | 4,043,000 | 0 |
?The English names are for identification purpose only.
individual | ||||
Top ten non-restricted shareholders | ||||
Name of shareholders | Number of non-restricted shared held | Type of shares | ||
Type | Number | |||
China Grand Enterprises, Inc. | 730,938,157 | RMB ordinary shares | 730,938,157 | |
Hangzhou Huadong Medicine Group Co., Ltd. | 288,000,000 | RMB ordinary shares | 288,000,000 | |
Hong Kong Securities Clearing Company Ltd. | 37,325,767 | RMB ordinary shares | 37,325,767 | |
National Social Security Fund Portfolio 106 | 27,797,163 | RMB ordinary shares | 27,797,163 | |
China Securities Finance Co., Ltd. | 22,186,818 | RMB ordinary shares | 22,186,818 | |
Basic Endowment Insurance Fund Portfolio 15041 | 7,623,568 | RMB ordinary shares | 7,623,568 | |
Basic Endowment Insurance Fund Portfolio 807 | 5,133,343 | RMB ordinary shares | 5,133,343 | |
Bank of China Co., Ltd. –Harvest 3-year closed operation strategic placement Flexible Allocation hybrid Securities Investment Fund (LOF) | 4,266,168 | RMB ordinary shares | 4,266,168 | |
Harvest Fund - China Construction Bank - China Life - China Life Entrusted Harvest Fund equity portfolio | 4,262,147 | RMB ordinary shares | 4,262,147 | |
#Chen Shaoming | 4,043,000 | RMB ordinary shares | 4,043,000 | |
Explanation on relationship and concerted actions among above shareholders | The Company does not know whether the above shareholders are related parties with each other or whether they are acting-in-concert parties with each other. | |||
Explanation on margin trading of top ten shareholders (if any) | At the end of the current reporting period, Chen Shaoming, the tenth shareholder of the Company, held 3,980,000 shares through credit guarantee security account. |
Whether any agreed repurchase transactions were entered into during the reporting period by the top ten ordinary shareholders andtop ten non-restricted ordinary shareholders?
□ Yes √ No
No such cases during the reporting period.
2. Total number of preference shareholders and shareholding of top ten preference shareholders
□ Applicable √ N/A
Section III Significant EventsI. Details of changes in major financial data and financial indicators during the reportingperiod
√ Applicable □ N/A
Unit: RMB
Balance sheet items | End of the period | Beginning of the period | Change | Reasons for the change |
Other receivables | 202,604,242.37 | 92,201,271.22 | 119.75% | Mainly due to the increase of temporary payment and deposits. |
Other current assets | 30,970,609.30 | 62,526,471.96 | -50.47% | Mainly due to the decrease of input VAT. |
Long-term equity investments | 618,012,071.25 | 222,595,018.54 | 177.64% | The subsidiary Zhongmei Huadong increased equity investment in Qyuns Therapeutics and Chongqing Peg-Bio. |
Other non-current assets | 516,158,254.42 | 184,141,659.07 | 180.30% | Mainly due to the increase of advance payment for purchase of equipment and intangible assets. |
Short-term borrowings | 1,368,007,785.51 | 655,549,973.27 | 108.68% | Mainly due to the increase of bank loan for the repayment of the corporate bonds. |
Advances received | 16,956,179.73 | 254,888,911.30 | -93.35% | Mainly due to the decrease of advanced receipt of medicine sales. |
Other payables | 2,001,768,855.34 | 1,365,152,290.99 | 46.63% | Mainly due to the increase of temporary receipts payable. |
Non-current liabilities due within one year | 20,391,924.90 | 1,053,231,727.73 | -98.06% | Mainly due to repayment of corporate bonds. |
Income statement items | Current period cumulative | Comparative period | Change | Reasons for the change |
Financial expenses | 16,523,165.79 | 89,340,120.69 | -81.51% | Mainly due to on the decrease of interest-bearing liabilities and the cost of financing. |
Gains on asset disposal | 304,146,257.99 | 114,347,426.77 | 165.98% | Mainly due to the transfer of market distribution rights of related products in Western Europe by Sinclair, a wholly owned subsidiary of the Company in the UK. |
Investment income | -20,950,134.64 | -11,732,842.99 | -78.56% | Mainly due to the decrease of short-term investment gain and net profit generated by associates. |
Non-operating income | 16,504,085.99 | 9,904,357.05 | 66.63% | Mainly due to the write-off of payables. |
Cash flow statement items | Current period cumulative | Preceding period comparative | Change rate | Notes on changes |
Net cash flows from operating activities | 1,901,814,356.66 | 909,038,245.96 | 109.21% | Mainly due to the decrease of payments for procurement. |
Net cash flows from investing activities | 349,442,817.74 | 44,373,345.73 | 687.51% | Mainly due to the transfer of market distribution rights of related products in Western Europe by Sinclair, a wholly owned subsidiary of the |
II. Progress, impact and solutions of significant events
□ Applicable √ N/A
Progress of share repurchase
□ Applicable √ N/A
Progress of repurchased share reduction through centralized price bidding
□ Applicable √ N/A
III. Unfulfilled and overdue commitments of the Company’s actual controller, shareholders,related parties, acquirer(s), and the Company and other committed parties during thereporting period
□ Applicable √ N/A
No such cases during the reporting period.
IV. Financial asset investment
1. Security investments
√ Applicable □ N/A
Unit: RMB
Company in the UK.
Type ofsecurity
Type of security | Stock code | Stock abbreviation | Initial investment cost | Accounting measurement method | Book value at the beginning of the period | Profit or loss from fair value changes in the current period | Accumulative fair value changes charged to equity | Purchases during the period | Disposal during the period | Gain/ loss during the period | Book value at the end of the period | Accounting item | Funding source |
Domestic and overseas stock | RAPT | RAPT | 20,207,400.00 | Fair value measurement | 42,009,254.79 | 5,817,290.26 | 5,817,290.26 | 0.00 | 0.00 | 5,817,290.26 | 47,826,545.05 | Other equity instruments investment | Own funds |
Total | 20,207,400.00 | -- | 42,009,254.79 | 5,817,290.26 | 5,817,290.26 | 0.00 | 0.00 | 5,817,290.26 | 47,826,545.05 | -- | -- | ||
Date of announcement of the board of directors on |
securities investment approval | |
Date of announcement of the shareholders’ general meeting on securities investment approval (if any) |
Notes: Huadong Medicine Investment Holding (Hong Kong) Limited, a subsidiary of the Company, subscribed the C-2 seriespreference shares of FLX Bio (now RAPT Therapeutics, Inc.) for USD 3 million in 2019. FLX Bio was listed on the NASDAQ StockExchange (stock code: RAPT) on 30 October 2019. Huadong Medicine Investment Holding (Hong Kong) Limited holds 0.89% of itstotal shares.
2. Derivative investments
□ Applicable √ N/A
No such cases during the reporting period.
V. Progress of investment projects financed with raised funds
□ Applicable √ N/A
No such cases during the reporting period.
VI. Forecast of 2020 annual business performance
□ Applicable √ N/A
A warning and explanation of the reason for a prediction that the cumulative net profit from the beginning of the year to the end ofthe next reporting period may be a loss or a significant change compared with the corresponding period of prior year.VII. Major contracts in daily operations
□ Applicable √ N/A
VIII. Entrusted wealth management
□ Applicable √ N/A
No such cases during the current reporting period.IX. External guarantees against rules and regulations
□ Applicable √ N/A
No such cases during the current reporting period.
X. Occupation of the Company’s funds by the controlling shareholder or its related partiesfor non-operating purposes
□ Applicable √ N/A
No such cases during the reporting period.XI. Registration form for research, communication and interview activities during thereporting period
√ Applicable □ N/A
Time of reception | Location | Method of reception | Type of reception object | Index of basic information of the research |
Jan 19th, 2020 | Corporate Headquarter conference room | Conference call | Institutional investors | Please refer to the <000963 Huadong Medicine Research Activity: January 19th, 2020> presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
Apr 30th, 2020 | Corporate Headquarter conference room | Conference call | Institutional investors | Please refer to the <Investor Relations Activity Record: April 30th, 2020> presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
Jun 5th, 2020 | Corporate Headquarter conference room | On-site research | Institutional investors | Please refer to the <Investor Relations Activity Record: June 5th, 2020>presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
Aug 28th, 2020 | Corporate Headquarter conference room | Conference call | Institutional investors | Please refer to the <Investor Relations Activity Record: Aug 28th, 2020> presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
Sept 2nd, 2020 | Corporate Headquarter conference room | Conference call | Institutional investors | Please refer to the <Investor Relations Activity Record: Sept 2nd, 2020>presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
XII. Overview of the Company’s operations from January to September 2020
1、Operation
During the reporting period, the Company generated an operating revenue of RMB 25.501billion, representing a year-on-year (“YoY”) decrease of 7.7%; the net profit attributable to theshareholders amounted to RMB 2.391 billion, representing a YoY increase of 8.06%; the net profitsattributable to the shareholders excluding non-recurring profit was RMB 2.031 billion, down 2.36%YoY, and the net cash flow from operating activities was RMB 1.902 billion, up 109.21% YoY. Inthe third quarter, the company maintained a good momentum of development in pharmaceuticalmanufacturing, pharmaceutical business and aesthetic medicine business with steadier growthcompared to the second quarter of the year.During the reporting period, the core subsidiary Zhongmei Huadong achieved an operatingrevenue of RMB 8.81 billion, with a YoY growth of 5.01%, and a net profit of RMB 1.939 billion,an increase of 4.68% compared to previous year. The operating income in the third quarterincreased by 1.4% to RMB 2.726 billion, an 10.6% increase compared to the second quarter of thisyear. The net profit during the reporting period was RMB 560 million, with a YoY growth of 3.9%.Not only pioglitazone metformin tablets, acarbose chewable tablets, indolbufen tablets and otherproducts in the field of diabetes realized a growth to a certain extent, but also the transplantationimmune products and Belling capsules maintained a steady growth. Due to the failure in NationalVolume-Based Procurement and the fluctuations in market price, the sales revenue of Acarbosetablets declined during the period. However, through market exploitation outside hospitals, the salesdecline has been controlled. The Company would continuously increase market coverage tomaintain the same or higher annual sales volume of Acarbose tablets compared with last year.
Huadong Commercial Company actively enriched its products line and improved its operatingefficiency to gradually offset the impact of COVID-19. Its business showed a steady recovery in thethird quarter with its operating revenue of RMB 16.134 billion during the reporting period. Amountof RMB 5.921 billion was generated in the third quarter, an increase of 9.84% compared with thesecond quarter of this year. Huadong Medicine Supply Chain Management (Hangzhou) Co., LTD(hereinafter referred to as ‘HMSCM’), a wholly owned subsidiary has gained the qualificationto launch the cold chain distribution business. In term of vaccine distribution business, HMSCMwas the first one passing the special vaccine inspection arranged by Zhejiang Drug Administrationand successfully owning the qualifications to develop a vaccine distribution business. According tothe distribution instructions of COVID-19 vaccine in the immunization program of Zhejiang CDC,
the first batch of COVID-19 vaccine distribution tasks for 10 provincial hospitals have beencompleted by HMSCM during the period.The third quarter witnessed an improvement in the aesthetic business, and the global businesswas gradually recovering. Huadong Ningbo has reversed a decrease tide from COVID-19, withrevenue approaching the same period last year and net profit rising by 13% from a year earlier. Dueto the pandemic, Sinclair suffered a decrease in revenue and had a net operating loss whileexcluding the profit from the disposal of assets. However, the third quarter has seen a clear reboundin revenue from the second quarter, with a reduction in losses.
2、Research and development (R&D)
During the reporting period, the Company increased investment in R&D with a cumulativeR&D cost of RMB 690 million, and a number of products under research progressed as scheduled.The Company also continues to focus on the three core fields, namely oncology, endocrinology andautoimmunity, constantly enriching its innovative product pipeline.1)OncologyDuring the reporting period, Zhongmei Huadong introduced Mirvetuximab Soravtansine(hereinafter referred to as "MIRV"), a phase III clinical research product from ImmunoGen of theUnited States, and obtained its exclusive development and commercialization rights in GreaterChina (including Mainland China, Hong Kong, Macau and Taiwan). MIRV is the world's first ADCdrug candidate for folate receptor alpha (FRα)-positive ovarian cancer, and its R&D progress iscurrently the fastest among ADC drugs for FRα-positive ovarian cancer. This cooperation with oneof the world's most famous ADC companies is the beginning of the Company's full entry into thefield of oncology innovative drugs.In future, the Company will increase layout in the ADC oncology field, and continue todevelop ADC products for different cancers based on unmet clinical needs. Relying on theCompany's existing biotechnology R&D platform and in collaboration with ImmunoGen, one of theworld's leading R&D companies, Company will strengthen and deepen the product innovation chainand industrial ecological chain, and ultimately achieve the international layout of HuadongMedicine in the field of oncology. (For details, please refer to the announcement No. 2020-042issued by the Company)
2)DiabetesAfter completing the second capital increase of Chongqing Peg-Bio, the two parties formallysigned an agreement on the cooperative development and commercialization of Semaglutideproducts under research to accelerate the two parties’ cooperation and development process ofmacromolecular biopharmaceuticals. This cooperation will further enrich the Company's majorproduct pipeline in the diabetes field, create synergy with existing products under research, andconsolidate the market leading position in the field of diabetes medication in China. The Companyis also synchronously promoting the industrialization process of developing products andintroducing new drugs. The Company has started the construction of an internationally leadingdiabetes macromolecular drug production base on the reserved project land for the second phase ofCompany’s Jiangdong project in Hangzhou Qiantang New District, to lay a solid foundation for thecompany's future development of domestic and international markets for macromolecular drugs inthe field of diabetes. Please refer to the announcement No. 2020-045 issued by the Company fordetails.
Under the dual influence of collective-bidding for medicine purchase and Covid-19,pioglitazone-metformin tablets and acarbose chewable tablets in the Company's diabetes field havemaintained rapid growth. Company strives for Acarbose tablets’ annual sales volume to be no lowerthan the level of last year by exploring the market outside the hospital ts and increasing marketcoverage. The Company has a number of first-line clinical diabetes products on the market. Forresearch products, compound DPP-4 inhibitors, compound SGLT-2 inhibitors and liraglutideinjections are expected to be launched in 2021-2022; Semaglutide is planned to initiate clinicalregistration applications in 2021. The Company has been focusing on the R&D and production ofdiabetes drugs for many years, and the production quality tends to the international leading level,with a wealth of product pipelines. In the future, the Company will enter a new period of growth inthis field by virtue of Company’s well-developed market reputation and excellent brand promotionability.3)AutoimmunityDuring the reporting period, Zhongmei Huadong invested RMB 370 million in the equityinvestment of Qyuns Therapeutics Co., Ltd ( Qyuns Therapeutics) and acquired 20.56% ownership,
becoming its second largest shareholder. At the same time, the two parties have signed anagreement on product cooperation development and commercialization for QX001S (A biologicalanalogue of the original drug Stelara?Ustekinumab, used for the treatment of psoriasis and Crohn'sdisease, etc.) under development by Qyuns Therapeutics in mainland China. By reaching equity andproduct cooperation with Qyuns Therapeutics, the Company’s macromolecular innovation druglayout in the immune field will further develop. The two parties will carry out more extensive andin-depth cooperation discussions on Qyuns Therapeutics’ products under development in the future,so as to create good cooperation conditions for Huadong Medicine to gradually enter the R&Dpipeline of monoclonal antibody products in the biopharmaceutical field. Please refer to theannouncement No. 2020-032 issued by the Company for details.
3、international aesthetic business
Since the beginning of the year, the Company’s internationalization strategy in the medicalaesthetics sector has continued to advance rapidly, it has reached agreements in product cooperationand equity investment with a few renowned companies. In March, Sinclair completed the deal withGalderma, a well-known Swiss dermatology pharmaceutical company for the transfer of the right ofSculptra? (poly-L-lactic acid microspheres) in western European, which brought about GBP 30.65million (after-tax) disposal gain to Sinclair. Sinclair also signed an agreement with KylaneLaboratories, a Switzerland-based aesthetic R&D company, to obtain the global exclusive license ofits hyaluronic acid filler MaiLi? (with Lidocaine). In August 2020, the Company signed a strategiccooperation agreement with Jetema, a Korean listed company, and obtained the exclusive right of itsBoNT-A product in China, which further completed the product pipeline, marking a solid stepforward for the globalization of Huadong’s aesthetic business. In October, Sinclair and Kylanesigned equity investment and strategic products co-development agreement. Sinclair paid EUR 6million to obtain 20% shareholding in Kylane, becoming its third largest shareholder. In addition,every year Sinclair would pay a certain amount of money to Kylane to support its R&D activities.In return, Sinclair would have right to obtain the IP and global rights of its two products, whichwere applied in the field of facial and body filler. Sinclair would also have the rights of firstnegotiation of Kylane’s future products. Please refer to Company Notice No. 2020-040 for details.
The Company aesthetic business adopts the strategy of operating globally and creating a dualcirculation development pattern. The company gives full play to the advantage of a huge domesticmarket and introduces world-class high technological products to domestic market so that a newdevelopment pattern will gradually be created whereby domestic and foreign markets can boosteach other. The company is committed to making Sinclair a world-class aesthetic enterprise,creating a new space for future development.
Section IV Financial Statements
I. Financial statements
1. Consolidated balance sheet as at September 30
th, 2020Prepared by: Huadong Medicine Co., Ltd.
Unit: RMB
Items | September 30th, 2020 | December 31st, 2019 |
Current assets: | ||
Cash and bank balances | 2,564,103,286.11 | 2,402,730,395.39 |
Settlement funds | ||
Loans to other banks | ||
Held-for-trading financial assets | ||
Derivative financial assets | ||
Notes receivable | ||
Accounts receivable | 7,788,224,106.35 | 6,092,305,184.47 |
Receivables financing | 844,379,317.86 | 683,884,625.14 |
Advances paid | 420,197,609.65 | 363,246,612.94 |
Premiums receivable | ||
Reinsurance accounts receivable | ||
Reinsurance reserve receivable | ||
Other receivables | 202,604,242.37 | 92,201,271.22 |
Including: Interest receivable | ||
Dividend receivable | 815,965.44 | 815,965.44 |
Financial assets under reverse repo | ||
Inventories | 3,914,403,627.95 | 4,038,975,496.93 |
Contract assets | ||
Assets as held for sale | ||
Non-current assets due within one year | ||
Other current assets | 30,970,609.30 | 62,526,471.96 |
Total current assets | 15,764,882,799.59 | 13,735,870,058.05 |
Non-current assets: | ||
Loans and advances paid | ||
Debt investments | ||
Other debt investments | ||
Long-term receivable | ||
Long-term equity investments | 618,012,071.25 | 222,595,018.54 |
Other equity instrument investments | 247,493,002.31 | 241,675,712.05 |
Other non-current financial assets | ||
Investment property | 20,282,214.51 | 21,701,908.75 |
Fixed assets | 2,118,694,009.27 | 2,175,216,842.65 |
Construction in progress | 2,075,689,332.92 | 1,829,808,233.19 |
Productive biological assets |
Items | September 30th, 2020 | December 31st, 2019 |
Oil & gas assets | ||
Use right assets | ||
Intangible assets | 1,448,544,346.51 | 1,454,900,160.45 |
Development expenditures | ||
Goodwill | 1,469,617,262.10 | 1,469,617,262.10 |
Long-term prepayments | 9,143,178.94 | 12,289,677.31 |
Deferred tax assets | 130,993,835.87 | 116,157,614.47 |
Other non-current assets | 516,158,254.42 | 184,141,659.07 |
Total non-current assets | 8,654,627,508.10 | 7,728,104,088.58 |
Total assets | 24,419,510,307.69 | 21,463,974,146.63 |
Current liabilities: | ||
Short-term borrowings | 1,368,007,785.51 | 655,549,973.27 |
Central bank loans | ||
Loans from other banks | ||
Held-for-trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | 523,746,625.31 | 613,374,356.61 |
Accounts payable | 4,478,910,238.07 | 3,789,054,234.58 |
Advances received | 16,956,179.73 | 254,888,911.30 |
Contract liabilities | 117,764,737.01 | |
Financial liabilities under repo | ||
Absorbing deposit and interbank deposit | ||
Deposit for agency security transaction | ||
Deposit for agency security underwriting | ||
Employee benefits payable | 197,127,989.20 | 132,584,982.71 |
Taxes and rates payable | 529,525,987.66 | 532,802,157.61 |
Other payables | 2,001,768,855.34 | 1,365,152,290.99 |
Including: Interest payable | ||
Dividend payable | 1,344,219.60 | 224,219.60 |
Handling fee and commission payable | ||
Reinsurance accounts payable | ||
Liabilities classified as held for sale | ||
Non-current liabilities due within one year | 20,391,924.90 | 1,053,231,727.73 |
Other current liabilities | ||
Total current liabilities | 9,254,200,322.73 | 8,396,638,634.80 |
Non-current liabilities: | ||
Insurance policy reserve | ||
Long-term borrowings | 172,017,849.07 | |
Bonds payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities |
Items | September 30th, 2020 | December 31st, 2019 |
Long-term payables | 34,741,313.24 | 48,080,030.00 |
Long-term employee benefits payable | ||
Provisions | 51,235,349.77 | 52,066,643.01 |
Deferred income | 56,933,194.48 | 60,960,255.68 |
Deferred tax liabilities | 45,296,252.83 | 39,604,343.27 |
Other non-current liabilities | ||
Total non-current liabilities | 360,223,959.39 | 200,711,271.96 |
Total liabilities | 9,614,424,282.12 | 8,597,349,906.76 |
Equity: | ||
Share capital | 1,749,809,548.00 | 1,749,809,548.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserve | 2,157,580,835.94 | 2,158,080,661.07 |
Less: Treasury shares | ||
Other comprehensive income | 43,816,996.72 | 22,792,488.80 |
Special reserve | ||
Surplus reserve | 710,359,967.51 | 710,359,967.51 |
General risk reserve | ||
Undistributed profit | 9,569,954,573.95 | 7,668,434,642.62 |
Total equity attributable to the parent company | 14,231,521,922.12 | 12,309,477,308.00 |
Non-controlling interest | 573,564,103.45 | 557,146,931.87 |
Total equity | 14,805,086,025.57 | 12,866,624,239.87 |
Total liabilities & equity | 24,419,510,307.69 | 21,463,974,146.63 |
Lyu Liang Legal representative | Lyu Liang Officer in charge of accounting | Qiu Renbo Head of accounting department |
2. Parent company balance sheet as at September 30
th, 2020
Unit: RMB
Items | September 30th, 2020 | December 31st, 2019 |
Current assets: | ||
Cash and bank balances | 1,603,798,436.33 | 893,939,724.56 |
Held-for-trading financial assets | ||
Derivative financial assets | ||
Notes receivable | ||
Accounts receivable | 4,377,451,856.37 | 3,601,796,850.84 |
Receivables financing | 400,739,395.45 | 102,285,661.94 |
Advances paid | 81,403,264.00 | 183,776,687.98 |
Other receivables | 682,877,958.92 | 857,127,207.17 |
Including: Interest receivable | ||
Dividend receivable | 1,680,000.00 | |
Inventories | 1,758,827,867.91 | 1,726,815,773.41 |
Contract assets | ||
Assets classified as held for sale | ||
Non-current assets due within one year | ||
Other current assets | 13,631,809.53 | 4,529,331.87 |
Total current assets | 8,918,730,588.51 | 7,370,271,237.77 |
Non-current assets: | ||
Debt investments | ||
Other debt investments | ||
Long-term receivable | ||
Long-term equity investments | 4,884,084,300.65 | 4,809,521,228.65 |
Other equity instrument investments | 92,108,957.26 | 92,108,957.26 |
Other non-current financial assets | ||
Investment property | 8,242,134.70 | 8,591,809.18 |
Fixed assets | 146,126,172.21 | 144,102,366.02 |
Construction in progress | 25,741,196.03 | 15,728,406.26 |
Productive biological assets | ||
Oil & gas assets | ||
Use right assets | ||
Intangible assets | 43,891,539.11 | 45,226,361.12 |
Development expenditures | ||
Goodwill | ||
Long-term prepayments | 728,348.83 | 975,689.14 |
Deferred tax assets | 48,924,184.37 | 48,849,165.52 |
Other non-current assets | 8,076,419.28 | 8,076,419.28 |
Total non-current assets | 5,257,923,252.44 | 5,173,180,402.43 |
Total assets | 14,176,653,840.95 | 12,543,451,640.20 |
Current liabilities: |
Items | September 30th, 2020 | December 31st, 2019 |
Short-term borrowings | 931,302,898.45 | 55,000,000.80 |
Held-for-trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | 290,315,007.83 | 81,036,745.94 |
Accounts payable | 2,973,649,632.66 | 2,469,675,798.54 |
Advances received | 5,817,872.21 | 52,914,932.34 |
Contract liabilities | 44,752,863.16 | |
Employee benefits payable | 5,159,635.77 | 3,203,215.95 |
Taxes and rates payable | 142,504,734.60 | 32,881,935.68 |
Other payables | 676,839,244.46 | 638,551,969.04 |
Including: Interest payable | ||
Dividend payable | 224,219.60 | 224,219.60 |
Liabilities as held for sale | ||
Non-current liabilities due within one year | 1,028,002,952.88 | |
Other current liabilities | ||
Total current liabilities | 5,070,341,889.14 | 4,361,267,551.17 |
Non-current liabilities: | ||
Long-term borrowings | ||
Bonds payable | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | ||
Long-term payables | ||
Long-term employee benefits payable | ||
Provisions | ||
Deferred income | 41,340,379.68 | 43,264,785.87 |
Deferred tax liabilities | ||
Other non-current liabilities | ||
Total non-current liabilities | 41,340,379.68 | 43,264,785.87 |
Total liabilities | 5,111,682,268.82 | 4,404,532,337.04 |
Equity: | ||
Share capital | 1,749,809,548.00 | 1,749,809,548.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserve | 2,168,451,528.01 | 2,168,451,528.01 |
Less: Treasury shares | ||
Other comprehensive income | 847,526.06 | 847,526.06 |
Special reserve | ||
Surplus reserve | 788,215,726.95 | 788,215,726.95 |
Undistributed profit | 4,357,647,243.11 | 3,431,594,974.14 |
Total equity | 9,064,971,572.13 | 8,138,919,303.16 |
Items | September 30th, 2020 | December 31st, 2019 |
Total liabilities & equity | 14,176,653,840.95 | 12,543,451,640.20 |
3. Consolidated income statement for the three months ended September 30
th, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Total operating revenue | 8,839,942,450.31 | 9,379,217,601.89 |
Including: Operating revenue | 8,839,942,450.31 | 9,379,217,601.89 |
Interest income | ||
Premium earned | ||
Revenue from handling charges and commission | ||
II. Total operating cost | 8,049,749,935.10 | 8,612,685,353.51 |
Including: Operating cost | 6,030,257,066.00 | 6,530,011,823.86 |
Interest expenses | ||
Handling charges and commission expenditures | ||
Surrender value | ||
Net payment of insurance claims | ||
Net provision of insurance policy reserve | ||
Premium bonus expenditures | ||
Reinsurance expenses | ||
Taxes and surcharges | 47,047,870.35 | 38,178,625.13 |
Selling expenses | 1,494,570,477.50 | 1,519,078,821.04 |
Administrative expenses | 268,670,484.20 | 246,637,621.16 |
R&D expenses | 210,211,944.06 | 243,558,122.30 |
Financial expenses | -1,007,907.01 | 35,220,340.02 |
Including: Interest expenses | 12,313,621.11 | 33,998,258.85 |
Interest income | 22,215,487.08 | 6,638,774.53 |
Add: Other income | 30,726,790.34 | 14,508,606.35 |
Investment income (or less: losses) | -10,947,970.74 | -5,573,707.03 |
Including: Investment income from associates and joint ventures | -5,851,687.53 | 706,857.54 |
Gains from the derecognition of financial assets measured at amortized cost | ||
Gains on foreign exchange (or less: losses) | ||
Gains on net exposure to hedging risk (or less: losses) | ||
Gains on changes in fair value (or less: losses) | ||
Credit impairment loss ( less: losses) | ||
Assets impairment loss ( less: losses) | ||
Gains on asset disposal (or less: losses) | 2,980,000.81 | 3,151,854.72 |
III. Operating profit (or less: losses) | 812,951,335.62 | 778,619,002.42 |
Add: Non-operating revenue | 6,313,790.19 | 5,741,109.69 |
Less: Non-operating expenditures | 6,245,193.02 | 8,842,809.50 |
IV. Profit before tax (or less: total loss) | 813,019,932.79 | 775,517,302.61 |
Items | Amount incurred during the current period | Amount incurred during the previous period |
Less: Income tax | 127,915,709.89 | 134,060,752.36 |
V. Net profit (or less: net loss) | 685,104,222.90 | 641,456,550.25 |
(I) Categorized by the continuity of operations | ||
1. Net profit from continuing operations (or less: net loss) | 685,104,222.90 | 641,456,550.25 |
2. Net profit from discontinued operations (or less: net loss) | ||
(II) Categorized by the portion of equity ownership | ||
1. Net profit attributable to owners of parent company | 660,281,883.53 | 616,830,635.77 |
2. Net profit attributable to non-controlling shareholders | 24,822,339.37 | 24,625,914.48 |
VI. Other comprehensive income after tax | -17,724,830.31 | 5,120,322.24 |
Items attributable to the owners of the parent company | -17,724,830.31 | 5,120,322.24 |
(I) Not to be reclassified subsequently to profit or loss | 5,599,380.87 | |
1.Changes in remeasurement on the net defined benefit plan | ||
2. Items under equity method that will not be reclassified to profit or loss | ||
3. Changes in fair value of other equity instrument investments | 5,599,380.87 | |
4. Changes in fair value of own credit risk | ||
5. Others | ||
(II) To be reclassified subsequently to profit or loss | -23,324,211.18 | 5,120,322.24 |
1. Other comprehensive income that can be reclassified into gains/losses under equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income | ||
4. Provision for credit impairment of other debt investments | ||
5.Cash flow hedging reserve | ||
6. Exchange differences arise from translation of foreign currency financial statements | -23,324,211.18 | 5,120,322.24 |
7. Others | ||
Items attributable to non-controlling shareholders | ||
VII. Total comprehensive income | 667,379,392.59 | 646,576,872.49 |
Items attributable to the owners of the parent company | 642,557,053.22 | 621,950,958.01 |
Items attributable to non-controlling shareholders | 24,822,339.37 | 24,625,914.48 |
VIII. Earnings per share (EPS): | ||
(I) Basic EPS | 0.3773 | 0.3525 |
(II) Diluted EPS | 0.3773 | 0.3525 |
Lyu Liang Legal representative | Lyu Liang Officer in charge of accounting | Qiu Renbo Head of accounting department |
4. Parent company income statement for the three months ended September 30
th, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Operating revenue | 4,607,441,402.20 | 5,182,126,633.77 |
Less: Operating cost | 4,366,431,693.60 | 4,978,946,269.84 |
Taxes and surcharges | 5,268,972.67 | 1,967,436.65 |
Selling expenses | 97,572,966.90 | 88,177,037.72 |
Administrative expenses | 31,720,797.46 | 28,005,562.61 |
R&D expenses | 0.00 | |
Financial expenses | -6,807,435.28 | 22,606,668.04 |
Including: Interest expenses | 12,200,806.96 | 25,985,617.43 |
Interest income | 18,205,578.99 | 3,655,651.88 |
Add: Other income | 3,177,179.06 | 1,200,268.73 |
Investment income (or less: losses) | 8,733,465.58 | 20,009,420.27 |
Including: Investment income from associates and joint ventures | ||
Gains from the derecognition of financial assets measured at amortized cost | ||
Gains on net exposure to hedging risk (or less: losses) | ||
Gains on changes in fair value (or less: losses) | ||
Credit impairment loss (less: losses) | ||
Assets impairment loss (less: losses) | ||
Gains on asset disposal (or less: losses) | 4,930.77 | 3,296,727.00 |
II. Operating profit (or less: losses) | 125,169,982.26 | 86,930,074.91 |
Add: Non-operating revenue | 872.72 | 3,131,226.80 |
Less: Non-operating expenditures | 24,123.71 | 1,248,362.78 |
III. Profit before tax (or less: total loss) | 125,146,731.27 | 88,812,938.93 |
Less: Income tax | 30,866,682.81 | 17,289,210.53 |
IV. Net profit (or less: net loss) | 94,280,048.46 | 71,523,728.40 |
(I) Net profit from continuing operations (or less: net loss) | 94,280,048.46 | 71,523,728.40 |
(II) Net profit from discontinued operations (or less: net loss) | ||
V. Other comprehensive income after tax | ||
(I) Not to be reclassified subsequently to profit or loss | ||
1.Changes in remeasurement on the net defined benefit plan | ||
2. Items under equity method that will not be reclassified to profit or loss | ||
3. Changes in fair value of other equity instrument investments | ||
4. Changes in fair value of own credit risk | ||
5. Others | ||
(II) To be reclassified subsequently to profit or loss | ||
1. Other comprehensive income that can be reclassified into gains/losses under equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income |
Items | Amount incurred during the current period | Amount incurred during the previous period |
4. Provision for credit impairment of other debt investments | ||
5.Cash flow hedging reserve | ||
6. Exchange differences arise from translation of foreign currency financial statements | ||
7. Others | ||
VI. Total comprehensive income | 94,280,048.46 | 71,523,728.40 |
VII. Earnings per share (EPS): | ||
(I) Basic EPS | ||
(II) Diluted EPS |
5. Consolidated income statement for the nine months ended September 30
th
, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Total operating revenue | 25,500,876,607.95 | 27,627,885,218.87 |
Including: Operating revenue | 25,500,876,607.95 | 27,627,885,218.87 |
Interest income | ||
Premium earned | ||
Revenue from handling charges and commission | ||
II. Total operating cost | 22,945,770,445.69 | 24,984,635,658.84 |
Including: Operating cost | 16,652,650,721.53 | 18,693,219,439.56 |
Interest expenses | ||
Handling charges and commission expenditures | ||
Surrender value | ||
Net payment of insurance claims | ||
Net provision of insurance policy reserve | ||
Premium bonus expenditures | ||
Reinsurance expenses | ||
Taxes and surcharges | 148,487,687.03 | 143,747,259.50 |
Selling expenses | 4,663,177,848.52 | 4,572,806,352.64 |
Administrative expenses | 775,033,097.55 | 773,295,251.59 |
R&D expenses | 689,897,925.27 | 712,227,234.86 |
Financial expenses | 16,523,165.79 | 89,340,120.69 |
Including: Interest expenses | 59,381,737.63 | 100,246,565.68 |
Interest income | 52,891,384.64 | 26,477,339.86 |
Add: Other income | 123,759,645.82 | 100,578,832.37 |
Investment income (or less: losses) | -20,950,134.64 | -11,732,842.99 |
Including: Investment income from associates and joint ventures | -9,025,650.76 | 8,763,938.51 |
Gains from the derecognition of financial assets measured at amortized cost | ||
Gains on foreign exchange (or less: losses) | ||
Gains on net exposure to hedging risk (or less: losses) |
Items | Amount incurred during the current period | Amount incurred during the previous period |
Gains on changes in fair value (or less: losses) | ||
Credit impairment loss (less: losses) | -29,841,283.63 | -64,662,855.38 |
Assets impairment loss (less: losses) | 4,216,269.24 | |
Gains on asset disposal (or less: losses) | 304,146,257.99 | 114,347,426.77 |
III. Operating profit (or less: losses) | 2,932,220,647.80 | 2,785,996,390.04 |
Add: Non-operating revenue | 16,504,085.99 | 9,904,357.05 |
Less: Non-operating expenditures | 26,367,259.87 | 25,280,163.60 |
IV. Profit before tax (or less: total loss) | 2,922,357,473.92 | 2,770,620,583.49 |
Less: Income tax | 462,041,510.71 | 465,973,627.74 |
V. Net profit (or less: net loss) | 2,460,315,963.21 | 2,304,646,955.75 |
(I) Categorized by the continuity of operations | ||
1. Net profit from continuing operations (or less: net loss) | 2,460,315,963.21 | 2,304,646,955.75 |
2. Net profit from discontinued operations (or less: net loss) | ||
(II) Categorized by the portion of equity ownership | ||
1. Net profit attributable to owners of parent company | 2,391,466,604.78 | 2,213,114,054.08 |
2. Net profit attributable to non-controlling shareholders | 68,849,358.43 | 91,532,901.67 |
VI. Other comprehensive income after tax | 21,024,507.92 | -2,398,004.37 |
Items attributable to the owners of the parent company | 21,024,507.92 | -2,398,004.37 |
(I) Not to be reclassified subsequently to profit or loss | 5,817,290.26 | |
1.Changes in remeasurement on the net defined benefit plan | ||
2. Items under equity method that will not be reclassified to profit or loss | ||
3. Changes in fair value of other equity instrument investments | 5,817,290.26 | |
4. Changes in fair value of own credit risk | ||
5. Others | ||
(II) To be reclassified subsequently to profit or loss | 15,207,217.66 | -2,398,004.37 |
1. Other comprehensive income that can be reclassified into gains/losses under equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income | ||
4. Provision for credit impairment of other debt investments | ||
5.Cash flow hedging reserve | ||
6. Exchange differences arise from translation of foreign currency financial statements | 15,207,217.66 | -2,398,004.37 |
7. Others | ||
Items attributable to non-controlling shareholders | ||
VII. Total comprehensive income | 2,481,340,471.13 | 2,302,248,951.38 |
Items attributable to the owners of the parent company | 2,412,491,112.70 | 2,210,716,049.71 |
Items attributable to non-controlling shareholders | 68,849,358.43 | 91,532,901.67 |
VIII. Earnings per share (EPS): | ||
(I) Basic EPS | 1.3667 | 1.2648 |
(II) Diluted EPS | 1.3667 | 1.2648 |
Lyu Liang Legal representative | Lyu Liang Officer in charge of accounting | Qiu Renbo Head of accounting department |
6. Parent company income statement for the nine months ended September 30
th
, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Operating revenue | 12,524,155,787.68 | 14,392,526,732.46 |
Less: Operating cost | 11,832,645,980.78 | 13,648,150,345.97 |
Taxes and surcharges | 17,516,737.10 | 11,915,143.04 |
Selling expenses | 274,326,909.83 | 291,307,268.26 |
Administrative expenses | 101,587,315.46 | 91,903,249.87 |
R&D expenses | ||
Financial expenses | 10,625,855.13 | 47,730,859.54 |
Including: Interest expenses | 50,099,348.96 | 65,869,669.49 |
Interest income | 37,642,861.40 | 19,423,488.79 |
Add: Other income | 13,219,874.83 | 3,975,252.18 |
Investment income (or less: losses) | 1,176,246,567.15 | 872,157,276.84 |
Including: Investment income from associates and joint ventures | ||
Gains from the derecognition of financial assets measured at amortized cost | ||
Gains on net exposure to hedging risk (or less: losses) | ||
Gains on changes in fair value (or less: losses) | ||
Credit impairment loss (less: losses) | 25,531,116.40 | -62,996,903.82 |
Assets impairment loss (less: losses) | ||
Gains on asset disposal (or less: losses) | -1,625.56 | 114,481,393.83 |
II. Operating profit (or less: losses) | 1,502,448,922.20 | 1,229,136,884.81 |
Add: Non-operating revenue | 4,903,192.05 | 6,333,924.40 |
Less: Non-operating expenditures | 6,705,472.84 | 5,584,454.90 |
III. Profit before tax (or less: total loss) | 1,500,646,641.41 | 1,229,886,354.31 |
Less: Income tax | 84,647,699.00 | 105,280,681.41 |
IV. Net profit (or less: net loss) | 1,415,998,942.41 | 1,124,605,672.90 |
(I) Net profit from continuing operations (or less: net loss) | 1,415,998,942.41 | 1,124,605,672.90 |
(II) Net profit from discontinued operations (or less: net loss) | ||
V. Other comprehensive income after tax | ||
(I) Not to be reclassified subsequently to profit or loss | ||
1.Changes in remeasurement on the net defined benefit plan | ||
2. Items under equity method that will not be reclassified to profit or loss | ||
3. Changes in fair value of other equity instrument investments | ||
4. Changes in fair value of own credit risk | ||
5. Others | ||
(II) To be reclassified subsequently to profit or loss |
Items | Amount incurred during the current period | Amount incurred during the previous period |
1. Other comprehensive income that can be reclassified into gains/losses under equity method | ||
2. Changes in fair value of other debt investments | ||
3. Amount of financial assets reclassified into other comprehensive income | ||
4. Provision for credit impairment of other debt investments | ||
5.Cash flow hedging reserve | ||
6. Exchange differences arise from translation of foreign currency financial statements | ||
7. Others | ||
VI. Total comprehensive income | 1,415,998,942.41 | 1,124,605,672.90 |
VII. Earnings per share (EPS): | ||
(I) Basic EPS | ||
(II) Diluted EPS |
7. Consolidated cash flow statement for the nine months ended September 30
th
, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Cash flows from operating activities: | ||
Cash receipts from sale of goods or rendering of services | 26,358,487,943.05 | 27,974,289,685.61 |
Net increase of client deposit and interbank deposit | ||
Net increase of central bank loans | ||
Net increase of loans from other financial institutions | ||
Cash receipts from original insurance contract premium | ||
Net cash receipts from reinsurance | ||
Net increase of policy-holder deposit and investment | ||
Cash receipts from interest, handling charges and commission | ||
Net increase of loans from others | ||
Net increase of repurchase | ||
Net cash receipts from agency security transaction | ||
Receipts of tax refund | 17,066,804.84 | 3,509,309.91 |
Other cash receipts related to operating activities | 862,918,296.18 | 910,566,277.20 |
Subtotal of cash inflows from operating activities | 27,238,473,044.07 | 28,888,365,272.72 |
Cash payments for goods purchased and services received | 17,188,966,687.14 | 19,475,142,964.99 |
Net increase of loans and advances to clients | ||
Net increase of central bank deposit and interbank deposit | ||
Cash payments for insurance indemnities of original insurance contracts | ||
Net increase of loans to others | ||
Cash payments for interest, handling charges and commission | ||
Cash payments for policy bonus | ||
Cash paid to and on behalf of employees | 1,623,091,615.04 | 1,392,446,790.07 |
Items | Amount incurred during the current period | Amount incurred during the previous period |
Cash payments for taxes and rates | 1,795,768,635.77 | 1,721,105,543.87 |
Other cash payments related to operating activities | 4,728,831,749.46 | 5,390,631,727.85 |
Subtotal of cash outflows from operating activities | 25,336,658,687.41 | 27,979,327,026.78 |
Net cash flows from operating activities | 1,901,814,356.66 | 909,038,245.94 |
II. Cash flows from investing activities: | ||
Cash receipts from withdrawal of investments | ||
Cash receipts from investment income | 900,000.00 | 900,000.00 |
Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | 349,442,817.74 | 44,373,345.73 |
Net cash receipts from the disposal of subsidiaries & other business units | ||
Other cash receipts related to investing activities | ||
Subtotal of cash inflows from investing activities | 350,342,817.74 | 45,273,345.73 |
Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 864,848,688.33 | 892,858,638.47 |
Cash payments for investments | 405,535,000.00 | 256,944,900.00 |
Net increase of pledged borrowings | ||
Net cash payments for the acquisition of subsidiaries & other business units | 1,199,793.01 | |
Other cash payments related to investing activities | 53,505,038.76 | |
Subtotal of cash outflows from investing activities | 1,270,383,688.33 | 1,204,508,370.24 |
Net cash flows from investing activities | -920,040,870.59 | -1,159,235,024.51 |
III. Cash flows from financing activities: | ||
Cash receipts from absorbing investments | 9,800,000.00 | |
Including: Cash received by subsidiaries from non-controlling shareholders as investments | ||
Cash receipts from borrowings | 2,044,165,545.94 | 1,564,929,901.12 |
Other cash receipts related to financing activities | 340,000,000.00 | 4,000,000.00 |
Subtotal of cash inflows from financing activities | 2,384,165,545.94 | 1,578,729,901.12 |
Cash payments for the repayment of borrowings | 2,161,566,863.78 | 1,522,743,554.14 |
Cash payments for distribution of dividends or profits and for interest expenses | 612,515,321.94 | 658,094,315.61 |
Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit | 49,000,000.00 | 50,512,000.00 |
Other cash payments related to financing activities | 357,318,045.74 | 18,080,734.99 |
Subtotal of cash outflows from financing activities | 3,131,400,231.46 | 2,198,918,604.74 |
Net cash flows from financing activities | -747,234,685.52 | -620,188,703.62 |
IV. Effect of foreign exchange rate changes on cash & cash equivalents | 4,496,816.65 | -7,776,333.09 |
V. Net increase in cash and cash equivalents | 239,035,617.20 | -878,161,815.28 |
Add: Opening balance of cash and cash equivalents | 2,231,771,546.50 | 2,398,709,506.06 |
VI. Closing balance of cash and cash equivalents | 2,470,807,163.70 | 1,520,547,690.78 |
8. Parent company cash flow statement for the nine months ended September 30
th, 2020
Unit: RMB
Items | Amount incurred during the current period | Amount incurred during the previous period |
I. Cash flows from operating activities: | ||
Cash receipts from sale of goods and rendering of services | 12,935,662,538.65 | 14,477,219,497.23 |
Receipts of tax refund | ||
Other cash receipts related to operating activities | 714,162,920.94 | 874,387,153.77 |
Subtotal of cash inflows from operating activities | 13,649,825,459.59 | 15,351,606,651.00 |
Cash payments for goods purchased and services received | 12,426,006,273.13 | 14,681,841,784.49 |
Cash paid to and on behalf of employees | 161,360,230.08 | 116,707,767.78 |
Cash payments for taxes and rates | 135,414,309.46 | 233,069,793.79 |
Other cash payments related to operating activities | 667,058,317.34 | 843,853,594.57 |
Subtotal of cash outflows from operating activities | 13,389,839,130.01 | 15,875,472,940.63 |
Net cash flows from operating activities | 259,986,329.58 | -523,866,289.63 |
II. Cash flows from investing activities: | ||
Cash receipts from withdrawal of investments | ||
Cash receipts from investment income | 601,000,000.00 | 432,512,000.00 |
Net cash receipts from the disposal of fixed assets, intangible assets and other long-term assets | 61,021.65 | 43,344,599.85 |
Net cash receipts from the disposal of subsidiaries & other business units | ||
Other cash receipts related to investing activities | 904,005,896.98 | 491,900,000.00 |
Subtotal of cash inflows from investing activities | 1,505,066,918.63 | 967,756,599.85 |
Cash payments for the acquisition of fixed assets, intangible assets and other long-term assets | 24,712,423.82 | 30,322,745.47 |
Cash payments for investments | 74,563,072.00 | 245,607,400.00 |
Net cash payments for the acquisition of subsidiaries & other business units | ||
Other cash payments related to investing activities | 661,640,800.00 | 736,750,000.00 |
Subtotal of cash outflows from investing activities | 760,916,295.82 | 1,012,680,145.47 |
Net cash flows from investing activities | 744,150,622.81 | -44,923,545.62 |
III. Cash flows from financing activities: | ||
Cash receipts from absorbing investments | ||
Cash receipts from borrowings | 1,290,940,316.60 | 701,857,401.68 |
Other cash receipts related to financing activities | 810,000,000.00 | 576,500,000.00 |
Subtotal of cash inflows from financing activities | 2,100,940,316.60 | 1,278,357,401.68 |
Cash payments for the repayment of borrowings | 1,415,944,581.11 | 674,787,776.40 |
Cash payments for distribution of dividends or profits and for interest expenses | 549,330,898.00 | 556,049,101.48 |
Other cash payments related to financing activities | 439,430,995.85 | 92,000,000.00 |
Subtotal of cash outflows from financing activities | 2,404,706,474.96 | 1,322,836,877.88 |
Net cash flows from financing activities | -303,766,158.36 | -44,479,476.20 |
IV. Effect of foreign exchange rate changes on cash and cash equivalents | 1,987,917.74 | 106,466.60 |
Items | Amount incurred during the current period | Amount incurred during the previous period |
V. Net increase in cash and cash equivalents | 702,358,711.77 | -613,162,844.85 |
Add: Opening balance of cash and cash equivalents | 893,929,724.56 | 1,384,560,116.18 |
VI. Closing balance of cash and cash equivalents | 1,596,288,436.33 | 771,397,271.33 |
II. Adjustments to financial statements
1. Adjustments to the comparative data in the financial statements at the beginning of the year due to thefirst adoption of the new accounting standards governing revenue and leases since 2020
√ Applicable □ N/A
Whether to adjust the balance sheet accounts at the beginning of the year
√ Applicable □ N/A
Consolidated Balance Sheet
Unit: RMB
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Current assets: | |||
Cash and bank balances | 2,402,730,395.39 | 2,402,730,395.39 | |
Settlement funds | |||
Loans to other banks | |||
Held-for-trading financial assets | |||
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 6,092,305,184.47 | 2,402,730,395.39 | |
Receivables financing | 683,884,625.14 | 683,884,625.14 | |
Advances paid | 363,246,612.94 | 363,246,612.94 | |
Premiums receivable | |||
Reinsurance accounts receivable | |||
Reinsurance reserve receivable | |||
Other receivables | 92,201,271.22 | 92,201,271.22 | |
Including: Interest receivable | |||
Dividend receivable | 815,965.44 | 815,965.44 | |
Financial assets under reverse repo | |||
Inventories | 4,038,975,496.93 | 4,038,975,496.93 | |
Contract assets | |||
Assets as held for sale | |||
Non-current assets due within one year | |||
Other current assets | 62,526,471.96 | 62,526,471.96 | |
Total current assets | 13,735,870,058.05 | 13,735,870,058.05 | |
Non-current assets: | |||
Loans and advances paid | |||
Debt investments |
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Other debt investments | |||
Long-term receivable | |||
Long-term equity investments | 222,595,018.54 | 222,595,018.54 | |
Other equity instrument investments | 241,675,712.05 | 222,595,018.54 | |
Other non-current financial assets | |||
Investment property | 21,701,908.75 | 21,701,908.75 | |
Fixed assets | 2,175,216,842.65 | 2,175,216,842.65 | |
Construction in progress | 1,829,808,233.19 | 1,829,808,233.19 | |
Productive biological assets | |||
Oil & gas assets | |||
Use right assets | |||
Intangible assets | 1,454,900,160.45 | 1,454,900,160.45 | |
Development expenditures | |||
Goodwill | 1,469,617,262.10 | 1,469,617,262.10 | |
Long-term prepayments | 12,289,677.31 | 12,289,677.31 | |
Deferred tax assets | 116,157,614.47 | 116,157,614.47 | |
Other non-current assets | 184,141,659.07 | 184,141,659.07 | |
Total non-current assets | 7,728,104,088.58 | 7,728,104,088.58 | |
Total assets | 21,463,974,146.63 | 21,463,974,146.63 | |
Current liabilities: | |||
Short-term borrowings | 655,549,973.27 | 655,549,973.27 | |
Central bank loans | |||
Loans from other banks | |||
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | 613,374,356.61 | 613,374,356.61 | |
Accounts payable | 3,789,054,234.58 | 3,789,054,234.58 | |
Advances received | 254,888,911.30 | 30,272,668.58 | -224,616,242.72 |
Contract liabilities | 224,616,242.72 | 224,616,242.72 | |
Financial liabilities under repo | |||
Absorbing deposit and interbank deposit | |||
Deposit for agency security transaction | |||
Deposit for agency security underwriting | |||
Employee benefits payable | 132,584,982.71 | 132,584,982.71 | |
Taxes and rates payable | 532,802,157.61 | 532,802,157.61 | |
Other payables | 1,365,152,290.99 | 1,365,152,290.99 | |
Including: Interest payable | |||
Dividend payable | 224,219.60 | 224,219.60 | |
Handling fee and commission payable | |||
Reinsurance accounts payable | |||
Liabilities classified as held for sale | |||
Non-current liabilities due within one year | 1,053,231,727.73 | 1,053,231,727.73 |
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Other current liabilities | |||
Total current liabilities | 8,396,638,634.80 | 8,396,638,634.80 | |
Non-current liabilities: | |||
Insurance policy reserve | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | 48,080,030.00 | 48,080,030.00 | |
Long-term employee benefits payable | |||
Provisions | 52,066,643.01 | 52,066,643.01 | |
Deferred income | 60,960,255.68 | 60,960,255.68 | |
Deferred tax liabilities | 39,604,343.27 | 39,604,343.27 | |
Other non-current liabilities | |||
Total non-current liabilities | 200,711,271.96 | 200,711,271.96 | |
Total liabilities | 8,597,349,906.76 | 8,597,349,906.76 | |
Equity: | |||
Share capital | 1,749,809,548.00 | 1,749,809,548.00 | |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | 2,158,080,661.07 | 2,158,080,661.07 | |
Less: Treasury shares | |||
Other comprehensive income | 22,792,488.80 | 22,792,488.80 | |
Special reserve | |||
Surplus reserve | 710,359,967.51 | 710,359,967.51 | |
General risk reserve | |||
Undistributed profit | 7,668,434,642.62 | 7,668,434,642.62 | |
Total equity attributable to the parent company | 12,309,477,308.00 | 12,309,477,308.00 | |
Non-controlling interest | 557,146,931.87 | 557,146,931.87 | |
Total equity | 12,866,624,239.87 | 557,146,931.87 | |
Total liabilities & equity | 21,463,974,146.63 | 21,463,974,146.63 |
Balance Sheet of the Parent Company
Unit: RMB
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Current assets: | |||
Cash and bank balances | 893,939,724.56 | 893,939,724.56 | |
Held-for-trading financial assets |
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Derivative financial assets | |||
Notes receivable | |||
Accounts receivable | 3,601,796,850.84 | 3,601,796,850.84 | |
Receivables financing | 102,285,661.94 | 102,285,661.94 | |
Advances paid | 183,776,687.98 | 183,776,687.98 | |
Other receivables | 857,127,207.17 | 857,127,207.17 | |
Including: Interest receivable | |||
Dividend receivable | |||
Inventories | 1,726,815,773.41 | 1,726,815,773.41 | |
Contract assets | |||
Assets classified as held for sale | |||
Non-current assets due within one year | |||
Other current assets | 4,529,331.87 | 4,529,331.87 | |
Total current assets | 7,370,271,237.77 | 7,370,271,237.77 | |
Non-current assets: | |||
Debt investments | |||
Other debt investments | |||
Long-term receivable | |||
Long-term equity investments | 4,809,521,228.65 | 4,809,521,228.65 | |
Other equity instrument investments | 92,108,957.26 | 92,108,957.26 | |
Other non-current financial assets | |||
Investment property | 8,591,809.18 | 8,591,809.18 | |
Fixed assets | 144,102,366.02 | 144,102,366.02 | |
Construction in progress | 15,728,406.26 | 15,728,406.26 | |
Productive biological assets | |||
Oil & gas assets | |||
Use right assets | |||
Intangible assets | 45,226,361.12 | 45,226,361.12 | |
Development expenditures | |||
Goodwill | |||
Long-term prepayments | 975,689.14 | 975,689.14 | |
Deferred tax assets | 48,849,165.52 | 48,849,165.52 | |
Other non-current assets | 8,076,419.28 | 8,076,419.28 | |
Total non-current assets | 5,173,180,402.43 | 5,173,180,402.43 | |
Total assets | 12,543,451,640.20 | 12,543,451,640.20 | |
Current liabilities: | |||
Short-term borrowings | 55,000,000.80 | 55,000,000.80 | |
Held-for-trading financial liabilities | |||
Derivative financial liabilities | |||
Notes payable | 81,036,745.94 | 81,036,745.94 | |
Accounts payable | 2,469,675,798.54 | 2,469,675,798.54 | |
Advances received | 52,914,932.34 | 6,087,558.59 | -46,827,373.75 |
Items | December 31st, 2019 | January 1st, 2020 | Adjustments |
Contract liabilities | 46,827,373.75 | 46,827,373.75 | |
Employee benefits payable | 3,203,215.95 | 3,203,215.95 | |
Taxes and rates payable | 32,881,935.68 | 32,881,935.68 | |
Other payables | 638,551,969.04 | 638,551,969.04 | |
Including: Interest payable | |||
Dividend payable | 224,219.60 | 224,219.60 | |
Liabilities as held for sale | |||
Non-current liabilities due within one year | 1,028,002,952.88 | 1,028,002,952.88 | |
Other current liabilities | |||
Total current liabilities | 4,361,267,551.17 | 4,361,267,551.17 | |
Non-current liabilities: | |||
Long-term borrowings | |||
Bonds payable | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Lease liabilities | |||
Long-term payables | |||
Long-term employee benefits payable | |||
Provisions | |||
Deferred income | 43,264,785.87 | 43,264,785.87 | |
Deferred tax liabilities | |||
Other non-current liabilities | |||
Total non-current liabilities | 43,264,785.87 | 43,264,785.87 | |
Total liabilities | 4,404,532,337.04 | 4,404,532,337.04 | |
Equity: | |||
Share capital | 1,749,809,548.00 | 1,749,809,548.00 | |
Other equity instruments | |||
Including: Preferred shares | |||
Perpetual bonds | |||
Capital reserve | 2,168,451,528.01 | 2,168,451,528.01 | |
Less: Treasury shares | |||
Other comprehensive income | 847,526.06 | ||
Special reserve | 847,526.06 | ||
Surplus reserve | 788,215,726.95 | 788,215,726.95 | |
Undistributed profit | 3,431,594,974.14 | 3,431,594,974.14 | |
Total equity | 8,138,919,303.16 | 8,138,919,303.16 | |
Total liabilities & equity | 12,543,451,640.20 | 12,543,451,640.20 |
2. Reason for the retrospective adjustments to the prior comparative data due to the first adoption of thenew accounting standards governing revenue and leases since 2020
□ Applicable √ N/A
III. Auditors’ report
Has the third quarterly report been audited?
□ Yes √ No
The third quarterly report has not been audited.
Huadong Medicine Co., Ltd.Chairman of the Board: Lyu Liang
October 27
th, 2020