Huadong Medicine Co., Ltd.The First Quarterly Report 2021
April 2021
Section I Important DeclarationThe Board of Directors, Board of Supervisors, directors, supervisors and seniormanagement of Huadong Medicine Co., Ltd. (hereinafter referred to as the“Company”) hereby guarantee that the information presented in this report isauthentic, accurate and complete and free of any false records, misleadingstatements or material omissions, and shall undertake individual and joint legalliabilities.All directors have attended the board of directors meeting to review thisquarterly report.Lv Liang, the Company’s legal representative and the officer in charge ofaccounting, and Qiu Renbo, head of accounting department (accountingsupervisor) hereby declare and guarantee that the financial statements in thisquarterly report are authentic, accurate and complete.According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listedcompanies have both Chinese or other language version of public notice, theyshould ensure the content of both versions are the same. In the case ofdiscrepancy, the original version in Chinese shall prevail.
Section II Company Profile
I. Key Accounting Data and Financial IndicatorsWhether the Company needs to perform retroactive adjustment or restatement of previous accounting data
□ Yes √ No
| The current reporting period | Same period last year | Change of the current reporting period over the same period last year | |
| Operating revenue (yuan) | 8,896,632,277.36 | 8,598,069,911.29 | 3.47% |
| Net profit attributable to shareholders of listed companies (yuan) | 758,380,756.56 | 1,147,278,457.64 | -33.90% |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains/losses (yuan) | 695,792,411.78 | 856,930,262.10 | -18.80% |
| Net cash flow from operating activities (yuan) | 302,314,164.48 | 218,779,623.89 | 38.18% |
| Basic earnings per share (yuan/share) | 0.4334 | 0.6557 | -33.90% |
| Diluted earnings per share (yuan/share) | 0.4334 | 0.6557 | -33.90% |
| Weighted average return on equity (ROE) | 5.04% | 8.89% | -3.85% |
| End of the current reporting period | End of last year | Change of the end of the current reporting period over the end of last year | |
| Total assets (yuan) | 26,096,806,585.74 | 24,201,348,154.75 | 7.83% |
| Net assets attributable to shareholders of listed companies (yuan) | 15,266,793,123.79 | 14,619,821,308.60 | 4.43% |
Items and amounts of non-recurring gains/losses
√ Applicable □ N/A
Unit: RMB yuan
| Item | Amount (from the beginning of the year to the end of the reporting period) | Note |
| Gains/losses on disposal of non-current assets (including the written-off part of the accrued assets impairment reserve) | 15,675.63 | |
| Government grants included in current gains/losses (excluding those closely related to operating activities, or regular government grants) | 76,459,624.41 |
| Other non-operating income or expenditure | -2,351,230.65 | |
| Less: Amount affected by income tax | 11,433,797.38 | |
| Amount affected by minority interest (after tax) | 101,927.23 | |
| Total | 62,588,344.78 | -- |
If the Company recognizes an item as a non-recurring gain/loss based on the “Interpretation Announcement on InformationDisclosure Criteria for Public Companies No. 1 – Non-Recurring Profit/Loss” or recognizes an item satisfying the definition ofnon-recurring profit/loss in the announcement as a recurring profit/loss, reasons should be specified.
□ Applicable √ N/A
No such case during the reporting period.
II. Total number of shareholders at the end of the reporting period and information of top 10shareholders
1. Total number of shareholders of common shares and number of shareholders of preferred shares withvoting rights restored, as well as information about top 10 shareholders
Unit: share
| Total number of shareholders of common shares at the end of the reporting period | 168,355 | Total number of shareholders of preferred shares whose voting rights have been restored at the end of the reporting period (if any) | 0 | |||
| Information about top 10 shareholders | ||||||
| Name | Nature | Shareholding ratio | Number of shares held | Number of shares held with sale restrictions | Pledged or frozen | |
| Status | Number | |||||
| China Grand Enterprises, Inc. | Domestic non-state-owned legal person | 41.77% | 730,938,157 | 0 | Pledged | 239,970,000 |
| Hangzhou Huadong Medicine Group Co., Ltd. | State-owned legal person | 15.69% | 274,620,000 | 0 | ||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 1.82% | 31,905,503 | 0 | ||
| China Securities Finance Co., Ltd. | Other | 1.27% | 22,186,818 | 0 | ||
| Huaxia Life Insurance Co., Ltd. - own funds | Other | 0.61% | 10,713,280 | 0 | ||
| National Social | Other | 0.45% | 7,926,311 | 0 | ||
| Security Fund Portfolio 602 | ||||||
| National Social Security Fund Portfolio 503 | Other | 0.34% | 6,000,000 | 0 | ||
| Basic Endowment Insurance Fund Portfolio 15041 | Other | 0.30% | 5,253,350 | 0 | ||
| #Yang Yushan | Domestic individual | 0.29% | 5,000,000 | 0 | ||
| #Chen Shaoming | Domestic individual | 0.22% | 3,764,388 | 0 | ||
| Shares held by the top 10 shareholders of Non- restricted shares | ||||||
| Name | Number of shares held without sale restrictions | Type of shares | ||||
| Type | Number | |||||
| China Grand Enterprises, Inc. | 730,938,157 | RMB common shares | 730,938,157 | |||
| Hangzhou Huadong Medicine Group Co., Ltd. | 274,620,000 | RMB common shares | 274,620,000 | |||
| Hong Kong Securities Clearing Company Ltd. | 31,905,503 | RMB common shares | 31,905,503 | |||
| China Securities Finance Co., Ltd. | 22,186,818 | RMB common shares | 22,186,818 | |||
| Huaxia Life Insurance Co., Ltd. - own funds | 10,713,280 | RMB common shares | 10,713,280 | |||
| National Social Security Fund Portfolio 602 | 7,926,311 | RMB common shares | 7,926,311 | |||
| National Social Security Fund Portfolio 503 | 6,000,000 | RMB common shares | 6,000,000 | |||
| Basic Endowment Insurance Fund Portfolio 15041 | 5,253,350 | RMB common shares | 5,253,350 | |||
| #Yang Yushan | 5,000,000 | RMB common shares | 5,000,000 | |||
| #Chen Shaoming | 3,764,388 | RMB common shares | 3,764,388 | |||
| Notes on relations and concerted actions among the shareholders mentioned above | The Company does not know whether the shareholders mentioned above are related parties with each other or whether they are acting-in-concert parties with each other. | |||||
| Notes on financing and securities | Hangzhou Huadong Medicine Group Co., Ltd., the second largest shareholder of the | |||||
| loan conducted by top 10 shareholders (if any) | Company, holds 288,000,000 shares of the Company, accounting for 16.46% of the total capital stock of the Company. As of the end of the reporting period, 13,380,000 shares of the Company have been transferred to China Securities Finance Corporation for loan. At the end of the current reporting period, Yang Yushan, the ninth shareholder of the Company, held 5,000,000 shares of the Company through financing and securities loan, Chen Shaoming, the tenth shareholder of the Company, held 3,651,388 shares of the Company through financing and securities loan. |
Does any of the Company’s top 10 shareholders of common shares or top 10 shareholders without sale restrictions on common sharesconduct any agreed repurchase transaction during the reporting period?
□ Yes √ No
No such case during the reporting period.
2. Total number of shareholders of preferred shares and information about top 10 shareholders ofpreferred shares
□ Applicable √ N/A
Section III Substantial MattersI. Changes in key financial data and financial indicators during the reporting period and theircauses
√ Applicable □ N/A
Unit: RMB yuan
| Balance sheet item | End of the period | Beginning of the period | Change rate | Notes on cause of changes |
| Accounts receivable financing | 578,065,866.37 | 828,659,217.25 | -30.24% | Mainly due to the increase of notes collection in the current period |
| Advance receipts | 356,122,946.06 | 250,916,482.07 | 41.93% | Mainly due to the increase of prepayment |
| Other receivables | 116,804,796.17 | 83,073,823.45 | 40.60% | Mainly due to the increase in provisional payments receivable |
| Other current assets | 51,201,382.80 | 85,654,691.58 | -40.22% | Mainly due to the decrease of input VAT to be deducted at the end of the period |
| Other non current assets | 931,645,777.92 | 712,069,194.08 | 30.84% | Mainly due to the increase in the prepayment of equipment purchase and intangible assets purchase at the end of the period |
| Notes payable | 981,406,149.63 | 554,336,058.71 | 77.04% | Mainly due to the increase of bill payment in the current period |
| Long term loan | 209,937,945.01 | 151,611,367.86 | 38.47% | Mainly due to the increase of long-term loans obtained in the current period |
| Income statement item | Amount of the current period | Amount of the previous period | Change rate | Notes on cause of changes |
| Management expenses | 277,542,542.53 | 196,704,190.05 | 41.10% | Mainly due to the low base in the same period of last year and the increase of salary in the current period |
| Financial expenses | 8,531,468.21 | 15,759,648.63 | -45.87% | Mainly due to the increase of interest income and the decrease of financing cost |
| Gains on assets disposal | 304,336.80 | 306,269,024.44 | -99.90% | 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 Mainly due to the disposal of the distribution rights and interests in the Western European market of related products of Sinclair, a British wholly-owned subsidiary of the company, in the same period of last year |
| investment income | -26,664,999.81 | -1,256,335.99 | -2022.44% | Mainly due to the increase of discount interest and |
the decrease of net profit of joint ventures in thecurrent periodOther income
| Other income | 76,459,624.41 | 20,044,478.23 | 281.45% | Mainly due to the increase of government subsidies |
| Net profit | 774,473,984.45 | 1,153,425,789.92 | -32.85% | Mainly due the higher income from asset disposal of subsidiaries in the same period of last year and the decrease of gross profit of subsidiaries affected by policies in the current period |
| Cash flow statement item | Amount of the current period | Amount of the previous period | Change rate | Notes on cause of changes |
| Net cash flows from operating activities | 302,314,164.48 | 218,779,623.89 | 38.18% | Mainly due to the increase of the collection in the current period |
| Net cash flows from investing activities | -486,980,878.94 | -21,112,417.22 | -2206.1% | Mainly due to the increase of equity investment funds in the current period and the transfer of distribution rights and interests of related products in Western European market of Sinclair, a wholly-owned subsidiary of the company in the previous period |
II. Progress and influence of significant events, and explanatory notes of corresponding solutions
□ Applicable √ N/A
Implementation progress of share repurchase
□ Applicable √ N/A
Progress in the implementation of reducing repurchased shares by centralized price bidding
□ Applicable √ N/A
III. Unfulfilled and overdue commitments from the related committed parties such as theCompany’s actual controller, shareholders, related parties, acquirer(s), and the Companyduring the reporting period
□ Applicable √ N/A
No such case during the reporting period.IV. Financial assets investment
1、Securities investment
√ Applicable □ N/A
Unit: RMB yuan
| Type of stock | Stock code | Stock for short | Initial investment cost | Accounting measurement | Book value at the beginni | Profit and loss from fair | Accumulative fair value | Purchase amount in the current | Selling amount in the current | Gain/loss during the | Book value at the end of the | Accounting item | Capital source |
| model | ng of the period | value changes in the current period | changes included in equity | period | period | reporting period | period | ||||||
| Domestic and overseas stock | RAPT | RAPT | 20,207,400.00 | Fair value measurement | 23,582,877.56 | 3,113,977.59 | 3,113,977.59 | 0.00 | 0.00 | 0.00 | 26,696,855.15 | Other equity instruments investment | Own funds |
| Total | 20,207,400.00 | -- | 23,582,877.56 | 3,113,977.59 | 3,113,977.59 | 0.00 | 0.00 | 0.00 | 26,696,855.15 | -- | -- | ||
| Date of announcement of the board of directors on securities investment approval | N/A | ||||||||||||
| Date of announcement of the board of shareholders on securities investment approval (if any) | N/A | ||||||||||||
Notes: In 2019, Huadong Medicine Investment Holding (Hong Kong) Co., Ltd., a subsidiary of the company, invested USD 3 millionto purchase 218102 series C-2 preferred shares of RAPT therapeutics, Inc. RAPT therapeutics, Inc was listed on Nasdaq StockExchange on October 30, 2019 (Stock Code: RAPT). As of the end of the reporting period, Huadong Medicine Investment Holding(Hong Kong) Co., Ltd. held 183002 shares, accounting for 0.74% of the total shares of RAPT therapeutics, Inc.
2、Derivatives investment
□ Applicable √ N/A
No derivative investment during the reporting period.
V. Progress of investment projects with raised funds
□ Applicable √ N/A
VI. Forecast of business performance from January to June in 2021
Warning and explanation of the reason that the accumulated net profit from the beginning of the year to the end of the next reportingperiod may be a loss or a substantial change compared with the same period of the previous year
□ Applicable √ N/A
VII. Major contracts for daily operation
□ Applicable √ N/A
VIII. Entrusted financial management
□ Applicable √ N/A
No entrusted financial management during the reporting period.
IX. Illegal external guarantee
□ Applicable √ N/A
No illegal external guarantee during the reporting period.
X. Non operating capital occupation of listed companies by controlling shareholders and theirrelated parties
□ Applicable √ N/A
No non operating capital occupation of listed companies by controlling shareholders and their related parties during the reportingperiod.Ⅺ. Registration form of receptions, including research, communication and interview,undertaken during the reporting period
√ Applicable □ N/A
| Date | Place | Method | Type of visitor | Reception target | Main contents of discussion and materials provided | Index of basic information of the research |
| February 18, 2021 | Company conference room | Communication by phone | Institution | CICC etc. | Huadong Medicine's self-immunity innovative drug introduction and overseas medical beauty energy source company acquisition investor exchange meeting | Please refer to the "Record of Investor Relations Activities on February 18, 2021" published by the company on the Shenzhen Stock Exchange Interactive Easy website and cninfo.com.cn for details. |
| February 25, 2021 | Company conference room | Communication by phone | Institution | Haitong Pharmaceutical, Huatai Securities, etc. | Investor Exchange Meeting | Please refer to the "Record of Investor Relations Activities on February 25, 2021" |
Ⅻ. Overview of the Company's operations in the first quarter of 2021
（1）Overview of operations
During the reporting period, the Company achieved an operating revenue of 8.897 billion yuan,with a year-on-year increase of 3.47%; The net profit attributable to shareholders of listedcompanies was 758 million yuan with a year-on-year decrease of 33.9%; The net profit attributableto shareholders of listed companies after deducting non recurring profit and loss was 696 millionyuan with a year-on-year decrease of 18.80%; The core subsidiary, Zhongmei Huadong, had astable overall operation. Affected by the price reduction of some products, it realized an operatingrevenue of 3.092 billion yuan with a year-on-year decrease of 14.58% and a month on monthincrease of 38.61%; The net profit was 730 million yuan with a year-on-year decrease of 14.60%and a month on month increase of 85.30%; Both the pharmaceutical business and domestic medicalaesthetics business showed recovery growth over the same period. The operating income of thepharmaceutical business during the reporting period increased by 16.0% year-on-year. The incomefrom the holding subsidiary Huadong Ningbo medical aesthetics business increased by 63.3%.Although the overseas new crown epidemic has not ended, the British Sinclair company’s operating
| published by the company on the Shenzhen Stock Exchange Interactive Easy website and cninfo.com.cn for details. | ||||||
| March 3, 2021 | Company conference room | Communication by phone | Institution | Industrial Securities, Huatai Securities, etc. | Investor Exchange Meeting | Please refer to the "Record of Investor Relations Activities on March 3, 2021" published by the company on the Shenzhen Stock Exchange Interactive Easy website and cninfo.com.cn for details. |
income still showed a recovery trend, with a year-on-year increase of 12.7%.
During the reporting period, the Company accelerated R&D work and continued to increaseR&D investment. The pharmaceutical industry R&D investment totaled 283 million yuan with ayear-on-year increase of 2.3%.The main reasons for the year-on-year decrease in the Company’s net profit during thereporting period were as follows: (1) The revenue and gross profit of Acarbose Tablets, the mainproduct of Zhongmei Huadong, both decreased significantly compared with those before theimplementation of the national centralized procurement in the previous reporting period (AcarboseTablets began to fully implement national centralized procurement in April last year, and will not beaffected by centralized procurement in the first quarter of 2020); (2) After the successful negotiationof the price reduction of the National Medical Insurance contract in December 2020, the adjustedprice of Bailing Capsule (price reduction 33.8%) began to be officially implemented nationwide onMarch 1, 2021; (3) The company's non-recurring gains and losses in the first quarter of 2020 were290 million yuan, including the transfer of product regional distribution rights by the Britishsubsidiary Sinclair to Galderma, which obtained a net income of 30.65 million pounds and greatlyincreased the Company's overall income during the reporting period. No such matters occurredduring the reporting period, and other non-recurring gains and losses totaled 63 million yuan,resulting in a further increase in the year-on-year decrease in net profit attributable to shareholdersof listed companies.With the normalization of centralized procurement and the promotion of internal and externalsales models, the Company will further deepen innovation and international transformation workand strategy implementation, and accelerate the transformation of internal business units from costcenters to profit centers. Based on the advantages of the Company's various business segments,while comprehensively improving profitability, it also enhances its own comprehensivecompetitiveness and strives to achieve the goal of full-year profit growth in 2021.
（2）Overview of main work
1. Pharmaceutical industry
Up to the release of the report, the Company's innovative drug business has ushered in a number
of major milestones. Clinical trial application for class 1 new drug IMGN853 (MirvetuximabSoravtansine, a new antibody coupled drug for the treatment of ovarian cancer) was approved by theNational Medical Products Administration (NMPA), which planned to carry out an internationalmulticenter phase III study and a phase I study to evaluate the safety, tolerance and pharmacokineticsin Chinese adult patients in the second quarter; Clinical trial application for class 1 new drug MB-102injection, a fluorescent tracer used to measure glomerular filtration rate, was accepted; Reached anexclusive clinical development and commercialization agreement with Provention Bio and obtainedexclusive clinical development and commercialization rights for two clinical indications of thebispecific antibody PRV-3279 in Greater China. One is a phase I study in the US for the treatmentof systemic lupus erythematosus, and the other is a preclinical study in the US for the prevention orreduction of immunogenicity of gene therapy.
The Company and Fuguang Hongxin Pharmaceutical Industry Fund jointly invested 35 millionyuan to make equity investment in Novacyte Therapeutics, a drug research and developmentplatform company focusing on ADC technology. According to the agreement, the Company has theright to enjoy the preferential transfer right of its products in development before 2026. Thecompany acquired a total of 75% equity of DoerBio at 487.5 million yuan and became itscontrolling shareholder. DoerBio is a platform-based R&D enterprise engaged in the developmentof innovative biomacromolecule antibody drugs with independent intellectual property rights inChina, and has global rights and interests in all products under research. Among them, one drugcandidate for the treatment of gastric cancer and two drug candidates for the treatment of metabolicdiseases such as type 2 diabetes and NASH (non-alcoholic fatty liver) are planned to submit clinicaltrial applications in China in 2021.
Since 2019, Huadong Medicine has successively invested, controlled, and incubated a numberof domestic biotechnology companies with leading technology, including investment in peptidetechnology platform company Peg-Bio, antibody company Qyuns Biotech which focuses onimmune diseases, Novacyte Therapeutics which has ADC linker and coupling technology, HuidaBiotech which has developed a full product line of ADC drug toxin raw materials, and themulti-antibody platform company DoerBio. Through a series of investment and mergers, Huadong
Medicine R&D ecosystem is gradually formed. The company will integrate and make full use of thecomprehensive research and development strength of the above platform, continuously develop newantibodies and peptides based on the superior targets and the specific clinical needs of thecompany's core therapeutic fields, and do a good job in the international layout.
2. Pharmaceutical business
During the reporting period, the pharmaceutical business of the Company accelerated thechannel reform of "intra-hospital transfer to out-hospital, offline transfer to online", repositioned theretail market, focused on the development of DTP, in-hospital side-store and featured outpatientdepartment, realized the double dip of variety and management, and created a new developmentpattern of "online and offline interaction". Through the self-built platform and entered the onlinepublic platform, actively expand the Internet marketing business. It has also established the firstInternet hospital in Huadong Medicine, officially entering the new field of medical services of"Internet + chronic disease management". It will integrate hospital resources through the Internetplatform, manage patients inside and outside the hospital, and actively explore a new mode ofhealth management marketing service oriented to the whole life cycle.Pharmaceutical business continued to increase innovation business. Huadong PharmaceuticalSupply Chain Management (Hangzhou) Co., Ltd., a wholly-owned subsidiary of the company, hasobtained the first express business license of pharmaceutical cold chain enterprise in ZhejiangProvince issued by Zhejiang Postal Administration, and obtained the third-party storage andtransportation vaccine service qualification from Zhejiang Center for Disease Control andPrevention, which is the exclusive service in Zhejiang Province.
3. Aesthetic medicine business
As of the end of the reporting period, Sinclair, the global operation center of the Company'saesthetic medicine, has completed all acquisitions of Spanish energy source equipment companyHigh Tech. This is the Company's first overseas merger in the same industry and an importantmilestone in the implementation of Company's globalization strategy. In April this year, theCompany's global exclusive collagen stimulant long-acting microsphere Ellanse
?
was approved bythe NMPA and will officially enter the Chinese mainland market in the second half of the year.
The Company continues to accelerate the progress of the clinical registration of other coreaesthetic medicine products in China. On February 10th, the absorbable embedding productSilhouette
?
Instalift
?
from Sinclair for the lifting of mid-face tissues, successfully passed the recordof the Ministry of Science and Technology Department of Genetics, and officially entered theregistration clinical research stage. At present, the enrollment of subjects is progressing smoothly.This product was certified by the U.S. FDA in 2015 and is currently the only absorbable embeddingproduct approved by the U.S. FDA for lifting mid-face tissue.
The new high-end lidocaine-containing hyaluronic acid filler MaiLi
?series products usingOXIFREE? patented technology and process have been registered in the Chinese market and willbe launched in the European market in the first half of 2021. Sinclair’s newly acquired SpanishHigh Tech company’s cold-fat-melting product Cooltech Define has obtained the EU CEcertification, and the registration in the Chinese market is under active preparations. Titania, aninnovative RF product under development for skin tightening and body shaping, plans to obtain theEuropean Union CE certification in the fourth quarter of this year, and will continue to be marketedglobally after approval.
Glacial
?
Spa (F0), a cold-touch beauty instrument from R2 Company, is actively preparing forsales in China; Glacial
?
Rx (F1), a frozen freckle medical device, is proceeding in an orderlymanner in registration in China; F0 and F1 have launched the Asia-Pacific market Registration work:
F0 has been approved for listing in Korea and has submitted a listing application in Taiwan, whichis expected to obtain permission in 2021; F1 is preparing to submit listing applications forSingapore, Indonesia, and Malaysia.The Company is paying close attention to the latest policy issued by the National Developmentand Reform Commission on supporting the development of high-end medical beauty industry inHainan. The policy proposed that "Aesthetic medical institutions in the Lecheng Pioneer Zone canuse the medical aesthetics products listed in the United States, the European Union, Japan and othercountries or regions in batches”. The Company currently has a number of non-invasive andminimally invasive medical products listed in mainstream markets or regions such as the UnitedStates, the European Union, and other areas that meet the direction encouraged by the policy. The
above new policy will help the Company's international advanced products quickly enter thecountry. The Company is formulating the registration work plan for medical aesthetics products thatmeet the policy encouragement in Hainan, and will actively promote the implementation workaccording to the latest national policy, with a view to realizing the listing and sales in Hainan PilotZone as soon as possible.
Section IV Financial StatementsI. Financial Statements
1. Consolidated balance sheet
Prepared by Huadong Medicine Co., Ltd.
March 31, 2021
Unit: RMB yuan
| Item | March 31, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 3,129,717,110.39 | 3,198,080,997.82 |
| Settlement reserve | ||
| Lending to other banks and other financial institutions | ||
| Financial assets for trade | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 7,729,847,991.24 | 6,137,675,568.82 |
| Accounts receivable financing | 578,065,866.37 | 828,659,217.25 |
| Advance payments | 356,122,946.06 | 250,916,482.07 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 121,000,462.54 | 87,269,489.82 |
| Including: Interests receivable | ||
| Dividends receivable | 4,195,666.37 | 4,195,666.37 |
| Financial assets purchased for resale | ||
| Inventories | 4,184,900,223.81 | 4,067,635,254.80 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 51,201,382.80 | 85,654,691.58 |
| Total current assets | 16,150,855,983.21 | 14,655,891,702.16 |
| Non-current assets: | ||
| Loans and prepayments issuance | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 944,226,232.95 | 850,072,053.02 |
| Other equity instrument investments | 228,567,097.64 | 225,453,120.05 |
| Other non-current financial assets | ||
| Real estate properties for investment | 17,530,616.51 | 17,792,735.95 |
| Fixed assets | 2,606,236,889.11 | 2,420,366,582.92 |
| Constructions in progress | 2,015,024,914.70 | 2,240,201,926.65 |
| Biological assets for production | ||
| Oil & gas assets | ||
| Right-of-use assets | 152,763,198.46 | |
| Intangible assets | 1,434,653,824.20 | 1,463,242,463.99 |
| Development expenditures | ||
| Goodwill | 1,469,617,262.10 | 1,469,617,262.10 |
| Long-term unamortized expenses | 7,855,014.54 | 8,811,339.43 |
| Deferred income tax assets | 137,829,774.40 | 137,829,774.40 |
| Other non-current assets | 931,645,777.92 | 712,069,194.08 |
| Total non-current assets | 9,945,950,602.53 | 9,545,456,452.59 |
| Total assets | 26,096,806,585.74 | 24,201,348,154.75 |
| Current liabilities: | ||
| Short-term borrowing | 1,487,602,162.22 | 1,416,932,884.87 |
| Borrowing from the Central bank | ||
| Borrowing from other banks and other financial institutions | ||
| Financial liabilities for trade | ||
| Derivative financial liabilities | ||
| Notes payable | 981,406,149.63 | 554,336,058.71 |
| Accounts payable | 4,028,559,295.74 | 3,947,044,331.68 |
| Advance receipts | 684,383.46 | 951,926.56 |
| Contract liabilities | 165,135,518.26 | 94,384,629.77 |
| Financial assets sold for repurchase | ||
| Absorbing deposits and due from banks | ||
| Receipts for buying and selling securities as proxy | ||
| Receipts for underwriting securities as proxy | ||
| Employee benefits payable | 122,357,260.82 | 152,106,819.91 |
| Taxes and fees payable | 693,879,850.88 | 571,792,475.80 |
| Other payables | 2,108,650,934.60 | 1,817,529,820.99 |
| Including: Interests payable | ||
| Dividends payable | 224,219.60 | 224,219.60 |
| Handling fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 51,156,977.60 | 67,813,886.68 |
| Other current liabilities | 20,343,897.23 | 10,786,034.37 |
| Total current liabilities | 9,659,776,430.44 | 8,633,678,869.34 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowing | 209,937,945.01 | 151,611,367.86 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 142,315,707.93 | |
| Long-term payables | 26,084,710.58 | 26,812,354.90 |
| Long-term employee benefits payable | ||
| Provision | 38,416,223.54 | 39,467,829.23 |
| Deferred gains | 89,060,824.26 | 81,628,032.54 |
| Deferred income tax liabilities | 88,738,187.41 | 88,738,187.41 |
| Other non-current liabilities |
| Total non-current liabilities | 594,553,598.73 | 388,257,771.94 |
| Total liabilities | 10,254,330,029.17 | 9,021,936,641.28 |
| Ownership interest: | ||
| 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 | -121,155,906.94 | -2,191,069.45 |
| Special reserve | ||
| Surplus reserve | 861,680,578.42 | 861,680,578.42 |
| General risk reserve | ||
| Undistributed profit | 10,618,378,243.24 | 9,852,441,590.56 |
| Total ownership interest attributable to the parent company | 15,266,793,123.79 | 14,619,821,308.60 |
| Minority interest | 575,683,432.78 | 559,590,204.87 |
| Total ownership interest | 15,842,476,556.57 | 15,179,411,513.47 |
| Total liabilities & ownership interest | 26,096,806,585.74 | 24,201,348,154.75 |
Legal representative: Lv LiangOfficer in charge of accounting: Lv LiangHead of accounting department : Qiu Renbo
2. Balance sheet of the parent company
Unit: RMB yuan
| Item | March 31, 2021 | December 31, 2020 |
| Current assets: | ||
| Monetary funds | 1,927,952,018.47 | 1,889,264,142.30 |
| Financial assets for trade | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 4,605,456,017.98 | 3,287,882,027.51 |
| Accounts receivable financing | 140,562,428.19 | 214,871,707.01 |
| Advance payments | 151,868,978.67 | 121,268,106.62 |
| Other receivables | 831,426,696.13 | 798,152,353.96 |
| Including: Interests receivable | ||
| Dividends receivable | 3,363,380.00 | 3,363,380.00 |
| Inventories | 2,048,980,648.83 | 1,845,977,070.46 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 178,925.49 | |
| Total current assets | 9,706,425,713.76 | 8,157,415,407.86 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 4,926,372,288.65 | 4,847,172,288.65 |
| Other equity instrument investments | 94,312,742.49 | 94,312,742.49 |
| Other non-current financial assets | ||
| Real estate properties for investment | 8,009,018.38 | 8,125,576.54 |
| Fixed assets | 160,483,855.83 | 159,486,234.04 |
| Constructions in progress | 1,675,593.95 | 342,161.41 |
| Biological assets for production | ||
| Oil & gas assets | ||
| Right-of-use assets | 17,789,020.23 | |
| Intangible assets | 55,280,981.38 | 56,448,575.54 |
| Development expenditures | ||
| Goodwill | ||
| Long-term unamortized expenses | 570,028.87 | 645,902.07 |
| Deferred income tax assets | 45,918,388.57 | 45,918,388.57 |
| Other non-current assets | 32,979,221.51 | 96,882,664.08 |
| Total non-current assets | 5,343,391,139.86 | 5,309,334,533.39 |
| Total assets | 15,049,816,853.62 | 13,466,749,941.25 |
| Current liabilities: | ||
| Short-term borrowing | 890,894,904.44 | 930,813,369.36 |
| Financial liabilities for trade | ||
| Derivative financial liabilities | ||
| Notes payable | 375,592,591.45 | 180,042,270.63 |
| Accounts payable | 2,501,142,155.61 | 2,421,476,904.57 |
| Advance receipts | ||
| Contract liabilities | 77,103,416.11 | 32,577,236.92 |
| Employee benefits payable | 3,626,281.84 | 8,530,961.48 |
| Taxes and fees payable | 84,310,788.28 | 154,676,067.87 |
| Other payables | 1,801,418,576.73 | 518,390,330.44 |
| Including: Interests payable | ||
| Dividends payable | 224,219.60 | 224,219.60 |
| Liabilities held for sale | ||
| Non-current liabilities due within one year | ||
| Other current liabilities | 9,938,658.37 | 4,273,258.99 |
| Total current liabilities | 5,744,027,372.83 | 4,250,780,400.26 |
| Non-current liabilities: | ||
| Long-term borrowing | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 16,349,880.61 | |
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred gains | 40,057,442.22 | 40,698,910.95 |
| Deferred income tax liabilities | 10,888,106.00 | 10,888,106.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 67,295,428.83 | 51,587,016.95 |
| Total liabilities | 5,811,322,801.66 | 4,302,367,417.21 |
| Ownership interest: | ||
| 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 | 3,051,311.29 | 3,051,311.29 |
| Special reserve | ||
| Surplus reserve | 939,536,337.86 | 939,536,337.86 |
| Undistributed profit | 4,377,645,326.80 | 4,303,533,798.88 |
| Total ownership interest | 9,238,494,051.96 | 9,164,382,524.04 |
| Total liabilities & ownership interest | 15,049,816,853.62 | 13,466,749,941.25 |
3. Consolidated income statement
Unit: RMB yuan
| Item | Amount incurred during the current period | Amount incurred during the previous period |
| I. Total operating income | 8,896,632,277.36 | 8,598,069,911.29 |
| Including: Operating income | 8,896,632,277.36 | 8,598,069,911.29 |
| Interests received | ||
| Premiums earned | ||
| Handling fees and commissions received | ||
| II. Total operating cost | 8,007,420,920.98 | 7,564,443,071.57 |
| Including: Operating cost | 5,805,133,494.78 | 5,120,894,107.30 |
| Interests paid | ||
| Handling fees and commissions paid | ||
| Surrender value | ||
| Net payment of insurance claims | ||
| Net appropriation of policy reserve | ||
| Policy dividends paid | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 47,690,370.04 | 56,323,252.14 |
| Selling expenses | 1,648,517,354.06 | 1,911,431,524.11 |
| Administrative expenses | 277,542,542.53 | 196,704,190.05 |
| R&D expenses | 220,005,691.36 | 263,330,349.34 |
| Financial expenses | 8,531,468.21 | 15,759,648.63 |
| Including: Interests paid | 21,152,531.52 | 26,067,525.96 |
| Interests received | 19,057,526.99 | 13,915,252.93 |
| Add: Other gains | 76,459,624.41 | 20,044,478.23 |
| Investment gains (Losses are indicated by “-”) | -26,664,999.81 | -1,256,335.99 |
| Including: Investment gains from associates and joint ventures | -11,551,820.09 | 2,349,891.83 |
| Gains from the derecognition of financial assets measured at amortized cost | ||
| Gains on exchange (Losses are indicated by “-”) | ||
| Gains on net exposure hedging (Losses are indicated by “-”) | ||
| Gains on changes in fair value (Losses are indicated by “-”) | ||
| Credit impairment loss (Losses are indicated by “-”) | ||
| Assets impairment loss (Losses are indicated by “-”) | ||
| Gains on assets disposal (Losses are indicated by “-”) | 304,336.80 | 306,269,024.44 |
| III. Operating profit (Losses are indicated by “-”) | 939,310,317.78 | 1,358,684,006.40 |
| Add: Non-operating income | 338,562.61 | 3,389,386.17 |
| Less: Non-operating expenditure | 3,024,042.00 | 8,912,738.92 |
| IV. Total profit (Total losses are indicated by “-”) | 936,624,838.39 | 1,353,160,653.65 |
| Less: Income tax expenses | 162,150,853.94 | 199,734,863.73 |
| V. Net profit (Net losses are indicated by “-”) | 774,473,984.45 | 1,153,425,789.92 |
| (I) Categorized by the continuity of operations | ||
| 1. Net profit from continued operations (Net deficit is indicated by “-”) | 774,473,984.45 | 1,153,425,789.92 |
| 2. Net profit from discontinued |
| operations (Net deficit is indicated by “-”) | ||
| (II) Categorized by attribution of the ownership | ||
| 1. Net profit attributable to owners of the parent company | 758,380,756.56 | 1,147,278,457.64 |
| 2. Gains/losses of minority shareholders | 16,093,227.89 | 6,147,332.28 |
| VI. Net amount after tax of other comprehensive income | 118,964,837.49 | 25,505,735.47 |
| Net amount after tax of other comprehensive income attributable to owners of the parent company | 118,964,837.49 | 25,505,735.47 |
| (I) Other comprehensive income that cannot be reclassified into gains/losses | 3,113,977.59 | -1,372,747.73 |
| 1. Changes in remeasurement on the defined benefit plan | ||
| 2. Other comprehensive income that cannot be reclassified into gains/losses under equity method | ||
| 3. Changes in fair value of other equity instrument investments | 3,113,977.59 | -1,372,747.73 |
| 4. Changes in fair value of credit risk of the enterprise | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into gains/losses | 115,850,859.90 | 26,878,483.20 |
| 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. Credit impairment reserve of other debt investments | ||
| 5. Cash flow hedging reserve |
| 6. Exchange differences arise from translation of foreign currency financial statements | 115,850,859.90 | 26,878,483.20 |
| 7. Others | ||
| Net amount after tax of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 893,438,821.94 | 1,178,931,525.39 |
| Total comprehensive income attributable to owners of the parent company | 877,345,594.05 | 1,172,784,193.11 |
| Total comprehensive income attributable to minority shareholders | 16,093,227.89 | 6,147,332.28 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS | 0.4334 | 0.6557 |
| (II) Diluted EPS | 0.4334 | 0.6557 |
As for enterprise merger under the same control in the current period, the net profit generated by the merged party before the mergeris 0 yuan, and that generated during the previous period is 0 yuan.
Legal representative: Lv LiangOfficer in charge of accounting: Lv LiangHead of accounting department : Qiu Renbo
4. Income statement of the parent company
Unit: RMB yuan
| Item | Amount incurred during the current period | Amount incurred during the previous period |
| I. Operating income | 4,411,190,493.22 | 3,694,664,751.43 |
| Less: Operating cost | 4,169,998,953.67 | 3,503,394,474.09 |
| Taxes and surcharges | 2,157,678.68 | 1,742,409.45 |
| Selling expenses | 100,670,963.76 | 85,694,504.17 |
| Administrative expenses | 44,818,463.76 | 34,825,269.77 |
| R&D expenses | ||
| Financial expenses | 3,573,509.34 | 14,360,429.84 |
| Including: Interests paid | 15,131,329.65 | 21,895,125.22 |
| Interests received | 11,912,012.50 | 5,644,762.49 |
| Add: Other gains | 2,727,556.12 | 5,462,052.44 |
| Investment gains (Losses are indicated by “-”) | 6,273,981.02 | 1,132,672,992.82 |
| Including: Investment gains from associates and joint ventures | ||
| Income from the derecognition of financial assets measured at amortized cost (Losses are indicated by “-”) | ||
| Gains on net exposure hedging (Losses are indicated by “-”) | ||
| Gains on changes in fair value (Losses are indicated by “-”) | ||
| Credit impairment loss (Losses are indicated by “-”) | ||
| Assets impairment loss (Losses are indicated by “-”) | ||
| Gains on assets disposal (Losses are indicated by “-”) | -19,470.99 | -7,754.30 |
| II. Operating profit (Losses are indicated by “-”) | 98,952,990.16 | 1,192,774,955.04 |
| Add: Non-operating income | 1,823.74 | 2,525,818.53 |
| Less: Non-operating expenditure | 224,624.78 | 2,532,343.76 |
| III. Total profit (Total losses are indicated by “-”) | 98,730,189.12 | 1,192,768,429.81 |
| Less: Income tax expenses | 24,621,857.52 | 16,817,107.45 |
| IV. Net profit (Net losses are indicated by “-”) | 74,108,331.60 | 1,175,951,322.36 |
| (I) Net profit from continued operations (Net losses are indicated by “-”) | 74,108,331.60 | 1,175,951,322.36 |
| (II) Net profit from discontinued operations (Net deficit is indicated by “-”) | ||
| V. Net amount after tax of other comprehensive income | ||
| (I) Other comprehensive income that cannot be reclassified into gains/losses | ||
| 1. Changes in |
| remeasurement on the defined benefit plan | ||
| 2. Other comprehensive income that cannot be reclassified into gains/losses under equity method | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of credit risk of the enterprise | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into gains/losses | ||
| 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. Credit impairment reserve 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 | 74,108,331.60 | 1,175,951,322.36 |
| VII. Earnings per share (EPS): | ||
| (I) Basic EPS | ||
| (II) Diluted EPS |
5. Consolidated cash flow statement
Unit: RMB yuan
| Item | Amount incurred during the current period | Amount incurred during the previous period |
| I. Cash flows from operating activities: | ||
| Cash from the sale of goods and provision of services | 8,756,095,736.42 | 7,665,300,254.21 |
| Net increase in customer deposits and due from banks | ||
| Net increase in borrowing from the central bank | ||
| Net increase in borrowing from other financial institutions | ||
| Cash from the premium of the original insurance policy | ||
| Net cash from reinsurance | ||
| Net increase in deposits and investment of the insured | ||
| Cash from interests, handling fees and commissions | ||
| Net increase in borrowing from other banks and other financial institutions | ||
| Net increase in funds for repurchase | ||
| Net cash received for buying and selling securities as proxy | ||
| Tax refund received | 625,547.43 | 1,138,819.80 |
| Other cash receipts in relation to operating activities | 196,821,042.17 | 362,756,808.71 |
| Total cash inflows from operating activities | 8,953,542,326.02 | 8,029,195,882.72 |
| Cash payments for goods and services | 6,125,835,203.59 | 5,198,144,232.17 |
| Net increase in customer loans and prepayments | ||
| Net increase in deposits of central bank and due from banks | ||
| Cash for payment of original insurance claims | ||
| Net increase in lending to other banks and other financial institutions |
| Cash for payment of interests, handling fees and commissions | ||
| Cash for payment of policy dividends | ||
| Cash payments to and for employees | 653,692,760.67 | 579,438,808.77 |
| Payment of taxes and fees | 456,958,349.66 | 453,422,088.98 |
| Other cash payments in relation to operating activities | 1,414,741,847.62 | 1,579,411,128.91 |
| Total cash outflows for operating activities | 8,651,228,161.54 | 7,810,416,258.83 |
| Net cash flows from operating activities | 302,314,164.48 | 218,779,623.89 |
| II. Cash flows from investing activities | ||
| Cash from recovery of investments | ||
| Cash from investment gains | ||
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 50,504.23 | 345,902,424.29 |
| Net cash from disposal of subsidiaries and other business units | ||
| Other cash receipts in relation to investing activities | ||
| Total cash inflows from investing activities | 50,504.23 | 345,902,424.29 |
| Cash payments for purchase and construction of fixed assets, intangible assets and other long-term assets | 302,645,383.17 | 267,014,841.51 |
| Cash payments for investment | 105,706,000.00 | 100,000,000.00 |
| Net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Other cash payments in relation to investing activities | 78,680,000.00 | |
| Total cash outflows for investing activities | 487,031,383.17 | 367,014,841.51 |
| Net cash flows from investing activities | -486,980,878.94 | -21,112,417.22 |
| III. Cash flows from financing activities: |
| Cash from absorbing investments | ||
| Including: Cash from absorption of minority shareholders’ investments by subsidiaries | ||
| Cash from borrowing | 852,692,161.43 | 684,996,551.61 |
| Other cash receipts in relation to financing activities | ||
| Total cash inflows from financing activities | 852,692,161.43 | 684,996,551.61 |
| Cash for repayment of debt | 710,289,400.95 | 536,798,734.58 |
| Cash payments for dividends, profits or interests | 28,945,045.60 | 34,425,592.85 |
| Including: Payment of dividends and profits by subsidiaries to minority shareholders | 24,500,000.00 | |
| Other cash payments in relation to financing activities | 261,000.00 | 2,794,710.80 |
| Total cash outflows for financing activities | 739,495,446.55 | 574,019,038.23 |
| Net cash flows from financing activities | 113,196,714.88 | 110,977,513.38 |
| IV. Influence of exchange rate fluctuations on cash and cash equivalents | -2,854,862.94 | 7,174,858.69 |
| V. Net increase in cash and cash equivalents | -74,324,862.52 | 315,819,578.74 |
| Add: Balance of cash and cash equivalents at the beginning of the period | 3,157,407,073.26 | 2,231,771,546.50 |
| VI. Balance of cash and cash equivalents at the end of the period | 3,083,082,210.74 | 2,547,591,125.24 |
6. Cash flow statement of the parent company
Unit: RMB yuan
| Item | Amount incurred during the current period | Amount incurred during the previous period |
| I. Cash flow from operating activities: | ||
| Cash from the sale of goods and | 3,715,003,658.99 | 3,511,097,388.40 |
| provision of services | ||
| Tax refunds received | ||
| Other cash receipts in relation to operating activities | 224,182,830.38 | 222,397,124.86 |
| Total cash inflows from operating activities | 3,939,186,489.37 | 3,733,494,513.26 |
| Cash payments for goods and services | 4,567,115,197.95 | 3,836,435,683.47 |
| Cash payments to and for employees | 93,582,035.23 | 74,881,392.11 |
| Payment of taxes and fees | 111,813,964.47 | 31,131,815.13 |
| Other cash payments in relation to operating activities | 64,607,824.15 | 93,412,588.78 |
| Total cash outflow under operating activities | 4,837,119,021.80 | 4,035,861,479.49 |
| Net cash flow from operating activities | -897,932,532.43 | -302,366,966.23 |
| II. Cash flows from investing activities: | ||
| Cash from recovery of investments | ||
| Cash from investment gains | 175,500,000.00 | |
| Net cash from disposal of fixed assets, intangible assets and other long-term assets | 35,000.00 | |
| Net cash from disposal of subsidiaries and other business units | ||
| Other cash receipts in relation to investing activities | 193,931,036.10 | 217,902,741.44 |
| Total cash inflows from investing activities | 193,931,036.10 | 393,437,741.44 |
| Cash payments for purchase and construction of fixed assets, intangible assets and other long-term assets | 15,093,382.34 | 3,423,339.18 |
| Cash payments for investment | 79,200,000.00 | 2,530,810.80 |
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Other cash payments in relation to investing activities | 234,751,290.00 | 160,000,000.00 |
| Total cash outflows for investing activities | 329,044,672.34 | 165,954,149.98 |
| Net cash flows from investing activities | -135,113,636.24 | 227,483,591.46 |
| III. Cash flows from financing activities: | ||
| Cash from absorbing investments | ||
| Cash from borrowing | 359,345,278.50 | 310,202,546.78 |
| Other cash receipts in relation to financing activities | 1,239,000,000.00 | 218,391,068.03 |
| Total cash inflows from financing activities | 1,598,345,278.50 | 528,593,614.81 |
| Cash for repayment of debt | 399,995,396.12 | 115,202,547.58 |
| Cash payments for dividends, profits or interest | 25,255,460.89 | 3,495,155.18 |
| Other cash payments in relation to financing activities | 101,360,376.65 | 67,321,291.66 |
| Total cash outflows for financing activities | 526,611,233.66 | 186,018,994.42 |
| Net cash flows from financing activities | 1,071,734,044.84 | 342,574,620.39 |
| IV. Influence of exchange rate fluctuations on cash and cash equivalents | 1,987,917.74 | |
| V. Net increase in cash and cash equivalents | 38,687,876.17 | 269,679,163.36 |
| Add: Balance of cash and cash equivalents at the beginning of the period | 1,889,254,142.30 | 893,929,724.56 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,927,942,018.47 | 1,163,608,887.92 |
II. Notes on adjustments of financial statements
1、Adjustments to financial statement items at the beginning of the year of the first implementation of the newaccounting standards governing leases which have been implemented since 2021
√ Applicable □N/A
Whether any balance sheet items at the beginning of the year requires adjustment
√Yes □ No
Consolidated balance sheet
Unit: RMB yuan
| Item | December 31, 2020 | January 1, 2021 | Adjustment |
| Current assets: | |||
| Cahs and bank balances | 3,198,080,997.82 | 3,198,080,997.82 | |
| Accounts receivable | 6,137,675,568.82 | 6,137,675,568.82 | |
| Accounts receivable for financing | 828,659,217.25 | 828,659,217.25 | |
| Prepayments | 250,916,482.07 | 250,916,482.07 | |
| Other receivables | 87,269,489.82 | 87,269,489.82 | |
| Dividends receivable | 4,195,666.37 | 4,195,666.37 | |
| Inventories | 4,067,635,254.80 | 4,067,635,254.80 | |
| Other current assets | 85,654,691.58 | 85,654,691.58 | |
| Total current assets | 14,655,891,702.16 | 14,655,891,702.16 | |
| Non-current assets: | |||
| Long-term equity investments | 850,072,053.02 | 850,072,053.02 | |
| Other equity instrument investments | 225,453,120.05 | 225,453,120.05 | |
| Real estate properties for investment | 17,792,735.95 | 17,792,735.95 | |
| Fixed assets | 2,420,366,582.92 | 2,420,366,582.92 | |
| Constructions in progress | 2,240,201,926.65 | 2,240,201,926.65 | |
| Right-of-use assets | 170,756,580.56 | 170,756,580.56 | |
| Intangible assets | 1,463,242,463.99 | 1,463,242,463.99 | |
| Goodwill | 1,469,617,262.10 | 1,469,617,262.10 | |
| Long-term unamortized expenses | 8,811,339.43 | 8,811,339.43 | |
| Deferred tax assets | 137,829,774.40 | 137,829,774.40 | |
| Other non-current assets | 712,069,194.08 | 712,069,194.08 | |
| Total non-current assets | 9,545,456,452.59 | 9,716,213,033.15 | 170,756,580.56 |
| Total assets | 24,201,348,154.75 | 24,372,104,735.20 | 170,756,580.56 |
| Current liabilities: | |||
| Short-term borrowing | 1,416,932,884.87 | 1,416,932,884.87 | |
| Notes payable | 554,336,058.71 | 554,336,058.71 | |
| Accounts payable | 3,947,044,331.68 | 3,947,044,331.68 |
| Receipts in Advance | 951,926.56 | 951,926.56 | |
| Contract liabilities | 94,384,629.77 | 94,384,629.77 | |
| Payroll payable | 152,106,819.91 | 152,106,819.91 | |
| Taxes payable | 571,792,475.80 | 571,792,475.80 | |
| Other payables | 1,817,529,820.99 | 1,817,529,820.99 | |
| Dividends payable | 224,219.60 | 224,219.60 | |
| Non-current liabilities due within one year | 67,813,886.68 | 67,813,886.68 | |
| Other current liabilities | 10,786,034.37 | 10,786,034.37 | |
| Total current liabilities | 8,633,678,869.34 | 8,633,678,869.34 | |
| Non-current liabilities: | |||
| Long-term borrowing | 151,611,367.86 | 151,611,367.86 | |
| Lease liabilities | 169,732,063.50 | 169,732,063.50 | |
| Long-term payables | 26,812,354.90 | 26,812,354.90 | |
| Provisions | 39,467,829.23 | 39,467,829.23 | |
| Deferred income | 81,628,032.54 | 81,628,032.54 | |
| Deferred tax liabilities | 88,738,187.41 | 88,738,187.41 | |
| Total non-current liabilities | 388,257,771.94 | 557,989,835.44 | 169,732,063.50 |
| Total liabilities | 9,021,936,641.28 | 9,191,668,704.78 | 169,732,063.50 |
| Owners’ Equity: | |||
| Share capital | 1,749,809,548.00 | 1,749,809,548.00 | |
| Capital reserves | 2,158,080,661.07 | 2,158,080,661.07 | |
| Other comprehensive income | -2,191,069.45 | -2,191,069.45 | |
| Surplus reserves | 861,680,578.42 | 861,680,578.42 | |
| Retained earnings | 9,852,441,590.56 | 9,853,466,107.62 | 1,024,517.06 |
| Total owners’ equity attributable to owner of the Company | 14,619,821,308.60 | 14,620,845,825.66 | 1,024,517.06 |
| Minority interest | 559,590,204.87 | 559,590,204.87 | |
| Total owners’ equity | 15,179,411,513.47 | 15,180,436,030.43 | 1,024,517.06 |
| Total liabilities & owners’ equity | 24,201,348,154.75 | 24,372,104,735.10 | 170,756,580.56 |
Adjustment descriptionThe company will implement the new lease standard from January 1, 2021. According to the cumulative impact ofthe first implementation of the standard, the amount of retained earnings and other related items in the financial
statements at the beginning of the year when the standard is first implemented will be adjusted, and theinformation of the comparable period will not be adjusted.Balance sheet of the parent company
Unit: RMB yuan
| Item | December 31, 2020 | January 1, 2021 | Adjustment |
| Current assets: | |||
| Cash and bank balances | 1,889,264,142.30 | 1,889,264,142.30 | |
| Accounts receivable | 3,287,882,027.51 | 3,287,882,027.51 | |
| Accounts receivable for financing | 214,871,707.01 | 214,871,707.01 | |
| Prepayments | 121,268,106.62 | 121,268,106.62 | |
| Other receivables | 798,152,353.96 | 798,152,353.96 | |
| Dividends receivable | 3,363,380.00 | 3,363,380.00 | |
| Inventories | 1,845,977,070.46 | 1,845,977,070.46 | |
| Total current assets | 8,157,415,407.86 | 8,157,415,407.86 | |
| Non-current assets: | |||
| Long-term equity investments | 4,847,172,288.65 | 4,847,172,288.65 | |
| Other equity instrument investments | 94,312,742.49 | 94,312,742.49 | |
| Real estate properties for investment | 8,125,576.54 | 8,125,576.54 | |
| Fixed assets | 159,486,234.04 | 159,486,234.04 | |
| Constructions in progress | 342,161.41 | 342,161.41 | |
| Right-of-use assets | 19,610,573.47 | 19,610,573.47 | |
| Intangible assets | 56,448,575.54 | 56,448,575.54 | |
| Long-term unamortized expenses | 645,902.07 | 645,902.07 | |
| Deferred tax assets | 45,918,388.57 | 45,918,388.57 | |
| Other non-current assets | 96,882,664.08 | 96,882,664.08 | |
| Total non-current assets | 5,309,334,533.39 | 5,328,945,106.86 | |
| Total assets | 13,466,749,941.25 | 13,486,360,514.72 | 19,610,573.47 |
| Current liabilities: | |||
| Short-term borrowing | 930,813,369.36 | 930,813,369.36 | |
| Notes payable | 180,042,270.63 | 180,042,270.63 |
| Accounts payable | 2,421,476,904.57 | 2,421,476,904.57 | |
| Contract liabilities | 32,577,236.92 | 32,577,236.92 | |
| Payroll payable | 8,530,961.48 | 8,530,961.48 | |
| Taxes payable | 154,676,067.87 | 154,676,067.87 | |
| Other payables | 518,390,330.44 | 518,390,330.44 | |
| Dividends payable | 224,219.60 | 224,219.60 | |
| Other current liabilities | 4,273,258.99 | 4,273,258.99 | |
| Total current liabilities | 4,250,780,400.26 | 4,250,780,400.26 | |
| Non-current liabilities: | |||
| Lease liabilities | 19,607,377.15 | 19,607,377.15 | |
| Deferred income | 40,698,910.95 | 40,698,910.95 | |
| Deferred tax liabilities | 10,888,106.00 | 10,888,106.00 | |
| Total non-current liabilities | 51,587,016.95 | 51,587,016.95 | |
| Total liabilities | 4,302,367,417.21 | 4,321,974,794.36 | 19,607,377.15 |
| Owners’ Equity: | |||
| Share capital | 1,749,809,548.00 | 1,749,809,548.00 | |
| Capital reserves | 2,168,451,528.01 | 2,168,451,528.01 | |
| Other comprehensive income | 3,051,311.29 | 3,051,311.29 | |
| Surplus reserves | 939,536,337.86 | 939,536,337.86 | |
| Retained earnings | 4,303,533,798.88 | 4,303,536,995.20 | 3,196.32 |
| Total owners’ equity | 9,164,382,524.04 | 9,164,385,720.36 | 3,196.32 |
| Total liabilities & owners’ equity | 13,466,749,941.25 | 13,466,753,137.72 | 19,610,573.47 |
Adjustment description
The company will implement the new lease standard from January 1, 2021. According to the cumulative impact ofthe first implementation of the standard, the amount of retained earnings and other related items in the financialstatements at the beginning of the year when the standard is first implemented will be adjusted, and theinformation of the comparable period will not be adjusted.
2、Retrospective adjustments to comparative data of the previous period due to the first implementation of the newaccounting standards leases since 2021
□ Applicable √ N/A
III. Audit report
Has the first quarterly report been audited?
□ Yes √ No
The first quarterly report has not been audited.
Huadong Medicine Co., Ltd.Chairman of the Board: Lv Liang
April 28, 2021