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一致B:2019年半年度报告(英文版) 下载公告
公告日期:2019-08-24

ChinaNationalAccordMedicinesCorporationLtd.

Semi-AnnualReport2019

August2019

SectionI.ImportantNotice,ContentsandParaphraseBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.LinZhaoxiong,PrincipaloftheCompany,WeiPingxiao,personinchargerofaccountingworksandWangYing,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportofSemi-AnnualReport2019isauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.TheCompanyplansnottopaycashdividends,bonusandcarryoutcapitalizingofcommonreserves.

Contents

SectionIImportantNoticeandParaphrase ...... 1

SectionIICompanyProfileandMainFinancialIndexes ...... 4

SectionIIISummaryofCompanyBusiness ...... 7

SectionIVDiscussionandAnalysisofBusiness ...... 11

SectionVImportantEvents ...... 28

SectionVIChangesinSharesandShareholders ...... 58

SectionVIIPreferredStock ...... 63

SectionVIIIParticularsaboutDirectors,SupervisorsandSeniorExecutives ...... 64

SectionIXCorporateBonds ...... 65

SectionXFinancialReport ...... 66

SectionXIDocumentsAvailableforReference ...... 256

Paraphrase

Items

ItemsReferstoContents
ListedCompany,Company,theCompany,SinopharmAccord,theGroupReferstoChinaNationalAccordMedicinesCorporationLtd.
SinopharmReferstoChinaNationalPharmaceuticalGroupCorporation
SinopharmHoldingReferstoSinopharmGroupCo.,Ltd;ControllingshareholderoftheCompany
CompanyLawReferstoCompanyLawofthePeople’sRepublicofChina
SecuritiesLawReferstoSecuritiesLawofthePeople’sRepublicofChina
Yuan,10thousandYuan,100millionYuanReferstoRMB,RMB10thousand,RMB100million
Terminology:Refersto
TwoInvoicesSystemReferstoThefirstinvoicereferstotheinvoicefromthemanufacturertothedistributor,andthesecondinvoicereferstotheinvoicefromthedistributortothemedicalserviceprovider.Bythisway,circulationlinkshavebeengreatlyreducedandthenumberofdistributorsforeachmedicinecategoryshallnotexceedtwo.
GPOReferstoGrouppurchasingorganizations
GSPcertificateReferstoGoodSupplyPracticecertificate
SupplyChainManagementReferstoThatisCMS,andinformationsystemprocessingworkflow&procurement,inventory&salesdocuments
Abbreviation:Refersto
SinopharmHoldingGuangzhouReferstoSinopharmHoldingGuangzhouCo.,Ltd.
GuodaDrugstoreReferstoSinopharmHoldingGuodaDrugstoreCo.,Ltd.
SinopharmHoldingGuangxiReferstoSinopharmHoldingGuangxiCo.,Ltd.
FoshanNanhaiReferstoFoshanNanhaiPharmaceuticalGroupCo.,Ltd.
NanfangPharmaceuticalForeignTradeReferstoGuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.
ChinaNationalZhijun,ZhijunPharmaceuticalReferstoChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.
ZhijunPharmacyTradeReferstoShenzhenZhijunPharmacyTradeCo.,Ltd.
ZhijunPingshan,PingshanPharmaceuticalReferstoChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.
MainLuckPharmaceuticalsReferstoShenzhenMainLuckPharmaceuticalsInc.

SectionII.CompanyProfileandMainFinancialIndexes

I.Companyprofile

Shortformofthestock

ShortformofthestockSinopharmAccord;AccordBStockcode000028,200028
StockexchangeforlistingShenzhenStockExchange
NameoftheCompany(inChinese)国药集团一致药业股份有限公司
ShortformoftheCompany(inChinese)国药一致
ForeignnameoftheCompany(ifapplicable)ChinaNationalAccordMedicinesCorporationLtd.
ShortformofforeignnameoftheCompany(ifapplicable)SinopharmAccord
LegalrepresentativeLinZhaoxiong

II.Person/Waytocontact

SecretaryoftheBoardRepresentativeofsecurityaffairs
NameChenChangbingWangZhaoyu
Contactadd.AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvinceAccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince
Tel.+(86)75525875195+(86)75525875222
Fax.+(86)75525195435+(86)75525195435
E-mailgyyzinvestor@sinopharm.comgyyz0028@sinopharm.com

III.Others

1.WayofcontactWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot

□Applicable√NotapplicableRegistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhasnochangeinreportingperiod,foundmoredetailsinAnnualReport2018.

2.InformationdisclosureandpreparationplaceWhetherinformationdisclosureandpreparationplacechangedinreportingperiodornot

□Applicable√NotapplicableThenewspaperappointedforinformationdisclosure,websiteforsemi-annualreportpublishappointedbyCSRCandpreparationplaceforsemi-annualreporthavenochangeinreportingperiod,foundmoredetailsinAnnualReport2018.IV.Mainaccountingdataandfinancialindexes

Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

Currentperiod

CurrentperiodSameperiodoflastyearIncrease/decreaseinthisreporty-o-y
Operatingrevenue(RMB)25,228,147,377.4320,778,425,602.2221.42%
NetprofitattributabletoshareholdersofthelistedCompany(RMB)650,833,360.40641,727,034.931.42%
NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(RMB)639,700,447.95623,296,339.342.63%
Netcashflowarisingfromoperatingactivities(RMB)1,163,757,581.35225,357,709.20416.40%
Basicearningspershare(RMB/Share)1.521.501.33%
Dilutedearningspershare(RMB/Share)1.521.501.33%
WeightedaverageROE5.44%6.62%Decline1.18percentagepoints
EndofcurrentperiodEndoflastperiodIncrease/decreaseinthisreport-endoverthatoflastperiod-end
Totalassets(RMB)33,539,598,682.9428,930,300,519.9715.93%
NetassetsattributabletoshareholderoflistedCompany(RMB)12,140,439,917.4811,618,432,603.284.49%

V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina

1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)VI.Itemsandamountsofextraordinaryprofit(gains)/loss

√Applicable□Notapplicable

InRMB

Item

ItemAmountNote
Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)4,318.22
Governmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard)16,456,976.15Thevarytaxationsubsidiaryandfinancialincentivereceivedintheperiod
Reversalofimpairmentreserveforaccountreceivablewithseparateimpairmenttesting1,076,222.62
Gains/lossesonentrustedloans1,715,338.06ThegainsobtainedfromofferingentrustloanstoChinaNationalZhijun(Suzhou).
Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems519,920.40
Othergains/lossessatisfyadefinitionofextraordinarygains/losses16,447.15
Less:impactonincometax4,668,084.55
Influencedamountofminorityshareholders’equity(aftertax)3,988,225.60
Total11,132,912.45--

Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons

□Applicable√NotapplicableInreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss

SectionIII.SummaryofCompanyBusinessI.MainbusinessesoftheCompanyinthereportingperiod

WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryYesRetailingindustryTheCompanycomplieswiththedisclosurerequirementof"InformationDisclosureGuidelinesfortheShenzhenStockExchangeNo.8-ListingCompanyEngagedinRetailingIndustry"Inthereportingperiod,themainbusinessofSinopharmAccordincludespharmaceuticaldistributionandpharmaceuticalretail,specificallyasfollows:

(i)Inthepharmaceuticaldistributionfield,theCompanycontinuestointegratethedistributionandlogisticsbusiness,deeplypenetratesintotheendmarkets,improvesthemultistepdistributionnetwork,createsintelligentsupplychain,developedaclusteredandlarge-scaleindustrialadvantages,andcommittobecomingaleadingproviderofmedicalhealthproductsandservicesinSouthernChina.

1.Intermsofmarketcompetitionpattern,thecompany'spharmaceuticaldistributionismainlybasedonGuangdongandGuangxi.ThecompanyopenedthenetworkchannelconstructionofGuangdongandGuangxiin2008,andthebusinesswasdistributedtovariouscitiesandregionsthroughthemergerandacquisitionandthenewbranches;atthesametime,thecompanystartedthelogisticsnetworkconstruction,andrealizedwholenetworkoperationin2015.In2016,withthereorganizationofSinopharmAccord,thedistributioncontinuedtoconsolidatethetraditionalhospitalbusiness,whileactivelyexpandinginnovativebusiness,combinedwiththeexplorationofwholesaleandretailsynergy,andrealizedsteadygrowthinscaleyearbyyearfacingwiththechangingmarketinrecentyears,thefrequentmedicalreformpolicies,andtheincreasinglystrictsupervisiontopharmaceuticalindustry.Inthefirsthalfof2019,thehospitaldirectsellingmarketdistributedin30citiesatprefecturelevelandaboveinGuangdongandGuangxirankedthetopthree.

2.Intermsofcustomerdistribution,asthedistributionchannelscontinuetosink,theexpansionofsmallandmedium-sizedterminalshascontinuedtoincreasesince2018,mainlyincludingretailmedicaltreatment,grass-rootmedicalinstitutions,andsmall-scalesocialmedicalservices.Thedistributionofcustomersuptothefirsthalfof2019wasasfollows:1,804medicalinstitutionsatthefirstlevelorabove,3,783primarycarecustomers(excluding836first-levelhospitals),and1,587retailterminalcustomers(chaindrugstores,singlestores).

(ii)Inthepharmaceuticalretailfield,GuodaDrugstoreisapharmaceuticalretailenterprisethatranksthefirstinthesalesvolumethroughoutthecountry,andisoneofthefewenterprisesinChinawithnationaldirectsalesdrugretailnetwork.

AsoftheendofJune2019,GuodaDrugstorehad4,593stores,covering19provinces,autonomousregions,andmunicipalitiesdirectlyunderthecentralgovernment,whichformedanetworkofpharmaciescoveringtheurbanagglomerationsofEastChina,NorthChina,andcoastalregionofSouthChina,andgraduallyspreadintotheNorthwest,CentralPlains,andinlandcityclusters.ThebusinessofGuodaDrugstoremainlyreliedonmodernretailpharmacies,andfocusedonthedevelopmentofprofessionalservicesystemswithmedicalresourcesasitscorecompetitiveness,andcreatedagroupofretailmedicaltreatmentandhospitalcooperationprofessionalizedstoresthatintegratemedicalservicesandhealthproductssales.Atthesametime,GuodaDrugstoreactivelyexpandeditsinnovativebusiness,activelyexploredandenrichednewbusinesschannels,enhancedprofessionalservicecapabilities,andwascommittedtothetransformationfromtraditionalpharmaceuticalretailenterprisestoinnovativeservice-orientedenterprises.GuodaDrugstorehadbuiltindustry-leadingprofessionalservicecapabilitiesthroughregularmerchandiseretailmanagement,upgradesofkeybrandsandpotentialtappingofcooperationwithsuppliers,andacceleratingDTPbusinessandcontinuingthecreationofhealthservicesystem.Inaddition,theleadingscaleofGuodaDrugstorewasoneofthecorecompetitiveness,andthescaleadvantagereducedthecompany'sprocurementcostandenhancedthecompany'sbargainingability.

II.Majorchangesinmainassets

1.Majorchangesinmainassets

Majorassets

MajorassetsNoteofmajorchanges
EquityassetsIncreased197.4176millionYuanoverthatofperiod-beginwith10.42%rateofchange,mainlybecausetheinvestmentincomefromjointventuresincreased.
FixedassetsDecreased14.3813millionYuanoverthatofperiod-beginwith2.37%rateofchange,nosignificantchangesduringthereportingperiod.
IntangibleassetsIncreased1.3156millionYuanoverthatofperiod-beginwith0.41%rateofchange,nosignificantchangesduringthereportingperiod.
ConstructioninprogressDecreased4.432millionYuanoverthatofperiod-beginwith12.17%rateofchange,mainlybecausetheERPsoftwaretransfertointangibleassetsforinstallationcompleted.
ReceivablesFinancingIncreased325.4396millionYuanoverthatofperiod-beginwith100%rateofchange,mainlybecauseatendoftheperiod,thebankacceptancebillunderNoteReceivablewaslistedundertheitemof"ReceivablesFinancing"forchangeofthestatementformat
Right-of-useassetsIncreased1910.9812millionYuanoverthatofperiod-beginwith100%rateofchange,mainlybecausenewleasingstandardsareimplementedintheperiod

2.Mainoverseasassets

□Applicable√Notapplicable

III.CorecompetitivenessanalysisWhethertheCompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryYesRetailingindustry

1.StrongnetworkcoverageandlayoutLeadinglayoutandcompletedistributionnetworkinGuangdongandGuangxi:theCompanyhascompletepharmaceuticaldistributionnetworksinGuangdongandGuangxi,achievecomprehensivecoverageofthesecond-andthird-levelmedicalinstitutionsinGuangdongandGuangxi;inrecentyears,wehaveseizedtheopportunitytodevelopretail-orientedcustomers,andvigorouslyexpandedrelatedbusinessformatssuchasgrass-rootmedicalinstitutions,distributionretailpharmacies,andretailterminalsincludingsmall-scaleprivatemedicalenterprises,andcontinuouslyexpandedthecoverageofthevastmarketterminals,therefore,thescaleandgrowthratehaveachievedrapidgrowth.Taketheleadinscaleandcoverthecountrywideretailnetwork:GuodaDrugstoreisapharmaceuticalretailenterprisewithsalesvolumerankingfirstthroughoutthecountry,established28regionalchainenterprises,withretailnetworkspreadingover19provincesandmunicipalitiesandautonomousregions.

2.AbundantvarietyresourcesInthepharmaceuticaldistribution,theCompanyhasestablishedextensivecooperativerelationswiththousandsofdomesticmanufacturersandcommercialenterprisesandestablishedstablebusinessrelationshipswithhundredsofimportandjointventuremanufacturers,itsbusinessscopeandvariousbusinessqualificationsarecomplete,coveringmedicines,medicalequipment,herbalmedicinepieces,andincludinghempmedicines,medicaltoxicdrugs,diagnosticreagents,etc.GuodaDrugstoreoperatesnearly120,000merchandises.Withitsrelativelycomprehensivepurchasingnetworkandyearsofexperienceincommoditymanagement,GuodaDrugstorehasestablishedamerchandisesystemwithwidecoverage,highprofessionalization,andrichvarieties.

3.CompletelogisticsanddistributionsystemSinopharmAccorddistributionadoptssupplychainmanagementandwarehousemanagementsolutionssystem,ithasbuiltlarge-scalefirst-gradelogisticscentersinGuangzhou,Nanning,ShenzhenandotherplacesandestablisheddistributioncentersinGuangdongandGuangxiwhichhasformedladderlogisticsanddistributionnetworks,itisthefirstenterpriseinGuangdongandGuangxithathasachievedthethird-partylogisticsqualificationandhastheprofessionalpharmaceuticallogisticscapabilitieswiththelargestscale,themostextensivenetwork,andthemostcompletemodesinsouthernChina.GuodaDrugstorehasanationwidemodernlogisticsanddistributionsystem,andhasestablishedthelogisticsanddistributionnetworkcoveringallthestoresthroughoutthecountry,includingShanghaiNationalLogisticsCenterand23provincialandmunicipaldistributioncenters.

4.TheadvantagesofmedicalinsuranceresourcesRegardingmedicineretails,thesubsidiariesofGuodaDrugstorehavefeaturedgenerallyhighermedicalinsuranceacquiringability,withhighermedicalinsurancesalesratioandsteadyoperation.

5.TheadvantagesofComplianceTheCompanyhadabigleadunderanincreasinglystringentregulatoryenvironmentforthereasonthatithaskeptemphasizinglegalizationandcomplianceintheprocessofoperationandmanagement.

6.Unique-influenceSinopharmbrandBrandoftheCompanyanddistribution,industrychild-brandandcontrollingshareholderandactualcontroller’sbrandcomedowninonecontinuousline,dependingonpowerfulforceofcentralenterprises,theCompany’spopularityandinfluenceareprominentdaybydayintheindustry

SectionIV.DiscussionandAnalysisofBusinessI.Introduction

Inthefirsthalfof2019,thegrowthrateofChina'spharmaceuticalmarketsloweddown,andthegrowthofmajorterminalscontinuedtodifferentiate,thegrowthrateofprimarymedicalcareandretailterminalswashigherthanthatofhospitalterminals.Theindustrialpolicycontinuedtodeepenthemedicalreformwiththecorethoughtsof"adjustingthestructure,strengtheningthegrassrootsandstrictsupervision",andthepaceofreforminthemedicalfieldwasaccelerated;the"4+7"collectionandlinkagewasrapidlyadvanced,thenationalmedicalinsurancestandardizationworkwasofficiallylaunched,thepaymentmethodreformpilothasbeenadvanced,andthemarketregulationwasbecomingstricter.Underthenewsituation,SinopharmAccordconformedtotheindustryandpolicytrends,maintainedstrategicstrength,soughttransformationandinnovationanddevelopment,andcontinuouslypromotedthestrategicmeasuresandtechnologicaltransformationwithwholesaleandretailintegrationasthecore,focusedonfourbusinessdirections,andcreateda"new"Guoda.Undertheguidanceandsupportofthecompany'sboardofdirectors,withthejointeffortsofmorethan25,000employees,wefocusedontheincreaseinshareandthescaleexpansion,thecompany'sscaleandgrowthrateinthefirsthalfoftheyearwasbetterthantheoverallleveloftheindustry,andachievedsteadyandrapidgrowthinperformance.(i)PerformancecompletionInfirsthalfof2019,SinopharmAccordachievedarevenuefromoperationamountedas25.228billionYuanwithay-o-ygrowth21.42%;netprofitattributabletoshareholdersofparentcompanycomesto651millionYuanwith

1.42%uponay-o-ybasis.Thedistributionbusinesshasoperationrevenueof19.477billionYuanwithy-o-ygrowthof22.66%;netprofitattributabletoshareholdersofparentcompanyhas382millionYuanwithy-o-ygrowthof15.41%.GuodaDrugstoreachievedarevenuefromoperationamountedto6.108billionYuanwithay-o-ygrowthof18.75%andnetprofitattributabletoshareholdersofparentcompanyamountedas150millionYuan,a7.81%uponay-o-ybasis.(ii)Themainwork

1.Stabilizegrowth-performanceimprovementandscaleexpansionThecompanyactivelygraspedindustryopportunities,optimizedinvestmentM&Adecision-makingefficiency,acceleratedindustryresourceintegrationandstorenetworklayout,andensuredscaledevelopment.Asofthefirsthalfoftheyear,thecompanyhadatotalof107subsidiaries,andthenumberofretailoutletsofGuodaDrugstorewas4,593,withanetincreaseof318stores.Duringthereportingperiod,thecompanyinvestedintheestablishmentoftheSinopharmGuodaDrugstoreBayannao’erCo.,Ltd.,InnerMongoliaGuodaPharmaceuticalsCo.,Ltd.,andSinopharmGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.

2.Promotestrategy-integrationofwholesaleandretail,andtechnologyempowerment

Thecompanyresearchedandgraspedenvironmentalchanges,deepenedthedevelopmentplanforthenextfiveyears,andcarriedoutstrategicrollingrevisions.Withthecoremeasuresof"technologyempowerment,serviceupgrading,integrationofwholesaleandretail,andindustryandfinancedualdrive",weprovidedfull-servicesolutionsfortheupstreamanddownstreamindustrychainthroughcustomervaluedrivingandupgradesofsupplychainmodel,andtransformedthepharmaceuticaldistributorsintothesolutionprovidersandserviceproviderssoastocreatealeadinginternationalmedicinehealthserviceplatform.Thecompanyintegratedresourcestopromotethesynergyofwholesaleandretail.Inthefirsthalfoftheyear,thedistributionlaunchedthelogisticsplanningofwholesaleandretailintegration,andthesalesofwholesaleandretailsynergiesincreasedby54%onayear-on-yearbasis,andthepartoutsideofGuangdongandGuangxiprovincesincreasedby64%onayear-on-yearbasis;GuodaDrugstoregotsupportsfromWBAglobalstrategiccooperationmanufacturers’resources,andimprovedtheCatalogueofIntegrationofWholesalesandRetails,atthesametime,promotedtheconstructionofprovincialplatforms,atpresent,theprovincialplatforminInnerMongoliahasbeencompleted,andtheprovincialplatformprojectinShenyanghaspassedtheprojectapproval.Centeringonthe"digitaltransformation",thecompanylaunchedITplanning,promotedintelligentlogisticsandintelligentsupplychainoptimization,andenergizedthebusinessdevelopmentinmultipledimensions.

3.Consolidatefoundation-managementupgrade,riskcontrolguaranteeThecompanystraightenedoutthegovernancerelationshipofsubsidiaries,regulatedthemanagementofitssubsidiaries,andenhanceditsoverallgovernancecapabilities.Thecompanyoptimizedtheorganizationalstructure,createdadiversifiedincentivemechanism,improvedthetalentdevelopmentsystem,strengthenedleadership,stimulatedorganizationalvitalityandinnovation,andpromotedorganizationalmanagementtransformation.Theheadquartersgaveplaytoresourceallocationandcontrolfunctions,strengthenedprofessionalcapabilities,improvedserviceawareness,implementedriskpreventionandcontrol,andescortedthebusinessdevelopment.Wepromotedkeyprojectssuchascontrolsofclaimsandinventorybalances,loss-makingenterprisegovernance,andinnovationfirst,andimprovedqualityandefficiencyforhealthydevelopment.

4.Promotetransformation–servicedriven,modelinnovationDistributionbusiness:Thecompanymaintainedstrategicstrength,activelyrespondedtochangesinmarketpolicies,andconsolidatedtheintegratedoperationalfoundation,thefourmajorbusinessesdevelopedrapidlyandbuiltnewcompetitiveadvantages.Inthefirsthalfoftheyear,traditionalbusinessgrewby22%onayear-on-yearbasis,retaildirectsalesincreasedby30%onayear-on-yearbasis,equipmentconsumablesincreasedby52%onayear-on-yearbasis,retailmedicaltreatmentincreasedby80%onayear-on-yearbasis,andprimarycareincreasedby34%onayear-on-yearbasis.

(1)Thecompanyactivelyrespondedtoenvironmentalchanges,strengthenedcommunicationwiththegovernment,respondedtothegovernment'sdemandformedicalreform,activelyparticipatedinandprovidedprofessionaladvicetoenhancethecompany'sinfluence.IntermsofGPOpolicy,GuangzhouCompanycompletedbargainingreportsforsevenbatchesofproducts,andthebargaininglistcoverageratereached91%,atthesametime,itactivelytookcountermeasuresagainstnewGPOareassuchasMeizhou,Heyuan,ShanweiandMaoming.Intheimplementationof"4+7"quantityprocurement,withtheprofessionalservicecapabilityandnetworkcoverageadvantage,ShenzhenCompanyhasobtaineddistributionrightsof22varieties,accountingfor84%;Guangzhou

Companyhasobtaineddistributionrightsof24varieties,accountingfor96%.

(2)Retaildirectsalesbusiness:combinedwiththecharacteristicsofretailterminals,continuedtopromotecustomerexpansion,regionalsinking,andactivelypromotedtheintegrationofwholesaleandretailandtheplatformconstruction.Intermsofsalesgrowth,inthefirsthalfof2019,theretaildirectsalesbusinessachievedrapidgrowth,amongthem,retailpharmacycustomersalesincreasedby40%onayear-on-yearbasis,andsmall-scaleprivatemedicalsalesincreasedby29%onayear-on-yearbasis.ActivelyintegratedGuodachainandprivatesingle-storeandsmallchainresources,andpromotedtheconstructionofthecorenetworkoftheterminalnetworkmemberstore+thehospitalcircumjacentstorethroughthe"networkself-built+cooperativedevelopment"dual-trackmode,andcontinuedtoexpandtheconstructionofthethirdterminalmedicalnetwork.IntermsofB2Bplatformconstructionandserviceinnovation,thecompanybuiltOTCresourceplatforms,realizedonlinepaymentofB2Bplatform,upgradedmembermanagementfunctions,optimizedAPPmoduleconstruction,focusedonendcustomerneeds,andcreatedspecialservices.

(3)Retailmedicaltreatmentbusiness:ContinuedtopromotethedistributionofprofessionalpharmaciesinGuangdongandGuangxi,andsaleshaveincreasedsignificantly.Inthefirsthalfoftheyear,thesalesrevenueofprofessionalpharmaciesinthefirsthalfoftheyearincreasedby80%,and13newpharmacieswereopened.Currently,thedistributionpointsin20citiesofGuangdongand12citiesofGuangxihavebeencompleted.AsofJune,therewere29hospitalcircumjacentpharmacieswithsalesgrowthof122%onayear-on-yearbasis,and25DTPpharmacieswithsalesgrowthof60%onayear-on-yearbasis.Whileadvancingthelayoutofprofessionalpharmacies,wehavecontinuouslyobtainedvarioustypesofmedicalinsurancequalifications:inthefirsthalfof2019,ShenzhenPharmacyandHexieRoadPharmacybecamethemajorandseriousdiseasesupplementarymedicalinsurancedrugretailpharmaciesofShenzhen;HuizhouPharmacyobtainedthequalificationofseriousdiseasemedicalinsuranceofHuizhou,whileZhuhaiPharmacyhasobtainedthequalificationofadditionalsupplementarymedicalinsuranceproject.

(4)Equipmentconsumablesbusiness:Withthegradualadvancementofmedicalreformpolicies,themedicaldeviceindustrysupervisionhasbecomeincreasinglystrict,andthemanagementadvantagesofdistributionforthedevicebusinesshaveemerged.Inthefirsthalfof2019,thesalesofequipmentbusinessincreasedbymorethan50%.Inthesalesofequipment,combinedwiththeneedsofhospitals,continuouslyimprovedtheviscosityofhospitalcustomersthroughplatformconstructionanddeeppersonalizedservice,formedavarietyofSPDprojectcustomizedsolutions,andpromotedthroughthecreationofSPDmodelhospital;exploredmedicalsuppliescountersalesandconsignmentsalesmodel,andpromotedthehospitalbiddingprocess;thesalesofSPDprojectsinthefirsthalfoftheyearincreasedby181%onayear-on-yearbasis.Inaddition,itactivelyacquiredthequalificationsforwholesalesandretailsofmedicaldevices,developedretailmedicaldevicemodels,andimprovedretailbusinessprocessesandretailsystemplatforms,inaddition,expanded4Dbusinessaroundthesupplychainserviceupgrades,thebusinessesofnewtypeofbusinesscompany(includingequipmentconsumables,equipmentmanagement,disinfectioncenter,etc.)havebeengraduallycarriedoutinanorderlymanner.GuodaDrugstore:Promotethecompany'sbrandupgrade,optimizethemanagementfoundation,strengthentheprofessionalpharmacyservicecapabilities,andcreatenewmodels.

(1)Accordingtothecompany'sstrategicplanninganddeployment,implementthenewbrandstrategy,successivelycompletethe"Guoda"upgradesand"Guozhi"brandintegrationplan,expandthebrandupgradeideas,formanumberoflandingplans,andcontinuetopromotebrandupgradesinthesecondhalfoftheyear.

(2)The"NewConcept"pilotpharmacyjointlylaunchedbyGuodaDrugstoreandWalgreensBootsAllianceopenedonJanuary20

thatShangnanRoad,PudongNewDistrictofShanghai.Uptonow,saleshaveincreasedby

34.8%onayear-on-yearbasis,andthenumberoftransactionshasincreasedby31.5%onayear-on-yearbasis.ThepilotpharmacyhasintegratedandimplementedanewbusinessoperationmodelwithadvanceddesignandoperationmanagementconceptofWalgreensPharmacyandBootsPharmacy.Introducedvarietiesandcooperatedwithanumberofglobalbrandsuppliers,setparametersvitalsignsdetector,andthetouchadvertisingmachineprovidedphysicalintelligentdetectionandonlinedrugpurchasingservices;launched"cloudhospital"project,sothatcustomerscanexperienceinternetmedicalservicessuchasremoteconsultation,electronickitchen,chronicdiseasemanagement,self-testmedication,andappointmentregistration.

(3)Professionalizationofpharmaceuticalservicecapabilities.Strengthenedprofessionalcompetence,andcarriedouttrainingcoursesforlicensedpharmacists;openedElearningplatformtopromoteonlinelearning;carriedoutthe"GuodaDrugstoreServiceImprovement"project;exploredasustainableandreplicablebasicservicemanagementsystem.

(4)BuiltanInternet+medicale-commercemodel.Improvedthevalue-addedservicesystem,optimizedtheself-operatedOTOplatformssuchasWeChatMallandAPP,createdapharmacy+InternetO2Omodel,enhancedthefront-endcustomerexperience,andlaunchedthee-commercenationalcustomerservice.Inthefirsthalfoftheyear,thenumberofeffectivemembersnationwidewas11.436million,anincreaseof8%overthesameperiodlastyear.

5.Strengthenpartybuilding-partybuildingisstrongfoundation,don’tforgettheinitialheartGuidedbytheparty'spoliticalconstruction,strengthenedthethemeeducationof"notforgettingtheinitialheart,keepingthemissioninmind"andthespecialactionof"partybuildingisstrongfoundation",focusedonthecompany'sdevelopmentstrategyandcentraltasks,focusedontheconsolidationofbasicorganization,basicteam,andgrouporganizationconstruction.

6.Cultivateinternalstrength-culturalpractice,andsedimentaryaccretionofbrand

Carriedoutvariousculturalactivities,gatheredheartandstrengthtogether,promotedcorporateculture

propagandaandpractice,focusedonbrandbuilding,gaveplaytobrandvalue,andcultivatedthedrivingforceof

enterprisedevelopment.SinopharmAccordCorporateCultureCommunicationProjectwontheBestLearning

ProjectAwardintheChinaTalentDevelopmentEliteAward(2018-2019).Atthesametime,SinopharmAccord

alsowonthe16

th

"ShenzhenFamousBrand"andtheexcellententerpriseinGuangdongProvince,andalsowon

themostsocialresponsibilityawardofGelonghui's2019A-sharelistedcompanies.

TheCompanyisrequiredtocomplywiththedisclosurerequirementsoftheIndustryInformationDisclosure

GuideoftheShenzhenStockExchangeNo.8-ListedCompaniesEngagedinRetail-RelatedBusinesses.

1.Theentitybusinessoperationsandthebusinessconditionofthestoresduringthereportingperiod:

AsoftheendofJune2019,Guodahad3,470direct-operatedstores,withsalesrevenueof5.381billionYuan,ayear-on-yeargrowthof11.82%,1,123franchisestoreswithdistributionrevenueof622millionYuan,anincreaseof7.64%onayear-on-yearbasis.

Region

RegionDirect-salestoreFranchisedoutlet
NumbersofthestoreSalesincome(in10thousandYuan)NumbersofthestoreSalesincome(in10thousandYuan)
North1,701254,87833821,517
EastChina829106,95658726,537
SouthChina42166,125874,133
CentralChina27724,7691112,586
Northwest24225,004-
Total3,470477,7311,12354,773

Note:

North:Liaoning,Shanxi,InnerMongolia,Beijing,Tianjin,Hebei;EastChina:Shanghai,Jiangsu,Anhui,Shandong,Fujian,Zhejiang;SouthChina:Guangdong,Guangxi;CentralChina:Henan,Hunan;Northwest:Ningxia,Xinjiang.

(1)Top10storesinsales

SerialRegionNameYearforstartingbusinessOperatingmodeBusinessactivityActualoperatingarea(inM2)Propertybelonging
1ShanxiYiyuanZhongliBranch2002Direct-sale5+X820.00Rental
2GuangdongShenzhenExhibitionHall2006Direct-saleModernpharmacy260.00Rental
3InnerMongoliaHQ2003Direct-sale5+XStore1,689.26Rental
4JiangsuJiangsuBaiyulanStore,Yangzhou1991Direct-saleModernpharmacy620.00Rental
5ShanxiYiyuanErYuanBranch2011Direct-sale5+X600.00Rental
6BeijingJinxiangStore,Xidang,Jinxiang1997Direct-saleModernpharmacy773.16Rental
7FujianXiamenNewSpecialMedicine2005Direct-saleModernpharmacy132.90Rental
8HebeiLeRenTangHQ2010Direct-saleTCMdiagnosisshops1,206.00Rental
9GuangdongLianhuabei,Shenzhen2003Direct-saleModernpharmacy120.33Rental
10BeijingYongdingstore2009Direct-saleModernpharmacy100.00Rental

(2)Infirsthalfof2019,281direct-saleshopsareself-opened,and53shopsclosedwith228self-openeddirect-saleshopsnetincreased,inaddition,partofthestoreshavebeenputintooperation.50newstoresactuallyincreased.

RegionDirect-salestoreFranchisedoutlet
NumberofstoreincreasedTotalareaNumberofstoresshutdownNumberofstoreincreasedNumberofstoresshutdown
North16917,970.35-1819-3
EastChina519,599.22-1518-9
SouthChina201,912.84-824-4
CentralChina111,478.14-17-2
Northwest303,002.63-11--
Total28133,963.18-5368-18

2.Infirsthalfof2019,onlinesalesdevelopedinasteadypace,andoveralle-commercerevenuegrowthsloweddown,andO2Oplatformsalestotaled154millionyuan.Detailsare:

In10thousandYuan

CooperationplatformBusinessrevenue
ChinaNationalHealthOn-line9,588.21
800FANG.CN(www.800pharm.com)73.96
Yaofangwang(www.yaofangwang.com)422.34
Yiyaowang(www.111.com.cn)41.38
OtherB2BE-business1,408.64
JDdaojia(http://daojia.jd.com)459.07
AliHealth115.14
YaoDaoJia0.13
WandaE-business0.28
Baidutakeout2.98
ele.me(www.ele.me/home)1,716.59

MeituanWaimai(waimai.meituan.com)

MeituanWaimai(waimai.meituan.com)1,365.62
WeChatMall204.87
Total15,399.19

3.Procurement,inventoryandsupplierfromtheheadquarter:top5suppliersinfirsthalfof2019:

In10thousandYuan

SupplierProcurementamount(taxincluded)Purchaseratio
No.18,00011%
No.26,1608%
No.35,2867%
No.44,7926%
No.54,2646%

4.Warehousingandlogistics:

Inthefirsthalfof2019,logisticswarehousesofGuodaDrugstorespreadover17provinces,therewere28largeandsmalllogisticswarehousesandthetotalwarehouseareawasover130,000squaremeters.

ProvinceRegionalenterpriseWarehousearea(InM2)ManagementownershipLogisticcharge(in10thousandYuan)Rate
LiaoningShenyangGuoda18,821Self-management771.510.97%
GuangdongGuangdongGuoda6,950SinopharmHoldingGuangzhouentrusted366.660.82%
JiangmenGuoda5,072Self-management247.381.48%
ShanxiShanxiWanmin10,919Self-management611.231.11%
ShanxiYiyuan8,860Self-management553.940.82%
JiangsuYangzhouGuoda4,869Self-management147.940.89%
NanjingGuoda2,200Self-management105.751.81%
LiyangGuoda1,920Self-management92.081.04%
FujianFujianGuoda5,688Self-management114.070.75%
QuanzhouGuoda1,096Self-management33.610.85%
HebeiHebeiGuoda4,300Self-management215.560.95%
ShandongShandongGuoda4,800Self-management240.881.20%
NingxiaNingxiaGuoda3,300Self-management141.671.28%
HunanHunanGuoda3,600Self-management151.640.97%

Henan

HenanHenanGuoda3,610Self-management176.711.29%
ZhengzhouGuoda1,515Self-management45.129.19%
InnerMongoliaInnerMongoliaGuoda5,236Self-management213.760.74%
GuangxiGuangxiGuoda1,950Self-management133.081.29%
BeijingBeijingGuoda4,389Self-management425.931.72%
BeijingJinxiang
TianjinTianjinGuoda1,200Self-management68.691.74%
AnhuiAnhuiGuoda1,000Self-management46.752.17%
XinjiangXinjiangGuoda3,517Self-management148.691.07%
ShanghaiShanghaiFumei20,000Self-management1310.301.32%
ShanghaiGuoda
ZhejiangZhejiangGuoda974Self-management53.372.55%
ShanghaiGuodaHQ13,192SinopharmLogisticentrusted600.000.99%
Total138,9777,016.341.20%

5.ThecommoditysuppliersofGuodaDrugstorearemainlyexternalsuppliers,andalsoassistedbysomeSinopharmaffiliatedenterprisesandprivatebrands.Thesaleforthefirsthalfof2019wasasfollows:

In10thousandYuan

PrivatebrandPropertyCategoryTurnover(taxincluded)Ratio
aGroup-buyingOEMHealth-carefood1,2370.23%
bGroup-buyingOEMKids160.00%
cGroup-buyingOEMGynecology100.00%
dGroup-buyingOEMCold50.00%
eGroup-buyingOEMPersonalcare160.00%
fGroup-buyingOEMFamilyhealth1,6020.30%
gGroup-buyingOEMAnti-infection310.01%
hGroup-buyingOEMAnti-allergic&antidinic140.00%
iGroup-buyingOEMClearingheatanddetoxitating1360.03%
jGroup-buyingOEMExternalusedrugs1570.03%
kGroup-buyingOEMFivesenseorgans1230.02%
lGroup-buyingOEMChineseherbalpieces1,8670.35%
Total--5,213.500.97%

II.Mainbusinessanalysis

FoundmoreinI.IntroductioninDiscussionandAnalysisofBusinessY-o-ychangesofmainfinancialdata

InRMB

Currentperiod

CurrentperiodSameperiodoflastyearY-o-yincrease/decreaseReasonsforchanges
Operatingrevenue25,228,147,377.4320,778,425,602.2221.42%Increased21.42%onay-o-ybasis,mainlybecausetheoperatingrevenuehasy-o-ygrowthforafavorableoperationconditionintheperiod
Operatingcosts22,415,519,952.8718,367,643,723.8422.04%Consistentwiththegrowthofoperatingrevenuebasically
Salesexpenses1,483,332,500.731,273,588,756.0716.47%Nomajorchanges
Administrationexpenses377,216,694.13351,820,063.787.22%Nomajorchanges
Financeexpenses104,095,254.2457,541,544.3280.90%Increased80.90%onay-o-ybasis,mainlybecauseunderthenewleasingstandards,theinterestexpensesofaleasingliabilityiscalculatedatthediscountrateforeachperiodoftheleaseterm,whilenosuchitemoccurredatsameperiodoflastyear
Incometaxexpenses192,243,926.50164,486,734.3216.88%Nomajorchanges
Netcashflowarisingfromoperatingactivities1,163,757,581.35225,357,709.20416.40%Increased416.40%onay-o-ybasis,mainlybecauseduetoagoodoperationconditions,thecashreceivedfromgoodsales,andprovidinglaborserviceareincreasedonay-o-ybasis
Netcashflowarising-135,236,954.51-18,211,602.74-642.59%Decreased642.59%ona

frominvestmentactivities

frominvestmentactivitiesy-o-ybasis,mainlybecausethebonusreceivedfromassociatedenterprisedeclinedfromayearearlierintheperiod
Netcashflowarisingfromfinancingactivities-891,486,201.45-288,243,874.04-209.28%Decreased209.28%onay-o-ybasis,mainlybecauseunderthenewleasingstandards,thecashofrentwasincludedinOtherCashPaidWithFinancingActivitiesConcerned,whilenosuchitemoccurredatsameperiodoflastyear
Netincreaseofcashandcashequivalent136,857,858.14-80,782,904.11269.41%Increased269.41%onay-o-ybasis,mainlybecausenetcashflowarisingfromoperatingactivityincreasedfromayearearlier.

Majorchangesonprofitcompositionorprofitresourcesinreportingperiod

□Applicable√NotapplicableNomajorchangesonprofitcompositionorprofitresourcesoccurredinreportingperiod.Constitutionofmainbusiness

InRMB

OperatingrevenueOperatingcostGrossprofitratioIncreaseordecreaseofoperatingrevenueoversameperiodoflastyearIncreaseordecreaseofoperatingcostoversameperiodoflastyearIncreaseordecreaseofgrossprofitratiooversameperiodoflastyear
Accordingtoindustries
Pharmaceuticalwholesale18,998,360,457.8617,841,023,662.966.09%23.12%23.15%-0.02%
Pharmaceuticalretail5,986,434,262.234,513,779,258.6824.60%16.16%17.04%-0.56%
Logisticsandwarehousingservices46,841,002.9541,457,036.5211.49%201.66%345.14%-28.53%
Leasingandother196,511,654.3919,259,994.7190.20%9.78%38.28%-2.02%
Accordingtoproducts

Drugs

Drugs23,547,484,934.3421,063,595,549.2310.55%19.35%20.99%-1.22%
Apparatus1,345,459,501.681,239,062,232.747.91%45.93%43.30%1.69%
Other335,202,941.42112,862,170.9066.33%165.94%19.73%41.12%
Accordingtoregion
Internalrevenue25,228,147,377.4322,415,519,952.8711.15%21.42%22.04%-0.45%

III.Analysisofnon-mainbusiness

□Applicable√NotapplicableIV.Assetsandliability

1.Majorchangesofassetscomposition

InRMB

EndofcurrentperiodEndoflastperiodRatiochangesNotesofmajorchanges
AmountRatiointotalassetsAmountRatiointotalassets
Monetaryfund8,086,328,508.4924.11%3,943,595,560.5816.42%7.69%MainlybecausereceivedacapitalincreaseforsubsidiaryGuodaDrugstoreinthehalfyearof2018fromstrategicinvestor
Accountreceivable11,826,440,731.5935.26%9,441,542,367.1939.32%-4.06%Nomajorchanges
Inventory4,882,673,616.2714.56%4,245,354,625.2217.68%-3.12%Nomajorchanges
Investmentproperty140,319,140.000.42%149,409,723.790.62%-0.20%Nomajorchanges
Long-termequityinvestment2,077,811,395.306.20%1,756,735,242.447.32%-1.12%Nomajorchanges
Fixassets593,552,480.991.77%550,102,564.292.29%-0.52%Nomajorchanges
Constructioninprocess31,980,582.210.10%30,805,874.110.13%-0.03%Nomajorchanges
Short-termloans3,290,877,595.239.81%2,051,139,651.678.54%1.27%Affectedbythemorefinancingforsupplychain
Long-termloans0.00%31,600,000.000.13%-0.13%Thelong-termloansarere-classifiedtonon-currentliabilityduewithinoneyearintheperiod

2.Assetsandliabilitymeasuredbyfairvalue

√Applicable□Notapplicable

InRMB

(1)Assetsandliabilitymeasuredbyfairvalue2019-6-30

Inputvalueusedforfairvaluemeasurement

Inputvalueusedforfairvaluemeasurement
ActivemarketquotationImportantobservableinputvalueImportantun-observableinputvalueTotal
(1stLevel)(2ndLevel)(3rdLevel)
ReceivablesFinancing-325,439,580.18-325,439,580.18
Otherequityinstrumentinvestment--13,685,760.00-13,685,760.00
Othernon-currentfinancialassets--140,000,000.00140,000,000.00
-339,125,340.18140,000,000.00479,125,340.18

2019-1-1

Inputvalueusedforfairvaluemeasurement
ActivemarketquotationImportantobservableinputvalueImportantun-observableinputvalueTotal
(1stLevel)(2ndLevel)(3rdLevel)
ReceivablesFinancing-567,775,275.40-567,775,275.40
Otherequityinstrumentinvestment--13,685,760.00-13,685,760.00
Othernon-currentfinancialassets--140,000,000.00140,000,000.00
-581,461,035.40140,000,000.00721,461,035.40

(2)Assetsandliabilityreleasedbyfairvalue

2019-1-1

Inputvalueusedforfairvaluemeasurement
ActivemarketquotationImportantobservableinputvalueImportantun-observableinputTotal

value

value
(1stLevel)(2ndLevel)(3rdLevel)
Long-termloans-31,600,000.00-31,600,000.00

3.Assetsrightrestrictiontillendofreportingperiod

Nil

V.Investment

1.Overallsituation

√Applicable□NotapplicableDuringthereportingperiod,thecompanynewlyestablishedsubsidiaries,includingSinopharmHoldingGuodaDrugstoreBayannao’erCo.,Ltd.(80%ofshareholdingratio),InnerMongoliaGuodaPharmaceuticalsCo.,Ltd.(100%ofshareholdingratio),andSinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.(51%ofshareholdingratio).Atthesametime,duringthereportingperiod,thecompanyparticipatedina30%stakeinShanghaiRenbeiPharmacyCo.,Ltd.anda10%stakeinGuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.Forspecificinvestment,pleaserefertonote(VIII)ofthefinancialreport.

2.Themajorequityinvestmentobtainedinthereportingperiod

□Applicable√Notapplicable

3.Themajornon-equityinvestmentdoinginthereportingperiod

□Applicable√Notapplicable

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√NotapplicableTheCompanyhadnosecuritiesinvestmentinthereportingperiod.

(2)Derivativeinvestment

□Applicable√NotapplicableTheCompanyhasnoderivativesinvestmentinthePeriod

VI.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable√NotapplicableTherearenomajorassetssellintheperiod

2.Salesofmajorequity

□Applicable√NotapplicableVII.AnalysisofmainholdingCompanyandstock-jointlycompanies

√Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%

InRMB

Company

name

CompanynameTypeMainbusinessRegistercapitalTotalassetsNetAssetsOperatingrevenueOperatingprofitNetprofit
SinopharmHoldingGuodaDrugstoreCo.,Ltd.Subsidiary"Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemicalmedicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&export1,683,333,333.0010,847,813,404.325,177,131,809.426,107,899,231.32251,957,080.15186,189,865.75

oftechnology"

oftechnology"
SinopharmHoldingGuangzhouCo.,Ltd.Subsidiary"Salesofdrugs,medicalapparatusandinstruments,freightage,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing"3,553,249,393.1714,292,376,683.434,222,799,887.4614,142,231,556.01353,918,899.20261,515,224.79
SinopharmHoldingGuangxiCo.,Ltd.Subsidiary"Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts"521,407,965.794,109,137,774.541,013,776,482.333,140,863,905.65114,052,144.8597,976,493.68

Particularaboutsubsidiariesobtainedordisposedinreportperiod

√Applicable□Notapplicable

CompanyThemethodofobtainingandhandlingsubsidiariesduringthereportperiodTheinfluencetothewholeproductionandperformance
SinopharmHoldingGuodaDrugstoreBayanNurCo.,Ltd.EstablishmentExpandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany
InnerMongoliaGuodaMedicineCo.,Ltd.EstablishmentExpandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany

SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.

SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.EstablishmentExpandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany

NotesofmainholdingCompanyandstock-jointlycompanies

VIII.StructuredvehiclecontrolledbytheCompany

□Applicable√NotapplicableIX.PredictionofbusinessperformancefromJanuary–September2019Estimationonaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationonreason

□Applicable√NotapplicableX.Risksandcountermeasures

1.ThemanagementrisksinsustainableexpansionofmarketingnetworkofGuodaDrugstoreThemarketingnetworkofGuodaDrugstorehasmaintainedstablegrowthtrendinrecentyearsthroughnewlyopenedstoresandextendedmergers.Theexpansionofsalesareaandincreaseofstoreshavebroughtpressureonthesiteselection,distribution,cashmanagement,marketingandhumanresourcemanagementofthestoresofGuodaDrugstore.TheCompanywillstrengthenthemanagementandconstructioninmerchandiseprocurement,logisticsanddistribution,marketingandotherlinksandestablishcorrespondingmanagementmethodsforeachlinksoastoensuretheunifiedstandardsandmanagementqualityforstoreexpansion.

2.RisksofintensifyingmarketcompetitionAtpresent,themarketconcentrationratioofdomesticpharmaceuticalretailmarketindustryisrelativelylow,andthenationalandregionalpharmaceuticalretailenterpriseshavefiercemarketcompetition.Asthecountrycontinuestointroducecorrespondingpoliciestoencouragetheintegrationofpharmaceuticalretailindustry,themajorpharmaceuticalretailenterprisesintheindustryhaveacceleratedthepaceofmergersandacquisitions,andcontinuedtoexpandthemarketingnetworks,improvethelogisticscenterconstructions,andinnovatethebusinessandprofitmodelssothatthesalesscaleandcomprehensivestrengthcontinuouslystrengthen.Atthesametime,withtheupgradingofconsumptionandthegradualopeningofmarket,thedistributionenterpriseswithpowerfulstrengthareenteringthedomesticpharmaceuticaldistributionmarketsthroughavarietyofways,sotheindustrycompetitionisfurtherintensifying.SinopharmAccordwillintegratetheexistingresources,createatwo-wheeldrivedevelopmentmodelwithintegrationofbothwholesaleandretail,deeplygivefullplaytosynergisticeffect,strengthenoperation,directlyfacetheendpatientsandconsumersbyvarietiescomplementation,capitalcooperation,supplychaincollaboration,internationalizationpromotion,strengtheningtheoverallplanningofinformationtechnologyandinvestmentinscienceandtechnology,andothermeasures,andachievebrandglobalizationthroughcapitaloperation.

3.RisksofchangesinindustrypolicyThedevelopmentofpharmaceuticalretailindustryisregulatedandinfluencedbytherelevantnationalpolicies.ThestatehaspromulgatedaseriesofdocumentssuchasGoodSupplyPracticeforPrescriptionProductsandSomeOpinionsonFurtherReformandImprovementofDrugProduction,CirculationandUsePolicy,whichputforwardspecificrequirementstotheindustryoperation.Alongwiththegradualincreaseofmanagementstandardsformanagementstandard,theregulationsareconstantlybeingrevisedandimprovedandputforwardhigherrequirementstothebusinessoperations.Inaddition,withthepromotionandimplementationofthenewmedicalreform,thestatehasimplementedtheessentialmedicinesystem,publichospitalreform,drugcentralizedprocurementbiddingsystemandtaxreductionpolicyforanticancerdrugsthroughoutthecountry,andrepeatedlyintroducedpoliciestoreducethedrugretailpriceceilinginordertoreducetheburdenofdruguse.IfthepoliciesintroducedintheprocessofimplementingnewmedicalreformimposerestrictionsontheindustrialdevelopmentandtheproductpriceofretailDrugstores,theoperationandprofitabilityofGuodaDrugstoremayhavetofacesomechallenges.TheSinopharmAccordhasactivelystudiedthepolicydirection,positivelyadjustedortransformedtheinnovativebusinessmodel,andfullyimplementedcompliancemanagement,strengthenedpolicyriskpreventionandcontrol,andensuredthesoundqualityofoperations.

4.RisksoffacingthehorizontalcompetitionInthepharmaceuticalretailfield,SinopharmGroup’saffiliateddistributionsubsidiarieshavealsoopenedsomesocialretailpharmacies,whichconstituteacertaindegreeofhorizontalcompetitionwiththesubordinateGuodaDrugstore.SinopharmGroupandSinopharmhavepledgedtotakeeffectivemeasurestoresolvethepossiblehorizontalcompetition.

5.RiskofgoodwillimpairmentsOnJune30,2019,thebookvalueofgoodwillintheCompany’sconsolidatedfinancialstatementswasRMB847,041,800.60andwasallocatedtotheassetgroupsofdistributionbranchesandretailbranches.TheCompanyconductsimpairmenttestongoodwillannuallyinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprises.DisclosuresrelatingtotheimpairmentsofgoodwillaresetoutinNotesV.31and43andNotesVII.28ofthefinancialstatements

SectionV.ImportantEventsI.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting

1.Shareholders’GeneralMeetinginthereportperiod

Sessionofmeeting

SessionofmeetingTypeRatioofinvestorparticipationDateDateofdisclosureIndexofdisclosure
Firstextraordinarygeneralmeetingof2019Extraordinarygeneralmeeting62.79%2019-01-242019-01-25JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofFirstextraordinarygeneralmeetingof2019No.:2019-07
AnnualGeneralMeetingof2018AGM65.67%2019-05-172019-05-18JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofAGMof2018No.:2019-26

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√NotapplicableII.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod

□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyear.III.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies

√Applicable□Notapplicable

CommitmentsPromiseTypeofcommitmentsContentofcommitmentsCommitmentdateCommitmenttermImplementation
CommitmentsinSinopharmCommitmentAsalargepharmaceuticalcommercialenterprisewhose2005-06-2Long-termNormally

reportofacquisitionorequitychange

reportofacquisitionorequitychangeHoldingofshareholdersbusinessinvolvespharmaceuticalwholesaleandretail,SinopharmHoldingmayoverlapwiththeCompanyingeographicalsegmentationduringitsfuturebusinessdevelopment.Toavoidthepotentialpeercompetitionbroughtbysuchgeographicaloverlap,SinopharmHoldingundertakesthat,uponthetransferofsharesofSinopharmHoldingGuangzhouitheldtoAccordPharma,"1.itwillnotnewly-establishorbroadenwithinGuangdonganybusinessoperationthatactuallycompetewiththatofAccordPharma,orsetupanynewsubsidiariesorsubordinateenterpriseswhoengageinsuchbusiness.2.ItwillenterintobusinessdelineationwithAccordPharmaandSinopharmHoldingGuangzhou,therebygivingthethreepartiescleargeographicalareastocarryoutpharmaceuticalwholesaleandretailbusinesses,soastoavoidpotentialpeercompetition.Apartfromabove,SinopharmHoldingwillnolongernewly-establishanyenterprisethatmaycompetewithAccordPharmaintheproductionandR&Dofpharmaceuticalproducts.""1effectiveimplementing
CommitmentsinassetsreorganizationSinopharmGroupCo.,Ltd;ChinaNationalPharmaceuticalForeignTradeCorporationCommitmentonrestrictedshares"SinopharmGroupandSinopharmForeignTrademadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Within6monthsafterthecompletionofthistransaction,iftheclosingpriceofthestockofSinopharmAccordislessthantheissuepriceincontinuous20tradingdays,ortheclosingpriceattheendof6monthsafterthecompletionofthistransactionislessthantheissueprice,thelockupperiodofthestockofSinopharmGroupandSinopharmForeignTradeobtainedfromSinopharmAccordbythistransactionwillautomaticallyprolongatleast6months.ThesharesderivedfromstockdividendsallocationandcapitalreserveincreasetransferringofSinopharmAccordbasedonthenon-publicofferingofsharesofSinopharmAccordobtainedbythistransactionshouldalsoabidebytheabovestockrestrictedarrangements."2016-05-3136monthsNormallyimplementing
Ping’anAssetsCommitmentonrestricted"PingAnAssetManagementCo.,Ltd.madecommitmentsintheReportaboutChinaNationalAccord2016-05-3136monthsNormallyimplementing

ManagementCo.,Ltd

ManagementCo.,LtdsharesMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Afterplacementcompleted,thesharesofthelistedCompanyincreasedduetobonussharesandturningtoincreasecapitalshouldpursuittotherestrictionarrangementtheabovementioned.
ChinaNationalAccordMedicinesCorporationLtd.Performancecommitmentandcompensationarrangement"SinopharmAccordmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyZhijunPharmaceuticalin2016,2017and2018shouldberespectivelynolessthanRMB222,671,700.00,RMB232,561,600.00,andRMB241,878,700.00;thenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyZhijunPharmacyTradein2016,2017and2018shouldberespectivelynolessthanRMB2,379,600.00,RMB2,335,100.00,andRMB2,345,600.00;thenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyPingshanPharmaceuticalin2016,2017and2018shouldberespectivelynolessthanRMB39,716,300.00,RMB43,033,500.00,andRMB50,325,500.00.Iftheactualnetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossesofZhijunPharmaceutical/ZhijunPharmacyTrade/PingshanPharmaceuticaldon’treachthecommittednetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlosses,SinopharmAccordshouldcompensateinaccordancewiththestipulationsoftheProfitForecastCompensationAgreementfortheStockIssuanceandAssetsPurchase."2016-05-312018-12-31Completed
ChinaNationalAccordMedicinesOthercommitments"ThelistedCompany,controllingshareholders,theactualcontrollersmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsand2016-05-31Long-termeffectiveNormallyimplementing

CorporationLtd.;SinopharmGroupCo.,Ltd;Sinopharm

CorporationLtd.;SinopharmGroupCo.,Ltd;SinopharmRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallnotviolatetherelevantregulationsofArticle16inSecuritiesIssuanceandUnderwritingManagementApproach,anddirectlyorindirectlyprovidingfinancialassistanceorcompensationforthesubscriptionobjectsanditsshareholders/partners/clients(ifany)ofthisnon-publicofferingdoesnotexistandwillnotoccurinthefuture."
Ping’anAssetsManagementCo.,LtdOthercommitments"PingAnAssetManagementCo.,Ltd.hasmadecommitmentsthattheunitintendstoutilizePingAnAssetXinxiangNo.3assetmanagementproductandPingAnAssetXinxiangNo.7assetmanagementproducttofundandsubscribesomenon-publicofferingofsharesofSinopharmAccordinthismajorassetrestructuringprocess,andhastheabilitytosubscribetheshares,therelevantcapitalsourcesarelegitimate,thereisnohierarchicalincomeandotherstructuredarrangements,andthereisnouseofleveragedfunds.TheunitdoesnotreceivefinancialassistanceorcompensationfromSinopharmAccordanditscontrollingshareholders,ortheactualcontrollers.Theinvestors’structureofabove-mentionedproductsdoesnotchangefromtheissuedateofthecommitmentlettertotheenddateofthelockupperiodofthestockthattheunitsubscribesfromSinopharmAccord."2016-03-24Long-termeffectiveNormallyimplementing
SinopharmGroupCo.,LtdCommitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation"SinopharmGroupmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbethecontrollingshareholderofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas"thisreorganization"),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthis2016-12-28Long-termeffectiveNormallyimplementing

reorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmHoldingGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusiness

opportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):

(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."

opportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."
ChinaNationalPharmaceuticalGroupCorporationCommitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation"SinopharmmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbetheactualcontrollerofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas"thisreorganization"),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmGroupGuodaPharmacyCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasing2016-12-28Long-termeffectiveNormallyimplementing

orcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."

orcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."
CommitmentsmakeininitialpublicofferingSinopharmHoldingCommitmentofshareholdersSinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toAvoidHorizontalCompetition:"First,theCompanyand2013-09-05Long-termeffectiveControllingshareholderisimplementin

orre-financing

orre-financingtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrol(inadditiontoSinopharmAccordanditscontrollingenterprises,hereinafterthesame)don’thavebusinessesandoperationsconstitutingthesubstantialhorizontalcompetitiontoSinopharmAccordanditscontrollingenterprises.Second,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitiesinGuangdongandGuangxiwhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalbusinessservices.Third,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitieswhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalindustrybusinesses.Fourth,theCompanyshallnottakeadvantageofthecontroltoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordandothershareholders(especiallymediumandsmallshareholders).Thiscommitmentlettertakeseffectfromtheissuedate,andremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord."realearnest,SinopharmAccordwillactivelyurgethecontrollingshareholderandactualcontrollertofulfillcommitments
SinopharmHoldingCommitmentofshareholdersSinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:"First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany("relatedparty"forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsofthe2013-09-05Long-termeffective

relatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteestoparticipateintheshareholders'generalmeeting,equallyexercisethecorrespondingrightsandtakethecorrespondingobligationsinaccordancewiththeconstitutionsofSinopharmAccord,nottotakeadvantageofcontrollingshareholderstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord."

relatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteestoparticipateintheshareholders'generalmeeting,equallyexercisethecorrespondingrightsandtakethecorrespondingobligationsinaccordancewiththeconstitutionsofSinopharmAccord,nottotakeadvantageofcontrollingshareholderstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord."
ChinaNationalPharmaceuticalGroupCorporationCommitmentofactualcontrollerSinopharmmadecommitmentsintheCommitmentLetterAboutChinaNationalPharmaceuticalGroupCorporationtoAvoidHorizontalCompetitionwithChinaNationalAccordMedicinesCorporationLtd.:"First,inthenextfiveyears,Sinopharmplanstotakeappropriatemeasures(includingassetsreplacementoracquisition,equityreorganization,etc.)toresolvethehorizontalcompetition2013-10-16Long-termeffectiveControllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurge

betweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord."

betweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord."thecontrollingshareholderandactualcontrollertofulfillcommitments
ChinaNationalPharmaceuticalGroupCorporationCommitmentofactualcontrollerSinopharmmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:"First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany("relatedparty"forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessof2013-09-22Long-termeffective

thepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord.

thepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord.
Completedontime(Y/N)Y

IV.Appointmentandnon-reappointment(dismissal)ofCPA

Financialreporthasbeenauditornot

□Yes√NoNotbeenaudited.V.ExplanationfromBoardofDirectors,SupervisoryCommitteefor"QualifiedOpinion"thatissuedbyCPA

□Applicable√NotapplicableVI.ExplanationfromtheBoardfor"QualifiedOpinion"oflastyear’s

□Applicable√NotapplicableVII.Bankruptcyreorganization

□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinPeriod.

VIII.LawsuitsMateriallawsuitsandarbitration

□Applicable√NotapplicableNosignificantlawsuitsandarbitrationoccurredinthereportingperiod.OtherlawsuitsAsofthedateofdisclosingthisreport,theCompanyhas25casesofcontractdisputesinthedailyoperation,withtotalamountofRMB85,067,800involved;threecasesofintellectualpropertyrightdispute,involvingatotalamountofRMB15,300,000;andonecaseofequitytransferdispute,involvingatotalamountofRMB32,913,800.Thetotalamountinvolvedintheabove29caseswasRMB133,281,600,whichneitherformedtheexpectedliabilities,norhadaneffectonnormaloperationandmanagementoftheCompany.IX.Penaltyandrectification

□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinPeriod.X.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers

√Applicable□NotapplicableInthereportingperiod,integrityoftheCompanyanditscontrollingshareholdersandactualcontrollersisgoodandtheydonothavearelativelylargeamountofdueexistingdebtwithcourt'seffectivejudgments.

XI.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√NotapplicableTheCompanyhasnoequityincentiveplan,employeestockownershipplansorotheremployeeincentivesinPeriod.XII.Majorrelatedtransaction

1.Relatedtransactionwithroutineoperationconcerned

(1)Relatedtransactionwithroutineoperationconcernedcanbefoundin"12.Relatedpartyandrelatedtransaction"carriedinSectionX.FinancialReport;

(2)Therelatedtransactionsaresettledincashandbynotes,accordingtothe"ProposalofExpectedRoutineRelatedTransactionswithSubordinateEnterpriseforYearof2019"wasdeliberatedandapprovedby10

thsessionof8

th

BODheldon23April2019and"AnnouncementonExpectedRoutineRelatedTransactionforYearof2019"(NoticeNo.:2019-18)releasedon25April2019,in2019,relatedsalestakes34.61%intotalexpectedamountforthewholeyear,andrelatedprocurementtakes38.47%intotalexpectedamountforthewholeyear.

2.Relatedtransactionsbyassetsacquisitionandsold

□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod.

3.Relatedtransactionsofmutualinvestmentoutside

□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod.

4.Contactofrelatedcreditanddebt

√Applicable□NotapplicableWhethertheCompanyhadnon-operatingcontactofrelatedcreditanddebt

□Yes√NoTheCompanyhadnonon-operatingcontactofrelatedcreditanddebtinthereportingperiod.

5.Otherrelatedtransactions

□Applicable√NotapplicableTheCompanyhadnootherrelatedtransactionintheperiod.

XIII.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty

□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.XIV.Significantcontractandimplementations

1.Trusteeship,contractandleasing

(1)Trusteeship

□Applicable√NotapplicableNotrusteeshipfortheCompanyinreportingperiod.

(2)Contract

□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod.

(3)Leasing

□Applicable√Notapplicable

NoleasingfortheCompanyinreportingperiod.

2.Majorguarantees

√Applicable□Notapplicable

(1)Guarantees

In10thousandYuan

ParticularsabouttheexternalguaranteeoftheCompany(Barringtheguaranteeforsubsidiaries)

ParticularsabouttheexternalguaranteeoftheCompany(Barringtheguaranteeforsubsidiaries)
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappening(Dateofsigningagreement)ActualguaranteelimitGuaranteetypeGuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
GuaranteebetweentheCompanyandthesubsidiaries
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappening(Dateofsigningagreement)ActualguaranteelimitGuaranteetypeGuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
SinopharmHoldingGuangzhouCo.,Ltd.2019-04-2515,0002019-05-2010,105.66Jointliabilityassurance2019.5.20-2020.5.20NN
SinopharmHoldingGuangzhouCo.,Ltd.2019-04-2550,0002019-05-3150,000Jointliabilityassurance2019.5.31-2020.5.30NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-09-1960,0002018-12-2045,242.22Jointliabilityassurance2018.12.20-2019.12.19NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-09-1925,0002019-01-1824,889.43Jointliabilityassurance2019.1.18-2020.1.17NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-03-2215,0002018-08-07Jointliabilityassurance2018.8.7-2019.8.6NN

SinopharmHoldingGuangzhouCo.,Ltd.

SinopharmHoldingGuangzhouCo.,Ltd.2019-04-2570,0002019-05-2050,523.89Jointliabilityassurance2019.5.20-2020.5.19NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-09-195,0002019-01-25Jointliabilityassurance2019.1.25-2020.1.24NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-09-1935,0002018-10-15Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-03-2240,0002018-06-0539,761.38Jointliabilityassurance2018.6.5-2019.6.4NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-03-2220,0002018-06-225,326.67Jointliabilityassurance2018.6.22-2019.4.30NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-03-2220,0002018-07-055,485.17Jointliabilityassurance2018.7.5-2019.7.4NN
SinopharmHoldingGuangzhouCo.,Ltd.2018-03-2260,0002018-06-1317,438.73Jointliabilityassurance2018.6.13-2019.6.12NN
SinopharmHoldingGuangdongYuexingCo.,Ltd.2019-04-252,5002019-05-20Jointliabilityassurance2019.5.20-2020.5.20NN
SinopharmHoldingGuangdongYuexingCo.,Ltd.2018-09-195,0002018-10-154,195.13Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingGuangdongYuexingCo.,Ltd.2019-04-2510,0002019-05-318,888.96Jointliabilityassurance2019.5.31-2020.5.30NN
Sinopharm2018-03-225,0002018-07-124,964.97Jointliability2018.7.12-20NN

HoldingGuangdongYuexingCo.,Ltd.

HoldingGuangdongYuexingCo.,Ltd.assurance19.6.12
SinopharmHoldingDongguanCo.,Ltd.2018-09-192,0002018-10-151,000Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingFoshanCo.,Ltd.2018-09-191,5002018-10-1536.16Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingFoshanCo.,Ltd.2018-09-191,0002018-11-20600.71Jointliabilityassurance2018.11.20-2019.11.19NN
SinopharmHoldingFoshanCo.,Ltd.2019-04-253,0002019-05-31Jointliabilityassurance2019.5.31-2020.5.30NN
SinopharmHoldingGuangdongHengxingCo.,Ltd.2018-09-193,0002018-11-091,868.89Jointliabilityassurance2018.11.16-2019.10.31NN
SinopharmHoldingGuangdongHengxingCo.,Ltd.2018-03-225,0002018-06-06393.52Jointliabilityassurance2018.6.6-2019.6.5NN
SinopharmHoldingHuizhouCo.,Ltd.2018-09-191,0002018-10-12415.6Jointliabilityassurance2018.10.12-2019.10.11NN
SinopharmHoldingHuizhouCo.,Ltd.2018-03-223,0002018-09-18Jointliabilityassurance2018.9.18-2019.9.17NN
SinopharmHolding(Jiangmen)Co.,Ltd.2018-09-191,0002018-10-15993.53Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingMeizhouCo.,Ltd.2018-09-191,0002018-10-15500Jointliabilityassurance2018.10.15-2019.10.14NN
FoshanNanhaiPharmaceuticalCo.,Ltd.2018-03-225,0002018-07-31Jointliabilityassurance2018.7.31-2019.7.31NN
FoshanNanhaiPharmaceutical2018-09-195,0002018-10-151,133.85Jointliabilityassurance2018.10.15-2019.10.14NN

Co.,Ltd.

Co.,Ltd.
FoshanNanhaiPharmaceuticalCo.,Ltd.2019-04-2510,0002019-05-316,019.69Jointliabilityassurance2019.5.31-2020.5.30NN
FoshanNanhaiPharmaceuticalCo.,Ltd.2018-09-193,0002018-11-202,914.03Jointliabilityassurance2018.11.20-2019.11.19NN
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.2018-03-225,0002018-07-31Jointliabilityassurance2018.7.31-2019.7.31NN
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.2018-09-196,0002018-10-151,499.92Jointliabilityassurance2018.10.15-2019.10.14NN
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.2019-04-2510,0002019-05-314,409.75Jointliabilityassurance2019.5.31-2020.5.30NN
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.2018-09-193,0002018-11-201,901.75Jointliabilityassurance2018.11.20-2019.11.19NN
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.2018-03-2215,0002018-07-0113,353.98Jointliabilityassurance2018.7.1-2019.6.30NN
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.2019-04-2515,0002019-05-2712,543.48Jointliabilityassurance2019.5.27-2019.10.31NN
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.2018-03-2210,0002018-07-029,144.56Jointliabilityassurance2018.7.2-2019.6.26NN
GuangdongNanfangPharmaceutical2018-03-2210,0002018-09-075,522.15Jointliabilityassurance2018.9.7-2019.9.6NN

ForeignTradeCo.,Ltd.

ForeignTradeCo.,Ltd.
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.2018-09-193,0002018-10-15Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingShantouCo.,Ltd.2018-09-195002018-10-15500Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingZhanjiangCo.,Ltd.2018-09-191,0002018-10-15900Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingZhaoqingCo.,Ltd.2018-09-192,0002018-10-15165.06Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingZhongshanCo.,Ltd.2018-09-191,0002018-10-15994.71Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingZhuhaiCo.,Ltd.2018-09-191,0002018-10-15998.29Jointliabilityassurance2018.10.15-2019.10.14NN
GuangdongDongfangNewSpecialMedicineCo.,Ltd2018-03-224,0002018-08-203,928.03Jointliabilityassurance2018.8.20-2019.8.19NN
GuangdongDongfangNewSpecialMedicineCo.,Ltd2018-09-195,0002019-01-104,975.91Jointliabilityassurance2019.1.10-2020.1.9NN
GuangdongDongfangNewSpecialMedicineCo.,Ltd2019-04-252,0002019-06-141,594.92Jointliabilityassurance2019.6.14-2020.6.13NN
GuangdongDongfangNewSpecialMedicineCo.,Ltd2019-04-255,0002019-05-314,395.35Jointliabilityassurance2019.5.31-2020.5.30NN
ChinaNationalAccordMedicines2018-09-1920,0002018-12-039,657.33Jointliabilityassurance2018.12.3-2019.11.27NN

CorporationLtd.

CorporationLtd.
SinopharmHoldingShenzhenJianminCo.,Ltd.2018-03-225002018-10-15450Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingShenzhenJianminCo.,Ltd.2018-09-191,0002018-12-24Jointliabilityassurance2018.12.24-2019.12.24NN
SinopharmHoldingShenzhenMedicineCo.,Ltd2018-03-225002018-10-1557.12Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingShenzhenYanfengCo.,Ltd.2018-09-199,0002018-10-152,500Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingShenzhenYanfengCo.,Ltd.2018-09-195,0002018-12-033,980Jointliabilityassurance2018.12.03-2019.11.27NN
SinopharmHoldingShenzhenYanfengCo.,Ltd.2018-03-227,0002018-06-204,500Jointliabilityassurance2018.06.13-2019.06.12NN
SinopharmHoldingLiuzhouCo.,Ltd.2018-09-199,0002018-10-155,600Jointliabilityassurance2018.10.15-2019.10.14NN
SinopharmHoldingLiuzhouCo.,Ltd.2019-04-2510,0002019-06-214,757.03Jointliabilityassurance2019.6.21-2020.6.20NN
SinopharmHoldingLiuzhouCo.,Ltd.2018-09-196,0002019-02-273,181.33Jointliabilityassurance2019.2.27-2020.2.26NN
SinopharmHoldingLiuzhouCo.,Ltd.2018-09-195,0002018-11-123,312.69Jointliabilityassurance2018.11.12-2019.11.11NN
SinopharmHoldingLiuzhouCo.,Ltd.2018-03-229,0002018-09-071,500.22Jointliabilityassurance2018.9.7-2019.9.5NN
SinopharmHoldingGuangxiCo.,Ltd.2018-09-1920,0002018-11-2619,297.35Jointliabilityassurance2018.11.26-2019.11.26NN
SinopharmHoldingGuangxiCo.,Ltd.2018-03-2228,0002018-10-1514,503.2Jointliabilityassurance2018.10.15-2019.10.14NN

SinopharmHoldingGuangxiCo.,Ltd.

SinopharmHoldingGuangxiCo.,Ltd.2018-09-1925,0002018-11-1512,298.67Jointliabilityassurance2018.11.15-2019.11.7NN
SinopharmHoldingGuangxiCo.,Ltd.2018-03-225,0002018-06-224,151.95Jointliabilityassurance2018.6.22-2019.6.21NN
SinopharmHoldingGuangxiCo.,Ltd.2018-09-1915,0002018-12-138,583.45Jointliabilityassurance2018.12.13-2019.11.27NN
SinopharmHoldingGuangxiCo.,Ltd.2018-03-2210,0002018-06-208,645.37Jointliabilityassurance2018.6.20-2019.6.20NN
SinopharmHoldingGuangxiCo.,Ltd.2018-03-225,0002018-06-052,999.62Jointliabilityassurance2018.6.5-2019.6.5NN
SinopharmHoldingGuangxiCo.,Ltd.2018-03-225,0002018-06-054,347.42Jointliabilityassurance2018.6.5-2019.6.5NN
SinopharmHoldingGuangxiCo.,Ltd.2019-04-2510,0002019-06-181,284.55Jointliabilityassurance2019.6.18-2020.6.18NN
Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1)212,500Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(B2)703,506.95
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3)785,500Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4)465,133.35
Guaranteebetweenthesubsidiariesandthesubsidiaries
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappening(Dateofsigningagreement)ActualguaranteelimitGuaranteetypeGuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.2018-09-192,0002018-10-101,441.37Jointliabilityassurance2018.10.10-2019.10.9NN

FujianGuodaDrugstoreChainCo.,Ltd.

FujianGuodaDrugstoreChainCo.,Ltd.2018-03-222,2752018-04-20157.4Jointliabilityassurance2018.4.20-2019.4.19NN
FujianGuodaDrugstoreChainCo.,Ltd.2019-04-255,0002019-05-181,842.28Jointliabilityassurance2019.5.18-2020.5.17NN
FujianGuodaDrugstoreChainCo.,Ltd.2019-04-252,0002019-05-10411.63Jointliabilityassurance2019.5.10-2020.5.9NN
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.2018-09-198,0002018-10-107,817.84Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.2018-09-192,4002018-12-20Jointliabilityassurance2018.12.20-2019.12.19NN
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.2018-09-193,0002018-10-092,395.71Jointliabilityassurance2018.10.9-2019.10.8NN
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.2018-09-193,0002018-09-282,275.98Jointliabilityassurance2018.9.28-2019.9.27NN
TaishanSinopharmHoldingGuodaQunkangDrugstoreChainCo.,Ltd.2019-04-258002019-06-02168.15Jointliabilityassurance2019.6.2-2020.6.1NN
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.2018-09-193,0002018-10-101,541.39Jointliabilityassurance2018.10.10-2019.10.9NN
ChinaNationalHebeiLerentangMedicineChain2018-09-193,0002018-10-102,282.58Jointliabilityassurance2018.10.10-2019.10.9NN

Co.,Ltd.

Co.,Ltd.
SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd.2018-03-223,0002018-06-24593.05Jointliabilityassurance2018.6.24-2019.6.23NN
HunanGuodaMinshentangDrugstoreChainCo.,Ltd.2018-09-193,0002018-10-101,286.61Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.2018-09-193,0002018-10-10961.87Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.2018-03-222,0002018-04-01980.71Jointliabilityassurance2018.4.1-2019.4.1NN
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.2018-09-192,0002018-09-281,396.64Jointliabilityassurance2018.9.28-2019.9.27NN
BeijingJinxiangDrugstoreMedicineChainCo.,Ltd2018-09-194,0002018-09-282,874.9Jointliabilityassurance2018.9.28-2019.9.27NN
SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd.2018-09-191,0002018-09-28363Jointliabilityassurance2018.9.28-2019.9.27NN
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.2018-03-223,0002018-07-03960.92Jointliabilityassurance2018.7.3-2019.7.2NN
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.2019-04-253,0002019-04-302,337.4Jointliabilityassurance2019.4.30-2020.4.29NN
Sinopharm2018-09-198,0002018-10-106,811.35Jointliability2018.10.10-2NN

HoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.

HoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.assurance019.10.9
NingxiaGuodaDrugstoreChainCo.,Ltd.2018-09-194,0002018-10-161,606Jointliabilityassurance2018.10.16-2019.10.16NN
SinopharmHoldingGuodaDrugstoreShandongCo.,Ltd.2018-09-194,0002018-11-282,624.36Jointliabilityassurance2018.11.28-2019.11.27NN
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.2018-09-195,0002018-10-162,500Jointliabilityassurance2018.10.16-2019.10.15NN
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.2019-04-256,0002019-06-134,059Jointliabilityassurance2019.6.13-2020.6.12NN
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.2018-09-195,0002018-11-213,168Jointliabilityassurance2018.11.21-2019.11.20NN
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.2018-09-194,0002018-10-10896.58Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-09-195,0002018-11-284,279.37Jointliabilityassurance2018.11.28-2019.11.27NN
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-03-2210,0002018-04-231,940.41Jointliabilityassurance2018.4.23-2019.4.22NN
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-09-196,0002018-10-152,884.52Jointliabilityassurance2018.10.15-2019.10.14NN

SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.

SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-09-196,0002018-11-173,070.04Jointliabilityassurance2018.11.17-2019.11.16NN
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-09-1915,0002018-10-1013,978Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd2018-09-193,0002018-10-112,105.42Jointliabilityassurance2018.10.11-2019.10.10NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2019-04-256,0002019-06-214,552.46Jointliabilityassurance2019.6.21-2020.6.20NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2018-09-197,0002019-04-021,179.99Jointliabilityassurance2019.4.2-2020.4.1NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2018-09-194,9002018-11-214,271.85Jointliabilityassurance2018.11.21-2019.11.20NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2019-04-255,6002019-06-141,500.66Jointliabilityassurance2019.6.14-2020.6.13NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2018-03-225,0002018-06-282,534.39Jointliabilityassurance2018.6.28-2019.6.27NN
Sinopharm2019-04-253,0002019-06-25Jointliability2019.6.25-20NN

HoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.

HoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.assurance20.6.24
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2018-09-195,0002018-10-104,997.5Jointliabilityassurance2018.10.10-2019.10.9NN
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.2018-09-193,0002018-11-15Jointliabilityassurance2018.11.15-2019.11.14NN
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.2018-09-192,0002018-09-289.47Jointliabilityassurance2018.9.28-2019.9.27NN
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.2018-09-1910,5002019-01-095,862.34Jointliabilityassurance2019.1.9-2020.1.8NN
SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd2018-09-195,0002018-10-30Jointliabilityassurance2018.10.30-2019.10.30NN
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.2018-09-196,0002019-01-183,488.8Jointliabilityassurance2019.1.18-2020.1.17NN
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.2018-09-194,0002019-02-191,000Jointliabilityassurance2019.2.19-2020.2.19NN
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.2018-09-198,0002019-04-0253.98Jointliabilityassurance2019.4.2-2020.4.1NN
Totalamountofapprovingguaranteeforsubsidiariesin31,400Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod171,617.77

reportperiod(C1)

reportperiod(C1)(C2)
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3)214,475Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4)111,463.92
TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee)
Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1)243,900Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2)875,124.72
Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3)999,975Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4)576,597.27
TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4)47.49%

(2)Guaranteeoutsideagainsttheregulation

□Applicable√NotapplicableNoguaranteeoutsideagainsttheregulationinPeriod.

3.Othermaterialcontracts

□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod.XV.Socialresponsibility

1.MajorenvironmentprotectionThelistedCompanyanditssubsidiarywhetherbelongtothekeysewageunitsreleasedfromenvironmentalprotectiondepartmentvoluntarydisclosure

Company/subsidiaryNameofMajorPollutantsandParticularPollutantsEmissionMethodQuantityofDischargeOutletDistributionofDischargeOutletEmissionConcentrationExecutedPollutantDischargeStandardsTotalEmissionsApprovedTotalEmissionsExcessiveDischarge
ChinaNationalZhijunCODTubeDischarge11DischargeOutletofWasteWater15.91mg/LDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.521ton/year6.64ton/yearN/A

ChinaNationalZhijun

ChinaNationalZhijunAmmoniaNitrogenTubeDischarge11DischargeOutletofWasteWater0.84mg/LDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.028ton/year0.7ton/yearN/A
ChinaNationalZhijunPhosphateTubeDischarge11DischargeOutletofWasteWater0.035mg/LDB44/26-2001Level1standardforthesecondperiod0.001ton/year0.0369ton/yearN/A
ChinaNationalZhijunBODTubeDischarge11DischargeOutletofWasteWater2.3mg/LDB44/26-2002Level1standardforthesecondperiod0.075ton/year1.476ton/yearN/A
ChinaNationalZhijunSSTubeDischarge11DischargeOutletofWasteWater7mg/LDB44/26-2002Level1standardforthesecondperiod0.229ton/year4.428ton/yearN/A
ZhijunPingshanCODTubeDischarge11DischargeOutletofWasteWater16.64mg/LTheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002)0.5162ton/year2.16ton/yearN/A
ZhijunPingshanAmmoniaNitrogenTubeDischarge11DischargeOutletofWasteWater0.768mg/LTheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002)0.0239ton/year0.144ton/yearN/A
ZhijunPingshanTotalphosphorusTubeDischarge11Discharge0.1mg/LTheClassIVwater(AmmoniaNitrogenupto0.0038ton/year0.0216ton/yearN/A

OutletofWasteWater

OutletofWasteWaterClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002)
ZhijunPingshanBODTubeDischarge11DischargeOutletofWasteWater2.86mg/LTheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002)0.089ton/year0.432ton/yearN/A
ZhijunPingshanSSTubeDischarge11DischargeOutletofWasteWater8mg/LTheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002)0.25ton/year2.16ton/yearN/A
MainLuckPharmaceuticalsCODTubeDischarge1DischargeOutletofWasteWater12mg/LDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.007ton/year0.053ton/yearN/A
MainLuckPharmaceuticalsAmmoniaNitrogenTubeDischarge1DischargeOutletofWasteWater0.5mg/LDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.0003ton/year0.006ton/yearN/A
MainLuckPharmaceuticalsPhosphateTubeDischarge1DischargeOutletofWasteWater0.05mg/lDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.00003ton/year0.0003ton/yearN/A
MainLuckPharmaceutiBODTubeDischarge1DischargeOutletof10mg/LDB44/26-2001LEVEL1STANDARDFORTHE0.006ton/year0.012ton/yearN/A

cals

calsWasteWaterSECONDPERIOD
MainLuckPharmaceuticalsSSTubeDischarge1DischargeOutletofWasteWater2mg/LDB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD0.001ton/year0.037ton/yearN/A

ConstructionandoperationofpollutionpreventionandcontrolfacilitiesTheabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedpollutionpreventionandcontrolfacilitiesforwastewater.Inthedailymanagementprocess,enterprisesestablishmanagementproceduresandoperatinginstructionsforenvironmentalprotectionfacilities,andensurethenormalandcompliantoperationofanti-pollutionfacilitiesthroughsystemimplementationandresponsibilityimplementation.Allenterprisesarecontinuouslyinvestingfundsandsteppingupthetransformationandimprovementofpollutionpreventionandcontrolfacilitiestoensurethestableoperationofpollutionpreventionfacilitiesandimprovethedisposalcapacityofenvironmentalprotectionfacilities.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativelicensesTheprojectsofallkeymonitoringunitshavecarriedoutenvironmentalimpactassessmentsandobtainedapprovals.Theprojectstobebuiltalsocarryouttherelevantadministrativereviewproceduresaccordingtothe"threesimultaneous"requirementsoftheenvironmentalprotectionfacilitiesoftheconstructionproject.EmergencyplanforenvironmentalemergenciesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveformulatedtheEmergencyPlanforEnvironmentalEmergenciesandreportedthemaccordingtotheregulatoryrequirementsofthelocalregulatoryauthorities.Accordingtothemanagementrequirementsoftheemergencyplan,thekeyunitsregularlycarryoutemergencyplandrillstofurtherprovidetheenterprises’emergencyresponsecapability.Environmentalself-monitoringschemeAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedenvironmentalself-detectionschemeandplan,andimplementedself-inspection,third-partydetectionandothermonitoringmethodsaccordingtothegovernmentrequirements.Relevantmonitoringdataandreportshavebeenarchivedandsaved.OtherenvironmentalinformationthatshouldbedisclosedTheabovetwocompaniesarejointstockcompaniesoftheCompany.TheCompanyanditsholdingsubsidiariesarenotlistedaskeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment.RelevantinformationonenvironmentprotectionNil

2.Executionofsocialresponsibilityoftargetedpovertyalleviation

TheCompanytemporarilynottocarryoutatargetedpovertyalleviationintheperiod,andtherearenofollow-upplanseither.

XVI.Explanationonothersignificantevents

□Applicable√NotapplicableNoexplanationonothersignificanteventoftheCompanyinthePeriod.XVII.SignificanteventofsubsidiaryoftheCompany

□Applicable√Notapplicable

SectionVI.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital

1.ChangesinShareCapital

InShare

BeforetheChange

BeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange
AmountProportionNewsharesissuedBonussharesCapitalizationofpublicreserveOthersSubtotalAmountProportion
I.Restrictedshares65,498,15315.30%65,498,15315.30%
2.State-ownedlegalperson’sshares60,380,74314.10%60,380,74314.10%
3.Otherdomesticshareholding5,117,4101.20%5,117,4101.20%
Including:Domesticlegalperson’sshares5,114,2971.19%5,114,2971.19%
Domesticnaturepersonshares3,1130.00%3,1130.00%
II.Unrestrictedshares362,628,83084.70%362,628,83084.70%
1.RMBOrdinaryshares307,744,35571.88%307,744,35571.88%
2.Domesticallylistedforeignshares54,884,47512.82%54,884,47512.82%
III.Totalshares428,126,983100.00%428,126,983100.00%

Reasonsforsharechanged

□Applicable√NotapplicableApprovalofsharechanged

□Applicable√NotapplicableOwnershiptransferofsharechanged

□Applicable√NotapplicableProgressofsharesbuy-back

□Applicable√NotapplicableImplementationprogressofthereductionofrepurchasessharesbycentralizedbidding

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytodisclosefortheCompanyorneedtodisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesofrestrictedshares

□Applicable√Notapplicable

II.Securitiesissuanceandlisting

□Applicable√NotapplicableIII.Numberofshareholdersandshare-holding

InShare

Totalcommonshareholdersatperiod-end

Totalcommonshareholdersatperiod-end19,108Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)(seeNote8)0
Particularsaboutsharesheldabove5%bycommonshareholdersortoptencommonshareholders
ShareholdersNatureofshareholderProportionofsharesheldNumberofcommonsharesheldatperiod-endChangesinreportingperiodAmountofrestrictedcommonsharesheldAmountofun-restrictedcommonsharesheldNumberofsharepledged/frozen
StateofshareAmount
SinopharmGroupCo.,LtdState-ownedcorporate56.06%239,999,99155,057,700184,942,291
HongKongSecuritiesClearingCompanyLtdOverseascorporate4.33%18,521,557018,521,557
HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFDOverseascorporate2.68%11,469,644011,469,644
ChinaNationalPharmaceuticalForeignTradeCorp.State-ownedcorporate1.24%5,323,0435,323,0430

FidelityInvestmentManagement(HongKong)Limited-Client’sfund

FidelityInvestmentManagement(HongKong)Limited-Client’sfundOverseascorporate1.07%4,582,90904,582,909
ChinaUnitedPropertyInsuranceCompanyLimited–TraditionalInsuranceProductsDomesticnonstate-ownedcorporate1.01%4,313,02404,313,024
#BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFundDomesticnonstate-ownedcorporate0.96%4,118,71604,118,716
CentralHuijinInvestmentLtd.State-ownedcorporate0.89%3,804,40003,804,400
Basicendowmentinsurancefund-portfolio1003Domesticnonstate-ownedcorporate0.77%3,294,33403,294,334
BBHBOSS/AFIDELITYFD-CHINAFOCUSFDOverseascorporate0.76%3,246,06103,246,061
ExplanationonassociatedrelationshipamongtheaforesaidshareholdersSinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.
Particularabouttoptencommonshareholderswithun-restrictsharesheld
ShareholdersAmountofun-restrictcommonsharesheldatTypeofshares

period-end

period-endTypeAmount
SinopharmGroupCo.,Ltd184,942,291RMBordinaryshares184,942,291
HongKongSecuritiesClearingCompanyLtd18,521,557RMBordinaryshares18,521,557
HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD11,469,644Domesticallylistedforeignshares11,469,644
FidelityInvestmentManagement(HongKong)Limited-Client’sfund4,582,909RMBordinaryshares4,582,909
ChinaUnitedPropertyInsuranceCompanyLimited–TraditionalInsuranceProducts4,313,024RMBordinaryshares4,313,024
#BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFund4,118,716RMBordinaryshares4,118,716
CentralHuijinInvestmentLtd.3,804,400RMBordinaryshares3,804,400
Basicendowmentinsurancefund-portfolio10033,294,334RMBordinaryshares3,294,334
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD3,246,061Domesticallylistedforeignshares3,246,061
BankofChina–HarvestMedicalCareSecuritiesInvestmentFund3,138,525RMBordinaryshares3,138,525
Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholdersItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.
Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld(ifapplicable)(seenote4)BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFundholdssharesoftheCompanythroughmargintradingandnegotiablesecuritiesaccountthatis4,118,716sharesintotal.

Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod

□Yes√No

Thetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.IV.Changesofcontrollingshareholdersoractualcontroller

Changesofcontrollingshareholdersinreportingperiod

□Applicable√NotapplicableChangesofcontrollingshareholdershadnochangeinreportingperiod.Changesofactualcontrollerinreportingperiod

□Applicable√NotapplicableChangesofactualcontrollerinreportingperiodhadnochangeinreportingperiod.

SectionVII.PreferredStock

□Applicable√NotapplicableTheCompanyhasnopreferredstockinreportingperiod.

SectionVIII.Directors,SupervisorsandSeniorExecutives

I.Changesofsharesheldbydirectors,supervisorsandseniorexecutives

□Applicable√NotapplicableSharesheldbydirectors,supervisorsandseniorexecutiveshavenochangesinreportingperiod,foundmoredetailsinAnnualReport2018.II.Resignationanddismissalofdirectors,supervisorsandseniorexecutives

√Applicable□Notapplicable

Name

NameTitleTypeDateReasons
LiuTianyaoViceGeneralManagerAppointmentandremoval2019-01-11NewViceGeneralManager
MaZhanjunDirectorElection2019-01-24Newdirectorof8thBOD
MaZhanjunVicechairmanElection2019-01-31Newvicechairmanof8thBOD
SuWeiweiIndependentdirectorElection2019-01-24Newindependentdirectorof8thBOD
WuYijianChairmanofSupervisoryCommitteeLeavetheoffice2019-05-17Forworkadjustment,leavetheofficeofChairmanofSupervisoryCommittee
WenDeyongSupervisorElection2019-05-17Newsupervisorof8thSupervisoryCommittee
WenDeyongChairmanofSupervisoryCommitteeElection2019-07-10NewChairmanofSupervisoryCommitteeof8thSupervisoryCommittee

SectionIX.CorporateBond

WhethertheCompanyhasacorporationbondsthatissuancepubliclyandlistedonstockexchangeandwithoutdueonthedatewhensemi-annualreportapprovedforreleasedorfailtocashinfullondueNo

SectionX.FinancialReport

I.Auditreports

Whetherthesemi-annualreportwasauditedornot

□Yes√NoThefinancialreportofthissemi-annualreportwasunaudited.II.FinancialStatement

StatementinFinancialNotesarecarriedinRMB/CNY

CONSOLIDATEDBALANCESHEET

Asat30June2019(ExpressedinRenminbiYuan)

ASSETS

ASSETSNoteV30June201931December2018
Currentassets
Cashandbankbalances18,086,328,508.498,089,781,304.56
Notesreceivable2790,664,828.261,357,311,929.63
Accountsreceivable311,826,440,731.599,336,861,647.92
Receivablefinancing4325,439,580.18-
Advancestosuppliers5357,078,819.64583,484,515.95
Otherreceivables6654,086,387.85643,493,359.32
Incl:Interestreceivable14,791,483.108,223,327.64
Inventories74,882,673,616.274,389,335,942.19
Othercurrentassets897,317,287.6095,347,629.18
Totalcurrentassets27,020,029,759.8824,495,616,328.75
Non-currentassets
Long-termequityinvestments92,077,811,395.301,880,393,786.10
Otherequityinstrumentsinvestment1013,685,760.0013,685,760.00
Othernon-currentfinancialassets11140,000,000.00140,000,000.00
Investmentproperties12140,319,140.00144,894,495.97
Fixedassets13593,552,480.99607,933,827.67
Constructioninprogress1431,980,582.2136,412,614.61
Right-of-useassets151,910,981,197.63-
Intangibleassets16320,522,690.59319,207,126.15
Goodwill17847,041,800.60833,547,800.60
Long-termprepaidexpenses18311,311,781.97311,328,706.46
Deferredtaxassets1965,417,507.0174,914,209.95
Othernon-currentassets2066,944,586.7672,365,863.71
Totalnon-currentassets6,519,568,923.064,434,684,191.22
Totalassets33,539,598,682.9428,930,300,519.97

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2019(ExpressedinRenminbiYuan)

LIABILITIES

LIABILITIESNoteV30June201931December2018
Currentliabilities
Short-termborrowings213,290,877,595.232,597,652,702.43
Notespayable223,539,095,262.343,416,755,681.80
Accountspayable238,088,697,602.946,468,535,961.17
Advancesfromcustomers--
Employeebenefitspayable25161,719,082.78231,866,407.40
Taxpayable26215,579,001.83241,980,412.72
Otherpayables271,474,526,698.431,539,436,971.93
Incl:Interestpayable29,012,444.9321,906,660.63
Dividendspayable6,389,320.966,389,320.96
Contractliabilities24239,739,020.90255,590,612.37
Non-currentliabilitiesduewithinoneyear28558,296,784.755,861,324.37
Othercurrentliabilities29445,493.48292,465.75
Totalcurrentliabilities17,568,976,542.6814,757,972,539.94
Non-currentliabilities
Long-termborrowings30-31,600,000.00
Leaseliabilities311,186,461,123.96-
Long-termpayables32800,000.004,563,978.52
Long-termemployeebenefitspayable331,915,000.002,050,000.00
Deferredincome3488,722,818.1891,491,170.40
Deferredtaxliabilities1966,386,258.7767,605,161.88
Othernon-currentliabilities3567,840,696.0969,241,176.18
Totalnon-currentliabilities1,412,125,897.00266,551,486.98
Totalliabilities18,981,102,439.6815,024,524,026.92

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2019(ExpressedinRenminbiYuan)

SHAREHOLDERS’EQUITY

SHAREHOLDERS’EQUITYNoteV30June201931December2018
Shareholders’equity
Sharecapital36428,126,983.00428,126,983.00
Capitalsurplus374,363,409,728.514,320,984,981.51
Surplusreserve38214,063,491.50214,063,491.50
Retainedearnings397,134,839,714.476,655,257,147.27
Shareholders’equityattributabletoshareholdersoftheparent12,140,439,917.4811,618,432,603.28
Non-controllinginterests2,418,056,325.782,287,343,889.77
Totalshareholders’equity14,558,496,243.2613,905,776,493.05
Totalliabilitiesandshareholders’equity33,539,598,682.9428,930,300,519.97

TheaccompanyingnotesformanintegralpartofthesefinancialstatementsThefinancialstatementshavebeensignedby:

Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:

CONSOLIDATEDINCOMESTATEMENTForthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

NoteV

NoteVForthesixmonthsended30June2019Forthesixmonthsended30June2018
Operatingrevenue4025,228,147,377.4320,778,425,602.22
Less:Operatingcosts4022,415,519,952.8718,367,643,723.84
Taxandsurcharge4162,139,226.4456,620,527.25
Sellingexpenses421,483,332,500.731,273,588,756.07
Administrativeexpenses43377,216,694.13351,820,063.78
Financecosts44104,095,254.2457,541,544.32
Incl:Interestcost169,529,472.3783,356,367.18
Interestincome60,630,036.9123,082,233.56
Add:Otherincomes4514,990,919.0211,330,310.02
Investmentincome46169,142,289.99162,693,771.35
Incl:Investmentincomefromassociates169,142,289.99162,662,271.35
Impairmentlossonfinancialassets47(11,434,101.13)1,026,702.24
Impairmentlosses48(125,554.34)(508,849.26)
Gainondisposalofassets49(29,725.44)4,281,164.61
Operatingprofits958,387,577.12850,034,085.92
Add:Non-operatingincome503,667,170.255,498,951.11
Less:Non-operatingexpenses511,718,265.561,797,292.80
Totalprofit960,336,481.81853,735,744.23
Less:Incometaxes52192,243,926.50164,486,734.32
Netprofit768,092,555.31689,249,009.91
NetProfitfromcontinuingoperations768,092,555.31689,249,009.91
Netprofitattributabletoshareholdersoftheparent650,833,360.40641,727,034.93
Profitorlossofnon-controllinginterests117,259,194.9147,521,974.98
Totalcomprehensiveincome768,092,555.31689,249,009.91
Incl:Totalcomprehensiveincomefortheyearattributabletoownersoftheparent650,833,360.40641,727,034.93
Totalcomprehensiveincomefortheyearattributabletonon-controllinginterests117,259,194.9147,521,974.98
Earningspershare
Basicearningspershare1.521.50
Dilutedearningspershare1.521.50

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30

June2019

Forthesixmonthsended30June2019Shareholders’equityattributabletoshareholdersoftheparentNon-controllinginterestsTotalequity
SharecapitalOtherequityinstrumentCapitalsurplusSurplusreserveRetainedearningsSubtotal
Closingbalanceoftheprecedingyear428,126,983.00-4,320,984,981.51214,063,491.506,655,257,147.2711,618,432,603.282,287,343,889.7713,905,776,493.05
others--------
Openingbalanceofthecurrentyear428,126,983.00-4,320,984,981.51214,063,491.506,655,257,147.2711,618,432,603.282,287,343,889.7713,905,776,493.05
Movementsinthecurrentyear--42,424,747.00-479,582,567.20522,007,314.20130,712,436.01652,719,750.21
(1)Totalcomprehensiveincome----650,833,360.40650,833,360.40117,259,194.91768,092,555.31
(2)Capitalpaidandreducedbyowners--42,424,747.00--42,424,747.0014,780,000.0057,204,747.00
1.Capitalinjectionbyowners------14,780,000.0014,780,000.00
2.Others--42,424,747.00--42,424,747.00-42,424,747.00
(3)Profitdistribution----(171,250,793.20)(171,250,793.20)(1,326,758.90)(172,577,552.10)
1.Distributiontoequityowners----(171,250,793.20)(171,250,793.20)(1,326,758.90)(172,577,552.10)
2.Others--------
Closingbalanceofthecurrentyear428,126,983.00-4,363,409,728.51214,063,491.507,134,839,714.4712,140,439,917.482,418,056,325.7814,558,496,243.26

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30

June2018

Forthesixmonthsended30June2018Shareholders’equityattributabletoshareholdersoftheparentNon-controllinginterestsTotalequity
SharecapitalOtherequityinstrumentCapitalsurplusSurplusreserveRetainedearningsSubtotal
Closingbalanceoftheprecedingyear428,126,983.00-3,181,429,064.99214,063,491.505,572,952,806.399,396,572,345.88530,930,411.269,927,502,757.14
others--------
Openingbalanceofthecurrentyear428,126,983.00-3,181,429,064.99214,063,491.505,572,952,806.399,396,572,345.88530,930,411.269,927,502,757.14
Movementsinthecurrentyear--397,342.21-513,288,940.03513,686,282.2437,434,714.46551,120,996.70
(1)Totalcomprehensiveincome----641,727,034.93641,727,034.9347,521,974.98689,249,009.91
(2)Capitalpaidandreducedbyowners--397,342.21--397,342.2126,721,512.7627,118,854.97
1.Capitalinjectionbyowners------24,381,200.0024,381,200.00
2.Others--397,342.21--397,342.212,340,312.762,737,654.97
(3)Profitdistribution----(128,438,094.90)(128,438,094.90)(36,808,773.28)(165,246,868.18)
1.Distributiontoequityowners----(128,438,094.90)(128,438,094.90)(36,808,773.28)(165,246,868.18)
2.Others--------
Closingbalanceofthecurrentyear428,126,983.00-3,181,826,407.20214,063,491.506,086,241,746.429,910,258,628.12568,365,125.7210,478,623,753.84

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDCASHFLOWSTATEMENT

Forthesixmonthsended30June2019(ExpressedinRenminbiYuan)

NoteV

NoteVForthesixmonthsended30June2019Forthesixmonthsended30June2018

1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodorrenderingof

services

Cashreceivedfromsalesofgoodorrenderingofservices25,674,088,675.8222,055,082,715.59
Taxrefunds2,721,287.631,593,193.21
Cashreceiptsrelatedtootheroperatingactivities53295,482,211.20311,984,787.60
Sub-totalofcashinflowsfromoperatingactivities25,972,292,174.6522,368,660,696.40
Cashpaidforgoodsandservices22,598,237,854.6819,799,894,631.80
Cashpaidtoandonbehalfofemployees1,088,230,430.51956,322,585.28
Cashpaidforalltypesoftaxes627,174,776.80548,616,793.36
Cashpaymentsrelatedtootheroperatingactivities53494,891,531.31838,468,976.76
Sub-totalofcashoutflowsfromoperatingactivities24,808,534,593.3022,143,302,987.20
Netcashflowsfromoperatingactivities541,163,757,581.35225,357,709.20

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceivedfromreturnsoninvestments

Cashreceivedfromreturnsoninvestments20,129,463.7878,825,446.85
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets801,205.526,064,099.87
Cashreceiptsrelatedtootherinvestingactivities53-48,766,145.15
Sub-totalofcashinflowsfrominvestingactivities20,930,669.30133,655,691.87

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

NoteV

NoteVForthesixmonthsended30June2019Forthesixmonthsended30June2018

2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets

Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets111,399,813.5197,867,494.61
Cashpaidforacquisitionofinvestments43,674,685.3010,000,000.00
Cashpaymentsrelatedtootherinvestingactivities531,093,125.0043,999,800.00
Sub-totalofcashoutflowsfrominvestingactivities156,167,623.81151,867,294.61
Netcashflowsfrominvestingactivities(135,236,954.51)(18,211,602.74)

3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers

Cashproceedsfrominvestmentsbyothers14,780,000.0011,781,200.00
Incl:Cashreceivedfromcapitalcontributionsfromnon-controllingshareholdersofsubsidiaries14,780,000.0011,781,200.00
Cashreceivedfromborrowings16,700,000.0040,775,440.04
Cashreceiptsrelatedtootherfinancingactivities533,512,659.7183,745,164.60
Sub-totalofcashinflowsfromfinancingactivities34,992,659.71136,301,804.64
Cashrepaymentsfordebts73,261,634.5379,670,200.30
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses343,055,058.89226,149,759.15
Incl:Profitanddividendspaidtonon-controllingshareholdersofsubsidiaries1,326,758.9040,392,215.98
Cashpaymentsrelatedtootherfinancingactivities53510,162,167.74118,725,719.23
Sub-totalofcashoutflowsfromfinancingactivities926,478,861.16424,545,678.68
Netcashflowsfromfinancingactivities(891,486,201.45)(288,243,874.04)

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

NoteV

NoteVForthesixmonthsended30June2019Forthesixmonthsended30June2018
4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS(176,567.25)314,863.47
5.NETINCREASEINCASHANDCASHEQUIVALENTS54136,857,858.14(80,782,904.11)
Add:Cashandcashequivalentsatbeginningoftheyear7,632,117,020.773,673,498,691.48
6.CASHANDCASHEQUIVALENTSATENDOFYEAR547,768,974,878.913,592,715,787.37

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET

Asat30June2019(ExpressedinRenminbiYuan)

ASSETS

ASSETSNoteXIV30June201931December2018
Currentassets
Cashandbankbalances2,210,653,256.991,817,654,598.01
Notesreceivable70,539,252.9463,870,980.39
Accountsreceivable1610,075,622.91631,236,593.94
Advancestosuppliers3,875,346.874,760,182.00
Otherreceivables21,858,484,572.601,541,980,883.50
Incl:Interestreceivable14,926,690.767,550,877.07
Dividendsreceivable106,074,898.00-
Inventories225,040,528.88158,166,185.65
Othercurrentassets39,482.3839,482.38
Totalcurrentassets4,978,708,063.574,217,708,905.87
Non-currentassets
Long-termequityinvestments37,639,715,544.557,432,906,692.24
Othernon-currentfinancialassets140,000,000.00140,000,000.00
Investmentproperties1,635,946.121,955,854.46
Fixedassets19,952,922.0521,362,422.03
Right-of-useassets6,316,333.03-
Intangibleassets2,997,883.632,452,222.51
Long-termdeferredexpenses6,990,428.047,481,809.53
Othernon-currentassets7,000,000.007,000,000.00
Totalnon-currentassets7,824,609,057.427,613,159,000.77
Totalassets12,803,317,120.9911,830,867,906.64

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2019(ExpressedinRenminbiYuan)

LIABILITIES

LIABILITIES30June201931December2018
Currentliabilities
Short-termborrowings570,000,000.00539,000,000.00
Notespayable321,344,616.65252,317,800.78
Accountspayable547,918,074.90442,049,241.22
Contractliabilities9,058,538.514,182,083.40
Employeebenefitspayable34,702,315.8236,233,563.12
Taxpayables11,430,926.2013,426,601.90
Otherpayables1,729,610,132.841,481,817,856.56
Incl:Interestpayable5,588,978.101,354,592.35
Non-currentliabilitiesduewithinoneyear32,452,757.27-
Othercurrentliabilities208,701.01226,427.99
Totalcurrentliabilities3,256,726,063.202,769,253,574.97
Non-currentliabilities
Long-termborrowings-31,600,000.00
Leaseliabilities5,584,622.27-
Long-termpayables800,000.00800,000.00
Long-termemployeebenefitspayable102,000.00118,000.00
Deferredincome1,508,786.841,687,899.50
Deferredtaxliabilities1,635,298.632,298,426.39
Totalnon-currentliabilities9,630,707.7436,504,325.89
Totalliabilities3,266,356,770.942,805,757,900.86

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2019(ExpressedinRenminbiYuan)

SHAREHOLDERS’EQUITY

SHAREHOLDERS’EQUITY30June201931December2018
Shareholders’equity
Sharecapital428,126,983.00428,126,983.00
Capitalsurplus4,468,787,524.264,426,362,777.26
Surplusreserves214,063,491.50214,063,491.50
Retainedearnings4,425,982,351.293,956,556,754.02
Totalshareholders’equity9,536,960,350.059,025,110,005.78
Totalliabilitiesandshareholders’equity12,803,317,120.9911,830,867,906.64

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYINCOMESTATEMENTForthesixmonthsended30June2019(ExpressedinRenminbiYuan)

NoteXIV

NoteXIVForthesixmonthsended30June2019Forthesixmonthsended30June2018
Operatingrevenue42,008,004,563.301,687,621,355.83
Less:Operatingcosts41,921,272,394.761,614,717,473.91
Taxandsurcharge2,519,247.992,016,368.93
Sellingexpenses31,052,044.8125,894,795.45
Administrativeexpenses38,056,806.3133,679,106.75
Financecosts(28,398,244.00)(19,369,880.08)
Incl:Interestcost23,271,307.7220,770,113.43
Interestincome52,479,722.4240,925,200.74
Add:Otherincomes332,764.131,299,345.14
Investmentincome5608,288,420.47534,840,744.46
Incl:Investmentincomefromassociates181,280,533.11173,326,290.14
Impairmentlossonfinancialassets(2,365,765.08)7,411.02
Impairmentlosses(102,112.84)(630,953.33)
Gainondisposalofassets(26,074.52)-
Operatingprofits649,629,545.59566,200,038.16
Add:Non-operatingincome46,069.4033.08
Less:Non-operatingexpenses-127,688.63
Totalprofit649,675,614.99566,072,382.61
Less:Incometaxes8,999,224.526,292,873.84
Netprofit640,676,390.47559,779,508.77
NetProfitfromcontinuingoperations640,676,390.47559,779,508.77
Totalcomprehensiveincome640,676,390.47559,779,508.77

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30

June2019

Forthesixmonthsended30June2019SharecapitalOtherequityinstrumentsCapitalsurplusSurplusreserveRetainedearningsTotalequity
Closingbalanceoftheprecedingyear428,126,983.00-4,426,362,777.26214,063,491.503,956,556,754.029,025,110,005.78
Others------
Openingbalanceofthecurrentyear428,126,983.00-4,426,362,777.26214,063,491.503,956,556,754.029,025,110,005.78
Movementsinthecurrentyear--42,424,747.00-469,425,597.27511,850,344.27
(1)Totalcomprehensiveincome----640,676,390.47640,676,390.47
(2)Capitalpaidandreducedbyowners--42,424,747.00--42,424,747.00
1.Capitalinjectionbyowners------
2.Others--42,424,747.00--42,424,747.00
(3)Profitdistribution----(171,250,793.20)(171,250,793.20)
1.Distributiontoowners----(171,250,793.20)(171,250,793.20)
Closingbalanceofthecurrentyear428,126,983.00-4,468,787,524.26214,063,491.504,425,982,351.299,536,960,350.05

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY(Continued)

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June

2018

Forthesixmonthsended30June2018SharecapitalOtherequityinstrumentsCapitalsurplusSurplusreserveRetainedearningsTotalequity
Closingbalanceoftheprecedingyear428,126,983.00-4,407,091,484.13214,063,491.503,329,412,821.488,378,694,780.11
Others------
Openingbalanceofthecurrentyear428,126,983.00-4,407,091,484.13214,063,491.503,329,412,821.488,378,694,780.11
Movementsinthecurrentyear--397,342.21-431,341,413.87431,738,756.08
(1)Totalcomprehensiveincome----559,779,508.77559,779,508.77
(2)Capitalpaidandreducedbyowners--397,342.21--397,342.21
1.Capitalinjectionbyowners------
2.Others--397,342.21--397,342.21
(3)Profitdistribution----(128,438,094.90)(128,438,094.90)
1.Distributiontoowners----(128,438,094.90)(128,438,094.90)
Closingbalanceofthecurrentyear428,126,983.00-4,407,488,826.34214,063,491.503,760,754,235.358,810,433,536.19

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENTForthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2019

Forthesixmonthsended30June2019Forthesixmonthsended30June2018

1.CASHFLOWSFROMOPERATINGACTIVITIES

Cashreceivedfromsalesofgoodorrenderingof

services

Cashreceivedfromsalesofgoodorrenderingofservices2,136,424,520.771,787,065,555.60
Cashreceiptsrelatedtootheroperatingactivities18,658,823.8243,943,301.92
Sub-totalofcashinflowsfromoperatingactivities2,155,083,344.591,831,008,857.52
Cashpaidforgoodsandservices1,905,147,658.611,655,107,446.18
Cashpaidtoandonbehalfofemployees48,424,818.8744,855,325.83
Cashpaidforalltypesoftaxes27,913,893.1318,706,775.51
Cashpaymentsrelatedtootheroperatingactivities17,265,038.1236,183,479.25
Sub-totalofcashoutflowsfromoperatingactivities1,998,751,408.731,754,853,026.77
Netcashflowsfromoperatingactivities156,331,935.8676,155,830.75

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceivedfromreturnsofinvestments

Cashreceivedfromreturnsofinvestments55,106,832.79187,137,437.23
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets119,000.00-
Cashreceiptsrelatedtootherinvestingactivities996,340,000.00857,940,000.00
Sub-totalofcashinflowsfrominvestingactivities1,051,565,832.791,045,077,437.23
Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets5,983,680.116,044,462.78
Cashpaidforinvestments-10,000,000.00
Cashpaymentsrelatedtootherinvestingactivities1,200,340,000.001,051,642,980.00
Sub-totalofcashoutflowsfrominvestingactivities1,206,323,680.111,067,687,442.78
Netcashflowsfrominvestingactivities(154,757,847.32)(22,610,005.55)

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2019

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2019Forthesixmonthsended30June2018

3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceivedfromborrowings

Cashreceivedfromborrowings10,000,000.0010,000,000.00
Cashreceiptsrelatedtootherfinancingactivities11,037,461,719.138,065,884,436.80
Sub-totalofcashinflowsfromfinancingactivities11,047,461,719.138,075,884,436.80
Cashrepaymentsfordebts10,000,000.0010,000,000.00
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses182,679,899.11144,898,008.66
Cashpaymentsrelatedtootherfinancingactivities10,463,180,682.338,230,488,300.78
Sub-totalcashoutflowsfromfinancingactivities10,655,860,581.448,385,386,309.44
Netcashflowsfromfinancingactivities391,601,137.69(309,501,872.64)
4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS(176,567.25)314,863.47
5.NETINCREASEINCASHANDCASHEQUIVALENTS392,998,658.98(255,641,183.97)
Add:Cashandcashequivalentsatbeginningoftheyear1,817,654,598.011,776,696,342.87
6.CASHANDCASHEQUIVALENTSATENDOFYEAR2,210,653,256.991,521,055,158.90

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

NotestofinancialstatementsForthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany

(1)HistoricaldevelopmentandbasicinformationAsapprovedbythePeople’sGovernmentofShenzhen(SFBF(1993)No.356),ChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasthe“theCompany”),formerlyknownasShenzhenHealthMineralWaterCorp.,Ltd.,wasregisteredasajointstockliabilitylimitedcompanyon1February1993throughstocktransformation.InMarch1993,withtheapprovalfromtheShenzhenBranchofthePeople’sBankofChina,theCompanyissued30millionAshares(including16.5millionpublicshares,3.5millionemployeesharesand10millioncorporationshares)and20millionBshares.Afterthisissuance,theCompany’ssharecapitalwasRMB105million.Throughconvertcapitalsurplusintosharecapital,bonusissuesandissuanceofsharesforyears,thesharecapitaloftheCompanyincreasedtoRMB428,126,983asat30June2019.InNovember2000,theCompanyenteredintoanAssetsExchangeAgreementwithShenzhenInvestmentManagementCompany,theoriginalmajorshareholderoftheCompany,toexchangealltheassetsandliabilitiesoftheCompanyasof31August2000forShenzhenInvestmentManagementCompany’s100%equityinterestsin11pharmaceuticalcompaniesandcertainpropertiesaswellas51%equityinterestsinShenzhenTefaModernComputerCo.,Ltd.TheaboveassetsexchangeproposalwasapprovedbyshareholdersintheSecondExtraordinaryGeneralMeetingonDecember29,2000.Thetransactionwascompletedon8January2001.On18February2004,theCompany’soriginalmajorshareholder,ShenzhenInvestmentManagementCompany,enteredintoaStockTransferAgreementwithSinopharmGroupCo.,Ltd.(hereinafterreferredtoas“SinopharmGroup”)totransferits43.33%sharesintheCompanytoSinopharmGroup.Thelegalproceduresoftheaboveequitytransferwerecompletedon9December2004.Atthesametime,asapprovedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(GZCQ(2004)No.525)andtheChinaSecuritiesRegulatoryCommission(ZJGSZ(2004)No.94),thenatureoftheseshareswaschangedfromstate-ownedstocktostate-ownedlegalentitystockandSinopharmGroupbecamethelargestshareholderoftheCompany.On14April2006,theCompany’sproposalonreformationofsegregatedstockswasapproved.TogainliquidityfortherestrictedstocksoftheCompany,theholdersoftherestrictedstocksoftheCompanyagreedtopaythefollowingconsideration:basedonthestockregistrationasof27April2006,theCompanyissuedbonusshareson28April2006attheratioof3sharestoevery10AsharestoliquidatedA-shareholderswhichwentpubliconthesameday.Afterthisbonusissue,thetotalnumberofsharesoftheCompanyremainedunchangedwithcorrespondingchangesinthecompositionofshareholdings.OnMarch142014,thecompanyissued74,482,543ordinaryshares(Ashares)throughthenon-publicoffering.ParvaluepershareisRMB1yuan.Thesharesshallnotbetransferredwithin36monthssincetheissuedday.ThetotalnumberofsharesoftheCompanywas362,631,943sincethedateofissue.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany(Continued)

(1)Historicaldevelopmentandbasicinformation(Continued)Asof31October2016,thecompanyissuedRMB65,495,040.00ordinaryshares(Ashares)throughthenon-publicoffering.ParvaluepershareisRMB1yuan.Throughthenon-publicoffering,theCompanyacquiredthecompaniesundercommoncontrol,includingSinopharmHoldingGuodaPharmacyCo.,Ltd.(“GuodaPharmacy”),FoshanNanhaiMedicineGroupCo.,Ltd.(“FoshanNanhai”),GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.(“SouthPharma&Trade),GuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(“GuangdongUptodate&SpecialMedicines”)byissuingsharesandraisedsupportingfundsbyissuingsharestoPingAnAssetManagementCo.,Ltd.(“PingAnAssetManagement”)toacquirenon-controllinginterestofSouthPharma&Trade.Therelevantsharesweresuccessfullyissuedandlistedon5January2017.Asof30June2019,thetotalsharecapitalwasRMB428,126,983.TheCompanyisregisteredwithShenzhenAdministrationforIndustry&Commerce.ItsUniformSocialCreditCodeis91440300192186267U.TheoperationperiodoftheCompanyisfrom2August1986tothelongterm.TheregisteredcapitaloftheCompanyisRMB428,126,983.ThelegalrepresentativeoftheCompanyisLinZhaoxiong.TheapprovedscopeofbusinessoftheCompanyanditssubsidiaries(together“theGroup”)includes:

thewholesaleoftraditionalChinesemedicinepreparations,bulkpharmaceuticaldrugs,chemicalpreparations,bulkantibioticdrugs,antibioticpreparations,biochemicaldrugs,biologicalproducts(includingvaccinesandinvitrodiagnosticreagentspsychotropicdrugsandpreparations,narcoticdrugs,toxicdrugsformedicaluse,proteinassimilationpreparationandpeptidehormones;tradeofdietarysupplement;research,developmentandconsultationservicesofpharmaceuticalpackagingmaterialsandpharmaceuticalindustryproducts;industrialinvestmentholding;domestictrade;materialsupplyandmarketingindustry(otherthanspeciallicensing);saleofambulances;tradeofsecond-classandthird-classmedicalequipment;projectinvestment;propertymanagementandleaseofself-ownedproperties;pharmacovigilanceandmedicalinformationconsulting;parkingoperation;logisticsandrelatedservices;packageagencybusiness;logisticdesign;importandexportservices(excludingprojectsthatareprohibitedbythecountry;limitedprojectshastobeapprovedbeforeoperating).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany(Continued)

(2)TheGroup’sparentandultimateparentcompanyisSinopharmGroupandChinaNational

PharmaceuticalGroupCorporationrespectively.

(3)ThesefinancialstatementswereauthorizedforissuebytheboardofdirectorsoftheCompany

on22August2019.

(4)SubsidiariesconsolidatedinthefinancialstatementsforthecurrentperiodandchangeintheconsolidationscopeareshowninNoteVI.IIBasisofpreparationThefinancialstatementswerepreparedinaccordancewiththeBasicStandardandspecificstandardsoftheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceon15February2006andthespecificaccountingstandardsandtherelevantregulationsissuedthereafter(hereaftercollectivelyreferredtoasthe“AccountingStandardsforBusinessEnterprises”or“CAS”),andthedisclosurerequirementsinthePreparationConventionofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15–GeneralRulesonFinancialReportingissuedbytheChinaSecuritiesRegulatoryCommission.Thesefinancialstatementsarepreparedonagoingconcernbasis.Exceptforcertainfinancialinstruments,thefinancialstatementshavebeenpreparedusinghistoricalcostastheprincipleofmeasurement.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.TheGrouphasmadeaccountingpoliciesandaccountingestimatesaccordingtoitsownoperationandproductioncharacteristics,whicharemainlyreflectedinthebaddebtprovisionforaccountsreceivable(NoteⅢ

(10)),inventorycostingmethods(NoteⅢ

(13)),depreciationmethodsforfixedassetsandamortizationmethodforintangibleassets(NoteⅢ

(18),NoteⅢ

(22)),judgementbasisforcapitalizationofdevelopmentcosts(NoteⅢ

(22)),impairmentoflong-termassets(NoteⅢ

(23)),revenuerecognition(NoteⅢ

(30)).

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates

(1)StatementofcompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementsoftheCompanyfortheyearended30June2019areincompliancewithAccountingStandardsforBusinessEnterprises,andtrulyandcompletelypresentthefinancialpositionoftheGroupandtheCompanyasof30June2019andtheoperatingresults,cashflowsandotherinformationforthesixmonthsended30June2019oftheGroupandtheCompany.

(2)AccountingyearTheCompany’saccountingyearstartson1Januaryandendson31December.

(3)FunctionalcurrencyThefunctionalcurrencyisRenminbi(RMB).

(4)Businesscombinations(a)BusinesscombinationsinvolvingentitiesundercommoncontrolAssetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingshareholder’sacquisitionofthepartybeingabsorbed)thatareobtainedbytheabsorbingpartyinabusinesscombinationshallbemeasuredattheircarryingamountsatthecombinationdateasrecordedbythepartybeingabsorbed.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)shallbeadjustedtosharepremiumundercapitalsurplus.Ifthecapitalsurplusisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Thetransactioncostsofissuingequitysecuritiesordebtsecuritiesforabusinesscombinationarerecognizedattheinitialrecognitionamountofequitysecuritiesordebtsecurities.(b)BusinesscombinationsinvolvingenterprisesnotundercommoncontrolThecostofcombinationandidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationaremeasuredatfairvalueattheacquisitiondate.Wherethecostofthecombinationexceedstheacquirer’sinterestinthefairvalueoftheacquirer’sidentifiablenetassets,thedifferenceisrecognizedasgoodwill;wherethecostofcombinationislowerthantheacquirer’sinterestinthefairvalueoftheacquirer’sidentifiablenetassets,thedifferenceisrecognizedinprofitorlossforthecurrentperiod.Costsdirectlyattributabletothecombinationareincludedinprofitorlossintheperiodinwhichtheyareincurred.Transactioncostsassociatedwiththeissueofequityordebtsecuritiesforthebusinesscombinationareincludedintheinitiallyrecognizedamountsoftheequityordebtsecurities.Wherethebusinesscombinationnotinvolvingenterprisesundercommoncontrolwhichisachievedinstages,theacquirer’spreviouslyheldequityinterestsintheacquireeareremeasuredatthefairvalueontheacquisitiondate,withthedifferencebetweenthefairvalueandcarryingamountrecognizedasinvestmentincomeforthecurrentperiod.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(4)Businesscombinations(Continued)(b)Businesscombinationsinvolvingenterprisesnotundercommoncontrol(Continued)Iftheacquirer’spreviouslyheldequityinterestsoftheacquireeinvolveothercomprehensiveincome(“OCI”)undertheequitymethod,theaccountingtreatmentisconductedonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities,andthechangesinshareholders’equityotherthannetprofitorloss,OCIandprofitdistributionsarechargedtoprofitorlossforthecurrentperiodontheacquisitiondate.ForfinancialassetsatfairvaluethroughOCIheldbeforetheacquisitiondate,changesinfairvaluethatwasaccumulatedthroughOCIwilltransfertoretainedearnings.

(5)PreparationofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyandallofitssubsidiaries.SubsidiariesareconsolidatedfromthedateonwhichtheGroupobtainscontrolandarede-consolidatedfromthedatethatsuchcontrolceases.Forasubsidiarythatisacquiredinabusinesscombinationinvolvingenterprisesundercommoncontrol,itisincludedintheconsolidatedfinancialstatementsfromthedatewhenit,togetherwiththeCompany,comesundercommoncontroloftheultimatecontrollingparty.Theportionofthenetprofitsrealizedbeforethecombinationdateispresentedseparatelyintheconsolidatedincomestatement.Inpreparingtheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsoftheCompanyandsubsidiariesareinconsistent,thefinancialstatementsofthesubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandtheaccountingperiodoftheCompany.Forsubsidiariesacquiredfrombusinesscombinationsinvolvingenterprisesnotundercommoncontrol,theindividualfinancialstatementsofthesubsidiariesareadjustedbasedonthefairvalueoftheidentifiablenetassetsattheacquisitiondate.Allsignificantintra-groupbalances,transactionsandunrealizedprofitsareeliminatedintheconsolidatedfinancialstatements.Theportionofasubsidiary’sequityandtheportionofasubsidiary’snetprofits,lossesandcomprehensiveincomefortheperiodnotattributabletotheCompanyarerecognizedasnon-controllinginterestsandpresentedseparatelyintheconsolidatedfinancialstatementswithinequity,netprofitsandtotalcomprehensiveincome,respectively.TheunrealizedgainorlossfromsellingassetstosubsidiariesfullyoffsetsthenetincomeattributabletoequityholdersoftheCompany.TheunrealizedgainorlossfrompurchasingassetsfromsubsidiariesoffsetsthenetincomeattributabletoequityholdersoftheCompanyandattributabletothenon-controllinginterestbythedistributionproportionregardingtheCompanyandthesubsidiary.TheunrealizedgainorlossfromatransactionbetweensubsidiariesoffsetsthenetincomeattributabletoequityholdersoftheCompanyandattributabletothenon-controllinginterestbythedistributionproportionregardingtheCompanyandthesellingsideofthesubsidiaries.Ifdifferentrecognitionperspectivesforthesametransactionarisewithindifferentaccountingidentitieswhicharesetup,thereisanadjustmentforthetransactionfromtheGroup’sperspective.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(5)Preparationofconsolidatedfinancialstatements(Continued)WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposaloftheequityinvestmentinsubsidiarieswherecontrolisretained.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognizedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.

(6)CashandcashequivalentsCashandcashequivalentscomprisecashonhand,depositsthatcanbereadilydrawnondemand,andshort-termandhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandaresubjecttoaninsignificantriskofchangesinvalue.

(7)ForeigncurrencytranslationForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognizedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalizedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedatesofthetransactions.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.

(8)FinancialinstrumentsFinancialinstrumentsarethecontractsthatformedthefinancialassetsofoneentity,andatthesametimeformedthefinancialliabilitiesorequityinstrumentsofotherentities.RecognitionandderecognitionoffinancialinstrumentsFinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(8)Financialinstruments(Continued)

Recognitionandderecognitionoffinancialinstruments(Continued)TheGroupderecognisesafinancialasset,partofafinancialassetorgroupoffinancialassets,i.e.,offsetfromtheaccountsandstatementoffinancialposition,ifeitherofthefollowingconditionsissatisfied:

(i)Thecontractualrightstothecashflowsfromthefinancialassetexpire;or(ii)Thecontractualrightstothecashflowsfromthefinancialassetaretransferredout,orobligated

totransferoutallgeneratedcashflowsonreceipt;and(a)substantiallyalltherisksandrewards

ofownershipofthefinancialassetaretransferredtothetransferee;or(b)theGroupneither

transfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,

buthasnotretainedcontrolofthefinancialasset.TheGroupderecognisesafinancialliabilityonlywhentheunderlyingpresentobligationissettled,dischargedorexpired.Anagreementtoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferentterms,ortomodifytheoriginalfinancialliability’stermssubstantially,isaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.ThedifferencebetweenthecarryingamountofthefinancialliabilityDerecognizedandthenewfinancialliabilityshouldberecognisedinprofitorlossforthecurrentperiod.AllregularmeansofpurchasesorsalesoffinancialassetsarerecognisedandDerecognizedonatradedatebasis.Regularmeansofpurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliveryofassetswithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.TradedateisthedatethattheGroupcommitstopurchaseorsellthefinancialasset.

ClassificationandmeasurementoffinancialassetsAtinitialrecognition,theGroupclassifiesitsfinancialassetsinto:financialassetsatfairvaluethroughprofitorloss,financialassetsatamortisedcost,orfinancialassetsatfairvaluethroughothercomprehensiveincome,accordingtotheGroup’sbusinessmodelformanagingfinancialassetsandthecontractcashflowcharacteristicsofthefinancialassets.Financialassetsaremeasuredatfairvalueatinitialrecognition,providedthattradereceivablesorbillsreceivablenotcontainingsignificantfinancingcomponentsorforwhichfinancingcomponentsofnotmorethan1yeararenottakenintoconsiderationshallbemeasuredattheirtransactionpricesatinitialrecognition.Forfinancialassetsatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss;forotherfinancialassets,therelevanttransactioncostsarerecognisedintheirinitialrecognitionamount.

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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(8)Financialinstruments(Continued)

Classificationandmeasurementoffinancialassets(Continued)Subsequentmeasurementdependsontheclassificationofthefinancialassets:

Financialassetsmeasuredatamortisedcost(debtinstruments)TheGroupmeasuresfinancialassetsatamortizedcostifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeofthiskindoffinancialassetsisrecognizedusingtheeffectiveinterestmethod.Gainsandlossesarerecognizedintheincomestatementwhentheassetisderecognized,modifiedorimpaired.Thesefinancialassetsmainlyincludecashandcashequivalents,billsreceivableandtradereceivables,otherreceivables,debtinvestmentandlong-termreceivables.Debtinvestmentsandlong-termreceivablesduewithinoneyearfromthebalancesheetdatearereportedbytheGroupascurrentportionofnon-currentassets,anddebtinvestmentsduewithinoneyearfromtheoriginalmaturitydatearereportedasothercurrentassets.Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)TheGroupmeasuresdebtinvestmentsatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectiveofbothholdingtocollectcontractualcashflowsandselling;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Changesinfairvaluesarerecognizedinothercomprehensiveincomeexceptthatinterestincome,impairmentlossesandexchangedifferencesarerecognizedincurrentprofitorloss.Uponderecognition,thecumulativefairvaluechangerecognisedinothercomprehensiveincomeistransferredtoprofitorloss.Suchfinancialassetsarereportedasotherdebtinvestment.Otherdebtinvestmentduewithinoneyearfromthebalancesheetdateisreportedasacurrentportionofnon-currentassetsandotherdebtinvestmentduewithinoneyearfromtheoriginalmaturitydateisreportedasanitemofothercurrentassets.Financialassetsdesignatedatfairvaluethroughothercomprehensiveincome(equityinvestments)TheGroupirrevocablychoosestodesignatesomenon-tradableequityinstrumentinvestmentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Onlyrelevantdividendincome(excludingdividendincomeexplicitlyrecoveredaspartofinvestmentcost)isrecognizedinprofitorloss,andsubsequentchangesinfairvalueareincludedinothercomprehensiveincomewithoutprovisionforimpairment.Whenfinancialassetsarederecognized,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensivegainsaretransferredfromothercomprehensiveincomeandrecognizedinretainedearnings.Suchfinancialassetsarereportedasotherequityinvestment.Ifoneofthefollowingconditionsismet,itisaheld-for-tradingfinancialasset:theacquisitionoftherelevantfinancialassetisintendedprimarilyforsaleorrepurchaseinthenearfuture;itisapartoftheportfolioofidentifiablefinancialinstrumentsundercentralizedmanagement,andthereisobjectiveevidencethattheshort-termprofitmodelisadoptedinthenearfuture;itisaderivative,exceptforaderivativethatisdesignatedasavalidhedginginstrument,otherthanaderivativethatcomplieswithafinancialguaranteecontract.

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(8)Financialinstruments(Continued)

Classificationandmeasurementoffinancialassets(Continued)FinancialassetsatfairvaluethroughprofitorlossFinancialassetsotherthantheabove-mentionedfinancialassetsatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Forsuchfinancialassets,fairvalueisusedforsubsequentmeasurement,andallchangesinfairvaluearerecognisedinprofitorloss.Suchfinancialassetsarepresentedasheld-for-tradingfinancialassetsandarepresentedasothernon-currentfinancialassetsiftheyexpireaftermorethanoneyearfromthebalancesheetdateorexpectedtobeheldmorethanoneyearfromthebalancesheetdate.Onlywhenanaccountingmismatchiseliminatedorsignificantlydecreased,financialassetsaredesignatedasfinancialassetsatfairvaluethroughprofitorlossatinitialrecognition.Whenanenterpriseinitiallydesignatesafinancialassetasafinancialassetatfairvaluethroughprofitorloss,itcannotbereclassifiedtootherfinancialassets;otherfinancialassetscannotbere-designatedafterinitialrecognitionasfinancialassetsmeasuredatfairvaluethroughprofitorloss.WhenandonlywhentheGroupchangesitsbusinessmodelofmanagingfinancialassets,itreclassifiesallrelevantfinancialassetsaffected.

ClassificationandmeasurementoffinancialliabilitiesOninitialrecognitionoffinancialliabilitiesoftheGroupareclassifiedasfinancialliabilitiesatfairvaluethroughprofitorloss,otherfinancialliabilitiesandderivativesdesignatedaseffectivehedginginstruments.Forfinancialliabilitiesatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognizedinprofitorloss,andtherelatedtransactioncostsofotherfinancialliabilitiesarerecognizedintheirinitialamount.Subsequentmeasurementoffinancialliabilitiesisdeterminedbyitsclassification:

FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossconsistofheldfortradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedoninitialrecognitionasfinancialliabilitiesatfairvaluethroughprofitorloss.Financialliabilitiesareheld-for-tradingfinancialliabilitiesifoneofthefollowingconditionsaremet:thepurposeofassumingrelatedfinancialliabilitiesismainlytosellorrepurchaseinthenearfuture;theyarepartofacentrallymanagedidentifiableportfoliooffinancialinstruments,andthereisobjectiveevidencethatenterpriseshaveadoptedashort-termprofitabilitymodelinthenearfuture;theyarederivatives,excludingderivativesthataredesignatedaseffectivehedginginstrumentsandderivativesthatmeetthefinancialguaranteecontract.Held-for-tradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)aresubsequentlymeasuredatfairvalue.Exceptforhedgingaccounting,allchangesinfairvaluearerecognizedinprofitorloss.

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(8)Financialinstruments(Continued)

Classificationandmeasurementoffinancialliabilities(Continued)Onlyifoneofthefollowingconditionsismetcanfinancialliabilitiesbedesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossoninitialrecognition:(1)Itcaneliminateorsignificantlyreducetheaccountingmismatch.(2)Theformalwrittendocumentofriskmanagementorinvestmentstrategyhasstatedthattheportfoliooffinancialinstrumentsismanaged,evaluatedandreportedtokeymanagersonthebasisoffairvalue.(3)Thefinancialliabilityisahybridinstrumentthatcontainsoneormoreembeddedderivatives,unlesstheembeddedderivativeshavenosignificantchangeinthecashflowsofthehybridinstrument,ortheembeddedderivativesshouldobviouslynotbeseparatedfromtherelatedhybridinstruments.(4)Mixedinstrumentscontainembeddedderivativesthatneedtobesplitbutcannotbemeasuredseparatelyatthetimeofacquisitionoronsubsequentbalancesheetdays.Forsuchfinancialliabilities,subsequentmeasurementsaremadeatfairvalue.ChangesinfairvaluecausedbychangesintheGroup’sowncreditriskarerecognizedinothercomprehensiveincome,whileotherchangesinfairvaluearerecognizedinprofitorloss.UnlesschangesinfairvaluecausedbychangesintheGroup'sowncreditriskrecognizedinothercomprehensiveincomemayresultinorexpandaccountingmismatchesinprofitorloss,theGroupshallrecognizeallchangesinfairvalue(includingtheamountofimpactofchangesinitsowncreditrisk)inprofitorloss.Whenanenterprisedesignatesafinancialliabilityasafinancialliabilityatfairvaluethroughprofitorloss,itcannotbereclassifiedasotherfinancialliabilities;norcanotherfinancialliabilitiesbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.OtherfinancialliabilitiesForsuchfinancialliabilities,subsequentmeasurementismadeatamortizedcostusingtheeffectiveinterestratemethod.

ImpairmentoffinancialassetsBasedonexpectedcreditlosses,theGroupundertakesimpairmenttreatmentandconfirmslossprovisionsoffinancialassetsatamortizedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeandfinancialguaranteecontracts.Creditlossreferstothedifferencebetweenthecashflowsofallcontractsdiscountedattheoriginaleffectiveinterestrateandtheexpectedcashflowsofallcontractsreceivable,i.e.thepresentvalueofallcashshortages.Amongthem,thefinancialassetspurchasedbyororiginatedfromtheGrouptowhichcreditimpairmenthasoccurredshallbediscountedattheeffectiveinterestrateadjustedbythecreditofthefinancialassets.Fortradereceivablesandcontractualassetsthatdonotcontainsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountofexpectedcreditlossesequivalenttotheentirelifecycle.

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(8)Financialinstruments(Continued)

Impairmentoffinancialassets(Continued)Fortradereceivablesandcontractualassetswithsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountoftheexpectedcreditlossequivalenttotheentirelifetime.Forfinancialassetsotherthanthosemeasuredwithsimplifiedvaluationmethods,theGroupevaluatesateachbalancesheetdatewhetheritscreditriskhassignificantlyincreasedsinceinitialrecognition.Theperiodduringwhichcreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisconsideredthefirststage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossforthenext12monthsandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;theperiodduringwhichcreditriskhassignificantlyincreasedsinceinitialrecognitionalthoughnocreditimpairmenthasoccurredisconsideredthesecondstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentirevalidperiodandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;Theperiodduringwhichcreditimpairmenthasoccurredafterinitialrecognitionisconsideredthethirdstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentireperiodandshallcomputeinterestincomeaccordingtotheamortisedcostandeffectiveinterestrate.Forfinancialinstrumentswithrelativelylowcreditriskatthebalancesheetdate,theGroupassumesthatitscreditriskhasnotsignificantlyincreasessinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesoffinancialinstrumentsonasingleandcombinedbasis.Takingintoaccountthecreditriskcharacteristicsofdifferentcustomers,theGroupevaluatestheexpectedcreditlossesoftradereceivablesbasedontheagingportfolio.Inassessingexpectedcreditlosses,theGrouptakesintoaccountreasonableandvalidinformationonpastevents,currentconditionsandfutureeconomicforecasts.RefertoNotesVIII.3forthedisclosureoftheGroup'scriteriaforjudgingthesignificantincreaseincreditrisk,thedefinitionofassetswithimpairedcreditlosses,andtheassumptionofmeasuringexpectedcreditlosses.WhentheGroupnolongerreasonablyexpectstobeabletorecoverallorpartofthecontractcashflowsofthefinancialassets,theGroupwillwriteoffthebookvalueofthefinancialassetsdirectly.

OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthestatementoffinancialpositionifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,ortorealizethefinancialassetsandsettlethefinancialliabilitiessimultaneously.

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(8)Financialinstruments(Continued)

ModificationoffinancialassetsWheretheGroupmodifiesorrenegotiatesthecontractwithitscounterpartyanddoesnotresultinthederecognitionoffinancialassets,butresultsinachangeinthecashflowofthecontract,theGrouprecalculatesthebookvalueofthefinancialassetonthebasisoftherenegotiatedormodifiedcontractcashflowsatthediscountedvalueoftheoriginaleffectiveinterestrate(orcredit-adjustedeffectiverateofinterest)ofthefinancialasset,andtherelatedgainsorlossesarerecognizedinprofitorloss.Therevisedcostorexpenseofthefinancialassetsadjustthebookvalueofthefinancialassetsandareamortizedwithintheremainingperiodofthemodifiedfinancialassets.

TransferoffinancialassetsTheGroupderecognisesafinancialassetwhenithastransferredsubstantiallyalltherisksandrewardsofownershipofthefinancialassettothetransferee;theGroupdoesnotderecognizethosefinancialassetswhenitretainssubstantiallyalltherisksandrewardsoftheownership.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipoffinancialassets,therelatedaccountingtreatmentsofsuchfinancialassetsareasfollows:theGroupderecognisesfinancialassetswhenitretainsnocontrolonthem,andassociatedassetsandliabilitiesarerecognisedatthesametime.IftheGroupretainscontrolofthefinancialasset,itrecognizesthefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizesanassociatedliability.Continuinginvolvementthattakestheformofafinancialguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthefinancialguarantee.TheamountofthefinancialguaranteeisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.

(9)NotesreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossofnotesreceivable,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”

(10)AccountsReceivableFordetailsofthemethodfordeterminingtheexpectedcreditlossofaccountsreceivable,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”

(11)AccountsReceivableFinancingItincludesnotesreceivableandaccountsreceivablethataremeasuredatfairvalueonthebalancesheetdateandwhosechangesareincludedinothercomprehensiveincome.Fordetailsofthemethodfordeterminingtheexpectedcreditlossofreceivablesfinancing,pleaserefer“III.8Financialinstruments-Impairmentoffinancialinstruments.”

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(12)OtherreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossesofotherreceivables,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”

(13)InventoriesInventoriesincluderawmaterials,workinprogress,finishedgoods,delegateprocessingsuppliesandturnovermaterials,andaremeasuredatthelowerofcostandnetrealizablevalue.Costisdeterminedontheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogresscomprisesrawmaterials,directlaborandanallocationofsystematicallyallocatedoverheadexpendituresincurredbasedonthenormaloperatingcapacity.BasisfordeterminingthenetrealizablevaluesofinventoriesandmethodformakingprovisionsfordeclineinthevalueofinventoriesProvisionsfordeclineinthevalueofinventoriesaredeterminedattheexcessamountofthecarryingvalueoftheinventoriesovertheirnetrealizablevalue.Netrealizablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.TheGroupadoptstheperpetualinventorysystem.

(14)ContractassetsTheunconditional(namely,dependentonlyonthepassageoftime)righttoreceiveconsiderationfromcustomersownedbytheGroupshallbepresentedasamountsreceivable.Therighttoreceiveconsiderationfollowingthetransferofproductstocustomerswhichisdependentonfactorsotherthanthepassageoftimeispresentedascontractassets.

(15)AssetsrelatingtocontractcostTheGroup’sassetsrelatingtocontractcostsincludethecontractacquisitioncostsandcontractperformancecosts,presentedrespectivelyunderinventories,othercurrentassetsandothernon-currentassets.WheretheGroupexpectstheincrementalcostsforacquiringacontracttoberecoverable,suchcontractacquisitioncostsarerecognisedasanasset(unlesstheamortisationperiodoftheassetisnotmorethan1year).

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(15)Assetsrelatingtocontractcost(Continued)CostsincurredbytheGroupfortheperformanceofacontractarerecognisedasanassetascontractperformancecostsiftheydonotfallunderthescopeoftherelevantstandardsforinventories,fixedassetsorintangibleassetsbutmeetallthefollowingconditions:

(1)Theyaredirectlyrelatedtoacurrentoranticipatedcontract,includingdirectlabour,direct

materials,manufacturingexpenses(orsimilarexpenses),tobebornebycustomersasspecificallystipulated,andotherwiseincurredsolelyinconnectionwiththecontract;

(2)theywillincreasetheresourcestobeutilisedintheCompany’sfutureperformanceofits

contractualobligations;and

(3)theyareexpectedtoberecoverable.TheGroupamortisesassetsrelatingcontractcostsonthesamebasisasthatfortherecognitionofrevenuerelatingtosuchassetsandrecognisestheamortisedassetsincurrentprofitorloss.Forassetsrelatingtocontractcostswhosecarryingvalueishigherthanthedifferencebetweenthefollowingtwoitems,theGroupmakesprovisionforimpairmentfortheexcesstoberecognisedasassetimpairmentlosses:

(1)Theremainingconsiderationexpectedtobeobtainedasaresultofthetransferofgoodsrelating

tosuchassets;

(2)EstimatedcoststobeincurredinconnectionwiththetransferofrelevantgoodsIntheeventthatthedifferencebetween(1)and(2)becomeshigherthanthecarryingvalueofsuchassetsasaresultofchangesinthefactorsofimpairmentforpreviousperiods,previousprovisionsforassetimpairmentlossesshouldbewrittenbackandincludedincurrentprofitorloss,providedthatthecarryingassetvaluefollowingthewrite-backshallnotexceedthecarryingvaluethatsuchassetswouldhaveonthedateofwrite-backweretherenoprovisionforimpairment.

(16)Long-termequityinvestmentsLong-termequityinvestmentscomprisetheCompany’slong-termequityinvestmentsinitssubsidiaries,jointventuresandassociates.Long-termequityinvestmentsareaccountedforusingthecoastmethodatthetimeitwasacquired.Forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostshallbetheabsorbingparty’sshareofthecarryingamountofshareholders’equityofthepartybeingabsorbedatthecombinationdate.SubsidiariesaretheinvesteesoverwhichtheCompanyisabletoexercisecontrol.AssociatesaretheinvesteesthattheGrouphassignificantinfluenceontheirfinancialandoperatingpolicies.

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(16)Long-termequityinvestments(Continued)InvestmentsinsubsidiariesaremeasuredusingthecostmethodintheCompany’sfinancialstatements,andadjustedbyusingtheequitymethodwhenpreparingtheconsolidatedfinancialstatements.Interestsinassociatesareaccountedforusingtheequitymethod.Forlong-termequityinvestmentsacquiredbywayoftheswapofnon-monetaryassets,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.7—SwapofNon-monetaryAssets.”Forlong-termequityinvestmentsacquiredbywayofdebtrestructuring,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.12—DebtRestructuring.”(a)DeterminationofinvestmentcostForlong-termequityinvestmentsacquiredthroughabusinesscombination:forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostshallbetheabsorbingparty’sshareofthecarryingamountofshareholders’equityofthepartybeingabsorbedatthecombinationdate;forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theinvestmentcostshallbethecombinationcost.(b)SubsequentmeasurementandrecognitionofrelatedprofitorlossForlong-termequityinvestmentsaccountedforusingthecostmethod,theyaremeasuredattheinitialInvestmentcosts,andcashdividendsorprofitdistributiondeclaredbytheinvesteesarerecognizedasinvestmentincomeinprofitorloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thelong-termequityinvestmentismeasuredattheinitialinvestmentcost;wheretheinitialinvestmentcostislessthantheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceisincludedinprofitorlossandthecostofthelong-termequityinvestmentisadjustedupwardsaccordingly.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,theGrouprecognizestheinvestmentincomeaccordingtoitsshareofnetprofitorlossoftheinvestee.TheGroupdiscontinuestorecognizeitsshareofnetlossesofaninvesteeafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhat,insubstance,formpartoftheinvestor’snetinvestmentintheinvesteearereducedtozero.However,iftheGrouphasobligationsforadditionallossesandthecriteriawithrespecttotherecognitionofprovisionsundertheaccountingstandardsoncontingenciesaresatisfied,theGroupcontinuestorecognizetheinvestmentlossesandtheprovisions.Forchangesinshareholders’equityoftheinvesteeotherthanthosearisingfromitsnetprofitorloss,othercomprehensiveincome,andprofitdistribution,theGroupadjuststhebookvalueoftheinvestmentandrecordsacapitalsurplusaccordingly.ThecarryingamountoftheinvestmentisreducedbytheGroup’sshareoftheprofitdistributionorcashdividendsdeclaredbyaninvestee.

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(16)Long-termequityinvestments(Continued)(b)Subsequentmeasurementandrecognitionofrelatedprofitorloss(Continued)Theunrealizedprofitsorlossesarisingfromtheintra-grouptransactionsamongsttheGroupanditsinvesteesareeliminatedinproportiontotheGroup’sequityinterestsintheinvestees,andthenbasedonwhichtheinvestmentgainsorlossesarerecognized.Forthelossonintra-grouptransactionsamongsttheGroupanditsinvesteesattributabletoassetimpairment,anyunrealizedlossisnoteliminated.(c)Basisfordeterminingexistenceofcontrol,jointcontrolorsignificantinfluenceoverinvesteesControlisthepowertogovernthefinancialandoperatingpoliciesoftheinvesteesoastoobtainbenefitsfromitsoperatingactivities.IndeterminingwhethertheCompanyisabletoexercisecontrolovertheinvestee,theeffectofpotentialvotingrightsovertheinvesteeisconsidered,suchasconvertibledebtsandwarrantscurrentlyexercisable.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.(d)Impairmentoflong-termequityinvestmentsThecarryingamountoflong-termequityinvestmentsinsubsidiariesandassociatesisreducedtotherecoverableamountwhentherecoverableamountislessthanthecarryingamount.

(17)InvestmentpropertiesInvestmentproperties,includinglanduserightsthathavealreadybeenleasedout,buildingsthatareheldforthepurposeofleasing,andbuildingsthatarebeingconstructedordevelopedforthepurposeofleasinginfuture,aremeasuredinitiallyatcost.SubsequentexpendituresincurredinrelationtoinvestmentpropertiesareincludedinthecostofinvestmentpropertieswhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtheircostscanbereliablymeasured;otherwise,theexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.

Estimatedusefullives

EstimatedusefullivesEstimatedresidualvalueAnnualdepreciation(amortization)rates
Buildings12-35years0-5%2.71-7.92%
Landuserights30-50years-2.00-3.33%

Whenaninvestmentpropertyistransferredtoowner-occupiedproperty,itisreclassifiedasafixedassetorintangibleassetatthedateoftransfer.Whenanowner-occupiedpropertyistransferredoutforearningrentalsorforcapitalappreciation,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyatitscarryingamountatthedateoftransfer.Theinvestmentproperties’usefullife,netresidualvalueanddepreciation(amortization)methodappliedarereviewedandadjustedasappropriateattheendofeachyear.

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(17)Investmentproperties(Continued)AninvestmentpropertyisDerecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Thenetamountofproceedsfromsale,transfer,retirementordamageofaninvestmentpropertyafteritscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossforthecurrentperiod.

(18)FixedassetsFixedassetsarerecognizedwhenitisprobablethattherelatedeconomicbenefitswillflowtotheGroupandthecostscanbereliablymeasured.SubsequentexpendituresincurredforafixedassetareincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtherelatedcostcanbereliablymeasured.Thecarryingamountofthereplacedpartisderecognized.Alltheothersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Fixedassetsareinitiallymeasuredatcostandtheeffectofanyexpectedcostsofabandoningtheassetattheendofitsuseisconsidered.Thecostofafixedassetistheaggregatecostofpurchaseprice,relatedtaxesandanydirectlyattributableexpenditureforbringingtheassettoitsworkingconditionforitsintendeduse.Fixedassetsaredepreciatedusingthestraight-linemethodtoallocatethecostoftheassetstotheirestimatedresidualvaluesovertheirestimatedusefullives.Forthefixedassetsthathavebeenprovidedforimpairmentloss,therelateddepreciationchargeisprospectivelydeterminedbasedupontheadjustedcarryingamountsovertheirremainingusefullives.

EstimatedusefullivesEstimatedresidualvalueAnnualdepreciationratesBuildings20-35years0-5%2.71-5.00%Machineryandequipment5-14years3-6%6.79-19.40%Motorvehicles3-10years0-5%9.50-33.33%Otherequipment3-10years0-5%9.50-33.33%Leaseholdimprovementswithin5years0%20%andaboveFixedassetsheldunderfinanceleasesaredepreciatedunderthesamedepreciationmethodasotherfixedassets.Theassetsaredepreciatedovertheirestimatedusefulliveswhereownershipoftheassetscanbereasonablyestimatedtobegainedwhenleaseperiodsend;otherwise,theleasedassetsaredepreciatedovertheshorteroftheleasetermsandtheestimatedusefullivesoftheassets.TheGroupreviewstheusefullife,estimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyearend,andadjustsforanychangewhennecessary.

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(18)Fixedassets(Continued)AfixedassetisDerecognizedondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Theamountofproceedsfromdisposalonsale,transfer,retirementordamageofafixedassetnetofitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossforthecurrentperiod.

(19)ConstructioninprogressConstructioninprogressismeasuredatitsactualcost.Theactualcostincludesvariousnecessaryconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalisedbeforeitisreadyforintendeduseandotherrelevantcosts.

(20)BorrowingcostsBorrowingcostsrefertotheinterestandotherrelevantcostincurredfromborrowing,whichincludeloaninterest,discountoramortizationofpremiums,auxiliaryexpensesandexchangedifferencesduetoforeigncurrencyloans,etc.WheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itshallbecapitalizedandrecordedintothecostsofrelevantassets.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theterm“assetseligibleforcapitalization”shallrefertothefixedassets,investmentrealestate,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyforitsintendeduseorforsale.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingrequirements:

(1)Theassetdisbursementshavealreadyincurred;

(2)Theborrowingcostshavealreadyincurred;and

(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparethe

assetforitsintendeduseorsalehavealreadystarted.Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.Borrowingcostsincurredaftertheintendeduseorsaleshallberecordedinthecurrentprofitsandlosses.Duringtheperiodofcapitalization,thecapitalizedamountofinterestineachaccountingperiodshallbecalculatedanddeterminedinthewaysbelow:

Theenterpriseshallcalculateanddeterminetheinterestofaspecificloanbydeductinginterestincomeoftheloancapitaldepositinthebankorinvestmentincomeobtainedfromatemporaryinvestment.

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(20)Borrowingcosts(Continued)Theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.Theborrowingcostsincurredduringsuchperiodshallberecognizedasexpenses,andshallberecordedintotheprofitsandlossesofthecurrentperiod,tilltheacquisitionandconstructionorproductionoftheassetrestarts.

(21)Right-of-useassetsOnthecommencementdateoftheleaseterm,thelesseerecognizestheright-of-useassetforthelease(exceptforshort-termleasesandlow-valueassetleases).Therighttouseassetcostsincludes:theinitialmeasurementamountoftheleasliability;theleasepaymentamountpaidonorbeforethestartdateoftheleaseperiod(ifthereisaleaseincentive,deductingtherelevantamountoftheleaseincentive);Theinitialdirectcostincurredbythelessee.Wherethelesseecanreasonablydeterminetheownershipoftheleasedassetattheexpirationoftheleaseterm,thedepreciationisprovidedwithintheremainingusefullifeoftheleasedasset;Ifitisnotreasonabletodeterminethattheleaseholdassetcanbeacquiredattheexpirationoftheleaseterm,thedepreciationisprovidedduringtheperiodbetweentheleasetermandtheremainingusefullifeoftheleasedasset.Thelesseeisrequiredtodeterminewhethertheright-of-useassetisimpairedatthesametimeandaccountingforidentifiedimpairmentlosses.

(22)IntangibleassetsIntangibleassetsarerecognisedandmeasuredoninitialrecognitionatcostonlyiftherelatedeconomicbenefitswillprobablyflowintotheGroupandtheircostscanbemeasuredreliably.However,theintangibleassetsacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrolshouldbemeasuredatfairvalueseparatelyasintangibleassetswhentheirfairvaluescanbereliablymeasured.

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(22)Intangibleassets(Continued)TheusefullifeoftheintangibleassetsshallbeassessedaccordingtotheestimatedbeneficialperiodexpectedtogenerateeconomicbenefitsfortheGroup.AnintangibleassetshallberegardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.

Categories

CategoriesUsefullives
LanduserightsBetweentheapprovedusefulperiodandtheCompany’soperatingperiod
Software3-5years
Trademarks5-10years
Technologypatents5years
Distributionnetwork20years
Franchisingrights10years
Favorableleases17-20years

LanduserightsobtainedbytheGroupareusuallyaccountedforasintangibleassets.Asfortheconstructionofplants,factoriesandotherbuildingsoftheGroup,therelatedlanduserightsandotherbuildingswereaccountedforasintangibleassetsandfixedassets,respectively.Purchasecostsoflanduserightsandbuildingswereallocatedtointangibleassetsandfixedassetsseparately.Purchasecostswererecognisedascostoffixedassets,onlyiftheseparationwasimpracticable.Intangibleassetswithafiniteusefullifeareamortisedovertheirestimatedusefullivesusingthestraight-linemethodorotherreasonablesystematicmethods.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodatleastonceateachfinancialyearend,andmakesadjustmentswhennecessary.Alanduserightgrantedbythegovernmentwithaninfiniteusefullifewouldnotbeamortized.Otherlanduserightsareamortizedonthestraight-linebasisovertheirapprovedusefulperiod.Iftheacquisitioncostsoflanduserightsandthebuildingslocatedthereoncannotbereliablyallocatedbetweenthelanduserightsandthebuildings,alloftheacquisitioncostsarerecognizedasfixedassets.Theexpenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphasebasedonitsnatureandwhetherthereismaterialuncertaintythattheresearchanddevelopmentactivitiescanformanintangibleassetattheendoftheproject.

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(22)Intangibleassets(Continued)Expenditureforinvestigation,evaluationandselectionofproductionprocessandnewdrugresearchesisrecognizedinprofitorlossintheperiodinwhichitisincurred.Expenditureonthedesignation,measurementofthefinalutilizationoftheproductionprocessandnewdrugsbeforemassproductioniscapitalizedonlyifallofthefollowingconditionsaresatisfied:

?developmentoftheproductionprocessandnewdrugshasbeenfullydemonstratedbythetechnicalteam;?managementhasapprovedthebudgetofdrugproductiondevelopmentandnewdrugs;?marketresearchanalysissuggeststhattheproductsproducedbythenewproductiontechnologyareabletobepromoted;?adequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;?theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbereliablymeasured.Otherdevelopmentcoststhatdonotmeettheconditionsabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Developmentcostspreviouslyrecognizedasexpensesarenotrecognizedasanassetinasubsequentperiod.Capitalizedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.TheGroupclassifiestheexpensesforinternalresearchanddevelopmentasresearchcostsanddevelopmentcosts.Allresearchcostsarechargedtothecurrentprofitorlossasincurred.ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits(includingdemonstrationthattheproductderivedfromtheintangibleassetortheintangibleassetitselfwillbemarketableor,inthecaseofinternaluse,theusefulnessoftheintangibleassetassuch),theavailabilityoftechnicalandfinancialresourcestocompletetheprojectandprocuretheuseorsaleoftheintangibleasset,andtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditurewhichdoesnotmeetthesecriteriaisexpensedwhenincurred.

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(23)Impairmentoflong-termassetsFixedassets,constructioninprogress,intangibleassetswithfiniteusefullives,long-termprepaidexpensesandinvestmentpropertiesmeasuredusingthecostmodelandlong-termequityinvestmentsinsubsidiariesandassociatesaretestedforimpairmentifthereisanyindicationthatanassetmaybeimpairedatthebalancesheetdate.Iftheresultoftheimpairmenttestindicatesthattherecoverableamountoftheassetislessthanitscarryingamount,aprovisionforimpairmentandanimpairmentlossarerecognizedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Provisionforassetimpairmentisdeterminedandrecognizedontheindividualassetbasis.Ifitisnotpossibletoestimatetherecoverableamountofanindividualasset,therecoverableamountofagroupofassetstowhichtheassetbelongsisdetermined.Agroupofassetsisthesmallestgroupofassetsthatisabletogenerateindependentcashinflows.Goodwillthatisseparatelypresentedinthefinancialstatements,intangibleassetswithinfiniteusefullivesandcapitalizeddevelopmentcostsaretestedatleastannuallyforimpairment,irrespectiveofwhetherthereisanyindicationthatitmaybeimpaired.Inconductingthetest,thecarryingvalueofgoodwillisallocatedtotherelatedassetgroupsorgroupsofassetgroupswhichareexpectedtobenefitfromthesynergiesofthebusinesscombination.Iftheresultofthetestindicatesthattherecoverableamountofanassetgrouporagroupofassetgroups,includingthegoodwillallocated,islowerthanitscarryingamount,thecorrespondingimpairmentlossisrecognized.Theimpairmentlossisfirstdeductedfromthecarryingamountofgoodwillthatisallocatedtotheassetgrouporgroupofassetgroups,andthendeductedfromthecarryingamountofotherassetswithintheassetgroupsorgroupsofassetgroupsinproportiontothecarryingamountofotherassets.Oncetheaboveimpairmentlossisrecognized,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.

(24)Long-termprepaidexpensesLong-termprepaidexpensesincludetheexpenditureforimprovementstofixedassetsunderoperatingleases,andotherexpendituresthathavebeenmadebutshouldberecognizedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortizedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortization.

(25)ContractliabilitiesTheobligationtopassproductstocustomersinconnectionwithcustomerconsiderationreceivedorreceivableispresentedascontractliabilities,forexample,amountsreceivedpriortothetransferofthepromisedproducts.Contractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasisafterset-off.

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(26)EmployeebenefitsShort-termemployeebenefitsTheactualoccurredshort-termemployeebenefitsarerecognizesasliabilitiesduringtheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployeesandascostsofassetsorexpensestowhichevertheemployeeserviceisattributable.Post-employmentbenefits(definedcontributionplans)TheemployeesintheGroupparticipateinsocialinsuranceandunemploymentinsuranceschemesadministratedbythelocalgovernments,andtherelatedexpendituresarerecordedincostofrelatedassetsorprofitorlossintheperiodwhentheyincurred.Post-employmentbenefits(definedbenefitplans)TheGroupoperatesadefinedbenefitpensionscheme.Nofundshavebeeninjectedintothescheme.Thecostofbenefitsprovidedunderthedefinedbenefitschemeiscalculatedusingtheexpectedbenefitaccrualunitapproach.Remeasurementarisingfromdefinedbenefitpensionschemes,includingactuarialgainsorlosses,changesintheassetcapeffect(deductingamountsincludedinnetinterest)andreturnsonschemeassets(deductingamountsincludedinnetinterest)areinstantlyrecognisedinthebalancesheetandchargedtoshareholders’equitythroughothercomprehensiveincomefortheperiodduringwhichitisincurred.Itwillnotbereversedtoprofitandlossinsubsequentperiods.Previousservicecostsarerecognisedascurrentexpenseswhen:thedefinedbenefitschemeisrevised,orrelevantrestructuringcostsorterminationbenefitsarerecognisedbytheGroup,whicheverearlier.Netinterestisarrivedatbymultiplyingnetliabilitiesornetassetsofdefinedbenefitswithadiscountrate.Changesinnetobligationsofdefinedbenefitsarerecognisedasoperatingcostsandadministrationexpensesintheincomestatement.Servicecostsincludedcurrentservicescosts,pastservicecostsandsettlementofprofitorloss.Netinterestincludedinterestincomefromschemeassets,interestexpensesforschemeobligationsandinterestoftheassetcapeffect.TerminationbenefitsTheGrouprecognizesaliabilityforterminationbenefitsandchargestoprofitorlossattheearlierofthefollowingdates:a)whentheGroupcannolongerwithdrawfromtheterminationplanortheredundancyoffer;andb)whentheGrouprecognizescostsorexpenseforarestructuringplanwhichinvolvesthepaymentofterminationbenefits.

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(26)Employeebenefits(Continued)OtherlongtermemployeebenefitsOtherlong-termemployees’benefitsprovidedtoemployeesshallberecognisedandmeasuredasnetliabilitiesornetassetswhereprovisionsregardingpost-employmentbenefitsareapplicable,providedthatchangesshallbeincludedincurrentprofitandlossorrelatedcapitalcosts.

(27)LeaseliabilityOnthecommencementdateoftheleaseterm,thelesseerecognizestheleaseliabilityforthelease(exceptforshort-termleasesandlow-valueassetleases).Theleaseliabilityisinitiallymeasuredusingtheincrementalborrowingrateasthepresentvalueofthediscountratebasedontheleasepaymentsthathavenotbeenpaidonthestartdateoftheleaseterm.Atthesametime,thelesseecalculatestheinterestexpenseoftheleaseliabilityforeachperiodoftheleasetermbasedontheeffectiveinterestmethodandrecognizesitinprofitorlossforthecurrentperiod.

(28)ProvisionsAnobligationrelatedtoacontingencyshallberecognizedbytheGroupasaprovisionwhenallofthefollowingconditionsaresatisfied,exceptcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingenterprisesundercommoncontrol:

(1)TheobligationisapresentobligationoftheGroup;

(2)ItisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettletheobligation;and

(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Thecarryingamountofprovisionsisreviewedatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.Forbusinesscombinationsnotundercommoncontrol,contingentliabilitiesoftheacquireeobtainedinabusinesscombinationshallbemeasuredatfairvalueininitialrecognition.Afterinitialrecognition,subsequentmeasurementisconductedusingthehigheroftheamountrecognizedbyprovisionsandtheamountofinitialrecognitiondeductingtheaccumulatedamortizationamountdeterminedbytheprinciplesofrevenuerecognition.

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(29)Share-basedpaymentsTheshare-basedpaymentsshallconsistofequity-settledshare-basedpaymentsandcash-settledshare-basedpayments.Theterm"equity-settledshare-basedpayment"referstoatransactioninwhichthegroupgrantssharesorotherequityinstrumentsasaconsiderationinreturnforservices.Theequity-settledshare-basedpaymentinreturnforemployeeservicesshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Astoanequity-settledshare-basedpaymentinreturnforservicesofemployees,iftherightmaybeexercisedimmediatelyafterthegrant,thefairvalueoftheequityinstrumentsshall,onthedateofthegrant,beincludedintherelevantcostorexpenseandthecapitalreservesshallbeincreasedaccordingly.Astoanequity-settledshare-basedpaymentinreturnforemployeeservices,iftherightcannotbeexerciseduntilthevestingperiodcomestoanendoruntiltheprescribedperformanceconditionsaremet,thenoneachbalancesheetdatewithinthevestingperiod,theGroupshallmakethebestestimateofthenumberofvestedequityinstrumentsbasedonthelatestmovementofthegrantedemployee,thecontentofprescribedperformanceandotherconditions.Basedonthebestestimate,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorexpensesandthecapitalreservesatthefairvalueoftheequityinstrumentsonthedateofthegrant.Forawardsthatdonotultimatelyvestbecausenon-marketperformanceandserviceconditionshavenotbeenmet,noexpenseisrecognised.Whereawardsincludeamarketornon-vestingcondition,thetransactionsaretreatedasvestingirrespectiveofwhetherthemarketornon-vestingconditionissatisfied,providedthatallotherperformanceandserviceconditionsaresatisfied.Wherethetermsofanequity-settledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified,iftheoriginaltermsoftheawardaremet.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpayments,orisotherwisebeneficialtotheemployeeasmeasuredatthedateofmodification.Whereanequity-settledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheawardisrecognisedimmediately.Thisincludesanyawardwherenon-vestingconditionswithinthecontrolofeithertheGrouportheemployeearenotmet.However,ifanewawardissubstitutedforthecancelledaward,andisdesignatedasareplacementawardonthedatethatitisgranted,thecancelledandnewawardsaretreatedasiftheywereamodificationoftheoriginalaward,asdescribedinthepreviousparagraph.

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(29)Share-basedpayments(Continued)Acash-settledshare-basedpaymentshallbemeasuredinaccordancewiththefairvalueofliabilitycalculatedandconfirmedbasedonthesharesorotherequityinstrumentsundertakenbyanenterprise.Astoacash-settledshare-basedpaymentinstruments,iftherightmaybeexercisedimmediatelyafterthegrant,thefairvalueoftheliabilityundertakenbytheenterpriseshall,onthedateofthegrant,beincludedintherelevantcostsorexpenses,andtheliabilitiesshallbeincreasedaccordingly.Astoacash-settledshare-basedpayment,iftherightmaynotbeexerciseduntilthevestingperiodcomestoanendoruntilthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthevestingperiod,theservicesobtainedinthecurrentperiodshall,basedonthebestestimateoftheinformationabouttheexercisableright,beincludedintherelevantcostsorexpensesandthecorrespondingliabilitiesatthefairvalueoftheliabilityundertakenbythegroup.Thegroupshall,oneachbalancesheetdateandoneachaccountdatepriortothesettlementoftherelevantliabilities,re-measurethefairvaluesoftheliabilitiesandincludethechangesinthecurrentprofitsandlosses.

(30)RevenuerecognitionThegrouprecognizesrevenuewhenithasfulfilleditsobligationsunderthecontract,i,e.whenthecustomeracquirescontrolrelevantgoodsorservices.Acquiringcontroloverthegoodsorservicesreferstotheabilitytodominatetheuseofthegoodsortheportionofservicesandtoderivealmostalltheeconomicbenefitstherefrom.ContractsforsaleofgoodsThecontractsforthesaleofgoodsbetweentheGroupanditscustomerusuallyonlycontaintheperformanceobligationsforthetransferofgoods.TheGroupgenerallyrecognizesrevenueatthepointoftransferringthecontrolofgoodsonthebasisofacombinationofthefollowingfactors:thecurrentrighttocollectthegoods,thetransferofmajorrisksandbenefitsintheownershipofthegoods,andthetransferofthelegalownershipofthegoods,thetransferofphysicalassetsofthegoodsandthatthecustomershaveacceptedthegoods.ServiceContractsTheservicecontractsbetweentheGroupanditscustomersusuallyconsistofperformanceobligationssuchasengineeringconstructionmanagement,engineeringdesignconsultingandsoon.AstheGroup'sperformanceofcontractsisatthesametimewhenthecustomerobtainsandconsumestheeconomicbenefitsoftheperformanceoftheGroup,andtheGrouphastherighttocollectreceivablesfromtheperformanceofcontactsthathasbeencompletedtodate,theGroupregardsitasacontactobligationoveraperiodoftime,exceptthattheprogressofperformancecannotbereasonablydetermined.TheGroupdeterminestheprogressoftheperformanceofcontractsinaccordancewiththeinputmethod.IftheprogressofperformanceofcontractscannotbereasonablydeterminedandthecostincurredbytheGroupareexpectedtobecompensated,therevenueisrecognizedonthebasisoftheincurredcostsuntiltheprogressofperformanceofcontactscanbereasonablymeasured.

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(30)Revenuerecognition(Continued)VariableconsiderationCertaincontractsbetweentheGroupanditscustomerscontaincashdiscountsandpriceguaranteeclauseswhichwillgiverisetovariableconsideration.Whereacontractcontainsvariableconsideration,theGroupdeterminesthebestestimatesonthevariableconsiderationbasedonexpectedvaluesorthemostprobableamount,providedthattransactionpricesincludingvariableconsiderationshallnotexceedthecumulativeamountofrecognisedrevenueupontheremovalofrelevantuncertaintiesinconnectionwithwhichasignificantreversalishighlyunlikely.ConsiderationpayabletocustomersWhereconsiderationispayablebytheGrouptoacustomer,suchconsiderationpayableshallbedeductedagainstthetransactionprice,andagainstcurrentrevenueupontherecognitionofrevenueorthepaymentof(orthecommitmenttopay)theconsiderationtothecustomer(whicheverislater),saveforconsiderationpayabletothecustomerforthepurposeofacquiringfromthecustomerotherclearlyseparableproducts.ReturnclausesInconnectionwithsaleswithareturnclause,revenueisrecognisedaccordingtotheamountofconsiderationitexpectstobeentitledtoforthetransfertoacustomerwhenthecustomeracquirescontroloftherelevant.Amountsexpectedtoberefundedforthereturnofsalesarerecognisedasliabilities.Atthesametime,thebalanceofthecarryingvalueoftheproductexpectedtobereturnedupontransferlessexpectedcostsfortherecallofsuchproduct(includinganimpairmentlossoftherecalledproduct)shallberecognisedasanasset(i.e.costofreturnreceivables),andthenetamountofthecarryingvalueofthetransferredproductuponthetransferlesstheaforesaidassetcostshallbetransferredtocost.Ateachbalancesheetdate,theGroupreassessesthefuturereturnofsalesandremeasurestheaboveassetsandliabilities.SignificantfinancingcomponentWhereacontractcontainsasignificantfinancingcomponent,theGroupdeterminestransactionpricesbasedonamountspayableassumedtobesettledincashbycustomersimmediatelyupontheacquisitionofcontrolovertheproducts.Thedifferencebetweensuchtransactionpriceandcontractconsiderationisamortisedoverthecontractperiodusingtheeffectiveinterestratemethodbasedonaratiothatdiscountsthenominalcontractualconsiderationtothecurrentsellingpriceoftheproducts.TheGroupshallnotgiveconsiderationtoanysignificantfinancingcomponentinacontractifthegapbetweenthecustomer’sacquisitionofcontrolovertheproductsandpaymentofconsiderationisexpectedtobelessthan1year.

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(30)Revenuerecognition(Continued)

WarrantyclausesTheGroupprovidesqualityassuranceforproductssoldandassetsbuiltinaccordancewithcontracttermsandlawsandregulations.TheaccountingtreatmentofqualityassuranceintheformofwarrantyassuringcustomersproductssoldareincompliancewithrequiredstandardsissetoutinNoteIII.28.WheretheGroupprovidesaservicewarrantyforastandaloneserviceinadditiontotheassuranceofcomplianceofproductswithrequiredstandards,suchwarrantyistreatedasastandalonecontractualperformanceobligation,andaportionofthetransactionpriceshallbeallocatedtotheservicewarrantybasedonapercentageofthestandalonepricefortheprovisionofproductandservicewarranty.Whenassessingwhetherawarrantyisrenderingastandaloneserviceinadditiontoprovidingguaranteetocustomersthatallsoldgoodsareincompliancewithrequiredstandards,theGroupwillconsiderwhetherornotsuchwarrantyisastatutoryrequirement,thetermofthewarrantyandthenatureoftheGroup’sundertakingtoperformitsobligations.RewardpointsprogramTheGroupgrantsrewardpointstocustomerswhensellinggoods.CustomerscanuserewardpointstoredeemfreeordiscountedgoodsprovidedbytheGroup.Thisrewardpointsprogramprovidessignificantrightstocustomers,theGroupconsideritasanindividualperformanceobligation,andanapportionpartofthetransactionpricetorewardpointsbasedonpricingofgoodsorserviceswithwarrantyclauses.Revenueisrecognisedwhencustomersobtaingoodsredeemedorwhenrewardpointsexpire.Principalresponsibleperson/proxyForgoodsorotherassetsobtainedfromathirdpartywhichweretransferredlatertocustomers,theGrouphastherighttodecideindependently,pricingofgoods.ThismeansthattheGrouphasobtainedcontroloverrelatedgoodsbeforetransferringtocustomers.Therefore,theGroupistheprincipalresponsibleperson,andrevenueisrecognisedbasedontotalamountofconsiderationreceivedorreceivable.Otherwise,theGroupisproxy,andrevenueisrecognisedbasedonexpectedcommission.Thisamountshouldbethetotalamountofconsiderationreceivedorreceivablenetoftheamountpayabletootherparties,orbasedonthefixedamountorpercentage.

(31)Governmentgrants

Agovernmentgrantisrecognizedwhentheconditionsattachedtoitcanbecompliedwithandthegovernmentgrantcanbereceived.Foragovernmentgrantintheformoftransferofmonetaryassets,thegrantismeasuredattheamountreceivedorreceivable.Foragovernmentgrantintheformoftransferofnon-monetaryassets,itismeasuredatfairvalue;ifthefairvalueisnotreliablydeterminable,thegrantismeasuredatnominalamount.

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(31)Governmentgrants(Continued)Governmentgrantsrelatedtoassetsrefertogovernmentassetswhicharegrantedtoenterprisesforthelong-termassetsformedbyacquisition,constructionorinothermanners.Governmentgrantsrelatedtoincomerefertogovernmentgrantsotherthanthoserelatedtoassets.Governmentgrantsrelatedtoincometobeusedascompensationforfutureexpensesorlossesshallberecognizedasdeferredincomeandshallbechargedtothecurrentprofitorlossorbeusedtowritedowntherelevantloss,duringtherecognitionoftherelevantcostexpensesorlosses;orusedascompensationforrelevantexpensesorlossesalreadyincurredbyenterprisesshallbedirectlychargedtotheprofitorlossaccountinthecurrentperiodorusedtowritedowntherelevantcost.Thegovernmentgrantsrelatedtoassetsshallbeusedtowritedownthebookvalueoftherelevantassetsorberecognizedasdeferredincome.Thegovernmentgrantsrelatedtoassets,recognizedasdeferredincome,shallbechargedtotheprofitandlossreasonablyandsystematicallyinstagesovertheusefullivesoftherelevantassets.Thegovernmentgrantsmeasuredatanominalamountshallbedirectlychargedtothecurrentprofitorloss.Ifanyrelatedassetissold,transferred,writtenoffordestroyedbeforetheendofitsusefullife,thebalanceoftheundistributeddeferredincomeshallbetransferredtothecurrentgainorlossondisposaloftheasset.

(32)IncometaxIncometaxcomprisescurrentanddeferredtax.Incometaxisrecognizedasincomeoranexpenseinprofitorlossofthecurrentperiod,orrecognizeddirectlyinshareholders’equityifitarisesfromabusinesscombinationorrelatestoatransactionoreventwhichisrecognizeddirectlyinshareholders’equity.TheGroupmeasuresacurrenttaxassetorliabilityarisingfromthecurrentandpriorperiodsbasedontheamountofincometaxexpectedtobepaidbytheGrouporreturnedbytaxauthoritescalculatedaccordingtorelatedtaxlaws.Deferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts(temporarydifferences).Adeferredtaxassetisrecognizedforthedeductiblelossesthatcanbecarriedforwardtosubsequentyearsfordeductionofthetaxableprofitinaccordancewiththetaxlaws.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill.Nodeferredtaxassetordeferredtaxliabilityisrecognizedforthetemporarydifferencesresultingfromtheinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.

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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(32)Incometax(Continued)Deferredtaxassetsareonlyrecognizedfordeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableinthefutureagainstwhichthedeductibletemporarydifferences,deductiblelossesandtaxcreditscanbeutilized.Deferredtaxassetsandliabilitiesareoffsetwhen:

?thedeferredtaxesarerelatedtothesametaxpayerwithintheGroupandthesametaxationauthority;and?thattaxpayerhasalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilities.Deferredtaxliabilitiesarerecognizedfortemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociates,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifference,anditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Whenitisprobablethatthetemporarydifferencesarisingfrominvestmentsinsubsidiaries,andassociateswillbereversedintheforeseeablefutureandthatthetaxableprofitwillbeavailableinthefutureagainstwhichthetemporarydifferencescanbeutilized,thecorrespondingdeferredtaxassetsarerecognized.

(33)ChangesinaccountingpoliciesandaccountingestimatesChangesinaccountingpolicies

Detailsandreasonsforchangesinaccountingestimates

DetailsandreasonsforchangesinaccountingestimatesProceduresforapprovalNotes
On7December2018,theMinistryofFinancerevised“AccountingStandardforEnterprisesNo.21-Lease”(the“NewLeaseStandard”).ItisalsorequiredthatenterpriseslistedbothdomesticallyandabroadandenterpriseslistedabroadandpreparingfinancialstatementsinaccordancewithInternationalFinancialReportingStandardsortheAccountingStandardsforBusinessEnterprisesadopttheNewLeaseStandardfrom1January2019.ApprovalbyTheeleventhmeetingoftheeighthboardofdirectorsthatheldonAugust22,2019.TheGroupimplementtheNewLeaseStandardfrom1January2019.AccordingtotheconvergencerulesoftheNewLeaseStandard,itisoptionaltoadjusttheamountoftheretainedearningsandotherrelevantaccountsatthebeginningoftheyearwhentheNewLeaseStandardisinitiallyimplementedbasedonthecumulativeimpactoftheinitialimplementoftheNewLeaseStandardwithoutadjustingtheinformationforthecomparableperiod.Thischangeinaccountingpolicywillincreasethecompany'stotalassetsandtotalliabilities,butitisnotexpectedtohaveasignificantimpactontheowner'sequityandnetprofit.

Themainimpactoftheretroactiveadjustmentsresultingfromtheabovechangesinaccountingpoliciesonthefinancialstatementsareasfollows:

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)Consolidatedbalancesheet:

ASSETS

ASSETS31December20181January2019Adjustment
Currentassets
Cashandbankbalances8,089,781,304.568,089,781,304.56
Notesreceivable1,357,311,929.63789,536,654.23(567,775,275.40)
Accountsreceivable9,336,861,647.929,336,861,647.92
Receivablefinancing-567,775,275.40567,775,275.40
Advancestosuppliers583,484,515.95419,443,944.83(164,040,571.12)
Otherreceivables643,493,359.32643,493,359.32
Incl:Interestreceivable8,223,327.648,223,327.64
Inventories4,389,335,942.194,389,335,942.19
Othercurrentassets95,347,629.1895,347,629.18
Totalcurrentassets24,495,616,328.7524,331,575,757.63(164,040,571.12)
Non-currentassets
Long-termequityinvestments1,880,393,786.101,880,393,786.10
Otherequityinstrumentsinvestment13,685,760.0013,685,760.00
Othernon-currentfinancialassets140,000,000.00140,000,000.00
Investmentproperties144,894,495.97144,894,495.97
Fixedassets607,933,827.67594,067,973.91(13,865,853.76)
Constructioninprogress36,412,614.6136,412,614.61
Right-of-useassets-1,782,725,159.781,782,725,159.78
Intangibleassets319,207,126.15318,693,082.72(514,043.43)
Goodwill833,547,800.60833,547,800.60
Long-termprepaidexpenses311,328,706.46311,328,706.46
Deferredtaxassets74,914,209.9574,914,209.95
Othernon-currentassets72,365,863.7158,168,919.11(14,196,944.60)
Totalnon-currentassets4,434,684,191.226,188,832,509.211,754,148,317.99
Totalassets28,930,300,519.9730,520,408,266.841,590,107,746.87

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)

LIABILITIES

LIABILITIES31December20181January2019Adjustment
Currentliabilities
Short-termborrowings2,597,652,702.432,597,652,702.43
Notespayable3,416,755,681.803,416,755,681.80
Accountspayable6,468,535,961.176,468,535,961.17
Advancesfromcustomers--
Employeebenefitspayable231,866,407.40231,866,407.40
Taxpayable241,980,412.72241,980,412.72
Otherpayables1,539,436,971.931,539,436,971.93
Incl:Interestpayable21,906,660.6321,906,660.63
Dividendspayable6,389,320.966,389,320.96
Contractliabilities255,590,612.37255,590,612.37
Non-currentliabilitiesduewithinoneyear5,861,324.37495,132,751.96489,271,427.59
Othercurrentliabilities292,465.75292,465.75
Totalcurrentliabilities14,757,972,539.9415,247,243,967.53489,271,427.59
Non-currentliabilities
Long-termborrowings31,600,000.0031,600,000.00
Leaseliabilities-1,104,600,297.801,104,600,297.80
Long-termpayables4,563,978.52800,000.00(3,763,978.52)
Long-termemployeebenefitspayable2,050,000.002,050,000.00
Deferredincome91,491,170.4091,491,170.40
Deferredtaxliabilities67,605,161.8867,605,161.88
Othernon-currentliabilities69,241,176.1869,241,176.18
Totalnon-currentliabilities266,551,486.981,367,387,806.261,100,836,319.28
Totalliabilities15,024,524,026.9216,614,631,773.791,590,107,746.87

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)

SHAREHOLDERS’EQUITY

SHAREHOLDERS’EQUITY31December20181January2019Adjustment
Shareholders’equity
Sharecapital428,126,983.00428,126,983.00
Capitalsurplus4,320,984,981.514,320,984,981.51
Surplusreserve214,063,491.50214,063,491.50
Retainedearnings6,655,257,147.276,655,257,147.27
Shareholders’equityattributabletoshareholdersoftheparent11,618,432,603.2811,618,432,603.28
Non-controllinginterests2,287,343,889.772,287,343,889.77
Totalshareholders’equity13,905,776,493.0513,905,776,493.05
Totalliabilitiesandshareholders’equity28,930,300,519.9730,520,408,266.841,590,107,746.87

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)Company’sbalancesheet:

ASSETS

ASSETS31December20181January2019Adjustment
Currentassets
Cashandbankbalances1,817,654,598.011,817,654,598.01
Notesreceivable63,870,980.3934,154,774.75(29,716,205.64)
Accountsreceivable631,236,593.94631,236,593.94
Receivablefinancing29,716,205.6429,716,205.64
Advancestosuppliers4,760,182.004,757,318.66(2,863.34)
Otherreceivables1,541,980,883.501,541,980,883.50
Incl:Interestreceivable7,550,877.077,550,877.07
Dividendsreceivable--
Inventories158,166,185.65158,166,185.65
Othercurrentassets39,482.3839,482.38
Totalcurrentassets4,217,708,905.874,217,706,042.53(2,863.34)
Non-currentassets
Long-termequityinvestments7,432,906,692.247,432,906,692.24
Othernon-currentfinancialassets140,000,000.00140,000,000.00
Investmentproperties1,955,854.461,955,854.46
Fixedassets21,362,422.0321,362,422.03
Right-of-useassets-6,827,171.386,827,171.38
Intangibleassets2,452,222.512,452,222.51
Long-termdeferredexpenses7,481,809.537,481,809.53
Othernon-currentassets7,000,000.007,000,000.00
Totalnon-currentassets7,613,159,000.777,619,986,172.156,827,171.38
Totalassets11,830,867,906.6411,837,692,214.686,824,308.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)

LIABILITIES

LIABILITIES31December20181January2019Adjustment
Currentliabilities
Short-termborrowings539,000,000.00539,000,000.00
Notespayable252,317,800.78252,317,800.78
Accountspayable442,049,241.22442,049,241.22
Contractliabilities4,182,083.404,182,083.40
Employeebenefitspayable36,233,563.1236,233,563.12
Taxpayables13,426,601.9013,426,601.90
Otherpayables1,481,817,856.561,481,817,856.56
Incl:Interestpayable1,354,592.351,354,592.35
Non-currentliabilitiesduewithinoneyear-786,068.44786,068.44
Othercurrentliabilities226,427.99226,427.99
Totalcurrentliabilities2,769,253,574.972,770,039,643.41786,068.44
Non-currentliabilities
Long-termborrowings31,600,000.0031,600,000.00
Leaseliabilities-6,038,239.606,038,239.60
Long-termpayables800,000.00800,000.00
Long-termemployeebenefitspayable118,000.00118,000.00
Deferredincome1,687,899.501,687,899.50
Deferredtaxliabilities2,298,426.392,298,426.39
Totalnon-currentliabilities36,504,325.8942,542,565.496,038,239.60
Totalliabilities2,805,757,900.862,812,582,208.906,824,308.04

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(33)Changesinaccountingpoliciesandaccountingestimates(Continued)

SHAREHOLDERS’EQUITY

SHAREHOLDERS’EQUITY31December20181January2019Adjustment
Shareholders’equity
Sharecapital428,126,983.00428,126,983.00
Capitalsurplus4,426,362,777.264,426,362,777.26
Surplusreserves214,063,491.50214,063,491.50
Retainedearnings3,956,556,754.023,956,556,754.02
Totalshareholders’equity9,025,110,005.789,025,110,005.78
Totalliabilitiesandshareholders’equity11,830,867,906.6411,837,692,214.686,824,308.04

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IVTaxation

1.Maincategoriesandratesoftaxes:

Categories

CategoriesTaxbaseTaxrate
Corporateincometax(“CIT”)Taxableincome15%,20%or25%
Valueaddedtax(“VAT”)Taxablevalueaddedamount(TaxpayableiscalculatedbyusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod)0%,3%,5%,6%,9%,10%,13%,16%
CitymaintenanceandconstructiontaxAmountofVAT5%or7%
EducationalsurchargeAmountofVAT3%
LocaleducationalsurchargeAmountofVAT2%

2.Taxpreferences(a)In2011,theUrumqiHeadOffice,ChangjiBranchandKaramayBranchofSinopharmHoldingXinjiangNew&SpecialMedicinesChainStoreCo.,Ltd.(“XinjiangNew&SpecialMedicines”),subsidiariesofthegroup,shallpaytaxatarateof15%byjurisdictions.AccordingtotheCircularoftheMinistryofFinance,theStateAdministrationofTaxation,theGeneralAdministrationofCustomsonIssuesConcerningTaxPoliciesfortheFurtherDevelopmentoftheWesternRegions(Caishui[2011]No.58),enterprisesfromencouragedindustriesintheWesternRegions,couldenjoyareducedCITrateof15%from1January2011to31December2020.In2014,theGroup’ssubsidiarySinopharmHoldingGuangxiLogisticsCo.,Ltd.(“SinopharmGuangxiLogistics”)wasapprovedbytheGuangxiLocalTaxBureautoenjoyataxdiscountapplicabletocorporationsintheregionofWesternDevelopmenttopayincometaxatataxrateof15%.EightsubsidiariesinGuangxiProvinceoftheGroup,includingSinopharmGuangxi,SinopharmHoldingLiuzhouCo.,Ltd.(“SinopharmLiuzhou”),SinopharmHoldingBeihaiCo.,Ltd(“SinopharmBeihai”),SinopharmHoldingGuilinCo.,Ltd.(“SinopharmGuilin”),SinopharmHoldingGuigangCo.,Ltd.(“SinopharmGuigang”),SinopharmHoldingYulinCo.,Ltd.(“SinopharmYulin”),SinopharmHoldingBaiseCo.,Ltd(“SinopharmBaise”)andSinopharmHoldingWuzhouCo.,Ltd.(“SinopharmWuzhou”)wereallapprovedbytheGuangxiLocalTaxBureautoenjoyataxconcessionofWesternDevelopmentatapreferentialCITrateof15%.TheapplicableperiodforSinopharmGuangxi,SinopharmLiuzhouandSinopharmBeihaiis1January2014to31December2020,andthatfortheother5subsidiariesis1January2015to31December2020.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IVTaxation(Continued)

2.Taxpreferences(Continued)TheGroup'ssubsidiarySinopharmHoldingNationalPharmacyInnerMongoliaCo.,Ltd.(hereinafterreferredtoas"NationalUniversityofInnerMongolia"),SinopharmHoldingNationalPharmacyHulunbeierCo.,Ltd.,SinopharmHoldingNationalPharmacyWulanchabuCo.,Ltd.,NationalUniversityPharmacyManzhouliCo.,Ltd.,SinopharmHoldingNationalPharmacyBayannaoerCo.,Ltd.andInnerMongoliaNUSPharmaceuticalCo.,Ltd.,inaccordancewiththeprovisionsofCaishui[2011]No.58Document,meettheconditionsfortheenjoymentofcorporateincometaxbenefitsintheWesternDevelopment,andobtaintheNoticeofApprovalforReductionandExemptionofTaxes.In2019,theenterpriseincometaxwaspaidatapreferentialtaxrateof15%.AccordingtoCaishui[2011]No.58Document,SinopharmHoldingNationalPharmacyGuangxiChainCo.,Ltd.andNingxiaGuodaPharmacyChainCo.,Ltd.reducedthecorporateincometaxof2019atareducedrateof15%.Inthehalfyearof2019,accordingtothe"NoticeonImplementingtheInclusiveTaxDeductionPolicyforSmallandMicroEnterprises"(CaiShui[2019]No.13):theGroup'ssubsidiarySinopharmMedicalSupplyChainService(Guangxi)Co.,Ltd.,ShanghaiGuodaDongshengPharmacyCo.,Ltd.,SinopharmHoldingNationalPharmacyGuangzhouChainCo.,Ltd.,TaishanCityGuokongGuodaGroupKangdaPharmacyChainCo.,Ltd.,GuangxiGuodaPharmaceuticalConsultingChainCo.,Ltd.,ChangzhiCityGuodaWanminPharmacyCo.,Ltd.,ShanghaiFumeiXuhuiPharmacyCo.,Ltd.,SanheLiyangJinxiangPharmacyCo.,Ltd.,SinopharmHoldingNationalPharmacyHulunbeierCo.,Ltd.Thecompany,NUSPharmacyManzhouliCo.,Ltd.paystaxableincomelessthanRMB3million,andmeetstherequirementsofsmallandmeagerprofitenterprises,soitpayscorporateincometaxatarateof20%.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements

1.Cashandbankbalances

30June2019

30June20191January2019
Cashonhand3,415,085.255,587,191.18
Cashatbanks7,765,559,793.667,626,529,829.59
Othercashbalances317,353,629.58457,664,283.79
8,086,328,508.498,089,781,304.56

At30June2019,othercashbalanceswereconsistedoflettercreditdepositsamountingtoRMB305,806.00(31December2018:RMB4,191,246.00),bankacceptancenotesdepositsamountingtoRMB317,047,823.58(31December2018:RMB453,473,037.79).

2.Notesreceivable

30June20191January2019
Tradeacceptancenotes790,664,828.26789,536,654.23
Bankacceptancenotes--
790,664,828.26789,536,654.23

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

2.Notesreceivable(Continued)

NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2019and31December2018areasfollows:

NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2019and31December2018areasfollows:

30June2019

30June2019
DerecognizedNotderecognized
Tradeacceptancenotes216,316,836.99
Bankacceptancenotes-

216,316,836.99

Asat30June2019and31December2018,notesthatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenoteonmaturitydateareasfollows:

Asat30June2019and31December2018,notesthatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenoteonmaturitydateareasfollows:

30June2019

30June2019Bankacceptancenotes

Bankacceptancenotes-
Tradeacceptancenotes20,010,459.85

3.Accountsreceivable

20,010,459.85Theaccountsreceivablebycategoryareanalyzedbelow:

Theaccountsreceivablebycategoryareanalyzedbelow:

30June2019

30June20191January2019
GrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
AmountProportionAmountProportionAmountProportionAmountProportion
Itemsforwhichprovisionforbaddebtisrecognisedseparately613,529,239.365.17%19,044,116.833.10%595,919,487.296.36%16,766,679.232.81%
Itemsforwhichprovisionforbaddebtisrecognizedbygroup(creditriskcharacteristics)11,262,211,636.1294.83%30,256,027.060.27%8,780,463,595.3793.64%22,754,755.510.26%
11,875,740,875.48100.00%49,300,143.890.42%9,376,383,082.66100.00%39,521,434.740.42%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

At30June2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:

At30June2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:

Accountsreceivable(bycompany)

Accountsreceivable(bycompany)CarryingamountBaddebtprovisionRateAssessmentforimpairment
Receivableofmedicalinsurance352,956,757.11588,948.800.17%Partofthemedicalinsurancereceivabletakeslongertocollect,andhasriskofdefault
ReceivableofE-Businessothersuppliers110,676,893.446,739,296.666.09%ReceivableofE-Businesswithlowriskofrecoverability
Receivableofcardsettlement,e-commerceandthird-party55,508,719.88-0.00%ReceivableofFranchiseswithnoriskofrecoverability
Receivableofrelatedparty47,567,694.11-0.00%Receivableduefromarelatedpartywithlowriskofrecoverability
DatonXinJianKangHospital21,439,257.44-0.00%Receivableduefromafixedcooperativehospitalwithnoriskofrecoverability
LiuzhouRailwayCentralHospital13,820,739.09156,693.081.13%Bothpartiestothetransactionhavedifferencesintheamountofpurchaseandsalesandhasriskofdefault
HubeixianningPharmaceuticalCo.,Ltd.,11,559,178.2911,559,178.29100.00%Alawsuithasbeenfiledagainstthecustomerandhashighriskofdefault
Total613,529,239.3619,044,116.83--

Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss:

30June2019

30June2019
EstimateddefaultamountExpectedcreditlossinentirelifetimeExpectedcreditlossrate
Within1year11,186,234,127.3325,495,025.530.23%
1to2years71,069,101.893,646,494.405.13%
2to3years1,616,063.02194,281.6812.02%
Over3years3,292,343.88920,225.4527.95%
11,262,211,636.1230,256,027.06

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)Theaginganalysisofaccountsreceivableswasasfollows:

30June2019

30June2019Within1year

Within1year11,753,416,277.07
1to2years80,575,034.81
2to3years3,374,443.53
3to4years24,801,268.92
4to5years12,775,655.02
Over5years798,196.13
Total11,875,740,875.48

Baddebtprovisionforthecurrentperiodasfollows:

OpeningbalanceReversalofwrite-offinpreviousyearsIncreasesintheyearReversalintheyearWrittenoffintheyearClosingbalance
Baddebts39,521,434.7411,040.0016,376,925.13(6,609,255.98)-49,300,143.89
total39,521,434.7411,040.0016,376,925.13(6,609,255.98)-49,300,143.89

On30June2019,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:

Amount

AmountBaddebtprovisionamount%ofthetotalaccountsreceivable
Thetopfiveaccountsreceivabletotal861,862,590.71363,240.297.25%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

4.Accountsreceivablefinancing

30June2019

30June20191January2019
Bankacceptancenotes325,439,580.18567,775,275.40
325,439,580.18567,775,275.40

5.Advancestosuppliers

(a)Theagingofadvancestosuppliersisanalyzedbelow:
30June20191January2019
Amount%oftotalbalanceAmount%oftotalbalance
Within1year355,664,414.2799.60%416,103,769.0899.20%
1to2years1,215,326.290.34%873,351.850.21%
2to3years109,088.480.03%2,466,823.900.59%
Above3years89,990.600.03%--
357,078,819.64-419,443,944.83-

TheprepaymentagedformorethanayearismainlytheadvanceequipmentamountingtoRMB1,414,405.37(31December2018:RMB3,340,175.75)asthehospitalequipmentprocurementisalargeprojectwhichtakesalongtimetocomplete.(b)

(b)On30June2019,thetopfiveadvancestosuppliersbycustomeraresummarizedbelow:
AmountProportionoftotalbalance
Totalamountoftopfiveadvancestosuppliers128,740,740.3736.05%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables

30June2019

30June20191January2019
Interestreceivable14,791,483.108,223,327.64
Otherreceivables639,294,904.75635,270,031.68
654,086,387.85643,493,359.32

(1)Interestreceivable

30June20191January2019
Fixeddeposits13,306,641.886,376,708.68
EntrustedLoans1,484,841.221,846,618.96
14,791,483.108,223,327.64

(2)Otherreceivables

Categoryofotherreceivablesbynatureisasfollows:

Nature

Nature30June20191January2019
Deposits257,903,552.46278,455,623.30
Receivableduefromrelatedparties10,414,842.498,119,399.79
Entrustedborrowings44,000,000.0044,000,000.00
Pettycashadvancetoemployees17,538,148.1312,439,613.27
Receivableofequitytransactions8,980,000.008,980,000.00
Others321,989,366.05303,197,349.04
Total660,825,909.13655,191,985.40

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables(Continued)

Thechangesinbaddebtprovisionforotherreceivablesbasedontheentirelifetimeexpectedcreditlossesareasfollows:

Stage1

Stage1Stage2Stage3
BaddebtExpectedcreditlossesoverthenext12monthsEntirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred)Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred)Total
Balanceat1January2019-19,921,953.72-19,921,953.72
Balanceat1January2019duringtheperiod
Provisionsduringtheperiod-3,108,281.87-3,108,281.87
Reversalduringtheperiod-(1,441,849.89)-(1,441,849.89)
Write-backduringtheperiod----
Write-offduringtheperiod-(57,381.32)-(57,381.32)
OtherChanges----
Balanceat30June2019-21,531,004.38-21,531,004.38

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables(Continued)

Theaginganalysisofotherreceivableswasasfollows:

30June2019

30June2019Within1year

Within1year526,279,992.21
1to2years98,441,809.40
2to3years15,955,086.40
Over3years20,149,021.12
Total660,825,909.13

Baddebtprovisionofotherreceivablesin2019wasRMB3,108,281.87,withtherecoveredorreversedamountofRMB1,441,849.89,andthewrittenoffamountofRMB57,381.32.Asat30June2019,thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:

Asat30June2019,thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:

Nature

NatureAmountAge%oftotalamountProvisionofbaddebt
GuangdongPharmaceuticalelectronictradingplatformPharmaceuticaltradingplatformrepaymentnotyetcleared111,024,446.08Within1year16.80%
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.Entrustedborrowings44,000,000.00Within2year6.66%
TCM-IntegratedCancerCenterofSouthernMedicalUniversityDepositoflogisticsextensionservicesproject30,082,900.00Within2year4.55%
ShenyangMedicalInsuranceManagementServiceCenterAmountduefromgovernment27,635,423.96Within1year4.18%
ShenzhenSocialInsuranceFundAdministrationAmountduefromgovernment18,714,610.23Within1year2.83%
231,457,380.2735.03%-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

7.Inventories

(a)

(a)Inventoriesbycategoryareanalyzedbelow:
30June20191January2019
BookvalueProvisionNetbookvalueBookvalueProvisionNetbookvalue
Rawmaterials362,562.93-362,562.931,410,012.28-1,410,012.28
Workinprogress5,344.32-5,344.321,011,007.23-1,011,007.23
Finishedgoods4,883,623,033.697,772,292.624,875,850,741.074,392,144,746.888,313,195.294,383,831,551.59
Lowcostconsumables6,454,967.95-6,454,967.953,083,371.09-3,083,371.09
4,890,445,908.897,772,292.624,882,673,616.274,397,649,137.488,313,195.294,389,335,942.19
(b)Provisionfordeclinesinvalueofinventoriesisanalysedbelow:
1January2019IncreasesDecreases30June2019
chargeOtherReversalorWrittenoffOther
Finishedgoods8,313,195.291,567,262.18-2,108,164.85-7,772,292.62
8,313,195.291,567,262.18-2,108,164.85-7,772,292.62

8.Othercurrentassets

30June20191January2019
InputVATtobecredited95,048,826.5194,312,573.34
Corporateincometaxtobededucted2,041,094.25723,000.46
Others227,366.84312,055.38
97,317,287.6095,347,629.18

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

9.Long-termequityinvestments

Associatesin2019

Investee

Investee1January2019Changesintheyear30June2019Provisionforimpairment
AdditionalInvestmentProfitoflossunderequitymethodOtherchangesinequityCashdividenddeclaredbyinvesteeImpairmentprovision
Associates
ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”).265,316,653.68-33,592,995.70---298,909,649.38-
ZhijunMedicine355,353,196.15-58,536,101.74---413,889,297.89-
ZhijunTrade8,730,994.87-1,467,031.77---10,198,026.64-
ZhijunSuzhou23,379,018.92-(11,390,538.03)---11,988,480.89-
PingshanMedicine86,292,927.33-22,425,900.45---108,718,827.78-
ShyndecPharmaceutical1,098,566,852.51-65,258,503.4542,424,747.00(16,896,427.80)-1,189,353,675.16-
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.11,029,918.10-247,588.49-(1,052,999.99)-10,224,506.60-
ShanghaiLiyiPharmacyCo.,Ltd.955,428.23-----955,428.23-
ShanghaiRenbeiPharmacyCo.,Ltd-1,800,000.00-1,800,000.00
GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.-2,000,000.00-2,000,000.00
SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.(“GuangdongJienuo”)6,802,156.19-(995,293.58)---5,806,862.61-
ShanghaiDingqunManagement&ConsultingCo.,Ltd23,966,640.12-----23,966,640.12-
DongyuanAccordPharmaceuticalChainCo.,Ltd.396,638.32-----396,638.32396,638.32
1,880,790,424.423,800,000.00169,142,289.9942,424,747.00(17,949,427.79)-2,078,208,033.62396,638.32

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

10.Otherequityinstrumentinvestment

30June2019

30June20191January2019
SinopharmHealthOnlineCo.,Ltd.12,000,000.0012,000,000.00
SinopharmGuodaHubeiCo.,Ltd.1,000,000.001,000,000.00
HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd.315,000.00315,000.00
ShanghaiGuodaShuguangPharmacyCo.,Ltd270,760.00270,760.00
ShanghaiGuorenPharmacyCo.,Ltd.100,000.00100,000.00
13,685,760.0013,685,760.00

11.Othernon-currentfinancialassets

30June20191January2019
Financialassetmeasuredatfairvaluethroughcurrentprofitorloss140,000,000.00140,000,000.00
140,000,000.00140,000,000.00

OnJune30,2019,thebalanceofothernon-currentfinancialassetswasthefairvalueoftheshareoftheSinopharmCICCMedicalIndustryFund(referredtoas“theIndustrialFund”)subscribedbytheCompany.TheGroup's21stmeetingofthe7thBoardofDirectorsheldonJanuary6,2017reviewedandapprovedtheproposaloftheCompanytosubscribefortheindustryfundandrelatedpartytransactions.Asalimitedpartneroftheindustryfund,thecompanyplanstoinvestRMB200milliontosubscribefortheshareoftheindustrialfund,whichwillbepaidinthreephases.ThecompanypaidtheinitialinvestmentofRMB60millionin2017.AsofDecember31,2017,thefunddidnotcompletetherelevantlicensesandapprovalsanddidnotstartoperations.Therefore,thecompany'sinitialinvestmentamountedtoRMB60million.Includedinothernon-currentassets.In2018,thecompanypaidthesecondphaseofthecapitalcontributionofRMB80million.AsofJune30,2019,thecompanyhadpaidatotalofRMB140million.Theindustryfundhasobtainedrelevantapprovalsin2018andhasstartedoperations.SincethecashflowobtainedbytheCompanyfromtheinvestmentofthefundincludesboththecontractualcashflowgeneratedbytheunderlyingassetsduringtheinvestmentperiodandthecashflowofthedisposaloftheunderlyingassets,thecontractualcashflowthatdoesnotsatisfythefinancialassetsgeneratedonaspecificdateisonlyThepaymentofinterestonthebasisoftheoutstandingprincipalamount,therefore,theCompanyclassifiestheinvestmentoftheindustrialfundintofinancialassetsmeasuredatfairvaluethroughprofitorlossandpresentedasothernon-currentfinancialassets..

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

12.InvestmentpropertiesSubsequentmeasurementunderthecostmodel:

2019

2019BuildingsandconstructionsLanduserightConstructioninprogressTotal
Originalcost
Openingbalance242,555,189.9122,719,102.03265,274,291.94
Purchase---
Transfertofixedassets1,634,951.97-1,634,951.97
Closingbalance240,920,237.9422,719,102.03263,639,339.97
Accumulateddepreciationandamortization
Openingbalance111,131,166.217,948,629.76119,079,795.97
Provision3,376,058.1351,879.463,427,937.59
Transfertofixedassets487,533.59-487,533.59
Closingbalance114,019,690.758,000,509.22122,020,199.97
Provisionforimpairment
Openingbalance1,300,000.00-1,300,000.00
Closingbalance1,300,000.00-1,300,000.00
Carryingamount
Atendoftheperiod125,600,547.1914,718,592.81140,319,140.00
Atbeginningoftheperiod130,124,023.7014,770,472.27144,894,495.97

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

13.Fixedassets

2019

2019
BuildingsMachineryVehiclesOtherequipmentFixedassetimprovementsTotal
Originalcost
Openingbalance489,661,268.82185,444,104.0989,613,300.13294,575,902.8954,661,564.431,113,956,140.36
Purchase714,456.8316,956,031.535,069,073.2115,843,713.4617,383,853.3755,967,128.40
Transferfromconstructioninprogress-2,113,175.66-816,880.96-2,930,056.62
Businesscombinationnotinvolvingenterprisesundercommoncontrol------
TransferfromInvestmentproperties1,634,951.97----1,634,951.97
Disposalorretirement-1,487,621.645,499,822.637,281,743.7710,306,628.7024,575,816.74
Closingbalance492,010,677.62203,025,689.6489,182,550.71303,954,753.5461,738,789.101,149,912,460.61
Accumulateddepreciation
Openingbalance164,477,441.1285,085,741.3159,523,264.14172,436,749.0538,364,970.83519,888,166.45
Provision7,866,027.6014,213,255.593,843,870.0612,354,113.5210,639,915.0748,917,181.84
TransferfromInvestmentproperties487,533.59----487,533.59
Disposalorretirement-1,107,179.833,813,515.964,549,800.503,462,405.9712,932,902.26
Closingbalance172,831,002.3198,191,817.0759,553,618.24180,241,062.0745,542,479.93556,359,979.62

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

13.Fixedassets(Continued)

2019(Continued)

2019(Continued)
BuildingsMachineryVehiclesOtherequipmentFixedassetimprovementsTotal
Provisionforimpairment
Openingbalance------
Disposalofsubsidiaries------
Closingbalance------
Carryingamount
Atendofperiod319,179,675.31104,833,872.5729,628,932.47123,713,691.4716,196,309.17593,552,480.99
Atbeginningoftheperiod325,183,827.70100,358,362.7830,090,035.99122,139,153.8416,296,593.60594,067,973.91

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

13.Fixedassets(Continued)

Fixedassetswithoutofficialpropertyrightcertificates

Items

ItemsCarryingamountReasonforoutstandingpropertyrightcertificates
Buildings27,259,503.70Intheprocess

14.Constructioninprogress

30June20191January2019
Constructioninprogress31,980,582.2136,412,614.61
30June20191January2019
CarryingbalanceImpairmentCarryingamountCarryingbalanceImpairmentCarryingamount
Warehouseimprovementproject862,479.40-862,479.40806,272.40-806,272.40
Newofficebuildingproject627,903.09-627,903.09188,251.26-188,251.26
Supplychainextensionproject15,025,013.15-15,025,013.1512,617,953.89-12,617,953.89
Softwareproject5,544,210.47-5,544,210.4712,930,498.53-12,930,498.53
Otherprojects9,920,976.10-9,920,976.109,869,638.53-9,869,638.53
31,980,582.21-31,980,582.2136,412,614.61-36,412,614.61

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

14.Constructioninprogress(Continued)

(a)Changesofsignificantconstructioninprogress

Changesofsignificantconstructioninprogressin2019arepresentedasfollows:

ProjectnameBudgetAtbeginningoftheyearIncreaseDecreaseAtendofyearProportionofinvestmenttobudget(%)projectprogressSourceoffunds
TransferredtofixedassetsTransferredtointangibleassetsOthers
Warehouseimprovementproject2,981,387.76806,272.401,309,197.95278,461.63-974,529.32862,479.4060.65%60.65%Ownfunds
NewofficebuildingProject627,903.08188,251.26439,651.83---627,903.09100.00%100.00%Ownfunds
Supplychainextensionproject33,412,417.2412,617,953.895,137,275.292,606,162.49-124,053.5415,025,013.1553.80%53.80%Ownfunds
Softwareproject12,949,580.1912,930,498.535,563,292.1345,432.50-12,904,147.695,544,210.4743.20%43.20%Ownfunds
Otherconstructionprojects206,249,966.069,869,638.5383,546.40-32,208.839,920,976.104.84%4.84%Ownfunds
256,221,254.3336,412,614.6112,532,963.602,930,056.6214,034,939.3831,980,582.21--

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

15.Right-of-useassets

Items

ItemsStoresOfficebuildingWarehouseOthersTotal
Originalcost
Openingbalance1,471,295,979.5148,588,435.58239,171,388.6623,669,356.031,782,725,159.78
Increase364,813,035.1325,970,953.2133,172,962.78423,956,951.12
Closingbalance1,836,109,014.6474,559,388.79272,344,351.4423,669,356.032,206,682,110.90
Accumulateddepreciation
Openingbalance-----
Depreciation261,325,528.918,926,444.7422,855,535.442,593,404.18295,700,913.27
Closingbalance261,325,528.918,926,444.7422,855,535.442,593,404.18295,700,913.27
Carryingamount
Atendoftheperiod1,574,783,485.7365,632,944.05249,488,816.0021,075,951.851,910,981,197.63
Atbeginningoftheperiod1,471,295,979.5148,588,435.58239,171,388.6623,669,356.031,782,725,159.78

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

16.Intangibleassets

2019

2019LanduserightSoftwareTrademarksFavorableleaseSalesnetworkFranchiseTotal
Originalcost
Openingbalance62,083,143.97142,108,155.4265,977,850.0093,242,000.00112,117,142.86710,000.00476,238,292.25
Purchase-3,733,823.60----3,733,823.60
Transferfromconstructioninprogress-12,904,147.69----12,904,147.69
Disposalorretirement-------
Closingbalance62,083,143.97158,746,126.7165,977,850.0093,242,000.00112,117,142.86710,000.00492,876,263.54
Accumulatedamortization
Openingbalance27,889,638.9668,273,563.72196,850.1619,782,823.3640,692,333.33710,000.00157,545,209.53
Provision474,270.369,058,311.54-2,472,852.942,802,928.58-14,808,363.42
Closingbalance28,363,909.3277,331,875.26196,850.1622,255,676.3043,495,261.91710,000.00172,353,572.95
Provisionforimpairment-------
Openingbalance-------
Provision-------
Closingbalance-------
Carryingamount
Atendoftheperiod33,719,234.6581,414,251.4565,780,999.8470,986,323.7068,621,880.95-320,522,690.59
Atbeginningoftheperiod34,193,505.0173,834,591.7065,780,999.8473,459,176.6471,424,809.53-318,693,082.72

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Goodwill

(1)Goodwillcost

30June2019

30June2019OpeningbalanceIncreaseDecreaseClosingbalance
SinopharmHolding(Jiangmen)MedicalCo.,Ltd.(“SinopharmJiangmen”)27,392,317.73--27,392,317.73
SinopharmHoldingShenzhenYanfengCo.,Ltd.(“SinopharmYanfeng”)16,868,644.87--16,868,644.87
SinopharmHoldingZhaoqingCo.,Ltd.(“SinopharmZhaoqing”)2,594,341.53--2,594,341.53
SinopharmHoldingShaoguanCo.,Ltd.(“SinopharmShaoguan”)1,686,496.80--1,686,496.80
SinopharmHoldingMeizhouCo.,Ltd.(“SinopharmMeizhou”)1,610,819.66--1,610,819.66
SinopharmHoldingHuizhouCo.,Ltd.(“SinopharmHuizhou”)923,184.67--923,184.67
SinopharmHoldingZhanjiangCo.,Ltd.(“SinopharmZhanjiang”)282,135.55--282,135.55
SinopharmHoldingDongguanCo.,Ltd.(“SinopharmDongguan”)1,499.02--1,499.02
SouthPharma&Trade2,755,680.62--2,755,680.62
FoshanNanhai88,877,850.51--88,877,850.51
SinopharmHoldingZhuhaiCo.,Ltd.(SinopharmZhuhai)6,772,561.47--6,772,561.47
SinopharmHoldingMaomingCo.,Ltd.(“SinopharmMaoming”)66,417.07--66,417.07
SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd.(“ForMeMedicines”)3,033,547.53--3,033,547.53
SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd22,666,179.77--22,666,179.77
SinopharmHoldingGuodaInnerMongoliaCo.,Ltd.70,485,777.00--70,485,777.00
SinopharmHebeiLerentangPharmaceuticalChainCo.,Ltd.29,482,149.57--29,482,149.57
SinopharmGuodaPharmacyJiangmenChainCo.,Ltd..77,350,000.00--77,350,000.00
SinopharmHoldingGuodaShanxiYiyuanChainCo.,Ltd.9,080,100.00--9,080,100.00
TaiyuanTongxinliGuodaPharmacyCo.,Ltd.2,818,647.85--2,818,647.85
SinopharmHoldingGuodaShanghaiPharmacyChainStoreCo.,Ltd.5,028,638.00--5,028,638.00
SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd..7,979,000.00--7,979,000.00
ZhejiangGuodaPharmacyCo.,Ltd.3,045,183.85--3,045,183.85
ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.storeacquisition.13,420,000.00--13,420,000.00
TaishanSinopharmHoldingGuodaQunkangPharmacyChainCo.,Ltd.26,826,120.55--26,826,120.55
FujianGuodaPharmacyChainStoreCo.,Ltd.1,567,250.76--1,567,250.76

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Goodwill(Continued)

(1)Goodwillcost(Continued)

30June2019(Continued)

30June2019(Continued)OpeningbalanceIncreaselDecreaseClosingbalance
SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.41,047,958.08--41,047,958.08
SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd.11,598,341.12--11,598,341.12
SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd.29,110,409.46--29,110,409.46
QuanzhouGuodaPharmacyChainStoreCo.,Ltd.41,298,622.59--41,298,622.59
SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd.41,165,574.64--41,165,574.64
ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd.65,025,000.00--65,025,000.00
XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd.15,866,680.00--15,866,680.00
LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd.107,275,095.74--107,275,095.74
SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd.19,405,450.23--19,405,450.23
BeijingGoldenElephantPharmacyMedicineChainCompanyLimited64,140,124.36--64,140,124.36
SinopharmHoldingGuodaBayannaoerCo.,Ltd.-13,494,000.00-13,494,000.00
858,547,800.6013,494,000.00-872,041,800.60

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Goodwill(Continued)

(2)ProvisionofimpairmentlossChangesinprovisionforimpairmentofgoodwillarepresentedasfollows:

2019

2019OpeningbalanceIncreaseDecreaseClosingbalance
QuanzhouGuodaPharmacyChainStoreCo.,Ltd.25,000,000.00--25,000,000.00

Themethodofgoodwillimpairmenttestingprocess,parameterandrecognitionofimpairmentloss:

Therecoverableamountofanassetgrouporagroupofassetgroupsisdeterminedonafinancialbudgetapprovedbymanagementcoveringafive-yearperiod.Thecashflowsbeyondthefive-yearperiodareextrapolatedusingtheinflationrate.Therecoverableamountoftheassetgroupandassetgroupcombinationiscalculatedusingthecashflowforecastingmethodbasedonthefive-yearbudgetapprovedbythemanagement.Managementdeterminesthebudgetarygrossmarginbasedonhistoricalexperienceandforecastsofmarketdevelopment,andusesapre-taxratethatreflectsthespecificriskoftherelevantassetgroupandassetgroupcombinationasthediscountrate.Theaboveassumptionsareusedtoanalyzetherecoverableamountofeachassetgroupandassetgroupcombinationwithinthebusinesssegment.

18.Long-termprepaidexpenses

2019OpeningbalanceAdditionsAmortizationOtherdecreaseClosingbalance
Fixedassetimprovementexpenditure249,458,261.8747,060,353.5542,594,066.571,166,437.43252,758,111.42
Acquisitionexpendituretoobtaintherighttooperate57,617,166.633,971,737.957,010,668.66-54,578,235.92
Others4,253,277.96760,218.611,002,537.3935,524.553,975,434.63
311,328,706.4651,792,310.1150,607,272.621,201,961.98311,311,781.97

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

19.Deferredtaxassets/liabilities

(a)

(a)Deferredtaxassetsbeforeoffseting
30June20191January2019
DeductibletemporarydifferencesDeferredtaxassetsDeductibletemporarydifferencesDeferredtaxassets
Provisionforimpairmentofassets79,547,128.0418,378,950.0168,153,222.0715,676,020.10
Deductibletaxloss34,968,710.288,677,091.1477,791,621.2019,311,837.06
DeferredIncome25,565,030.926,387,445.1730,188,142.137,547,758.26
Accruedpayroll13,435,720.262,963,493.0564,598,625.7415,656,015.32
Accruedexpenses132,416,395.9432,742,594.3494,108,769.3322,301,617.95
Others30,339,847.947,164,541.666,238,492.181,467,765.00
316,272,833.3876,314,115.37341,078,872.6581,961,013.69
(b)Deferredtaxliabilitiesbeforeoffseting
30June20191January2019
TaxabletemporarydifferencesDeferredtaxliabilitiesTaxabletemporarydifferencesDeferredtaxliabilities
Fairvalueadjustmentforbusinesscombinationnotinvolvingenterprisesundercommoncontrol221,963,869.6655,490,967.41227,900,345.3956,975,086.34
Changesinfairvalue87,167,599.5321,791,899.7275,366,942.9917,676,879.28
309,131,469.1977,282,867.13303,267,288.3874,651,965.62
(c)Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachother:
30June20191January2019
Deferredtaxassets/liabilities-NetTemporarydifferencesafterset-offDeferredtaxassets/liabilities-NetTemporarydifferencesafterset-off
Deferredtaxassets10,896,608.3665,417,507.017,046,803.7474,914,209.95
Deferredtaxliabilities10,896,608.3666,386,258.777,046,803.7467,605,161.88

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

19.Deferredtaxassets/liabilities(Continued)

(d)

(d)Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognizedasdeferredtaxassetsarepresentedasfollows:
30June20191January2019
Deductibletemporarydifferences932,951.171,480,000.00
Deductibleloss(Note)30,894,876.4229,391,422.33
31,827,827.5930,871,422.33

Theaforesaidunrecognizeddeductiblelosseswilldue:

30June2019

30June20191January2019
20196,106,580.002,864,062.85
20201,636,825.764,725,707.87
20218,256,680.692,563,056.08
20228,358,197.507,261,117.97
20236,536,592.4711,977,477.56
30,894,876.4229,391,422.33

(Note)Assomesubsidiariesarestillatalossandit’suncertainthatthosesubsidiariescanobtainenoughtaxableincometooffsetagainstthelossinthefuture.SotheGroupdonotrecognisedeferredtaxassetswhichcamefromthedeductiblelossofRMB30,894,876.42.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

20.Othernon-currentassets

30June2019

30June20191January2019
CarryingbalanceImpairmentCarryingamountCarryingbalanceImpairmentCarryingamount
Physicalassetsreservespecificallyauthorized44,621,093.48-44,621,093.4847,576,273.75-47,576,273.75
Prepaymentforprojectandequipment22,323,493.28-22,323,493.2810,592,645.36-10,592,645.36
66,944,586.76-66,944,586.7658,168,919.11-58,168,919.11

21.Short-termborrowings

30June20191January2019
Creditborrowings3,079,560,758.242,427,639,275.32
Discountednotes211,316,836.99170,013,427.11
3,290,877,595.232,597,652,702.43

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

22.Notespayable

30June2019

30June20191January2019
Commercialacceptancenotes23,896,465.3013,843,479.73
Bankacceptancenotes3,515,198,797.043,402,912,202.07
3,539,095,262.343,416,755,681.80

At30June2019,balanceofnotespayableatmaturitywasRMB0.00.(31December2018:RMB

0.00).

23.Accountspayable

30June20191January2019
Tradepayables8,088,697,602.946,468,535,961.17

At30June2019,thetotalamountofaccountspayableagedoveroneyearwasRMB496,134,298.59(31December2018:RMB467,525,486.03).

24.Contractliabilities

30June20191January2019
Advancesfromcustomers--
Contractliabilities239,739,020.90255,590,612.37
239,739,020.90255,590,612.37

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

25.Employeebenefitspayable

2019

2019AtbeginningoftheyearIncreaseDecreaseAtendoftheyear
Short-termemployeebenefits(a)226,152,409.27927,118,638.711,001,730,616.89151,540,431.09
Post-employmentbenefits(definedcontributionplan)(b)5,248,146.9993,025,372.3688,529,751.619,743,767.74
Terminationbenefits(c)465,851.14841,185.81872,153.00434,883.95
231,866,407.401,020,985,196.881,091,132,521.50161,719,082.78
(a)Short-termemployeebenefits
2019AtbeginningofyearIncreaseDecreaseAtendofyear
Salaries,bonuses,allowancesandgrants210,723,820.21810,503,119.74884,415,868.48136,811,071.47
Staffwelfare1,750,750.8923,556,598.4724,295,552.241,011,797.12
Socialsecuritycontribution1,622,271.1247,247,265.7346,045,452.792,824,084.06
Incl:Medicalinsurance1,362,150.5942,318,821.5541,333,544.102,347,428.04
Workinjuryinsurance30,755.691,427,211.061,394,836.5663,130.19
Maternityinsurance229,364.843,501,233.123,317,072.13413,525.83
Housingfunds1,063,993.0230,889,248.2830,946,436.951,006,804.35
Laborunionfundsandemployeeeducationfunds9,956,772.1213,593,217.1615,024,466.508,525,522.78
Othershort-termbenefits1,034,801.911,329,189.331,002,839.931,361,151.31
Total226,152,409.27927,118,638.711,001,730,616.89151,540,431.09
(b)Definedcontributionplan
2019AtbeginningofyearIncreaseDecreaseAtendofyear
Basicpensioninsurance1,755,160.1688,463,119.3386,167,938.134,050,341.36
Unemploymentinsurance122,350.652,587,235.092,359,308.38350,277.36
Contributiontopensionfund3,370,636.181,975,017.942,505.105,343,149.02
5,248,146.9993,025,372.3688,529,751.619,743,767.74

Note:Forthehalfyearof2019,theGroupprovidedotherterminationbenefitsforseveringlaborrelationsofRMB153,286.50.Forthehalfyearof2018,theGroupprovidedotherterminationbenefitsforseveringlaborrelationsofRMB69,075.00.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

26.Taxpayable

30June2019

30June20191January2019
Value-addedtax61,484,212.4090,356,534.09
CorporateIncometaxes121,174,058.74115,226,820.39
Individualincometaxpayable4,518,825.003,954,139.24
Citymaintenanceandconstructionsurtax4,994,194.586,854,426.95
Educationalsurchargepayable3,593,664.024,937,147.17
Waterconservancyfundpayable5,523,161.325,421,280.43
Stampduty4,098,721.215,854,355.91
Propertytax1,407,180.811,123,276.37
Landusetaxpayable241,952.24209,179.29
Others8,543,031.518,043,252.88
215,579,001.83241,980,412.72

27.Otherpayables

30June20191January2019
Interestpayable29,012,444.9321,906,660.63
Dividendpayable6,389,320.966,389,320.96
Otherpayables1,439,124,932.541,511,140,990.34
1,474,526,698.431,539,436,971.93

(1)Interestpayable

30June20191January2019
Long-termloans’(Withperiodicpaymentsofprincipalandinterestcharges)interest35,440.2138,984.25
Interestonshort-termborrowings10,692,042.5110,973,397.39
Tradereceivables’factoringinterest18,284,962.2110,894,278.99
29,012,444.9321,906,660.63

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

27.Otherpayables(Continued)

(2)Dividendpayable

30June2019

30June20191January2019
ShanghaiFosunPharmaceutical(Group)Co.,Ltd.4,835,511.584,835,511.58
ZhenfangZhang1,389,639.311,389,639.31
MeiluoPharmaceuticalCo.,Ltd.164,170.07164,170.07
6,389,320.966,389,320.96

Asat30June2019,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid(31December2018:nil).

(3)Otherpayables

30June20191January2019
Payablesforfactoringprograms550,002,940.12724,272,060.30
Deposit389,299,163.12334,821,325.72
Accruedsellinganddistributionexpenses174,163,680.40131,493,977.43
Payablesarisingfromacquisitionofsubsidiaries77,082,980.0078,702,980.00
Payablesforconstructioninprogressandequipment58,230,154.8879,380,923.99
Payablesforrentals40,290,060.9429,298,835.46
Payablestoindividuals28,207,673.3822,730,210.22
Tempararyloan15,800,000.0015,800,000.00
Payablestorelatedparties15,581,702.815,436,532.76
Payablesforlandtransferpayments12,597,500.0018,071,000.00
Equitysubscription10,000,000.0010,000,000.00
Collectionofothers9,067,830.667,525,379.59
Others58,801,246.2353,607,764.87
1,439,124,932.541,511,140,990.34

At30June2019,significantotherpayablesover1yearare:

AmountpayableReasonforoutstanding
Non-controllinginterestsinSouthPharmaceutialForeignTradeFuYuequn54,722,980.00Paymentconditionsnotmet

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

andother11naturalpersons

andother11naturalpersons
ShenzhenNo.1ConstructionEngineeringCo.,Ltd.8,605,625.20Paymentconditionsnotmet
LiuzhouShengliPharmacy5,986,288.12Paymentconditionsnotmet

27.Otherpayables(Continued)TheamountarisingfromtheacquisitionofsubsidiariesismainlyforthesharesacquisitionofminoritiesofSouthPharmaceutialForeignTrade.At30June2019,otherpayablesduewithin1yearamountingtoRMB137,518,449.47(31December2018:RMB136,286,760.04)aremainlyconsistedofconstructioncostpayable,companyborrowingspayable,depositsandetc.

28.Non-currentliabilitiesduewithin1year

69,314,893.32

30June2019

30June20191January2019
Long-termborrowingsduewithin1year31,600,000.00-
Leaseliabilitiesduewithin1year526,696,784.75495,132,751.96
558,296,784.75495,132,751.96

29.Othercurrentliabilities

30June20191January2019
OutputVATtoberecognized445,493.48292,465.75

30.Long-termborrowings

30June20191January2019
Creditborrowings(a)-31,600,000.00
-31,600,000.00
(a)At30June2019,theGrouphasnoentrustedborrowings(31December2018:

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

RMB31,600,000.00).TheGroup'slong-termborrowingsareloanslentbytheChinaNationalPharmaceuticalGroupCorporation.Theborrowingsduewithinoneyearhavebeenreclassifiedtonon-currentliabilitiesduewithinoneyear.

RMB31,600,000.00).TheGroup'slong-termborrowingsareloanslentbytheChinaNationalPharmaceuticalGroupCorporation.Theborrowingsduewithinoneyearhavebeenreclassifiedtonon-currentliabilitiesduewithinoneyear.At30June2019,theannualinterestrateofabove-mentionedborrowingswas4.04%(31December2018:4.04%).

31.Leaseliabilities

At30June2019,theannualinterestrateofabove-mentionedborrowingswas4.04%(31December2018:4.04%).30June2019

30June20191January2019
leasepayables1,713,157,908.711,599,733,049.76
Less::leasepayablesduewithin1year(526,696,784.75)(495,132,751.96)
1,186,461,123.961,104,600,297.80

32.Long-termpayables

30June20191January2019
Payableforspecificprojects800,000.00800,000.00

Payableforspecificprojects

AtbeginningofyearIncreaseDecreaseAtendofyearReasonsofderredincome
Specialfundsgrantedbygovernment800,000.00--800,000.00Grantedbythegovernment

33.Long-termemployeebenefitspayable

30June20191January2019
Earlyretirementbenefitspayable1,915,000.002,050,000.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

34.Deferredincome

2019

2019OpeningbalanceIncreaseDecreaseClosingbalanceReasonsofderredincome
Governmentgrants91,491,170.4079,184.442,847,536.6688,722,818.18Governmentgrants
91,491,170.4079,184.442,847,536.6688,722,818.18

Asat30June2019,deferredincomefromgovernmentgrantsareasfollow:

Governmentgrants

program

GovernmentgrantsprogramOpeningbalanceAdditionintheyearAmountincludedinnon-operatingincomeintheyearAmountincludedinotherincomeintheyearClosingbalanceAssetrelated/incomerelated
ResettlementCompensation(i)75,555,441.17-1,349,204.28-74,206,236.89Assetrelated
GuangxiLogisticsProject6,453,426.58--230,346.066,223,080.52Assetrelated
GuangzhouLogisticsstandardizationproject2,815,012.55--273,123.422,541,889.13Assetrelated
Acomprehensiveexperimentalmodernserviceindustrysubsidies1,500,000.00--150,000.001,350,000.00Assetrelated
SharedLogisticsCenter252,058.35--9,400.20242,658.15Assetrelated
Otherprojects4,915,231.7579,184.44835,462.704,158,953.49Asset/Incomerelated
91,491,170.4079,184.441,349,204.281498332.3888,722,818.18

DuetotheimplementationofurbanplanningforoldtownreconstructioninNanning,theoperatingcenterofGuangxiLogisticswhichwaslocatedinLongtengRoadDistrict,NanningCity,wastobereconstructedinanotherplace.AccordingtotheagreementsignedbetweenGuangxiLogisticsandtherealestatedeveloper,GuangxiLogisticswouldobtainacompensationofRMB120,250,000.00,includingcashofRMB50,000,000.00andpropertyinconstructingequalingavalueofRMB70,250,000.00.CashcompensationofRMB50,000,000.00wasreceivedinMay2012.Inyear2015,constructionpropertieswithavalueofRMB70,250,000.00werebuiltanddelivered,andhadbeenrecognizedasinvestmentproperties(NoteV(12)).Thecompensationrelatingthecapitalexpenditureinthereconstructionofthenewlogisticcenterinanotherplace,amountingtoRMB93.32millionwasrecognizedasdeferredrevenue,andwouldbeamortizedandrecognizedintheincomestatementwithintheexpectedusefullivesusingthestraightlinemethod(NoteV(50)),andtheothercashcompensation.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

35.Othernon-currentliabilities

30June2019

30June20191January2019
Contractliabilities53,375.33-
Governmentalmedicalreservefunds45,427,343.3145,427,343.31
Productpromotionaccumulativepointsprogramme22,359,977.4523,813,832.87
67,840,696.0969,241,176.18

36.Sharecapital

CertainmedicalreservesfundswerereceivedbytheGroupfromthePRCgovernmentandlocalgovernmentforpurchasingmedicalproducts(includingmedicines)requiredtorespondtoseriousdisasters,epidemicsandotheremergencies.Movementduringthecurrentyear

Movementduringthecurrentyear
2019AtbeginningofyearIssueofnewshareOthersTotalAtendofyear
Shares428,126,983.00428,126,983.00

37.Capitalsurplus

2019AtbeginningofyearIncreaseDecreaseAtendofyear
Sharepremium2,118,174,787.27--2,118,174,787.27
Significantreorganization1,173,907,763.19--1,173,907,763.19
Otherchangesinequityofinvestedunitsunderequitymethod(94,032,514.34)42,424,747.00-(51,607,767.34)
Transferofcapitalsurplusrecognizedunderthepreviousaccountingsystem2,650,322.00--2,650,322.00
Businesscombinationinvolvingenterprisesundercommoncontrol----
Others1,120,284,623.39--1,120,284,623.39
4,320,984,981.5142,424,747.00-4,363,409,728.51

Capitalsurplus-othersincreasedbyRMB42,424,747.00whenotherchangesinequityofModernPharmaceuticalresultedinadjustmentoflong-termequityinvestmentandanincreaseofcapitalsurplusbyRMB42,424,747.00.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

38.Surplusreserve

Atbeginningofyear

AtbeginningofyearIncreaseDecreaseAtendofyear
Surplusreserve214,063,491.50--214,063,491.50
214,063,491.50--214,063,491.50

39.Retainedearnings

30June20191January2019
Retainedearningsattheendoftheprioryear6,655,257,147.275,572,952,806.39
Retainedearningsatbeginningofyearafterretrospectiveadjustmentandrestatement6,655,257,147.275,572,952,806.39
Add:Netprofitattributabletotheparent650,833,360.401,210,742,435.78
Cashdividendspayableforordinaryshares171,250,793.20128,438,094.90
Others-Businesscombinationinvolvingenterprisesundercommoncontrol--
Retainedearningsatendofyear7,134,839,714.476,655,257,147.27

40.Operatingrevenueandcost

Forthesixmonthsended30June2019Forthesixmonthsended30June2018
RevenueCostRevenueCost
Principaloperations25,040,619,938.9822,398,327,532.4320,606,027,974.5718,355,002,752.42
Otheroperations187,527,438.4517,192,420.44172,397,627.6512,640,971.42
25,228,147,377.4322,415,519,952.8720,778,425,602.2218,367,643,723.84

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

40.Operatingrevenueandcost(Continued)

Classification

ClassificationHeadquartersDistributionRetailInter-segmentoffsetsTotal
Byproduct
Include:
Medicines-17,951,760,565.225,957,083,892.95(361,359,523.83)23,547,484,934.34
Medicalappliance-1,345,459,501.68--1,345,459,501.68
Other4,747,314.83179,640,288.21150,815,338.37-335,202,941.41
Byarea
Include:
Domesticsales4,747,314.8319,476,860,355.116,107,899,231.32(361,359,523.83)25,228,147,377.43
Overseassales-----
Bycontractduration
Include:
Confirmrevenueatacertainpointintime-19,297,220,066.905,957,083,892.95(361,359,523.83)24,892,944,436.02
Confirmrevenueatacertaintimeperiod4,747,314.83179,640,288.21150,815,338.37-335,202,941.41
Total4,747,314.8319,476,860,355.116,107,899,231.32(361,359,523.83)25,228,147,377.43

InformationabouttheGroup’sobligationsisasfollows:

TheGrouprecognisesrevenuewhengoodsaredelivered,andwillreceivepaymentwithin30-210days.TheGrouprecognisesrevenueafterprovidingservices,andwillreceivepaymentwithin30-210days.TheexpectedrevenuerecognitiontimefortheGroup’scontractobligationsaboveisinyear2019.Informationrelatedtothesalespriceallocatedtotheremainingobligations:

Theamountofincomecorrespondingtotheobligationthathasbeensignedbuthasnotbeenfulfilledorhasnotyetfulfilledis239,739,020.90yuan,ofwhich239,739,020.90yuanisexpectedtoberecognizedin2019.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

41.Taxandsurcharges

Forthesixmonthended

June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018
Citymaintenanceandconstructiontax24,015,771.7022,352,680.77
Educationalsurcharge17,051,137.4016,112,625.97
Propertytax3,182,784.833,075,856.41
Landtax310,374.16245,070.74
Vehicleandvesselusetax71,880.9598,966.20
Stampduty17,406,047.5914,200,426.96
Others101,229.81534,900.20
62,139,226.4456,620,527.25

42.Sellingexpenses

Forthesixmonthended30June2019Forthesixmonthended30June2018
Employeespayrollandwelfarebenefits751,390,265.97659,176,548.69
Rentalexpenses85,603,520.94322,805,173.33
Transportationcharges42,481,965.6633,086,676.72
Depreciationexpenses313,982,576.0326,125,384.59
Promotionandmarketingexpenses21,130,375.6318,454,328.54
Officeallowances19,914,617.6216,283,197.98
Entertainmentexpenses11,670,679.4611,357,532.12
Storageexpenses15,216,365.9714,866,861.14
Travelallowances3,017,736.943,415,890.36
Marketdevelopmentfees3,713,897.193,255,084.76
Conferenceexpenses1,196,924.881,654,991.62
Others214,013,574.44163,107,086.22
1,483,332,500.731,273,588,756.07

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

43.Administrativeexpenses

Forthesixmonthended

30June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018
Employeespayrollandwelfarebenefits265,705,706.25248,803,724.84
Rentalexpenses9,155,207.1418,347,245.83
Depreciationexpenses16,813,385.9012,732,380.45
Officeallowances11,183,599.3111,877,499.56
Amortizationofintangibleassets9,779,109.118,272,613.85
Entertainmentexpenses5,822,240.836,428,775.38
Amortizationoflong-termdeferredexpenses5,532,926.204,518,905.10
Vehiclemanagementexpenses3,630,572.814,435,451.82
Travelallowances3,801,532.994,323,679.13
Utilities3,094,494.342,713,666.76
Taxations1,847,691.622,241,415.79
Conferenceexpenses2,586,044.562,059,875.35
Repairingfees2,507,057.401,624,550.73
Others35,757,125.6723,440,279.19
377,216,694.13351,820,063.78

44.Financecosts

Forthesixmonthended30June2019Forthesixmonthended30June2018
Interestexpenses169,529,472.3783,356,367.18
Less:Interestincome(60,630,036.91)(23,082,233.56)
Cashdiscount(23,190,566.63)(21,542,580.44)
Exchangesloss/(gain)(389,882.62)329,665.40
Others18,776,268.0318,480,325.74
104,095,254.2457,541,544.32

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

45.Otherincomes

Forthesixmonthended

30June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018
Governmentgrantsrelatedtodailyoperatingactivities14,974,471.8710,589,212.57
Taxationservicechargerefund16,447.15741,097.45
14,990,919.0211,330,310.02

46.Investmentincome

Forthesixmonthended30June2019Forthesixmonthended30June2018
Investmentincomefromlong-termequityinvestmentsundertheequitymethod169,142,289.99162,662,271.35
Dividendincomefromotherequityinstrumentsinvestedduringtheholdingperiod-31,500.00
169,142,289.99162,693,771.35

47.Impairmentlossonfinancialassets

Forthesixmonthended30June2019Forthesixmonthended30June2018
Impairmentlossoftradereceivables(1,666,431.98)(1,172,127.53)
Impairmentlossofotherreceivables(9,767,669.15)2,198,829.77
(11,434,101.13)1,026,702.24

48.Impairmentlosses

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Forthesixmonthended

30June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018
Inventoryprovision(125,554.34)(508,849.26)
(125,554.34)(508,849.26)

49.Gainondisposalofassets

Forthesixmonthended30June2019Forthesixmonthended30June2018
Gainondisposaloffixedassets(29,725.44)389,144.70
Gainondisposalofintangibleassets-3,892,019.91
(29,725.44)4,281,164.61

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

50.Non-operatingincome

Forthesixmonth

ended30June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018Amountclassifiedasnon-recurringprofitorloss
Governmentgrants1,349,204.281,349,204.281,349,204.28
Gainfromwritingofftheunnecessarypayment306,191.872,898,512.62306,191.87
Gainondisposalofnon-currentassets195,336.002,303.00195,336.00
Others1,816,438.101,248,931.211,816,438.10
3,667,170.255,498,951.113,667,170.25

Governmentgrantsincludedincurrentperiodprofitorloss:

ProjectNameGovernmentDepartmentReasonsforGovernmentgrantsTypeAffectstheprofitorlossofthisyearSpecialsubsidyForthesixmonthsended30June2019Forthesixmonthsended30June2018Relatedtoasset/income
ResettlementCompensationofNo.7ZhongyaoRoadNanningEconomic&TechnologicalDevelopmentAreaManagementCommitteeSubsidySubsidiesfromlocalgovernmentforsupportpoliciessuchasattractinginvestmentYesNo1,349,204.281,349,204.28Assetrelated

Allnon-operatingincomewaswhollyclassifiedasnon-recurringprofitorlossforthesixmonthended

51.Non-operatingexpenses

Forthesixmonthended30June2019Forthesixmonthended30June2018Amountclassifiedasnon-recurringprofitorloss
Donationexpenses-60,000.00-
Penaltyexpenses273,498.601,194,388.28273,498.60
Lossondisposalofanon-currentasset161,292.3428,525.01161,292.34
Others1,283,474.62514,379.511,283,474.62
1,718,265.561,797,292.801,718,265.56

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

52.Incometaxes

Forthesixmonthended

30June2019

Forthesixmonthended30June2019Forthesixmonthended30June2018
Currentincometax183,966,126.67163,102,979.73
Deferredincometax8,277,799.831,383,754.59
192,243,926.50164,486,734.32

Thereconciliationfromincometaxcalculatedbasedonapplicabletaxratesandtotalprofit

presentedintheconsolidatedfinancialstatementstotheincometaxesislistedbelow:

Forthesixmonthended

30June2019

Forthesixmonthended

30June2019Totalprofit

Totalprofit960,336,481.81
Incometaxescalculatedatapplicabletaxrates240,084,120.45
Lowertaxratesenactedbylocalauthorities(13,265,455.52)
Adjustmentofincometaxexpenseofpreviousyears(4,574,884.17)
Incomenotsubjecttotax(47,995,671.32)
Expensesnotdeductiblefortax17,747,992.12
Deductiblelossonunconfirmeddeferredtaxassetsatendoftheperiod493,231.44
Impactofthetemporarydiscrepancyonunconfirmeddeductibledeferredtaxassetsatendoftheperiod(255,667.65)
Impactofthetemporarydiscrepancyonunconfirmeddeductibledeferredtaxassetsoftheperviousyear10,261.15
Incometax192,243,926.50

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

53.Notestoitemsinthecashflowstatement

(a)

(a)Cashreceiptsrelatedtootheroperatingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Governmentgrantsexcepttaxreturn16,340,011.4910,345,223.64
Rentincome37,910,253.8137,793,728.50
Receivedoperationalrestrictedbankdeposits123,321,063.7088,156,799.79
Interestincome60,227,651.1522,642,258.30
Others57,683,231.05153,046,777.37
295,482,211.20311,984,787.60
(b)Cashpaidrelatingtootheroperatingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Rentalexpenses94,758,728.08341,152,419.16
Entertainmentexpenses17,492,920.2917,786,307.50
Transportationcharges42,481,965.6633,086,676.72
Travelexpenses6,819,269.937,739,569.49
Storageexpenses15,216,365.9714,866,861.14
Officeexpenses31,098,216.9328,160,697.54
Advertisingexpenses21,130,375.6318,454,328.54
Others265,893,688.82377,222,116.67
494,891,531.31838,468,976.76
(c)Cashreceivedrelatingtootherinvestingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Receivedentrustedloanpayments44,000,000.00
ReceivedfundsofacquiringSinopharmHuadu4,680,000.00
Others86,145.15
-48,766,145.15

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

53.Notestoitemsincashflowstatement(Continued)

(d)

(d)Cashpaidrelatingtootherinvestingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
EntrustedborrowingspaidtoZhijunSuzhou-43,999,800.00
Others1,093,125.00-
1,093,125.0043,999,800.00
(e)Cashreceivedrelatingtootherfinancingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Financingrestrictedmonetaryfundsreceived3,512,659.7179,825,164.60
Others-3,920,000.00
3,512,659.7183,745,164.60
(f)Cashpaymentsrelatingtootherfinancingactivities
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Bankfactoringpayable174,269,120.1864,002,739.23
Leasepayment299,173,550.25-
Purchaseofequityofminorityshareholders-54,722,980.00
Others36,719,497.31-
510,162,167.74118,725,719.23

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

54.Supplementaryinformationofcashflowstatement

(a)

(a)Reconciliationofnetprofittocashflowsfromoperatingactivities
Forthesixmonthended30June2019Forthesixmonthended30June2018
Netprofit768,092,555.31689,249,009.91
Adjustments:Provisionforassetimpairment11,559,655.47(506,814.18)
Depreciationoffixedassetsandinvestmentproperties48,917,181.7238,366,126.42
Amortizationofintangibleassets14,808,363.4311,832,914.62
Amortizationoflong-termprepaidexpenses50,607,272.6241,638,297.62
Gainsondisposaloffixedassets,andothernon-currentassets131,566.90(4,254,942.60)
Financecosts159,266,607.8682,449,854.36
Investmentincome(169,142,289.99)(162,693,771.35)
Increaseindeferredtaxassets5,674,224.553,402,744.73
(Increase)/decreaseindeferredtaxliabilities2,603,575.28(2,018,990.14)
(Increase)/decreaseininventories(492,796,771.41)(463,324,117.97)
Increaseinoperatingreceivablesitems(1,983,255,213.04)(1,298,602,834.11)
(Decrease)/increaseinoperatingpayableitems2,463,112,034.511,170,553,090.12
Others284,178,818.14119,267,141.77
Netcashgeneratedfromoperatingactivities1,163,757,581.35225,357,709.20

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

54.Supplementaryinformationofcashflowstatement(Continued)

(b)

(b)Movementofcash
Forthesixmonthsended30June2019Forthesixmonthsended30June2018
Cashattheendoftheperiod7,768,974,878.913,592,715,787.37
Less:Cashatthebeginningoftheperiod7,632,117,020.773,673,498,691.48
Netincreaseincash136,857,858.14(80,782,904.11)
(c)Cash
30June201931December2018
Cash7,768,974,878.917,632,117,020.77
Incl:Cashonhand3,415,085.255,587,191.18
Bankdepositsondemand7,765,559,793.667,626,529,829.59
Endingbanlancecashandcashequivalent7,768,974,878.917,632,117,020.77

55.Notestochangesinshareholders’equityThecurrentcapitalreserve-“Other”increasedbyRMB42,424,747.00whenotherchangesinequityofShyndecPharmaresultedinadjustmentoflong-termequityinvestmentandanincreaseofcapitalsurplusamountingtoRMB42,424,747.00.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

56.Assetsunderrestrictedownershiporrightofuse

Bookvalue

BookvalueReasons
Cashandcashequivalents317,353,629.58Depositsofbankacceptancenotes,depostisforletterofcreditandothers.
Notesreceivables211,316,836.99notesreceivablediscountedbutnotdue

Note1:At30June2019,theGrouphaddepositsofbankacceptancenotesandletterofcreditdepositamountingtoRMB317,353,629.58(31December2018:RMB457,664,283.79)(NoteV(1));thedepositofbankacceptancebillisRMB317,047,823.58,theletterofcreditdepositisRMB305,806.00.Note2:At30June2019,theGrouphadnotesreceivableofRMB211,316,836.99,discountedbutnotdue(31December2018:RMB170,013,427.11)(NoteV(2)).Note3:At30June2019,theGrouphadnotesreceivableofRMB0,endorsedbutnotdue(31December2018:

301,416.00)(NoteV(2)).

57.Governmentgrants

528,670,466.57Type

TypeAmountAccounttitleIncludedincurrentperiodprofitorloss:
2017KeyenterprisedevelopmentawardfundsofLiwanDistrict,Guangzhou3,166,380.00Otherincomes3,166,380.00
2018HundredsofenterprisesrewardfundsofChanchengDistrict,FoshanCity310,824.00Otherincomes310,824.00
Thirdpartydrugmodernlogisticspublicinformationplatform9,400.20Otherincomes9,400.20
2013Guangzhousubsidiesforheadquarters264,841.74Otherincomes264,841.74
Guangzhouspecialsubsidyfortheconstructionofresearchanddevelopmentinstitutions44,705.94Otherincomes44,705.94
Guangzhouspecialsubsidyforcommerceandtradecirculationindustry241,440.44Otherincomes241,440.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Governmentgrants(Continued)

LiwanDistrictSinopharmSupplyChainEngineeringTechnologyResearchandDevelopmentCenter

LiwanDistrictSinopharmSupplyChainEngineeringTechnologyResearchandDevelopmentCenter11,598.84Otherincomes11,598.84
MedicalSmartSupplyChainE-commerceServicePlatformTechnologyProject21,884.52Otherincomes21,884.52
Inputtax10%deduction406,083.20Otherincomes/Deferredincome369,265.69
Officerentsubsidy102,415.76Otherincomes102,415.76
Centralizedfinancialsubsidyfundforcomprehensivepilotworkofmodernserviceindustry150,000.00Otherincomes150,000.00
GuangdongProvincialScienceandTechnologyBureau'sgrantforthe"SmartSupplyChainProject"17,011.65Otherincomes17,011.65
GuangzhouLogisticsStandardizationPilotProject273,123.42Otherincomes273,123.42
Industrialapplicationprojectofpharmaceuticalcoldchainpatentincubator12,499.98Otherincomes12,499.98
KeyenterprisessupportrewardsofLiwanDistrict,Guangzhou60,800.00Otherincomes60,800.00
Employmentsubsidy619,679.48Otherincomes619,679.48
Statisticalworksubsidy10,000.00Otherincomes10,000.00
Nanninglogisticsprojectconstructionsupportfund93,203.22Otherincomes93,203.22
Businessbureauaward50,000.00Otherincomes50,000.00
Businessenterprisesupportreward300,000.00Otherincomes300,000.00
Modernlogisticscoldchainintegrationmonitoringplatformproject30,000.00Otherincomes30,000.00
Medicalwarehousingcenterlogisticsinformationplatformproject71,428.56Otherincomes71,428.56
Modernpharmaceuticallogisticsremotelocationconstructionproject35,714.28Otherincomes35,714.28
Industrialtransformationandupgradingspecialfunds179,112.66Otherincomes179,112.66

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Governmentgrants(Continued)

Quarterlygrowthawardforspecialfundsforindustrialdevelopment

Quarterlygrowthawardforspecialfundsforindustrialdevelopment150,000.00Otherincomes150,000.00
Subsidiesfortheemploymentofdisabledpersons18,257.35Otherincomes18,257.35
Futiandistrictmodernserviceindustryquarterlygrowthaward300,000.00Otherincomes300,000.00
Specialfundsforbusinessdevelopment50,000.00Otherincomes50,000.00
2018financebureausubsidyofPutuodistrict1,430,000.00Otherincomes1,430,000.00
KeyenterprisessupportfundsofPutuodistrict483,143.05Otherincomes483,143.05
FutianDistrictIndustrialDevelopmentSpecialFundAward700,000.00Otherincomes700,000.00
GulouDistrictTaxSubsidy130,000.00Otherincomes130,000.00
Small-scaletaxpayersareexemptfromVAT2,310,639.30Otherincomes2,310,639.30
TianjinHepingDistrictBusinessCommitteeAward5,600.00Otherincomes5,600.00
ShenyangCityServiceDevelopmentSpecialFundSubsidy2,000,000.00Otherincomes2,000,000.00
taxreturnformDalian682,221.79Otherincomes682,221.79
WeidongDistrictTaxReward100,000.00Otherincomes100,000.00
YangpuDistrictSMEDevelopmentSpecialFund169,000.00Otherincomes169,000.00
Taxsystemservicefeerefund280.00Otherincomes280.00
Subsidyofelectricvehicle39,619.95Deferredincome
ResettlementCompensationofNo.7ZhongyuRoad1,349,204.28Non-operatingincome1,349,204.28
ShenzhenFutianDistrictDevelopmentServiceCenterDistrictIndustrialDevelopmentSpecialFundLoanDiscount133,300.00Financialexpenses133,300.00

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation

1.Changesinscopeofconsolidationforotherreasons

Establishmentofsubsidiaries:

30June2019

30June2019Forthesixmonthsended30June2019
NetassetsNetprofits
SinopharmHoldingGuodaBayannaoerCo.,Ltd.(a)20,071,010.0971,010.09
InnerMongoliaGuodaPharmaceuticalCo.,Ltd.(b)19,435,858.10(564,141.90)
SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.(c)21,362,985.84162,985.84

a.On18November2018,theGroupandHohhotManshengyuanTradingCo.,Ltd.setupSinopharm

HoldingGuodaBayannaoerCo.,Ltd.registeredcapitalsubscribedRMB16,000,000.00andRMB4,000,000.00respctively.InJanuary2019,theGroupandminorityshareholderscompletedthecapitalcontribution.TheGroupholds80%ofitsequityafterthecompletion。b.On22October2018,TheGroupwholly-ownedInnerMongoliaGuodaPharmaceuticalCo.,Ltd.,

witharegisteredcapitalofRMB20million.,andcompletedcapitalcontributioninFebruary2019.c.On30April2019,theGroupandChaoyangBoweiConsultingServiceCo.,Ltd.setupSinopharm

HoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.,registeredcapitalsubscribedRMB

19,380,000.00andRMB18,620,000.00respctively.InJune2019,theGroupandtheminority

shareholderscontributedRMB6,528,000.00andRMB6,272,000.00respectively.TheGroup

holds51%ofitsequityafterthecompletion。

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities

1.

1.Interestsinsubsidiaries
(1)ThecompositionoftheGroup:
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmGuilinGuilinGuilinCommercial-100%Establishment
SinopharmBaiseBaiseBaiseCommercial-100%Establishment
SinopharmHoldingZhongshanCo.,Ltd.(hereafterreferedas"SinopharmZhongshan")ZhongshanZhongshanCommercial-100%Establishment
SinopharmGuigangGuigangGuigangCommercial-100%Establishment
SinopharmBeihaiBeihaiBeihaiCommercial-100%Establishment
SinopharmHoldingGuangzhouMedicalTreatmentGuangzhouGuangzhouCommercial-51%Establishment
SinopharmHoldingShenzhenJianminCo.,Ltd.(hereafterreferedas"SinopharmJianmin")ShenzhenShenzhenCommercial100%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd.(hereafterreferdas“SinopharmTraditional&HerbalMedicine")ShenzhenShenzhenCommercial100%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenLogisticsCo.,Ltd.(hereafterreferedas“ShenzhenLogistics")ShenzhenShenzhenServices100%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangzhouCo.,Ltd.(hereafterreferedas“SinopharmGuangzhou")GuangzhouGuangzhouCommercial100%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongHengxingCo.,Ltd.(hereafterreferedas“SinopharmHengxing")GuangzhouGuangzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmYulinYulinYulinCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmLiuzhouLiuzhouLiuzhouCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangdongHuixinInvestmentCo.,Ltd.(“HuixinInvestment”)GuangzhouGuangzhouService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingFoshanCo.,Ltd.(“SinopharmFoshan")FoshanFoshanCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongYuexingCo.,Ltd.(“SinopharmYuexing”)GuangzhouGuangzhouCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongLogisticsCo.,Ltd.(“GuangdongLogistic”)GuangzhouGuangzhouService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuangxiNanningNanningCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiLogisticNanningNanningService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmWuzhouWuzhouWuzhouCommercial99.90%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmDongguanDongguanDongguanCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmZhanjiangZhanjiangZhanjiangCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmYanfengShenzhenShenzhenCommercial51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmMeizhouMeizhouMeizhouCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHuizhouHuizhouHuizhouCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmZhaoqingZhaoqingZhaoqingCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmJiangmen(a)JiangmenJiangmenCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmShaoguanShaoguanShaoguanCommercial-70%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingShantouCo.,Ltd.(hereafterreferedas"SinopharmShantou”)ShantouShantouCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
FoshanNanhaiMedicineCo.,Ltd.FoshanFoshanCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiUptodate&SpecialMedicinesCo.,Ltd.FoshanFoshanCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiMedicineCo.,Ltd.FoshanFoshanCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
GuangdongUptodate&SpecialMedicinesGuangzhouGuangzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.GuangzhouGuangzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingZhuhaiCo.,Ltd.((hereafterreferdas“SinopharmZhuhai")ZhuhaiZhuhaiCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingMaomingCo.,Ltd.((hereafterreferdas“SinopharmMaoming")MaomingMaomingCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGZMedicalTechnologyCo.,Ltd.GuangzhouGuangzhouCommercial-51%Establishment
SinopharmHoldingGZMedicalSupplyChainServiceCo.,Ltd.GuangzhouGuangzhouCommercial-51%Establishment
SinopharmHoldingHeyuanCo.,Ltd.((hereafterreferdas“SinopharmHeyuan")HeyuanHeyuanCommercial-70%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGuodaPharmacyCo.,Ltd.ShanghaiShanghaiCommercial60%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,Ltd.ShanghaiShanghaiCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGuodaPharmacyChainStoreCo.,Ltd.BeijingBeijingCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
TianjinGuodaPharmacyChainStoreCo.,Ltd.TianjinTianjinCommercial-80%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiGuodaPharmacyConsultingChainStoreCo.,Ltd.NanningNanningCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyGuangdongCo.,Ltd.ShenzhenShenzhenCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuodaPharmacyGuangxiChainCo.,Ltd.LiuzhouLiuzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangGuodaPharmacyCo.,Ltd.HangzhouHangzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd.YangzhouYangzhouCommercial-93.68%Businesscombinationsinvolvingentitiesundercommoncontrol
NingxiaGuodaPharmacyChainStoreCo.,Ltd.YinchuanYinchuanCommercial-70%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd.NanjingNanjingCommercial-60%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd.LinyiLinyiCommercial-55%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.(b)ShenyangShenyangCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
FujianGuodaPharmacyChainStoreCo.,Ltd.(c)XiamenXiamenCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
AnhuiGuodaPharmacyChainStoreCo.,Ltd.HefeiHefeiCommercial-60%Businesscombinationsinvolvingentitiesundercommoncontrol
QuanzhouGuodaPharmacyChainStoreCo.,Ltd.QuanzhouQuanzhouCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd.TaiyuanTaiyuanCommercial-85%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd.HengyangHengyangCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd.LiyangLiyangCommercial-80%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd.PingdingshanPingdingshanCommercial-60%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaInnerMengdiaPharmacyChainStoreCo.,Ltd.HohhotHohhotCommercial-96.7%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd.ShijiazhuangShijiazhuangCommercial-60%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuodaPharmacyJiangmenChainCo.,Ltd.JiangmenJiangmenCommercial-65%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd.TaiyuanTaiyuanCommercial-80%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingXinjiangNew&SpecialMedicinesChainStoreCo.,Ltd.UrumqiUrumqiCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd.ShanghaiShanghaiCommercial-97%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd.(Formerly“ShanghaiForMeYiXingPharmacyChainStoreCo.,Ltd.”)ShanghaiShanghaiCommercial-99.76%Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGoldenElephantPharmacyMedicineChainCompanyLimitedBeijingBeijingCommercial-53.13%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiTongfengPharmacyLogisticsCo.,Ltd.TaiyuanTaiyuanCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ChangzhiGuodaWanminPharmacyChainStoreCo.,Ltd.ChangzhiChangzhiCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanminClinicManagementChainCo.,Ltd.TaiyuanTaiyuanMedicalservices-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangIntlmedicinePharmacyDongshanCo.,Ltd.HangzhouHangzhouCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaDongshengPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmGuodaDrugStore(Shenzhen)ChainCo.,Ltd.ShenzhenShenzhenCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyGuangzhouChainCo.,Ltd.GuangzhouGuangzhouCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodongChineseTraditionalMedicineClinicCo.,Ltd.ShanghaiShanghaiMedicalclinic-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaDongxinPharmacyChainStoreCo.,Ltd.ShanghaiShanghaiCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiYutaitangChineseTraditionalMedicineClinicCo.,Ltd.ShanghaiShanghaiCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SanheLiyangGoldenElephantPharmacyCo.,Ltd.LangfangLangfangCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd.XiaoyiXiaoyiCommercial-70%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyHulunBuirCo.,Ltd.HulunBuirHulunBuirCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
ForMeXuhuiShanghaiShanghaiCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingUlanqabCo.,Ltd.UlanqabUlanqabCommercial-60%Establishment
SinopharmGuodaPharmacyQinhuangdaoChainCo.,Ltd.QinhuangdaoQinhuangdaoCommercial-51%Businesscombinationsinvolvingentitiesundercommoncontrol
TaishanSinopharmHoldingGuodaQunkangPharmacyChainStoreCo.,Ltd.TaishanTaishanCommercial-70%Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGoldenElephantFuxingTechnologyCo.,Ltd.BeijingBeijingCommercial-80%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmLerentangShijiazhuangPharmaceuticalShijiazhuangShijiazhuangCommercial-100%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaDrugStoreManchuriaCo.,Ltd.ManchuriaManchuriaCommercial-51%Establishment
SinopharmGuodaDrugStoreAnshanChainCo.,Ltd.AnshanAnshanCommercial-51%Establishment
SinopharmHoldingGuodaYongshengDrugStore(Shanghai)Co.,Ltd.ShanghaiShanghaiCommercial-55%Establishment
SanheLixinGoldenElephantDrugstoreCo.,Ltd.LangfangLangfangCommercial-100%Establishment
SinopharmHoldingFoshanMedicalConsumablesSupplyChainCo.,Ltd.FoshanFoshanCommercial-70%Establishment
SinopharmHoldingMedicalSupplyChainService(Guangxi)Co.,Ltd.NanningNanningCommercial-30.06%Establishment
ShanghaiGuodaHaohaiPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-51%Establishment
SinopharmHoldingBaiyiPharmacyGuangxiCo.,Ltd.NanningNanningCommercial-51%Establishment
SinopharmHoldingHezhouCo.,Ltd.HezhouHezhouCommercial-100%Establishment

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmHoldingNationalPharmacyZhengzhouChainCo.,Ltd.ZhengzhouZhengzhouCommercial-60%Establishment
ShanghaiGuodaRuijingPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-55%Establishment
FujianGuodaPharmaceuticalCo.,Ltd.XiamenXiamenCommercial-100%Establishment
SinopharmHoldingQinzhouCo.,Ltd.QinzhouQinzhouCommercial-100%Establishment
SinopharmHoldingHechiCo.,Ltd.HechiHechiCommercial-100%Establishment
SinopharmHoldingGuangzhouHuaduCo.,Ltd.GuangzhouGuangzhouCommercial-70%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.(d)TaiyuanTaiyuanCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
TaiyuanTongxinliGuodaPharmacyCo.,Ltd.TaiyuanTaiyuanCommercial-100%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGuodaBayannaoerCo.,Ltd.(e)aBayannaoeraBayannaoerCommercial-80%Establishment
InnerMongoliaGuodaPharmaceuticalCo.,Ltd.(f)HohhotHohhotCommercial-100%Establishment
SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.(g)ChaoyangChaoyangCommercial-51%Establishment
VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued)

a.On13March2019,SinopharmJiangmenwasrenamedas“SinopharmHolding(Jiangmen)Co.,Ltd.”.b.SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltdincreasedtheregisteredcapitalby

RMB32,000,000.00withundistributedprofits.Afterthecapitalincreased,theregisteredcapitalofShenyangGuodaincreasedfromRMB18,000,000.00toRMB50,000,000.00,andtheshareholdingratiooftheoriginalshareholdersdidnotchange.c.On17April2019,theshareholderofFujianGuodaPharmacyChainStoreCo.,Ltd.ChangedfromSinopharm

HoldingGuodaPharmacyCo.,Ltd.toFujianGuodaPharmaceuticalCo.,Ltd.byinternaltransfer.The100%equityofFujianGuodaChainheldbytheoriginalshareholderSinopharmHoldingGuodaPharmacyCo.,Ltd.wastransferredtoFujianGuodaPharmaceuticalCo.,Ltd.d.On1February2019,ShanxiZhongaoPharmaceuticalCo.,Ltd.wasrenamedas“SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.”.e.On5November2018,theGroupandHohhotManshengyuanTradingCo.,Ltd.setupSinopharmHolding

GuodaBayannaoerCo.,Ltd.registeredcapitalsubscribedRMB16,000,000.00andRMB4,000,000.00respctively.InJanuary2019,theGroupandminorityshareholderscompletedthecapitalcontribution.TheGroupholds80%ofitsequityafterthecompletion.f.On22October2018,theGroupwholly-ownedInnerMongoliaGuodaPharmaceuticalCo.,Ltd.,witha

registeredcapitalofRMB20million.,andcompletedcapitalcontributioninFebruary2019.g.On30April2019,theGroupandChaoyangBoweiConsultingServiceCo.,Ltd.setupSinopharmHolding

GuodaYongxingtangChain(Chaoyang)Co.,Ltd.,registeredcapitalsubscribedRMB19,380,000.00andRMB

18,620,000.00respctively.InJune2019,theGroupandminorityshareholderscontributedRMB6,528,000.00

andRMB6,272,000.00respectively.TheGroupholds51%ofitsequityafterthecompletion。

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

1.Interestsinsubsidiaries(Continued)

(1)Importantnon-whollyownedsubsidiary

Subsidiaries

SubsidiariesMinorityshareholdingratioProfitorlossattributabletominorityshareholdersinthecurrentperiodDispatchofdividendstominorityshareholdersinthecurrentperiodMinorityshareholders'equity
SinopharmHoldingGuodaPharmacyCo.,Ltd.40.00%60,082,149.761,743,715,207.60

(2)Keyfinancialinformationofimportantnon-whollyownedsubsidiaries

Subsidiaries30June201931December2018
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilities
SinopharmHoldingGuodaPharmacyCo.,Ltd.7,637,323,815.743,210,489,588.5810,847,813,404.324,642,692,689.211,027,988,905.695,670,681,594.907,467,662,962.461,567,755,313.419,035,418,275.873,994,471,884.6264,729,132.204,059,201,016.82
SubsidiariesForthesixmonthsended30June2019Forthesixmonthsended30June2018
OperatingrevenueNetprofitTotalcomprehensiveincomeCashflowfromoperatingactivitiesOperatingrevenueNetprofitTotalcomprehensiveincomeCashflowfromoperatingactivities
SinopharmHoldingGuodaPharmacyCo.,Ltd.6,107,899,231.32186,189,865.75186,189,865.75545,455,740.775,143,601,636.87172,985,004.03172,985,004.0377,797,706.43

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates

Principalplaceofbusiness

PrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholding(%)Accounting
DirectIndirect
Associates
ShenzhenMainLuckPharmaceuticalCo.,Ltd.(hereafterreferdas"MainLuckPharmaceutical")ShenzhenShenzhenManufacturing35.19%-Equity
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.SuzhouSuzhouManufacturing33.00%-Equity
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.ShenzhenShenzhenManufacturing49.00%-Equity
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.ShenzhenShenzhenCommercial49.00%-Equity
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.ShenzhenShenzhenManufacturing49.00%-Equity
ShanghaiShyndecPharmaceuticalCo.,Ltd.(hereafterreferdas“ShyndecPharmaceutical”)ShanghaiShanghaiManufacturing16.28%-Equity
ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.(hereafterreferedas“ShanghaiDingqun”)ShanghaiShanghaiBusinessserviceindustry2.53%-Equity
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.ShanghaiShanghaiCommercial-26.00%Equity
ShanghaiLiyiPharmacyCo.,LtdShanghaiShanghaiCommercial-35.00%Equity
SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.GuangzhouGuangzhouCommercial-29.00%Equity

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates(Continued)

Principalplaceofbusiness

PrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholding(%)Accounting
DirectIndirect
Associates
DongyuanaccordpharmaceuticalchainCo.,Ltd.HeyuanHeyuanCommercial-45.00%Equity
GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.(hereafterreferedas“GuangdongJianhui”)ZhanjiangZhanjiangPublic-Private-Partnership-10.00%Equity
ShanghaiRenbeiPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-30.00%Equity

Explicationoftheshareholdingratioofajointventurediffersfromtheproportionofvotingrights:

Thebasisthatholdslessthan20%ofthevotingrightsbuthasasignificantimpact,orholds20%ormoreofthevotingrightsbuthasnosignificantimpact:

(1)ThehighestauthorityofShanghaiDingqunistheshareholders'meeting,andtheshareholders

exercisetheirvotingrightsaccordingtotheproportionofcapitalcontribution.Atthesametime,ShanghaiDingqunhassetupaboardofdirectorswhichisresponsiblefortheshareholders'meeting.Theboardconsistsofthreemembers,ofwhichthecompanyhasappointedonedirector.Thevoteontheboard'sresolutionisonevoteperperson,andalltheboardresolutionsshouldbepassedbymorethanhalfofalldirectors.

(2)ThehighestauthorityofGuangdongJianhuiistheshareholders'meeting,andtheshareholders

exercisetheirvotingrightsaccordingtotheproportionofthecapitalcontribution.Atthesametime,GuangdongJianhuisetupaboardofdirectorswhichisresponsiblefortheshareholders'meeting.Theboardconsistsoffivemembers,ofwhichthecompanyhasappointedonedirector.Thevoteontheresolutionoftheboardofdirectorsisonevoteperperson.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

3.Summarisedfinancialinformationofsignificantassociate

30June2019/Forthesixmonths

ended30June2019

30June2019/Forthesixmonthsended30June20191January2019/Forthesixmonthsended30June2018
ShanghaiShyndecPharmaceuticalCo.,Ltd.ShanghaiShyndecPharmaceuticalCo.,Ltd.
Currentassets10,502,009,120.548,470,191,403.19
Non-currentassets7,879,885,410.947,993,673,189.70
Totalassets18,381,894,531.4816,463,864,592.89
Currentliabilities7,111,735,949.126,568,480,863.79
Non-currentliabilities2,323,172,902.371,452,099,931.65
Totalliabilities9,434,908,851.498,020,580,795.44
Non-controllinginterests1,616,396,132.891,637,029,480.44
Shareholders’equityattributabletoshareholdersoftheparent7,330,589,547.106,806,254,317.01
Portionofnetassetscalculatedbyshareholdingratio1,189,353,675.161,098,566,852.51
Carryingvalueofequityinvestmentinjointventures1,189,353,675.161,098,566,852.51
Operatingrevenue6,255,380,073.905,853,255,169.05
Netprofit525,814,658.05575,258,204.58
Totalcomprehensiveincome525,814,658.05575,258,204.58
Dividendsreceivedfromjointventuresthisperiod16,896,427.808,641,853.20
30June2019/Forthesixmonthsended30June20191January2019/Forthesixmonthsended30June2018
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.
Currentassets1,288,625,706.651,111,485,098.64
Non-currentassets302,186,939.74298,610,691.12
Totalassets1,590,812,646.391,410,095,789.76
Currentliabilities725,207,812.63659,931,220.07
Non-currentliabilities20,932,797.2224,953,965.28
Totalliabilities746,140,609.85684,885,185.35
Non-controllinginterests--
Shareholders’equityattributabletoshareholdersoftheparent844,672,036.54725,210,604.41
Portionofnetassetscalculatedbyshareholdingratio413,889,297.90355,353,196.15
Carryingvalueofequityinvestmentinjointventures413,889,297.90355,353,196.15
Operatingrevenue1,060,889,164.97979,292,309.92
Netprofit119,461,432.13125,252,164.85
Totalcomprehensiveincome119,461,432.13125,252,164.85
Dividendsreceivedfromjointventuresthisperiod-58,111,254.57

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments

1.Classificationoffinancialinstruments

Thecarryingamountsofeachcategoryoffinancialinstrumentsasatthedateoffinancialpositionareasfollows:

30June2019

Financialassets

FinancialassetsFinancialassetsatfairvaluethroughprofitorlossFinancialassetsatamortisedcostFinancialassetsatfairvaluethroughothercomprehensiveincomeTotal
MandatorilyrequiredMandatorilyrequiredDesignation
Cashandbankbalances-8,086,328,508.49--8,086,328,508.49
Notesreceivable-790,664,828.26--790,664,828.26
Accountsreceivable-11,826,440,731.59--11,826,440,731.59
Receivablefinancing--325,439,580.18-325,439,580.18
Otherreceivables-654,086,387.85--654,086,387.85
Othernon-currentfinancialassets140,000,000.00---140,000,000.00
Investmentinotherequityinstrument---13,685,760.0013,685,760.00
140,000,000.0021,357,520,456.19325,439,580.1813,685,760.0021,836,645,796.37

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

1.Classificationoffinancialinstruments(Continued)

30June2019

Financialliabilities

FinancialliabilitiesFinancialliabilitiesatamortisedcost
Short-termborrowings3,290,877,595.23
Notespayable3,539,095,262.34
Accountspayable8,088,697,602.94
Otherpayables1,474,526,698.43
Non-currentliabilitiesduewithinoneyear558,296,784.75

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

1.Classificationoffinancialinstruments(Continued)

Thecarryingamountsofeachcategoryoffinancialinstrumentsasatthedateoffinancialpositionareasfollows:

1January2019

Financialassets

FinancialassetsFinancialassetsatfairvaluethroughprofitorlossFinancialassetsatamortisedcostFinancialassetsatfairvaluethroughothercomprehensiveincomeTotal
MandatorilyrequiredMandatorilyrequiredDesignation
Cashandcashequivalents-8,089,781,304.56--8,089,781,304.56
Notesreceivable-789,536,654.23--789,536,654.23
Accountsreceivable-9,336,861,647.92--9,336,861,647.92
Receivablefinancing--567,775,275.40567,775,275.40
Otherreceivables-643,493,359.32--643,493,359.32
Othernon-currentfinancialassets140,000,000.00---140,000,000.00
Investmentinotherequityinstrument---13,685,760.0013,685,760.00
140,000,000.0018,859,672,966.03567,775,275.4013,685,760.0019,581,134,001.43

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

1.Classificationoffinancialinstruments(Continued)

1January2019

2.TransferoffinancialassetsTransferredfinancialassetsthatarenotderecognizedintheirentiretyAsat30June2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettletradepayablesduetosuchsuppliersofRMB5,000,000.00(31December2018:RMB301,416.00).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At30June2019,thecarryingvaluethereofwasRMB211,316,836.99(31December2018:RMB170,013,427.11).Intheopinionofthedirectors,theGrouphasretainedthesubstantialrisksandrewards,whichincludedefaultrisksrelatingtosuchEndorsedBills,andaccordingly,itcontinuedtorecognizethefullcarryingamountsoftheEndorsedBillsandtheassociatedtradepayablessettled.SubsequenttotheEndorsement,theGroupdidnotretainanyrightsoftheuseoftheEndorsedBills,includingthesales,transferorpledgeoftheEndorsedBillstoanyotherthirdparties.Asat30June2019,thecarryingvalueoftradepayablessettledbytheGrouptotalledRMB216,316,836.99(31December2018:RMB170,314,843.11).

Financialliabilities

FinancialliabilitiesFinancialliabilitiesatamortisedcost
Short-termborrowings2,597,652,702.43
Notespayable3,416,755,681.80
Accountspayable6,468,535,961.17
Otherpayables1,539,436,971.93
Non-currentliabilitiesduewithinoneyear5,861,324.37
Long-termborrowings31,600,000.00
Long-termpayables3,763,978.52

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

2.Transferoffinancialassets(Continued)TransferredfinancialassetsthatarederecognizedintheirentiretyinwhichcontinuinginvolvementexistsAsat30June2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettletradepayablesduetosuchsuppliersofRMB665,479,757.50(31December2018:RMB568,118,674.84).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At30June2019,thecarryingvaluethereofwasRMB879,092,916.00(31December2018:RMB705,143,849.35).Thederecognizedbillshadamaturityof1to12monthsattheendofthereportingperiod.InaccordancewiththeLawofNegotiableInstruments,theholdersofthederecognizedbillshavearightofrecourseagainsttheGroupiftheacceptingbanksdefault(the“ContinuingInvolvement”).Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsrelatingtothederecognizedbills.Accordingly,ithasderecognizedthefullcarryingamountsofthederecognizedbillsandtheassociatedtradepayables.ThemaximumexposuretolossfromtheGroup'sContinuingInvolvementinthederecognizedbillsandtheundiscountedcashflowstorepurchasethesederecognizedbillsisequaltotheircarryingamounts.Intheopinionofthedirectors,thefairvaluesoftheGroup’sContinuingInvolvementinthederecognizedbillsarenotsignificant.Duringthesixmonthsended30June2019,theGrouphasnotrecognizedanygainorlossonthedateoftransfer.NogainorlosswasrecognizedfromderecognizedfinancialassetsinwhichtheContinuingInvolvementexists,bothduringtheyearorcumulatively.Duringthesixmonthsended30June2019,theGrouphasnotrecognizedanygainorlossonthedateoftransferofthederecognizedbills.NogainsorlosseswererecognizedfromtheContinuingInvolvement,bothduringtheyearorcumulatively.Aspartofitsnormalbusiness,theGroupenteredintoantradereceivablefactoringarrangement(the“Arrangement”)withoutrecourseandtransferredcertaintradereceivablestoabank.Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsunderthearrangement.Accordingly,ithasderecognizedthefullcarryingamountsoftheassociatedtradereceivables.TheoriginalcarryingvalueofthederecognizedtradereceivablestransferredundertheArrangementthathavenotbeensettledasat30June2019amountedtoRMB1,299,923,031.76(31December2018:

RMB827,745,640.19).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

3.RisksoffinancialinstrumentsTheGroup'sprincipalfinancialinstrumentscomprisebankborrowingsandcashandshorttermdeposits.ThemainpurposeofthesefinancialinstrumentsistoraisefinancefortheGroup'soperations.TheGrouphasvariousotherfinancialassetsandliabilitiessuchastradereceivablesandtradepayables,whicharisedirectlyfromitsoperations.TheCompany’sboardofdirectorsareresponsibleforplanningandestablishingtheriskmanagementframeworkoftheGroup,formulatingriskmanagementpoliciesandrelatedguidelinesoftheGroupandsupervisingtheimplementationofriskmanagementmeasures.TheGrouphasalreadydevelopedriskmanagementpoliciestoidentifyandanalysetherisksfacedbytheGroup,whichhaveclearlyidentifiedspecificrisks,coveringalotofaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheGroupregularlyassessesthemarketenvironmentandchangesintheGroup’sbusinessactivitiestodeterminewhetherornottoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheGroupshallbeconductedbytheoperationsandmanagementdepartmentaccordingtothepolicyapprovedbytheCompany’smanagement.Theoperationsandmanagementdepartmentidentifies,evaluatesandavoidsrelatedrisksbymeansofclosecooperationwithotherbusinessunitsoftheGroup.Toavoidtheriskconcentratingonasingleindustry,aspecificareaoraspecificcounterparty,theGroupspreadsfinancialinstrumentsriskwithdiversifiedinvestmentsandbusinessportfolio.CreditriskTheGrouponlytradeswithrecognisedandcreditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivablebalancesaremonitoredonanongoingbasisandtheGroup’sexposuretobaddebtsisnotsignificant.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecialapprovalofthecreditcontroldepartmentoftheGroup.Sincecashandbankbalances,bankacceptancebillsreceivableandderivativefinancialinstrumentsareplacedinthewell-establishedbankswithhighcreditratings,thecreditriskofthesefinancialinstrumentsislower.TheotherfinancialinstrumentsoftheGroupincludecashandbankandotherreceivables.Thecreditriskofthesefinancialassetsresultfromdefaultofcounterparty.Themaximumcreditexposureequalstothebookvalueoftheseinstruments.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)TheGroupappliesstandardcreditclauseforsaleofgoodstocustomers,atthesametimepurchaseothergoodsfromsomeofthemajorcustomers.Disclosuresregardingmaximumcreditexposureontradereceivablesareasfollows:

30June2019

30June20191January2019
Tradereceivablebookvalue12,991,845,283.9210,733,695,012.29
Less:Baddebtprovision(49,300,143.89)(39,521,434.74)
Carryingvalue12,942,545,140.0310,694,173,577.55

TheGrouphasagreementwithcustomersstatingthatonlyinthecircumstancesofdefaultinpaymentfromthecustomer,cantheGroupusethepayablebalanceofthesamecustomertooffsetreceivables.Therefore,ateverybalancesheetdate,themaximumcreditriskexposureoftheGroupisthetotalamountoftradereceivableslessbaddebtprovision.Sincepayablescannotbeoffsetwithinthebalancesheet,themaximumcreditriskexposureiswithoutdeductingthecustomerpayablebalance.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Creditrisksaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.TherearenosignificantconcentrationsofcreditriskwithintheGroupasthecustomerbasesoftheGroup’stradereceivablesarewidelydispersedindifferentsectorsandindustries.TheGroupdoesnotholdanycollateralorothercreditenhancementsoveritstradereceivablebalances.DeterminationofsignificantincreaseincreditriskAteachreportingdate,thegroupdetermineswhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition.Whendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort.Thisincludesbothquantitativeandqualitativeinformationanalysis,basedontheGroup’shistoricalexperienceandinformedcreditassessmentandincludingforward-lookinginformation.Inordertodeterminethechangeofexpecteddefaultriskduringthefinancialinstrument’sentirelifetime,theGroupcomparesthedefaultriskoffinancialinstrumentonthebalancesheetdateandontheinitialrecognitiondatebaseonasinglefinancialinstrumentorfinancialinstrumentportfoliowithsimilardefaultrisk.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)TheGroupdeterminesthatthecreditrisktoffinancialassetshassignificantlyincreasedwhenoneormorequantitativeorqualitativecriteriaaremet:

-quantitativecriteriaaremainlyprobabilityofdefaultincreasingmorethanagiven%sinceinitial

recognition;-qualitativecriteriaaremainlysignificantdetrimentalchangesintheborrower’soperatingor

financialconditionsandearlywarningcustomerlists.-Theuppercriteriais30daystheborrowersdefault.Definitionofcredit-impairedfinancialassetsInassessingwhetherafinancialassetiscredit-impaired,theGroupconsidersbothquantitativeandqualitativeinformationinlinewithinternalcreditriskmanagement.TheGroupassesseswhetherafinancialassetiscredit-impairedbyconsideringthefollowingfactors:

-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontractsuchasadefaultorpastdueevent;-thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtotheborrower’s

financialdifficulty,havinggrantedtotheborrowerconcession(s)thatthelender(s)wouldnot

otherwiseconsider;-itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;-thedisappearanceofanactivemarketforsecuritybecauseoffinancialdifficulties;-financialassetspurchasedorsourcedatlargediscountsindicatingthatcreditlosseshave

occurred.Theimpairmentoffinancialassetsmaynotbenecessarilyduetoasingledisparateevent.Thecombinedeffectsofmultipleeventsmayresultinfinancialassetsbeingcredit-impaired.ParameteroftheexpectedcreditlossmodelBasedonwhetherthereisasignificantincreaseincreditriskandwhetherthefinancialassetsarecredit-impaired,theGrouprecognizesimpairmentallowancefordifferentassetsusingeither12-monthexpectedcreditlossesorlifetimeexpectedcreditlosses.ThemeasurementoftheECLmodelisafunctionoftheprobabilityofdefault,thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)andtheexposureatdefault.TheGroupestablishesthemodelbyconsideringthequantitativeanalysisofhistoricalstatisticssuchascounterpartyrating,theguaranteemethod,collateralcategory,repaymentmethod,andalsoforward-lookinginformation.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)Definitions:

-Theprobabilityofdefaultistheprobabilitythatthedebtorwillnotbeabletomeetitsrepayment

obligationswithinthefollowing12monthsorthroughouttheremainingduration.Toreflectthemacro-economicenvironmentconditions,theGroup’sassessmentoftheprobabilityofdefaultisbasedonthecalculationoftheECLmodeladjustedbyforward-lookinginformation.-Thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)referstotheGroup's

expectationoftheextentofthelossofdefaultriskexposure.Thelossgivendefaultvariesdependingonthetypeofcounterparty,thewayandpriorityofrecourse,andthetypeofcollateral.Thelossgivendefaultisthepercentageoftheriskexposurelossatthetimeofdefault,calculatedonthebasisofthenext12monthsortheentireduration.-TheexposureatdefaultreferstotheamountthattheGroupshouldberepaidintheeventofdefaultinthenext12monthsorthroughouttheremainingperiod.Forward-lookinginformationTheassessmentofasignificantincreaseincreditriskandthecalculationoftheECLbothinvolveforward-lookinginformation.TheGrouprecognizeskeyeconomicratiosthatinfluencecreditriskandECLbyhistoricaldataanalysis.Asat30June2019,therewasnoevidenceofsignificantincreaseincreditrisk(31December2018:nil).CurrencyriskTheGroup’smajoroperationalactivitiesarecarriedoutinMainlandChinaandamajorityofthetransactionsaredenominatedinRMB.TheGroupisexposedtoforeignexchangeriskarisingfromtherecognizedassetsandliabilities,andfuturetransactionsdenominatedinforeigncurrencies,primarilywithrespecttoUnitedStatesdollarsandHongKongdollars.TheGroup’sfinancedepartmentatitsheadquartersisresponsibleformonitoringtheamountsofassetsandliabilities,andtransactionsdenominatedinforeigncurrencies.TheGroupmayconsiderenteringintoforwardexchangecontractsorcurrencyswapcontractstomitigatetheforeignexchangerisk.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIl.Risksrelatedtofinancialinstruments(Continued)

4.CapitalmanagementTheCompany’sprimaryobjectiveformanagingcapitalistoensurethatitmaintainsastrongcreditratingandhealthycapitalratioinordertosupportitsbusiness,maximizeshareholders’valueandbenefitrelatedparties.Managementalsoaimstomaintainacapitalstructurethatensuresthelowestcostofcapitalavailabletotheentity.Managementadjuststhecapitalstructurethroughadjustingdividendpaymentstoshareholders,returningcapitaltoshareholders,issuingnewsharesorsellingassetstoreducedebts.TheGroup’stotalcapitalisthetotalshareholders’equityinthebalancesheet.TheGroupdoesnotadoptanassetratioasacompulsoryfactortogoverncapitalinvestment.ThegearingratiosoftheGroupasat30June2019and1January2019wereasfollows:

30June2019

30June20191January2019
Gearingratio56.59%54.44%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue

1.Assetsandliabilitiesatfairvalue30June2019:

Inputappliedinthemeasurementoffairvalue

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Receivablefinancing-325,439,580.18-325,439,580.18
Investmentinotherequityinstrument--13,685,760.00-13,685,760.00
Othernon-currentfinancialassets--140,000,000.00140,000,000.00
-339,125,340.18140,000,000.00479,125,340.18

1January2019:

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Receivablefinancing-567,775,275.40-567,775,275.40
Investmentinotherequityinstrument--13,685,760.00-13,685,760.00
Othernon-currentfinancialassets--140,000,000.00140,000,000.00
-581,461,035.40140,000,000.00721,461,035.40

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue

2.Assetsandliabilitiesdisclosedatfairvalue1January2019:

Inputappliedinthemeasurementoffairvalue

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Long-termborrowings-31,600,000.00-31,600,000.00

3.Estimationoffairvalue

ThefollowingarebookvalueandfairvalueoffinancialinstrumentsoftheGroupexcludingthosethathasimmaterialdifferentinbookvalueandfairvalue:

30June20191January201931December2018
BookvalueFairvalueBookvalueFairvalueBookvalueFairvalue
Financialliabilities
Long-termborrowings--31,600,000.0031,600,000.0031,600,000.0031,600,000.00

Managementhasassessedthatthefairvaluesofcashandcashequivalents,notesreceivable,tradereceivables,otherreceivables,short-termborrowings,notespayable,tradepayables,otherpayables,non-currentliabilitiesduewithinoneyearandothercurrentassetsandliabilities,andcurrentliabilitiesapproximatetotheircarryingamountslargelyduetotheshortremainingmaturitiesoftheseinstruments.ThefinancialcontrolleroftheGrouptakestheresponsibilitytoformulatepoliciesandproceduresrelatedtofinancialinstrumentfairvaluemeasurementsanddirectlyreportstotheCFOandtheauditcommittee.Oneachbalancesheetdate,thefinancialdepartmentanalysesthevariationofthefairvuleoffinancialinstrumentsanddeterminestheinputsapplicabletovaluation.ThevaluationisrequiredtobeapprovedbytheCFO.Thefairvaluesoffinancialassetsandliabilitiesaretheamountatwhichtheinstrumentcouldbeexchangedordebtscouldbesettledinanarm’slengthtransactionbetweenknowledgeableandwillingparties,otherthaninaforcedorliquidationsale.Thefollowingmethodsandassumptionswereusedtoestimatethefairvalues.Thefairvaluesofshort-termandlong-termborrowings,andlong-termpayableshavebeencalculatedbydiscountingtheexpectedfuturecashflowsusingmarketratesofreturncurrentlyavailableforotherfinancialinstrumentswithsimilarterms,creditriskandremainingmaturities.Asat30June2019,theGroup’sownnon-performanceriskforshort-termandlong-termborrowingswasassessedtobeinsignificant.Foranequityinstrumentoflistedentities,themarketpriceisusedtodeterminefairvalue.Foranequityinstrumentofnon-listedentities,themarketcomparablecompanymodelisusedtoestimatefairvalue.TheGroupbelievesthatestimatedfairvaluebythevaluationmethodisrational,andalsothemostsufficientvalueatthebalancesheetdate.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue

4.UnobservableinputsAfinancialinstrumentthatismeasuredatfairvaluewithmeasurementoflevel3isinsensitivetoreasonablefluctuationoftheunobservableinputs.

5.TransfersbetweenlevelsoffairvaluemeasurementAt30June2019and1January2019,therewerenotransfersoffairvaluemeasurementsbetweenLevel1andLevel2.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

1.Parent

Registeredaddress

RegisteredaddressNatureofbusinessSharecapital(RMB’0,000)ProportionofownershipinterestintheCompanyProportionofvotingpowerintheCompany
SinopharmGroupShanghaiIndustrialinvestmentholding,trusteeofapharmaceuticalenterprise,assetsreorganization,distributionandretailofmedicinesandpharmaceuticalproducts,etc.297,165.6256.06%56.06%

TheultimatecontrollingpartyoftheCompanyisCNPGC.

2.SubsidiariesRefertoNoteVII(1)fordetailsofsubsidiaries.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

3.Associates

RefertoNoteVII(2)fordetailsofassociates.

Companyname

CompanynameRelatedpartyrelationships
ShenzhenMainLuckPharmaceuticalCo.,Ltd.Associate
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.Associate
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.Associate
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.Associate
ShyndecPharmaceuticalAssociate
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.Associate
ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.Associate
SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd.Associate
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.Associate
ShanghaiLiyiDrugStoreCo.,LtdAssociate
DongyuanaccordpharmaceuticalchainCo.,Ltd.Associate
ShanghaiRenbeiPharmacyCo.,Ltd.Associate
GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.Associate

4.Otherrelatedparties

CompanynameRelatedpartyrelationships
SinopharmHoldingShanxiCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupSouthwestMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTianjinCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShenyangCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingDalianCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJinzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupShanxiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHubeiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiJinchengCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupMedicineLogisticCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHunanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYongzhouCo.,Ltd.ControlledbySinopharmGroup
ChinaNationalMedicinesCo.,Ltd.ControlledbySinopharmGroup

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
SinopharmGroupGuoruiMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmProspectDentech(Beijing)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingBeijingCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.ControlledbySinopharmGroup
SinopharmholdingsBeijinghuahongco.,LtdControlledbySinopharmGroup
SinopharmHoldingZhejiangCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingSubMarketingCenterCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHenanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingPingdingshanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingAnhuiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingFuzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShandongCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLunanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingRizhaoCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJinanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingDezhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLiaochengCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHainanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingFujianCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingPutianCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingQuanzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXiamenCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNingxiaCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXinyuCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingInnerMongoliaCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTongliaoCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingUlanqabCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingBayannaoerCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHulunBuirCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingOrdosCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJilinCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChongqingCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJiangsuCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYangzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.ControlledbySinopharmGroup

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
SinopharmHoldingTaizhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingSuzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingWuxiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLianyungangCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChangzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYanchengCo.,Ltd.ControlledbySinopharmGroup
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHeilongjiangCo.,Ltd.ControlledbySinopharmGroup
SinopharmLe-Ren-TangMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.ControlledbySinopharmGroup
ShanghaiMerroPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingDalianHechengCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChangshaCo.,Ltd.ControlledbySinopharmGroup
PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.ControlledbySinopharmGroup
SinopharmGroupAnhuiMedicalDevicesCo.,Ltd.ControlledbySinopharmGroup
ChinaMedicalEquipmentShandongCo.,Ltd.ControlledbySinopharmGroup
SinopharmLiaoningMedicalEquipmentCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiInstrumentBranchCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTianjinDistributionCenterCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingZhangzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmSichuanPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingGansuCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJiangxiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChengduCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimitedControlledbySinopharmGroup
SinopharmXinxiangChainStoreCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingYunnanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNantongCo.,Ltd.ControlledbySinopharmGroup
SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd.ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHuaianCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupShanghaiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
ChinaNationalPharmaceuticalLogisticsCo.,Ltd.ControlledbySinopharmGroup
XinjiangBaitongPropertyServiceCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranchControlledbySinopharmGroup
ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd.ControlledbySinopharmGroup
GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHolding(Hubei)BasePharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingShanxiLvliangCo.,Ltd.ControlledbySinopharmGroup
GuoyaoLerentangHebeiMedicalDeviceSupplyChainManagementCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingGuizhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangTangshanMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNanpingNewforceCo.,Ltd.ControlledbySinopharmGroup
SinopharmHebeiMedicalInstrumentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJinhuaCo.,Ltd.ControlledbySinopharmGroup
ShanghaiTongyuInformationTechnologyCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTianjinNorthMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHubeiHongyuanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJiaozuoCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingWuhuCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHongheCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChuxiongCo.,Ltd.ControlledbySinopharmGroup
YuxiSinopharmMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHainanHongyiCo.,Ltd.ControlledbySinopharmGroup
SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLongyanCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNingdeCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingAnshunCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingTongrenCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingZunyiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJilinChainStoreCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingSipingCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingWenzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXuzhouCo.,Ltd.ControlledbySinopharmGroup
GuoyaoLerentangShijiazhuangMedicalManagementCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingQinghaiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
SinopharmHoldingDeyangCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.ControlledbySinopharmGroup
SinopharmGuangdongMedicalExaminationCo.,Ltd.ControlledbySinopharmGroup
SinopharmMedicalInstrumentFoshanCo.,Ltd.ControlledbySinopharmGroup
SinopharmNanpingMedicalInstrumentCo.,Ltd.ControlledbySinopharmGroup
SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingSuzhouCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingLu'anCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingNanchangChainStoreCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingXinxiangCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHuangshiCo.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingJiningCo.,Ltd.ControlledbySinopharmGroup
FujianSinopharmMedicalInstrumentCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangBaodingMedicineCo.,Ltd.ControlledbySinopharmGroup
SinopharmLerentangHengshuiMedicineCo.,Ltd.ControlledbySinopharmGroup
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.ControlledbySinopharmGroup
SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd.ControlledbySinopharmGroup
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.ControlledbyCNPGC
HuayiPharmaceuticalCo.,Ltd.ControlledbyCNPGC
BeijingHuamiaoPharmaceuticalCo.,Ltd.ControlledbyCNPGC
GuizhouTongjitangPharmaceuticalCo.,Ltd.ControlledbyCNPGC
AnhuiJingfangPharmaceuticalCo.,Ltd.ControlledbyCNPGC
GuangdongMedi-WorldPharmaceuticalCo.,Ltd.ControlledbyCNPGC
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.ControlledbyCNPGC
ShandongLuYaPharmaceuticalCo.,Ltd.ControlledbyCNPGC
FoshanFengliaoxingPharmaceuticalCo.,Ltd.ControlledbyCNPGC
WinteamPharmaceuticalGroupLtd.ControlledbyCNPGC
FoshanDezhongPharmaceuticalCo.,Ltd.ControlledbyCNPGC
ChengduRongshengPharmacyCo.,Ltd.ControlledbyCNPGC
LanzhouBiotechnologyDevelopmentCo.,Ltd.ControlledbyCNPGC
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.ControlledbyCNPGC
ShantouJinshiPowderInjectionCo.,Ltd.ControlledbyCNPGC
ChengduInstituteofBiologicalProductsCo.,Ltd.ControlledbyCNPGC
ChinaNationalPharmaceuticalIndustryCo.,Ltd.ControlledbyCNPGC
SinopharmXinjiangPharmaceuticalCo.,Ltd.ControlledbyCNPGC
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.ControlledbyCNPGC
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.ControlledbyCNPGC
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.ControlledbyCNPGC
WuhanZhonglianPharmaceuticalGroupCo.,Ltd.ControlledbyCNPGC
TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroupControlledbyCNPGC
SinopharmChuanKangPharmaceuticalCo.,Ltd.ControlledbyCNPGC

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
ChinaNationalPharmaceuticalForeignTradeCorporationControlledbyCNPGC
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.ControlledbyCNPGC
SinopharmYixinPharmaceuticalCo.,Ltd.ControlledbyCNPGC
SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd.ControlledbyCNPGC
GuizhouTongjitangPharmacyChainCo.,Ltd.ControlledbyCNPGC
SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd.ControlledbyCNPGC
LanzhouInstituteofBiologicalProductsCo.,Ltd.ControlledbyCNPGC
SinopharmWuhanbloodproductsCo.,Ltd.ControlledbyCNPGC
FujianChentianJinlingPharmaceuticalCo.,Ltd.ControlledbyCNPGC
SinopharmGroupGuizhouBloodProductsCo.,Ltd.ControlledbyCNPGC
ChinaNationalofTraditional&HerbalMedicineCo.,Ltd.ControlledbyCNPGC
SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstituteControlledbyCNPGC
GroupFinancialCo.ControlledbyCNPGC
ShanghaiShangshengBiologicalProductsCo.,Ltd.ControlledbyCNPGC
SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd.ControlledbyCNPGC
SinopharmWeiqidaPharmaceuticalCo.,Ltd.ControlledbyCNPGC
SinopharmFengliaoxingMedicalHospitalCo.,Ltd.ControlledbyCNPGC
SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd.ControlledbyCNPGC
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.ControlledbyCNPGC
YichangHumanwellPharmaceuticalCo.,Ltd.AssociateofSinopharmGroup
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.AssociateofSinopharmGroup
SinopharmHealthOnlineCo.,Ltd.AssociateofSinopharmGroup
SinopharmHoldingFinancingLeaseCo.,Ltd.AssociateofSinopharmGroup
ShanghaiGuodaLingyunPharmacyCo.,Ltd.AssociateofSinopharmGroup
NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd.AssociateofSinopharmGroup
ChangchunChangshengGenePharmaceuticalCo.,Ltd.AssociateofCNPGC
ChinaOtsukaPharmaceuticalCo.,Ltd.AssociateofCNPGC
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.AssociateofCNPGC
SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd.AssociateofCNPGC
ChongqingYaoyouPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
SichuanHexinPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
GuilinSouthpharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
ShanghaiChaohuiPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
TibetYaoyouMedicinesCo.,Ltd.SubsidiaryofFosunPharm
ShenyangHongqiPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
ShanghaiTransfusionTechnologyCo.,Ltd.SubsidiaryofFosunPharm
JiangsuWanbangPharmacyMarketingCo.,Ltd.SubsidiaryofFosunPharm
ChongqingHaisimanPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
JinzhouAoHongPharmaceuticalsCo.,Ltd.SubsidiaryofFosunPharm
HunanDongtingPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
JiangsuHuanghePharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Companyname

CompanynameRelatedpartyrelationships
SuzhouEryePharmaceuticalLimitedCompanySubsidiaryofFosunPharm
JiangsuFuxingPharmaceuticalTradingCo.,LtdSubsidiaryofFosunPharm
JiangxiEryeMedicineMarketingCo.,Ltd.SubsidiaryofFosunPharm
ShanghaiCompoundTechnologyMedicalDevicesCo.,Ltd.SubsidiaryofFosunPharm
FoshanChanchengDistrictCentralHospitalSubsidiaryofFosunPharm
FoshanChanyixingMedicineDevelopmentCoLtd.SubsidiaryofFosunPharm
FoshanChanchengPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
ShenzhenQiandaMedicalBeautyClinicSubsidiaryofFosunPharm
ShenzhenHengShengHositalSubsidiaryofFosunPharm
ShenzhenWanweiMedicineTradingCo.,Ltd.SubsidiaryofMainLuckPharmaceutical
LinyiMedicalGroupCo.,Ltd.Non-controllinginterestofasubsidiary
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Non-controllinginterestofasubsidiary
HenanWanxitangPharmacyCo.,Ltd.Non-controllinginterestofasubsidiary
HeyuanMairuiTradingCo.,Ltd.Non-controllinginterestofasubsidiary
ShenyangPharmaceuticalCo.,Ltd.Non-controllinginterestofasubsidiary
ZhangZhenfangNon-controllinginterestofasubsidiary
PingdingshanPushengPharmaceuticalCo.,Ltd.Non-controllinginterestofasubsidiary
LerentangInvestmentGroupCo.,Ltd.Non-controllinginterestofasubsidiary
ShenzhenJiufengInvestmentCo.,Ltd.Non-controllinginterestofasubsidiary
HunanMinshengtangInvestmentCo.,Ltd.Non-controllinginterestofasubsidiary
TaishanQunkangPharmacyCo.,Ltd.Non-controllinginterestofasubsidiary
GuHaiqunNon-controllinginterestofasubsidiary
GuangdongJiyuantangDevelopmentCo.,Ltd.Non-controllinginterestofasubsidiary
HangzhouXihuBusinessGroupCorporationNon-controllinginterestofasubsidiary
NanjingYuanguangTradingCo.,Ltd.Controlledbynon-controllinginterestofasubsidiary
TaishanXiangranhuiTradeCo.,LtdControlledbynon-controllinginterestofasubsidiary
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.Controlledbynon-controllinginterestofasubsidiary
GuJinhuaFamilymemberofthenon-controllingshareholderofasubsidiary
WangYangControllerofnon-controllinginterestofasubsidiary

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties

(1)Relatedpartytransactions–goodsandservices

Purchaseofgoodsandreceivingofservicesfromrelatedparties

Relatedparty

RelatedpartyTypeoftransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingSubMarketingCenterCo.,Ltd.Purchaseofgoods583,923,608.63515,167,083.81
ChinaNationalMedicinesCo.,Ltd.Purchaseofgoods263,718,638.49237,636,101.58
SinopharmHoldingShanxiCo.,Ltd.Purchaseofgoods165,125,264.60156,466,334.83
SinopharmHoldingShanxiCo.,Ltd.Purchaseofgoods117,012,541.6183,517,976.15
SinopharmGroupPurchaseofgoods92,577,206.9595,150,353.69
JiangsuWanbangPharmacyMarketingCo.,Ltd.Purchaseofgoods84,007,944.2433,623,739.18
SinopharmHoldingShenyangCo.,Ltd.Purchaseofgoods63,745,181.4763,689,297.73
SinopharmLe-Ren-TangMedicineCo.,Ltd.Purchaseofgoods58,690,396.2679,259,083.01
LanzhouBiotechnologyDevelopmentCo.,Ltd.Purchaseofgoods55,500,000.00-
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.Purchaseofgoods54,227,928.1890,145,795.30
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.Purchaseofgoods46,674,234.4539,872,567.55
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.Purchaseofgoods45,672,377.13127,271,627.94
SinopharmHoldingInnerMongoliaCo.,Ltd.Purchaseofgoods34,523,083.3818,984,953.29
SinopharmHoldingLunanCo.,Ltd.Purchaseofgoods32,561,603.4539,298,409.81
SinopharmHoldingYangzhouCo.,Ltd.Purchaseofgoods29,671,574.8123,005,232.97
JinzhouAoHongPharmaceuticalsCo.,Ltd.Purchaseofgoods28,182,818.6823,749,213.17
ChongqingYaoyouPharmaceuticalCo.,Ltd.Purchaseofgoods27,810,842.7421,508,305.23
TibetYaoyouMedicinesCo.,Ltd.Purchaseofgoods22,100,470.842,761,512.07
SinopharmHoldingBeijingCo.,Ltd.Purchaseofgoods20,533,829.9723,822,442.41
ShenzhenMainLuckPharmaceuticalCo.,Ltd.Purchaseofgoods19,919,483.1914,173,934.35
WinteamPharmaceuticalGroupLtd.Purchaseofgoods19,827,909.2815,331,219.12
JiangxiEryeMedicineMarketingCo.,Ltd.Purchaseofgoods17,959,707.56-
SinopharmHoldingFujianCo.,Ltd.Purchaseofgoods16,041,870.469,171,420.33
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.Purchaseofgoods15,458,862.7816,967,826.05
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.Purchaseofgoods14,856,080.605,519,530.03

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingPingdingshanCo.,Ltd.Purchaseofgoods14,429,720.7514,446,097.55
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.Purchaseofgoods14,255,875.264,670,243.13
ChengduRongshengPharmacyCo.,Ltd.Purchaseofgoods13,746,664.108,958,139.00
SinopharmHoldingJiangsuCo.,Ltd.Purchaseofgoods12,867,682.9912,276,533.11
SinopharmHoldingHenanCo.,Ltd.Purchaseofgoods12,814,208.206,575,293.46
ShenzhenWanweiMedicineTradingCo.,Ltd.Purchaseofgoods10,936,219.0610,428,796.93
SinopharmHoldingXiamenCo.,Ltd.Purchaseofgoods10,273,616.329,246,131.91
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.Purchaseofgoods10,193,725.003,614,733.64
SinopharmHoldingHubeiCo.,Ltd.Purchaseofgoods9,071,305.78-
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.Purchaseofgoods8,677,802.2610,465,965.70
SinopharmHoldingShandongCo.,Ltd.Purchaseofgoods7,306,060.58718,163.95
SinopharmHoldingNingxiaCo.,Ltd.Purchaseofgoods7,213,084.956,113,483.50
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.Purchaseofgoods7,161,067.433,676,515.83
YichangHumanwellPharmaceuticalCo.,Ltd.Purchaseofgoods6,711,635.434,513,583.78
SinopharmHoldingChangzhouCo.,Ltd.Purchaseofgoods6,705,005.602,900,395.11
ChinaOtsukaPharmaceuticalCo.,Ltd.Purchaseofgoods6,697,508.52241,236.29
ShanghaiModernPharmaceuticalCo.,Ltd.(ModernPharmaceutical)Purchaseofgoods6,577,712.26142,521.39
SinopharmYixinPharmaceuticalCo.,Ltd.Purchaseofgoods6,463,202.79-
SinopharmHoldingHunanCo.,Ltd.Purchaseofgoods5,496,202.1722,435,971.65
SichuanHexinPharmaceuticalCo.,Ltd.Purchaseofgoods5,339,761.191,094,458.11
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.Purchaseofgoods5,189,668.172,003,690.59
SuzhouEryePharmaceuticalLimitedCompanyPurchaseofgoods4,729,210.719,554,764.03
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.Purchaseofgoods4,541,480.00-
SinopharmChuanKangPharmaceuticalCo.,Ltd.Purchaseofgoods4,521,905.905,794,907.91
SinopharmHoldingShanxiLvliangCo.,Ltd.Purchaseofgoods4,369,021.12-
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.Purchaseofgoods3,824,818.274,530,675.45

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmGroupGuoruiMedicineCo.,Ltd.Purchaseofgoods3,219,200.903,735,052.72
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.Purchaseofgoods3,158,018.271,574,958.10
SinopharmHoldingJinanCo.,Ltd.Purchaseofgoods3,031,490.283,621,583.69
SinopharmHoldingTongliaoCo.,Ltd.Purchaseofgoods2,906,482.17584,726.70
SinopharmHoldingFuzhouCo.,Ltd.Purchaseofgoods2,676,398.894,703,935.11
PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.Purchaseofgoods2,652,028.862,298,554.23
SinopharmHoldingHeilongjiangCo.,Ltd.Purchaseofgoods2,603,286.79-
ShanghaiShangshengBiologicalProductsCo.,Ltd.Purchaseofgoods2,478,155.34-
SinopharmHoldingWuxiCo.,Ltd.Purchaseofgoods2,456,981.902,453,393.36
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.Purchaseofgoods2,326,076.001,889,376.44
SinopharmholdingsBeijinghuahongco.,LtdPurchaseofgoods2,143,025.163,550,261.18
SinopharmHoldingJinzhouCo.,Ltd.Purchaseofgoods2,050,823.422,249,516.98
ShanghaiChaohuiPharmaceuticalCo.,Ltd.Purchaseofgoods1,967,905.09330,363.62
GuizhouTongjitangPharmaceuticalCo.,Ltd.Purchaseofgoods1,947,122.981,536,282.82
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Purchaseofgoods1,673,805.681,799,439.15
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.Purchaseofgoods1,672,471.402,240,460.54
JiangsuFuxingPharmaceuticalTradingCo.,LtdPurchaseofgoods1,647,132.50-
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.Purchaseofgoods1,634,592.421,451,522.48
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.Purchaseofgoods1,634,371.49615,989.84
ShantouJinshiPowderInjectionCo.,Ltd.Purchaseofgoods1,575,114.81330,119.93
SinopharmWeiqidaPharmaceuticalCo.,Ltd.Purchaseofgoods1,396,321.5831,965.52
ShenyangHongqiPharmaceuticalCo.,Ltd.Purchaseofgoods1,395,942.721,058,670.33
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.Purchaseofgoods1,374,403.2680,410.58
ChinaNationalPharmaceuticalIndustryCo.,Ltd.Purchaseofgoods1,237,603.17188,275.39
HunanDongtingPharmaceuticalCo.,Ltd.Purchaseofgoods1,221,714.73340,441.92
SinopharmHoldingYanchengCo.,Ltd.Purchaseofgoods1,174,557.521,402,672.48
SinopharmHoldingChangshaCo.,Ltd.Purchaseofgoods1,166,442.94414,897.11

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.Purchaseofgoods1,115,619.67921,863.31
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.Purchaseofgoods1,047,564.70-
SinopharmGroupSouthwestMedicineCo.,Ltd.Purchaseofgoods942,169.90153,389.66
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.Purchaseofgoods904,775.75400,421.76
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.Purchaseofgoods853,055.98200,544.82
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.Purchaseofgoods825,452.16121,618.26
SinopharmHoldingSuzhouCo.,Ltd.Purchaseofgoods821,818.786,247,553.79
ChengduInstituteofBiologicalProductsCo.,Ltd.Purchaseofgoods821,518.40-
SinopharmHoldingLianyungangCo.,Ltd.Purchaseofgoods815,620.38153,111.27
SinopharmHoldingHulunBuirCo.,Ltd.Purchaseofgoods813,318.59713,341.49
GuangdongMedi-WorldPharmaceuticalCo.,Ltd.Purchaseofgoods778,815.71584,223.16
SinopharmHoldingDalianCo.,Ltd.Purchaseofgoods708,136.87769,041.46
SinopharmHoldingTianjinCo.,Ltd.Purchaseofgoods706,163.711,598,345.37
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.Purchaseofgoods627,257.6463,648.72
SinopharmHoldingPutianCo.,Ltd.Purchaseofgoods602,182.39895,532.89
SinopharmHoldingAnhuiCo.,Ltd.Purchaseofgoods558,299.15539,726.50
SinopharmHoldingHainanCo.,Ltd.Purchaseofgoods556,396.5997,450.60
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.Purchaseofgoods551,162.81763,625.20
AnhuiJingfangPharmaceuticalCo.,Ltd.Purchaseofgoods537,444.48(13,269.30)
SinopharmGroupGuizhouBloodProductsCo.,Ltd.Purchaseofgoods536,000.00-
ShanghaiMerroPharmaceuticalCo.,Ltd.Purchaseofgoods513,712.422,016,321.47
SinopharmHoldingQuanzhouCo.,Ltd.Purchaseofgoods509,096.37509,662.25
GuilinSouthpharmaceuticalCo.,Ltd.Purchaseofgoods491,705.68-
ShanghaiTransfusionTechnologyCo.,Ltd.Purchaseofgoods444,825.76-
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.Purchaseofgoods434,284.50-
SinopharmHoldingZhejiangCo.,Ltd.Purchaseofgoods383,036.87289,516.54
WuhanZhonglianPharmaceuticalGroupCo.,Ltd.Purchaseofgoods357,980.82435,887.39

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
FujianChentianJinlingPharmaceuticalCo.,Ltd.Purchaseofgoods328,557.99-
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.Purchaseofgoods257,629.73109,039.96
SinopharmWuhanbloodproductsCo.,Ltd.Purchaseofgoods248,000.00-
SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd.Purchaseofgoods189,064.65-
SinopharmHoldingDalianHechengCo.,Ltd.Purchaseofgoods175,327.42262,027.99
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.Purchaseofgoods166,268.35444,000.00
FoshanFengliaoxingPharmaceuticalCo.,Ltd.Purchaseofgoods160,792.592,015,702.90
SinopharmHolding(Hubei)BasePharmaceuticalCo.,Ltd.Purchaseofgoods152,076.28-
SinopharmHoldingDezhouCo.,Ltd.Purchaseofgoods148,796.05228,731.52
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.Purchaseofgoods142,539.15-
JiangsuHuanghePharmaceuticalCo.,Ltd.Purchaseofgoods133,968.48-
SinopharmHoldingBayannaoerCo.,Ltd.Purchaseofgoods120,003.15-
ChinaMedicalEquipmentShandongCo.,Ltd.Purchaseofgoods116,013.65-
SinopharmGroupShanxiCo.,Ltd.Purchaseofgoods111,864.7787,596.90
FoshanDezhongPharmaceuticalCo.,Ltd.Purchaseofgoods95,965.53-
SinopharmLiaoningMedicalEquipmentCo.,Ltd.Purchaseofgoods90,783.71-
SinopharmXinjiangPharmaceuticalCo.,Ltd.Purchaseofgoods73,542.9612.82
SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd.Purchaseofgoods40,707.96-
SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd.Purchaseofgoods39,203.4758,952.78
TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroupPurchaseofgoods35,353.2924,295.86
SinopharmHoldingTaizhouCo.,Ltd.Purchaseofgoods34,438.8873,304.23
SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd.Purchaseofgoods29,090.9149,297.30
SinopharmHoldingRizhaoCo.,Ltd.Purchaseofgoods19,834.99586,905.03
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.Purchaseofgoods19,401.8927,310.34
GuoyaoLerentangHebeiMedicalDeviceSupplyChainManagementCo.,Ltd.Purchaseofgoods17,131.04-
SinopharmHoldingUlanqabCo.,Ltd.Purchaseofgoods17,027.43308,191.79
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.Purchaseofgoods14,185.41-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingJilinCo.,Ltd.Purchaseofgoods13,152.13-
SinopharmGroupMedicineLogisticCo.,Ltd.Purchaseofgoods10,445.10-
SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd.Purchaseofgoods10,137.93-
SinopharmHoldingShanxiJinchengCo.,Ltd.Purchaseofgoods8,408.7411,481.46
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.Purchaseofgoods6,891.48335,484.62
LanzhouInstituteofBiologicalProductsCo.,Ltd.Purchaseofgoods-52,860,000.00
ChinaNationalPharmaceuticalForeignTradeCorporationPurchaseofgoods-13,645,110.09
SinopharmHoldingShanxiInstrumentBranchCo.,Ltd.Purchaseofgoods-7,410,730.23
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.Purchaseofgoods-995,510.64
SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.Purchaseofgoods-193,277.45
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.Purchaseofgoods-173,484.94
SinopharmHoldingGuizhouCo.,Ltd.Purchaseofgoods-73,729.75
ChongqingHaisimanPharmaceuticalCo.,Ltd.Purchaseofgoods-33,895.38
SinopharmLerentangTangshanMedicineCo.,Ltd.Purchaseofgoods-20,598.94
SinopharmHoldingNanpingNewforceCo.,Ltd.Purchaseofgoods-15,315.32
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.Purchaseofgoods-9,564.95
SinopharmHebeiMedicalInstrumentCo.,Ltd.Purchaseofgoods-6,533.84
BeijingHuamiaoPharmaceuticalCo.,Ltd.Purchaseofgoods-2,649.79
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.Purchaseofgoods-1,770.86
SinopharmHoldingJinhuaCo.,Ltd.Purchaseofgoods-38.80
SinopharmHoldingOrdosCo.,Ltd.Purchaseofgoods-(10,667.01)
SinopharmHoldingYongzhouCo.,Ltd.Purchaseofgoods(49.36)38,141.67
SinopharmProspectDentech(Beijing)Co.,Ltd.Purchaseofgoods(63.80)4,073.48
SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd.Purchaseofgoods(9,500.00)-
ShandongLuYaPharmaceuticalCo.,Ltd.Purchaseofgoods(23,551.03)2,909,280.05
HuayiPharmaceuticalCo.,Ltd.Purchaseofgoods(191,940.52)695,732.52
SinopharmGroupMedicineLogisticCo.,Ltd.Storageandtransport7,275,965.456,666,668.71

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHealthOnlineCo.,Ltd.Consultingservicefee6,298,404.976,085,895.22
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.Consultingservicefee1,229,716.931,263,962.22
ShanghaiTongyuInformationTechnologyCo.,Ltd.Informationsystemaccessfee142,764.1598,113.21
PingdingshanPushengPharmaceuticalCo.,Ltd.Others109,458.10-
ChinaNationalPharmaceuticalLogisticsCo.,Ltd.Storageandtransportcost54,651.5944,030.65
SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd.Informationsystemaccessfee-7,075.47

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices

Relatedparty

RelatedpartyTypeoftransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmGroupSaleofgoods113,329,103.3054,514,170.65
FoshanChanchengPharmaceuticalCo.,Ltd.Saleofgoods59,004,606.0242,375,781.14
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.Saleofgoods55,645,701.0449,727,338.63
SinopharmHoldingHainanCo.,Ltd.Saleofgoods48,570,645.0029,338,160.25
SinopharmHoldingHainanHongyiCo.,Ltd.Saleofgoods17,357,873.1624,127,524.50
SinopharmHoldingWenzhouCo.,Ltd.Saleofgoods14,754,017.7610,830,194.79
SinopharmholdingsBeijinghuahongco.,LtdSaleofgoods13,727,246.494,816,641.92
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.Saleofgoods12,079,800.797,489,471.75
SinopharmHoldingSubMarketingCenterCo.,Ltd.Saleofgoods12,022,683.328,970,804.72
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Saleofgoods11,241,528.419,738,902.57
SinopharmHoldingBeijingCo.,Ltd.Saleofgoods10,806,898.055,770,691.44
ShenzhenHengShengHositalSaleofgoods10,482,252.708,215,885.93
SinopharmLe-Ren-TangMedicineCo.,Ltd.Saleofgoods9,207,801.667,728,482.84
PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.Saleofgoods9,123,984.7510,524,551.98
SinopharmHoldingHenanCo.,Ltd.Saleofgoods8,408,084.978,736,054.45
SinopharmSichuanPharmaceuticalCo.,Ltd.Saleofgoods7,749,468.189,061,104.38
SinopharmHoldingNantongCo.,Ltd.Saleofgoods7,649,412.438,717,338.95
SinopharmHoldingShandongCo.,Ltd.Saleofgoods7,547,654.374,577,546.05
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.Saleofgoods7,346,892.056,837,559.00
FoshanChanchengDistrictCentralHospitalSaleofgoods5,456,346.954,504,644.96
SinopharmHoldingHubeiCo.,Ltd.Saleofgoods5,366,299.133,772,162.27
SinopharmHoldingShanxiCo.,Ltd.Saleofgoods5,246,365.87917,123.69
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.Saleofgoods4,369,980.09673,847.93
SinopharmHoldingYangzhouCo.,Ltd.Saleofgoods4,293,371.835,144,530.81
ShanghaiMerroPharmaceuticalCo.,Ltd.Saleofgoods4,068,584.001,223,626.19
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.Saleofgoods3,423,834.3917,376,808.71

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Saleofgoodsandrenderingofservices
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingYunnanCo.,Ltd.Saleofgoods3,291,886.515,713,012.18
FoshanChanyixingMedicineDevelopmentCoLtd.Saleofgoods3,252,324.631,450,198.02
SinopharmHoldingAnhuiCo.,Ltd.Saleofgoods2,691,014.381,168,187.29
SinopharmHoldingJinzhouCo.,Ltd.Saleofgoods2,509,334.67-
SinopharmHoldingXuzhouCo.,Ltd.Saleofgoods2,496,791.90-
SinopharmHoldingTianjinCo.,Ltd.Saleofgoods2,043,046.861,029,758.40
ChinaNationalMedicinesCo.,Ltd.Saleofgoods1,932,350.561,740,716.75
SinopharmHoldingShanxiCo.,Ltd.Saleofgoods1,927,565.822,577,305.96
SinopharmHoldingJilinCo.,Ltd.Saleofgoods1,861,781.971,172,196.27
SinopharmHoldingDalianCo.,Ltd.Saleofgoods1,833,913.001,263,047.36
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.Saleofgoods1,828,562.254,409,528.78
SinopharmHoldingFujianCo.,Ltd.Saleofgoods1,731,691.96979,220.98
SinopharmGroupSouthwestMedicineCo.,Ltd.Saleofgoods1,580,662.421,006,172.43
SinopharmHoldingHunanCo.,Ltd.Saleofgoods1,476,158.081,308,950.82
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.Saleofgoods1,436,139.10-
ShanghaiLiyiDrugStoreCo.,LtdSaleofgoods1,432,059.22-
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.Saleofgoods1,283,881.89-
YuxiSinopharmMedicineCo.,Ltd.Saleofgoods956,668.77625,927.21
SinopharmHoldingNingxiaCo.,Ltd.Saleofgoods772,293.60240,539.93
SinopharmHoldingDalianHechengCo.,Ltd.Saleofgoods743,390.17301,982.46
SinopharmHoldingShenyangCo.,Ltd.Saleofgoods608,363.96103,846.57
SinopharmHoldingGansuCo.,Ltd.Saleofgoods505,887.621,353,030.00
SinopharmHoldingWuxiCo.,Ltd.Saleofgoods484,790.17349,203.27
ShanghaiGuodaLingyunPharmacyCo.,Ltd.Saleofgoods425,714.65540,476.78
SinopharmHoldingWuhuCo.,Ltd.Saleofgoods419,826.51127,195.59
SinopharmHoldingJiaozuoCo.,Ltd.Saleofgoods406,784.27-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Saleofgoodsandrenderingofservices
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingYanchengCo.,Ltd.Saleofgoods382,851.04-
SinopharmHoldingHongheCo.,Ltd.Saleofgoods377,186.119,595.25
SinopharmHoldingTianjinNorthMedicineCo.,Ltd.Saleofgoods363,748.9358,775.86
SinopharmHoldingInnerMongoliaCo.,Ltd.Saleofgoods326,327.82239,130.68
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.Saleofgoods296,825.53-
SinopharmGroupShanxiCo.,Ltd.Saleofgoods266,895.84486,510.78
SinopharmHoldingChengduCo.,Ltd.Saleofgoods252,754.20215,685.18
SinopharmHoldingQinghaiCo.,Ltd.Saleofgoods250,674.21168,653.68
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.Saleofgoods225,250.43448,887.64
SinopharmHoldingTongrenCo.,Ltd.Saleofgoods197,968.7821,011.20
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.Saleofgoods195,295.22-
NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd.Saleofgoods173,403.11-
SinopharmHoldingGuizhouCo.,Ltd.Saleofgoods158,213.271,042,466.52
SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd.Saleofgoods155,771.69-
SinopharmHoldingZunyiCo.,Ltd.Saleofgoods146,542.7835,054.94
SinopharmHoldingTaizhouCo.,Ltd.Saleofgoods141,236.61-
ShenzhenQiandaMedicalBeautyClinicSaleofgoods140,970.86-
SinopharmHoldingChongqingCo.,Ltd.Saleofgoods138,748.70145,147.69
SinopharmHoldingHubeiHongyuanCo.,Ltd.Saleofgoods132,556.0297,162.40
SinopharmHoldingFuzhouCo.,Ltd.Saleofgoods131,753.266,927.14
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.Saleofgoods128,687.69-
SinopharmHoldingJiangxiCo.,Ltd.Saleofgoods123,135.25371,671.87
SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd.Saleofgoods114,833.4312,712.58
SinopharmFengliaoxingMedicalHospitalCo.,Ltd.Saleofgoods101,588.5916,804.60
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.Saleofgoods86,668.69175,352.41
SinopharmHoldingJiangsuCo.,Ltd.Saleofgoods76,013.68-
SinopharmGuangdongMedicalExaminationCo.,Ltd.Saleofgoods73,203.54-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Saleofgoodsandrenderingofservices
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd.Saleofgoods70,073.94133,404.19
SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd.Saleofgoods66,013.12-
ShanghaiCompoundTechnologyMedicalDevicesCo.,Ltd.Saleofgoods59,482.76-
SinopharmMedicalInstrumentFoshanCo.,Ltd.Saleofgoods58,330.19-
SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.Saleofgoods55,763.79-
SinopharmHoldingChangzhouCo.,Ltd.Saleofgoods50,185.70435,840.01
SinopharmHoldingUlanqabCo.,Ltd.Saleofgoods47,434.77175,775.17
SinopharmHoldingLongyanCo.,Ltd.Saleofgoods44,963.9758,172.99
SinopharmHoldingChuxiongCo.,Ltd.Saleofgoods41,712.99-
SinopharmHoldingJilinChainStoreCo.,Ltd.Saleofgoods38,234.4891,435.98
SinopharmHoldingDeyangCo.,Ltd.Saleofgoods36,771.21-
DongyuanaccordpharmaceuticalchainCo.,Ltd.Saleofgoods30,868.2739,393.65
SinopharmHoldingAnshunCo.,Ltd.Saleofgoods21,688.95-
SinopharmNanpingMedicalInstrumentCo.,Ltd.Saleofgoods19,993.91-
SinopharmHoldingNingdeCo.,Ltd.Saleofgoods19,818.6723,864.90
SinopharmHoldingLiaochengCo.,Ltd.Saleofgoods15,779.7915,596.82
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.Saleofgoods14,949.897,617.49
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.Saleofgoods13,939.159,119.70
SinopharmHoldingShanxiJinchengCo.,Ltd.Saleofgoods11,204.59-
SinopharmHoldingSipingCo.,Ltd.Saleofgoods9,998.2826,548.13
SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.Saleofgoods9,884.4619,240.32
ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd.Saleofgoods6,320.71-
SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd.Saleofgoods6,233.90-
SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd.Saleofgoods3,590.16-
GuoyaoLerentangShijiazhuangMedicalManagementCo.,Ltd.Saleofgoods2,663.79-
SinopharmHoldingZhejiangCo.,Ltd.Saleofgoods-921,282.05
HubeiPharmaceuticalGroupCo.,Ltd.Saleofgoods-853,130.68

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Saleofgoodsandrenderingofservices
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingHeilongjiangCo.,Ltd.Saleofgoods-324,789.98
SinopharmHoldingYongzhouCo.,Ltd.Saleofgoods-203,544.77
SinopharmHoldingHuaianCo.,Ltd.Saleofgoods-128,653.00
SinopharmHoldingSuzhouCo.,Ltd.Saleofgoods-103,840.63
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.Saleofgoods-79,279.28
SinopharmHoldingLu'anCo.,Ltd.Saleofgoods-66,987.18
SinopharmHoldingNanchangChainStoreCo.,Ltd.Saleofgoods-54,017.59
SinopharmHoldingXinxiangCo.,Ltd.Saleofgoods-34,164.62
SinopharmHoldingHuangshiCo.,Ltd.Saleofgoods-34,025.78
SinopharmHoldingJiningCo.,Ltd.Saleofgoods-19,035.54
FujianSinopharmMedicalInstrumentCo.,Ltd.Saleofgoods-13,988.00
SinopharmLerentangBaodingMedicineCo.,Ltd.Saleofgoods-12,991.45
SinopharmLerentangHengshuiMedicineCo.,Ltd.Saleofgoods-12,108.38
SinopharmHoldingHulunBuirCo.,Ltd.Saleofgoods-4,570.00
SinopharmHoldingPutianCo.,Ltd.Saleofgoods(33,809.91)64,610.68
SinopharmHoldingQuanzhouCo.,Ltd.Saleofgoods(87,055.63)-
ChinaNationalMedicinesCo.,Ltd.Transportandstorageincome4,430,727.403,580,698.30
SinopharmGroupMedicineLogisticCo.,Ltd.Transportandstorageincome401,376.93294,804.62
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.Mealfee308,882.00294,180.00
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.Transportandstorageincome123,995.03122,242.00
SinopharmGroupSouthwestMedicineCo.,Ltd.Transportandstorageincome82,001.72-
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.Consultingserviceincome2,792.45-
SinopharmHoldingShanxiCo.,Ltd.Consultingserviceincome1,688.129,433.96
GuizhouTongjitangPharmaceuticalCo.,Ltd.Consultingserviceincome-8,285.71
WinteamPharmaceuticalGroupLtd.Consultingserviceincome-2,023.58
SinopharmHoldingShanxiInstrumentBranchCo.,Ltd.Otherincome-1,132.08

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Saleofgoodsandrenderingofservices
RelatedpartyTypeofransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(2)Relatedpartytransactions-leases

(a)Asthelessor

(a)AsthelessorTypeofassetsunderleases

TypeofassetsunderleasesIncomefromleasesForthesixmonthsended30June2019IncomefromleasesForthesixmonthsended30June2018
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.Building957,142.86351,428.58
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.Building285,714.30285,714.30
ChinaNationalMedicinesCo.,Ltd.Building24,000.0045,714.29
(b)Asthelessee
TypeofassetsunderleasesExpensefromleasesForthesixmonthsended30June2019ExpensefromleasesForthesixmonthsended30June2018
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Building6,670,660.925,461,904.76
SinopharmGroupMedicineLogisticCo.,Ltd.Equipment3,750,000.003,750,000.00
SinopharmGroupShanghaiCo.,Ltd.Building3,721,698.573,790,426.48
SinopharmGroupMedicineLogisticCo.,Ltd.Building3,539,999.983,539,999.98
LerentangInvestmentGroupCo.,Ltd.Building3,354,162.222,277,892.99
PingdingshanPushengPharmaceuticalCo.,Ltd.Building2,405,696.371,277,732.57
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.Building2,234,982.503,914,124.76
SinopharmHoldingYangzhouCo.,Ltd.Building1,902,091.521,862,857.14
HunanMinshengtangInvestmentCo.,Ltd.Building1,838,716.702,027,673.99
LinyiMedicalGroupCo.,Ltd.Building1,482,764.042,036,376.45
GuangdongJiyuantangDevelopmentCo.,Ltd.Building1,088,752.311,192,864.11
NanjingYuanguangTradingCo.,Ltd.Building855,468.84866,794.89
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.Building476,713.98470,161.86
TaishanXiangranhuiTradeCo.,LtdBuilding456,054.17451,963.88
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.Building277,303.54184,253.18
SinopharmGroupBuilding267,553.06259,915.02

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

WangYang

WangYangBuilding262,857.12262,857.12
SinopharmHoldingBeijingCo.,Ltd.Building260,870.74235,714.29
ShenyangPharmaceuticalCo.,Ltd.Building253,564.153,548,219.75
ZhangZhenfangBuilding214,062.49402,499.98

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(2)Relatedpartytransactions–leases(Continued)

(b)Asthelessee(continued)

(b)Asthelessee(continued)Typeofassetsunderleases

TypeofassetsunderleasesExpensefromleasesForthesixmonthsended30June2019ExpensefromleasesForthesixmonthsended30June2018
GuJinhuaBuilding207,084.48178,800.00
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.Building173,068.27173,523.81
HangzhouXihuBusinessGroupCorporationBuilding145,986.38132,823.81
ChinaNationalMedicinesCo.,Ltd.Building145,865.91153,750.00
SinopharmXinjiangPharmaceuticalCo.,Ltd.Building136,369.86130,208.30
GuHaiqunBuilding108,277.610.00
ShenzhenJiufengInvestmentCo.,Ltd.Building100,414.1989,260.15
TaishanQunkangPharmacyCo.,Ltd.Building70,864.9574,170.32
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.Building47,990.56236,051.50
SinopharmHoldingFujianCo.,Ltd.Building6,571.396,571.38
SinopharmHoldingShanxiCo.,Ltd.Building0.00234,017.16
XinjiangBaitongPropertyServiceCo.,Ltd.Building0.0044,581.16
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.Park0.0035,428.57

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions–Financing

Relatedparty

RelatedpartyAmountInceptionMaturityNote
Borrowedfrom
GroupFinancialCo.43,428,873.4522April201931May2019Discountoncommercialacceptancenotes
GroupFinancialCo.40,197,120.8417April201917July2019Short-termborrowings
GroupFinancialCo.38,384,946.6724January201928February2019Discountoncommercialacceptancenotes
GroupFinancialCo.37,311,327.2722May201922August2019Short-termborrowings
GroupFinancialCo.33,815,106.0818March201930April2019Discountoncommercialacceptancenotes
CNPGC31,600,000.0024May201724May2020Long-termborrowings
GroupFinancialCo.27,852,641.7530January201930April2019Discountoncommercialacceptancenotes
GroupFinancialCo.27,408,812.8321May201930June2019Discountoncommercialacceptancenotes
GroupFinancialCo.23,148,716.5518March201925May2019Discountoncommercialacceptancenotes
GroupFinancialCo.21,601,820.9018March201931May2019Discountoncommercialacceptancenotes
GroupFinancialCo.20,902,069.2330January201928March2019Discountoncommercialacceptancenotes
GroupFinancialCo.18,680,669.1421May201931July2019Discountoncommercialacceptancenotes
GroupFinancialCo.18,309,493.1930January201929March2019Discountoncommercialacceptancenotes
GroupFinancialCo.14,997,301.9930January201909May2019Discountoncommercialacceptancenotes
GroupFinancialCo.14,442,689.9830January201925March2019Discountoncommercialacceptancenotes
GroupFinancialCo.11,932,011.3730January201926April2019Discountoncommercialacceptancenotes
GroupFinancialCo.9,827,139.5922April201909August2019Discountoncommercialacceptancenotes
GroupFinancialCo.9,776,155.1822April201925June2019Discountoncommercialacceptancenotes
GroupFinancialCo.2,227,866.6030January201928June2019Discountoncommercialacceptancenotes
GroupFinancialCo.2,115,440.2622April201926September2019Discountoncommercialacceptancenotes
GroupFinancialCo.2,037,126.5030January201928May2019Discountoncommercialacceptancenotes
GroupFinancialCo.1,628,019.4618March201927August2019Discountoncommercial

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Relatedparty

RelatedpartyAmountInceptionMaturityNote
Borrowedfrom
acceptancenotes
GroupFinancialCo.1,188,450.2230January201926June2019Discountoncommercialacceptancenotes
GroupFinancialCo.859,454.6021May201926August2019Discountoncommercialacceptancenotes
GroupFinancialCo.798,997.8022April201926July2019Discountoncommercialacceptancenotes
GroupFinancialCo.729,054.6018March201926June2019Discountoncommercialacceptancenotes

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(4)Relatedpartyassettransfer

Typeoftransaction

TypeoftransactionForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd.Purchaseofconstructioninprogress-21,794.87

(5)Otherrelatedpartytransactions

Forthesixmonthsended30June2019Forthesixmonthsended30June2018
(a)Remunerationforkeymanagementpersonnel3,843,750.002,981,250.00
(b)Interestexpense
RelatedpartyCategoryForthesixmonthsended30June2019Forthesixmonthsended30June2018
GroupFinancialCo.Paymentofnotesdiscountinterest2,615,234.173,411,652.84
ChinaNationalPharmaceuticalGroupCorporationPaymentofentrustedloaninterest641,469.02641,469.02
GroupFinancialCo.Paymentofloaninterest473,516.87-
SinopharmHoldingFinancingLeaseCo.,Ltd.Paymentoffinancingleaseinterest177,850.56623,402.17
SinopharmHoldingFinancingLeaseCo.,Ltd.Paymentofnon-recoursereceivablefactoredinterestexpense63,750.00-
GuorunMedicalSupplyChainServices(Shanghai)Co.,Ltd.Paymentofrelatedpartiesloaninterest-1,778.67
3,971,820.624,678,302.70
(c)Interestincome
RelatedpartyCategoryForthesixmonthsended30June2019Forthesixmonthsended30June2018
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.Entrustedloaninterest1,669,601.711,549,650.99
GroupFinancialCo.Depositinterest145,659.27387,479.46
1,815,260.981,937,130.45

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties

Accountsreceivable

Accountsreceivable30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
FoshanChanchengPharmaceuticalCo.,Ltd.45,958,521.41276,165.3439,888,094.43235,040.74
SinopharmGroup40,401,102.06-32,263,115.51-
SinopharmHoldingHainanCo.,Ltd.9,869,915.19-6,607,589.69-
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.9,772,467.43-11,966,548.05-
SinopharmHealthOnlineCo.,Ltd.7,991,221.08-6,543,624.21-
SinopharmHoldingSubMarketingCenterCo.,Ltd.4,943,166.98---
SinopharmholdingsBeijinghuahongco.,Ltd4,491,263.20-4,009,562.41-
ShenzhenHengShengHosital4,350,627.94-2,674,948.35-
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.4,350,308.37-5,372,873.84-
PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.4,175,729.23-3,839,268.45-
SinopharmLe-Ren-TangMedicineCo.,Ltd.4,123,874.57-3,143,231.13-
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.4,092,864.80-3,986,543.21-
SinopharmHoldingBeijingCo.,Ltd.3,345,842.50-888,815.16-
SinopharmHoldingHainanHongyiCo.,Ltd.3,314,718.28-5,370,089.88-
FoshanChanchengDistrictCentralHospital3,160,081.1344,928.582,440,447.5212,753.61
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.2,539,969.75-986,526.05-
SinopharmHoldingHenanCo.,Ltd.2,447,128.74-1,036,327.62-
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.2,196,272.00-1,178,605.80-
SinopharmHoldingShandongCo.,Ltd.2,037,494.51-210,969.36-
FoshanChanyixingMedicineDevelopmentCoLtd.1,865,947.366,667.321,743,775.579,377.72
SinopharmHoldingWenzhouCo.,Ltd.1,710,031.20-1,261,643.94-
ChinaNationalMedicinesCo.,Ltd.1,604,941.84-1,454,237.32-
SinopharmSichuanPharmaceuticalCo.,Ltd.1,424,513.17-1,081,909.20-
SinopharmHoldingYangzhouCo.,Ltd.1,366,338.68-540,349.73-
ShanghaiMerroPharmaceuticalCo.,Ltd.1,348,428.86-884,486.53-
SinopharmHoldingXuzhouCo.,Ltd.1,272,626.48-34,941.30-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Accountsreceivable

Accountsreceivable30June20191January2019
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.1,095,210.16---
SinopharmHoldingShanxiCo.,Ltd.1,044,424.48-1,028,660.04-
SinopharmHoldingYunnanCo.,Ltd.852,406.76-27,737.44-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Accountsreceivable(Continued)

Accountsreceivable(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmHoldingTianjinCo.,Ltd.736,401.04-200,407.20-
SinopharmHoldingJilinCo.,Ltd.638,937.96-1,499,742.50-
SinopharmHoldingNantongCo.,Ltd.637,245.24-66,541.32-
SinopharmHoldingFujianCo.,Ltd.602,589.12---
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.599,179.84-772,488.31-
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.596,543.86-164,566.12-
SinopharmHoldingAnhuiCo.,Ltd.583,647.00-221,425.72-
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.552,496.16-1,704,316.57-
SinopharmHoldingHunanCo.,Ltd.537,470.30-569,264.26-
SinopharmHoldingHubeiCo.,Ltd.457,991.94-68,314.16-
SinopharmHoldingShanxiCo.,Ltd.368,536.28-68,361.75-
YuxiSinopharmMedicineCo.,Ltd.365,065.92-182,532.96-
SinopharmHoldingDalianCo.,Ltd.357,662.16-144,334.03-
ShanghaiGuodaLingyunPharmacyCo.,Ltd.357,524.59-17,535.13-
SinopharmHoldingDalianHechengCo.,Ltd.286,270.00-126,684.00-
SinopharmHoldingChengduCo.,Ltd.280,800.00---
SinopharmGroupSouthwestMedicineCo.,Ltd.248,554.12-5,090,863.70-
SinopharmGroupMedicineLogisticCo.,Ltd.209,724.91-139,697.93-
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.201,154.08---
SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd.124,568.18-120,403.60-
SinopharmHoldingQinghaiCo.,Ltd.110,520.40-96,319.48-
SinopharmHoldingYanchengCo.,Ltd.108,561.80---
SinopharmHoldingNingxiaCo.,Ltd.100,896.00---
SinopharmHoldingGansuCo.,Ltd.94,147.34-176,910.34-
SinopharmHoldingShenyangCo.,Ltd.84,504.52-123,126.34-
SinopharmHoldingTianjinNorthMedicineCo.,Ltd.78,465.54-91,390.41-
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.69,005.33453.65--
SinopharmHoldingInnerMongoliaCo.,Ltd.63,160.96-90,159.36-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Accountsreceivable(Continued)

Accountsreceivable(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.59,076.00-39,618.00-
SinopharmHoldingHongheCo.,Ltd.58,831.14---
SinopharmHoldingHeilongjiangCo.,Ltd.50,000.0050,000.0050,000.00-
SinopharmGuangdongMedicalExaminationCo.,Ltd.41,360.00---
SinopharmHoldingJiangxiCo.,Ltd.22,606.08---
ShanghaiLiyiDrugStoreCo.,Ltd19,278.81-76,366.48-
SinopharmHoldingZunyiCo.,Ltd.18,358.20---
SinopharmHoldingChangzhouCo.,Ltd.15,557.40---
SinopharmHoldingFuzhouCo.,Ltd.15,195.60---
SinopharmHoldingChuxiongCo.,Ltd.13,132.80---
SinopharmFengliaoxingMedicalHospitalCo.,Ltd.12,020.2674.5416,836.25136.35
NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd.11,448.00---
SinopharmHoldingGuizhouCo.,Ltd.8,307.00-16,026.00-
SinopharmHoldingWuxiCo.,Ltd.6,818.00-157,614.80-
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.6,669.00-1,070.60-
SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.5,900.96-1,300.54-
SinopharmHoldingUlanqabCo.,Ltd.3,933.10---
SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.3,366.10-1,488.00-
SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd.1,526.024.78695.700.94
SinopharmGroupShanxiCo.,Ltd.1.60-58,518.00-
SinopharmXinxiangChainStoreCo.,Ltd.--2,064.20-
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.--144,600.00-
SinopharmMedicalInstrumentFoshanCo.,Ltd.--11,904.00-
HubeiPharmaceuticalGroupCo.,Ltd.--61,959.91-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

Notesreceivable

Notesreceivable30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmHoldingFinancingLeaseCo.,Ltd.13,210,232.00-202,456,075.93-
SinopharmHoldingHainanCo.,Ltd.3,896,828.51-12,035,409.02-
SinopharmLe-Ren-TangMedicineCo.,Ltd.2,500,000.00-1,148,409.56-
SinopharmHoldingHainanHongyiCo.,Ltd.1,528,421.30-10,234,483.82-
SinopharmHoldingHubeiCo.,Ltd.1,008,876.24---
SinopharmHoldingNantongCo.,Ltd.750,000.00---
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.472,387.20---
SinopharmHoldingGansuCo.,Ltd.239,670.00-163,198.80-
SinopharmHoldingShanxiCo.,Ltd.--1,077,861.97-
SinopharmHoldingShenyangCo.,Ltd.--422,520.00-
SinopharmHoldingShanxiCo.,Ltd.--359,459.04-
SinopharmHoldingSubMarketingCenterCo.,Ltd.--3,144,392.00-
SinopharmHoldingHenanCo.,Ltd.--1,032,584.76-
SinopharmHoldingAnhuiCo.,Ltd.--390,062.21-
SinopharmHoldingShandongCo.,Ltd.--1,241,661.12-
SinopharmHoldingFujianCo.,Ltd.--400,000.00-
SinopharmHoldingNingxiaCo.,Ltd.--176,568.00-
SinopharmHoldingJilinCo.,Ltd.--274,058.00-
SinopharmHoldingChengduCo.,Ltd.--201,332.00-
Otherreceivables30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.44,000,000.002,200,000.0044,000,000.00-
SinopharmGroupMedicineLogisticCo.,Ltd.6,226,734.36-2,494,174.31-
ShyndecPharmaceutical5,624,940.00-7,913,430.00-
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.385,381.65-100,000.00-
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.234,693.89600.00109,774.26600.00
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.48,493.16-48,493.16-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

SinopharmHoldingTianjinCo.,Ltd.

SinopharmHoldingTianjinCo.,Ltd.41,100.00---
SinopharmGroup13,416.00---

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Otherreceivables(Continued)

Otherreceivables(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmHoldingSubMarketingCenterCo.,Ltd.10,990.00---
WuhanZhonglianPharmaceuticalGroupCo.,Ltd.5,000.001,000.005,000.001,000.00
SinopharmHoldingFujianCo.,Ltd.3,476.39-5,476.34-
SinopharmHoldingJiaozuoCo.,Ltd.--30,171.00-
HenanWanxitangPharmacyCo.,Ltd.--1,098,981.30-
SinopharmHealthOnlineCo.,Ltd.--81,755.36-
SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch--18,650.00-
Advancestosuppliers30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.1,628,396.28-1,643,251.42-
ChongqingYaoyouPharmaceuticalCo.,Ltd.1,097,717.47-931,286.48-
SinopharmGroup760,415.14-2,308,319.33-
GuizhouTongjitangPharmaceuticalCo.,Ltd.446,109.64-227,175.58-
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.242,701.50---
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.230,666.79---
SichuanHexinPharmaceuticalCo.,Ltd.174,960.00---
AnhuiJingfangPharmaceuticalCo.,Ltd.146,744.67-45,611.47-
SinopharmWeiqidaPharmaceuticalCo.,Ltd.140,382.00---
ChengduRongshengPharmacyCo.,Ltd.122,000.00-1,416,622.63-
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.82,800.00-78,857.14-
SinopharmYixinPharmaceuticalCo.,Ltd.81,152.00---
ChinaNationalMedicinesCo.,Ltd.78,750.00-78,750.00-
ChengduInstituteofBiologicalProductsCo.,Ltd.64,979.60-48,734.70-
SinopharmGroupGuoruiMedicineCo.,Ltd.63,310.27---
ShyndecPharmaceutical56,281.48-57,838.35-
ShenzhenWanweiMedicineTradingCo.,Ltd.50,658.00---
JinzhouAoHongPharmaceuticalsCo.,33,040.00-16,520.00-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

Ltd.

Ltd.
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.27,085.38-15,655.31-

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)

Advancestosuppliers(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
GuilinSouthpharmaceuticalCo.,Ltd.26,524.88-10,989.56-
ShanghaiChaohuiPharmaceuticalCo.,Ltd.21,646.80---
SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd.20,279.70-282,467.38-
JiangxiEryeMedicineMarketingCo.,Ltd.16,726.80-729,789.16-
ShantouJinshiPowderInjectionCo.,Ltd.14,889.93---
SinopharmHoldingSubMarketingCenterCo.,Ltd.14,885.06---
TaishanQunkangPharmacyCo.,Ltd.13,150.07---
ShandongLuYaPharmaceuticalCo.,Ltd.11,436.42-1,412.52-
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.9,560.00-1,846.55-
SuzhouEryePharmaceuticalLimitedCompany9,242.76---
WinteamPharmaceuticalGroupLtd.8,877.09-9,346.82-
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.5,812.50-139,392.00-
SinopharmHoldingJilinCo.,Ltd.4,267.77---
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.778.62---
JiangsuFuxingPharmaceuticalTradingCo.,Ltd81.08-81.08-
SinopharmHoldingShanxiCo.,Ltd.--3,890,993.71-
SinopharmHoldingShanxiCo.,Ltd.--3,330,287.42-
SinopharmHoldingShanxiLvliangCo.,Ltd.--660,000.00-
SinopharmHoldingBeijingCo.,Ltd.--123,809.52-
SinopharmHoldingFujianCo.,Ltd.--225.81-
XinjiangBaitongPropertyServiceCo.,Ltd.--16,856.89-
SinopharmGroupGuizhouBloodProductsCo.,Ltd.--536,000.00-
SinopharmXinjiangPharmaceuticalCo.,Ltd.--45,432.69-
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.--103,503.41-
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.--609,418.22-
SinopharmChuanKangPharmaceutical--346,772.59-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)

Advancestosuppliers(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
Co.,Ltd.
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.--1,231.58-
ShenyangHongqiPharmaceuticalCo.,Ltd.--237,150.00-
LinyiMedicalGroupCo.,Ltd.--775,396.82-
HunanMinshengtangInvestmentCo.,Ltd.--3,349,268.77-
TaishanXiangranhuiTradeCo.,Ltd--39,450.05-
NanjingYuanguangTradingCo.,Ltd.--169,697.02-

6.AmountsduetorelatedpartiesRelatedparty

Relatedparty30June20191January2019
Accountspayable
SinopharmHoldingSubMarketingCenterCo.,Ltd.195,937,772.42104,262,822.63
ChinaNationalMedicinesCo.,Ltd.62,209,906.1648,352,935.82
SinopharmHoldingShanxiCo.,Ltd.51,758,102.97945,054.21
SinopharmHoldingShanxiCo.,Ltd.31,832,547.24-
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.28,675,206.9218,259,929.53
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.24,077,737.2710,470,003.68
SinopharmLe-Ren-TangMedicineCo.,Ltd.21,572,062.09-
SinopharmGroup21,374,852.1213,732,261.69
JiangsuWanbangPharmacyMarketingCo.,Ltd.21,363,008.2615,038,618.86
LanzhouBiotechnologyDevelopmentCo.,Ltd.20,100,000.00-
SinopharmHoldingLunanCo.,Ltd.16,885,035.5971,599.97
SinopharmHoldingShenyangCo.,Ltd.11,151,742.574,015,953.59
SinopharmHoldingInnerMongoliaCo.,Ltd.10,342,153.142,225,947.78
ShenzhenMainLuckPharmaceuticalCo.,Ltd.9,804,573.268,565,744.21
SinopharmHoldingYangzhouCo.,Ltd.9,362,416.327,630,403.88
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.8,517,232.268,402,288.43
TibetYaoyouMedicinesCo.,Ltd.8,066,785.648,346,619.80
SinopharmHoldingHubeiCo.,Ltd.7,380,255.63-
JinzhouAoHongPharmaceuticalsCo.,7,121,913.422,422,868.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefromrelatedparties(Continued)

6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)

Advancestosuppliers(Continued)30June20191January2019
RelatedpartyGrosscarryingamountProvisionforbaddebtGrosscarryingamountProvisionforbaddebt
Ltd.
SinopharmHoldingBeijingCo.,Ltd.6,747,587.357,478,006.36
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.6,179,335.72183,737.13
WinteamPharmaceuticalGroupLtd.6,143,556.766,294,519.81
SinopharmHoldingFujianCo.,Ltd.5,942,354.784,484,641.23

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.5,480,684.063,550,454.25
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.4,903,616.192,922,052.73
SinopharmHoldingJiangsuCo.,Ltd.4,884,948.336,745,253.51
ShenzhenWanweiMedicineTradingCo.,Ltd.4,704,357.804,219,138.81
ChongqingYaoyouPharmaceuticalCo.,Ltd.4,440,477.233,506,823.08
SinopharmHoldingShandongCo.,Ltd.3,795,662.5410,865.00
SinopharmHoldingPingdingshanCo.,Ltd.3,638,807.193,603,335.66
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.3,182,288.62795,448.03
YichangHumanwellPharmaceuticalCo.,Ltd.3,022,607.791,936,090.54
SinopharmHoldingXiamenCo.,Ltd.2,812,274.621,710,756.72
SinopharmHoldingChangzhouCo.,Ltd.2,732,668.551,484,634.49
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.2,630,700.01637.01
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.2,493,666.001,755,209.60
SinopharmHoldingNingxiaCo.,Ltd.2,423,060.643,007,737.39
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.2,265,517.011,519,045.91
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.2,257,975.91966,925.12
HenanWanxitangPharmacyCo.,Ltd.2,041,958.502,053,637.44
ChinaOtsukaPharmaceuticalCo.,Ltd.1,959,904.381,571,696.86
SinopharmHoldingTongliaoCo.,Ltd.1,758,793.98872,644.61
SichuanHexinPharmaceuticalCo.,Ltd.1,685,255.64454,536.00
JiangxiEryeMedicineMarketingCo.,Ltd.1,673,658.34262,590.49
SinopharmHoldingHeilongjiangCo.,Ltd.1,478,359.09922,059.45
SinopharmholdingsBeijinghuahongco.,Ltd1,373,387.431,498,601.00
SinopharmYixinPharmaceuticalCo.,Ltd.1,339,719.99175,855.31
JiangsuFuxingPharmaceuticalTradingCo.,Ltd1,274,138.60549,104.40
SinopharmHoldingHenanCo.,Ltd.1,265,401.401,441,223.83
SinopharmHoldingJinanCo.,Ltd.1,251,027.35189,250.47
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.1,225,702.70398,911.58
ShenyangHongqiPharmaceuticalCo.,Ltd.1,162,650.621,191,792.10

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
SinopharmHoldingWuxiCo.,Ltd.971,301.75492,702.04
SinopharmHoldingFuzhouCo.,Ltd.955,698.95328,729.69
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.926,405.95917,154.80
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.891,429.221,050,690.44
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.853,893.173,080,381.47
HunanDongtingPharmaceuticalCo.,Ltd.795,952.06265,365.25
ShyndecPharmaceutical696,904.24511,528.32
ShanghaiChaohuiPharmaceuticalCo.,Ltd.694,598.86311,797.36
SinopharmHoldingHulunBuirCo.,Ltd.661,633.04364,441.22
ChengduRongshengPharmacyCo.,Ltd.657,794.891,947,271.88
ChengduInstituteofBiologicalProductsCo.,Ltd.655,200.00370,800.00
SinopharmHoldingSuzhouCo.,Ltd.644,244.311,871,807.98
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.611,742.481,133,803.05
ChinaNationalPharmaceuticalIndustryCo.,Ltd.588,962.54363,778.78
SinopharmHoldingHainanCo.,Ltd.558,876.1072,738.00
GuizhouTongjitangPharmaceuticalCo.,Ltd.558,859.22342,846.28
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.498,790.10213,020.90
SinopharmHoldingChangshaCo.,Ltd.481,119.66-
HuayiPharmaceuticalCo.,Ltd.473,024.00961,440.00
SuzhouEryePharmaceuticalLimitedCompany446,987.01278,341.97
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.445,108.34350,668.16
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.431,253.60150,034.94
FoshanFengliaoxingPharmaceuticalCo.,Ltd.424,687.331,254,306.67
SinopharmGroupSouthwestMedicineCo.,Ltd.401,710.17194,982.00
WuhanZhonglianPharmaceuticalGroupCo.,Ltd.385,312.50560,483.58
SinopharmHoldingHunanCo.,Ltd.362,310.867,718.24
SinopharmHoldingLianyungangCo.,Ltd.353,590.00276,118.64
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.326,508.24149.02
SinopharmLingyunBiopharmaceutical318,353.90165,476.77

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
(Shanghai)Co.,Ltd.
ShanghaiTransfusionTechnologyCo.,Ltd.311,860.00352,100.00
SinopharmChuanKangPharmaceuticalCo.,Ltd.310,881.30472,481.64
SinopharmHoldingJinzhouCo.,Ltd.304,289.19530,995.29
JiangsuHuanghePharmaceuticalCo.,Ltd.284,275.55261,207.05
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.282,295.9355,877.68
SinopharmHoldingPutianCo.,Ltd.274,267.657,144.64
SinopharmGroupMedicineLogisticCo.,Ltd.267,956.64-
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.266,517.35-
SinopharmHoldingDezhouCo.,Ltd.251,966.42233,602.84
SinopharmGroupGuoruiMedicineCo.,Ltd.241,407.191,057,129.20
SinopharmHoldingTianjinCo.,Ltd.233,292.1715,615.31
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.231,523.37-
SinopharmHoldingYanchengCo.,Ltd.201,484.85190,168.37
SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd.165,906.67139,969.67
ShanghaiMerroPharmaceuticalCo.,Ltd.161,072.3390,275.31
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.160,457.71-
AnhuiJingfangPharmaceuticalCo.,Ltd.148,041.15165,171.12
SinopharmHoldingAnhuiCo.,Ltd.139,702.6718,589.18
FoshanDezhongPharmaceuticalCo.,Ltd.139,274.5198,835.01
SinopharmHoldingDalianCo.,Ltd.136,272.27182,516.75
SinopharmHoldingBayannaoerCo.,Ltd.131,992.42-
ChinaNationalPharmaceuticalForeignTradeCorporation122,930.63122,930.63
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.120,579.21102,693.04
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.108,541.1720,509.50
PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.106,921.1391,493.10
ChinaMedicalEquipmentShandongCo.,Ltd.106,382.80-
SinopharmLiaoningMedicalEquipmentCo.,Ltd.102,585.59-
TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup92,151.6497,099.70

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
SinopharmHoldingTaizhouCo.,Ltd.76,424.0099,508.00
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.75,016.66-
SinopharmHoldingZhejiangCo.,Ltd.72,393.6658,508.35
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.67,745.5457,148.85
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.64,687.7350,162.16
ShandongLuYaPharmaceuticalCo.,Ltd.52,819.0752,819.07
SinopharmXinjiangPharmaceuticalCo.,Ltd.49,772.389,720.00
SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd.46,000.00-
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.44,682.80102,437.80
SinopharmHoldingUlanqabCo.,Ltd.44,330.0061,246.80
ShantouJinshiPowderInjectionCo.,Ltd.39,838.05245,352.00
SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd.33,085.4425,483.57
SinopharmHoldingRizhaoCo.,Ltd.32,873.6710,236.15
BeijingHuamiaoPharmaceuticalCo.,Ltd.29,912.02372,103.86
SinopharmHoldingDalianHechengCo.,Ltd.28,687.56-
GuangdongMedi-WorldPharmaceuticalCo.,Ltd.27,719.91297,576.35
SinopharmHoldingQuanzhouCo.,Ltd.26,085.8862,947.60
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.24,871.1127,215.64
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.22,800.00-
SinopharmHoldingYongzhouCo.,Ltd.19,809.3619,858.72
SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.16,603.0216,603.02
SinopharmHoldingLiaochengCo.,Ltd.16,197.9316,197.93
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.13,891.7884,524.54
SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd.11,760.00-
SinopharmGroupShanxiCo.,Ltd.10,144.80-
SinopharmGroupAnhuiMedicalDevicesCo.,Ltd.5,200.00-
ChangchunChangshengGenePharmaceuticalCo.,Ltd.3,017.201,492.91
SinopharmHoldingOrdosCo.,Ltd.1,771.201,771.20
SinopharmHoldingShanxiJinchengCo.,1,659.943,846.13

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
Ltd.
SinopharmProspectDentech(Beijing)Co.,Ltd.1,461.991,536.00
GuilinSouthpharmaceuticalCo.,Ltd.1,210.431,210.80
SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.1,113.851,113.85
GuizhouTongjitangPharmacyChainCo.,Ltd.991.50-
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.534.20534.20
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.106.76106.76
ChongqingHaisimanPharmaceuticalCo.,Ltd.101.91101.91
SinopharmHoldingChongqingCo.,Ltd.45.0045.00
LinyiMedicalGroupCo.,Ltd.10.4710.47
SinopharmHoldingXinyuCo.,Ltd.0.010.01
SinopharmHoldingJilinCo.,Ltd.--
SinopharmHoldingShanxiInstrumentBranchCo.,Ltd.-6,309,208.47
SinopharmHoldingTianjinDistributionCenterCo.,Ltd.-35.32
SinopharmHoldingZhangzhouCo.,Ltd.-5,472.50
SinopharmSichuanPharmaceuticalCo.,Ltd.-2,741.40
SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd.-80,000.00
LanzhouInstituteofBiologicalProductsCo.,Ltd.-180,000.00
SinopharmWuhanbloodproductsCo.,Ltd.-170,387.93
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.-255,089.90
SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd.-63,081.60
JiangsuLianhuanPharmaceuticalCo.,Ltd.-1,321,298.26
QinghaiPharmaceuticalFactoryCo.,Ltd.-32,970.00
JingfukangPharmaceuticalGroupCo.,Ltd.-184,438.44
ShanghaiSinopharmPharmaceuticalCo.,Ltd.-92,610.00
FujianChentianJinlingPharmaceuticalCo.,Ltd.-505,555.00

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Accountspayable(Continued)
Relatedparty30June20191January2019
Notespayable
SinopharmHoldingSubMarketingCenterCo.,Ltd.116,044,638.24230,067,443.17
SinopharmHoldingShenyangCo.,Ltd.65,065,373.0176,894,045.21
SinopharmHoldingInnerMongoliaCo.,Ltd.25,122,678.3820,459,755.01
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.18,119,677.1313,887,657.53
SinopharmHoldingShanxiCo.,Ltd.7,725,000.0067,926,610.30

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
Relatedparty30June20191January2019
Notespayable(Continued)
SinopharmHoldingFujianCo.,Ltd.7,114,576.437,011,034.30
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.6,824,078.9514,650,495.82
ChongqingYaoyouPharmaceuticalCo.,Ltd.6,503,471.905,538,258.30
ChinaNationalMedicinesCo.,Ltd.5,851,346.2826,654,608.10
SinopharmHoldingXiamenCo.,Ltd.5,423,216.115,361,959.66
ChengduRongshengPharmacyCo.,Ltd.5,041,000.002,673,500.00
LanzhouBiotechnologyDevelopmentCo.,Ltd.4,860,000.003,000,000.00
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.4,185,619.888,148,267.06
SinopharmHoldingJinzhouCo.,Ltd.2,493,839.621,611,340.65
JiangsuWanbangPharmacyMarketingCo.,Ltd.2,439,745.894,817,408.42
SinopharmHoldingShanxiCo.,Ltd.2,082,000.0018,340,013.80
SinopharmHoldingHunanCo.,Ltd.2,043,558.463,114,143.15
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.1,856,344.00325,741.92
ShenzhenWanweiMedicineTradingCo.,Ltd.1,802,808.002,402,393.40
ShenzhenMainLuckPharmaceuticalCo.,Ltd.1,769,052.602,877,350.00
SinopharmHoldingNingxiaCo.,Ltd.1,538,808.001,413,847.22
SinopharmHoldingJinanCo.,Ltd.1,240,000.001,880,000.00
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.1,145,486.98356,554.16
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.949,700.00-
SinopharmHoldingDalianCo.,Ltd.857,791.87950,169.80
GuangdongMedi-WorldPharmaceuticalCo.,Ltd.755,306.20-
GuizhouTongjitangPharmaceuticalCo.,Ltd.632,834.40-
SinopharmHoldingChangshaCo.,Ltd.632,325.90-
AnhuiJingfangPharmaceuticalCo.,Ltd.409,923.80-
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.400,000.001,000,000.00
ShanghaiTransfusionTechnologyCo.,Ltd.301,800.00503,000.00
SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.262,800.00-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
Relatedparty30June20191January2019
Notespayable(Continued)
ShyndecPharmaceutical255,516.40475,780.40
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.213,037.00223,333.00
SinopharmHoldingQuanzhouCo.,Ltd.205,791.15170,891.70
SinopharmHoldingPutianCo.,Ltd.160,980.86614,504.48
SinopharmHoldingYanchengCo.,Ltd.160,000.00-
WinteamPharmaceuticalGroupLtd.154,417.60111,322.50
SinopharmYixinPharmaceuticalCo.,Ltd.107,472.00394,064.00
SinopharmGroup-1,183,604.16
SinopharmHoldingShanxiInstrumentBranchCo.,Ltd.-1,981,189.60
SinopharmHoldingLunanCo.,Ltd.-8,596,290.47
SinopharmHoldingYangzhouCo.,Ltd.-626,534.40
SinopharmHoldingHeilongjiangCo.,Ltd.-31,320.00
SinopharmLe-Ren-TangMedicineCo.,Ltd.-22,076,249.59
FoshanFengliaoxingPharmaceuticalCo.,Ltd.-320,310.10
SinopharmGroupGuizhouBloodProductsCo.,Ltd.-536,000.00
LanzhouInstituteofBiologicalProductsCo.,Ltd.-6,236,153.40
ShenyangHongqiPharmaceuticalCo.,Ltd.-602,172.00
ChongqingHaisimanPharmaceuticalCo.,Ltd.-275,652.00
ChinaOtsukaPharmaceuticalCo.,Ltd.-1,793,583.51
JiangsuLianhuanPharmaceuticalCo.,Ltd.-522,071.08
JingfukangPharmaceuticalGroupCo.,Ltd.-151,120.00
FujianChentianJinlingPharmaceuticalCo.,Ltd.-100,600.00

Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Otherpayables
SinopharmGroupMedicineLogisticCo.,Ltd.11,518,140.632,278,301.79
ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.10,000,000.0010,000,000.00
SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstitute5,173,229.105,943,030.80
SinopharmGroup3,842,067.593,706,406.59
SinopharmGroupShanghaiCo.,Ltd.1,690,992.161,660,431.38
ChinaNationalofTraditional&HerbalMedicineCo.,Ltd.1,300,000.001,300,000.00
SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd.387,617.70339,760.00
ShyndecPharmaceutical327,973.63327,973.63
ShanghaiBeiyiGuodapharmaceuticalCo.Ltd.195,898.04566,180.09
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited97,305.0030,000.00
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.76,540.1941,794.27
SinopharmHoldingSubMarketingCenterCo.,Ltd.37,782.3337,782.33
XinjiangBaitongPropertyServiceCo.,Ltd.33,713.74-
ChinaNationalPharmaceuticalLogisticsCo.,Ltd.10,349.7010,349.70
SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch-18,650.00
SinopharmHoldingFinancingLeaseCo.,Ltd.-4,424,970.21
HeyuanMairuiTradingCo.,Ltd.-672,396.36
ShenyangPharmaceuticalCo.,Ltd.-4,419,166.69
LinyiMedicalGroupCo.,Ltd.-51,398.45
ZhangZhenfang-2,309,999.96
PingdingshanPushengPharmaceuticalCo.,Ltd.-1,246,412.02

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.Amountsduetorelatedparties(Continued)

7.Amountsduetorelatedparties(Continued)Relatedparty

Relatedparty30June20191January2019
Contractliability
SinopharmHoldingQuanzhouCo.,Ltd.111,943.0910,088.00
SinopharmHoldingInnerMongoliaCo.,Ltd.23,021.8023,021.80
SinopharmHoldingJiangxiCo.,Ltd.22,924.9134,334.51
SinopharmHoldingGansuCo.,Ltd.21,960.00-
ChinaOtsukaPharmaceuticalCo.,Ltd.20,475.00-
ChinaNationalPharmaceuticalForeignTradeCorporation2,727.231,495.33
SinopharmHoldingChengduCo.,Ltd.851.59851.59
SinopharmHoldingChongqingCo.,Ltd.755.62755.62
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.639.921,599.80
SinopharmHoldingTaizhouCo.,Ltd.24.80-
SinopharmHoldingJinzhouCo.,Ltd.0.19-
SinopharmHoldingHunanCo.,Ltd.-87,764.97
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited-67,305.00
SinopharmXinxiangChainStoreCo.,Ltd.-0.01
SinopharmHoldingYunnanCo.,Ltd.-11,900.19
SinopharmHoldingNantongCo.,Ltd.-143,177.12
SinopharmSichuanPharmaceuticalCo.,Ltd.-1,123,087.93
SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd.-93.60
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.-3,719.00
SinopharmHealthOnlineCo.,Ltd.-416,056.44
SinopharmHoldingHulunBuirCo.,Ltd.-21,177.25
SinopharmHoldingHuaianCo.,Ltd.-19.40

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

8.Amountsduetorelatedparties(Continued)

Relatedparty

Relatedparty30June20191January2019
Interestreceivable
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.1,484,841.221,846,618.96
Interestpayable
GroupFinancialCo.98,338.84-
CNPGC35,440.2138,984.25
Othernon-currentassets
HunanMinshengtangInvestmentCo.,Ltd.-3,519,217.54
Leaseliability
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.51,477,662.49-
LerentangInvestmentGroupCo.,Ltd.15,361,691.91-
LinyiMedicalGroupCo.,Ltd.7,333,666.982,214,094.34
SinopharmHoldingFinancingLeaseCo.,Ltd.