一致Ｂ：2020年半年度财务报告（英文版）

Section XI. Financial Report

I. Audit reportsWhether the semi-annual report was audited or not

□ Yes √ No

The financial report of this semi-annual report was unaudited.

II. Financial StatementStatement in Financial Notes are carried in RMB/CNY

CONSOLIDATED BALANCE SHEET

As at 30 June 2020

(Expressed in Renminbi Yuan)

ASSETS	Note V	30 June 2020	31 December 2019
Current assets
Cash and bank balances	1	8,239,840,227.80	8,885,729,250.47
Notes receivable	2	402,639,901.74	793,301,688.64
Accounts receivable	3	13,892,695,134.41	10,712,983,544.18
Receivable financing	4	399,889,650.01	446,342,588.46
Advances to suppliers	5	415,037,472.63	389,828,785.54
Other receivables	6	613,031,947.42	501,958,841.43
Incl: Dividend receivable		-	834,914.61
Inventories	7	5,344,906,740.17	5,063,274,143.26
Other current assets	8	84,049,888.58	102,207,498.20
Total current assets		29,392,090,962.76	26,895,626,340.18
Non-current assets
Long-term equity investments	9	2,142,161,636.01	2,105,114,410.88
Other equity instrument investment	10	116,021,000.00	116,021,000.00
Other non-current financial assets	11	120,972,350.24	140,000,000.00
Investment properties	12	130,090,605.82	138,900,358.30
Fixed assets	13	716,847,033.81	708,000,172.63
Construction in progress	14	29,000,528.39	31,582,575.84
Right-of-use assets	15	2,072,151,887.64	1,994,757,862.07
Intangible assets	16	608,062,260.25	374,788,799.48
Goodwill	17	1,564,931,605.00	1,010,057,927.17
Long-term prepaid expenses	18	356,074,254.02	373,527,968.14
Deferred tax assets	19	87,459,888.93	63,110,829.12
Other non-current assets	20	333,986,190.43	77,354,970.39
Total non-current assets		8,277,759,240.54	7,133,216,874.02
Total assets		37,669,850,203.30	34,028,843,214.20

The accompanying notes form an integral part of these financial statements

CONSOLIDATED BALANCE SHEET (Continued)

As at 30 June 2020

(Expressed in Renminbi Yuan)

LIABILITIES	Note V	30 June 2020	31 December 2019
Current liabilities
Short-term borrowings	21	3,710,647,467.19	1,453,018,300.01
Notes payable	22	4,691,825,761.98	5,555,697,557.53
Accounts payable	23	8,077,705,277.54	6,703,967,826.54
Contract liabilities	24	287,186,619.13	303,194,940.70
Employee benefits payable	25	221,834,256.19	259,640,813.10
Tax payable	26	293,029,278.65	253,379,524.34
Other payables	27	1,794,827,639.44	1,822,364,637.62
Incl: Interest payable		16,242,505.92	23,632,632.90
Dividend payable		11,831,814.95	6,389,320.96
Non-current liabilities due within one year	28	616,449,909.74	611,917,847.37
Other current liabilities	29	836,086.14	749,710.19
Total current liabilities		19,694,342,296.00	16,963,931,157.40
Non-current liabilities
Long-term borrowings	30	-	-
Lease liabilities	31	1,216,076,164.93	1,208,453,029.51
Long-term payables	32	800,000.00	800,000.00
Long-term employee benefits payable	33	1,390,000.00	1,433,000.00
Deferred income	34	85,995,054.01	88,704,272.88
Deferred tax liabilities	19	180,948,720.64	118,284,962.77
Other non-current liabilities	35	472,489,632.40	73,256,514.93
Total non-current liabilities		1,957,699,571.98	1,490,931,780.09
Total liabilities		21,652,041,867.98	18,454,862,937.49

The accompanying notes form an integral part of these financial statements

CONSOLIDATED BALANCE SHEET (Continued)

As at 30 June 2020

(Expressed in Renminbi Yuan)

SHAREHOLDERS’ EQUITY	Note V	30 June 2020	31 December 2019
Shareholders’ equity
Share capital	36	428,126,983.00	428,126,983.00
Capital surplus	37	4,372,912,064.89	4,470,766,959.44
Other comprehensive income	38	46,039,529.66	45,917,342.77
Surplus reserve	39	214,063,491.50	214,063,491.50
Retained earnings	40	8,138,841,049.96	7,752,265,659.17
Shareholders’ equity attributable to shareholders of the parent		13,199,983,119.01	12,911,140,435.88
Non-controlling interests		2,817,825,216.31	2,662,839,840.83
Total shareholders’ equity		16,017,808,335.32	15,573,980,276.71
Total liabilities and shareholders’ equity		37,669,850,203.30	34,028,843,214.20

The accompanying notes form an integral part of these financial statements

The financial statements have been signed by:

Legal representative: Financial controller: Head of Accounting

Department:

CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note V		For the six months ended 30 June 2020	For the six months ended 30 June 2019
Operating revenue	41		27,169,940,188.52	25,599,198,815.30
Less: Operating costs	41		23,971,029,719.44	22,712,876,604.19
Taxes and surcharges	42		69,505,309.32	62,711,394.37
Selling expenses	43		1,728,738,818.60	1,541,285,047.94
Administrative expenses	44		443,287,144.92	391,848,337.91
Finance costs	45		65,313,829.62	64,987,758.92
Incling: Interest cost			133,350,510.68	134,795,237.41
Interest income			65,512,550.22	60,641,102.49
Add: Other incomes	46		35,855,298.32	16,490,919.02
Investment income	47		105,206,349.26	126,873,486.44
Incling: Investment income from associates			133,604,904.16	169,142,289.99
Income from the derecognition of financial assets measured at amortised cost			(33,507,102.64)	(42,268,803.55)
Credit impairment losses	48		(21,580,231.52)	(11,434,101.13)
Impairment losses	49		(1,743,888.30)	(125,554.34)
Gain on disposal of assets	50		4,305,324.80	(29,725.44)
Operating profits			1,014,108,219.18	957,264,696.52
Add: Non-operating income	51		5,219,980.22	3,673,692.45
Less: Non-operating expenses	52		3,008,892.52	1,749,450.08
Total profit			1,016,319,306.88	959,188,938.89
Less: Income tax expenses	53		210,106,764.35	192,124,358.84
Net profit			806,212,542.53	767,064,580.05
Net Profit from continuing operations			806,212,542.53	767,064,580.05
Net profit attributable to owners of the parent			643,451,580.59	649,154,414.55
Profit or loss of non-controlling interests			162,760,961.94	117,910,165.50

CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note V	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Other comprehensive income, net of tax		122,186.89	-
Other comprehensive income, net of tax, attributable to owners of the parent		122,186.89	-
Other comprehensive income that will be reclassified to profit or loss		122,186.89	-
Other comprehensive income using the equity method that will be reclassified to profit or loss		122,186.89	-
Total comprehensive income		806,334,729,42	767,064,580,05
Incl: Total comprehensive income attributable to owners of the parent		643,573,767.48	649,154,414.55
Total comprehensive income attributable to non-controlling interests		162,760,961.94	117,910,165.50
Earnings per share
Basic earnings per share		1.50	1.52
Diluted earnings per share		1.50	1.52

The accompanying notes form an integral part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2020	Shareholders’ equity attributable to shareholders of the parent						Non-controlling interests	Total equity
	Share capital	Capital surplus	Other comprehensive income	Surplus reserve	Retained earnings	Subtotal
Closing balance of the preceding year	428,126,983.00	4,363,007,511.57	45,917,342.77	214,063,491.50	7,755,295,537.08	12,806,410,865.92	2,553,426,974.31	15,359,837,840.23
Business combination involving enterprises under common control	-	107,759,447.87	-	-	(3,029,877.91)	104,729,569.96	109,412,866.52	214,142,436.48
Opening balance of the current year	428,126,983.00	4,470,766,959.44	45,917,342.77	214,063,491.50	7,752,265,659.17	12,911,140,435.88	2,662,839,840.83	15,573,980,276.71
Movements in the current year	-	(97,854,894.55)	122,186.89	-	386,575,390.79	288,842,683.13	154,985,375.48	443,828,058.61
(1) Total comprehensive income	-	-	122,186.89	-	643,451,580.59	643,573,767.48	162,760,961.94	806,334,729.42
(2) Capital paid and reduced by owners	-	(97,854,894.55)	-	-	-	(97,854,894.55)	10,931,276.73	(86,923,617.82)
1.Others	-	(97,854,894.55)	-	-	-	(97,854,894.55)	10,931,276.73	(86,923,617.82)
(3) Profit distribution	-	-	-	-	(256,876,189.80)	(256,876,189.80)	(18,706,863.19)	(275,583,052.99)
1.Distribution to equity owners	-	-	-	-	(256,876,189.80)	(256,876,189.80 )	(18,706,863.19)	(275,583,052.99)
Closing balance of the current year	428,126,983.00	4,372,912,064.89	46,039,529.66	214,063,491.50	8,138,841,049.96	13,199,983,119.01	2,817,825,216.31	16,017,808,335.32

The accompanying notes form an integral part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY(Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2019	Shareholders’ equity attributable to shareholders of the parent					Non-controlling interests	Total equity
	Share capital	Capital surplus	Surplus reserve	Retained earnings	Subtotal
Closing balance of the preceding year	428,126,983.00	4,320,984,981.51	214,063,491.50	6,655,257,147.27	11,618,432,603.28	2,287,343,889.77	13,905,776,493.05
Business combination involving enterprises under common control	-	107,759,447.87	-	328,013.78	108,087,461.65	110,114,216.72	218,201,678.37
Opening balance of the current year	428,126,983.00	4,428,744,429.38	214,063,491.50	6,655,585,161.05	11,726,520,064.93	2,397,458,106.49	14,123,978,171.42
Movements in the current year	-	42,424,747.00	-	477,903,621.35	520,328,368.35	131,363,406.60	651,691,774.95
(1) Total comprehensive income	-	-	-	649,154,414.55	649,154,414.55	117,910,165.50	767,064,580.05
(2) Capital paid and reduced by owners	-	42,424,747.00	-	-	42,424,747.00	14,780,000.00	57,204,747.00
1.Capital injection by owners	-	-	-	-	-	14,780,000.00	14,780,000.00
2.Others	-	42,424,747.00	-	-	42,424,747.00	-	42,424,747.00
(3) Profit distribution	-	-	-	(171,250,793.20)	(171,250,793.20)	(1,326,758.90)	(172,577,552.10)
1.Distribution to equity owners	-	-	-	(171,250,793.20)	(171,250,793.20)	(1,326,758.90)	(172,577,552.10)
Closing balance of the current year	428,126,983.00	4,471,169,176.38	214,063,491.50	7,133,488,782.40	12,246,848,433.28	2,528,821,513.09	14,775,669,946.37

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note V	For the six months ended 30 June 2020	For the six months ended 30 June 2019
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the rendering of services		27,735,103,033.02	26,078,970,809.97
Receipts of taxes and surcharges refunds		8,145,306.66	2,721,287.63
Cash receipts related to other operating activities	54	707,202,110.00	309,460,457.97
Total cash inflows from operating activities		28,450,450,449.68	26,391,152,555.57
Cash payments for goods and services		24,305,374,637.56	22,943,691,763.40
Cash payments to and on behalf of employees		1,278,474,969.40	1,145,240,067.80
Cash paid for all types of taxes		724,722,540.88	640,484,280.01
Cash payments relating to other operating activities	54	703,674,258.49	522,582,323.47
Total cash outflows from operating activities		27,012,246,406.33	25,251,998,434.68
Net cash flows from operating activities	55	1,438,204,043.35	1,139,154,120.89
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments		19,027,649.76	-
Cash receipts from returns on investments		84,166,102.10	20,129,463.78
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		4,352,536.98	807,205.52
Cash receipts related to other investing activities	54	22,040,000.00	260,600,000.00
Total cash inflows from investing activities		129,586,288.84	281,536,669.30

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note V	For the six months ended 30 June 2020	For the six months ended 30 June 2019
2.CASH FLOWS FROM INVESTING ACTIVITIES (Continued)
Cash payments for acquisition of fixed assets, intangible assets and other long-term assets		116,186,214.91	114,284,920.35
Cash payments for investments		20,545,399.15	43,674,685.30
Net cash payments for acquisition of subsidiaries and other business units		659,201,491.65	-
Cash payments relating to other investing activities	54	-	229,093,125.00
Total cash outflows from investing activities		795,933,105.71	387,052,730.65
Net cash flows from investing activities		(666,346,816.87)	(105,516,061.35)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others		-	14,780,000.00
Incl: Cash receipts from capital contributions from non-controlling interests of subsidiaries		-	14,780,000.00
Cash receipts from borrowings		589,920,037.57	104,700,000.00
Cash receipts relating to other financing activities	54	334,349,840.06	3,512,659.71
Total cash inflows from financing activities		924,269,877.63	122,992,659.71
Cash repayments for debts		284,200,000.00	161,261,634.53
Cash payments for distribution of dividends or profit and interest expenses		432,276,651.88	344,581,712.62
Incl: Dividends or profit paid to non-controlling shareholders of subsidiaries		10,890,773.58	1,326,758.90
Cash payments relating to other financing activities	54	1,405,111,664.26	510,162,167.74
Total cash outflows from financing activities		2,121,588,316.14	1,016,005,514.89
Net cash flows from financing activities		(1,197,318,438.51)	(893,012,855.18)

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note V	For the six months ended 30 June 2020	For the six months ended 30 June 2019
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(47,935.97)	(176,567.25)
5.NET INCREASE IN CASH AND CASH EQUIVALENTS	55	(425,509,148.00)	140,448,637.11
Add: Cash and cash equivalents at beginning of the year		8,426,071,170.16	7,634,936,037.30
6.CASH AND CASH EQUIVALENTS AT END OF YEAR	55	8,000,562,022.16	7,775,384,674.41

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET

As at 30 June 2020

(Expressed in Renminbi Yuan)

ASSETS	Note XIV	30 June 2020	31 December 2019
Current assets
Cash and bank balances		3,783,035,653.60	2,909,417,289.71
Notes receivable		-	14,900,068.42
Accounts receivable	1	640,874,941.28	571,544,784.65
Receivables financing		14,618,645.61	30,194,682.11
Advances to suppliers		1,620,450.15	7,996,243.28
Other receivables	2	1,669,369,213.60	1,928,941,595.38
Incl: Dividend receivable		5,664,636.60	834,914.61
Inventories		163,941,874.00	169,422,075.78
Other current assets		39,482.38	39,482.38
Total current assets		6,273,500,260.62	5,632,456,221.71
Non-current assets
Long-term equity investments	3	7,729,748,342.18	7,698,756,525.83
Other non-current financial assets		120,972,350.24	140,000,000.00
Investment properties		1,468,165.30	1,484,198.56
Fixed assets		13,758,603.80	14,763,656.62
Right-of-use assets		5,713,745.04	6,217,504.50
Intangible assets		5,338,870.03	5,838,737.17
Long-term deferred expenses		5,154,262.50	6,130,534.55
Deferred tax assets		9,236,448.42	9,327,850.53
Other non-current assets		14,160,535.79	9,000,000.00
Total non-current assets		7,905,551,323.30	7,891,519,007.76
Total assets		14,179,051,583.92	13,523,975,229.47

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET (Continued)

As at 30 June 2020

(Expressed in Renminbi Yuan)

LIABILITIES		30 June 2020	31 December 2019
Current liabilities
Short-term borrowings		367,293,866.62	121,350,644.36
Notes payable		433,478,121.14	751,577,900.22
Accounts payable		420,416,081.88	322,436,681.01
Contract liabilities		11,170,128.91	7,293,184.46
Employee benefits payable		27,706,738.19	30,469,777.88
Tax payables		19,296,823.49	22,909,124.90
Other payables		2,145,057,270.41	2,120,794,765.05
Incl: Interest payable		743,724.90	861,110.53
Non-current liabilities due within one year		1,033,492.62	32,640,325.77
Other current liabilities		251,426.46	338,196.81
Total current liabilities		3,425,703,949.72	3,409,810,600.46
Non-current liabilities
Lease liabilities		4,988,812.95	5,461,257.38
Long-term payables		800,000.00	800,000.00
Long-term employee benefits payable		21,000.00	-
Deferred income		1,052,178.42	1,276,698.66
Other non-current liabilities		107,507,794.94	-
Total non-current liabilities		114,369,786.31	7,537,956.04
Total liabilities		3,540,073,736.03	3,417,348,556.50

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET (Continued)

As at 30 June 2020

(Expressed in Renminbi Yuan)

SHAREHOLDERS’ EQUITY		30 June 2020	31 December 2019
Shareholders’ equity
Share capital		428,126,983.00	428,126,983.00
Capital surplus		4,468,399,442.76	4,468,385,307.32
Other comprehensive income		(11,179.30)	(133,366.19)
Surplus reserve		214,063,491.50	214,063,491.50
Retained earnings		5,528,399,109.93	4,996,184,257.34
Total shareholders’ equity		10,638,977,847.89	10,106,626,672.97
Total liabilities and shareholders’ equity		14,179,051,583.92	13,523,975,229.47

The accompanying notes form an integral part of these financial statements

COMPANY INCOME STATEMENT

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

	Note XIV	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Operating revenue	4	1,772,487,363.56	2,008,004,563.30
Less: Operating costs	4	1,689,564,062.24	1,921,272,394.76
Taxes and surcharges		2,582,640.86	2,519,247.99
Selling expenses		31,376,377.04	31,052,044.81
Administrative expenses		43,060,479.75	38,056,806.31
Finance costs		(43,838,117.34)	(30,577,119.28)
Incl: Interest cost		21,928,061.34	21,387,846.09
Interest income		66,569,319.85	52,479,722.42
Add: Other incomes		629,921.47	332,764.13
Investment income	5	749,633,760.78	606,109,545.19
Incl: Investment income from associates		133,549,495.38	181,280,533.11
Income from the derecognition of financial assets measured at amortised cost		(1,526,968.25)	(2,178,875.28)
Credit impairment losses		(976,022.96)	(2,365,765.08)
Impairment losses		(242,731.87)	(102,112.84)
Gain on disposal of assets		-	(26,074.52)
Operating profits		798,786,848.43	649,629,545.59
Add: Non-operating income		1,596.77	46,069.40
Less: Non-operating expenses		52,122.72	-
Total profit		798,736,322.48	649,675,614.99
Less: Income tax expenses		9,645,280.09	8,999,224.52
Net profit		789,091,042.39	640,676,390.47
Net Profit from continuing operations		789,091,042.39	640,676,390.47
Other comprehensive income, net of tax		122,186.89	-
Other comprehensive income that will be reclassified to profit or loss		122,186.89	-
Other comprehensive income using the equity method that will be reclassified to profit or loss		122,186.89	-
Total comprehensive income		789,213,229.28	640,676,390.47

The accompanying notes form an integral part of these financial statements

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2020	Share capital	Capital surplus	Other comprehensive income	Surplus reserve	Retained earnings	Total equity
Closing balance of the preceding year	428,126,983.00	4,468,385,307.32	(133,366.19)	214,063,491.50	4,996,184,257.34	10,106,626,672.97
Opening balance of the current year	428,126,983.00	4,468,385,307.32	(133,366.19)	214,063,491.50	4,996,184,257.34	10,106,626,672.97
Movements in the current year	-	14,135.44	122,186.89	-	532,214,852.59	532,351,174.92
(1) Total comprehensive income	-	-	122,186.89	-	789,091,042.39	789,213,229.28
(2) Capital paid and reduced by owners	-	14,135.44	-	-	-	14,135.44
1.Others	-	14,135.44	-	-	-	14,135.44
(3) Profit distribution	-	-	-	-	(256,876,189.80)	(256,876,189.80)
1.Distribution to equity owners	-	-	-	-	(256,876,189.80)	(256,876,189.80)
Closing balance of the current year	428,126,983.00	4,468,399,442.76	(11,179.30)	214,063,491.50	5,528,399,109.93	10,638,977,847.89

The accompanying notes form an integral part of these financial statements

COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2019	Share capital	Capital surplus	Surplus reserve	Retained earnings	Total equity
Closing balance of the preceding year	428,126,983.00	4,426,362,777.26	214,063,491.50	3,956,556,754.02	9,025,110,005.78
Opening balance of the current year	428,126,983.00	4,426,362,777.26	214,063,491.50	3,956,556,754.02	9,025,110,005.78
Movements in the current year	-	42,424,747.00	-	469,425,597.27	511,850,344.27
(1) Total comprehensive income	-	-	-	640,676,390.47	640,676,390.47
(2) Capital paid and reduced by owners	-	42,424,747.00	-	-	42,424,747.00
1.Others	-	42,424,747.00	-	-	42,424,747.00
(3) Profit distribution	-	-	-	(171,250,793.20)	(171,250,793.20)
1.Distribution to equity owners	-	-	-	(171,250,793.20)	(171,250,793.20)
Closing balance of the current year	428,126,983.00	4,468,787,524.26	214,063,491.50	4,425,982,351.29	9,536,960,350.05

The accompanying notes form an integral part of these financial statements

COMPANY CASH FLOW STATEMENT

For the six months ended 30 June 2020

(Expressed in Renminbi Yuan)

		For the six months ended 30 June 2020	For the six months ended 30 June 2019
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the rendering of services		1,959,922,054.30	2,136,424,520.77
Cash receipts related to other operating activities		56,400,693.21	18,658,823.82
Total cash inflows from operating activities		2,016,322,747.51	2,155,083,344.59
Cash payments for goods and services		1,808,113,785.36	1,905,147,658.61
Cash payments to and on behalf of employees		56,731,764.12	48,424,818.87
Cash paid for all types of taxes		34,728,524.87	27,913,893.13
Cash payments relating to other operating activities		36,411,653.42	17,265,038.12
Total cash outflows from operating activities		1,935,985,727.77	1,998,751,408.73
Net cash flows from operating activities		80,337,019.74	156,331,935.86
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments		32,664,096.76	-
Cash receipts from returns on investments		252,042,116.93	55,106,832.79
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		-	119,000.00
Cash receipts related to other investing activities		1,575,127,297.73	996,340,000.00
Total cash inflows from investing activities		1,859,833,511.42	1,051,565,832.79
Cash payments for acquisition of fixed assets, intangible assets and other long-term assets		10,386,641.64	5,983,680.11
Cash payments for investments
Cash payments relating to other investing activities		1,309,671,874.11	1,200,340,000.00
Total cash outflows from investing activities		1,320,058,515.75	1,206,323,680.11
Net cash flows from investing activities		539,774,995.67	-154,757,847.32

The accompanying notes form an integral part of these financial statements

Notes to financial statementsFor the six months ended 30 June 2020

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

		For the six months ended 30 June 2020	For the six months ended 30 June 2019
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings		32,264,821.52	10,000,000.00
Cash receipts relating to other financing activities		16,113,679,647.75	11,037,461,719.13
Total cash inflows from financing activities		16,145,944,469.27	11,047,461,719.13
Cash repayments for debts		43,700,000.00	10,000,000.00
Cash payments for distribution of dividends or profit and interest expenses		272,655,694.83	182,679,899.11
Cash payments relating to other financing activities		15,582,101,156.66	10,463,180,682.33
Total cash outflows from financing activities		15,898,456,851.49	10,655,860,581.44
Net cash flows from financing activities		247,487,617.78	391,601,137.69
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(47,935.97)	(176,567.25)
5. NET INCREASE IN CASH AND CASH EQUIVALENTS		867,551,697.22	392,998,658.98
Add: Cash and cash equivalents at beginning of the year		2,894,333,956.38	1,817,654,598.01
6. CASH AND CASH EQUIVALENTS AT END OF YEAR		3,761,885,653.60	2,210,653,256.99

The accompanying notes form an integral part of these financial statements

Notes to financial statementsFor the six months ended 30 June 2020

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

III. Profile of the Company

(1) Historical development and basic information

As approved by the People’s Government of Shenzhen (SFBF (1993) No.356), China National AccordMedicines Corporation Ltd. (hereinafter referred to as the “the Company”), formerly known as ShenzhenHealth Mineral Water Corp., Ltd., was registered as a joint stock liability limited company on 1 February1993 through stock transformation. In March 1993, with the approval from the Shenzhen Branch of thePeople’s Bank of China, the Company issued 30 million A shares (including 16.5 million public shares, 3.5million employee shares and 10 million corporation shares) and 20 million B shares. After this issuance,the Company’s share capital was RMB105 million. Through convert capital surplus into share capital,bonus issues and issuance of shares for years, the share capital of the Company increased toRMB428.13 million as at 30 June 2019.

In November 2000, the Company entered into an Assets Exchange Agreement with ShenzhenInvestment Management Company, the original major shareholder of the Company, to exchange all theassets and liabilities of the Company as of 31 August 2000 for Shenzhen Investment ManagementCompany’s 100% equity interests in 11 pharmaceutical companies and certain properties as well as 51%equity interests in Shenzhen Tefa Modern Computer Co., Ltd. The above asset exchange proposal wasapproved by shareholders in the Second Extraordinary General Meeting on December 29, 2000. Thetransaction was completed on 8 January 2001.

On 18 February 2004, the Company’s original major shareholder, Shenzhen Investment ManagementCompany, entered into a Stock Transfer Agreement with Sinopharm Group Co., Ltd. (hereinafter referredto as “Sinopharm Group”) to transfer its 43.33% shares in the Company to Sinopharm Group. The legalprocedures of the above equity transfer were completed on 9 December 2004. At the same time, asapproved by the State-owned Assets Supervision and Administration Commission of the State Council(GZCQ (2004) No.525) and the China Securities Regulatory Commission (ZJGSZ (2004) No.94), thenature of these shares was changed from state-owned stock to state-owned legal entity stock andSinopharm Group became the largest shareholder of the Company.

On 14 April 2006, the Company’s proposal on reformation of segregated stocks was approved. To gainliquidity for the restricted stocks of the Company, the holders of the restricted stocks of the Companyagreed to pay the following consideration: based on the stock registration as of 27 April 2006, theCompany issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A shares to liquidatedA-shareholders which went public on the same day. After this bonus issue, the total number of shares ofthe Company remained unchanged with corresponding changes in the composition of shareholdings.

On March 14 2014, the company issued 74,482,543 ordinary shares (A shares) through the non-publicoffering. Par value per share is RMB1.00. The shares shall not be transferred within 36 months since theissue day. The total number of shares of the Company was 362,631,943 since the date of issue.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

III. Profile of the Company (Continued)

(1) Historical development and basic information (Continued)

As of 31 October 2016, the company issued RMB65.50 million ordinary shares (A shares) through thenon-public offering. Par value per share is RMB1.00. Through the non-public offering, the Companyacquired the companies under common control, including Sinopharm Holding Guoda Pharmacy Co., Ltd.(“Guoda Pharmacy”), Foshan Nanhai Medicine Group Co., Ltd.(“Foshan Nanhai”), Guangdong SouthPharmaceutical Foreign Trade Co., Ltd. (“South Pharma & Trade”), Guangdong Dong Fang Uptodate &Special Medicines Co., Ltd. (“Guangdong Uptodate & Special Medicines”) by issuing shares and raisedsupporting funds by issuing shares to Ping An Asset Management Co., Ltd.(“Ping An AssetManagement”) to acquire non-controlling interest of South Pharma & Trade. The relevant shares weresuccessfully issued and listed on 5 January 2017.

As of 30 June 2020, the total share capital was RMB428.13 million.

The Company is registered with Shenzhen Administration for Industry & Commerce. Its Uniform SocialCredit Code is 91440300192186267U. The operation period of the Company is from 2 August 1986 tothe long term. The registered capital of the Company is RMB428.13 million. The legal representative ofthe Company is Lin Zhaoxiong.

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

the wholesale of traditional Chinese medicine preparations, bulk pharmaceutical drugs, chemicalpreparations, bulk antibiotic drugs, antibiotic preparations, biochemical drugs, biological products(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations, narcotic drugs,toxic drugs for medical use, protein assimilation preparation and peptide hormones; trading of dietarysupplement; research, development and consultation services of pharmaceutical packaging materialsand pharmaceutical industry products; industrial investment holding; domestic trade; material supply andmarketing industry (other than special licensing); sale of ambulances; trade of second-class and third-class medical equipment; project investment; property management and leasing of self-ownedproperties; pharmacovigilance and medical information consulting; parking operation; logistics andrelated services; package agency business; logistic design; import and export services (excludingprojects that are prohibited by the country; and limited projects has to be approved before operating).

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

III. Profile of the Company (Continued)

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

Pharmaceutical Group Corporation (“CNPGC”) , respectively.

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

on 29 August 2020.

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

consolidation scope are shown in Note VIII.

IV. Basis of preparation

The financial statements were prepared in accordance with the Basic Standard and specific standards ofAccounting Standards for Business Enterprises issued by the Ministry of Finance and the specificaccounting standards, application guidance, interpretation and other relevant regulations issued oramended thereafter (hereafter collectively referred to as “Accounting Standards for BusinessEnterprises” or “CAS”). Except for certain financial instruments, the financial statements have beenprepared using the historical cost as the principle of measurement. Where assets are impaired,provisions for asset impairment are made in accordance with the relevant requirements.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

V. Summary of significant accounting policies and accounting estimates

The Group determines the specific accounting policies and estimates based on its features of productionand operation, primarily comprising the methods of provision for expected credit losses on receivables,valuation of inventories, depreciation of fixed assets and amortisation of intangible assets, themeasurement model of investment properties, recognition and measurement of revenue, etc.

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

The financial statements of the Company for the year ended 30 June 2020 are in compliance withAccounting Standards for Business Enterprises, and truly and completely present the financial positionof the Group and the Company as of 30 June 2020 and the operating results, cash flows and otherinformation for the six months ended 30 June 2020 of the Group and the Company.

(2) Accounting year

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

(3) Functional currency

The Group’s functional and presentation currency is Renminbi (RMB). The currency unit is RMBYuan unless otherwise stated.

(4) Business combinations

Business combinations are classified into business combinations involving enterprises under commoncontrol and business combinations not involving enterprises under common control.

(a) Business combinations involving enterprises under common control

A business combination involving enterprises under common control is a business combination in whichall of the combining enterprises are ultimately controlled by the same party or parties both before andafter the combination, and that control is not transitory. In a business combination involving enterprisesunder common control, the enterprise that, at the combination date, obtains control of another combiningenterprise is the absorbing enterprise, while that other combining enterprise is the enterprise beingabsorbed. The combination date is the date on which the absorbing enterprise effectively obtainscontrol on the enterprise being absorbed.

The assets and liabilities (including goodwill arising from the ultimate controlling party’s acquisition of theenterprise being absorbed) that are obtained by the absorbing enterprise in a business combinationinvolving enterprises under common control shall be measured on the basis of their carrying amounts inthe financial statements of the ultimate controlling party at the combination date. The differencebetween the carrying amount of the net assets obtained and the carrying amount of the considerationpaid for the combination (or the aggregate face value of shares issued as consideration) shall beadjusted to capital premium under capital reserves and the balance transferred from capital reservesunder the old accounting system. If the capital premium is not sufficient to absorb the difference, anyexcess shall be adjusted against retained earnings.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(4) Business combinations (Continued)

(b) Business combinations involving enterprises not under common control

A business combination not involving enterprises under common control is a business combination inwhich all of the combining enterprises are not ultimately controlled by the same party or parties bothbefore and after the combination. In a business combination not involving enterprises under commoncontrol, the enterprise that, on the acquisition date, obtains control of another combining enterprise is theacquirer, while that other combining enterprise is the acquiree. The acquisition date is the date onwhich the acquirer effectively obtains control of the acquiree.

The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquiredin the business combination at their fair values on the acquisition date.

Goodwill is initially recognised and measured at cost, being the excess of the aggregate of the fair valueof the consideration transferred (or the fair value of the equity securities issued) and any fair value of theGroup’s previously held equity interest in the acquiree over the Group’s interest in the fair value of theacquiree’s net identifiable assets. After initial recognition, goodwill is measured at cost less anyaccumulated impairment losses. Where the aggregate of the fair value of the consideration transferred(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equityinterest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net identifiableassets, the Group reassesses the measurement of the fair value of the acquiree’s identifiable assets,liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value ofthe equity securities issued), together with the fair value of the Group’s previously held equity interest inthe acquiree. If after that reassessment, the aggregate of the fair value of the consideration transferred(or the fair value of the equity securities issued) and the Group’s previously held equity interest in theacquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiable assets,the Group recognises the remaining difference in profit or loss.

Where the business combination not involving enterprises under common control is achieved in stages,the acquirer’s previously held equity interests in the acquiree are remeasured at the fair value on theacquisition date, with the difference between the fair value and carrying amount recognised asinvestment income for the current period. If the acquirer’s previously held equity interests of the acquireeinvolve other comprehensive income (“OCI”) under the equity method, the accounting treatment isconducted on the same basis as would have been required if the investee had directly disposed of therelated assets or liabilities, and the changes in shareholders’ equity other than net profit or loss, OCI andprofit distributions are charged to profit or loss for the current period on the acquisition date. For financialassets at fair value through OCI held before the acquisition date, changes in fair value that wereaccumulated through OCI will transfer to retained earnings.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(5) Preparation of consolidated financial statements

The scope of the consolidated financial statements, which include the financial statements of theCompany and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity thatis controlled by the Company (such as an enterprise, a deemed separate entity, or a structured entitycontrolled by the Company).

In the preparation of the consolidated financial statements, the financial statements of subsidiaries areprepared for the same accounting year as the Company, using consistent accounting policies. Allintra-group assets and liabilities, equity, income, expenses and cash flows relating to transactionsbetween members of the Group are eliminated in full on consolidation.

Where the loss for the current period attributable to non-controlling interests of a subsidiary exceeds thenon-controlling interests of the opening balance of equity of the subsidiary, the excess shall still beallocated against the non-controlling interests.

For subsidiaries acquired through business combinations not involving entities under common control,the financial performance and cash flows of the acquiree shall be consolidated from the date on whichthe Group obtains control, and continue to be consolidated until the date such control ceases. Whilepreparing the consolidated financial statements, the Group shall adjust the subsidiary’s financialstatements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilitiesrecognised on the acquisition date.

For subsidiaries acquired through business combinations involving entities under common control, thefinancial performance and cash flows of the entity being absorbed shall be consolidated from thebeginning of the period in which the combination occurs. While preparing the comparative financialstatements, adjustments are made to related items in the financial statements for the prior period as ifthe reporting entity after the combination has been in existence since the date the ultimate controllingparty first obtained the control.

The Group reassesses whether or not it controls an investee if any change in facts and circumstancesindicates that there are changes to one or more of the three elements of control.

When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-termequity investment in the subsidiary in stages, if each of the multiple transactions does not form part of abundled transaction, the transactions conducted before the loss of control of the subsidiary areaccounted for in accordance with the accounting policy for partial disposal of the equity investment insubsidiaries where control is retained. If each of the multiple transactions forms part of a bundledtransaction which eventually results in the loss of control in the subsidiary, these multiple transactionsare accounted for as a single transaction. In the consolidated financial statements, the differencebetween the consideration received and the corresponding proportion of the subsidiary’s net assets(calculated continuously from the acquisition date) in each transaction prior to the loss of control shall berecognised in other comprehensive income and transferred to profit or loss when the parent eventuallyloses control of the subsidiary.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(6) Cash and cash equivalents

Cash comprises the Group’s cash on hand and bank deposits that can be readily withdrawn on demand.Cash equivalents are short-term, highly liquid investments that are readily convertible into knownamounts of cash, and are subject to an insignificant risk of changes in value.

(7) Foreign currency transactions and foreign currency translation

The Group translates foreign currency transactions into its functional currency.

At the balance sheet date, monetary items denominated in foreign currencies are translated into RMBusing the spot exchange rates on the balance sheet date. Exchange differences arising from thesetranslations are recognised in profit or loss for the current period, except for those attributable to foreigncurrency borrowings that have been taken out specifically for the acquisition or construction of qualifyingassets, which are capitalized as part of the cost of those assets. Non-monetary items denominated inforeign currencies that are measured at historical cost are translated at the balance sheet date using thespot exchange rates at the dates of the transactions.

Foreign currency cash flows are translated using the spot exchange rates prevailing on the dates of cashflows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.

(8) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity.

Recognition and derecognition

The Group recognises a financial asset or a financial liability when it becomes a party to the contractualprovisions of a financial instrument.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(8) Financial instruments (Continued)

Recognition and derecognition (Continued)

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financialassets) is primarily derecognised (i.e., removed from the Group’s consolidated balance sheet) when:

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

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

assumed an obligation to pay the received cash flows in full without material delay to a thirdparty under a “pass-through” arrangement; and either (i) has transferred substantially all therisks and rewards of the financial asset, or (ii) has neither transferred nor retained substantiallyall the risks and rewards of the asset, but has transferred control of the financial asset.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled, orexpires. When an existing financial liability is replaced by another from the same lender onsubstantially different terms, or the terms of an existing liability are substantially modified, such anexchange or modification is treated as a derecognition of the original liability and a recognition of a newliability, and the difference between the respective carrying amounts is recognised in profit or loss.

Regular way purchases and sales of financial assets are recognised and derecognised using trade dateaccounting. Regular way purchases or sales are purchases or sales of financial assets that requiredelivery within the period generally established by regulation or convention in the marketplace. Thetrade date is the date that the Group committed to purchase or sell a financial asset.

Classification and measurement of financial assets

The classification of financial assets at initial recognition depends on the financial asset’s contractualcash flow characteristics and the Group’s business model for managing them: financial assets at fairvalue through profit or loss, financial assets at amortised cost and financial assets at fair value throughother comprehensive income. All affected related financial assets will be reclassified only if the Groupchanges its business model for managing financial assets.

Financial assets are measured at fair value on initial recognition, but accounts receivable or notesreceivable arising from the sale of goods or rendering of services that do not contain significant financingcomponents or for which the Group has applied the practical expedient of not adjusting the effect of asignificant financing component due within one year, are initially measured at the transaction price.

For financial assets at fair value through profit or loss, relevant transaction costs are directly recognisedin profit or loss, and transaction costs relating to other financial assets are included in the initialrecognition amounts.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(8) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

The subsequent measurement of financial assets depends on their classification as follows:

Debt investments measured at amortised costThe Group measures financial assets at amortised cost if both of the following conditions are met: thefinancial asset is held within a business model with the objective to hold financial assets in order tocollect contractual cash flows; the contractual terms of the financial asset give rise on specified dates tocash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets at amortised cost are subsequently measured using the effective interest method andare subject to impairment. Gains and losses are recognised in profit or loss when the asset isderecognised, modified or impaired.

Debt investments at fair value through other comprehensive incomeThe Group measures debt investments at fair value through other comprehensive income if both of thefollowing conditions are met: the financial asset is held within a business model with the objective of bothholding to collect contractual cash flows and selling; the contractual terms of the financial asset give riseon specified dates to cash flows that are solely payments of principal and interest on the principalamount outstanding. Interest income is recognised using the effective interest method. The interestincome, impairment losses and foreign exchange revaluation are recognised in profit or loss. Theremaining fair value changes are recognised in other comprehensive income. Upon derecognition, thecumulative fair value change recognised in other comprehensive income is recycled to profit or loss.

Equity investments at fair value through other comprehensive incomeThe Group can elect to classify irrevocably its equity investments which are not held for trading as equityinvestments designated at fair value through other comprehensive income. Only the relevant dividendincome (excluding the dividend income explicitly recovered as part of the investment cost) is recognisedin profit or loss. Subsequent changes in the fair value are included in other comprehensive income,and no provision for impairment is made. When the financial asset is derecognised, the accumulatedgains or losses previously included in other comprehensive income are transferred from othercomprehensive income to retained earnings.

Financial assets at fair value through profit or lossThe financial assets other than the above financial assets measured at amortised cost and financialassets at fair value through other comprehensive income are classified as financial assets at fair valuethrough profit or loss. Such financial assets are subsequently measured at fair value with net changes infair value recognised in profit or loss except for the derivatives designated as hedging instruments in aneffective hedge.

Only when an accounting mismatch is eliminated or significantly decreased, financial assets aredesignated as financial assets at fair value through profit or loss at initial recognition.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(8) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

When an enterprise initially designates a financial asset as a financial asset at fair value through profit orloss, it cannot be reclassified to other financial assets; and other financial assets cannot bere-designated after initial recognition as financial assets measured at fair value through profit or loss.

Classification and measurement of financial liabilities

The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair valuethrough profit or loss, other financial liabilities or derivatives designated as effective hedging instruments.For financial liabilities at fair value through profit or loss, relevant transaction costs are directlyrecognised in profit or loss, and transaction costs relating to other financial liabilities are included in theinitial recognition amounts.

The subsequent measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading (includingderivative instruments attributable to financial liabilities) and financial liabilities designated upon initialrecognition as at fair value through profit or loss. Financial liabilities held for trading (includingderivative instruments attributable to financial liabilities) are subsequently measured at fair value. Allchanges in fair value of such financial liabilities are recognised in profit or loss except for the derivativesdesignated as hedging instruments in an effective hedge. Financial liabilities designated at fair valuethrough profit or loss are subsequently measured at fair value and gains or losses are recognised inprofit or loss, except for the gains or losses arising from the Group’s own credit risk which are presentedin other comprehensive income. If gains or losses arising from the Group’s own credit risk which arepresented in other comprehensive income will lead to or expand accounting mismatch in profit or loss,the Group will include all the changes in fair value (including the amount affected by changes in theGroup’s own credit risk) of such financial liabilities in profit or loss.

Only if one of the following conditions is met can financial liabilities be designated as financial liabilities atfair value through profit or loss on initial recognition:

(1) It can eliminate or significantly reduce the accounting mismatch.

(2) The formal written document of the risk management or investment strategy has stated that theportfolio of financial instruments is managed, evaluated and reported to key managers on thebasis of fair value.

(3) The financial liability is a hybrid instrument that contains one or more embedded derivatives,unless the embedded derivatives have no significant change in the cash flows of the hybridinstrument, or the embedded derivatives should obviously not be separated from the relatedhybrid instruments.

(4) Mixed instruments contain embedded derivatives that need to be split but cannot be measuredseparately at the time of acquisition or on subsequent balance sheet days.When an enterprise designates a financial liability as a financial liability at fair value through profit or loss,it cannot be reclassified as other financial liabilities; nor can other financial liabilities be re-designated asfinancial liabilities at fair value through profit or loss after initial recognition.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(8) Financial instruments (Continued)

Classification and measurement of financial liabilities (Continued)

Other financial liabilitiesAfter initial recognition, such financial liabilities are measured at amortised cost using the effectiveinterest method.

Impairment of financial assets

Based on the expected credit losses (“ECLs”), the Group recognises an allowance for ECLs for thefinancial assets measured at amortised cost, debt investments at fair value through othercomprehensive income, and contract assets.

For trade receivables and contract assets that do not contain a significant financing component, theGroup applies the simplified approach to recognise a loss allowance based on lifetime ECLs.

For trade receivables and contract assets that contain a significant financing component, the Groupchooses to adopt the simplified approach to recognise a loss allowance based on lifetime ECLs.

Except for financial assets which apply the simplified approach as mentioned above and other financialassets, the Group assesses whether the credit risk has increased significantly since initial recognition ateach balance sheet date. If the credit risk has not increased significantly since initial recognition (stage

1), the loss allowance is measured at an amount equal to 12-month ECLs by the Group and the interestincome is calculated according to the carrying amount and the effective interest rate; if the credit risk hasincreased significantly since initial recognition but are not credit-impaired (stage 2), the loss allowance ismeasured at an amount equal to lifetime ECLs by the Group and the interest income is calculatedaccording to the carrying amount and the effective interest rate; if such financial assets arecredit-impaired after initial recognition (stage 3), the loss allowance is measured at an amount equal tolifetime ECLs by the Group and the interest income is calculated according to the amortised cost and theeffective interest rate. If the credit risk of financial instruments is low at the balance sheet date, the Groupassumes that the credit risk has not increased significantly since initial recognition.

The Group evaluates the expected credit losses on financial instruments on a single and combined basis.Taking into account the credit risk characteristics of different customers, the Group evaluates theexpected credit losses on accounts receivable based on the aging portfolio.

Refer to Note X (3) for the disclosure of the Group's criteria for judging the significant increase in creditrisk, the definition of assets with impaired credit losses, and the assumption of measuring expectedcredit losses.

When the Group no longer reasonably expects to be able to recover all or part of the contract cash flowsof the financial assets, the Group directly writes down the carrying amount of the financial asset.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(8) Financial instruments (Continued)

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet ifthere is a currently enforceable legal right to offset the recognised amounts; and there is an intention tosettle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Transfer of financial assets

A financial asset is derecognised when the Group has transferred substantially all the risks and rewardsof the asset to the transferee. A financial asset is not derecognised when the Group retainssubstantially all the risks and rewards of the financial asset.

When the Group has neither transferred nor retained substantially all the risks and rewards of thefinancial asset, it either (i) derecognises the financial asset and recognises the assets and liabilitiescreated in the transfer when it has not retained control of the asset; or (ii) continues to recognise thetransferred asset to the extent of the Group's continuing involvement, in which case, the Group alsorecognises an associated liability.

Continuing involvement that takes the form of a guarantee over the transferred financial asset ismeasured at the lower of the original carrying amount of the financial asset and the guarantee amount.The guarantee amount is the maximum amount of consideration that the Group could be required torepay.

(9) Notes receivables

For details of the method for determining the expected credit loss of notes receivable, please refer toNote V (10) “Financial instruments - Impairment of financial instruments”.

(10) Accounts receivables

For details of the method for determining the expected credit loss of accounts receivable, please refer toNote V (10) “Financial instruments - Impairment of financial instruments”.

(11) Receivable financing

It includes notes receivable and accounts receivables designated at fair value through othercomprehensive income as at balance sheet date.

For details of the method for determining the expected credit loss of receivables financing, please referto Note V (10) “Financial instruments - Impairment of financial instruments”.

(12) Other receivables

For details of the method for determining the expected credit losses of other receivables, please refer to

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

Note V (10) “Financial instruments - Impairment of financial instruments”.

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

(13) Inventories

Inventories include raw materials, work in progress, finished goods, delegate processing supplies andturnover materials, and are measured at the lower of cost and net realizable value.

Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase, costs ofconversion and other costs. Cost is determined on the weighted average basis. Turnover materialsinclude low value consumables and packing materials, which are on the immediate write-off basis.

The Group adopts the perpetual inventory system.

At the balance sheet date, inventories are stated at the lower of cost and net realisable value. Theinventories are written down below cost to net realisable value and the write-down is recognised in profitor loss if the cost is higher than the net realisable value. When the circumstances that previouslycaused the inventories to be written down below cost no longer exist, in which case the net realisablevalue of inventories becomes higher than the carrying amount, the amount of the write-down is reversed.The reversal is limited to the amount of the original write-down, and is recognised in profit or loss.

Net realisable value is the estimated selling price in the ordinary course of business less the estimatedcosts of completion and the estimated costs necessary to make the sale and relevant taxes. Finishedgoods are written down item by item.

(14) Contract assets

The Group presents contract assets or contract liabilities depending on the relationship between thesatisfaction of its performance obligations and the customer’s payment in the balance sheet. TheGroup offsets the contract assets and contract liabilities under the same contract and presents the netamount.

A contract asset is the right to consideration in exchange for goods or services that the Group hastransferred to a customer, and that right is conditioned on something other than the passage of time.

For details of how the Group measures and accounts for the ECLs of a contract asset, refer to Note V

(10) “Financial instruments - Impairment of financial instruments”.

(15) Assets relating to contract cost

The Group’s contract cost assets include the costs to obtain and fulfil a contract and are classified asinventories, other current assets and other non-current assets by liquidity.

The Group recognises as an asset the incremental costs of obtaining a contract with a customer if theGroup expects to recover those costs, unless the amortisation period of the asset is one year or less.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(15) Assets relating to contract cost (Continued)

Other than the costs which are capitalised as inventories, fixed assets and intangible assets, etc., costsincurred to fulfil a contract with a customer are capitalised as an asset if all of the following criteria aremet:

(1) the costs relate directly to a contract or to an anticipated contract, including direct labour, direct

materials, overheads (or similar expenses), costs that are explicitly chargeable to the customerand other costs that are incurred only because an entity entered into the contract;

(2) the costs generate or enhance resources of the Group that will be used in satisfying

performance obligations in the future; and

(3) the costs are expected to be recovered.

The contract cost asset is amortised and charged to profit or loss on a systematic basis that is consistentwith the pattern of the revenue to which the asset related is recognised.

The Group accrues provisions for impairment and recognises impairment losses to the extent that thecarrying amount of a contract cost asset exceeds:

(1) the remaining amount of consideration that the entity expects to receive in exchange for the

goods or services to which the asset relates; less

(2) the costs that are expected to be incurred to transfer those related goods or services.

The Group recognises in profit or loss a reversal of the impairment loss previously recognised to theextent that the difference between (1) and (2) exceeds the carrying amount of the asset due to thesubsequent changes of the factors causing asset impairment in previous periods, but the carryingamount after the reversal does not exceed the carrying amount of the asset at the reversal date if noimpairment loss is otherwise recognised.

(16) Long-term equity investments

Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(16) Long-term equity investments (Continued)

A long-term equity investment is initially measured at its initial investment cost on acquisition. Forlong-term equity investments arising from business combination involving enterprises under commoncontrol, the initial investment cost shall be the share of the carrying amount of equity of the acquiree inthe consolidated financial statements of the ultimate controlling party as at the combination date. Thedifference between the initial investment cost and book value of consideration of combination is adjustedto capital reserves, and to retained earnings if capital reserves is insufficient. Other comprehensiveincome recognised before the combination date is accounted for on the same basis as would have beenrequired if the investee had directly disposed of the related assets or liabilities. Equity previouslyrecognised resulting from the investee’s equity changes other than profit or loss, other comprehensiveincome and profit distribution is reclassified to profit or loss. Equity which still involves a long-terminvestment after disposal is reclassified to profit or loss on a pro-rata basis and equity which swiches to afinancial instrument after disposal is fully reclassified to profit or loss. For long-term equity investmentsarising from business combination involving enterprises not under common control, the investment costshall be the combination cost. (For a business combination achieved in stages, the initial investment costis determined as the sum of the carrying amount of equity of the acquiree and the additional investmentcosts on the combination date.) The combination cost involves the assets paid by the acquirer, liabilitiesincurred and the fair value of equity securities. Other comprehensive incomes recognised using theequity method before the combination date is accounted for on the same basis as would have beenrequired if the investee had directly disposed of the related assets or liabilities. Equity previouslyrecognised resulting from the investee’s equity changes other than profit or loss, other comprehensiveincome and profit distribution is reclassified to profit or loss. Equity which still involves a long-terminvestment after disposal is reclassified to profit or loss on a pro-rata basis and equity which swiches to afinancial instrument after disposal is fully reclassified to profit or loss. The accumulated changes in thefair value of financial assets at fair value through other comprehensive income is reclassified to retainedearnings when adopting the cost method. Depending on the way of acquisition of long-term equityinvestments, the initial investment cost is determined as follows: For long-term equity investmentsacquired by way of cash payment, the initial investment cost includes all directly associated expenses,applicable taxes and fees, and other necessary expenses. For long-term equity investments acquired byway of issuing equity securities, the initial investment cost includes the fair value of equity securities. Forlong-term equity investments acquired by way of the swap of non-monetary assets, the initial investmentcost shall be determined in accordance with “ASBE No. 7 — Swap of Non-monetary Assets.” Forlong-term equity investments acquired by way of debt restructuring, the initial investment cost shall bedetermined in accordance with “ASBE No. 12 — Debt Restructuring.”

For a long-term equity investment where the Company can exercise control over the investee, thelong-term investment is accounted for using the cost method in the Company’s individual financialstatements. Control is achieved when the Group is exposed, or has rights, to variable returns from itsinvolvement with the investee and has the ability to affect those returns through its power over theinvestee.

Under the cost method, the long-term equity investment is measured at its initial investment cost.When additional investment is made or the investment is recouped, the cost of long-term equityinvestment is adjusted accordingly. Cash dividends or profit distributions declared by the investee arerecognised as investment income in profit or loss.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(16) Long-term equity investments (Continued)

The equity method is adopted when the Group has joint control, or exercises significant influence overthe investee. Joint control is the contractually agreed sharing of control of an arrangement, whichexists only when decisions about the relevant activities require the unanimous consent of the partiessharing control. Significant influence is the power to participate in the financial and operating policydecisions of the investee, but is not control or joint control with other parties over those policies.

Under the equity method, where the initial investment cost of a long-term equity investment exceeds theGroup’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, noadjustment is made to the initial investment cost. Where the initial investment cost is less than theGroup’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, thedifference is charged to profit or loss, and the cost of the long-term equity investment is adjustedaccordingly.

Under the equity method, after it has acquired a long-term equity investment, the Group recognises itsshare of the investee’s profit or loss, as well as its share of the investee’s other comprehensive income,as investment income or loss and other comprehensive income, and adjusts the carrying amount of theinvestment accordingly. The Group recognises its share of the investee’s profit or loss after makingappropriate adjustments to the investee’s profit or loss based on the fair value of the investee’sidentifiable assets at the acquisition date, using the Group’s accounting policies and periods.Unrealised profits and losses from transactions with its joint ventures and associates are eliminated tothe extent of the Group’s investments in the associates or joint ventures (except for assets that constitutea business) (However, any loss arising from such transactions which are attributable to an impairmentloss shall be recognised at its entirety). The carrying amount of the investment is reduced based on theGroup’s share of any profit distributions or cash dividends declared by the investee. The Group’s shareof net losses of the investee is recognised to the extent that the carrying amount of the investmenttogether with any long-term interests that in substance form part of its net investment in the investee isreduced to zero, except that the Group has the obligations to assume further losses. The Group’sowner’s equity changes, other than those arising from the investee’s profit or loss, other comprehensiveincome or profit distribution, is recognised in the Group’s equity, and the carrying amount of thelong-term equity investment is adjusted accordingly.

Upon disposal of a long-term equity investment, the difference between the proceeds actually receivedand the carrying amount is recognised in profit or loss. For a long-term equity investment accounted forusing the equity method, when the Group discontinues using the equity method due to disposal, allamounts previously recognised in other comprehensive income are accounted for on the same basis aswould have been required if the investee had directly disposed of the related assets or liabilities. Equitypreviously recognised resulting from the owner’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss in its entirety. When theGroup continues to use the equity method, the amounts previously recognised in other comprehensiveincome are accounted for on the same basis as would have been required if the investee had directlydisposed of the related assets or liabilities and reclassified to profit or loss on a pro-rata basis. Equitypreviously recognised resulting from the investee’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss on a pro-rata basis.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(17) Investment properties

Investment properties are properties held to earn rental income and/or for capital appreciation.Investment properties include land use rights leased out, land use rights held for transfer upon capitalappreciation, and buildings leased out.

An investment property is measured initially at cost. If the economic benefits relating to an investmentproperty will probably flow in and the cost can be reliably measured, subsequent costs incurred for theproperty are included in the cost of the investment property. Otherwise, subsequent costs arerecognised in profit or loss as incurred.

The Group adopts the cost model for subsequent measurement of investment properties. Buildings andland use rights are depreciated or amortized to their estimated net residual values over their estimateduseful lives. The estimated useful lives, the estimated net residual values that are expressed as apercentage of cost and the annual depreciation (amortization) rates of investment properties are asfollows:

	Estimated useful lives	Estimated residual value	Annual depreciation (amortization) rates
Buildings	12-35 years	0-5%	2.71-7.92%
Land use rights	30-50 years	-	2.00-3.33%

When an investment property is transferred to owner-occupied property, it is reclassified as a fixed assetor intangible asset at the date of transfer. When an owner-occupied property is transferred out forearning rentals or for capital appreciation, the fixed asset or intangible asset is reclassified as aninvestment property at its carrying amount at the date of transfer.

The investment properties’ useful life, net residual value and depreciation (amortization) method appliedare reviewed and adjusted as appropriate at the end of each year.

(18) Fixed assets

Recognition criteriaA fixed asset is recognised only when the economic benefits associated with the asset will probably flowinto the Group and the cost of the asset can be measured reliably. Subsequent expenditures incurredfor a fixed asset that meets the recognition criteria shall be included in the cost of the fixed asset, and thecarrying amount of the component of the fixed asset that is replaced shall be derecognised. Otherwise,such expenditures are recognised in profit or loss as incurred. Fixed assets are initially measured atcost, by taking into account the effect of any asset retirement obligations. The cost of a purchased fixedasset comprises the purchase price, relevant taxes and any directly attributable expenditure for bringingthe asset to working condition for its intended use. The Group reviews the useful life and estimated netresidual value of a fixed asset and the depreciation method applied at least at each year end, and makeadjustments if necessary.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(18) Fixed assets (Continued)

Depreciation method

	Estimated useful lives	Estimated residual value	Annual depreciation rates
Buildings	20-35years	0-5%	2.71-5.00%
Machineries	5-14years	3-6%	6.79-19.40%
Motor vehicles	3-10years	0-5%	9.50-33.33%
Office equipments	3-10years	0-5%	9.50-33.33%
Electronic equipments	within 5 years	0%	20% and above

(19) Construction in progress

The cost of construction in progress is determined according to the actual expenditures incurred for theconstruction, including all necessary construction expenditures incurred during the construction period,borrowing costs that shall be capitalised before the construction is ready for its intended use, and otherrelevant expenditures.

An item of construction in progress is transferred to fixed assets when the asset is ready for its intendeduse.

(20) Borrowing costs

Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing ofthe funds. Borrowing costs include interest, amortisation of discounts or premiums related toborrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchangedifferences arising from foreign currency borrowings.

The borrowing costs that are directly attributable to the acquisition, construction or production of aqualifying asset are capitalised. The amounts of other borrowing costs incurred are recognised as anexpense in the period in which they are incurred. Qualifying assets are assets (fixed assets, investmentproperties, inventories, etc.) that necessarily take a substantial period of time of acquisition, constructionor production to get ready for their intended use or sale.

The capitalisation of borrowing costs commences only when all of the following conditions are satisfied:

(1) expenditures for the asset have been incurred;

(2) borrowing costs have been incurred; and

(3) activities that are necessary to acquire, construct or produce the asset for its intended use or

sale have been undertaken.

Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed orproduced gets ready for its intended use or sale. Any borrowing costs subsequently incurred arerecognised in profit or loss.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(20) Borrowing costs (Continued)

During the capitalisation period, the amount of interest eligible for capitalisation for each accountingperiod shall be determined as follows:

(1) where funds are borrowed specifically for the purpose of obtaining a qualifying asset, the

amount of interest eligible for capitalisation is the actual interest costs incurred on that borrowingfor the period less any bank interest earned from depositing the borrowed funds before beingused on the asset or any investment income on the temporary investment of those funds; or

(2) where funds are borrowed generally for the purpose of obtaining a qualifying asset, the amount

of interest eligible for capitalisation is determined by applying a weighted average interest rateon the general borrowings to the weighted average of the excess of the cumulative expenditureson the asset over the expenditures on the asset funded by the specific borrowings.

Capitalisation of borrowing costs is suspended during periods in which the acquisition, construction orproduction of a qualifying asset is suspended abnormally by activities other than those necessary to getthe asset ready for its intended use or sale, when the suspension is for a continuous period of more than3 months. Borrowing costs incurred during these periods are recognised as an expense in profit or lossuntil the acquisition, construction or production is resumed.

(21) Right-of-use assets

The right-of-use assets of the Group mainly include buildings, machinery, vehicles, office equipmentsand other equipments (such as land use right).

At the commencement date of the lease, the Group recognises a right-of-use asset. The cost of theright-of-use asset comprises: (i) the amount of the initial measurement of the lease liability; (ii) any leasepayments made at or before the commencement date of the lease less any lease incentives received;(iii) any initial direct cost incurred; and (iv) an estimate of costs incurred by the lessee in dismantling andremoving the underlying asset, restoring the site on which it is located or restoring the underlying assetto the condition required by the terms and conditions of the lease. The right-of-use assets aredepreciated on a straight-line basis subsequently by the Group. If the Group is reasonably certain thatthe ownership of the underlying asset will be transferred to the Group at the end of the lease term, theGroup depreciates the asset from the commencement date to the end of the useful life of the asset.Otherwise, the Group depreciates the assets from the commencement date to the earlier of the end ofthe useful life of the asset or the end of the lease term.

The Group remeasures the lease liability at the present value of the changed lease payments andadjusts the carrying amount of the right-of-use assets accordingly, when the carrying amount of theright-of-use asset is reduced to zero, and there is a further reduction in the measurement of the leaseliability, the Group recognises the remaining amount of the remeasurement in profit or loss.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(22) Intangible assets

An intangible asset shall be recognised only when it is probable that the economic benefits associatedwith the asset will flow to the Group and the cost of the asset can be measured reliably. Intangibleassets are measured initially at cost. However, intangible assets acquired in a business combinationnot involving entities under common control with a fair value that can be measured reliably arerecognised separately as intangible assets and initially measured at the fair value at the date ofacquisition.

The useful life of an intangible asset is determined according to the period over which it is expected togenerate economic benefits for the Group. An intangible asset is regarded as having an indefiniteuseful life when there is no foreseeable limit to the period over which the asset is expected to generateeconomic benefits for the Group.

The useful lives of the intangible assets are as follows:

Categories		Useful lives
Land use rights		Between the approved useful period and the Company’s operating period
Software		3-5 years
Trademarks		5-10 years
Technology patents		5 years
Distribution network		20 years
Franchising rights		10 years
Favorable leases		17-20 years

Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings, suchas plants that are developed and constructed by the Group, and relevant land use rights are accountedfor as fixed assets and intangible assets, respectively. Payments for the land and buildings purchasedare allocated between the land use rights and the buildings; they are accounted for as fixed assets if theycannot be reasonably allocated.

An intangible asset with a finite useful life is amortised using the straight-line method over its useful life.For an intangible asset with a finite useful life, the Group reviews the useful life and amortisation methodat least at each year end and makes adjustment if necessary.

Land use rights allocated by the State are regarded as an intangible asset with an indefinite useful lifedue to an uncertain useful life. The impairment test should be conducted for the intangible assets withthe indefinite service life every year to determine whether the impairment exists. The intangible assetswith the indefinite service life shall not be amortized, and the Company shall make the review of theservice life of the intangible assets during every accounting period. If evidence prove that useful lives arefinite, the Group accounts for the intangible assets in accordance with intangible assets with a finiteuseful life.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(22) Intangible assets (Continued)

Internal research and development project

The Group classifies the expenses for internal research and development as research costs anddevelopment costs. All research costs are charged to the current profit or loss as incurred. Expenditureincurred on projects to develop new products is capitalised and deferred only when the Group candemonstrate the technical feasibility of completing the intangible asset so that it will be available for useor sale, its intention to complete and its ability to use or sell the asset, how the asset will generate futureeconomic benefits (including demonstration that the product derived from the intangible asset or theintangible asset itself will be marketable or, in the case of internal use, the usefulness of the intangibleasset as such), the availability of technical and financial resources to complete the project and procurethe use or sale of the intangible asset, and the ability to measure reliably the expenditure during thedevelopment. Product development expenditure which does not meet these criteria is expensed whenincurred.

Expenditure for investigation, evaluation and selection of production process and new drug researchesis recognised in profit or loss in the period in which it is incurred. Expenditure on the designation,measurement of the final utilization of the production process and new drugs before mass production iscapitalized only if all of the following conditions are satisfied:

(1) development of the production process and new drugs has been fully demonstrated by thetechnical team;

(2) management has approved the budget of drug production development and new drugs;

(3) market research analysis suggests that the products produced by the new productiontechnology are able to be promoted;

(4) adequate technical, financial and other resources to complete the development and the

ability to use or sell the intangible asset;

(5) the expenditure attributable to the intangible asset during its development phase can bereliably measured.

Other development costs that do not meet the conditions above are recognised in profit or loss in theperiod in which they are incurred. Development costs previously recognised as expenses are notrecognised as an asset in a subsequent period. Capitalized expenditure on the development phase ispresented as development costs in the balance sheet and transferred to intangible assets at the datethat the asset is ready for its intended use.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(23) Long-term prepaid expenses

Long-term prepaid expenses include the expenditure for improvements to fixed assets under operatingleases, and other expenditures that have been made but should be recognised as expenses over morethan one year in the current and subsequent periods. Long-term prepaid expenses are amortized on thestraight-line basis over the expected beneficial period and are presented at actual expenditure net ofaccumulated amortization.

(24) Impairment of long-term assets

The Group determines the impairment of assets, other than the impairment of inventories, investmentproperties measured using the fair value model, deferred tax assets, financial assets and assetsclassified as held for sale, using the following methods:

The Group assesses at the balance sheet date whether there is any indication that an asset may beimpaired. If any indication exists that an asset may be impaired, the Group estimates the recoverableamount of the asset and performs impairment testing. Goodwill arising from a business combinationand an intangible asset with an indefinite useful life are tested for impairment at least at each year end,irrespective of whether there is any indication that the asset may be impaired. Intangible assets thathave not been ready for their intended use are tested for impairment each year.

The recoverable amount of an asset is the higher of its fair value less costs to sell and the present valueof the future cash flows expected to be derived from the asset. The Group estimates the recoverableamount on an individual basis unless it is not possible to estimate the recoverable amount of theindividual asset, in which case the recoverable amount is determined for the asset group to which theasset belongs. Identification of an asset group is based on whether major cash inflows generated bythe asset group are largely independent of the cash inflows from other assets or asset groups.

When the recoverable amount of an asset or asset group is less than its carrying amount, the carryingamount is reduced to the recoverable amount by the Group. The reduction in the carrying amount istreated as an impairment loss and recognised in profit or loss. A provision for impairment loss of theasset is recognised accordingly.

For the purpose of impairment testing, the carrying amount of goodwill acquired in a businesscombination is allocated from the acquisition date on a reasonable basis, to each of the related assetgroups unless it is impossible to allocate to the related asset groups, in which case it is allocated to eachof the related sets of asset groups. Each of the related asset groups or sets of asset groups is an assetgroup or a set of asset groups that is expected to benefit from the synergies of the business combinationand shall not be larger than a reportable segment determined by the Group.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(24) Impairment of long-term assets (Continued)

When testing an asset group (a set of asset groups) to which goodwill has been allocated forimpairment, if there is any indication of impairment, the Group firstly tests the asset group (set of assetgroups), excluding the amount of goodwill allocated, for impairment, i.e., the Group determines andcompares the recoverable amount with the related carrying amount and recognises any impairment loss.After that, the Group tests the asset group (set of asset groups), including goodwill, for impairment, thecarrying amount of the related asset group (set of asset groups) is compared to its recoverable amount.If the carrying amount of the asset group (set of asset groups) is higher than its recoverable amount, theamount of the impairment loss is firstly used to reduce the carrying amount of the goodwill allocated tothe asset group (set of asset groups), and then used to reduce the carrying amount of other assets(other than the goodwill) within the asset group (set of asset groups), on a pro-rata basis of the carryingamount of each asset.

Once the above impairment loss is recognised, it cannot be reversed in subsequent accounting periods.

(25) Contract liabilities

The Group presents contract assets or contract liabilities depending on the relationship between thesatisfaction of its performance obligations and the customer’s payment in the balance sheet. TheGroup offsets the contract assets and contract liabilities under the same contract and presents the netamount.

A contract liability is the obligation to transfer goods or services to a customer for which the Group hasreceived consideration or an amount of consideration is due from the customer, such as an amount ofconsideration that an entity has received before the transfer of the promised goods or services.

(26) Employee benefits

Employee benefits refer to all forms of consideration or compensation other than share-based paymentsgiven by the Group in exchange for services rendered by employees or for termination of employment.Employee benefits include short-term employee benefits, post-employment benefits, terminationbenefits and other long-term employee benefits. Benefits given by the Group to an employee’s spouse,children and dependents.

Short-term employee benefits

The actual occurred short-term employee benefits are recognized as liabilities during the accountingperiod in which the service has been rendered by the employees and as costs of assets or expenses towhichever the employee service is attributable.

Post-employment benefits (defined contribution plans)

The employees of the Group participate in a pension scheme and unemployment insurance managed bythe local government, and an enterprise pension fund, the corresponding expenses shall be included inthe cost of related assets or profit or loss.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(26) Employee benefits (Continued)

Post-employment benefits (defined benefit plans)

The Group operates a defined benefit pension plan which requires contributions to be made to aseparately administered fund. The benefits are unfunded. The cost of providing benefits under thedefined benefit plan is determined using the projected unit credit method.

Remeasurements arising from the defined benefit pension plan, comprising actuarial gains and losses,the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefitliability) and the return on plan assets (excluding amounts included in net interest on the net definedbenefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit toequity through other comprehensive income in the period in which they occur. Remeasurements arenot reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss at the earlier of the date of the plan amendment andthe date that the Group recognises restructuring-related costs or termination benefits.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. TheGroup recognises the following changes in the net defined benefit obligation under administrativeexpenses and finance expenses in the income statement: service costs comprising current servicecosts, past service costs, gains and losses on settlements; net interest comprising interest income onplan assets, interest costs on the defined benefit obligation and interest on the effect of the asset ceiling.

Termination benefits

The Group provides termination benefits to employees and recognises an employee benefits liability fortermination benefits, with a corresponding charge to profit or loss, at the earlier of when the Group canno longer withdraw the offer of those benefits resulting from an employment termination plan or acurtailment proposal and when the Group recognise costs involving the payment of termination benefits.

The Group offers termination benefits to the employees who accept internal retirement arrangements.Termination benefits refers to salaries and social securities paid to the employees who voluntarily retireand approved by the management before the legal retirement age. The Group pays termination benefitsfrom the date of the starting of internal retirement arrangements to legal retirement age. When meetingthe recognition criteria, termination benefits are recognised as liabilities from the date on which theemployees stop offering services to the legal retirement date and recognised in profit or loss as incurred.The change of termination benefits’ actuarial assumptions and difference incurred by the adjustment ofwelfare standards are recognised in profit or loss as incurred.

The termination benefits expected to be settled within one year since the balance sheet date areclassified as current liabilities.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(26) Employee benefits (Continued)

Other long term employee benefits

Other long-term employee’ benefits provided to employees shall be recognised and measured as netliabilities or net assets where provisions regarding post-employment benefits are applicable, providedthat changes shall be included in the current profit and loss or related asset costs.

(27) Lease liability

At the commencement date of the lease, the Group measures the lease liability at the present value ofthe lease payments that are not paid at that date, except for short-term leases and leases of low-valueassets. In calculating the present value of the lease payments, the Group uses the interest rate implicit inthe lease as the discount rate. If that rate cannot be readily determined, the Group uses the lessee’sincremental borrowing rate. The Group calculates the interest expenses of the lease liability in eachperiod during the lease term using the constant periodic rate of interest, and recognises such interestexpenses in profit or loss, except those in the costs of the related asset as required. Variable leasepayments that are not included in the measurement of the lease liabilities are recognised in profit or lossas incurred, except those in the costs of the related asset as required.

After the commencement date of the lease, the Group remeasures lease liabilities with changed presentvalue of the lease payments when fixed payment, expected unguaranteed residual value payable, theinterest rate implicit in the lease as the discount rate, purchase options, options to extend the lease ordetermination of the lease term change.

(28) Provisions

An obligation related to a contingency shall be recognised by the Group as a provision when all of thefollowing conditions are satisfied, except for contingent considerations and contingent liabilities assumedin a business combination not involving entities under common control:

(1) the obligation is a present obligation of the Group;

(2) it is probable that an outflow of economic benefits from the Group will be required to settle the

obligation; and

(3) a reliable estimate can be made of the amount of the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle the relatedpresent obligation, taking into account factors pertaining to a contingency such as the risks, uncertaintiesand time value of money as a whole. Provisions are reviewed at each balance sheet date. Wherethere is clear evidence that the carrying amount of a provision does not reflect the current best estimate,the carrying amount is adjusted to the current best estimate.

A contingent liability recognised in a business combination not involving entities under common control isinitially measured at fair value. Subsequently, it is measured at the higher of: (i) the amount that wouldbe recognised in accordance with the general policy for provisions above; and (ii) the amount initiallyrecognised less cumulative amortisation recognised in accordance with the policy for revenuerecognition.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(29) Share-based payments

A share-based payment is classified as either an equity-settled share-based payment or a cash-settledshare-based payment. An equity-settled share-based payment is a transaction in which the Groupreceives services and uses shares or other equity instruments as consideration for settlement.

An equity-settled share-based payment in exchange for services received from employees is measuredat the fair value of the equity instruments granted to the employees. If such equity-settled share-basedpayment could vest immediately, related costs or expenses at an amount equal to the fair value on thegrant date are recognised, with a corresponding increase in capital reserves; if such equity-settledshare-based payment could not vest until the completion of services for a vesting period, or until theachievement of a specified performance condition, the Group at each balance sheet date during thevesting period recognises the services received for the current period as related costs and expenses,with a corresponding increase in capital reserves, at an amount equal to the fair value of the equityinstruments at the grant date, based on the best estimate of the number of equity instruments expectedto vest, which is made on the basis of the latest available information such as the changes in the numberof covered employees and whether specified performance conditions have been met. The fair value isdetermined using the binomial model.

The cost of equity-settled transactions is recognised, together with a corresponding increase in capitalreserves, over the period in which the specified performance or service conditions are fulfilled. Thecumulative expense recognised for equity-settled transactions at each balance sheet date until thevesting date reflects the extent to which the vesting period has expired and the Group’s best estimate ofthe number of equity instruments that will ultimately vest.

For awards that do not ultimately vest because non-market performance and/or service conditions havenot been met, no expense is recognised. Where awards include a market or non-vesting condition, thetransactions are treated as vesting irrespective of whether the market or non-vesting condition issatisfied, provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled share-based award are modified, as a minimum an expense isrecognised as if the terms had not been modified. In addition, an expense is recognised for anymodification that increases the total fair value of the share-based payments, or is otherwise beneficial tothe employee as measured at the date of modification.

Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date ofcancellation, and any expense not yet recognised for the award is recognised immediately. Thisincludes any award where non-vesting conditions within the control of either the Group or the employeeare not met. However, if a new award is substituted for the cancelled award, and is designated as areplacement on the date that it is granted, the cancelled and new awards are treated as if they were amodification of the original award.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(29) Share-based payments (Continued)

The cost of cash-settled transactions is measured at the fair value of the liability which is determined onthe basis of shares or other equity instruments of the Group. It is initially recognised at the fair value onthe grant date using binomial model together with the consideration of terms and conditions on which theequity instruments are granted. If the rights under a cash-settled share-based payment could vestimmediately, related costs or expenses at an amount equal to the fair value on the grant date arerecognised, with a corresponding increase in liability. If the rights under a cash-settled share-basedpayment could not vest until the completion of services for a vesting period, or until achievement of aspecified performance condition, the Group at each balance sheet date during the vesting periodrecognises the services received for the current period as related costs and expenses, with acorresponding increase in liability, at an amount equal to the fair value of the liability based on the bestestimate of the outcome of vesting. The liability is measured at each balance sheet date up to andincluding the settlement date, with changes in fair value recognised in profit or loss.

(30) Revenue recognition

Revenue from contracts with customers is recognised when the Group has fulfilled its performanceobligations in the contracts, that is, when the customer obtains control of relevant goods or services.Control of relevant goods or services refers to the ability to direct the use of the goods, or the provision ofthe services, and obtain substantially all of the remaining benefits from the goods or services.

Contracts for sale of goods

The contracts for the sale of goods between the Group and its customer usually only contain theperformance obligations for the transfer of goods. The Group generally recognizes revenue at the pointof transferring the control of goods on the basis of a combination of the following factors: the current rightto collect the goods, the transfer of major risks and benefits in the ownership of the goods, and thetransfer of the legal ownership of the goods, the transfer of physical assets of the goods and that thecustomers have accepted the goods.

Service Contracts

The service contracts between the Group and its customers usually consist of performance obligationssuch as storage and logistics and so on. As the Group's performance of contracts is at the same timewhen the customer obtains and consumes the economic benefits of the performance of the Group, andthe Group has the right to collect receivables from the performance of contacts that has been completedto date, the Group regards it as a contract obligation over a period of time, except that the progress ofperformance cannot be reasonably determined. The Group determines the progress of the performanceof contracts in accordance with the input method. If the progress of performance of contracts cannot bereasonably determined and the cost incurred by the Group is expected to be compensated, the revenueis recognised on the basis of the incurred costs until the progress of performance of contacts can bereasonably measured.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(30) Revenue recognition (Continued)

Variable consideration

Some of the Group's contracts with customers including arrangements of sales rebates (list items inaccordance with the customer’s actual conditions, such as early completion awards or others) result invariable consideration. The Group determines the best estimate of variable consideration by using theexpected value method or the most likely amount method. However, the transaction price includingvariable consideration is only to the extent that it is highly probable that a significant reversal in theamount of cumulative revenue recognised will not occur when the uncertainty associated with thevariable consideration is subsequently resolved.

Consideration payable to customers

Where consideration is payable by the Group to a customer, such consideration payable shall bededucted against the transaction price, and against current revenue upon the recognition of revenue orthe payment of (or the commitment to pay) the consideration to the customer (whichever is later), savefor consideration payable to the customer for the purpose of acquiring from the customer other clearlyseparable products.

Return clauses

In connection with sales with a return clause, revenue is recognised according to the amount ofconsideration it expects to be entitled to for the transfer to a customer when the customer acquirescontrol of the relevant products. Amounts expected to be refunded for the return of sales are recognisedas liabilities. At the same time, the balance of the carrying value of the product expected to be returnedupon transfer less expected costs for the recall of such product (including an impairment loss of therecalled product) shall be recognised as an asset (i.e. cost of return receivables), and the net amount ofthe carrying value of the transferred product upon the transfer less the aforesaid asset cost shall betransferred to cost. At each balance sheet date, the Group reassesses the future return of sales andremeasures the above assets and liabilities.

Significant financing component

Where a contract contains a significant financing component, the Group determines transaction pricesbased on amounts payable assumed to be settled in cash by customers immediately upon theacquisition of control over the products. The difference between such transaction price and contractconsideration is amortised over the contract period using the effective interest rate method based on aratio that discounts the nominal contractual consideration to the current selling price of the products.

The Group shall not give consideration to any significant financing component in a contract if the gapbetween the customer’s acquisition of control over the products and payment of consideration isexpected to be less than 1 year.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(30) Revenue recognition (Continued)

Warranty clauses

The Group provides quality assurance for products sold and assets built in accordance with contractterms and laws and regulations. The accounting treatment of quality assurance in the form of warrantyassuring customers products sold are in compliance with required standards is set out in Note V.36.Where the Group provides a service warranty for a standalone service in addition to the assurance ofcompliance of products with required standards, such warranty is treated as a stand-alone contractualperformance obligation, and a portion of the transaction price shall be allocated to the service warrantybased on a percentage of the stand-alone price for the provision of the product and service warranty.When assessing whether a warranty is rendering a stand-alone service in addition to providingguarantee to customers that all sold goods are in compliance with required standards, the Group willconsider whether or not such warranty is a statutory requirement, the term of the warranty and the natureof the Group’s undertaking to perform its obligations.

Reward points program

The Group grants reward points to customers when selling goods. Customers can use reward points toredeem free or discounted goods provided by the Group. This reward points program providessignificant rights to customers, and the Group considers it as an individual performance obligation, andapportions part of the transaction prices to reward points based on pricing of goods or services withwarranty clauses. Revenue is recognised when customers obtain goods redeemed or when rewardpoints expire.

Principal responsible person/proxy

For goods or other assets obtained from a third party which were transferred later to customers, theGroup has the right to decide, independently, the pricing of goods. This means that the Group hasobtained control over related goods before transferring to customers. Therefore, the Group is theprincipal responsible person, and revenue is recognised based on the total amount of considerationreceived or receivable. Otherwise, the Group is proxy, and revenue is recognised based on expectedcommission. This amount should be the total amount of consideration received or receivable net of theamount payable to other parties, or based on the fixed amount or percentage.

(31) Government grants

Government grants are recognised when all attaching conditions will be complied with and the grants willbe received. If a government grant is in the form of a transfer of a monetary asset, it is measured at theamount received or receivable. If a government grant is in the form of a transfer of a non-monetaryasset, it is measured at fair value; if fair value is not reliably determinable, it is measured at a nominalamount.

Government grants related to assets refer to government assets which are granted to enterprises for thelong-term assets formed by acquisition, construction or in other manners. Government grants related toincome refer to government grants other than those related to assets.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(31) Government grants (Continued)

A government grant related to income is accounted for as follows: (i) if the grant is a compensation forrelated expenses or losses to be incurred in subsequent periods, the grant is recognised as deferredincome, and released in profit or loss or offset against related expenses over the periods in which therelated costs are recognised; or (ii) if the grant is a compensation for related expenses or losses alreadyincurred, it is recognised immediately in profit or loss or offset against relevant expenses.

A government grant relating to an asset shall be offset against the carrying amounts of relevant assets,or recognised as deferred income and amortised in profit or loss over the useful life of the related assetby annual instalments in a systematic and rational way (however, a government grant measured at anominal amount is recognised directly in profit or loss). Where the assets are sold, transferred, retiredor damaged before the end of their useful lives, the rest of the remaining deferred income is released toprofit or loss for the period in which the relevant assets are disposed of.

(32) Income tax

Income tax comprises current and deferred tax. Income tax is recognised as income or expense inprofit or loss, or recognised directly in equity if it arises from a business combination or relates to atransaction or event which is recognised directly in equity.

Current tax liabilities or assets arising from the current and prior periods at the amount expected to bepaid by the Group or returned by the tax authority calculated according to related tax laws.

Deferred tax is provided using the balance sheet liability method, on all temporary differences at thebalance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the tax bases and the carrying amounts of the items, which have a taxbase according to related tax laws but are not recognised as assets and liabilities.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(1) when the taxable temporary difference arises from the initial recognition of goodwill, or an asset

or liability in a transaction that is not a business combination and, at the time of transaction,affects neither accounting profit nor taxable profit or loss; and

(2) in respect of taxable temporary differences associated with investments in subsidiaries,

associates and joint ventures, when the timing of the reversal of the temporary differences canbe controlled and it is probable that the temporary differences will not be reversed in theforeseeable future.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(32) Income tax (Continued)

Deferred tax assets are recognised for all deductible temporary differences, and the carryforward ofunused tax losses and any unused tax credits. Deferred tax assets are recognised to the extent that itis probable that taxable profit will be available against which the deductible temporary differences, thecarryforward of unused tax losses and unused tax credits can be utilised, except:

(1) when the deductible temporary difference arises from the initial recognition of an asset or liability

in a transaction that is not a business combination and, at the time of the transaction, affectsneither the accounting profit nor taxable profit or loss; and

(2) in respect of the deductible temporary differences associated with investments in subsidiaries,

associates and joint ventures, deferred tax assets are only recognised to the extent that it isprobable that the temporary differences will be reversed in the foreseeable future and taxableprofit will be available against which the temporary differences can be utilised in the future.

At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that areexpected to apply to the period when the asset is realised or the liability is settled, in accordance with therequirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflectsthe tax consequences that would follow from the manner in which the Group expects, at the balancesheet date, to recover the assets or settle the liabilities.

The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to theextent that it is no longer probable that sufficient taxable profit will be available in future periods to allowthe deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the balancesheet date and are recognised to the extent that it has become probable that sufficient taxable profit willbe available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceableright to set off current tax assets and current tax liabilities, and the deferred tax assets and deferred taxliabilities relate to income taxes levied by the same taxation authority on either the same taxable entity ordifferent taxable entities which intend either to settle current tax liabilities and assets on a net basis, or torealise the assets and settle the liabilities simultaneously, in each future period in which significantamounts of deferred tax liabilities or assets are expected to be settled or recovered.

(33) Other significant accounting judgements and estimates

Identification of leases

At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contractis, or contains, a lease if the contract conveys the right to control the use of an identified asset for aperiod of time in exchange for consideration. To assess whether a contract conveys the right to controlthe use of an identified asset for a period of time, the Group assesses whether, throughout the period ofuse, the customer has both of the right to obtain substantially all of the economic benefits from use of theidentified asset and the right to direct the use of the identified asset.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(33) Other significant accounting judgements and estimates (Continued)

Identification of separate lease components

For a contract that contains multiple separate lease components, the Group separates the componentsof the contract and accounts for each separate lease component. The right to use an underlying assetis a separate lease component if both:

(1) the lessee can benefit from use of the underlying asset either on its own or together with other

resources that are readily available to the lessee; and

(2) the underlying asset is neither highly dependent on, nor highly interrelated with, the other

underlying assets in the contract.

Separating lease components and non-lease components

For a contract that contains lease components and non-lease components, the Group accounts for leasecomponents and non-lease components separately as a lessor or a lessee.

Assessment of the lease term

The lease term is the non-cancellable period of a lease for which the Group has the right to use anunderlying asset. If the Group has an option to extend the lease, that is, the Group has the right toextend the lease, and is reasonably certain to exercise that option, the lease term also includes periodscovered by an option to extend the lease. If the Group has an option to terminate the lease, that is, theGroup has the right to terminate the lease, but is reasonably certain not to exercise that option, the leaseterm includes periods covered by an option to terminate the lease. The Group reassesses whether it isreasonably certain to exercise an extension option, purchase option, or not to exercise a terminationoption, upon the occurrence of either a significant event or a significant change in the circumstances thatis within the control of the Group and affects whether the Group is reasonably certain to exercise anoption not previously included in its determination of the lease term.

As leasee

The accounting treatment of the Group as lease please refer to Note.III.29 and Note III.35.

Lease modifications

Lease modification is a change in the scope of a lease, or the consideration for a lease, that was not partof the original terms and conditions of the lease, for example, adding or terminating the right to use oneor more underlying assets, or extending or shortening the contractual lease term.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(33) Other significant accounting judgements and estimates (Continued)

Lease modifications (Continued)

The Group accounts for a lease modification as a separate lease if both:

(1) the modification increases the scope of the lease by adding the right to use one or more

underlying assets; and

(2) the consideration for the lease increases by an amount commensurate with the stand-alone

price for the increase in scope and any appropriate adjustments to that stand-alone price toreflect the circumstances of the particular contract.

For a lease modification that is not accounted for as a separate lease, at the effective date of the leasemodification the Group remeasures the lease liability by discounting the revised lease payments using arevised discount rate. The revised discount rate is determined as the interest rate implicit in the leasefor the remainder of the lease term, or the lessee’s incremental borrowing rate at the effective date of themodification, if the interest rate implicit in the lease cannot be readily determined.

For a lease modification that is not accounted for as a separate lease, the Group accounts for theremeasurement of the lease liability by:

(1) decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of

the lease for lease modifications that decrease the scope of the lease, and recognising the gainor loss relating to the partial or full termination of the lease in profit or loss; or

(2) making a corresponding adjustment to the right-of-use asset for all other lease modifications.

Short-term leases and leases of low-value assets

The Group considers a lease that, at the commencement date of the lease, has a lease term of 12months or less, and does not contains any purchase option as a short-term lease; and a lease for whichthe value of the individual underlying asset is not more than RMB40,000 when it is new as a lease oflow-value assets. If the Group subleases an asset, or expects to sublease an asset, the head leasedoes not qualify as a lease of a low-value asset. The Group does not recognise the right-of-use assetsand lease liabilities for short-term leases and low-value assets. The Group recognises lease paymentson short-term leases and leases of low-value assets in the costs of the related asset or profit or loss on astraight-line basis over the lease term.

As lessor

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental toownership of an underlying asset, except that a lease is classified as an operating lease at the inceptiondate. The Group, as an intermediate lessor, classifies the sublease by reference to the right-of-useasset arising from the head lease.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(33) Other significant accounting judgements and estimates (Continued)

As lessor of an operating lease

Rent income under an operating lease is recognised on a straight-line basis over the lease term, throughprofit or loss. Variable lease payments that are not included in the measurement of lease receivablesare charged to profit or loss as incurred.

The Group accounts for a modification to an operating lease as a new lease from the effective date of themodification, considering any prepaid or accrued lease payments relating to the original lease as part ofthe lease payments for the new lease.

(34) Others

Governmental medical reserve funds and specially approved reserving materials

Appointed by the PRC Government, CNPGC is responsible for purchasing, allocating and providing thegovernmental medical reserves, which include the medical products, traditional Chinese medicine andmedical appliances for nation-wide emergency rescue and disaster relief. Appointed by the Governmentof Guangxi Province and Guangdong Province, the Company, Sinopharm Holding Guangxi Co., Ltd.(“Sinopharm Guangxi”) and Sinopharm Holding Guangzhou Co., Ltd. (“Sinopharm Guangzhou”) areresponsible for purchasing, allocating and providing the medical reserves, which include the medicalproducts needed for serious disasters, epidemics and other emergencies as well as endemic diseases inGuangxi Province and Guangdong Province. In accordance with the regulation of CNPGC, being theenterprise which bears the obligation for specially approved medical reserving materials, the medicalreserve funds received from the PRC Government or local government are recognised as othernon-current liabilities. The Group reserves the specially approved medical reserving materials accordingto the reserve program (by category and by quantity), applies dynamic management and recognizesthem as other non-current assets.

Dividend distribution

Cash dividend distribution is recognised as a liability in the period in which it is approved by shareholdersat the annual shareholders’ meeting.

Fair value measurement

At each balance sheet date, the Group measures the fair value of equity instrument investments. Fairvalue means the price receivable from the disposal of an asset or required to be paid for the transfer of aliability in an orderly transaction incurred by market participants on the measurement date. The Groupmeasures assets or liabilities at fair value with the assumption that the orderly transaction of assetdisposal or the transfer of liabilities takes place in the major market for the relevant assets or liabilities.Where there is no major market, the Group assumes that such transaction takes place in the mostfavourable market for the relevant assets or liabilities. The major market (or most favourable market) is atrading market which the Group has access to on the measurement date. The Group adoptsassumptions used by market participants when they price the asset or liability with the aim of maximisingits economic benefits.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

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

(34) Others (Continued)

Fair value measurement (Continued)

The measurement of non-financial assets measured at fair value should take into account the ability ofmarket participants to utilise the asset in the best way for generating economic benefits, or the ability todispose of such asset to other market participants who are able to utilise the asset in the best way forgenerating economic benefits.

The Group adopts valuation techniques that are appropriate in the current circumstances and supportedby sufficient usable data and other information. Observable input will be used first and foremost.Unobservable input will only be used when it is not possible or practicable to obtain observable input.

The fair value hierarchy in which an asset or liability is measured or disclosed in the financial statementsat fair value will be determined on the basis of the lowest level of input which is significant for the fairvalue measurement as a whole. Input at the first level represents unadjusted quoted prices in an activemarket for the acquisition of the same asset or liability on the measurement date. Input at the secondlevel represents directly or indirectly observable assets or liabilities apart from input at the first level.Input at the third level represents unobservable input for the asset or liability.

At each balance sheet date, the Group reassesses assets and liabilities measured at fair value on anongoing basis recognised in the financial statements to determine whether the level of fair valuemeasurement should be changed.

Segment information

The Group identifies operating segments based on the internal organization structure, managementrequirements and internal reporting system, and discloses segment information of reportable segmentswhich is determined on the basis of operating segments.

An operating segment is a component of the Group that satisfies all of the following conditions: (1) thecomponent is able to earn revenues and incur expenses from its ordinary activities; (2) the component’soperating results are regularly reviewed by the Group’s management to make decisions about resourcesto be allocated to the segment and to assess its performance, and (3) for which the information onfinancial position, operating results and cash flows is available to the Group. If two or more operatingsegments have similar economic characteristics and satisfy certain conditions, they are aggregated intoone single operating segment.

Significant accounting judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates andassumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and theiraccompanying disclosures, and the disclosure of contingent liabilities at the balance sheet date.Uncertainty about these assumptions and estimates could result in outcomes that could require amaterial adjustment to the carrying amounts of the assets or liabilities affected in the future.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements

In the process of applying the Group's accounting policies, management has made the followingjudgements which have a significant effect on the amounts recognised in the financial statements:

Operating leases - the Group as lessorThe Group has entered into lease agreements on its investment property portfolio. The Group hasdetermined these leases to be operating leases, based on an evaluation of the terms and conditions ofthe agreements, that it retains substantially all the significant risks and rewards of ownership of theseproperties.

Business modelsThe classification of financial assets at initial recognition depends on the Group's business model formanaging financial assets. When determining the business model, the Group considers the methods toinclude evaluation and report financial asset performance to key management, the risks affecting theperformance of financial assets and the risk management, and the manner in which the relevantmanagement receives remuneration. When assessing whether the objective is to collect contractualcash flows, the Group needs to analyse and judge the reason, timing, frequency and value of the salebefore the maturity date of the financial assets.

Contractual cash flow characteristicsThe classification of financial assets at initial recognition depends on the financial asset’s contractualcash flow characteristics, and the judgements on whether the contractual cash flows are solelypayments of principal and interest on the principal amount outstanding, including when assessing themodification of the time value of money, the judgement on whether there is any significant differencefrom the benchmark cash flow and whether the fair value of the prepayment features is insignificant forfinancial assets with prepayment features, etc.

Estimation uncertaintyThe key assumptions concerning the future and other key sources of estimation uncertainty at thebalance sheet date, that have a significant risk of causing a material adjustment to the carrying amountsof assets and liabilities within the future accounting periods, are described below.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Impairment of financial instrumentsThe Group uses the expected credit loss model to assess the impairment of financial. The Group isrequired to perform significant judgement and estimation and take into account all reasonable andsupportable information, including forward-looking information. When making such judgements andestimates, the Group infers the expected changes in the debtor's credit risk based on historicalrepayment data combined with economic policies, macroeconomic indicators, industry risks and otherfactors. The different estimates may impact the impairment assessment, and the provision forimpairment may also not be representative of the actual impairment loss in the future.

Impairment of non-current assets other than financial assets (other than goodwill)The Group assesses whether there are any indications of impairment for all non-current assets otherthan financial assets at the balance sheet date. Intangible assets with indefinite useful lives are testedfor impairment annually and at other times when such an indication exists. Other non-current assetsother than financial assets are tested for impairment when there are indications that the carryingamounts may not be recoverable. An impairment exists when the carrying amount of an asset or assetgroup exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and thepresent value of the future cash flows expected to be derived from it. The calculation of the fair valueless costs of disposal based on available data from binding sales transactions in an arm’s lengthtransaction of similar assets or observable market prices less incremental costs for disposing of theassets. When the calculations of the present value of the future cash flows expected to be derived froman asset or asset group are undertaken, management must estimate the expected future cash flowsfrom the asset or asset group and choose a suitable discount rate in order to calculate the present valueof those cash flows. Further details are included in Note V.12/13/14/15/16.

Impairment of goodwillThe Group determines whether goodwill is impaired at least on an annual basis. This requires anestimation of the present value of the future cash flows expected to be derived from the asset groups(sets of asset groups) to which the goodwill is allocated. Estimating the present value requires theGroup to make an estimate of the expected future cash flows from the asset groups (sets of assetgroups) and also to choose a suitable discount rate in order to calculate the present value of those cashflows. Further details are included in Note V.17.

Deferred tax assetsDeferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxableprofit will be available against which the losses can be utilised. Significant management judgement isrequired to determine the amount of deferred tax assets that can be recognised, based upon the likelytiming and level of future taxable profits together with future tax planning strategies.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Fair value of unlisted equity investmentsThe unlisted equity investments have been valued based on the expected cash flows discounted atcurrent rates applicable for items with similar terms and risk characteristics. This valuation requires theGroup to make estimates about expected future cash flows, credit risk, volatility and discount rates, andhence they are subject to uncertainty.

Loyalty pointsThe Group makes reasonable estimate of the stand-alone selling price of the loyalty points by taking intoaccount all relevant information, such as the stand-alone selling prices for the customer to acquireadditional free goods or services or the discounts enjoyed by the customer using the loyalty points andthe possibility for the customer to exercise the redemption right. The Group considers the likelihood forthe customer to exercise the redemption right based on the historical data of point redemption, thecurrent point redemption and the future changes for the customer, the future trend of the market andother factors. The Group re-evaluates the stand-alone selling price of loyalty points at least on eachbalance sheet date and determines the transaction price to be allocated to the loyalty points based onthe stand-alone selling price of the re-evaluated loyalty points.

Sales with a right of returnThe Group makes reasonable estimate of a group of contracts with similar characteristics according tothe sales return historical data, the current sales return situation, as well as customer changes, marketchanges and other relevant information. Estimates of the expected return rate may not berepresentative of the actual returns in the future. The Group re-evaluates the return rate at least oneach balance sheet date and updates the measurement of the refund liabilities and the right-of-returnassets based on the re-evaluated return rate.WarrantiesThe Group makes reasonable estimate of the warranty rate of a group of contracts with similarcharacteristics based on historical warranty data, current warranty, as well as all relevant informationsuch as product improvements, market changes, etc. Estimates of the expected warranty rate may notbe representative of the actual warranty rate in the future. The Group re-evaluates the warranty rate atleast on each balance sheet date and updates the measurement of the provisions based on there-evaluated warranty rate.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

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

(34) Others (Continued)

Significant accounting judgements and estimates (Continued)

Judgements (Continued)

Estimation uncertainty (Continued)

Assessment of constrains on variable considerationThe Group estimates, within a reasonable quantity, the amount of variable consideration that may occurand the likelihood by taking into account all reasonably available information, including historicalinformation, current information, and predictive information. The Group includes in the transaction pricesome or all of an amount of variable consideration estimated only to the extent that it is highly probablethat a significant reversal in the amount of cumulative revenue recognised will not occur when theuncertainty associated with the variable consideration is subsequently resolved. In assessing whetherit is highly probable that a significant reversal in the amount of cumulative revenue recognised will notoccur once the uncertainty related to the variable consideration is subsequently resolved, the Groupconsiders both the likelihood and the magnitude of the revenue reversal. On each balance sheet date,the Group updates the estimated transaction price (including updating its assessment of whether anestimate of variable consideration is constrained) to reflect the circumstances present at the end of thereporting period and the changes in circumstances during the reporting period.

Lessee’s incremental borrowing rateIf the interest rate implicit in the lease cannot be readily determined, the Group measures the leaseliability at the present value of the lease payments discounted using the lessee’s incremental borrowingrate. According to the economic environment, the Group takes the observable interest rate as thereference basis for determining the incremental borrowing rate, then adjusts the observable interest ratebased on its own circumstances, underlying assets, lease terms and amounts of lease liabilities todetermine the applicable incremental borrowing rate.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VI. Taxation

1. Main categories and rates of taxes:

	Categories	Tax base	Tax rate
	Value added tax (“VAT”)	Taxable value added amount (Tax payable is calculated by using the taxable sales amount multiplied by the effective tax rate less deductible VAT input of the current period)	0%, 1%, 3%, 5%, 6%, 9%, 13%
	City maintenance and construction tax	Amount of VAT	5% or 7%
	Corporate income tax (“CIT”)	Taxable income	15%, 20% or 25%
	Educational surcharge	Amount of VAT	3%
	Local educational surcharge	Amount of VAT	2%

2. Tax preferences

(a) In 2011, the Urumqi Head Office, Changji Branch and Karamay Branch of Sinopharm HoldingXinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special Medicines”),subsidiaries of the group, shall pay tax payable at a rate of 15% by jurisdictions. According to theCircular of the Ministry of Finance, the State Administration of Taxation, the General Administrationof Customs on Issues Concerning Tax Policies for the Further Development of the Western Regions(Cai shui [2011] No.58), enterprises from encouraged industries in the Western Regions, couldenjoy a reduced CIT rate of 15% from 1 January 2011 to 31 December 2020.

In 2014, the Group’s subsidiary Sinopharm Holding Guangxi Logistics Co., Ltd. (“SinopharmGuangxi Logistics”) was approved by the Guangxi Local Tax Bureau to enjoy a tax discountapplicable to corporations in the region of Western Development to pay income tax at a tax rate of15%.

In 2015, eight subsidiaries in Guangxi Province of the Group, including Sinopharm Guangxi,Sinopharm Holding Liuzhou Co., Ltd. (“Sinopharm Liuzhou”) , Sinopharm Holding Beihai Co., Ltd(“Sinopharm Beihai”), Sinopharm Holding Guilin Co., Ltd. (“Sinopharm Guilin”), Sinopharm HoldingGuigang Co., Ltd. (“Sinopharm Guigang”), Sinopharm Holding Yulin Co., Ltd. (“Sinopharm Yulin”),Sinopharm Holding Baise Co., Ltd (“Sinopharm Baise”) and Sinopharm Holding Wuzhou Co., Ltd.(“Sinopharm Wuzhou”) were all approved by the Guangxi Local Tax Bureau to enjoy a taxconcession of Western Development at a preferential CIT rate of 15%. The applicable period forSinopharm Guangxi, Sinopharm Liuzhou and Sinopharm Beihai is 1 January 2014 to 31 December2020, and that for the other 5 subsidiaries is 1 January 2015 to 31 December 2020.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

IV Taxation (Continued)

2. Tax preferences (Continued)

In 2019, the Group's subsidiary Sinopharm Holding National Pharmacy

(Pu‘er) Songmao Co., Ltd., inaccordance with the provisions of Caishui [2011] No. 58 Document, met the conditions for theenjoyment of corporate income tax benefits in the Western Development, and obtained theconfirmation letter of Pu 'er City Development and Reform Commission that the relevant business ofPu 'er Song Maoji Antang Pharmaceutical Co., LTD was the encouraged industry of the country. Theenterprise income tax was paid at a preferential tax rate of 15% from 2019 to 2020.

According to the "Notice on Implementing the Inclusive Tax Deduction Policy for Small and MicroEnterprises" (Cai Shui [2019] No. 13): the Group's subsidiary which met the requirements of smalland meager profit enterprises paid corporate income tax at a rate of 20% and reduced the taxableincome by 25% if the annual taxable was less than RMB 1 million. And if the annual taxable wasbetween RMB 1 million and 3 million, the Group's subsidiary reduced the taxable income by 50%from 1 January 2019 to 31 December 2020.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements

1. Cash and bank balances

		30 June 2020		31 December 2019
	Cash on hand	13,254,761.42		5,333,515.38
	Cash at banks (Note 1)	8,008,457,260.74		8,437,723,437.66
	Other cash balances (Note 2)	218,128,205.64		442,672,297.43
		8,239,840,227.80		8,885,729,250.47
	Note 1: Current deposits earn interest at the rate based on current deposit interest rates. Maturities of short-term time deposits range from 1 month to 6 months depending on the fund arrangements of the Group, and the deposits earn interest at the respective deposit rates. The maturities of bank notice deposits are 7 days depending on the fund arrangement of the Group, and the deposits earn interest at the respective deposit rates. Balance of cash and cash equivalents in cash at banks is RMB7,987,307,260.74 (31 December 2019: RMB8,420,737,654.78). Balance of interest receivable from cash at banks not yet due at the end of the period is RMB21,150,000.00 (31 December 2019: RMB16,985,782.88) Note 2: Other monetary funds as at 30 June 2020 include: bank acceptance bills guarantee of RMB 217,953,399.64 (31 December 2019: RMB442,547,491.43) as well as deposit of the letter of guarantee of RMB174,806.00 (31 December 2019: RMB124,806.00).

2. Notes receivable

	(1) The notes receivable by category
		30 June 2020		31 December 2019
	Commercial acceptance bills	402,639,901.74		793,301,688.64
		402,639,901.74		793,301,688.64

	(2) At the end of the period, the company transferred the acceptance notes to accounts receivable due to the drawer's failure to perform the contract:
				Amount transferred to accounts receivable at the end of the period
	Commercial acceptance bills			728,020.99

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable

(1) The accounts receivable by category
	30 June 2020							31 December 2019
	Gross carrying amount			Provision for bad debt		Gross carrying value		Gross carrying amount			Provision for bad debt		Gross carrying value
	Amount	Proportion		Amount	Proportion			Amount	Proportion		Amount	Proportion
Items for which provision for bad debt is recognized separately	791,162,699.66	5.66%		18,189,265.80	2.30%	772,973,433.86		586,321,444.68	5.45%		18,329,609.15	3.13%	567,991,835.53
Items for which provision for bad debt is recognized by group	13,179,058,766.79	94.34%		59,337,066.24	0.45%	13,119,721,700.55		10,172,578,829.97	94.55%		27,587,121.32	0.27%	10,144,991,708.65
	13,970,221,466.45	100.00%		77,526,332.04	0.55%	13,892,695,134.41		10,758,900,274.65	100.00%		45,916,730.47	0.43%	10,712,983,544.18

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category (Continued)

	Accounts receivable that are individually assessed for provisions
		Carrying amount	Bad debt provision	Proportion	Assessment for impairment
	Receivable of medical insurance	576,508,029.76	-	0.00%	The receivable of medical insurance has lower-tier default risk.
	Client A	11,559,178.29	11,559,178.29	100.00%	Debtor had irregular operations of subject to serious financial difficulties and related to multiple lawsuits, is with lower-tier recoverability.
	Client B	2,447,976.74	2,447,976.74	100.00%	Debtor had irregular operations of subject to serious financial difficulties, and has been placed on a national list of defaulters, with highly risk of going bankruptcy or financial restructuring.
	Client C	2,365,253.03	2,365,253.03	100.00%	Debtor had irregular operations of subject to serious financial difficulties, and has been placed on a national list of defaulters, with highly risk of going bankruptcy or financial restructuring.
	Others	198,282,261.84	1,816,857.74	0.92%	Part of the receivable takes longer than usual to recover, and has risk of recoverability.
		791,162,699.66	18,189,265.80		-

	Provision for bad debts of accounts receivable according to the general model of expected credit loss
		30 June 2020
		Estimated default amount	Expected credit loss in entire lifetime	Expected credit loss rate
	Within 1 year	12,948,463,247.57	38,221,387.67	0.30%
	1 to 2 years	218,440,449.79	18,054,393.73	8.27%
	2 to 3 years	8,678,368.49	1,985,006.57	22.87%
	Over 3 years	3,476,700.94	1,076,278.27	30.96%
		13,179,058,766.79	59,337,066.24

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category (Continued)

	The aging analysis of accounts receivables:
		30 June 2020
	Within 1 year	13,721,343,683.59
	1 to 2 years	224,065,055.60
	2 to 3 years	8,678,368.49
	Over 3 years	16,134,358.77
		13,970,221,466.45

(2) Changes in bad debt provision, recovery or reverse

Bad debt provision for the current period

		Opening balance		Amount changes in current period				Closing balance
				Increases	Reversal	Increases in merger	Reversal of write-off in previous years
	Accounts receivable bad debt provision		45,916,730.47	24,586,368.81	(4,407,868.49)	11,263,303.38	167,797.87	77,526,332.04

(3) The top five accounts receivable by customer

		Amount	% of the total accounts receivable	Bad debt provision amount
	The top five accounts receivable in total	870,584,683.17	6.26%	4,023,082.69

(4) Accounts receivable derecognized due to the financial assets transferred

From January to June 2020, the Group factored a small portion of accounts receivable at amortised cost to financial institutions. The amount of accounts receivable derecognised was RMB2,756,648,565.22 (January to June 2019: RMB2,707,165,636.40), and the amount of loss recognised through Investment income was RMB33,507,102.64 (January to June 2019: RMB42,268,803.55).

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

4. Receivable financing

		30 June 2020		31 December 2019
	Bank acceptance bills	399,889,650.01		446,342,588.46

	Receivable financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2020
		30 June 2020
		Derecognised	Not Derecognised
	Bank acceptance bills	2,305,328,560.58	-

5. Advances to suppliers

(1)	The aging of advances to suppliers
		30 June 2020		31 December 2019
		Amount	% of total balance	Amount	% of total balance
	Within 1 year	409,588,936.38	98.69%	388,572,636.93	99.68%
	1 to 2 years	5,231,662.72	1.26%	244,213.07	0.06%
	2 to 3 years	83,222.53	0.02%	815,319.09	0.21%
	Above 3 years	133,651.00	0.03%	196,616.45	0.05%
		415,037,472.63	-	389,828,785.54	-
	The illustration of the reasons why advance payments with a more than one-year aging while the amounts are significant not settled in time: On 30 June 2020, advance payments with a more than one-year aging are mainly prepaid equipments and prepaid rents.

(2)	The top five advances to suppliers by customer on 30 June 2020
		Amount		Proportion of total balance
Total amount of top five advances to suppliers		147,282,145.54		35.49%

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables

		30 June 2020	31 December 2019
	Dividends receivable	-	834,914.61
	Other receivables	613,031,947.42	501,123,926.82
		613,031,947.42	501,958,841.43

	(1) Dividends receivable
			30 June 2020	31 December 2019
		Shanghai Dingqun Enterprise Management Consulting Co., Ltd.	-	834,914.61

	(2) Other receivables
	(a) Category of other receivables by nature
		30 June 2020	31 December 2019
	Deposits	325,055,837.65	275,364,596.97
	Receivable of price reduction compensation and purchasing rebates	109,165,508.43	67,585,688.47
	Receivable of the pharmaceutical electronic trading platform	52,855,538.34	49,597,763.58
	Entrusted borrowings	46,334,222.24	45,360,333.35
	Petty cash advance to employees	18,865,088.01	11,606,921.79
	Receivable of equity transactions	8,980,000.00	8,980,000.00
	Receivable due from related parties	1,950,270.73	25,786,279.26
	Others	116,635,565.91	81,032,902.12
		679,842,031.31	565,314,485.54

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables (Continued)

(b) Changes in bad debt provision

	Stage 1	Stage 2	Stage 3
Bad debt	Expected credit losses over the next 12 months	Entire lifetime expected credit losses(No credit impairment occurred)	Entire lifetime expected credit losses(Credit impairment occurred)	Total
Balance at 1 January 2020	-	7,107,131.41	57,083,427.31	64,190,558.72
Balance at 1 January 2020 during the period
Provisions during the period	-	1,033,302.06	1,385,884.43	2,419,186.49
Reversal during the period	-	(1,017,455.29)	-	(1,017,455.29)
Write-off during the period	-	(124,000.00)	-	(124,000.00)
Other Changes	-	1,341,793.97	-	1,341,793.97
Balance at 30 June 2020	-	8,340,772.15	58,469,311.74	66,810,083.89

The aging analysis of other receivables was as follows:

		30 June 2020
	Within 1 year	542,153,839.37
	1 to 2 years	26,056,296.78
	2 to 3 years	50,957,128.63
	Over 3 years	60,674,766.53
		679,842,031.31

(c) Changes in bad debt provision, recovery or reverse

The bad debt provision amount of other receivables in current period was RMB2,419,186.49, with the recovered or reversedamount of RMB1,017,455.29. The write-off amount of other receivables in current period was RMB124,000.00.

Guoda Pharmacy, a subsidiary of the Group, acquired Shanghai Dingqun which led the bad debt provision amount of otherreceivables in current period increased RMB1,341,793.97.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

6. Other receivables (Continued)

(d) The top 5 parties that owed the largest amounts of other receivable balances

	Nature	Amount	Age	% of total amount	Provision of bad debt
Guangdong Pharmaceutical electronic trading platform	Pharmaceutical trading platform repayment not yet cleared	52,491,794.34	Within 1 year	7.72%	-
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd. (Note)	Entrusted borrowings	46,334,222.24	2 to 3 years	6.82%	46,334,222.24
Jilin Oilfield General Hospital	Deposits	30,000,000.00	Within 1 year	4.41%	-
TCM-Integrated Cancer Center of Southern Medical University	Deposit of logistics extension services project	20,000,000.00	3 to 4 years	2.94%	-
Shenyang Medical Insurance Management Service Center	Amount due from medical insurance	19,676,195.95	Within 1 year	2.89%	-
		168,502,212.53		24.79%	46,334,222.24

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

7. Inventories

(1)	Inventories by category
		30 June 2020				31 December 2019
		Book value	Provision for declines in value of inventories and impairment of contract performance costs	Net book value		Book value	Provision for declines in value of inventories or impairment of contract performance costs	Net book value
	Raw materials	955,930.73	-	955,930.73		645,627.66	-	645,627.66
	Work in progress	178,002.50	-	178,002.50		140,458.20	-	140,458.20
	Finished goods	5,351,309,550.74	10,411,125.72	5,340,898,425.02		5,067,666,999.13	8,902,200.40	5,058,764,798.73
	Low cost consumables	2,874,381.92	-	2,874,381.92		3,723,258.67	-	3,723,258.67
		5,355,317,865.89	10,411,125.72	5,344,906,740.17		5,072,176,343.66	8,902,200.40	5,063,274,143.26

(2)	Provision for declines in value of inventories and impairment of contract performance costs

		31 December 2019	Increases		Decreases		30 June 2020
			Provision	Addition due to combination	Reversal or write-off	Others
	Finished goods	8,902,200.40	3,457,289.05	362,553.37	2,310,917.10	-	10,411,125.72

8. Other current assets

		30 June 2020		31 December 2019
	Input VAT to be credited	81,207,754.10		101,376,702.28
	Corporate income tax to be deducted	2,433,581.63		513,305.14
	Others	408,552.85		317,490.78
		84,049,888.58		102,207,498.20

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

9. Long-term equity investments

	Investee	31 December 2019	Changes in current period						30 June 2020	Provision for impairment
			Additional Investment	Negative investment	Profit of loss under equity method	Other comprehensive income adjustment	Other changes in equity	Cash dividend declared by investee
	Associates
	Shenzhen Main Luck Pharmaceutical Inc. (“Main Luck Pharmaceutical”)	294,469,367.27	-	-	34,556,440.58	-	-	(63,342,000.00)	265,683,807.85	-
	Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. (“Shanghai Beiyi”)	9,887,944.98	-	-	549,217.13	-	-	-	10,437,162.11	-
	Shanghai Liyi Pharmacy Co., Ltd. (“Shanghai Liyi”)	1,039,039.88	-	-	-	-	-	-	1,039,039.88	-
	Shanghai Renbei Pharmacy Co., Ltd. (“Shanghai Renbei”)	1,800,000.00	-	-	-	-	-	-	1,800,000.00	-
	Dongyuan Accord Pharmaceutical Chain Co., Ltd. (“Dongyuan Accord”)	-	-	-	-	-	-	-	-	396,638.32
	Sinopharm Jienuo Medical Treatment Service Guangdong Co., Ltd. (“Guangdong Jienuo”)	6,453,679.96	-	-	(639,160.54)	-	-	-	5,814,519.42	-
	Guangdong Jianhui Construction Investment Management Co., Ltd. (“Guangdong Jianhui”)	1,854,647.81	6,000,000.00	-	145,352.19	-	-	-	8,000,000.00	-
	Zhijun Suzhou	-	--	-	-	-	-	-	0.00	1,857,279.52
	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. (“Zhijun Medicine”)	400,578,574.68	-	-	17,400,995.09	-	-	-	417,979,569.77	-
	Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. (“Zhijun Trade”)	10,275,257.61	-	-	757,325.01	-	-	-	11,032,582.62	-
	Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. (“Zhijun Pingshan”)	120,878,018.74	-	-	27,665,891.90	-	-	-	148,543,910.64	-
	Shanghai Shyndec Pharmaceutical Co.,Ltd, (“Shyndec Pharma”)	1,235,240,098.79	-	-	53,168,842.80	122,186.89	14,135.44	(16,714,220.20)	1,271,831,043.72	-
	Shanghai Dingqun Enterprise Management Consulting Co., Ltd. (“Shanghai Dingqun”)	22,637,781.16	-	(22,637,781.16)	-	-	-	-	-	-
		2,105,114,410.88	6,000,000.00	(22,637,781.16)	133,604,904.16	122,186.89	14,135.44	(80,056,220.20)	2,142,161,636.01	2,253,917.84

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

10. Other equity instrument investment

		30 June 2020		31 December 2019
	Sinopharm Health Online Co., Ltd.	96,748,000.00		96,748,000.00
	Shanghai Guoda Shuguang Pharmacy Co., Ltd.	8,365,000.00		8,365,000.00
	Shanghai Guoren Pharmacy Co., Ltd.	5,704,000.00		5,704,000.00
	Sinopharm Guoda Hubei Co., Ltd.	4,751,000.00		4,751,000.00
	Hunan Zhongbai Pharmaceutical Investment Co., Ltd.	453,000.00		453,000.00
		116,021,000.00		116,021,000.00

11. Other non-current financial assets

		30 June 2020		31 December 2019
	Financial asset measured at fair value through current profit or loss	120,972,350.24		140,000,000.00
	On June 30, 2020, the balance of other non-current financial assets was the fair value of the share of Sinopharm CICC Medical Industry Fund (referred to as “the Industry Fund”) subscribed by the Company. The Group's 21st meeting of the 7th Board of Directors held on January 6, 2017 reviewed and approved the proposal of the Company to subscribe for the industry fund and related party transactions. As a limited partner of the Industry Fund, the Company plans to invest RMB200 million to subscribe for the share of the Industrial Fund, which will be paid in three phases.The Industrial Fund obtained the relevant licenses as well as approvals and started operating in 2018. As of December 31, 2019, the Company had paid a total of RMB 140 million. The Company received the withdraw fund of this project’s principal of RMB19,027,649.76 from Qirui Port Investment Center LP of Ningbo Meishan Bonded Port. Since the cash flow obtained by the Company from the investment of the Industry Fund includes both the contractual cash flow generated by the underlying assets during the investment period and the cash flow of the disposal of the underlying assets, the contractual cash flow that does not satisfy the financial assets generated on a specific date is only the payment of interest on the basis of the outstanding principal amount, therefore, the Company classifies the investment of the Industry Fund into financial assets measured at fair value through profit or loss and presented as other non-current financial assets.

.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

12. Investment properties

Subsequent measurement under the cost model:

		Buildings and constructions	Land use right	Construction in progress	Total
Original cost
Opening balance		243,610,633.09	22,719,102.03	-	266,329,735.12
Increase amount in current period		202,865.73	-	-	202,865.73
Purchase		2,865.73	-	-	2,865.73
Transfer from inventories\fixed assets\construction in progress		200,000.00	-	-	200,000.00
Decrease amount in current period		11,562,525.28	1,730,283.59	-	13,292,808.87
Disposal or retirement		2,720,126.63	-	-	226.63
Transfer to intangible assets		-	1,730,283.59	-	1,730,283.59
Transfer to fixed assets		8,842,398.65	-	-	8,842,398.65
Closing balance		232,250,973.54	20,988,818.44	-	253,239,791.98
Accumulated depreciation and amortization
Opening balance		117,940,803.43	8,188,573.39	-	126,129,376.82
Increase amount in current period		2,999,424.16	114,228.44	-	3,113,652.60
Provision		2,933,025.28	114,228.44	-	353.72
Transfer from fixed assets		66,398.88	-	-	66,398.88
Decrease amount in current period		6,942,885.60	450,957.66	-	7,393,843.26
Disposal or retirement		1,830,106.44	-	-	1,830,106.44
Transfer to intangible assets		-	450,957.66	-	450,957.66
Transfer to fixed assets		5,112,779.16	-	-	5,112,779.16
Closing balance		113,997,341.99	7,851,844.17	-	121,849,186.16
Provision for impairment
Opening balance and Closing balance		1,300,000.00	-	-	1,300,000.00
Carrying amount
At end of the period		116,953,631.55	13,136,974.27	-	130,090,605.82
At beginning of the period		124,369,829.66	14,530,528.64	-	138,900,358.30

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets

		30 June 2020		31 December 2019
	Fixed assets	716,847,033.81		708,000,172.63

(1)	Condition of fixed assets

		Buildings	Machinery and equipment	Motor vehicles	Office equipments	Electronic equipments	Total
	Original cost
	Opening balance	603,848,760.59	239,741,250.34	90,023,564.89	322,298,724.55	90,133,289.24	1,346,045,589.61
	Increase amount in current period	8,842,398.65	29,686,043.50	6,103,974.09	18,584,722.03	17,834,413.27	81,051,551.54
	Purchase	-	26,587,842.12	5,271,101.19	13,435,072.46	17,298,530.99	62,592,546.76
	Transfer from construction in progress	-	2,762,433.88	-	-	-	2,762,433.88
	Business combinations	-	335,767.50	832,872.90	5,149,649.57	535,882.28	6,854,172.25
	Transfer from Investment properties	8,842,398.65	-	-	-	-	8,842,398.65
	Decrease amount in current period	200,000.00	2,948,811.58	2,033,850.94	5,403,408.46	6,839,844.04	17,425,915.02
	Disposal or retirement	-	2,948,811.58	2,033,850.94	5,403,408.46	6,839,844.04	17,225,915.02
	Transfer to investment properties	200,000.00					200,000.00
	Closing balance	612,491,159.24	266,478,482.26	94,093,688.04	335,480,038.12	101,127,858.47	1,409,671,226.13

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets (Continued)

(1) Condition of fixed assets (Continued)
		Buildings	Machinery and equipment	Motor vehicles	Office equipments	Electronic equipments	Total
	Accumulated depreciation
	Opening balance	210,725,255.48	114,086,892.23	58,060,958.31	195,644,163.28	59,528,147.68	638,045,416.98
	Increase amount in current period	14,128,973.18	19,823,458.34	4,080,452.14	15,648,096.19	12,579,646.47	66,260,626.32
	Provision	9,016,194.02	19,823,458.34	4,080,452.14	15,648,096.19	12,579,646.47	61,147,847.16
	Transfer from Investment properties	5,112,779.16	-	-	-	-	5,112,779.16
	Decrease amount in current period	66,398.88	2,144,599.72	1,919,607.20	2,965,344.14	4,385,901.04	11,481,850.98
	Disposal or retirement	-	2,144,599.72	1,919,607.20	2,965,344.14	4,385,901.04	11,415,452.10
	Transfer to investment properties	66,398.88	-	-	-	-	66,398.88
	Closing balance	224,787,829.78	131,765,750.85	60,221,803.25	208,326,915.33	67,721,893.11	692,824,192.32
	Carrying amount
	At end of period	387,703,329.46	134,712,731.41	33,871,884.79	127,153,122.79	33,405,965.36	716,847,033.81
	At beginning of the period	393,123,505.11	125,654,358.11	31,962,606.58	126,654,561.27	30,605,141.56	708,000,172.63

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

13. Fixed assets (Continued)

(2) Condition of Fixed assets falling to accomplish certification of title

	Book value	Reason for not obtaining certification of title
Houses and buildings	25,912,957.40	As at 30 June 2020, the Company has not yet obtained the certification of title for No.13 Jingxing North Street, Tiexi District, Shenyang. The transferor, the State-owned Assets Supervision and Administration Commission, was still processing the case and had provided a relevant notification.

14. Construction in progress

		30 June 2020		31 December 2019
	Construction in progress	29,000,528.39		31,582,575.84

(1)	Condition of construction in progress

		30 June 2020			31 December 2019
		Carrying balance	Impairment	Carrying amount	Carrying balance	Impairment	Carrying amount
	Warehouse improvement project	3,146,431.51	-	3,146,431.51	1,232,957.94	-	1,232,957.94
	New office building project	96,609.62	-	96,609.62	110,090.53	-	110,090.53
	Supply chain extension project	6,188,066.46	-	6,188,066.46	8,081,340.80	-	8,081,340.80
	Software project	10,768,504.76	-	10,768,504.76	13,197,683.52	-	13,197,683.52
	Other construction projects	8,800,916.04	-	8,800,916.04	8,960,503.05	-	8,960,503.05
		29,000,528.39	-	29,000,528.39	31,582,575.84	-	31,582,575.84

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

14. Construction in progress (Continued)

(2)	Changes of significant construction in progress in current period

	Project name	Budget	Opening balance	Increase	Decrease		Closing balance	Proportion of investment to budget	Project progress	Source of funds
					Transferred to fixed assets	Others
	Warehouse improvement project	13,281,971.98	1,232,957.94	3,892,668.96	842,610.88	1,136,584.51	3,146,431.51	38.59 %	38.59 %	Own capital
	New office building Project	500,000.00	110,090.53	-	-	13,480.91	96,609.62	22.02%	22.02%	Own capital
	Supply chain extension project	15,695,768.25	8,081,340.80	26,548.66	1,919,823.00	-	6,188,066.46	51.66%	51.66%	Own capital
	Software project	30,000,000.00	13,197,683.52	10,768,504.76	-	13,197,683.52	10,768,504.76	79.89%	79.89%	Own capital
	Other construction projects	205,059,930.48	8,960,503.05	45,261.93	-	204,848.94	8,800,916.04	4.39%	4.39%	Own capital
		264,537,670.71	31,582,575.84	14,732,984.31	2,762,433.88	14,552,597.88	29,000,528.39

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

15. Right-of-use assets

	Houses and buildings	Machinery, transport and office equipment	Others	Total
Original cost
Opening balance	2,634,697,656.23	14,470,094.95	2,418,809.35	2,651,586,560.53
Increase amount in current period	486,014,886.43	-	-	486,014,886.43
Incl: Business combinations not under common control	139,301,280.63	-	-	139,301,280.63
Decrease amount in current period	202,597,928.71	-	-	202,597,928.71
Disposal	202,597,928.71	-	-	202,597,928.71
Closing balance	3,057,415,894.58	14,470,094.95	2,418,809.35	3,074,304,798.88

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

15. Right-of-use assets (Continued)

	Houses and buildings	Machinery, transport and office equipment	Others	Total
Accumulated depreciation
Opening balance	652,657,513.16	4,075,450.60	95,734.70	656,828,698.46
Increase amount in current period	386,116,427.19	2,044,641.59	47,736.21	388,208,804.99
Depreciation	386,116,427.19	2,044,641.59	47,736.21	388,208,804.99
Incl: Business combinations not under common control	38,641,408.12	-	-	38,641,408.12
Decrease amount in current period	81,526,000.33	-	-	81,526,000.33
Disposal	81,526,000.33	-	-	81,526,000.33
Closing balance	995,889,348.14	6,120,092.19	143,470.91	1,002,152,911.24
Carrying amount
At end of the period	2,061,526,546.44	8,350,002.76	2,275,338.44	2,072,151,887.64
At beginning of the period	1,982,040,143.07	10,394,644.35	2,323,074.65	1,994,757,862.07

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

16. Intangible assets

	Land use rights	Software	Trademarks	Favorable leases	Distribution network	Franchise	Total
Original cost
Opening balance	62,083,143.97	175,625,594.44	92,349,850.00	127,486,000.00	112,117,142.86	710,000.00	570,371,731.27
Increase amount in current period	1,730,283.59	18,027,371.70	73,007,075.12	-	163,000,000.00	-	255,764,730.41
Purchases	-	2,839,548.43	-	-	-	-	2,839,548.43
Business combinations not under common control	-	1,990,139.75	73,007,075.12	-	163,000,000.00	-	237,997,214.87
Transfer from investment properties	1,730,283.59	-	-	-	-	-	1,730,283.59
Transfer from construction in progress	-	13,197,683.52	-	-	-	-	13,197,683.52
Closing balance	63,813,427.56	193,652,966.14	165,356,925.12	127,486,000.00	275,117,142.86	710,000.00	826,136,461.68
Accumulated amortization
Opening balance	28,858,577.16	88,726,743.09	196,850.16	30,792,570.91	46,298,190.47	710,000.00	195,582,931.79
Increase amount in current period	955,036.92	11,114,376.17	950.04	3,542,977.94	6,877,928.57	-	22,491,269.64
Provision	504,079.26	11,114,376.17	950.04	3,542,977.94	6,877,928.57	-	22,040,311.98
Transfer from investment properties	450,957.66	-	-	-	-	-	450,957.66
Closing balance	29,813,614.08	99,841,119.26	197,800.20	34,335,548.85	53,176,119.04	710,000.00	218,074,201.43

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

16. Intangible assets (Continued)

	Land use rights	Software	Trademarks	Favorable leases	Distribution network	Franchise	Total
Provision for impairment
Opening balance	-	-	-	-	-	-	-
Closing balance	-	-	-	-	-	-	-
Carrying amount
At end of the year	33,999,813.48	93,811,846.88	165,159,124.92	93,150,451.15	221,941,023.82	-	608,062,260.25
At beginning of the year	33,224,566.81	86,898,851.35	92,152,999.84	96,693,429.09	65,818,952.39	-	374,788,799.48

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill

(1) Original Book Value of goodwill

Names of the investee or matters of forming goodwill	Opening balance	Increase during this period		Decrease during this period	Closing balance
		Merger of holdings not under common control	Business combinations not under common control
Sinopharm Holding (Jiangmen) Medical Co., Ltd. (“Sinopharm Jiangmen”)	27,392,317.73	-	-	-	27,392,317.73
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. (“Sinopharm Yanfeng”)	16,868,644.87	-	-	-	16,868,644.87
Sinopharm Holding Zhaoqing Co., Ltd. (“Sinopharm Zhaoqing”)	2,594,341.53	-	-	-	2,594,341.53
Sinopharm Holding Shaoguan Co., Ltd. (“Sinopharm Shaoguan”)	1,686,496.80	-	-	-	1,686,496.80
Sinopharm Holding Meizhou Co., Ltd. (“Sinopharm Meizhou”)	1,610,819.66	-	-	-	1,610,819.66
Sinopharm Holding Huizhou Co., Ltd. (“Sinopharm Huizhou”)	923,184.67	-	-	-	923,184.67
Sinopharm Holding Zhanjiang Co., Ltd. (“Sinopharm Zhanjiang”)	282,135.55	-	-	-	282,135.55
Sinopharm Holding Dongguan Co., Ltd. (“Sinopharm Dongguan”)	1,499.02	-	-	-	1,499.02
South Pharma & Trade	2,755,680.62	-	-	-	2,755,680.62
Foshan Nanhai	88,877,850.51	-	-	-	88,877,850.51
Sinopharm Holding Zhuhai Co., Ltd.(“Sinopharm Zhuhai”)	6,772,561.47				6,772,561.47
Sinopharm Holding Maoming Co., Ltd.(“Sinopharm Maoming”)	66,417.07	-	-	-	66,417.07
Sinopharm Holding Guoda ForMe Medicines (Shanghai) Co., Ltd. (“ForMe Medicines’’)	3,033,547.53	-	-	-	3,033,547.53
Sinopharm Hebei Lerentang Pharmacy Chain Store Co., Ltd.(“Hebei Lerentang”)	29,482,149.57	-	-	-	29,482,149.57
Xiaoyi Guoda Wanmin Baicaotang Pharmacy Chain Store Co., Ltd. (“Xiaoyi Wanmin”)	15,866,680.00	-	-	-	15,866,680.00
Shanxi Guoda Wanmin Pharmacy Chain Store Co., Ltd. (“Shanxi Wanmin”)	65,025,000.00	-	-	-	65,025,000.00
Sinopharm Holding Guoda ForMe Pharmacy Chain Store Co., Ltd. (“ForMe Pharmacy Chain Store”)	19,405,450.23	-	-	-	19,405,450.23
Sinopharm Holding Guoda Pharmacy Chain Store Shanghai Co., Ltd.	5,028,638.00	-	-	-	5,028,638.00
Sinopharm Holding Guoda Yangzhou Dadesheng Pharmacy Chain Store Co., Ltd.	7,979,000.00	-	-	-	7,979,000.00
Zhejiang Guoda Pharmacy Co., Ltd.	3,045,183.85	-	-	-	3,045,183.85
Sinopharm Holding Guoda Nanjing Pharmacy Chain Store Co., Ltd.	11,598,341.12	-	-	-	11,598,341.12
Fujian Guoda Pharmacy Chain Store Co., Ltd.	1,567,250.76	-	-	-	1,567,250.76

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(1) Original Book Value of goodwill (Continued)

Names of the investee or matters of forming goodwill	Opening balance	Increase during this period		Decrease during this period	Closing balance
		Merger of holdings not under common control	Business combinations not under common control
Sinopharm Holding Guoda Shandong Pharmacy Chain Store Co., Ltd.	29,110,409.46	-	-	-	29,110,409.46
Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co., Ltd. (“Guoda Shenyang”)	41,047,958.08	-	-	-	41,047,958.08
Liyang Guoda People Pharmacy Chain Store Co., Ltd.	107,275,095.74	-	-	-	107,275,095.74
Sinopharm Holding Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd.	41,165,574.64	-	-	-	41,165,574.64
Quanzhou Guoda Pharmacy Chain Store Co., Ltd. (“Guoda Quanzhou”)	41,298,622.59	-	-	-	41,298,622.59
Sinopharm Holding Guoda Henan Pharmacy Chain Store Co., Ltd.	22,666,179.77	-	-	-	22,666,179.77
Guoda Neimenggu	70,485,777.00	-	-	-	70,485,777.00
Sinopharm Guoda Pharmacy Jiangmen Chain Co., Ltd.	77,350,000.00	-	-	-	77,350,000.00
Sinopharm Holding Guoda Shanxi Yiyuan Pharmacy Chain Store Co., Ltd.	9,080,100.00	-	-	-	9,080,100.00
Shenzhen Guanganli Pharmacy Chain Store Co., Ltd. ‘s Store Acquisition	13,420,000.00	-	-	-	13,420,000.00
Beijing Golden Elephant Pharmacy Medicine Chain Company Limited	64,140,124.36	-	-	-	64,140,124.36
Guoda Taishan	26,826,120.55	-	-	-	26,826,120.55
Taiyuan Tongxinli Pharmacy Co., Ltd. (“Taiyuan Tongxinli”)	2,818,647.85	-	-	-	2,818,647.85
Sinopharm Holding Guoda Yongxingtang Pharmacy Chain Store (Chaoyang) Co., Ltd (“Chaoyang Yongxingtang”)	25,973,399.17	-	-	-	25,973,399.17
Sinopharm Holding Guoda Bayannur Co., Ltd.	13,494,000.00	-	-	-	13,494,000.00
Guoda Pu’er	71,064,684.79	-	-	-	71,064,684.79
Shanghai Dingqun Enterprise Management Consulting Co., Ltd.	-	520,836,246.17	-	-	520,836,246.17
Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.	-	-	34,037,431.66	-	34,037,431.66
	1,035,057,927.17	520,836,246.17	34,037,431.66	-	1,589,931,605.00

(2) Provision of impairment loss

	Names of the investee or matters of forming goodwill	Opening balance	Increase	Decrease	Closing balance
	Quanzhou Guoda Pharmacy Chain Store Co., Ltd.	25,000,000.00	-	-	25,000,000.00

Relevant information of asset group or combination of asset groups in which goodwill is located

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(2) Provision of impairment loss (Continued)

Explain the process of goodwill impairment test, key parameters (such as the growth rate in the forecastperiod, the growth rate in the stable period, the profit rate, the discount rate, the forecast period, etc.) andthe recognition method of goodwill impairment loss:

The carrying value of goodwill is apportioned according to the proportion of each asset group orcombination of asset groups at fair value of the total amount of goodwill at fair value. It is shown asfollows:

	30 June 2020	31 December 2019
Pharmaceutical distribution	152,865,497.03	152,865,497.03
Pharmaceutical retail	1,412,066,107.97	857,192,430.14
	1,564,931,605.00	1,010,057,927.17

The recoverable amount of asset group and combination of asset groups is calculated based on thefive-year period budget approved by the management while using the cash flow forecast method. Thecash flows beyond the five-year period are extrapolated using the inflation rate.

Key assumptions were used for the calculation of the present values of future cash flow projections ofasset group and combination of asset groups consisting of pharmaceutical distribution andpharmaceutical retail as of 30 June 2020. Key assumptions made by management on projections ofcash flows used in impairment testing are described as follows:

	Pharmaceutical distribution	Pharmaceutical retail
Revenue growth rate in the budget period	2.00%-40.00%	0.86%-35.00%
Sustainable growth rate	3.00%	3.00%
Gross margin	3.70%-6.94%	18.80%-41.22%
Discount rate	12.40%-15.00%	13.00%-15.00%

The budgeted gross margin and the revenue growth rate in the budget period are determined based onthe past performance and expectation for market development. The discount rates used are pre-taxdiscount rates after reflecting specific risks of the relevant asset groups. The recoverable amount of theasset group consisting of pharmaceutical distribution and pharmaceutical retail was determinedaccording to the key assumptions.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

Impact of goodwill impairment testVII. Notes to the consolidated financial statements (Continued)

17. Goodwill (Continued)

(2) Provision of impairment loss (Continued)

Other declarations

The Group had acquired Shanghai Dingqun Enterprise Management Consulting Co., Ltd. in January2020, which formed goodwill amounting to RMB520,836,246.17. Refer to Note VIII (1) for the calculativeprocess.

The Group had acquired 43 directly-operated stores and 11 clinics of Liaoning Xianzhen PharmaceuticalChain Co., Ltd. in January 2020, which formed goodwill amounting to RMB34,037,431.66. Refer to NoteVIII (6) for the calculative process.

18. Long-term prepaid expenses

		Opening balance	Additions	Amortization	Other decrease	Closing balance
	Fixed asset improvement expenditure	277,430,842.46	32,090,618.69	46,186,637.44	574,966.71	262,759,857.00
	Acquisition expenditure to obtain the right to operate	67,134,884.98	10,234,469.22	8,563,697.31	-	68,805,656.89
	Others	28,962,240.70	390,900.59	4,844,401.16	-	24,508,740.13
		373,527,968.14	42,715,988.50	59,594,735.91	574,966.71	356,074,254.02

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

19. Deferred tax assets/liabilities

(1)	Deferred tax assets before offseting
		30 June 2020			31 December 2019
		Deductible temporary differences	Deferred tax assets		Deductible temporary differences	Deferred tax assets
	Provision for impairment of assets	154,608,453.64	37,042,164.04		119,337,381.49	28,279,430.24
	Accrued expenses	79,114,804.56	19,537,676.82		101,057,882.46	24,536,658.05
	Deferred Income	36,901,990.37	8,911,273.37		32,719,558.79	7,996,709.35
	Deductible tax loss	30,884,711.16	7,893,514.29		30,789,517.62	7,536,230.76
	Accrued payroll	9,176,816.17	1,861,880.58		11,868,705.75	2,454,711.04
	Others	146,351,742.65	34,786,664.66		78,831,333.02	17,989,763.45
		457,038,518.55	110,033,173.76		374,604,379.13	88,793,502.89

(2)	Deferred tax liabilities before offseting
		30 June 2020			31 December 2019
		Taxable temporary differences	Deferred tax liabilities		Taxable temporary differences	Deferred tax liabilities
	Fair value adjustment for business combination not involving enterprises under common control	596,762,261.00	144,013,564.34		354,297,299.88	88,574,324.96
	Changes in fair value of financial assets through other comprehensive income	102,335,240.00	25,583,810.00		102,335,240.00	25,583,810.00
	Others	140,375,102.86	33,924,631.13		124,248,282.00	29,809,501.58
		839,472,603.86	203,522,005.47		580,880,821.88	143,967,636.54

(3)	Deferred tax assets and liabilities are presented after being offset against each other:
			30 June 2020		31 December 2019
			Deferred tax assets/liabilities	Temporary differences	Deferred tax assets/liabilities -	Temporary differences

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

		-Net	after set-off	Net	after set-off
	Deferred tax assets	22,573,284.83	87,459,888.93	25,682,673.77	63,110,829.12
	Deferred tax liabilities	22,573,284.83	180,948,720.64	25,682,673.77	118,284,962.77

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

19. Deferred tax assets/liabilities (Continued)

(4)	The deductible temporary differences and deductible losses that were not recognized as deferred tax assets are presented as follows:
		30 June 2020	31 December 2019
	Deductible temporary differences	3,873,005.85	(4,654,442.98)
	Deductible loss	41,606,495.83	49,106,535.92
		45,479,501.68	44,452,092.94

(5)	The aforesaid unrecognized deductible losses will due:
		30 June 2020	31 December 2019
	2020	4,725,707.87	4,725,707.87
	2021	2,563,056.08	2,563,056.08
	2022	7,261,117.97	7,261,117.97
	2023	11,977,477.56	11,977,477.56
	2024	22,579,176.44	22,579,176.44
		49,106,535.92	49,106,535.92

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

20. Other non-current assets

	30 June 2020				31 December 2019
	Carrying balance	Impairment		Carrying amount	Carrying balance	Impairment		Carrying amount
Physical assets reserve specifically authorized	204,600,543.73	-		204,600,543.73	55,550,834.89	-		55,550,834.89
Security deposit	98,860,000.00	-		98,860,000.00	-	-		-
Prepayment for project and equipment	30,525,646.70	-		30,525,646.70	21,713,763.10	-		21,713,763.10
Prepayment for rental fee	-	-		-	90,372.40	-		90,372.40
	333,986,190.43	-		333,986,190.43	77,354,970.39	-		77,354,970.39

21. Short-term borrowings

			30 June 2020	31 December 2019
	Credit borrowings		3,710,647,467.19	1,388,979,951.89
	Discounted notes		-	64,038,348.12
			3,710,647,467.19	1,453,018,300.01
	At 30 June 2020, the annual interest rate for the above borrowings was 3.98% (31 December 2019: 4.44%). At 30 June 2020 and December 31 2019, there were no short-term borrowings of the Group that were overdue but not yet paid.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

22. Notes payable

			30 June 2020		31 December 2019
	Commercial acceptance bills		27,478,678.61		40,343,723.78
	Bank acceptance bills		4,664,347,083.37		5,515,353,833.75
			4,691,825,761.98		5,555,697,557.53

At 30 June 2020, the total amount of notes payable that were due but not yet paid was nil (31 December 2019: nil).

23. Accounts payable

			30 June 2020		31 December 2019
	Payment for goods		8,077,705,277.54		6,703,967,826.54

At 30 June 2020, significant accounts payable aged over one year was analyzed below:

			30 June 2020		Reason
	Payment for goods		411,112,452.26		Not yet settled

At 30 June 2020, accounts payable aged over one year, mainly the unsettled payment for goods, was RMB411,112,452.26(31 December 2019: RMB331,837,741.84).

24. Contract liabilities

			30 June 2020		31 December 2019
	Contract liabilities		287,186,619.13		303,194,940.70

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

25. Employee benefits payable

		31 December 2019	Increase	Decrease	30 June 2020
	Short-term employee benefits (1)	254,250,943.71	1,182,689,350.81	1,230,281,170.97	206,659,123.55
	Post-employment benefits (defined contribution plan) (2)	5,057,047.69	51,315,317.37	41,513,011.89	14,859,353.17
	Termination benefits	332,821.70	661,707.33	678,749.56	315,779.47
		259,640,813.10	1,234,666,375.51	1,272,472,932.42	221,834,256.19

(1)	Short-term employee benefits

		31 December 2019	Increase	Decrease	30 June 2020
	Salaries, bonuses, allowances and grants	240,039,850.54	1,051,177,293.05	1,101,589,900.12	189,627,243.47
	Staff welfare	1,390,324.53	29,067,766.74	29,296,335.09	1,161,756.18
	Social security contribution	1,749,787.15	39,494,596.49	38,189,199.17	3,055,184.47
	Incl: Medical insurance	1,488,183.67	35,996,281.26	35,121,968.13	2,362,496.80
	Work injury insurance	34,813.39	1,032,214.29	851,069.33	215,958.35
	Maternity insurance	226,790.09	2,466,100.94	2,216,161.71	476,729.32
	Housing funds	1,461,572.85	41,848,007.31	41,545,943.42	1,763,636.74
	Labor union funds and employee education funds	8,550,047.84	18,536,769.22	17,424,875.17	9,661,941.89
	Other short-term benefits	1,059,360.80	2,564,918.00	2,234,918.00	1,389,360.80
		254,250,943.71	1,182,689,350.81	1,230,281,170.97	206,659,123.55

(2)	Defined contribution plan

		31 December 2019			Increase		Decrease			30 June 2020
	Basic pension insurance	1,971,797.54		48,143,186.16			38,656,748.31		11,458,235.39
	Unemployment insurance	107,237.57		1,832,179.77			1,494,194.44		445,222.90
	Contribution to pension fund	2,978,012.58		1,339,951.44			1,362,069.14		2,955,894.88
		5,057,047.69		51,315,317.37			41,513,011.89		14,859,353.17

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

Note：For the half year of 2020, the Group provided other termination benefits for severing labor relations of RMB155,676.56. For the half year of 2019, the Group provided other termination benefits for severing labor relations of RMB153,286.50. For the half year of 2020 and 2019, other termination benefits that were reversed for there was no need to pay for severing labor relations were nil.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

26. Tax payable

		30 June 2020		31 December 2019
	Value-added tax	108,825,512.97		88,904,599.66
	Corporate Income taxes	143,919,371.54		127,697,970.77
	Individual income tax	9,783,502.58		4,532,506.64
	City maintenance and construction surtax	7,171,349.99		6,795,877.54
	Water conservancy fund	5,562,715.52		5,488,930.64
	Educational surcharge	5,234,896.01		5,089,214.42
	Stamp duty	3,710,928.46		6,089,170.55
	Property tax	716,939.75		532,454.30
	Land use tax	27,219.91		11,137.20
	Others	8,076,841.92		8,237,662.62
		293,029,278.65		253,379,524.34

27. Other payables

		30 June 2020		31 December 2019
	Interest payable	16,242,505.92		23,632,632.90
	Dividend payable	11,831,814.95		6,389,320.96
	Other payables	1,766,753,318.57		1,792,342,683.76
		1,794,827,639.44		1,822,364,637.62

	(1) Interest payable
		30 June 2020		31 December 2019
	Factoring interest on accounts receivable	16,242,505.92		23,632,632.90

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

27. Other payables (Continued)

	(2) Dividend payable
		30 June 2020		31 December 2019
	Shenzhen Jiufeng Investment Co.,Ltd.	5,442,493.99		-
	Shanghai Fosun Pharmaceutical (Group) Co., Ltd.	4,835,511.58		4,835,511.58
	Zhenfang Zhang	1,389,639.31		1,389,639.31
	Meiluo Pharmaceutical Co., Ltd.	164,170.07		164,170.07
		11,831,814.95		6,389,320.96

At 30 June 2020 and 31 December 2019, the Group had no significant dividend aged more than one year and not yet paid.

	(3) Other payables
		30 June 2020		31 December 2019
	Payables for factoring programs	567,495,639.43		849,490,467.87
	Deposit	455,465,836.66		425,140,894.94
	Payables arising from acquisition of subsidiaries	247,858,171.71		72,193,635.62
	Accrued expenses	138,625,440.62		129,552,787.78
	Payables to individuals	94,124,011.89		32,783,589.00
	Payables for construction in progress and equipment	70,827,853.48		56,723,800.74
	Payables for rentals	51,769,768.87		26,375,012.00
	Equity subscription	36,000,000.00		46,023,136.00
	Temporary loans	15,800,000.00		15,800,000.00
	Collection of others	15,513,845.86		11,844,558.24
	Payables for land transfer payments	12,597,500.00		12,597,500.00
	Payables to related parties	1,920,951.59		67,028,812.08
	Others	58,754,298.46		46,788,489.49
		1,766,753,318.57		1,792,342,683.76

At 30 June 2020, significant other payables over 1 year are:

Amount payable

Reason for outstanding

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

	Changchun Shenshang Trade Co., Ltd.	21,706,566.50		Payment conditions not met
	Foshan Gaoming District People's Hospital	13,245,282.96		Payment conditions not met
	Shenyang Tiexi District State-owned Assets Supervision and Administration Bureau	12,597,500.00		Payment conditions not met
	Guangzhou Kaiti Biotechnology Co., Ltd.	7,000,000.00		Payment conditions not met
	Liuzhou Shengli Drugstore	5,943,068.92		Payment conditions not met
	Guangzhou Baiqiang Bio-pharm Co., Ltd.	5,800,000.00		Payment conditions not met
		66,292,418.38

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

28. Non-current liabilities due within 1 year

		30 June 2020		31 December 2019
	Long-term borrowings due within 1 year	-		31,638,984.25
	Lease liabilities due within 1 year	616,449,909.74		580,278,863.12
		616,449,909.74		611,917,847.37

29. Other current liabilities

		30 June 2020		31 December 2019
	Output VAT to be recognized	836,086.14		749,710.19

30. Long-term borrowings

	At 30 June 2020, the total amount of remaining entrusted loans was nil(31 December 2019: RMB31,638,984.25). CNPGC entrusted Sinopharm Group Finance Co., Ltd. to provide the loan. Borrowings due within one year have been reclassified to non-current liabilities due within one year at 31 December 2019.
	At 30 June 2020, the weighted average annual interest rate of the entrusted loans was nil (31 December 2019: 4.04%).

31. Lease liabilities

		30 June 2020		31 December 2019
	Lease payment	1,832,526,074.67		1,788,731,892.63
	Less: Lease liabilities due within 1 year	(616,449,909.74)		(580,278,863.12)
		1,216,076,164.93		1,208,453,029.51

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

32. Long-term payables

			30 June 2020		31 December 2019
	Payables for specific projects		800,000.00		800,000.00

Payables for specific projects:

		31 December 2019		Increase		Decrease		30 June 2020	Reasons of derred income
	Special funds granted by government	800,000.00		-		-		800,000.00	Granted by the government

33. Long-term employee benefits payable

		30 June 2020		31 December 2019
	Early retirement benefits payable	1,390,000.00		1,433,000.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

34. Deferred income

		Opening balance		Increase		Decrease		Closing balance	Reasons of derred income
	Government grants	88,704,272.88		1,114,910.87		3,824,129.74		85,995,054.01	Government grants

	As at 30 June 2020, deferred income from government grants are as follows:
	Government grants program	Opening balance	Addition	Amount included in non-operating income	Amount included in other income	Closing balance	Asset related/ income related
	Resettlement Compensation (Note)	72,857,032.61	-	1,349,204.28	-	71,507,828.33	Asset related
	Guangxi Logistics Project	6,045,353.50	-	-	194,631.86	5,850,721.64	Asset related
	A comprehensive experimental modern service industry subsidies	21,780.55	6,758.22	-	-	28,538.77	Asset related
	Shared Logistics Center	233,257.95	-	-	9,400.20	223,857.75	Asset related
	Other projects	9,546,848.27	1,108,152.65	323,646.29	1,947,247.11	8,384,107.52	Asset/Income related
		88,704,272.88	1,114,910.87	1,672,850.57	2,151,279.17	85,995,054.01
	Note: Due to the implementation of urban planning for old town reconstruction in Nanning, the operating center of Guangxi Logistics which was located in Longteng Road District, Nanning City, was to be reconstructed in another place. According to the agreement signed between Guangxi Logistics and the real estate developer in May 2012, Guangxi Logistics would obtain a compensation of RMB120,250,000.00, including cash of RMB50,000,000.00 and a property in construction equal to value of RMB70,250,000.00. Cash compensation of RMB50,000,000.00 was received in May 2012. In 2015, construction properties with a value of RMB70,250,000.00 were built and delivered, and had been recognised as investment properties. The compensation relating to the capital expenditure in the reconstruction of the new logistic center in another place, amounting to RMB93,320,000.00, was recognised as deferred revenue, and would be amortized and recognised in the income statement within the expected useful lives using the straight-line method, and the other cash compensation, of which the amount approximates to RMB26,930,000.00, was recognised in the income statement in 2012.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

35. Other non-current liabilities

				30 June 2020		31 December 2019
		Contract liabilities		53,375.33		53,785.13
		Emergency special reserve funds (1)		396,709,549.65		-
		Governmental medical reserve funds (2)		46,723,743.31		46,723,743.31
		Product promotion accumulative points programme (3)		29,002,964.11		26,478,986.49
				472,489,632.40		73,256,514.93
	(1) The emergency special reserve fund is the special fund set up to fight against the novel coronavirus infection pneumonia epidemic. (2) Governmental medical reserve funds are the funds received from the national and local governments for purchasing reserve medical supplies. (3) The Product promotion accumulative points programme refers to those product-originated accumulative points that remain more than one year surplus before the expiration date.

36. Share capital

			Movement during the current year
		31 December 2019	Issue of new share	Others	Subtotal	30 June 2020
	Shares	428,126,983.00	-	-	-	428,126,983.00

37. Capital surplus

		31 December 2019	Increase	Decrease	30 June 2020
	Share premium	2,118,174,787.27	-	-	2,118,174,787.27
	Other capital surplus (1)	2,352,592,172.17	-	97,854,894.55	2,254,737,277.62
		4,470,766,959.44		97,854,894.55	4,372,912,064.89
	(1) The decrease of RMB97,854,894.55 in other capital reserves during the half year of 2020 was mainly due to as follows:

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

38. Other comprehensive income

		Amounts changes in current period
	31 December 2019	Occurrence amount before tax	Attributable to shareholders of owners of the parent	30 June 2020
Other comprehensive income items which will not be reclassified subsequently to profit or loss	46,050,708.96		-	46,050,708.96
Incl: Change in the fair value of other equity investments	46,050,708.96		-	46,050,708.96
Other comprehensive income that may be reclassified to profit or loss	(133,366.19)	122,186.89	122,186.89	(11,179.30)
Incl: Other comprehensive income using the equity method that may be reclassified to profit or loss	(133,366.19)	122,186.89	122,186.89	(11,179.30)
	45,917,342.77	122,186.89	122,186.89	46,039,529.66

39. Surplus reserve

		31 December 2019	Increase	Decrease	30 June 2020
	Statutory surplus reserves	214,063,491.50	-	-	214,063,491.50

40. Retained earnings

		30 June 2020	31 December 2019
	Retained earnings at beginning of year before retrospective adjustment and restatement	7,755,295,537.08	6,655,257,147.27
	The retrospective adjustment and restatement (1)	(3,029,877.91)	328,013.78
	Retained earnings at beginning of year after retrospective adjustment and restatement	7,752,265,659.17	6,655,585,161.05
	Add: Net profit attributable to the parent	643,451,580.59	1,267,931,291.32
	Cash dividends declared	(256,876,189.80)	(171,250,793.20)
	Retained earnings on June 30, 2020	8,138,841,049.96	7,752,265,659.17

(1) The decrease of RMB3,029,877.91 of retained earnings was resulted from the business combinations involving entities undercommon control.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

41. Operating revenue and cost

		For the six months ended 30 June 2020		For the six months ended 30 June 2019
		Revenue	Cost	Revenue	Cost
	Principal operations	26,944,450,698.03	23,953,267,481.54	25,404,078,914.05	22,695,673,074.28
	Other operations	225,489,490.49	17,762,237.90	195,119,901.25	17,203,529.91
		27,169,940,188.52	23,971,029,719.44	25,599,198,815.30	22,712,876,604.19

	Classification	Head Office	Pharmaceutical distribution	Pharmaceutical retail	Elimination between segments	Total
	By product
	Incl:
	Pharmaceuticals	-	16,641,438,242.96	8,156,648,517.32	(422,361,134.63)	24,375,725,625.65
	Medical devices and disposables	-	1,750,812,482.89	434,627,699.58	-	2,185,440,182.47
	Diagnostic reagents	-	335,716,038.17	-	-	335,716,038.17
	Medical equipments	-	165,119,634.08	-	-	165,119,634.08
	Others	1,752,928.75	81,665,462.45	-	(5,701,598.40)	77,716,792.80
	By area
	Incl:
	China	1,752,928.75	18,974,751,860.55	8,591,276,216.90	(428,062,733.03)	27,139,718,273.17
	By contract duration
	Incl:
	At a point in time	-	18,893,086,398.10	8,591,276,216.90	(422,361,134.63)	27,062,001,480.37
	Over time	1,752,928.75	81,665,462.45	-	(5,701,598.40)	77,716,792.80
		1,752,928.75	18,974,751,860.55	8,591,276,216.90	(428,062,733.03)	27,139,718,273.17

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

41. Operating revenue and cost (Continued)

Information about the Group’s performance obligations is summarised below:

(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 daysfrom delivery;

(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service iscompleted.

Information related to the sales price allocated to the remaining obligations:

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled isRMB287,186,619.13, of which RMB287,186,619.13 is expected to be recognized in 2020.

Revenue is as follows:
	For the six month ended 30 June 2020		For the six month ended 30 June 2019
Revenue from contracts with customers	27,139,718,273.17		25,563,937,953.07
Rentals	30,221,915.35		35,260,862.23
	27,169,940,188.52		25,599,198,815.30

42. Tax and surcharges

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	City maintenance and construction tax	28,121,494.67		24,093,402.61
	Educational surcharge	20,311,577.25		17,361,303.42
	Property tax	2,492,284.79		3,222,428.64
	Land tax	317,162.91		316,667.35
	Vehicle and vessel use tax	72,575.73		75,549.45
	Stamp duty	17,140,178.76		17,540,813.09
	Others	1,050,035.21		101,229.81
		69,505,309.32		62,711,394.37

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

43. Selling expenses

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Employees payroll and welfare benefits	904,925,594.87		783,513,545.77
	Depreciation expenses of right-of-use assets	387,380,924.52		289,067,372.67
	Amortization of long-term deferred expenses	52,138,560.36		44,285,025.97
	Technical service fee	45,620,729.98		93,048,651.31
	Repairing fees	7,147,598.96		6,150,263.59
	Utilities	34,081,779.59		29,521,818.72
	Property management fee	15,659,321.63		13,758,182.29
	Rental expenses	60,573,717.68		88,051,897.57
	Transportation charges	51,095,840.37		42,481,965.66
	Depreciation expenses	43,808,801.59		41,024,228.63
	Promotion and marketing expenses	15,399,693.56		21,514,669.28
	Office allowances	27,895,774.76		19,914,617.62
	Entertainment expenses	9,358,003.62		11,670,679.46
	Storage expenses	18,300,237.30		15,216,365.97
	Travel allowances	1,845,288.42		3,017,736.94
	Market development fee	4,517,975.19		3,713,897.19
	Conference expenses	292,483.51		1,208,841.86
	Others	48,696,492.69		34,125,287.44
		1,728,738,818.60		1,541,285,047.94

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

44. Administrative expenses

		For the six month ended 30 June 2020		For the six month ended 30 June 2020
	Employees payroll and welfare benefits	325,153,640.16		274,365,059.08
	Depreciation expenses	16,351,496.61		14,817,248.80
	Office allowances	12,677,148.40		11,775,153.56
	Technical service fee	11,527,561.19		7,610,686.90
	Depreciation expenses of right-of-use assets	10,925,364.40		10,270,387.34
	Amortization of intangible assets	8,991,474.97		9,972,779.46
	Amortization of long-term deferred expenses	6,808,445.06		5,532,926.20
	Rental expenses	5,390,672.79		7,146,127.99
	Entertainment expenses	4,596,522.19		6,405,404.04
	Agency service fee	3,411,279.41		4,163,879.71
	Vehicle management expenses	3,169,051.19		3,744,396.56
	Property management fee	3,089,556.70		2,171,738.05
	Repairing fees	2,898,331.91		2,507,057.40
	Promotion and marketing expenses	2,180,552.03		3,417,621.60
	Utilities	1,919,161.42		3,826,117.17
	Travel allowances	1,822,634.84		3,818,046.45
	Conference expenses	730,264.28		2,693,174.37
	Others	21,643,987.37		17,610,533.23
		443,287,144.92		391,848,337.91

45. Finance costs

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Interest expenses	133,350,510.68		134,795,237.41
	Less: Interest income	65,512,550.22		60,641,102.49
	Cash discount	20,153,456.44		23,190,566.63
	Exchanges gain/(loss)	47,935.97		(389,882.62)
	Others	17,581,389.63		14,414,073.25
		65,313,829.62		64,987,758.92

A breakdown for interest income is as follows:

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Cash	65,512,550.22		60,641,102.49

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

46. Other incomes

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Government grants related to daily operating activities	25,786,877.95		13,664,566.88
	VAT reduction for small-scale taxpayers	8,383,678.31		2,440,639.30
	Taxation service charge refund	820,107.47		16,447.15
	VAT additional deduction	864,634.59		369,265.69
		35,855,298.32		16,490,919.02

47. Investment income

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Long-term equity investment income under the equity method	133,604,904.16		169,142,289.99
	Investment income from financial assets at fair value through profit or loss	4,109,881.90		-
	Investment income from the derecognition of financial assets measured at amortised cost	(33,507,102.64)		(42,268,803.55)
	Others	998,665.84		-
		105,206,349.26		126,873,486.44

48. Credit impairment losses

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Impairment loss of other receivables	(1,401,731.20)		(1,666,431.98)
	Impairment loss of accounts receivable	(20,178,500.32)		(9,767,669.15)
		(21,580,231.52)		(11,434,101.13)

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

49. Impairment losses

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Inventory provision	(1,743,888.30)		(125,554.34)

50. Gain on disposal of assets

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Gain on disposal of right-of-use assets	3,971,813.20		-
	Gain on disposal of fixed assets	333,511.60		(29,725.44)
		4,305,324.80		(29,725.44)

51. Non-operating income

		For the six month ended 30 June 2020		For the six month ended 30 June 2019	Amount classified as non-recurring profit or loss
	Government grants	1,349,204.28		1,349,204.28	1,349,204.28
	Gain from writing off the unnecessary payment	199,266.47		306,191.87	199,266.47
	Gain on disposal of non-current assets	2,171.01		195,336.00	2,171.01
	Others	3,669,338.46		1,822,960.30	3,669,338.46
		5,219,980.22		3,673,692.45	5,219,980.22

Government grants included in current period profit or loss:

Project Name	Government Department	Reasons for Government grants	Type	Affects the profit or loss of this year	Special subsidy	For the six months ended 30 June 2020	For the six months ended 30 June 2019	Related to asset/income
Resettlement Compensation of No. 7 Zhongyao Road	Nanning Economic & Technological Development Area Management Committee	Subsidy	Subsidies from local government for support policies such as attracting investment	Yes	No	1,349,204.28	1,349,204.28	Asset related

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

52. Non-operating expenses

		For the six month ended 30 June 2020		For the six month ended 30 June 2019		Amount classified as non-recurring profit or loss
	Donation expenses	527,677.41		-		527,677.41
	Penalty expenses	467,582.50		273,498.60		467,582.50
	Losses arising from damage and obsolescence of non-current assets	373,790.44		181,433.28		373,790.44
	Others	1,639,842.17		1,294,518.20		1,639,842.17
		3,008,892.52		1,749,450.08		3,008,892.52

53. Income tax expenses

		For the six month ended 30 June 2020		For the six month ended 30 June 2019
	Current income tax	213,477,221.94		184,056,184.46
	Deferred income tax	(3,370,457.59)		8,068,174.38
		210,106,764.35		192,124,358.84

	The reconciliation from income tax calculated based on applicable tax rates and total profit presented in the consolidated financial statements to the income taxes is listed below:
		For the six month ended 30 June 2020
	Profit before income tax		1,016,319,306.88
	Tax at the applicable tax rate		254,079,826.72
	Effect of different tax rates for some subsidiaries		(11,800,964.95)
	Adjustments in respect of current tax of previous periods		(553,240.46)
	Income not subject to tax		(33,401,226.04)
	Expenses not deductible for tax		1,361,683.42
	Unrecognised deductible temporary differences and tax losses		420,685.65
	Income tax		210,106,764.35

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

54. Notes to items in the cash flow statemen

(1)	Cash receipts related to other operating activities
				For the six months ended 30 June 2020				For the six months ended 30 June 2019
	Received the special emergency reserve fund from Guangdong Food and Strategic Reserves Bureau			330,000,000.00				-
	Interest income			65,499,031.75				60,227,651.15
	Rent income			30,221,915.35				38,487,260.93
	Received other government grants except tax refund			28,018,379.40				17,840,011.49
	Received operational restricted bank deposits			-				123,321,063.70
	Others			253,462,783.50				69,584,470.70
				707,202,110.00				309,460,457.97
(2)	Cash paid relating to other operating activities
				For the six months ended 30 June 2020				For the six months ended 30 June 2019
	Rental expenses			65,964,390.47				103,959,514.38
	Transportation charges			51,095,840.37				42,481,965.66
	Office expenses			40,572,923.16				31,689,771.18
	Utilities			36,000,941.01				33,347,935.89
	Storage expenses			18,300,237.30				15,222,526.30
	Advertising expenses			17,580,245.59				21,514,669.28
	Entertainment expenses			13,954,525.81				18,076,083.50
	Travel expenses			3,667,923.26				6,835,783.39
	Others			456,537,231.52				249,454,073.89
				703,674,258.49				522,582,323.47

(3)	Cash received relating to other investing activities
		For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Received from capital pool	22,000,000.00		260,600,000.00
	Others	40,000.00		-
		22,040,000.00		260,600,000.00

Shanghai Pudong New Area Pharmaceutical Co., Ltd., a subsidiary of the Group received the funds allocated from thecapital pool of its former parent company, Sinopharm Holdings Co., Ltd., during the same period last year, andrecovered the funds collected into the capital pool in this period.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

54. Notes to items in cash flow statement (Continued)

(4)	Cash paid relating to other investing activities
		For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Paid to capital pool	-		228,000,000.00
	Others	-		1,093,125.00
		-		229,093,125.00

	Shanghai Pudong New Area Pharmaceutical Co., Ltd., a subsidiary of the Group, collected the funds into the capital pool of its parent company, Sinopac Holdings Co., Ltd. in last period.
(5)	Cash received relating to other financing activities
		For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Received loan provided by minority shareholders	149,900,000.00		-
	Financing restricted monetary funds received	128,449,840.06		3,512,659.71
	Received loan provided by Sinmpharm	56,000,000.00		-
		334,349,840.06		3,512,659.71
(6)	Cash payments relating to other financing activities
		For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Lease payment	466,492,796.45		299,173,550.25
	Repayment of the loan provided by minority shareholders	304,000,000.00		-
	Bank factoring payable	281,994,828.44		174,269,120.18
	Investment fund of Shanghai Pudong New Area Pharmaceutical Co., Ltd.	163,115,049.98		-
	Repayment of the loan provided by Sinmpharm	114,000,000.00		-
	Purchase of equity of minority shareholders	52,309,117.11		-
	Others	23,199,872.28		36,719,497.31
		1,405,111,664.26		510,162,167.74

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

55. Supplementary information of cash flow statement

(1)	Reconciliation of net profit to cash flows from operating activities
		For the six month ended 30 June 2020	For the six month ended 30 June 2019
	Net profit	806,212,542.53	767,064,580.05
	Add: Provisions for asset impairment	23,324,119.82	11,559,655.47
	Depreciation of fixed assets	61,147,847.16	64,732,395.55
	Depreciation of right-of-use assets	388,208,804.99	302,028,195.79
	Amortization of intangible assets	22,955,311.98	15,002,033.78
	Amortization of long-term prepaid expenses	51,031,038.60	50,607,272.62
	Gains/(losses) on disposal of fixed assets, intangible assets and other long-term assets	(4,287,008.63)	222,202.30
	Finance expenses	124,862,298.31	65,730,326.01
	Investment losses	(105,206,349.26)	(127,616,053.53)
	(Increase)/decrease in deferred tax assets	(1,027,041.92)	5,891,176.39
	(Decrease)/increase in deferred tax liabilities	(2,343,415.67)	2,176,997.99
	Decrease in inventories	(85,043,215.49)	(490,003,184.76)
	Increase in operating receivables items	(2,023,296,252.84)	(1,984,309,017.89)
	(Decrease)/increase in operating payable items	(133,395,115.40)	2,422,514,591.29
	Others	2,315,060,479.17	33,552,949.83
	Net cash generated from operating activities	1,438,204,043.35	1,139,154,120.89

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

55. Supplementary information of cashflow statement (Continued)

(2)	Movement of cash
		For the six months ended 30 June 2020	For the six months ended 30 June 2019
	Cash at the end of the period	8,000,562,022.16	7,775,384,674.41
	Less: Cash at the beginning of the period	8,426,071,170.16	7,634,936,037.30
	Net increase in cash	(425,509,148.00)	140,448,637.11

(3)
			For the six months ended 30 June 2020
	Cash and cash equivalents paid for acquisitions of subsidiaries and other operating units		702,172,656.27
	Incl: Shanghai Dingqun Enterprise Management Consulting Co., Ltd.		683,453,553.00
	43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.		18,719,103.27
	Less: Cash and cash equivalents held by subsidiaries and other operating units at the acquisition date		42,971,164.62
	Incl: Shanghai Dingqun Enterprise Management Consulting Co., Ltd.		42,971,164.62
	43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.		-
	Net cash outflow/(inflow) on acquisition of the subsidiaries and other operating units		659,201,491.65

(4)	Cash and cash equivalent
		30 June 2020	31 December 2019
	Cash	8,000,562,022.16	8,426,071,170.16
	Inclue: Cash on hand	13,254,761.42	5,333,515.38
	Bank deposits on demand	7,987,307,260.74	8,420,737,654.78
	Ending banlance cash and cash equivalent	8,000,562,022.16	8,426,071,170.16

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

56. Assets under restricted ownership or right of use

		Book value	Reasons
	Cash and bank balances	218,128,205.64		Note 1-3

Note 1: As at 30 June 2020, the Group had deposits of bank acceptance bills and letter of credit deposit amounting toRMB218,128,205.64 (31 December 2019: RMB442,672,297.43) (Note V(1)).

Note 2: As at 30 June 2020, the Group had Commercial acceptance bills of RMB0.00, discounted but not due (31 December2019: RMB64,038,348.12) (Note V (2)).

Note 3: As at June 2020, the Group had Commercial acceptance bills of RMB0.00, endorsed but not due (31 December 2019:

0.00) (Note V (2)).

57. Government grants

	Type	Amount	Items of financial statements	The amount recorded into profit or loss for the current period
	Stabilitation allowances	9,258,969.12	Other income	9,258,969.12
	Special funds for science and technology issued by Shanghai Yangpu District Finance Bureau	4,184,000.00	Other income	4,184,000.00
	Emergency supplies	2,185,530.25	Other income	2,185,530.25
	Tax return	2,050,692.07	Other income	2,050,692.07
	Resettlement Compensation of No. 7 Zhongyu Road	1,349,204.28	Non-operating income /Deferred income	1,349,204.28
	Financial support fund	1,320,000.00	Other income	1,320,000.00
	supporting fund from Beijing commerce bureau	1,000,000.00	Other income	1,000,000.00
	Government grants for COVID-19	983,100.00	Other income	983,100.00
	Collection of housing compensation from Shanghai putuo district	940,000.00	Other income	940,000.00
	Government support fund from Shanghai jingan district finance bureau	780,000.00	Other income	780,000.00
	Government support fund	758,529.43	Other income	758,529.43

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

57. Government grants (Continued)

	Type	Amount	Items of financial statements	The amount recorded into profit or loss for the current period
	Tax allowance from Nanjing gulou district	592,168.98	Other income	592,168.98
	Guangzhou logistics standardization pilot project allowance	273,123.42	Other income /Deferred income	273,123.42
	VAT reduction or exemption for self-employment retired soldiers	230,070.00	Other income	230,070.00
	2013 Guangzhou subsidies for headquarters	173,525.33	Other income /Deferred income	173,525.33
	Centralized financial subsidy fund for comprehensive pilot work of modern service industry	150,000.00	Other income /Deferred income	150,000.00
	Financial subsidy for the construction of modern supply chain system in central circulation field	132,565.02	Other income /Deferred income	132,565.02
	Government support fund from Shanghai minxing district	130,000.00	Other income	130,000.00
	Special fund for the development of small and medium-sized enterprises from Shanghai yangpu district finance bureau	117,000.00	Other income	117,000.00
	Logistics project construction support fund from Nanning economic development committee	93,203.22	Other income /Deferred income	93,203.22
	Rewards for steady growth of business and trade from Xiamen huli district	75,000.00	Other income	75,000.00
	Medical storage center logistics information platform project allowance from Nanning finance bureau	71,428.64	Other income /Deferred income	71,428.64
	Guangzhou special subsidy for commerce and trade circulation industry	50,000.04	Other income /Deferred income	50,000.04
	Rewards for excellent enterprise from Liyang	50,000.00	Other income	50,000.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Notes to the consolidated financial statements (Continued)

57. Government grants (Continued)

	Type	Amount	Items of financial statements	The amount recorded into profit or loss for the current period
	Special Fund for the construction of Enterprise Research and development Institutions in Guangzhou	44,705.94	Other income /Deferred income	44,705.94
	One-time employment subsidy for college graduates	31,000.00	Other income	31,000.00
	Project subsidy of logistics cold chain integrated monitoring platform	30,000.00	Other income /Deferred income	30,000.00
	Allowance from Beijing circulation economic research center	16,400.00	Other income	16,400.00
	Medical intelligent supply chain e-commerce service platform technology project subsidy from Guangzhou liwan district	15,424.57	Other income /Deferred income	15,424.57
	Subsidy for industrialization application project of pharmaceutical cold chain patent incubator from Guangzhou liwan district	12,499.98	Other income /Deferred income	12,499.98
	Supply Chain Engineering Technology Research and Development Center project funding from Guangzhou liwan district	11,598.84	Other income /Deferred income	11,598.84
	Deduction of land use tax from Guangxi finance department	9,942.90	Other income	9,942.90
	Third party medicine modern logistics public information platform allowances from Guangzhou liwan district	9,400.20	Other income /Deferred income	9,400.20
	Rewards from Changzhi luzhou districtcommerce bureau	5,000.00	Other income	5,000.00
	Rewards from Qinzhou qinnan district commerce bureau	2,000.00	Other income	2,000.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation

1. Business combination not involving enterprises under common control

1.1 Acquiring Shanghai Dingqun Enterprise Management Consulting Co., Ltd. And Beijing Jinxiang Guoxing Medical Co., Ltd.

Acquiree	The date of acquiring the right	Acquistion cost of the right	Proportion of rights owned by the Group	Methods of acquisition the right	Acquisition date	The basis for determining the date of purchase	Income earned from the acquisition date to 30 June 2020	Net profit earned from the acquisition date to 30 June 2020
Shanghai Dingqun Enterprise Management Consulting Co., Ltd. (a)	7 January 2020	934,240,000.00	100.00%	Acquisition	7 January 2020	The purchaser actually acquires control over the acquired company	1,000,951,799.38	27,351,707.81
Beijing Jinxiang Guoxing Medical Co., Ltd. (b)	2 April 2020	10,000.00	100.00%	Acquisition	2 April 2020	The purchaser actually acquires control over the acquired company	-	-

Additional clarification：

(a) Guoda Pharmacy, a subsidiary of the Company, acquired 100% shares of Shanghai Dingqun Enterprise Management Consulting Co., Ltd. as known as 85% shares of Jilin Tianhe PharmaceuticalTechnology Co., Ltd. from Ningbo Meishan bonded port area Qiling equity investment center LP, and the Group by RMB934,240,000.00. The acquisition was completed on 7 Jaunary 2020, the Companycontrolled Shanghai dingqun and formed a business combination not involving enterprises under common control, which Shanghai dingqun was included in the scope of the Company's consolidation.(b) Beijing Golden Elephant Pharmacy Medicine Chain Co., Ltd., a subsidiary of the Company, acquired 100% shares of Beijing Jinxiang Guoxing Medical Co., Ltd. from Beijing Jinxiang Fosun Medical Co.,Ltd. by RMB10,000.00. The acquisition was completed on 2 April 2020, the Company controlled Beijing Jinxiang Guoxing Medical Co., Ltd. and formed a business combination not involving enterprisesunder common control, which Beijing Jinxiang Guoxing Medical Co., Ltd. was included in the scope of the Company's consolidation.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

1. Business combinations not involving enterprises under common control (Continued)

1.2 Acquisition costs and goodwill arising from acquisition

Acquisition costs	Shanghai Dingqun Enterprise Management Consulting Co., Ltd.	Beijing Jinxiang Guoxing Medical Co., Ltd.
Cash	934,240,000.00	10,000.00
Acquisition costs	934,240,000.00	10,000.00
Less: the fair values of acquired identifiable net assets	413,403,753.83	10,000.00
Goodwill arising from acquisition/Acquisition costs exceeding the fair values of acquired identifiable net assets	520,836,246.17	-

The fair value of the cost of acquisition is recognized according to the price actually paid.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

1. Business combinations not involving enterprises under common control (Continued)

1.3 The fair values of acquired identifiable assets and liabilities on the acquisition date

	Shanghai Dingqun Enterprise Management Consulting Co., Ltd.		Beijing Jinxiang Guoxing Medical Co., Ltd.
	Fair value	Carrying amount	Fair value	Carrying amount
Cash and bank balances	56,055,948.87	56,055,948.87	10,000.00	10,000.00
Accounts receivable	753,590,278.82	753,590,278.82	-	-
Inventories	346,785,462.21	346,785,462.21	-	-
Fixed assets	6,092,375.11	6,092,375.11	-	-
Intangible assets	237,873,287.90	1,873,287.90	-	-
Receivable financing	19,457,255.29	19,457,255.29	-	-
Advances to suppliers	42,432,641.61	42,432,641.61	-	-
Other receivables	37,527,663.99	37,527,663.99	-	-
Other current assets	6,040,985.16	6,040,985.16	-	-
Right-of-use assets	101,117,742.73	101,117,742.73	-	-
Long-term prepaid expenses	2,797,065.29	2,797,065.29	-	-
Deferred tax assets	20,212,628.97	20,212,628.97	-	-
Other non-current assets	98,900,000.00	98,900,000.00	-	-
Short-term borrowings	250,000,000.00	250,000,000.00	-	-
Notes payable	164,882,176.00	164,882,176.00
Accounts payable	224,639,145.65	224,639,145.65	-	-
Deferred tax liabilities	61,897,784.60	2,897,784.60	-	-
Contract liabilities	1,344,985.26	1,344,985.26	-	-
Employee benefits payable	7,519,225.65	7,519,225.65	-	-
Tax payable	32,667,189.01	32,667,189.01	-	-
Other payables	416,021,537.02	416,021,537.02	-	-
Non-current liabilities due within one year	24,715,341.58	24,715,341.58	-	-
Lease liabilities	55,614,900.64	55,614,900.64	-	-
Net assets	489,581,050.54	312,581,050.54	-	-
Less: equity of minority	76,177,296.71	49,627,296.71	-	-

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

shareholders
Net assets acquired	413,403,753.83	262,953,753.83	10,000.00	10,000.00

Methods for determining the fair value of identifiable assets and liabilities:

It is recognized according to the appraisal.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

1. Business combination not involving enterprises under common control (Continued)

1.4 The gain or loss arising from the acquisition of the remeasurement at the fair value of the

acquirer’s previously held equity

Acquired company	Carrying amount of the acquirer’s previously held equity on the acquisition day	Fair value of the acquirer’s previously held equity on the acquisition day	Gain or loss arising from the acquisition of the remeasurement at the fair value of the acquirer’s previously held equity on the acquisition date	Main assumptions of the remeasurement of the fair value of the acquirer’s previously held equity	Amount transfer from other comprehensive income to investment income of the Acquirer’s previously held equity
Shanghai Dingqun Enterprise Management Consulting Co., Ltd.	22,637,781.16	23,636,447.00	998,665.84	remeasure according to the evaluation	-

Other：

On May 2018, the Group jointly established Shanghai Dingqun with Ningbo Meishan bonded port area Qiling equity investmentcenter LP, subscribing 2.53% and 97.47% of shareholdings, respectively. According to the Articles of Association, the board ofdirectors of Shanghai Dingqun consisted of three directors and one of them was appointed by our Company. Each director shallrepresent one vote on the board’s decisions, which shall be adopted if they are voted for by a simple majority of all the members ofthe board. Therefore, the Group has significant influence over Shanghai Dingqun, and thus, it is considered as an associate of theGroup. In the current year, Guoda Pharmacy, a subsidiary of the Group, acquired 100% shares of Shanghai Dingqun EnterpriseManagement Consulting Co.,Ltd. and 85% shares of Jilin Tianhe Pharmaceutical Technology Co., Ltd. from Ningbo Meishanbonded port area Qiling equity investment center LP, and the Group by RMB934,240,000.00. The acquisition was completed on 7Jaunary 2020. After that, Shanghai Dingqun Enterprise Management Consulting Co., Ltd. is involved in the Group.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

2. Business combinations involving enterprises under common control

2.1 Acquisition occurred in the current year

Acquiree	Proportion of rights owned by the Group	The basis for identifying Business combinations involving enterprises under common control	Acqusition date	The basis for determining the date of purchase	Revenue of the acquiree from the beginning of the year to the acquisition date	Net profit of the acquiree from the beginning of the year to the acquisition date	Revenue of the acquiree during the comparison period	Net profit of the acquiree during the comparison period
Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.	75.00%	Acquiree is under common control before and after the acquisition and the control is not temporary	1 January 2020	The purchaser actually acquires control over the acquired company	-	-	382,731,690.83	(1,027,975.26)

Others:

Guoda Pharmacy, a subsidiary of the Company, acquired 75% shares of Pudong New Area of Shanghai Pharmaceutical MedicineLtd from Sinopharm Group by RMB163,115,000.00. The acquisition was completed on 2 Jaunary 2020. After the businesscombination involving entities under common control. After that Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. isinvolved in the Group.

2.2 Acquisition costs

Acquisition cost	Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.
Cash	163,115,049.98

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

2. Business combinations involving enterprises under common control (Continued)

2.3 The carrying amount of the Acquiree’s assets and liabilities at the acquisition date

	Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.
	Acquisition date	31 December 2019
Cash and bank balances	3,394,404.68	3,394,404.68
Accounts receivable	100,459,214.59	100,459,214.59
Inventories	115,849,551.73	115,849,551.73
Fixed assets	95,400,228.52	95,400,228.52
Intangible assets	54,842,072.44	54,842,072.44
Advances to suppliers	4,946,238.30	4,946,238.30
Other receivables	23,970,596.45	23,970,596.45
Other current assets	8,933.82	8,933.82
Right-of-use assets	39,296,729.06	39,296,729.06
Long-term prepaid expenses	7,065,829.13	7,065,829.13
Deferred tax assets	2,479,813.13	2,479,813.13
Goodwill	65,978,042.61	65,978,042.61
Accounts payable	155,320,266.34	155,320,266.34
Contract liabilities	544,372.73	544,372.73
Employee benefits payable	3,813,091.44	3,813,091.44
Tax payable	3,261,136.20	3,261,136.20
Other payables	65,506,176.60	65,506,176.60
Non-current liabilities due within one year	10,490,753.75	10,490,753.75
Lease liabilities	26,045,944.43	26,045,944.43
Deferred tax liabilities	34,567,476.49	34,567,476.49
Net assets	144,761,654.23	144,761,654.23
Minus：equity of minority	39,593,153.20	39,593,153.20
Net assets acquired	174,549,283.28	174,549,283.28

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

3. Reverse purchase

Basic information of the transaction, the basis on which the transaction constitutes the reverse purchase, whether the assets andliabilities retained by the listed company constitute the business and the basis, the determination of the merger cost, and theamount of the adjusted equity in accordance with the equity transaction and its calculation:

4. Other reasons for Changes in scope of consolidation

Other reasons for Changes in scope of consolidation (set up new company, liquidation, etc.)

	30 June 2020	1 January 2020 During the period
	Net assets	Net profit
Guoda Pharmacy (Rizhao) Co., Ltd. (a)	-	-
Liaoning Guoda Health Pharmacy Co., Ltd. (b)	10,001.36	1.36

(a) At 3 June 2020,the Group invested RMB1,500.00 thousand to set up Guoda Pharmacy (Rizhao) Co., Ltd, As at 30

June 2020, payment has not been completed.(b) At 13 March 2020,the Group invested RMB5,000.00 thousand to set up Liaoning Guoda Health Pharmacy Co., Ltd.,

As at 30 June 2020, RMB10,000.00 was paid.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VIII. Changes in scope of consolidation (Continued)

5. Others

Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co., Ltd., a subsidiary of the Group, obtained 43 directly-operatedstores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co., Ltd. with cash of RMB45,000,000.00. The acquisition wascompleted on January 2020. The fair values and carrying amounts of identifiable assets and liabilities of the management right of43 stores and 11 clinics on the acquisition date are presented as follows:

Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.		30 March 2020	30 March 2020
		Fair value	Carrying amount
Fixed assets		962,568.34	962,568.34
Inventories		10,000,000.00	10,000,000.00
Total		10,962,568.34	10,962,568.34
Price paid		45,000,000.00	45,000,000.00
Goodwill arising from acquisition		34,037,431.66	34,037,431.66

Operating results and cash flows of 43 directly-operated stores and 11 clinics of Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.for the period from the acquisition date to the end of the June are presented as follows:

	30 March 2020 to 30 June 2020
Operating revenue		21,862,569.11
Net profit		(25,323.42)
cash flows from operating activities		3,363,331.77

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

IX. Interests in other entities

1．	Interests in subsidiaries
(1)	The composition of the Group:

	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Sinopharm Guilin	Guilin	Guilin	Commercial	-	100.00%	Establishment
	Sinopharm Baise	Baise	Baise	Commercial	-	100.00%	Establishment
	Sinopharm Holding Zhongshan Co., Ltd.(hereafter refered as"Sinopharm Zhongshan")	Zhongshan	Zhongshan	Commercial	-	100.00%	Establishment
	Sinopharm Guigang	Guigang	Guigang	Commercial	-	100.00%	Establishment
	Sinopharm Beihai	Beihai	Beihai	Commercial	-	100.00%	Establishment
	Sinopharm Holding Guangzhou Medical Treatment	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
	Sinopharm Holding Shenzhen Jianmin Co., Ltd.(hereafter refered as"Sinopharm Jianmin")	Shenzhen	Shenzhen	Commercial	100.00%	-	Business combinations involving entities under common control
	Sinopharm Holding Shenzhen Traditional & Herbal Medicine Co., Ltd. (hereafter referd as “Sinopharm Traditional & Herbal Medicine")	Shenzhen	Shenzhen	Commercial	100.00%	-	Business combinations involving entities under common control
	Sinopharm Holding Shenzhen Logistics Co., Ltd. (hereafter refered as“Shenzhen Logistics")	Shenzhen	Shenzhen	Services	100.00%	-	Business combinations involving entities under common control
	Sinopharm Holding Guangzhou Co., Ltd. (hereafter refered as“Sinopharm Guangzhou")	Guangzhou	Guangzhou	Commercial	100.00%	-	Business combinations involving entities under common control
	Sinopharm Holding Guangdong Hengxing Co., Ltd. (hereafter refered as“Sinopharm Hengxing")	Guangzhou	Guangzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Yulin	Yulin	Yulin	Commercial	-	100.00%	Business combinations involving entities under common control

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Sinopharm Liuzhou	Liuzhou	Liuzhou	Commercial	-	51.00%	Business combinations involving entities under common control
	Guangdong Huixin Investment Co., Ltd. (“Huixin Investment”)	Guangzhou	Guangzhou	Service		100.00%	Business combinations involving entities under common control
	Sinopharm Holding Foshan Co., Ltd. (“Sinopharm Foshan")	Foshan	Foshan	Commercial		100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guangdong Yuexing Co., Ltd. (“Sinopharm Yuexing”)	Guangzhou	Guangzhou	Commercial		100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guangdong Logistics Co., Ltd. (“Guangdong Logistic”)	Guangzhou	Guangzhou	Service		100.00%	Business combinations involving entities under common control
	Sinopharm Guangxi	Nanning	Nanning	Commercial	100.00%		Business combinations involving entities under common control
	Guangxi Logistic	Nanning	Nanning	Service		100.00%	Business combinations involving entities under common control
	Sinopharm Wuzhou	Wuzhou	Wuzhou	Commercial		99.90%	Business combinations involving entities under common control
	Sinopharm Dongguan	Dongguan	Dongguan	Commercial		100.00%	Business combinations involving entities not under common control
	Sinopharm Zhanjiang	Zhanjiang	Zhanjiang	Commercial		100.00%	Business combinations involving entities not under common control
	Sinopharm Yanfeng	Shenzhen	Shenzhen	Commercial	51.00%		Business combinations involving entities not under common control
	Sinopharm Meizhou	Meizhou	Meizhou	Commercial		100.00%	Business combinations involving entities not under common control
	Sinopharm Huizhou	Huizhou	Huizhou	Commercial		100.00%	Business combinations involving entities not under common control
	Sinopharm Zhaoqing	Zhaoqing	Zhaoqing	Commercial	-	100.00%	Business combinations involving entities not under common control
	Sinopharm Jiangmen	Jiangmen	Jiangmen	Commercial	-	100.00%	Business combinations involving entities not under common control
	Sinopharm Shaoguan	Shaoguan	Shaoguan	Commercial	-	70.00%	Business combinations involving entities not under common control
	Sinopharm Holding Shantou Co., Ltd.(hereafter refered as"Sinopharm Shantou”)	Shantou	Shantou	Commercial	-	100.00%	Business combinations involving entities not under common control
	Foshan Nanhai	Foshan	Foshan	Commercial	-	100.00%	Business combinations involving entities under common control
	Foshan Nanhai Uptodate & Special Medicines Co., Ltd.	Foshan	Foshan	Commercial	-	100.00%	Business combinations involving entities under common control
	Foshan Nanhai Medicine Co., Ltd.	Foshan	Foshan	Commercial	-	100.00%	Business combinations involving entities under common control

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Guangdong Uptodate & Special Medicines	Guangzhou	Guangzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Guangdong South Pharmaceutical Foreign Trade Co., Ltd.	Guangzhou	Guangzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Zhuhai Co., Ltd. ((hereafter referd as “Sinopharm Zhuhai")	Zhuhai	Zhuhai	Commercial	-	100.00%	Business combinations involving entities not under common control
	Sinopharm Maoming (a)	Maoming	Maoming	Commercial	-	100.00%	Business combinations involving entities not under common control
	Sinopharm Holding GZ Medical Technology Co., Ltd.	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
	Sinopharm Holding GZ Medical Supply Chain Service Co., Ltd.	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
	Sinopharm Holding Heyuan Co., Ltd. ((hereafter referd as “Sinopharm Heyuan")	Heyuan	Heyuan	Commercial	-	70.00%	Business combinations involving entities not under common control
	Sinopharm Holding Guoda Pharmacy Co., Ltd.	Shanghai	Shanghai	Commercial	60.00%	-	Business combinations involving entities under common control
	Sinopharm Holding Guoda Pharmacy Chain Store Shanghai Co., Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Business combinations involving entities under common control
	Beijing Guoda Pharmacy Chain Store Co., Ltd.	Beijing	Beijing	Commercial	-	100.00%	Business combinations involving entities under common control
	Tianjin Guoda Pharmacy Chain Store Co., Ltd.	Tianjin	Tianjin	Commercial	-	80.00%	Business combinations involving entities under common control
	Guangxi Guoda Pharmacy Consulting Chain Store Co., Ltd.	Nanning	Nanning	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Pharmacy Guangdong Co., Ltd.	Shenzhen	Shenzhen	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Guoda Pharmacy Guangxi Chain Co., Ltd.	Liuzhou	Liuzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Zhejiang Guoda Pharmacy Co., Ltd.	Hangzhou	Hangzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Yangzhou Dadesheng Pharmacy Chain Store Co., Ltd.	Yangzhou	Yangzhou	Commercial	-	93.68%	Business combinations involving entities under common control
	Ningxia Guoda Pharmacy Chain Store Co., Ltd.	Yinchuan	Yinchuan	Commercial	-	70.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Nanjing Pharmacy Chain Store Co., Ltd.	Nanjing	Nanjing	Commercial	-	60.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Shandong Pharmacy Chain Store Co., Ltd.	Linyi	Linyi	Commercial	-	55.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co., Ltd.(b)	Shenyang	Shenyang	Commercial	-	51.00%	Business combinations involving entities under common control

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Fujian Guoda Pharmacy Chain Store Co., Ltd.(c)	Xiamen	Xiamen	Commercial	-	100.00%	Business combinations involving entities under common control
	Anhui Guoda Pharmacy Chain Store Co., Ltd.	Hefei	Hefei	Commercial	-	60.00%	Business combinations involving entities under common control
	Quanzhou Guoda Pharmacy Chain Store Co., Ltd.	Quanzhou	Quanzhou	Commercial	-	51.00%	Business combinations involving entities under common control
	Shanxi Guoda Wanmin Pharmacy Chain Store Co., Ltd.	Taiyuan	Taiyuan	Commercial	-	85.00%	Business combinations involving entities under common control
	Sinopharm Holding Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd.	Hengyang	Hengyang	Commercial	-	51.00%	Business combinations involving entities under common control
	Liyang Guoda People Pharmacy Chain Store Co., Ltd.	Liyang	Liyang	Commercial	-	80.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Henan Pharmacy Chain Store Co., Ltd.	Pingdingshan	Pingdingshan	Commercial	-	60.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Inner Mengdia Pharmacy Chain Store Co., Ltd.	Hohhot	Hohhot	Commercial	-	96.70%	Business combinations involving entities under common control
	Sinopharm Hebei Lerentang Pharmacy Chain Store Co., Ltd.	Shijiazhuang	Shijiazhuang	Commercial	-	60.00%	Business combinations involving entities under common control
	Sinopharm Guoda Pharmacy Jiangmen Chain Co., Ltd.	Jiangmen	Jiangmen	Commercial	-	65.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Shanxi Yiyuan Pharmacy Chain Store Co., Ltd.	Taiyuan	Taiyuan	Commercial	-	80.00%	Business combinations involving entities under common control
	Sinopharm Holding Xinjiang New & Special Medicines Chain Store Co., Ltd.	Urumqi	Urumqi	Commercial	-	51.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda ForMe Medicines (Shanghai) Co., Ltd.	Shanghai	Shanghai	Commercial	-	97.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda ForMe Pharmacy Chain Store Co., Ltd. (Formerly “Shanghai ForMe YiXing Pharmacy Chain Store Co., Ltd.”)	Shanghai	Shanghai	Commercial	-	99.76%	Business combinations involving entities under common control
	Beijing Golden Elephant Pharmacy Medicine Chain Company Limited	Beijing	Beijing	Commercial	-	53.13%	Business combinations involving entities under common control
	Shanxi Tongfeng Pharmacy Logistics Co., Ltd.	Taiyuan	Taiyuan	Commercial	-	100.00%	Business combinations involving entities under common control
	Changzhi Guoda Wanmin Pharmacy Chain Store Co., Ltd.	Changzhi	Changzhi	Commercial	-	51.00%	Business combinations involving entities under common control
	Shanxi Guoda Wanmin Clinic Management Chain Co., Ltd.	Taiyuan	Taiyuan	Medical services	-	100.00%	Business combinations involving entities under common control
	Shanghai Guoda Shanghong Qibao Pharmacy Co., Ltd.	Shanghai	Shanghai	Commercial	-	51.00%	Business combinations involving entities under common control
	Zhejiang Intlmedicine Pharmacy Dongshan Co., Ltd.	Hangzhou	Hangzhou	Commercial	-	51.00%	Business combinations involving entities under common control

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Shanghai Guoda Dongsheng Pharmacy Co., Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Guoda Drug Store (Shenzhen) Chain Co., Ltd.	Shenzhen	Shenzhen	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Pharmacy Guangzhou Chain Co., Ltd.	Guangzhou	Guangzhou	Commercial	-	100.00%	Business combinations involving entities under common control
	Shanghai Guodong Chinese Traditional Medicine Clinic Co., Ltd.	Shanghai	Shanghai	Medical clinic	-	100.00%	Business combinations involving entities under common control
	Shanghai Guoda Dongxin Pharmacy Chain Store Co., Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Business combinations involving entities under common control
	Shanghai Yutaitang Chinese Traditional Medicine Clinic Co., Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Business combinations involving entities under common control
	Sanhe Liyang Golden Elephant Pharmacy Co., Ltd.	Langfang	Langfang	Commercial	-	100.00%	Business combinations involving entities under common control
	Xiaoyi Guoda Wanmin Baicaotang Pharmacy Chain Store Co., Ltd.	Xiaoyi	Xiaoyi	Commercial	-	70.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Pharmacy Hulun Buir Co., Ltd.	Hulun Buir	Hulun Buir	Commercial	-	51.00%	Business combinations involving entities under common control
	ForMe Xuhui	Shanghai	Shanghai	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Ulanqab Co., Ltd.	Ulanqab	Ulanqab	Commercial	-	60.00%	Establishment
	Taishan Sinopharm Holding Guoda Qunkang Pharmacy Chain Store Co., Ltd.	Taishan	Taishan	Commercial	-	70.00%	Business combinations involving entities under common control
	Sinopharm Lerentang Shijiazhuang Pharmaceutical	Shijiazhuang	Shijiazhuang	Commercial	-	100.00%	Business combinations involving entities under common control
	Sinopharm Holding Guoda Drug Store Manchuria Co., Ltd.	Manchuria	Manchuria	Commercial	-	51.00%	Establishment
	Sinopharm Guoda Drug Store Anshan Chain Co., Ltd.	Anshan	Anshan	Commercial	-	51.00%	Establishment
	Sinopharm Holding Guoda Yongsheng Drug Store （Shanghai） Co., Ltd.	Shanghai	Shanghai	Commercial	-	55.00%	Establishment
	Sinopharm Holding Foshan Medical Consumables Supply Chain Co., Ltd.	Foshan	Foshan	Commercial	-	70.00%	Establishment
	Sinopharm Holding Medical Supply Chain Service (Guangxi) Co., Ltd.	Nanning	Nanning	Commercial	-	30.06%	Establishment
	Shanghai Guoda Haohai Pharmacy Co., Ltd.	Shanghai	Shanghai	Commercial	-	51.00%	Establishment
	Sinopharm Holding Baiyi Pharmacy Guangxi Co., Ltd.	Nanning	Nanning	Commercial	-	51.00%	Establishment
	Sinopharm Holding Hezhou Co., Ltd.	Hezhou	Hezhou	Commercial	-	100.00%	Establishment
	Sinopharm Holding National Pharmacy Zhengzhou Chain Co., Ltd.	Zhengzhou	Zhengzhou	Commercial	-	60.00%	Establishment
	Shanghai Guoda Ruijing Pharmacy Co., Ltd.	Shanghai	Shanghai	Commercial	-	55.00%	Establishment

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Fujian Guoda Pharmaceutical Co., Ltd.	Xiamen	Xiamen	Commercial	-	100.00%	Establishment
	Sinopharm Holding Qinzhou Co., Ltd.	Qinzhou	Qinzhou	Commercial	-	100.00%	Establishment
	Sinopharm Holding Hechi Co., Ltd.	Hechi	Hechi	Commercial	-	100.00%	Establishment
	Sinopharm Holding Guangzhou Huadu Co., Ltd.	Guangzhou	Guangzhou	Commercial	-	70.00%	Business combinations involving entities not under common control
	Sinopharm Holding Guoda Shanxi Pharmaceutical Co., Ltd.(d)	Taiyuan	Taiyuan	Commercial	-	100.00%	Business combinations involving entities not under common control
	Taiyuan Tongxinli Guoda Pharmacy Co., Ltd.	Taiyuan	Taiyuan	Commercial	-	100.00%	Business combinations involving entities not under common control
	Sinopharm Holding Guoda Bayannaoer Co., Ltd.(e)	a Bayannaoer	a Bayannaoer	Commercial	-	80.00%	Establishment
	Inner Mongolia Guoda Pharmaceutical Co., Ltd.(f)	Hohhot	Hohhot	Commercial	-	100.00%	Establishment
	Sinopharm Holding Guoda Yongxingtang Chain (Chaoyang) Co., Ltd.(g)	Chaoyang	Chaoyang	Commercial	-	51.00%	Establishment
	Sinopharm Accord Medicial Supply Chain (Shenzhen) Co., Ltd.	Shenzhen	Shenzhen	Commercial	60.00%		Establishment
	Sinopharm Holding Guozhi Pharmacy (Heyuan) Co., Ltd.	Heyuan	Heyuan	Commercial		70.00%	Establishment
	Liaoning Guoda Pharmaceutical Co., Ltd.	Shenyang	Shenyang	Commercial		100.00%	Establishment
	Sinopharm Holding Guangyi Health Management (Zhanjiang) Co., Ltd.	Zhanjiang	Zhanjiang	Commercial		60.00%	Establishment
	Guangzhou Medicine	Guangzhou	Guangzhou	Commercial		70.00%	Business combinations involving entities not under common control
	Chaoyang Renai	Chaoyang	Chaoyang	Commercial		51.00%	Business combinations involving entities not under common control
	Guoda Pu’er	Puer	Puer	Commercial		60.00%	Business combinations involving entities not under common control
	Shanghai Dingqun(b)	Shanghai	Shanghai	Medical services		100.00%	Business combinations involving entities not under common control
	Sinopharm Holding Tianhe Jilin Pharmaceutical Co., Ltd.	Changchun	Changchun	Commercial		85.00%	Business combinations involving entities not under common control
	Jilin Yihe Drug Store Co., Ltd.	Changchun	Changchun	Commercial		100.00%	Business combinations involving entities not under common control
	Jilin Donglong Medical Logistis distribution Co., Ltd.	Changchun	Changchun	Commercial		100.00%	Business combinations involving entities not under common control
	Yushu Dinghe Medical Technology Co., Ltd.	Changchun	Changchun	Commercial		51.00%	Business combinations involving entities not under common control
	Jilin Pharmaceutical Co., Ltd.	Changchun	Changchun	Commercial		100.00%	Business combinations involving entities not under common control
	Yanji Xianghe Medical Co., Ltd.	Yanji	Yanji	Commercial		51.00%	Business combinations involving entities not under common control

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

IX.	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):
	Subsidiaries	Principal place of business	Place of incorporation	Nature of business	Shareholding		Ways of acquisition
					Direct	Indirect
	Jilin YiheDrug Store Co., Ltd.	Jilin	Jilin	Commercial		100.00%	Business combinations involving entities not under common control
	Shanghai Pudong New Area Medicine & Medication Co., Ltd. (c)	Shanghai	Shanghai	Commercial		75.00%	Business combinations involving entities under common control
	Shanghai Yanghetang Pharmaceutical Chain Management Co., Ltd.	Shanghai	Shanghai	Commercial		100.00%	Business combinations involving entities under common control
	Shanghai Pudong Yanghetang TCM Clinic Co., Ltd.	Shanghai	Shanghai	Commercial		100.00%	Business combinations involving entities under common control
	Shanghai Yanghetang Keyuan TCM Clinic Co., Ltd.	Shanghai	Shanghai	Medical clinic		100.00%	Business combinations involving entities under common control
	Shanghai Yanghetang Jinyang TCM Clinic Co., Ltd.	Shanghai	Shanghai	Medical clinic		100.00%	Business combinations involving entities under common control
	Guoda Pharmacy (Rizhao) Co., Ltd. (d)	Rizhao	Rizhao	Commercial		100.00%	Establishment
	Liaoning Guoda Health Pharmacy Co., Ltd. (e)	Shenyang	Shenyang	Commercial		100.00%	Establishment
	Beijing Jinxiang Guoxing pharmaceutical chain Co., Ltd. (f)	Beijing	Beijing	Commercial		100.00%	Business combinations involving entities not under common control

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII	Interests in other entities (Continued)
1.	Interests in subsidiaries (Continued)
(1)	The composition of the Group (Continued):

a. On 22 June 2020, the registered capital of Sinopharm Maoming was changed from RMB2,000.00 thousand to RMB60,000.00

thousand. After the change, the Group subscribed RMB60,000.00 thousand of registered capital. As at 30 June 2020,payment has been completed.b. On 7 Jaunary 2020, Guoda Pharmacy, a subsidiary of the Group,acquired 97.47% shares of Shanghai Dingqun Enterprise

Management Consulting Co., Ltd. and 2.53% shares from the Group for RMB 934,240.00 thousand to constitute a businesscombination involving enterprises not under common control. Since then, the Group included Shanghai Dingqun in the scopeof consolidation.As on 30 June, RMB208,100.00 thousand was paid.c. On 2 Jaunary 2020, the Group acquired 75% shares of Pudong New Area of Shanghai Pharmaceutical Medicine Ltd.fromSinopharm Group for RMB163,115.00 thousand to constitute a business combination involving enterprises under commoncontrol.The acquisition was completed on 2 January 2020. Since then, the Group included Pudong New Area of ShanghaiPharmaceutical Medicine Ltd.d. On 3 June 2020, the Group invested RMB1,500.00 thousand to set up Guoda Pharmacy (Rizhao) Co., Ltd. As at 30 June2020, payment has not been completed.

e. On 13 March 2020, the Group invested RMB5,000.00 thousand to set up Liaoning Guoda Health Pharmacy Co., Ltd. As at 30June 2020, RMB10,000.00 was paid.f. On 2 April 2020, Beijing Jinxiang Medical Co., Ltd., a subsidiary of the Group, acquired 100% shares of Beijing Jinxiang

Guoxing Medical Co., Ltd. from Beijing Jinxiang Fosun Medical Co., Ltd.for RMB10,000.00 to constitute a businesscombination not involving enterprises under common control. The acquisition was completed on 2 April 2020.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(2) Important non-wholly owned subsidiary

Subsidiaries	Minority shareholding ratio	Profit or loss attributable to minority shareholders in the current period	Dispatch of dividends to minority shareholders in the current period	Minority shareholders' equity
Sinopharm Holding Guoda Pharmacy Co., Ltd.	40.00%	71,974,056.77	12,158,365.28	1,889,364,292.70

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Interests in other entities (Continued)

1. Interests in subsidiaries (Continued)

(3) Key financial information of important non-wholly owned subsidiaries

Subsidiaries	30 June 2020						31 December 2019
	Current assets	Non-current assets	Total assets	Current liabilities	Non-current liabilities	Total liabilities	Current assets	Non-current assets	Total assets	Current liabilities	Non-current liabilities	Total liabilities
Sinopharm Holding Guoda Pharmacy Co., Ltd.	8,725,704,967.04	4,769,874,765.61	13,495,579,732.65	6,934,144,873.02	1,205,341,207.51	8,139,486,080.53	7,896,719,966.23	3,785,271,722.24	11,681,991,688.47	5,341,165,404.42	1,133,674,087.29	6,474,839,491.71

Subsidiaries	For the six months ended 30 June 2020				For the six months ended 30 June 2019
	Operating revenue	Net profit	Total comprehensive income	Cash flow from operating activities	Operating revenue	Net profit	Total comprehensive income	Cash flow from operating activities
Sinopharm Holding Guoda Pharmacy Co., Ltd.	8,613,020,309.15	248,037,573.90	248,037,573.90	470,794,143.55	6,478,950,669.19	185,161,890.49	185,161,890.49	520,852,280.31

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

VII. Interests in other entities (Continued)

2. Interests in associates

Principal place of business

Place of incorporation

Nature of business

Shareholding(%)

Accounting

Direct

Indirect

Associates

Shenzhen Main Luck Pharmaceutical Co., Ltd. (hereafter referd as"Main Luck Pharmaceutical ")

Shenzhen

Shenzhen

Manufacturing

35.19%

-

Equity

Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd.

Suzhou

Suzhou

Manufacturing

33.00%

-

Equity

Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co., Ltd.

Shenzhen

Shenzhen

Manufacturing

49.00%

-

Equity

Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.

Shenzhen

Shenzhen

Commercial

49.00%

-

Equity

Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd.

Shenzhen

Shenzhen

Manufacturing

49.00%

-

Equity

Shyndec Pharma

Shanghai

Shanghai

Business service industry

16.28%

-

Equity

Shanghai Beiyi Guoda pharmaceutical Co. Ltd.

Shanghai

Shanghai

Commercial

-

26.00%

Equity

Shanghai Liyi Pharmacy Co., Ltd

Shanghai

Shanghai

Commercial

-

35.00%

Equity

Sinopharm Jienuo Medical Treatment Service Guangdong Co., Ltd.

Guangzhou

Guangzhou

Commercial

-

29.00%

Equity

Dongyuan accord pharmaceutical chain Co., Ltd.

Heyuan

Heyuan

Commercial

-

45.00%

Equity

Shanghai Renbei Pharmacy Co., Ltd.

Shanghai

Shanghai

Commercial

-

30.00%

Equity

Guangdong Jianhui Construction Investment Management Co., Ltd.(hereafter refered as “Guangdong Jianhui”)

Zhanjiang

Zhanjiang

Public-Private-Partnership

-

10.00%

Equity

Explication of the shareholding ratio of a joint venture differs from the proportion of voting rights:

The basis that holds less than 20% of the voting rights but has a significant impact, or holds 20% or more of the voting rightsbut has no significant impact:

The highest authority of Guangdong Jianhui is the shareholders' meeting, and shareholders shall exercise their voting rightsin accordance with the proportion of subscribed capital contributions. At the same time, The board of directors of GuangdongJianhui was established, which is responsible to the shareholders' meeting, consisting of five members, among whom ourcompany appointed one director. The votes of the board of directors shall be one vote per person.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

VII. Interests in other entities (Continued)

2. Interests in associates (Continued)

	30 June 2019/ For the six months ended 30 June 2020		1 January 2019/ For the six months ended 30 June 2019
	Shyndec Pharma	Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	Shyndec Pharma	Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.
Current assets	9,757,495,160.60	1,203,833,538.10	9,676,372,530.32	1,295,003,085.13
Non-current assets	8,073,121,734.07	257,066,698.41	7,962,091,231.68	273,684,959.60
Total assets	17,830,616,894.67	1,460,900,236.51	17,638,463,762.00	1,568,688,044.73
Current liabilities	6,026,005,819.45	600,005,337.92	6,491,804,082.54	734,280,688.66
Non-current liabilities	2,327,842,012.07	7,875,368.42	1,943,465,618.97	16,900,060.78
Total liabilities	8,353,847,831.52	607,880,706.34	8,435,269,701.51	751,180,749.44
Non-controlling interests	1,664,566,751.25	-	1,615,724,166.23	-
Shareholders’ equity attributable to shareholders of the parent	7,812,202,311.90	853,019,530.17	7,587,469,894.26	817,507,295.29
Portion of net assets calculated by shareholding ratio	1,271,831,043.72	417,979,569.77	1,235,240,098.79	400,578,574.68
Carrying value of equity investment in joint ventures	1,271,831,043.72	417,979,569.77	1,235,240,098.79	400,578,574.68
Operating revenue	6,211,855,587.54	659,730,341.51	6,255,380,073.90	1,060,889,164.97
Net profit	427,914,866.04	35,512,234.88	525,814,658.05	119,461,432.13
Other comprehensive income	750,533.71	-	-	-
Total comprehensive income	428,665,399.75	35,512,234.88	525,814,658.05	119,461,432.13
Dividends received from joint ventures this period	16,714,220.20	-	16,896,427.80	-

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

X. Risks related to financial instruments

1. Classification of financial instruments

The carrying amounts of each category of financial instruments as at the date of financialposition are as follows:

30 June 2020:

Financial assets	Financial assets at fair value through profit or loss	Financial assets at amortised cost	Financial assets at fair value through other comprehensive income		Total
	Mandatorily required		Mandatorily required	Designated
Cash and bank balances	-	8,239,840,227.80	-	-	8,239,840,227.80
Notes receivable	-	402,639,901.74	-	-	402,639,901.74
Accounts receivable		13,892,695,134.41			13,892,695,134.41
Receivable financing	-		399,889,650.01	-	399,889,650.01
Other receivables	-	613,031,947.42	-	-	613,031,947.42
Other non-current financial assets	120,972,350.24	-	-	-	120,972,350.24
Other equity instrument investment	-	-	-	116,021,000.00	116,021,000.00
	120,972,350.24	23,148,207,211.37	399,889,650.01	116,021,000.00	23,785,090,211.62

Financial liabilities		Financial liabilities at amortised cost
Short-term borrowings		3,710,647,467.19
Notes payable		4,691,825,761.98
Accounts payable		8,077,705,277.54
Other payables		1,794,827,639.44
Non-current liabilities due within 1 year		616,449,909.74
Lease liabilities		1,216,076,164.93
		20,107,532,220.82

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

1. Classification of financial instruments (Continued)

31 December 2019:

Financial assets	Financial assets at fair value through profit or loss	Financial assets at amortised cost	Financial assets at fair value through other comprehensive income		Total
	Mandatorily required		Mandatorily required	Designated
Cash and bank balances	-	8,885,729,250.47	-	-	8,885,729,250.47
Notes receivable	-	793,301,688.64	-	-	793,301,688.64
Accounts receivable	-	10,712,983,544.18	-	-	10,712,983,544.18
Receivable financing	-	-	446,342,588.46		446,342,588.46
Other receivables	-	501,958,841.43	-	-	501,958,841.43
Other non-current financial assets	140,000,000.00	-	-	-	140,000,000.00
Other equity instrument investment	-	-	-	116,021,000.00	116,021,000.00
	140,000,000.00	20,893,973,324.72	446,342,588.46	116,021,000.00	21,596,336,913.18

Financial liabilities		Financial liabilities at amortised cost
Short-term borrowings		1,453,018,300.01
Notes payable		5,555,697,557.53
Accounts payable		6,703,967,826.54
Other payables		1,822,364,637.62
Non-current liabilities due within 1 year		611,917,847.37
Lease liabilities		1,208,453,029.51
		17,355,419,198.58

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

2. Transfer of financial assets

Transferred financial assets that are not derecognised in their entirety

As at 30 June 2020, the Group had endorsed commercial bills receivable (the "Endorsed Bills")to certain of its suppliers in order to settle accounts payable due to such suppliers of RMB 0.00(31 December 2019: RMB0.00). As at 30 June 2020, the carrying value thereof was RMB0.00(31 December 2019: RMB64,038,348.12). In the opinion of the directors, the Group has retainedthe substantial risks and rewards, which include default risks relating to such Endorsed Bills, andaccordingly, it continued to recognize the full carrying amounts of the Endorsed Bills and theassociated accounts payable settled. Subsequent to the Endorsement, the Group did not retainany rights of the use of the Endorsed Bills, including the sales, transfer or pledge of theEndorsed Bills to any other third parties.

As at 30 June 2020, the total carrying value of accounts payable settled by the Group wasRMB0.00 (31 December 2019: RMB64,038,348.12).

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

2. Transfer of financial assets (Continued)

Transferred financial assets that are derecognised in their entirety in which continuinginvolvement exists

As at 30 June 2020, the Group had endorsed commercial bills receivable (the "Endorsed Bills")to certain of its suppliers in order to settle accounts payable due to such suppliers ofRMB505,193,307.96 (31 December 2019: RMB867,007,837.74). During the year, the Groupoperated a number of discounting business through several banks in China. At 30 June 2020,the carrying value thereof was RMB1,800,135,252.62 (31 December 2019:

RMB1,413,116,120.20). The derecognised bills had a maturity of 1 to 12 months at the end ofthe reporting period. In accordance with the Law of Negotiable Instruments, the holders of thederecognised bills have a right of recourse against the Group if the accepting banks default (the“Continuing Involvement”). In the opinion of the directors, the Group has transferredsubstantially all risks and rewards relating to the derecognised bills. Accordingly, it hasderecognised the full carrying amounts of the derecognised bills and the associated accountspayable. The maximum exposure to loss from the Group's Continuing Involvement in thederecognised bills and the undiscounted cash flows to repurchase these derecognised bills isequal to their carrying amounts. In the opinion of the directors, the fair values of the Group’sContinuing Involvement in the derecognised bills are not significant.

During 2020, the Group has not recognised any gain or loss on the date of transfer. No gain orloss was recognised from derecognised financial assets in which the Continuing Involvementexists, both during the year or cumulatively.

During 2020, the Group has not recognised any gain or loss on the date of transfer of thederecognised bills. No gains or losses were recognised from the Continuing Involvement, bothduring the year or cumulatively.

As part of its normal business, the Group entered into an accounts receivable factoring withoutrecourse with banks and transferred certain accounts receivable to banks. In the opinion of thedirectors, the Group has transferred substantially all risks and rewards under the arrangement.Accordingly, it has derecognised the full carrying amounts of the associated accounts receivable.The original carrying value of the derecognised accounts receivable transferred under theArrangement that have not been settled as at 30 June 2020 amounted to RMB1,148,298,422.63(31 December 2019: RMB1,525,687,080.99).

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments

The main risks arising from the Group's financial instruments are credit risk, liquidity risk andmarket risk (including currency risk and interest rate risk). The Group's principal financialinstruments comprise cash and bank balances, equity investments, debt investments, borrowings,notes receivable, accounts receivable, notes payable and accounts payable. Risks that related tothese financial instruments and the Group's risk management strategies for reducing these risksare as follows.

The Company’s board of directors is responsible for planning and establishing the riskmanagement framework of the Group, formulating risk management policies and relatedguidelines of the Group and supervising the implementation of risk management measures. TheGroup has already developed risk management policies to identify and analyse the risks faced bythe Group, which have clearly identified specific risks, covering a lot of aspects such as marketrisk, credit risk and liquidity risk management. The Group regularly assesses the marketenvironment and changes in the Group’s business activities to determine whether or not to updatethe risk management policies and systems. The risk management of the Group shall beconducted by the operation and management department according to the policy approved by theCompany’s management. The operation and management department identifies, evaluates andavoids related risks by means of close cooperation with other business units of the Group.

To avoid the risk concentrating on a single industry, a specific area or a specific counterparty, theGroup spreads financial instruments risk with diversified investments and business portfolio.

Credit risk

The Group only trades with recognised and creditworthy third parties. It is the Group’s policy thatall customers who wish to trade on credit terms are subject to credit verification procedures. Inaddition, receivable balances are monitored on an ongoing basis and the Group’s exposure tobad debts is not significant. For transactions that are not denominated in the functional currencyof the relevant operating unit, the Group does not offer credit terms without the special approval ofthe credit control department of the Group.

Since cash and bank balances, bank acceptance bills receivable and derivative financialinstruments are placed in the well-established banks with high credit ratings, the credit risk ofthese financial instruments is lower.

The other financial instruments of the Group include cash and bank balances and otherreceivables. The credit risk of these financial assets results from default of counterparty. Themaximum credit exposure equals to the book value of these instruments.

The maximum exposure to credit risk of the Group at each balance sheet date is the total amountcharged to the customers less the amount of the impairment provision.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

Since the Group trades only with recognised and creditworthy third parties, there is norequirement for collateral. Credit risks are managed by customer/counterparty, by geographicalregion and by industry sector. There are no significant concentrations of credit risk within theGroup as the customer bases of the Group’s accounts receivable are widely dispersed in differentsectors and industries. The Group does not hold any collateral or other credit enhancements overits accounts receivable balances

Determination of significant increase in credit riskAt each reporting date, the Group determines whether the credit risk of a financial asset hasincreased significantly since initial recognition. When determining whether the credit risk of afinancial asset has increased significantly since initial recognition, the Group considersreasonable and supportable information that is relevant and available without undue cost or effort.This includes both quantitative and qualitative information analysis, based on the Group’shistorical experience and informed credit assessment and including forward-looking information.In order to determine the change of expected default risk during the financial instrument’s entirelifetime, the Group compares the default risk of financial instrument on the balance sheet dateand on the initial recognition date based on single financial instrument or financial instrumentportfolio with similar default risk.

The Group determines that the credit risk of financial assets has significantly increased when oneor more quantitative or qualitative criteria are met:

(1) Quantitative criteria are mainly probability of default increasing more than a given % since

initial recognition;

(2) Qualitative criteria are mainly significant detrimental changes in the borrower’s operating orfinancial conditions and early warning customer lists.

(3) The upper criterion is above 30 days of the borrowers default (including principal andinterests).

Definition of credit-impaired financial assets

In assessing whether a financial asset is credit-impaired, the Group considers both quantitative

and qualitative information in line with internal credit risk management. The Group assesses

whether a financial asset is credit-impaired by considering the following factors:

(1) Significant financial difficulty of the borrower or issuer;

(2) A breach of contract such as a default or past due event;

(3) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’sfinancial difficulty, having granted to the borrower concession(s) that the lender(s) would nototherwise consider;

(4) It is becoming probable that the borrower will enter bankruptcy or other financialreorganisation;

(5) The disappearance of an active market for security because of financial difficulties; and

(6) Financial assets purchased or sourced at large discounts indicating that credit losses haveoccurred.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

The impairment of financial assets may not be necessarily due to a single disparate event. Thecombined effects of multiple events may result in financial assets being credit-impaired.

Parameter of the expected credit loss modelBased on whether there is a significant increase in credit risk and whether the financial assets arecredit-impaired, the Group recognizes impairment allowance for different assets using either12-month expected credit losses or lifetime expected credit losses. The measurement of the ECLmodel is a function of the probability of default, the loss given default (i.e. the magnitude of theloss if there is a default) and the exposure at default. The Group establishes the model byconsidering the quantitative analysis of historical statistics such as the counterparty rating, theguarantee method, the collateral category, the repayment method, and also forward-lookinginformation.Definitions:

(1) The probability of default is the probability that the debtor will not be able to meet itsrepayment obligations within the following 12 months or throughout the remaining duration.To reflect the macro-economic environment conditions, the Group’s assessment of theprobability of default is based on the calculation of the ECL model adjusted byforward-looking information.

(2) The loss given default (i.e. the magnitude of the loss if there is a default) refers to theGroup's expectation of the extent of the loss of default risk exposure. The loss givendefault varies depending on the type of counterparty, the way and priority of recourse, andthe type of collateral. The loss given default is the percentage of the risk exposure loss atthe time of default, calculated on the basis of the next 12 months or the entire duration.

(3) The exposure at default refers to the amount that the Group should repay in the event ofdefault in the next 12 months or throughout the remaining period.

Both the assessment of a significant increase in credit risk and the calculation of the ECL involveforward-looking information. The Group recognizes key economic ratios that influence credit riskand the ECL by historical data analysis.As at 30 June 2020, there was no evidence of a significant increase in credit risk (31 December2019: nil).

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk

The maturity analysis of the Group's financial liabilities as at the end of the reporting period, based on the contractual undiscounted cash flows, is as follows:

		30 June 2020
		Within 1 year		1 to 2 years		2 to 5 years		Above 5 years		Total
Short-term borrowings		3,712,317,703.91		-		-		-		3,712,317,703.91
Notes payable		4,691,825,761.98		-		-		-		4,691,825,761.98
Accounts payable		8,077,705,277.54		-		-		-		8,077,705,277.54
Other payables		1,794,827,639.44		-		-		-		1,794,827,639.44
Non-current liabilities due within 1 year		704,074,304.59		-		-		-		704,074,304.59
Lease liabilities		-		526,811,698.69		669,425,154.23		142,072,104.34		1,338,308,957.26
		18,980,750,687.46		526,811,698.69		669,425,154.23		142,072,104.34		20,319,059,644.72

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk (Continued)

The maturity analysis of the Group's financial liabilities as at the end of the reporting period, based on the contractual undiscounted cash flows, is as follows:

		31 December 2019
		Within 1 year		1 to 2 years		2 to 5 years		Above 5 years		Total
Short-term borrowings		1,473,390,678.14		-		-		-		1,473,390,678.14
Notes payable		5,555,697,557.53		-		-		-		5,555,697,557.53
Accounts payable		6,703,967,826.54		-		-		-		6,703,967,826.54
Other payables		1,822,364,637.62		-		-		-		1,822,364,637.62
Non-current liabilities due within 1 year		692,440,439.57		-		-		-		692,440,439.57
Lease liabilities		-		521,527,272.55		641,028,016.36		135,810,836.52		1,298,366,125.43
		16,247,861,139.40		521,527,272.55		641,028,016.36		135,810,836.52		17,546,227,264.83

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Market risk

Interest rate risk

The Group's interest rate risk arises from long-term borrowings from banks. Financial liabilitiesissued at floating rates expose the Group to cash flow interest rate risk. Financial liabilitiesissued at fixed rates expose the Group to fair value interest rate risk. The Group determines therelative proportions of its fixed rate and floating rate contracts depending on the prevailing marketconditions. As at 30 June 2020, the Group has no long-term interest-bearing borrowing, (31December 2019: if the floating interest rates of the long-term interest-bearing borrowingsincreased or decreased by 50 base points, while other factors did not change, the Group’s netincome would increase or decrease by RMB40,471.31).

The Group’s finance department at its headquarters continuously monitors the interest rateposition of the Group. Increases in interest rates will increase the cost of new borrowings and theinterest expenses with respect to the Group’s outstanding floating rate borrowings and, therefore,could have a material adverse effect on the Group’s financial position. The Group’s managementlayer would make adjustments with reference to the latest market conditions which are interestrate swap agreements to mitigate its exposure to interest rate risk. During 2020 and 2019, theGroup had not entered into any interest rate swap agreements.

For the year ended 30 June 2020, the Group has no long-term interest-bearing borrowing (31December 2019: RMB31,600,000.00).

Currency risk

The Group’s major operational activities are carried out in Mainland China and a majority of thetransactions are denominated in RMB. The Group is exposed to foreign exchange risk arising fromthe recognised assets and liabilities as well as future transactions (denominated in foreigncurrencies, primarily with respect to United States dollars and Hong Kong dollars). The Group’sfinance department at its headquarters is responsible for monitoring the amounts of assets andliabilities, and transactions denominated in foreign currencies aim at mitigating the potentialforeign exchange risk to a large extent.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

X. Risks related to financial instruments (Continued)

4. Capital management

The Company’s primary objective for managing capital is to ensure that it maintains a strong creditrating and a healthy capital ratio in order to support its business, bring shareholders investing returnsand benefit related parties. Management also aims to maintain a capital structure that ensures thatthe lowest cost of capital is available to the entity.

Management adjusts the capital structure through adjusting dividend payments to shareholders,returning capital to shareholders, issuing new shares or selling assets to reduce debts.

The Group’s total capital is the total shareholders’ equity in the balance sheet. The Group does notadopt an asset ratio as a compulsory factor to govern capital investment.

The gearing ratios of the Group as at the end of the reporting periods were as follows:

	30 June 2020	31 December 2019
Gearing ratio	57.48%	54.23%

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XI. Disclosure of fair value

1. Assets and liabilities at fair value

30 June 2020:

		Input applied in the measurement of fair value
		Quoted prices in active markets		Significant observable inputs	Significant unobservable inputs	Total
		Level 1		Level 2	Level 3
	Continuous measurement of fair value
	Receivable financing	-		399,889,650.01	-	399,889,650.01
	Other investment in equity instruments	-		116,021,000.00	-	116,021,000.00
	Other non-current financial assets	-		-	120,972,350.24	120,972,350.24
		-		515,910,650.01	120,972,350.24	636,883,000.25

31 December 2019:

		Input applied in the measurement of fair value
		Quoted prices in active markets		Significant observable inputs	Significant unobservable inputs	Total
		Level 1		Level 2	Level 3
	Continuous measurement of fair value
	Receivable financing	-		446,342,588.46	-	446,342,588.46
	Other investment in equity instruments	-		116,021,000.00	-	116,021,000.00
	Other non-current financial assets	-		-	140,000,000.00	140,000,000.00
		-		562,363,588.46	140,000,000.00	702,363,588.46

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XI. Disclosure of fair value (Continued)

2. Estimation of fair value

Management has assessed that the fair values of cash and cash equivalents, trade receivables, receivable financing,other receivables, short-term borrowings, notes payable, trade payables, other payables, non-current liabilities duewithin 1 year as well as other short-term financial assets and liabilities. Due to the short remaining maturities ofthese instruments, the fair value approximated to the carrying amount.

The financial controller of the Group takes the responsibility to formulate policies and procedures related to financialinstrument fair value measurements and directly reports to the CFO and the audit committee. On each balancesheet date, the financial department analyses the variation of the fair value of financial instruments and determinesthe inputs applicable to valuation. The valuation is required to be approved by the CFO.

The fair values of financial assets and liabilities are the amounts at which the instrument could be exchanged ordebts could be settled in an arm’s length transaction between knowledgeable and willing parties, other than in aforced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

The fair values of short-term and long-term borrowings, and long-term payables have been calculated bydiscounting the expected future cash flows using market rates of return currently available for other financialinstruments with similar terms, credit risk and remaining maturities. As at 30 June 2020, the Group’s ownnon-performance risk for short-term and long-term borrowings was assessed to be insignificant.

For an equity instrument of listed entities, the market price is used to determine fair value. For an equity instrumentof non-listed entities, the recent equity transaction consideration or the market comparable company model is usedto estimate fair value. The Group believes that the estimated fair value by the valuation method is rational, and alsothe most sufficient value at the balance sheet date.

3. Unobservable inputs

Other non-current financial assets were the fund shares of Qirui Port Investment Center LP of Ningbo MeishanBonded Port subscribed by the Group. For the determination of the fair value of the investment, after referring to thenet assets of Qirui Port Investment Center LP of Ningbo Meishan Bonded Port on 30 June 2020, which hasimplemented the new financial instrument standards, the result was calculated and determined according to the fundshare proportion owned by the company.

A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonablefluctuation of the unobservable inputs.

4. Transfers between levels of fair value measurement

At 30 June 2020 and 31 December 2019, there were no transfers of fair value measurements between Level 1 andLevel 2.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions

1. Parent

Parent’s name	Registered address	Nature of business	Share capital	Proportion of ownership interest in the Company	Proportion of voting power in the Company
Sinopharm Group Co., Ltd.	Shanghai	Industrial investment holding, trustee of a pharmaceutical enterprise, assets reorganization, distribution and retail of medicines and pharmaceutical products, etc.	3,120,656,191.00	56.06%	56.06%

The ultimate controlling party of the Company is CNPGC.

2. Subsidiaries

Refer to Note IX (1) for details of subsidiaries.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

3. Associates

Refer to Note IX (3) for details of associates.

Company name	Related party relationships
Shenzhen Main Luck Pharmaceutical Co., Ltd.	Associate
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Associate
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	Associate
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	Associate
Shanghai Shyndec Pharmaceutical Co., Ltd.	Associate
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.	Associate
Sinopharm Jienuo Medical Treatment Sevice Guangdong Co., Ltd.	Associate
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	Associate
Shanghai Liyi Pharmacy Co.,Ltd.	Associate
Dongyuan Accord Pharmaceutical Chain Co., Ltd.	Associate
Shanghai Renbei Pharmacy Co., Ltd.	Associate
Guangdong Jianhui Construction Investment Management Co., Ltd.	Associate

4. Other related parties

Company name	Related party relationships
Sinopharm Holding Sub Marketing Center Co., Ltd.	Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co., Ltd.	Controlled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.	Controlled by Sinopharm Group
China National Medicines Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Lianyungang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd.	Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Huaian Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Hulun Buir Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Henan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holdings Beijing Huahong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Anshun Co., Ltd.	Controlled by Sinopharm Group
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd.	Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Wuxi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanghai Biomedicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Honghe Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd.	Controlled by Sinopharm Group
Yuxi Sinopharm Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd	Controlled by Sinopharm Group
Sinopharm Group Shanxi Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd.	Controlled by Sinopharm Group
Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Chengde Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Xintai Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd	Controlled by Sinopharm Group
Sinopharm Lerentang Cangzhou Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Handan Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Chuxiong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd	Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd	Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Ningde Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd	Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co., Ltd.	Controlled by Sinopharm Group
Shanghai International Pharmaceutical Trade Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Jiankun (Beijing) Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Anhui Huaning Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Anshan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Bayannur Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Puer Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Dezhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Changsha Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co., Ltd.	Controlled by Sinopharm Group
China Medical Equipment Shandong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Device (Guangdong) Medicial Technology Co., Ltd.	Controlled by Sinopharm Group
Sinopharm (Dalian) Medicial Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Baotou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Anhui Medical Devices Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Ordos Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jilin Province Medicial Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Hebei Medical Instrument Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Tonghua Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Guangxi Medical Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medical Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co., Ltd.	Controlled by Sinopharm Group
Guoyao Lerentang Hebei Medical Device Supply Chain Management Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Shanghai Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited	Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Guangzhou Branch	Controlled by Sinopharm Group
Sinopharm Pharmaceutical Logistics Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Guizhou Yitong Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Hubei Bokang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Co., Ltd. Shanghai Management Consulting Branch	Controlled by Sinopharm Group
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.	Controlled by Sinopharm Group
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Shenzhen Medicine Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Medical Instrument Hainan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Wuhan Hongshen Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Advanced (Shanghai) Medicine Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Linyi Medicial Device Co., Ltd.	Controlled by Sinopharm Group
Liaoning Pilot Free Trade Zone China Medical Device Technology Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jinzhong Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Linfen Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Med-Tech Co., Ltd.	Controlled by Sinopharm Group
China National Medical Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shiyan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Lvliang Co., Ltd.	Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Holding Shanxi Zhidekang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Base Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Medical Devices Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Luzhou Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Yongzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Prospect Dentech (Beijing) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Group Lingshang Hospital Management Services (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Logistics Beijing Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Zhuhai Medical Instrument Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Guizhou (Zunyi) Medical Equiment Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Tongren Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Hunan Prov. Medical Equipment Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Baise Device Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Qianxinan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Kunming Pharmacy Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Lerentang Langfang Medicine Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Zhenjiang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medicial Chain Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Shanxi Hejin Pharmaceutical Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Medical Instrument (Foshan) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Deyang Co., Ltd.	Controlled by Sinopharm Group
Sinopharm (Nanping) Medical Instrument Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Siping Co., Ltd.	Controlled by Sinopharm Group
Shanghai Shengxin Pharmacy Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd.	Controlled by Sinopharm Group
Sinopharm Holding Jilin Chain Store Co., Ltd.	Controlled by Sinopharm Group
Chengdu Rongsheng Pharmacy Co., Ltd.	Controlled by CNPGC

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Sinopharm Wuhan Blood Products Co., Ltd.	Controlled by CNPGC
Foshan Winteam Pharmaceutical Group Ltd.	Controlled by CNPGC
Shantou Jinshi Powder Injection Co., Ltd.	Controlled by CNPGC
Sinopharm Jingfang (Anhui) Pharmaceutical Co., Ltd.	Controlled by CNPGC
Chengdu Institute of Biological Products Co.,Ltd.	Controlled by CNPGC
Sinopharm Group Yibin Pharmaceuticals Co., Ltd.	Controlled by CNPGC
China National Pharmaceutical Foreign Trade Corporation	Controlled by CNPGC
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.	Controlled by CNPGC
China National Pharmaceutical Industry Co., Ltd.	Controlled by CNPGC
Lanzhou Biotechnology Development Co., Ltd.	Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co., Ltd.	Controlled by CNPGC
Foshan Chengnan Fengliaoxing Medicial Hospital Co., Ltd.	Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co., Ltd.	Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.	Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.	Controlled by CNPGC
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd.	Controlled by CNPGC
Sinopharm Yixin Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd.	Controlled by CNPGC
Fujian Chentian Jinling Pharmaceutical Co., Ltd.	Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.	Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.	Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.	Controlled by CNPGC
Sinopharm ChuanKang Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Guangdong Global Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd.	Controlled by CNPGC
Huayi Pharmaceutical Co., Ltd.	Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd.	Controlled by CNPGC
Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Weiqida Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Industry Investment Co., Ltd.	Controlled by CNPGC

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
China National of Traditional&Herbal Medicine Co., Ltd.	Controlled by CNPGC
China Medicine Group Chongqing Medicine Design Institute	Controlled by CNPGC
Sinopharm Sinopharm Group Finance Co., Ltd.	Controlled by CNPGC
Shanghai Zeno Biotechnology Co., Ltd.	Controlled by CNPGC
Shanghai Shangsheng Biological Products Co., Ltd.	Controlled by CNPGC
Sinopharm Group Guizhou Blood Products Co., Ltd.	Controlled by CNPGC
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd.	Controlled by CNPGC
Sinopharm Group Chengdu Xinlibang Biological Pharmaceutial Co., Ltd.	Controlled by CNPGC
Qinhai Pulante Pharmaceutical Co., Ltd.	Controlled by CNPGC
China Sinopharm International Corporation	Controlled by CNPGC
Guangdong Yifang Pharmaceutical Co., Ltd.	Controlled by CNPGC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd.	Controlled by CNPGC
Sinopharm Holding (China) Financing Lease Co., Ltd.	Associate of Sinopharm Group
Sinopharm Health Online Co., Ltd.	Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.	Associate of Sinopharm Group
Guoyaotang Pharmacy (Shanghai) Co., Ltd.	Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co., Ltd.	Associate of Sinopharm Group
Yichang Humanwell Pharmaceutical Co., Ltd.	Associate of Sinopharm Group
Sinopharm Nutraceuticals (Shanghai) Co., Ltd.	Associate of Sinopharm Group
Sinopharm Holding Chuangke Medicial Technology (Guangxi) Co., Ltd.	Associate of Sinopharm Group
Sinopharm Holding Chuangke Yuanzhe Medicial Technology (Shanghai) Co., Ltd.	Associate of Sinopharm Group
Nanchang Sinopharm Holding Guoyaotang Pharmacy Co., Ltd.	Associate of Sinopharm Group
SINO-TCM Shanghai Medicine & Medicinal Materials Co., Ltd.	Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd.	Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co., Ltd.	Associate of CNPGC
Chongqing Yaoyou Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company	Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co., Ltd.	Subsidiary of Fosun Pharm
Jinzhou Avanc Pharmaceuticals Co., Ltd.	Subsidiary of Fosun Pharm
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.	Subsidiary of Fosun Pharm
Guilin Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Foshan Chancheng Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Foshan Chancheng Central Hospital Co., Ltd.	Subsidiary of Fosun Pharm
Shenzhen Hengsheng Hospital	Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co Ltd.	Subsidiary of Fosun Pharm
Foshan Chancheng District Shiwan Town Chengnan Community Health Service Center	Subsidiary of Fosun Pharm
Jiangsu Wanbang Pharmacy Marketing Co., Ltd.	Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co.,Ltd.	Subsidiary of Fosun Pharm
Jinzhou Avanc Medicine Co., Ltd.	Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd.	Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co., Ltd.	Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Chengdu List Pharmaceutical Co.,Ltd.	Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd.	Subsidiary of Fosun Pharm
Dalian Aleph Biomedical Co., Ltd.	Subsidiary of Fosun Pharm
Chindex International Trading (Shanghai) Co., Ltd.	Subsidiary of Fosun Pharm
Shenzhen Chindex Medical Beauty Clinic	Subsidiary of Fosun Pharm
Shanghai Compound Technology Medical Devices Co., Ltd.	Subsidiary of Fosun Pharm
Shenzhen Wanwei Medicine Trading Co., Ltd.	Subsidiary of Main Luck Pharmaceutical
Hangzhou Xihu Business Group Corporation	Non-controlling interest of a subsidiary
Shenzhen Jiufeng Investment Co., Ltd.	Non-controlling interest of a subsidiary
Shenyang Pharmaceutical Co., Ltd.	Non-controlling interest of a subsidiary
Lerentang Investment Group Co., Ltd.	Non-controlling interest of a subsidiary
Guangdong Jiyuantang Development Co., Ltd.	Non-controlling interest of a subsidiary
Beijing Huafang Investment Co., Ltd.	Non-controlling interest of a subsidiary
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	Non-controlling interest of a subsidiary
Gu Haiqun	Non-controlling interest of a subsidiary
Puer Songmao Medicine Group Co., Ltd.	Non-controlling interest of a subsidiary
Linyi Medical Group Co., Ltd.	Non-controlling interest of a subsidiary

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company name	Related party relationships
Zhang Zhenfang	Non-controlling interest of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co., Ltd.	Non-controlling interest of a subsidiary
Henan Wanxitang Pharmacy Co., Ltd.	Non-controlling interest of a subsidiary
Taishan Xiangranhui Trade Co., Ltd.	Controlled by non-controlling interest of a subsidiary
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.	Controlled by non-controlling interest of a subsidiary
Nanjing Yuanguang Trading Co., Ltd.	Controlled by non-controlling interest of a subsidiary
Gu Jinhua	Family member of the non-controlling shareholder of a subsidiary
Shanghai Shyndec Pharmaceutical Co., Ltd.	Associate
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Associate
Dongyuan Accord Pharmaceutical chain Co., Ltd.	Associate
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	Associate
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	Associate
Shanghai Liyi Pharmacy Co.,Ltd.	Associate
Shenzhen Main Luck Pharmaceutical Co., Ltd.	Associate
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	Associate
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.	Associate
Sinopharm Jienuo Medical Treatment Sevice Guangdong Co., Ltd.	Associate

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties

(1) Related party transactions - goods and services

Purchase of goods and receiving of services from related parties

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Sub Marketing Center Co., Ltd.	Purchase of goods	548,051,256.56	6,580,000,000.00	NO	587,767,944.47
China National Medicines Co., Ltd.	Purchase of goods	309,588,426.46		NO	264,335,667.59
Sinopharm Holding Shanxi Co., Ltd.	Purchase of goods	302,659,086.81		NO	165,125,264.60
Sinopharm Holding Shanxi Co., Ltd.	Purchase of goods	168,218,597.08		NO	117,012,541.61
Sinopharm Lerentang Medicine Co., Ltd.	Purchase of goods	144,033,107.71		NO	58,690,396.26
Sinopharm Group Co., Ltd.	Purchase of goods	101,625,946.62		NO	124,135,516.50
Jiangsu Wanbang Pharmacy Marketing Co., Ltd.	Purchase of goods	97,184,029.57		NO	84,007,944.24
Sinopharm Holding Shenyang Co., Ltd.	Purchase of goods	91,252,243.44		NO	63,745,181.47
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	Purchase of goods	76,699,225.00		NO	46,674,234.45
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	Purchase of goods	60,511,824.27		NO	54,227,928.18
Sinopharm Holding Hubei Co., Ltd.	Purchase of goods	58,060,607.87		NO	9,071,305.78
Lanzhou Biotechnology Development Co., Ltd.	Purchase of goods	48,840,600.00		NO	55,500,000.00
Sinopharm Holding Yangzhou Co., Ltd.	Purchase of goods	38,126,655.70		NO	29,671,574.81
Sinopharm Holding Inner Mongolia Co., Ltd.	Purchase of goods	35,570,487.58		NO	34,523,083.38
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	Purchase of goods	34,820,929.08		NO	6,891.48
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	Purchase of goods	34,152,784.08		NO	10,193,725.00
Sinopharm Holding Beijing Co., Ltd.	Purchase of goods	32,520,572.80		NO	20,533,829.97
Chongqing Yaoyou Pharmaceutical Co., Ltd.	Purchase of goods	26,949,678.43		NO	27,810,842.74
Sinopharm Holding Lunan Co., Ltd.	Purchase of goods	26,448,807.82		NO	32,561,603.45
Sinopharm Holding Henan Co., Ltd.	Purchase of goods	22,896,338.50		NO	12,814,208.20
Sinopharm Holding Fujian Co., Ltd.	Purchase of goods	21,032,808.12		NO	16,041,870.46

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Shenzhen Main Luck Pharmaceutical Co., Ltd.	Purchase of goods	16,716,318.29	6,580,000,000.00	NO	19,919,483.19
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.	Purchase of goods	16,213,399.66		NO	15,458,862.78
Sinopharm Holding Pingdingshan Co., Ltd.	Purchase of goods	15,984,508.75		NO	14,429,720.75
Sinopharm Holding Ningxia Co., Ltd.	Purchase of goods	12,243,904.08		NO	7,213,084.95
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Purchase of goods	12,126,208.66		NO	20,043,121.07
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	Purchase of goods	11,851,634.26		NO	14,856,080.60
Foshan Winteam Pharmaceutical Group Ltd.	Purchase of goods	11,624,754.37		NO	20,304,885.66
Shenzhen Wanwei Medicine Trading Co., Ltd.	Purchase of goods	11,467,474.49		NO	11,854,921.28
Sinopharm Holding Jilin Co., Ltd.	Purchase of goods	11,181,666.83		NO	13,152.13
Sinopharm Holding Changzhou Co., Ltd.	Purchase of goods	11,126,503.85		NO	6,705,005.60
Tibet Yaoyou Medicines Co.,Ltd.	Purchase of goods	10,576,537.72		NO	22,100,470.84
Sinopharm Holding Jiangsu Co., Ltd.	Purchase of goods	10,137,097.99		NO	12,867,682.99
Sinopharm Holding Shandong Co., Ltd.	Purchase of goods	9,870,222.38		NO	7,306,060.58
Shanghai Shyndec Pharmaceutical Co., Ltd.	Purchase of goods	9,493,936.28		NO	6,577,712.26
Sinopharm Holding Hunan Co., Ltd.	Purchase of goods	8,970,281.71		NO	5,496,202.17
Sinopharm Holding Wuxi Co., Ltd.	Purchase of goods	8,550,202.41		NO	2,456,981.90
Chengdu Rongsheng Pharmacy Co., Ltd.	Purchase of goods	8,518,290.00		NO	13,746,664.10
Sinopharm Yixin Pharmaceutical Co., Ltd.	Purchase of goods	8,249,563.42		NO	6,463,202.79
Sinopharm Holding Xiamen Co., Ltd.	Purchase of goods	8,217,598.96		NO	10,273,616.32

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
China National Pharmaceutical Foreign Trade Corporation	Purchase of goods	8,156,658.48	6,580,000,000.00	NO	-
Yichang Humanwell Pharmaceutical Co., Ltd.	Purchase of goods	7,649,748.62		NO	6,711,635.43
Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co., Ltd.	Purchase of goods	7,522,898.44		NO	-
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	Purchase of goods	7,471,038.17		NO	8,677,802.26
Jinzhou Avanc Pharmaceuticals Co., Ltd.	Purchase of goods	7,185,929.54		NO	28,182,818.68
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd.	Purchase of goods	6,570,287.55		NO	-
Jiangxi Erye Medicine Marketing Co., Ltd.	Purchase of goods	6,456,636.49		NO	17,959,707.56
China Otsuka Pharmaceutical Co., Ltd.	Purchase of goods	6,256,674.56		NO	6,697,508.52
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.	Purchase of goods	5,872,922.23		NO	7,161,067.43
Sinopharm Holding Tongliao Co., Ltd.	Purchase of goods	5,810,230.35		NO	2,906,482.17
Sinopharm Group Shanxi Medical Devices Co., Ltd.	Purchase of goods	4,980,871.81		NO	-
Sinopharm Shenzhen Medicine Device Co., Ltd.	Purchase of goods	7,522,898.44		NO	-
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.	Purchase of goods	4,689,458.43		NO	-
Shanghai Zeno Biotechnology Co., Ltd.	Purchase of goods	4,606,542.22		NO	-
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	Purchase of goods	4,424,779.00		NO	-
Sinopharm Liaoning Medical Equipment Co., Ltd.	Purchase of goods	4,168,839.16		NO	2,326,076.00
Shanghai Chaohui Pharmaceutical Co., Ltd.	Purchase of goods	3,970,884.24		NO	90,783.71

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Shanghai International Pharmaceutical Trade Co., Ltd.	Purchase of goods	3,912,114.41	6,580,000,000.00	NO	1,967,905.09
Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd.	Purchase of goods	3,897,527.05		NO	-
Tibet Yaoyou Medicines Co.,Ltd.	Purchase of goods	3,749,173.52		NO	-
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.	Purchase of goods	3,716,814.16		NO	-
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.	Purchase of goods	3,507,017.31		NO	3,018,099.42
Sinopharm Holding Jinan Co., Ltd.	Purchase of goods	3,208,390.44		NO	3,031,490.28
Sinopharm Holding Jinzhou Co., Ltd.	Purchase of goods	3,117,332.78		NO	2,050,823.42
Sinopharm Holding Chongqing Co., Ltd.	Purchase of goods	3,106,188.00		NO	-
Sinopharm Holding Beijing Huahong Co., Ltd.	Purchase of goods	2,856,735.70		NO	2,143,025.16
Jinzhou Avanc Medicine Co., Ltd.	Purchase of goods	2,780,545.99		NO	-
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.	Purchase of goods	2,745,736.27		NO	160,792.59
Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.	Purchase of goods	2,704,084.84		NO	1,634,592.42
Sinopharm Group Guorui Medicine Co., Ltd.	Purchase of goods	2,675,445.41		NO	3,219,200.90
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.	Purchase of goods	2,616,939.67		NO	1,947,122.98
Sinopharm Holding Heilongjiang Co., Ltd.	Purchase of goods	2,533,432.31		NO	2,603,286.79
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.	Purchase of goods	2,481,349.10		NO	1,647,132.50
Sinopharm Holding Anhui Co., Ltd.	Purchase of goods	2,398,623.06		NO	558,299.15

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	Purchase of goods	2,391,565.82	6,580,000,000.00	NO	1,673,805.68
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.	Purchase of goods	2,381,688.57		NO	-23,551.03
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.	Purchase of goods	2,283,462.26		NO	5,703,217.41
Sichuan Hexin Pharmaceutical Co., Ltd.	Purchase of goods	2,257,987.38		NO	5,339,761.19
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.	Purchase of goods	2,181,662.15		NO	1,374,403.26
Sinopharm Holding Tianjin Co., Ltd.	Purchase of goods	2,168,770.41		NO	706,163.71
Sinopharm Holding Fuzhou Co., Ltd.	Purchase of goods	2,117,865.83		NO	2,676,398.89
Sinopharm Medical Instrument Hainan Co., Ltd.	Purchase of goods	2,109,734.51		NO	-
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.	Purchase of goods	1,911,884.91		NO	4,431,084.35
Hunan Dongting Pharmaceutical Co., Ltd.	Purchase of goods	1,885,047.92		NO	1,221,714.73
Sinopharm Holding Changsha Co., Ltd.	Purchase of goods	1,783,867.44		NO	1,166,442.94
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.	Purchase of goods	1,717,968.13		NO	45,806,688.15
Sinopharm Chuankang Pharmaceutical Co., Ltd.	Purchase of goods	1,699,176.97		NO	4,521,905.90
Sinopharm Holding Yancheng Co., Ltd.	Purchase of goods	1,623,042.70		NO	1,174,557.52
Sinopharm Holding Hulun Buir Co., Ltd.	Purchase of goods	1,564,568.11		NO	813,318.59
China National Pharmaceutical Industry Co., Ltd.	Purchase of goods	1,509,682.80		NO	1,237,603.17
Shanghai Shangsheng Biological Products Co., Ltd.	Purchase of goods	1,506,116.50		NO	2,556,796.11

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Suzhou Erye Pharmaceutical Limited Company	Purchase of goods	1,489,545.90	6,580,000,000.00	NO	4,729,210.71
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.	Purchase of goods	1,450,504.18		NO	4,541,480.00
Sinopharm Holding Dalian Co., Ltd.	Purchase of goods	1,450,198.00		NO	708,136.87
Sinopharm Jiankun (Beijing) Medicine Co., Ltd.	Purchase of goods	1,444,828.32		NO	-
Sinopharm Holding Anhui Huaning Medicine Co., Ltd.	Purchase of goods	1,434,252.18		NO	-
Sinopharm Holding Wuhan Hongshen Medicine Co., Ltd.	Purchase of goods	1,415,929.21		NO	-
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.	Purchase of goods	1,300,658.82		NO	-
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.	Purchase of goods	1,209,038.66		NO	434,284.50
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.	Purchase of goods	1,124,358.11		NO	2,751,225.88
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd.	Purchase of goods	1,077,980.94		NO	257,629.73
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd.	Purchase of goods	989,799.95		NO	-
Sinopharm (Dalian) Medicial Device Co., Ltd.	Purchase of goods	928,255.76		NO	-
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd.	Purchase of goods	907,465.81		NO	357,980.82
Sinopharm Holding Quanzhou Co., Ltd.	Purchase of goods	880,856.56		NO	509,096.37

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Chuangke Medicial Technology (Guangxi) Co., Ltd.	Purchase of goods	796,460.19	6,580,000,000.00	NO	-
Sinopharm Jingfang (Anhui) Pharmaceutical Co., Ltd.	Purchase of goods	766,468.52		NO	537,444.48
Shanghai Merro Pharmaceutical Co., Ltd.	Purchase of goods	749,178.23		NO	980,340.63
Shanghai Transfusion Technology Co., Ltd.	Purchase of goods	712,212.39		NO	444,825.76
Sinopharm Holding Chuangke Yuanzhe Medicial Technology (Shanghai) Co., Ltd.	Purchase of goods	672,566.40		NO	-
Sinopharm Weiqida Pharmaceutical Co., Ltd.	Purchase of goods	668,790.52		NO	1,396,321.58
Sinopharm Holding Bayannur Co., Ltd.	Purchase of goods	667,045.83		NO	120,003.15
Sinopharm Advanced (Shanghai) Medicine Device Co., Ltd.	Purchase of goods	649,215.02		NO	-
Sinopharm Holding Linyi Medicial Device Co., Ltd.	Purchase of goods	633,769.93		NO	-
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.	Purchase of goods	627,174.03		NO	904,775.75
Sinopharm Hebei Medical Instrument Co., Ltd.	Purchase of goods	607,424.77		NO	-
Sinopharm Holding Anshan Co., Ltd.	Purchase of goods	584,206.98		NO	-
Sinopharm Guangdong Global Pharmaceutical Co., Ltd.	Purchase of goods	581,499.90		NO	778,815.71
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.	Purchase of goods	506,283.18		NO	853,055.98
Chengdu Institute of Biological Products Co.,Ltd.	Purchase of goods	475,738.80		NO	821,518.40

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Putian Co., Ltd.	Purchase of goods	466,764.43	6,580,000,000.00	NO	602,182.39
Sinopharm Holding Puer Co., Ltd.	Purchase of goods	446,396.77		NO	-
Sinopharm Group Yibin Pharmaceuticals Co., Ltd.	Purchase of goods	433,524.84		NO	825,452.16
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.	Purchase of goods	414,430.28		NO	627,257.64
Sinopharm Group Southwest Medicine Co., Ltd.	Purchase of goods	372,966.72		NO	942,169.90
Sinopharm Xinjiang Pharmaceutical Co., Ltd.	Purchase of goods	368,206.57		NO	73,542.96
Shenyang Hongqi Pharmaceutical Co., Ltd.	Purchase of goods	359,010.73		NO	1,395,942.72
Guilin Pharmaceutical Co., Ltd.	Purchase of goods	351,228.30		NO	491,705.68
Sinopharm Group Shanghai Medicine Device Co., Ltd.	Purchase of goods	308,584.08		NO	-
Shantou Jinshi Powder Injection Co., Ltd.	Purchase of goods	300,803.34		NO	1,575,114.81
Sinopharm Holding Shanghai Biomedicine Co., Ltd.	Purchase of goods	282,209.74		NO	533,969.68
Liaoning Pilot Free Trade Zone China Medical Device Technology Co., Ltd.	Purchase of goods	260,176.99		NO	-
Chengdu List Pharmaceutical Co.,Ltd.	Purchase of goods	204,849.56		NO	-
Sinopharm Holding Zhejiang Co., Ltd.	Purchase of goods	194,238.02		NO	383,036.87
Huayi Pharmaceutical Co., Ltd.	Purchase of goods	176,144.72		NO	-191,940.52
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.	Purchase of goods	160,565.02		NO	-
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd.	Purchase of goods	157,222.35		NO	142,539.15
Sinopharm Sichuan Pharmaceutical Co., Ltd.	Purchase of goods	144,648.00		NO	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Yunnan Co., Ltd.	Purchase of goods	143,973.45	6,580,000,000.00	NO	-
Fujian Chentian Jinling Pharmaceutical Co., Ltd.	Purchase of goods	138,669.72		NO	328,557.99
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.	Purchase of goods	132,136.11		NO	-
Sinopharm Holding Baotou Co., Ltd.	Purchase of goods	126,066.66		NO	-
Sinopharm Holding Nanping Newforce Co., Ltd.	Purchase of goods	122,980.30		NO	-
Sinopharm Holding Shanxi Jinzhong Co., Ltd.	Purchase of goods	119,470.72		NO	-
Sinopharm Holding Hainan Co., Ltd.	Purchase of goods	111,398.23		NO	556,396.59
Sinopharm Holding Dezhou Co., Ltd.	Purchase of goods	108,484.59		NO	148,796.05
Sinopharm Group Linfen Co., Ltd.	Purchase of goods	107,014.36		NO	-
Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.	Purchase of goods	93,171.55		NO	-
Sinopharm Group Med-Tech Co., Ltd.	Purchase of goods	92,920.35		NO	-
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.	Purchase of goods	82,302.92		NO	-
Sinopharm Holding Taizhou Co., Ltd.	Purchase of goods	81,224.26		NO	34,438.88
Sinopharm Holding Zhangzhou Co., Ltd.	Purchase of goods	73,228.32		NO	-
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd.	Purchase of goods	56,646.03		NO	-
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.	Purchase of goods	53,734.51		NO	95,965.53
Sinopharm Device (Guangdong) Medicial Technology Co., Ltd.	Purchase of goods	52,672.56		NO	-
Sinopharm Holding Yangzhou Biological Products Co., Ltd.	Purchase of goods	49,400.00		NO	166,268.35
Sinopharm Holding Dalian Hecheng Co., Ltd.	Purchase of goods	48,749.02		NO	175,327.42

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd.	Purchase of goods	46,347.42	6,580,000,000.00	NO	39,203.47
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.	Purchase of goods	42,957.42		NO	14,185.41
Sinopharm Holding Rizhao Co., Ltd.	Purchase of goods	34,498.69		NO	19,834.99
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd.	Purchase of goods	32,964.60		NO	-
Sinopharm Holding Jiangxi Co., Ltd.	Purchase of goods	28,244.60		NO	-
China National Medical Device Co., Ltd.	Purchase of goods	26,548.67		NO	-
Sinopharm Wuhan Blood Products Co., Ltd.	Purchase of goods	24,800.00		NO	248,000.00
Sinopharm Holding Hainan Hongyi Co., Ltd.	Purchase of goods	17,043.48		NO	--
China Medical Equipment Shandong Co., Ltd.	Purchase of goods	14,427.65		NO	116,013.65
Sinopharm Holding Chengdu Co., Ltd.	Purchase of goods	11,307.62		NO	-
Sinopharm Group Medicine Logistic Co., Ltd.	Purchase of goods	11,161.53		NO	10,445.10
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.	Purchase of goods	9,026.54		NO	19,401.89
Sinopharm Holding Shiyan Co., Ltd.	Purchase of goods	2,088.50		NO	-
Sinopharm Holding Ulanqab Co., Ltd.	Purchase of goods	2,043.91		NO	17,027.43
Sinopharm Holding Shanxi Jincheng Co., Ltd.	Purchase of goods	171.81		NO	8,408.74
Sinopharm Holding Shanxi Lvliang Co., Ltd.	Purchase of goods	-		NO	4,369,021.12
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.	Purchase of goods	-		NO	1,115,619.67
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.	Purchase of goods	-		NO	1,047,564.70
Sinopharm Holding Suzhou Co., Ltd.	Purchase of goods	-		NO	821,818.78
Sinopharm Group Guizhou Blood Products Co., Ltd.	Purchase of goods	-		NO	536,000.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
Sinopharm Holding Shanxi Zhidekang Medicine Co., Ltd.	Purchase of goods	-	6,580,000,000.00	NO	189,064.65
Sinopharm Holding (Hubei) Base Pharmaceutical Co., Ltd.	Purchase of goods	-		NO	152,076.28
Jiangsu Huanghe Pharmaceutical Co., Ltd.	Purchase of goods	-		NO	133,968.48
Sinopharm Group Shanxi Co., Ltd.	Purchase of goods	-		NO	111,864.77
Sinopharm Holding Fuzhou Medical Devices Co., Ltd.	Purchase of goods	-		NO	40,707.96
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd.	Purchase of goods	-		NO	29,090.91
Guoyao Lerentang Hebei Medical Device Supply Chain Management Co., Ltd.	Purchase of goods	-		NO	17,131.04
Sinopharm Holding Luzhou Pharmaceutical Co., Ltd.	Purchase of goods	-		NO	10,137.93
Sinopharm Holding Yongzhou Co., Ltd.	Purchase of goods	-		NO	(49.36)
Sinopharm Prospect Dentech (Beijing) Co., Ltd.	Purchase of goods	-		NO	(63.80)
Sinopharm Group Chengdu Xinlibang Biological Pharmaceutial FiCo., Ltd.	Purchase of goods	-		NO	(9,500.00)
Sinopharm Group Lingshang Hospital Management Services (Shanghai) Co., Ltd.	Purchase of goods	-		NO	1,599,454.53
Qinhai Pulante Pharmaceutical Co., Ltd.	Purchase of goods	-		NO	258,620.67
Sinopharm Holding Lianyungang Co., Ltd.	Purchase of goods	(478.47)		NO	815,620.38
The Fourth Pharmaceutical Co., Ltd. of Zhonglian Group	Purchase of goods	(1,875.00)		NO	35,353.29
Chongqing Haisiman Pharmaceutical Co., Ltd.	Purchase of goods	(3,514.34)		NO	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related party	Type of transaction	For the six months ended 30 June 2020	Approved trading quota	whether the transaction limit is exceeded	For the six months ended 30 June 2019
SINO-TCM Shanghai Medicine&Medicinal Materials Co., Ltd.	Purchase of goods	(10,888.69)	6,580,000,000.00	NO	-
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.	Purchase of goods	(191,787.19)		NO	3,824,818.27
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.	Purchase of goods	(550,607.22)		NO	1,672,471.40
Sinopharm Health Online Co., Ltd.	Consulting service fee	7,008,590.59	60,000,000.00	NO	6,298,404.97
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	Consulting service fee	1,492,677.11		NO	1,229,716.93
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd.	Consulting service fee	12,264.15		NO	-
Shanghai Tongyu Information Technology Co., Ltd.	Information system access fee	187,905.67		NO	142,764.15
Pingdingshan Pusheng Pharmaceutical Co., Ltd.	Others	-		NO	109,458.10
Sinopharm Group Medicine Logistic Co., Ltd.	Storage and transport cost;Consulting service fee	8,264,849.06		NO	7,275,965.45
Sinopharm Pharmaceutical Logistics Co., Ltd.	Storage and transport cost	93,635.83		NO	54,651.59
Sinopharm Logistics Beijing Co., Ltd.	Storage and transport cost	54,060.78		NO	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Group	Sale of goods	110,426,213.05	126,258,230.79
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	Sale of goods	61,896,587.65	55,645,701.04
Sinopharm Holding Hainan Co., Ltd.	Sale of goods	60,158,578.46	48,570,645.00
Sinopharm Holding Fujian Co., Ltd.	Sale of goods	51,109,674.50	1,731,691.96
Foshan Chancheng Pharmaceutical Co., Ltd.	Sale of goods	49,079,098.20	59,004,606.02
Sinopharm Lerentang Medicine Co., Ltd.	Sale of goods	22,566,166.73	9,207,801.66
Sinopharm Holding Hubei Co., Ltd.	Sale of goods	18,913,611.09	5,366,299.13
Sinopharm Holding Wenzhou Co., Ltd.	Sale of goods	14,794,703.17	14,754,017.76
Sinopharm Holding Hainan Hongyi Co., Ltd.	Sale of goods	13,367,342.74	17,357,873.16
Sinopharm Holding Beijing Co., Ltd.	Sale of goods	12,909,717.52	10,806,898.05
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	Sale of goods	10,679,779.77	11,241,528.41
Shenzhen Hengsheng Hospital	Sale of goods	10,629,421.43	10,482,252.70
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.	Sale of goods	10,455,648.05	12,628,299.53
Sinopharm Holding Henan Co., Ltd.	Sale of goods	9,642,957.94	8,408,084.97
Sinopharm Holding Nantong Co., Ltd.	Sale of goods	7,861,952.62	7,649,412.43
Foshan Chancheng Central Hospital	Sale of goods	7,665,327.44	5,456,346.95

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Zhuhai Medical Instrument Co., Ltd.	Sale of goods	7,446,238.57	13,939.15
Sinopharm Holding Shandong Co., Ltd.	Sale of goods	6,925,017.46	7,547,654.37
Sinopharm holdings Beijing Huahong Co., Ltd.	Sale of goods	5,763,714.05	13,727,246.49
Sinopharm Holding Sub Marketing Center Co., Ltd.	Sale of goods	5,584,808.87	12,022,683.32
Sinopharm Sichuan Pharmaceutical Co., Ltd.	Sale of goods	5,574,204.53	7,749,468.18
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.	Sale of goods	4,803,387.32	7,346,892.05
Foshan Chanyixing Medicine Development Co Ltd.	Sale of goods	3,705,867.85	3,252,324.63
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.	Sale of goods	3,680,499.78	4,382,624.09
Sinopharm Holding Anhui Co., Ltd.	Sale of goods	3,490,356.70	2,691,014.38
Shanghai Merro Pharmaceutical Co., Ltd.	Sale of goods	3,312,398.44	4,094,385.70
Sinopharm Holding Yangzhou Co., Ltd.	Sale of goods	3,233,686.62	4,293,371.83
Sinopharm Holding Shanxi Co., Ltd.	Sale of goods	3,053,010.35	5,246,365.87
Chindex International Trading (Shanghai) Co., Ltd.	Sale of goods	3,037,167.60	-
China Sinopharm International Corporation	Sale of goods	2,988,690.22	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Shanxi Co., Ltd.	Sale of goods	2,812,873.37	1,927,565.82
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	Sale of goods	2,349,651.28	1,828,562.25
China National Medicines Co., Ltd.	Sale of goods	2,178,096.79	1,932,350.56
Sinopharm Group Southwest Medicine Co., Ltd.	Sale of goods	1,891,076.22	1,580,662.42
Sinopharm Holding Yunnan Co., Ltd.	Sale of goods	1,875,892.22	3,291,886.51
Sinopharm Holding Tianjin Co., Ltd.	Sale of goods	1,822,107.93	2,043,046.86
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.	Sale of goods	1,724,205.31	1,283,881.89
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.	Sale of goods	1,716,599.10	-
Sinopharm Holding Quanzhou Co., Ltd.	Sale of goods	1,628,615.99	-87,055.63
Sinopharm Holding Jilin Co., Ltd.	Sale of goods	1,599,917.79	1,861,781.97
Sinopharm Holding Hunan Co., Ltd.	Sale of goods	1,594,378.72	1,476,158.08
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	Sale of goods	1,587,426.88	3,423,834.39
Sinopharm Holding Dalian Co., Ltd.	Sale of goods	1,320,364.57	1,833,913.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Xuzhou Co., Ltd.	Sale of goods	1,271,612.79	2,496,791.90
Sinopharm Holding Zunyi Co., Ltd.	Sale of goods	1,078,617.62	146,542.78
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd.	Sale of goods	1,075,458.43	-
Shanghai Guoda Lingyun Pharmacy Co., Ltd.	Sale of goods	786,887.13	425,714.65
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.	Sale of goods	784,084.53	225,250.43
Sinopharm Holding Guizhou Co., Ltd.	Sale of goods	749,381.57	158,213.27
Sinopharm Holding Guizhou (Zunyi) Medical Equiment Co., Ltd.	Sale of goods	722,382.88	-
Sinopharm Holding Anhui Pharmaceutical Co., Ltd.	Sale of goods	693,361.90	1,436,139.10
Shanghai Liyi Pharmacy Co.,Ltd	Sale of goods	690,837.84	1,432,059.22
Sinopharm Holding Gansu Co., Ltd.	Sale of goods	662,808.94	505,887.62
Sinopharm Lerentang Tangshan Medicine Co., Ltd.	Sale of goods	661,960.55	-
Sinopharm Holding Anshun Co., Ltd.	Sale of goods	626,960.18	21,688.95
Sinopharm Holding Ningxia Co., Ltd.	Sale of goods	607,397.50	772,293.60
Sinopharm Holding Jiangsu Co., Ltd.	Sale of goods	578,180.26	76,013.68
Sinopharm Holding Yancheng Co., Ltd.	Sale of goods	556,583.59	382,851.04

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Wuxi Co., Ltd.	Sale of goods	545,114.34	484,790.17
Sinopharm Holding Jiangxi Co., Ltd.	Sale of goods	499,633.43	123,135.25
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	Sale of goods	492,572.13	-
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd.	Sale of goods	477,391.38	-
Sinopharm Holding Wuhu Co., Ltd.	Sale of goods	421,019.02	419,826.51
Sinopharm Holding Honghe Co., Ltd.	Sale of goods	411,978.99	377,186.11
Sinopharm Holding Tongren Co., Ltd.	Sale of goods	347,824.70	197,968.78
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	Sale of goods	297,706.43	-
Sinopharm Holding Shanghai Biomedicine Co., Ltd.	Sale of goods	282,212.28	113,907.84
Sinopharm Holding Guizhou Medical Device Co., Ltd.	Sale of goods	255,175.71	70,073.94
Sinopharm Holding Qinghai Co., Ltd.	Sale of goods	253,282.77	250,674.21
Sinopharm Holding Chengdu Co., Ltd.	Sale of goods	238,592.93	252,754.20
Sinopharm Holding Tianjin North Medicine Co., Ltd.	Sale of goods	237,608.84	363,748.93
Dongyuan Accord Pharmaceutical chain Co., Ltd.	Sale of goods	230,559.29	30,868.27

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Yuxi Sinopharm Medicine Co., Ltd.	Sale of goods	226,147.04	956,668.77
Foshan Chancheng District Shiwan Town Chengnan Community Health Service Center	Sale of goods	207,388.60	-
Sinopharm Group Shanxi Co., Ltd.	Sale of goods	190,595.28	266,895.84
Sinopharm Holding Jiaozuo Co., Ltd.	Sale of goods	183,421.75	406,784.27
Sinopharm Lerentang Xintai Medicine Co., Ltd.	Sale of goods	178,966.16	-
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd.	Sale of goods	174,838.95	155,771.69
Sinopharm Guangdong Medical Examination Co., Ltd.	Sale of goods	163,965.18	73,203.54
Sinopharm Holding Inner Mongolia Co., Ltd.	Sale of goods	159,586.47	326,327.82
Sinopharm Lerentang Hengshui Medicine Co., Ltd.	Sale of goods	158,792.13	-
Sinopharm Hunan Prov. Medical Equipment Co., Ltd.	Sale of goods	142,300.88	-
Sinopharm Holding Hubei Hongyuan Co., Ltd.	Sale of goods	133,587.47	132,556.02
Sinopharm Holding Fuzhou Co., Ltd.	Sale of goods	131,345.42	131,753.26
Sinopharm Group Guangxi Medical Device Co., Ltd.	Sale of goods	113,097.35	66,013.12

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Changzhou Co., Ltd.	Sale of goods	110,397.17	50,185.70
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.	Sale of goods	107,256.67	-
Sinopharm Baise Device Co., Ltd.	Sale of goods	102,654.87	-
Sinopharm Holding Chongqing Co., Ltd.	Sale of goods	98,396.45	138,748.70
Shenzhen Chindex Medical Beauty Clinic	Sale of goods	97,277.83	140,970.86
Sinopharm Holding Shenyang Co., Ltd.	Sale of goods	92,078.76	608,363.96
Foshan Chengnan Fengliaoxing Medicial Hospital Co., Ltd.	Sale of goods	87,322.13	-
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	Sale of goods	84,955.75	-
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.	Sale of goods	84,353.70	-
Sinopharm Holding Chuxiong Co., Ltd.	Sale of goods	83,585.92	41,712.99
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.	Sale of goods	79,064.60	-
Sinopharm Fengliaoxing Medical Hospital Co., Ltd.	Sale of goods	75,159.98	101,588.59
Sinopharm Holding Jinzhou Co., Ltd.	Sale of goods	72,477.87	2,509,334.67
Sinopharm Holding Taizhou Co., Ltd.	Sale of goods	68,810.53	141,236.61

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Lerentang Chengde Medicine Co., Ltd.	Sale of goods	63,193.63	-
Sinopharm Holding Longyan Co., Ltd.	Sale of goods	57,138.07	44,963.97
Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd.	Sale of goods	55,743.09	2,663.79
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd.	Sale of goods	55,538.93	-
Sinopharm Holding Putian Co., Ltd.	Sale of goods	53,777.00	-33,809.91
Sinopharm Holding Qianxinan Co., Ltd.	Sale of goods	47,058.57	-
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd.	Sale of goods	41,262.69	-
Sinopharm Holding Dalian Hecheng Co., Ltd.	Sale of goods	39,122.93	743,390.17
Sinopharm Holding Fuzhou Co., Ltd.	Sale of goods	36,927.44	-
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.	Sale of goods	34,988.29	55,763.79
Sinopharm Lerentang Baoding Medicine Co., Ltd.	Sale of goods	32,999.89	-
Sinopharm Holding Ningde Co., Ltd.	Sale of goods	30,249.56	19,818.67
Sinopharm Lerentang Cangzhou Medicine Co., Ltd.	Sale of goods	27,143.36	-
Guangdong Yifang Pharmaceutical Co., Ltd.	Sale of goods	27,079.65	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Kunming Pharmacy Co., Ltd.	Sale of goods	26,664.78	-
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	Sale of goods	25,300.89	-
Sinopharm Lerentang Handan Medicine Co., Ltd.	Sale of goods	18,101.77	-
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd.	Sale of goods	18,101.77	-
Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd.	Sale of goods	17,838.67	-
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd	Sale of goods	16,467.26	-
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd.	Sale of goods	16,276.77	114,833.43
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd.	Sale of goods	12,993.87	-
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.	Sale of goods	12,682.56	-
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.	Sale of goods	11,412.30	6,320.71
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	Sale of goods	8,730.28	-
Sinopharm Group Guangdong Medicine Device Co., Ltd.	Sale of goods	8,494.51	296,825.53

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd.	Sale of goods	8,438.69	-
Sinopharm Lerentang Langfang Medicine Co., Ltd.	Sale of goods	7,323.36	-
Shenzhen Main Luck Pharmaceutical Co., Ltd.	Sale of goods	6,610.62	-
Sinopharm Holding Xiamen Co., Ltd.	Sale of goods	5,889.38	-
Sinopharm Holding Zhenjiang Co., Ltd.	Sale of goods	5,614.16	-
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.	Sale of goods	5,383.97	9,884.46
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Sale of goods	3,922.08	14,949.89
Sinopharm Jienuo Medical Treatment Sevice Guangdong Co., Ltd.	Sale of goods	2,657.08	3,590.16
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd.	Sale of goods	2,261.97	6,233.90
Sinopharm Medical Instrument Hainan Co., Ltd.	Sale of goods	1,805.31	-
Sinopharm Holding Guizhou Medicial Chain Co., Ltd.	Sale of goods	1,340.53	-
Sinopharm Holding Shanxi Hejin Pharmaceutical Co., Ltd.	Sale of goods	1,187.61	-
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.	Sale of goods		195,295.22

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Nanchang Sinopharm Holding Guoyaotang Pharmacy Co., Ltd.	Sale of goods		173,403.11
Shanghai Shengxin Pharmacy Co., Ltd.	Sale of goods		165,688.80
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.	Sale of goods		86,668.69
Shanghai Compound Technology Medical Devices Co., Ltd.	Sale of goods		59,482.76
Sinopharm Medical Instrument (Foshan) Co., Ltd.	Sale of goods		58,330.19
Sinopharm Holding Deyang Co., Ltd.	Sale of goods		36,771.21
Sinopharm (Nanping) Medical Instrument Co., Ltd.	Sale of goods		19,993.91
Sinopharm Holding Liaocheng Co., Ltd.	Sale of goods		15,779.79
Sinopharm Holding Shanxi Jincheng Co., Ltd.	Sale of goods		11,204.59
Sinopharm Holding Siping Co., Ltd.	Sale of goods		9,998.28
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd.	Sale of goods		165,688.80
Sinopharm Holding Ulanqab Co., Ltd.	Sale of goods		865.38
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd.	Sale of goods	(555.14)	47,434.77
Sinopharm Holding Liaocheng Co., Ltd.	Sale of goods	(16,556.17)	38,234.48

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Holding Shanxi Jincheng Co., Ltd.	Sale of goods	(26,464.91)	128,687.69
Sinopharm Group Medicine Logistic Co., Ltd.	Transport and storage income	3,176,727.67	401,376.93
China National Medicines Co., Ltd.	Transport and storage income	3,116,205.52	4,430,727.40
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	Transport and storage income	129,797.90	123,995.03
Sinopharm Holding Hubei Co., Ltd.	Transport and storage income	81,773.22
Sinopharm Group Southwest Medicine Co., Ltd.	Transport and storage income		82,001.72
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	Sublease income	285,714.30
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited	Sublease income	97,240.50
Sinopharm Holding Sub Marketing Center Co., Ltd.	Consulting service income	1,253,573.97
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd.	Consulting service income	82,325.73
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.	Consulting service income	17,169.81
Sinopharm Holding Shanxi Co., Ltd.	Consulting service income	1,886.79	1,688.12

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related Party	Type of transaction	For the six months ended 30 June 2020	For the six months ended 30 June 2019
China National Scientific Instruments & Materials Imp/Exp Shenzhen Co., Ltd.	Consulting service income	2.64
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.	Consulting service income		2,792.45
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Sublease income, canteen income	1,250,273.36	308,882.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(2) Related party transactions - leases

(a) As the lessor
	Type of assets under leases	Income from leases For the six months ended 30 June 2020	Income from leases For the six months ended 30 June 2019
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	Building	957,142.86	957,142.86
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	Building	285,714.30	285,714.30
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited	Building	97,240.50	-
China National Medicines Co., Ltd.	Building	52,554.86	24,000.00

(b) As the lessee
	Type of assets under leases	Expense from leases For the six months ended 30 June 2020	Expense from leases For the six months ended 30 June 2019
Sinopharm Group Medicine Logistic Co., Ltd.	Equipment	3,750,000.00	3,750,000.00
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	Building	5,296,226.44	6,670,660.92
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	Building	3,786,173.34	2,234,982.50
Shenyang Pharmaceutical Co., Ltd.	Building	3,571,428.61	253,564.15
Sinopharm Group Medicine Logistic Co., Ltd.	Building	3,540,000.00	3,539,999.98
Lerentang Investment Group Co., Ltd.	Building	3,224,047.60	3,354,162.22
Sinopharm Holding (China) Financing Lease Co., Ltd.	Building	2,971,727.14	-
Sinopharm Group Shanghai Co., Ltd.	Building	2,031,905.96	3,721,698.57
Puer Songmao Medicine Group Co., Ltd.	Building	1,984,761.90	-
Nanjing Yuanguang Trading Co., Ltd.	Building	1,923,809.52	855,468.84
Guangdong Jiyuantang Development Co., Ltd.	Building	978,504.36	1,088,752.31
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.	Building	478,984.74	476,713.98
Sinopharm Holding Rizhao Co., Ltd.	Building	436,785.87	-
Taishan Xiangranhui Trade Co., Ltd	Building	389,625.00	456,054.17
Wang Yang	Building	295,868.56	262,857.12
Sinopharm Holding Beijing Co., Ltd.	Building	254,761.90	260,870.74
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.	Building	181,428.58	173,068.27
Gu Jinhua	Building	178,800.00	207,084.48

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

Hangzhou Xihu Business Group Corporation	Building	146,438.10	145,986.38
China National Medicines Co., Ltd.	Building	142,857.14	145,865.91

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(2) Related party transactions - leases (Continued)

(b) As the lessee (continued)
	Type of assets under leases	Expense from leases For the six months ended 30 June 2020	Expense from leases For the six months ended 30 June 2019
Beijing Huafang Investment Co., Ltd.	Building	120,934.28	-
Gu Haiqun	Building	99,143.81	108,277.61
Taishan Qunkang Pharmacy Co., Ltd.	Building	70,850.46	70,864.95
Pingdingshan Pusheng Pharmaceutical Co., Ltd.	Building	-	2,405,696.37
Sinopharm Holding Yangzhou Co., Ltd.	Building	-	1,902,091.52
Hunan Minshengtang Investment Co., Ltd.	Building	-	1,838,716.70
Linyi Medical Group Co., Ltd.	Building	-	1,482,764.04
Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.	Building		277,303.54
Sinopharm Group	Building	-	267,553.06
Zhang Zhenfang	Building	-	214,062.49
Sinopharm Xinjiang Pharmaceutical Co., Ltd.	Building		136,369.86
Shenzhen Jiufeng Investment Co., Ltd.	Building	-	100,414.19
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.	Building	-	47,990.56
Sinopharm Holding Fujian Co., Ltd.	Building		6,571.39

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing

Related Party	Amount	Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	26,417,461.60	17 June 2020	28 February 2021	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	25,591,174.86	30 March 2020	27 November 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	16,708,946.70	17 June 2020	28 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	15,952,617.65	29 June 2020	12 November 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	15,738,659.54	30 March 2020	22 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	15,131,629.81	29 June 2020	23 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	13,321,571.14	29 June 2020	26 November 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	13,309,316.95	17 June 2020	22 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	12,854,829.49	17 June 2020	21 October 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	11,629,891.56	17 June 2020	12 December 2020	Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party	Amount	Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	10,000,000.00	30 March 2020	21 October 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	9,592,776.79	30 March 2020	26 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	8,734,291.95	30 March 2020	13 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	8,654,531.04	29 June 2020	27 October 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	8,468,822.74	30 March 2020	29 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	8,022,833.90	17 June 2020	9 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	7,117,026.69	30 March 2020	25 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	7,036,652.31	29 June 2020	18 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	6,926,217.96	29 June 2020	13 October 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	6,774,892.18	30 March 2020	23 June 2020	Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party	Amount	Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	5,889,988.69	17 June 2020	22 November 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	5,139,400.00	30 March 2020	18 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	5,003,642.57	17 June 2020	30 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	4,806,949.14	29 June 2020	24 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	4,149,277.07	29 June 2020	27 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	4,102,050.12	29 June 2020	24 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	4,004,334.07	30 March 2020	23 July 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	3,681,621.74	29 June 2020	11 Janurary 2021	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	3,661,014.00	17 June 2020	25 November 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	2,111,763.51	17 June 2020	25 August 2020	Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party	Amount	Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	2,000,000.00	30 March 2020	23 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,688,887.53	29 June 2020	31 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,627,804.20	30 March 2020	24 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,500,000.00	29 June 2020	16 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,358,141.29	17 June 2020	27 February 2021	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,351,727.52	17 June 2020	27 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,143,823.59	17 June 2020	8 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,121,058.50	30 March 2020	25 May 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,066,265.70	17 June 2020	2 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,044,379.17	29 June 2020	10 February 2021	Discount on bank acceptance bill

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party	Amount	Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	1,028,432.84	30 March 2020	9 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,000,000.00	30 March 2020	16 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	1,000,000.00	29 June 2020	5 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	986,008.29	29 June 2020	3 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	881,404.96	17 June 2020	20 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	814,589.70	17 June 2020	19 April 2021	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	727,038.70	17 June 2020	16 March 2021	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	664,534.24	17 June 2020	15 August 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	582,366.26	30 March 2020	20 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	550,000.00	30 March 2020	2 June 2020	Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related Party	Amount		Inception Date	Maturity Date	Note
Borrow from
Sinopharm Group Finance Co., Ltd.	536,958.37		17 June 2020	5 September 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	502,245.15		30 March 2020	3 June 2020	Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.	44,672,135.78		13 April 2020	13 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	44,259,553.08		1 April 2020	1 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	34,974,084.92		21 February 2020	21 August 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	31,431,408.53		3 April 2020	3 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	29,999,958.16		24 March 2020	24 September 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	27,106,844.88		18 May 2020	18 August 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	27,014,561.77		6 May 2020	6 August 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	24,252,458.08		17 April 2020	17 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	22,028,919.08		2 April 2020	2 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	19,997,263.24		16 April 2020	16 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	15,114,633.48		15 April 2020	15 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	14,015,476.19		20 April 2020	20 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	12,803,183.37		22 April 2020	22 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	12,482,024.32		10 April 2020	10 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	10,102,812.23		24 April 2020	24 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	9,825,307.89		28 June 2020	27 September 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	8,742,714.65		27 April 2020	27 July 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.	5,020,801.51		28 February 2020	27 August 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.		3,526,328.80	22 June 2020	22 September 2020	Short-term borrowings
Sinopharm Group Finance Co., Ltd.		1,197,726.00	7 April 2020	7 July 2020	Short-term borrowings
Sinopharm Group		28,000,000.00	1 Janurary 2020	31 March 2020	Short-term borrowings
Sinopharm Group		28,000,000.00	1 February 2020	30 April 2020	Short-term borrowings

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(4) Remuneration for key management personnel

		For the six months ended 30 June 2020	For the six months ended 30 June 2019
Remuneration for key management personnel		4,375,318.00	3,843,750.00

(5) Other related party transactions

Interest expense
Related party	Types of transactions	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Group Finance Co., Ltd.	Payment of notes discount interest	3,199,207.88	2,615,234.17
Sinopharm Group Finance Co., Ltd.	Payment of loan interest	1,882,094.57	473,516.87
Sinopharm Group Finance Co., Ltd.	Payment of related parties loan interest	1,311,742.70	-
Sinopharm Group	Payment of entrusted loan interest	1,035,984.12	610,933.32
CNGCC	Payment of entrusted loan interest	513,884.11	641,469.02
Sinopharm Holding (China) Financing Lease Co., Ltd.	Payment of related parties loan interest	44,007.71	-
		7,986,921.09	4,341,153.38
Interest income
Related party	Types of transactions	For the six months ended 30 June 2020	For the six months ended 30 June 2019
Sinopharm Group Finance Co., Ltd.	Deposit interest	17,036.24	145,659.27
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.	Entrusted loan interest	-	1,669,601.71
		17,036.24	1,815,260.98

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(5) Other related party transactions (Continued)

Factoring of accounts receivable without recourse
Interest expense of accounts receivable factoring	For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Accounts receivable factoring	Loss of derecognition	Accounts receivable factoring	Loss of derecognition
Sinopharm Holding (China) Financing Lease Co., Ltd.	-	-	54,078,188.75	1,286,666.17
	-	-	54,078,188.75	1,286,666.17

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties

(1). Accounts Receivable

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Group	50,687,300.30	-	46,076,517.29	-
Accounts receivable	Foshan Chancheng Pharmaceutical Co., Ltd.	37,406,979.38	238,553.41	42,596,155.81	259,530.69
Accounts receivable	Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	27,194,421.44	-	27,194,421.44	-
Accounts receivable	Sinopharm Holding Fujian Co., Ltd.	24,564,532.00	-
Accounts receivable	Sinopharm Holding Hainan Co., Ltd.	15,128,408.68	-	5,916,009.22	63.29
Accounts receivable	Sinopharm Lerentang Medicine Co., Ltd.	7,901,564.52	-	4,077,721.44	-
Accounts receivable	Sinopharm Holding Beijing Co., Ltd.	7,544,342.76	-	2,950,624.87	-
Accounts receivable	Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.	5,223,272.52	-	3,949,661.07	-
Accounts receivable	Sinopharm Holding Hainan Hongyi Co., Ltd.	4,838,994.25	-	3,464,248.49	-
Accounts receivable	Foshan Chancheng Central Hospital	4,520,477.41	26,201.15	3,691,772.59	23,216.99
Accounts receivable	Shenzhen Hengsheng Hospital	4,482,610.82	-	3,335,198.92	-
Accounts receivable	Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	4,430,694.10	-	8,064,119.84	-
Accounts receivable	Sinopharm Health Online Co., Ltd.	4,325,680.30	-	3,890,200.52	-
Accounts receivable	Sinopharm Holding Henan Co., Ltd.	3,451,786.98	-	1,190,109.52	-
Accounts receivable	Sinopharm Holding Wenzhou Co., Ltd.	2,934,124.70	-	699,613.80	-
Accounts receivable	Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.	2,520,942.53	-	1,349,144.61	-
Accounts receivable	Foshan Chanyixing Medicine Development Co Ltd.	2,352,690.27	9,242.84	1,983,599.51	5,790.64
Accounts receivable	Sinopharm Holding Sub Marketing Center Co., Ltd.	2,261,174.30	-	1,849,543.20	-
Accounts receivable	Sinopharm holdings Beijing Huahong co., Ltd.	1,896,720.00	-	2,876,094.02	-
Accounts receivable	Sinopharm Holding Nantong Co., Ltd.	1,827,136.26	-	24,611.76	-
Accounts receivable	Sinopharm Holding Hubei Co., Ltd.	1,823,572.55	-	1,560,416.83	-
Accounts receivable	Sinopharm Holding Shandong Co., Ltd.	1,726,340.63	-	533,285.38	-
Accounts receivable	Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.	1,549,170.77	-	929,255.98	-

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Sichuan Pharmaceutical Co., Ltd.	1,422,404.64	-	1,558,385.72	-
Accounts receivable	Sinopharm Holding Anhui Co., Ltd.	1,312,067.59	-	-	-
Accounts receivable	Sinopharm Holding Shanxi Co., Ltd.	1,125,582.36	-	632,719.72	-
Accounts receivable	Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.	961,580.00	-		-
Accounts receivable	Sinopharm Holding Yangzhou Co., Ltd.	859,981.76	-	841,923.89	-
Accounts receivable	Sinopharm Holding Quanzhou Co., Ltd.	800,883.30	-	-	-
Accounts receivable	Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.	767,237.19	-	-	-
Accounts receivable	Sinopharm Holding Anshun Co., Ltd.	637,442.10	-	-	-
Accounts receivable	Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd.	604,490.32	-	-	-
Accounts receivable	China National Medicines Co., Ltd.	587,735.54	-	985,066.52	-
Accounts receivable	Sinopharm Holding Tianjin Co., Ltd.	576,492.52	-	574,943.68	-
Accounts receivable	Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	547,178.80	-	-	-
Accounts receivable	Sinopharm Holding Jilin Co., Ltd.	523,389.69	-	600,090.20	-
Accounts receivable	Sinopharm Holding Xuzhou Co., Ltd.	467,018.42	-	252,603.52	-
Accounts receivable	Sinopharm Lerentang Tangshan Medicine Co., Ltd.	448,892.95	-	16,848.00	-
Accounts receivable	Sinopharm Holding Yunnan Co., Ltd.	418,872.44	-	298,842.18	-
Accounts receivable	Shanghai Merro Pharmaceutical Co., Ltd.	409,611.20	-	970,572.81	-
Accounts receivable	Sinopharm Holding Zunyi Co., Ltd.	404,579.55	-	3,100.10	-
Accounts receivable	Sinopharm Holding Gansu Co., Ltd.	339,402.09	-	-	-
Accounts receivable	Sinopharm Holding Hunan Co., Ltd.	336,402.11	-	281,427.54	-

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	324,500.00	-	-	-
Accounts receivable	Sinopharm Group Southwest Medicine Co., Ltd.	308,638.68	-	341,949.83	-
Accounts receivable	Sinopharm Holding Dalian Co., Ltd.	287,256.14	-	266,416.32	-
Accounts receivable	Sinopharm Holding Jiangxi Co., Ltd.	269,965.78	-	38,377.68	-
Accounts receivable	Sinopharm Holding Guizhou Co., Ltd.	259,209.16	-	-	-
Accounts receivable	Sinopharm Holding Wuxi Co., Ltd.	215,218.00	-	-	-
Accounts receivable	Sinopharm Holding Anhui Pharmaceutical Co., Ltd.	207,109.13	-	66,754.36	-
Accounts receivable	Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.	193,225.72	-	2,085,296.20	-
Accounts receivable	Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.	187,224.65	-		-
Accounts receivable	Sinopharm Holding Shanxi Co., Ltd.	143,907.52	-	330,160.15	-
Accounts receivable	Sinopharm Holding Chengdu Co., Ltd.	142,358.41	-	50,000.00	-
Accounts receivable	Sinopharm Holding Shanghai Biomedicine Co., Ltd.	135,299.91	-	128,039.96	-
Accounts receivable	China National Pharmaceutical Foreign Trade Corporation	125,181.18	-	-	-
Accounts receivable	Sinopharm Holding Honghe Co., Ltd.	122,165.10	-	6,097.20	-
Accounts receivable	Foshan Chancheng District Shiwan Town Chengnan Community Health Service Center	112,972.02	211.04	-	-
Accounts receivable	Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	111,826.80	-	887,662.72	-
Accounts receivable	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co.,	98,499.49	-	797,577.51	-

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

	Ltd.

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Holding Qinghai Co., Ltd.	95,519.16	-	87,956.16	-
Accounts receivable	Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.	95,312.04	-	-	-
Accounts receivable	Sinopharm Holding Yancheng Co., Ltd.	82,020.80	-	1.00	-
Accounts receivable	Yuxi Sinopharm Medicine Co., Ltd.	73,013.18	-	255,546.14	-
Accounts receivable	Sinopharm Holding Shenyang Co., Ltd.	69,974.00	-	-	-
Accounts receivable	Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd	62,759.00	-	-	-
Accounts receivable	Shanghai Liyi Pharmacy Co.,Ltd.	56,880.00	-	58,919.11	-
Accounts receivable	Sinopharm Group Shanxi Co., Ltd.	54,181.60	-	-	-
Accounts receivable	Sinopharm Holding Tianjin North Medicine Co., Ltd.	52,832.86	-	51,990.40	-
Accounts receivable	Sinopharm Lerentang Hengshui Medicine Co., Ltd.	51,470.83	-	-	-
Accounts receivable	Sinopharm Holding Jiangsu Co., Ltd.	47,649.60	-	34,997.40	-
Accounts receivable	Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd.	43,294.67	-	1,083.00	-
Accounts receivable	Sinopharm Lerentang Baoding Medicine Co., Ltd.	37,033.30	-	-	-
Accounts receivable	Sinopharm Lerentang Chengde Medicine Co., Ltd.	32,759.10	-	80,596.16	-
Accounts receivable	Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	28,590.00	-	-	-
Accounts receivable	Sinopharm Lerentang Xintai Medicine Co., Ltd.	24,680.59	-	-	-
Accounts receivable	Sinopharm Holding Changzhou Co., Ltd.	24,330.20	-	66,932.96	-
Accounts receivable	Foshan Chengnan Fengliaoxing Medicial Hospital Co., Ltd.	23,730.44	108.10	42,637.80	27.04

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd	20,455.00
Accounts receivable	Sinopharm Lerentang Cangzhou Medicine Co., Ltd.	20,455.00	-	-	-
Accounts receivable	Sinopharm Lerentang Handan Medicine Co., Ltd.	20,455.00	-	-	-
Accounts receivable	Sinopharm Holding Chuxiong Co., Ltd.	19,998.00	-	-	-
Accounts receivable	Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd	18,608.00	-	-	-
Accounts receivable	Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.	18,052.35	-	-	-
Accounts receivable	Sinopharm Fengliaoxing Medical Hospital Co., Ltd.	15,919.62	156.25	4,510.30	12.28
Accounts receivable	Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	9,516.00	-	-	-
Accounts receivable	Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.	9,502.90	-	-	-
Accounts receivable	Sinopharm Holding Fuzhou Co., Ltd.	7,624.00	-	63,642.40
Accounts receivable	Sinopharm Holding Heilongjiang Co., Ltd.	7,316.40	-	-	-
Accounts receivable	Foshan Fengliaoxing Pharmaceutical Co., Ltd.	6,912.00	-	9,504.00	-
Accounts receivable	Sinopharm Holding Changxing Zhuanye Pharmacy (Haikou) Co., Ltd.	6,479.35	-	-	-
Accounts receivable	Sinopharm Holding Dalian Hecheng Co., Ltd.	5,034.65	-	156,459.70
Accounts receivable	Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd.	4,916.20	-	-	-
Accounts receivable	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	4,431.95	-	1,519.34	-
Accounts receivable	Sinopharm Holding Zhuanye Pharmacy	3,424.40	-	-	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

	(Dongfang) Co., Ltd.

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Accounts receivable	Sinopharm Holding Jinzhou Co., Ltd.	3,137.50
Accounts receivable	Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd	2,604.30	-	5,861.85	-
Accounts receivable	Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.	1,570.35	-	45,418.42	-
Accounts receivable	Sinopharm Holding Inner Mongolia Co., Ltd.	4.00	-	135,239.04	-
Accounts receivable	Shanghai Guoda Lingyun Pharmacy Co., Ltd.	-	-	249,856.34	-
Accounts receivable	Sinopharm Holding Ulanqab Co., Ltd.	-	-	63,874.55	-
Accounts receivable	Sinopharm Holding Ningde Co., Ltd.	-	-	7,596.00	-
Accounts receivable	Guoyaotang Pharmacy (Shanghai) Co., Ltd.	-	-	2,108.00	-
Accounts receivable	Sinopharm Group Fengliaoxing Traditional Chinese Medical Center Foshan Nanhai Co., Ltd.	-	-	528.87	5.29
Note receivable	Sinopharm Holding Hainan Co., Ltd.	6,891,471.74	-	23,731,011.94	-
Note receivable	Sinopharm Lerentang Medicine Co., Ltd.	1,273,803.95	-	88,613.95	-
Note receivable	Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	600,000.00	-	500,000.00	-
Note receivable	Sinopharm Holding Hainan Hongyi Co., Ltd.	120,500.00	-	1,901,425.37	-
Note receivable	Sinopharm Holding Henan Co., Ltd.	-	-	1,983,858.81	-
Note receivable	Sinopharm Holding Shandong Co., Ltd.	-	-	1,754,593.14	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Note receivable	Sinopharm Holding Nantong Co., Ltd.	-	-	1,610,000.00	-
Note receivable	Sinopharm Holding Guizhou Yitong Medicine Co., Ltd.	-	-	1,432,800.00	-
Note receivable	Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.	-	-	973,888.89	-
Note receivable	Sinopharm Holding Shanxi Co., Ltd.	-	-	617,819.29	-
Note receivable	Sinopharm Holding Yunnan Co., Ltd.	-	-	192,204.79	-
Note receivable	Sinopharm Holding Hubei Bokang Co., Ltd.	-	-	183,485.50	-
Note receivable	Sinopharm Holding Yancheng Co., Ltd.	-	-	134,240.00	-
Note receivable	Sinopharm Group Shanxi Co., Ltd.	-	-	114,659.76	-
Other receivable	Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.	46,334,222.24	46,334,222.24	45,360,333.35	45,360,333.35
Other receivable	Sinopharm Holding Fujian Co., Ltd.	2,607,831.09	-	2,760,764.82	-
Other receivable	Sinopharm Group Medicine Logistic Co., Ltd.	2,315,178.74	-	1,737,147.73	-
Other receivable	Shanghai Shyndec Pharmaceutical Co., Ltd.	983,940.00	-	983,940.00	-
Other receivable	Sinopharm Group Finance Co., Ltd.	916,129.41	-		-
Other receivable	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	545,442.69	600.00	222,724.69	600.00
Other receivable	Sinopharm Holding Shanghai Biomedicine Co., Ltd.	199,600.00	-	-	-
Other receivable	Sinopharm Holding Rizhao Co., Ltd.	174,974.28	-	-	-
Other receivable	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	100,000.00	-	100,000.00	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Other receivable	Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	58,109.60	-	25,374.71	-
Other receivable	Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	48,493.16	-	48,493.16	-
Other receivable	Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd.	37,135.70	-	23,072.42	-
Other receivable	Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	18,500.00	-	18,500.00	-
Other receivable	Shanghai Tongyu Information Technology Co., Ltd.	18,000.00	-	-	-
Other receivable	Wuhan Zhonglian Pharmaceutical Group Co., Ltd.	5,000.00	1,000.00	5,000.00	1,000.00
Other receivable	Sinopharm Group Co., Ltd.	1,980.00	-	-	-
Other receivable	Sinopharm Holding (China) Financing Lease Co., Ltd.	200.00	-	28,696.94	-
Other receivable	China National Scientific Instruments & Materials Imp/Exp Shenzhen Co., Ltd.	2.80	-	-	-
Other receivable	Puer Songmao Medicine Group Co., Ltd.	-	-	6,886,837.25	-
Other receivable	Henan Wanxitang Pharmacy Co., Ltd.	-	-	1,043,144.70	-
Other receivable	Sinopharm Group Co., Ltd	-	-	22,000,000.00	-
Other receivable	Shanghai Dingqun Business Management Consulting Co., Ltd.	-	-	834,914.61	-
Advances to suppliers	Chongqing Yaoyou Pharmaceutical Co., Ltd.	578,559.78	-	742,517.22	-
Advances to suppliers	Chengdu Rongsheng Pharmacy Co., Ltd.	576,000.00	-	555,405.13	-
Advances to suppliers	Sinopharm Holding Sub Marketing Center Co., Ltd.	235,788.49	-	1,204,685.45	-
Advances to suppliers	Sinopharm Wuhan Blood Products Co.,	104,000.00	-	-	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

	Ltd.
Advances to suppliers	Winteam Pharmaceutical Group Ltd.	39,614.00	-	13,972.00	-
Advances to suppliers	Shanghai Tongyu Information Technology Co., Ltd.	23,534.25	-	23,534.25	-
Advances to suppliers	Sinopharm Group Co., Ltd.	21,170.57	-	1,486,554.25	-
Advances to suppliers	Suzhou Erye Pharmaceutical Limited Company	17,446.19	-	33,120.00	-
Advances to suppliers	Jiangxi Erye Medicine Marketing Co., Ltd.	17,258.40	-	2,786,356.93	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Advances to suppliers	Sinopharm Group Guorui Medicine Co., Ltd.	15,082.30	-	399,607.48	-
Advances to suppliers	Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.	14,176.84	-	95,250.00	-
Advances to suppliers	Taishan Xiangranhui Trade Co., Ltd	13,150.03	-	-	-
Advances to suppliers	SINO-TCM Shanghai Medicine&Medicinal Materials Co., Ltd.	10,888.69	-	-	-
Advances to suppliers	Shanghai Shyndec Pharmaceutical Co., Ltd.	9,270.26	-	758,544.00	-
Advances to suppliers	China National Medicines Co., Ltd.	5,180.66	-	204,855.57	-
Advances to suppliers	Sinopharm Holding Beijing Co., Ltd.	2,493.60	-	130,000.00	-
Advances to suppliers	Shenzhen Wanwei Medicine Trading Co., Ltd.	987.00	-	-	-
Advances to suppliers	Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	582.19	-	-	-
Advances to suppliers	Jinzhou Avanc Pharmaceuticals Co., Ltd.	179.85	-	179.85	-
Advances to suppliers	Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.	81.08	-	499,667.68	-
Advances to suppliers	Sinopharm Holding Lianyungang Co., Ltd.	39.87	-	-	-
Advances to suppliers	Sinopharm Holding Lerentang Pharmaceutical Co., Ltd.	0.01	-	0.01	-
Advances to suppliers	Sinopharm Holding Shanxi Co., Ltd.	-	-	3,347,236.65	-
Advances to suppliers	Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.	-	-	599,760.00	-
Advances to suppliers	Shantou Jinshi Powder Injection Co., Ltd.	-	-	137,988.00	-
Advances to suppliers	Anhui Jingfang Pharmaceutical Co., Ltd.	-	-	102,204.59	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

Item	Related Party	30 June 2020		31 December 2019
		Gross carrying amount	Provision for bad debt	Gross carrying amount	Provision for bad debt
Advances to suppliers	Chengdu Institute of Biological Products Co.,Ltd.	-	-	97,469.40	-
Advances to suppliers	Sinopharm Group Yibin Pharmaceuticals Co., Ltd.	-	-	82,486.00	-
Advances to suppliers	China National Pharmaceutical Foreign Trade Corporation	-	-	72,010.67	-
Advances to suppliers	Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.	-	-	65,770.21	-
Advances to suppliers	Guilin Pharmaceutical Co., Ltd.	-	-	54,182.80	-
Advances to suppliers	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	-	-	29,781.49	-
Advances to suppliers	Sinopharm Holding Chengdu Co., Ltd.	-	-	13,164.80	-
Advances to suppliers	Xinjiang Baitong Property Service Co., Ltd.	-	-	13,135.98	-
Advances to suppliers	Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.	-	-	11,436.42	-
Advances to suppliers	China National Pharmaceutical Industry Co., Ltd.	-	-	5,520.00	-
Advances to suppliers	Sinopharm Holding Hubei Co., Ltd.	-	-	4,671.54	-
Advances to suppliers	Sinopharm Holding Hunan Co., Ltd.	-	-	16,961.90	-
Advances to suppliers	Sinopharm Holding Yangzhou Co., Ltd.	-	-	1,315.99	-
Advances to suppliers	Lanzhou Biotechnology Development Co., Ltd.	-	-	600.00	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Sub Marketing Center Co., Ltd.	120,173,481.84	66,808,452.93
Accounts Payable	China National Medicines Co., Ltd.	91,259,317.25	40,426,038.46
Accounts Payable	Sinopharm Holding Shanxi Co., Ltd.	81,827,552.20	8,532,354.18
Accounts Payable	Sinopharm Holding Shanxi Co., Ltd.	72,358,215.68	12,742.54
Accounts Payable	Sinopharm Lerentang Medicine Co., Ltd.	53,638,149.13	1,204.27
Accounts Payable	Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	40,418,319.99	31,723,737.14
Accounts Payable	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	34,235,776.60	17,162,389.74
Accounts Payable	Sinopharm Group Co., Ltd.	28,752,089.94	25,411,711.12
Accounts Payable	Jiangsu Wanbang Pharmacy Marketing Co., Ltd.	26,935,147.94	24,015,667.60
Accounts Payable	Lanzhou Biotechnology Development Co., Ltd.	19,920,000.00	-
Accounts Payable	Sinopharm Holding Shenyang Co., Ltd.	15,155,957.79	2,256,974.94
Accounts Payable	Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	13,009,482.84	1,978,897.26
Accounts Payable	Sinopharm Holding Lerentang Pharmaceutical Co., Ltd.	9,500,296.77	8,188,784.90
Accounts Payable	Sinopharm Holding Lunan Co., Ltd.	9,070,209.41	7,585.91
Accounts Payable	Sinopharm Holding Beijing Co., Ltd.	8,389,754.91	3,396,974.41
Accounts Payable	Shenzhen Main Luck Pharmaceutical Co., Ltd.	8,115,478.69	5,284,838.75

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Jiangsu Co., Ltd.	7,648,208.44	4,857,052.60
Accounts Payable	Sinopharm Yixin Pharmaceutical Co., Ltd.	7,360,539.90	998,247.00
Accounts Payable	Sinopharm Holding Inner Mongolia Co., Ltd.	7,248,086.05	3,997,406.42
Accounts Payable	Shenzhen Wanwei Medicine Trading Co., Ltd.	6,627,502.69	2,809,863.53
Accounts Payable	Sinopharm Holding Fujian Co., Ltd.	6,604,821.83	3,434,291.50
Accounts Payable	Sinopharm Holding Jilin Co., Ltd.	6,560,213.29	-
Accounts Payable	Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	6,140,782.46	219,881.16
Accounts Payable	Sinopharm Holding Changzhou Co., Ltd.	6,037,297.14	3,201,404.20
Accounts Payable	Sinopharm Holding Yangzhou Co., Ltd.	5,344,284.97	6,453,171.03
Accounts Payable	Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.	5,275,605.75	5,951,699.55
Accounts Payable	Chongqing Yaoyou Pharmaceutical Co., Ltd.	5,179,846.98	6,004,066.40
Accounts Payable	China National Pharmaceutical Foreign Trade Corporation	5,039,213.65	929.12
Accounts Payable	Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	4,698,272.86	3,279,216.81
Accounts Payable	Sinopharm Holding Ningxia Co., Ltd.	4,496,631.93	2,354,374.21

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Group Shanxi Medical Devices Co., Ltd.	4,478,870.01	-
Accounts Payable	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	4,445,057.53	4,012,401.17
Accounts Payable	Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	4,338,448.66	3,869,656.10
Accounts Payable	Jinzhou Avanc Pharmaceuticals Co., Ltd.	3,935,385.63	3,885,599.28
Accounts Payable	Yichang Humanwell Pharmaceutical Co., Ltd.	3,769,048.91	1,251,702.41
Accounts Payable	Sinopharm Holding Shandong Co., Ltd.	3,630,609.49	207,660.72
Accounts Payable	Winteam Pharmaceutical Group Ltd.	3,430,150.14	4,314,603.53
Accounts Payable	Tibet Yaoyou Medicines Co.,Ltd.	3,352,711.65	998,498.23
Accounts Payable	Sinopharm Holding Hunan Co., Ltd.	3,166,359.50	-
Accounts Payable	Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	3,034,895.83	6,618,649.91
Accounts Payable	China Otsuka Pharmaceutical Co., Ltd.	2,998,332.95	2,598,401.27
Accounts Payable	Sinopharm Holding Wuxi Co., Ltd.	2,963,866.16	1,235,593.35
Accounts Payable	Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd	2,626,554.95	865,521.85
Accounts Payable	Sinopharm Holding Pingdingshan Co., Ltd.	2,289,459.59	5,316,788.30
Accounts Payable	Foshan Fengliaoxing Pharmaceutical Co., Ltd.	2,179,406.28	848,927.64

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm holdings Beijing Huahong co., Ltd.	2,051,128.31	360,959.74
Accounts Payable	Shanghai International Pharmaceutical Trade Co., Ltd.	2,024,025.63	374,634.80
Accounts Payable	Jinzhou Avanc Medicine Co., Ltd.	1,926,323.20	214,605.00
Accounts Payable	Sinopharm Holding Tongliao Co., Ltd.	1,912,767.29	540,694.90
Accounts Payable	Sinopharm Holding Henan Co., Ltd.	1,887,636.26	2,970,565.27
Accounts Payable	Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.	1,783,082.44	47,388.50
Accounts Payable	Sinopharm Holding Xiamen Co., Ltd.	1,590,974.03	1,408,085.10
Accounts Payable	Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.	1,511,865.57	1,021,380.41
Accounts Payable	Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.	1,417,221.04	2,341,325.08
Accounts Payable	Shanghai Shyndec Pharmaceutical Co., Ltd.	1,410,103.23	1,059,812.38
Accounts Payable	Sinopharm Jiankun (Beijing) Medicine Co., Ltd.	1,312,616.00	-
Accounts Payable	Sinopharm Holding Jinzhou Co., Ltd.	1,303,291.11	822,337.04
Accounts Payable	Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.	1,177,501.55	606,763.45
Accounts Payable	Sichuan Hexin Pharmaceutical Co., Ltd.	1,162,312.80	1,801,110.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Wuhan Zhonglian Pharmaceutical Group Co., Ltd.	1,099,070.69	837,017.83
Accounts Payable	Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.	1,089,870.50	379,632.11
Accounts Payable	Sinopharm Liaoning Medical Equipment Co., Ltd.	1,036,603.40	119,902.21
Accounts Payable	Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd.	1,007,522.98	-
Accounts Payable	China National Pharmaceutical Industry Co., Ltd.	972,820.58	736,025.62
Accounts Payable	Sinopharm Holding Hubei Co., Ltd.	952,392.64	13,844,018.68
Accounts Payable	Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.	838,469.70	1,565,600.00
Accounts Payable	Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.	831,008.11	52,819.07
Accounts Payable	Sinopharm Holding Jinan Co., Ltd.	747,636.91	58,217.26
Accounts Payable	Sinopharm Holding Tianjin Co., Ltd.	733,831.25	11,995.37
Accounts Payable	Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.	698,549.00	1,209,530.52
Accounts Payable	Fujian Chentian Jinling Pharmaceutical Co., Ltd.	664,437.49	639,663.90
Accounts Payable	Shanghai Transfusion Technology Co., Ltd.	653,900.00	396,613.27
Accounts Payable	Jiangxi Erye Medicine Marketing Co., Ltd.	650,464.07	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.	610,282.01	502,426.41
Accounts Payable	Shanghai Chaohui Pharmaceutical Co., Ltd.	607,846.33	807,366.46
Accounts Payable	Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd.	600,385.66	811,039.59
Accounts Payable	Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.	594,531.01	490,398.43
Accounts Payable	Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	530,927.04	1,400,680.42
Accounts Payable	Hunan Dongting Pharmaceutical Co., Ltd.	513,393.98	773,553.49
Accounts Payable	Sinopharm Holding Quanzhou Co., Ltd.	456,859.73	16,017.25
Accounts Payable	Sinopharm Holding Dalian Co., Ltd.	434,085.00	137,210.25
Accounts Payable	Sinopharm Holding Hulun Buir Co., Ltd.	433,847.47	428,928.43
Accounts Payable	Sinopharm Holding Heilongjiang Co., Ltd.	422,789.44	711,868.35
Accounts Payable	Shanghai Merro Pharmaceutical Co., Ltd.	416,980.69	230,437.61
Accounts Payable	Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.	390,363.18	464,076.75
Accounts Payable	Sinopharm Group Guorui Medicine Co., Ltd.	373,440.49	661,397.90
Accounts Payable	Suzhou Erye Pharmaceutical Limited Company	373,337.63	623,042.39
Accounts Payable	Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.	356,618.41	131,717.74

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.	356,275.20	285,869.50
Accounts Payable	Sinopharm Holding Anhui Huaning Medicine Co., Ltd.	337,831.59	1,190,250.52
Accounts Payable	Sinopharm Holding Fuzhou Co., Ltd.	324,283.55	802,182.13
Accounts Payable	Jiangsu Huanghe Pharmaceutical Co., Ltd.	308,163.72	433,724.83
Accounts Payable	Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.	307,680.02	106.76
Accounts Payable	Sinopharm Group Yibin Pharmaceuticals Co., Ltd.	294,305.02	461,848.50
Accounts Payable	Chengdu Institute of Biological Products Co.,Ltd.	280,800.00	561,600.00
Accounts Payable	Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co., Ltd.	270,000.00	-
Accounts Payable	Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.	267,744.38	132,493.57
Accounts Payable	Sinopharm Chuankang Pharmaceutical Co., Ltd.	266,989.00	735,729.88
Accounts Payable	Sinopharm Holding Putian Co., Ltd.	258,736.14	225,437.84
Accounts Payable	Sinopharm Holding Yancheng Co., Ltd.	252,410.93	688,947.61
Accounts Payable	Anhui Jingfang Pharmaceutical Co., Ltd.	233,647.54	334,741.95
Accounts Payable	Sinopharm Holding Anshan Co., Ltd.	224,584.88	-
Accounts Payable	Sinopharm Guangdong Global Pharmaceutical Co., Ltd.	194,347.33	260,408.68

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Bayannur Co., Ltd.	182,323.60	169,509.70
Accounts Payable	Chengdu List Pharmaceutical Co.,Ltd.	178,872.89	178,872.89
Accounts Payable	Sinopharm Xinjiang Pharmaceutical Co., Ltd.	173,958.05
Accounts Payable	Shenyang Hongqi Pharmaceutical Co., Ltd.	173,609.93	315,137.43
Accounts Payable	Sinopharm Holding Puer Co., Ltd.	169,639.63	179,849.10
Accounts Payable	Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.	160,886.55	3,905.63
Accounts Payable	Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.	160,565.05	-
Accounts Payable	Sinopharm Holding Dezhou Co., Ltd.	152,860.74	172,217.78
Accounts Payable	The Fourth Pharmaceutical Co., Ltd. of Zhonglian Group	152,382.89	92,151.64
Accounts Payable	Sinopharm Sichuan Pharmaceutical Co., Ltd.	144,648.00	-
Accounts Payable	Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd.	143,986.57	118,519.83
Accounts Payable	Sinopharm Holding Changsha Co., Ltd.	142,713.26	288,319.19
Accounts Payable	Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.	132,136.11	-
Accounts Payable	Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.	103,488.00	40,320.27

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Shantou Jinshi Powder Injection Co., Ltd.	103,301.59	124,450.25
Accounts Payable	Chengdu Rongsheng Pharmacy Co., Ltd.	100,794.89	203,000.02
Accounts Payable	Sinopharm Holding Taizhou Co., Ltd.	99,652.12	55,482.20
Accounts Payable	Huayi Pharmaceutical Co., Ltd.	99,584.00	224,064.00
Accounts Payable	Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.	98,458.48	31,024.85
Accounts Payable	China Medical Equipment Shandong Co., Ltd.	95,395.36	216,198.77
Accounts Payable	Sinopharm Holding Anhui Co., Ltd.	91,994.14	149,847.70
Accounts Payable	Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd.	89,985.94	224,753.25
Accounts Payable	Foshan Dezhong Pharmaceutical Co., Ltd.	88,973.76	73,793.76
Accounts Payable	Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd.	67,461.47	33,081.14
Accounts Payable	Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.	63,643.77	53,102.76
Accounts Payable	Changchun Changsheng Gene Pharmaceutical Co., Ltd.	58,955.67	3,017.20
Accounts Payable	Sinopharm Device (Guangdong) Medicial Technology Co., Ltd.	56,096.28	-
Accounts Payable	Sinopharm (Dalian) Medicial Device Co., Ltd.	52,500.00	-
Accounts Payable	Sinopharm Holding Yangzhou Biological Products Co., Ltd.	48,205.83	116,246.55
Accounts Payable	Sinopharm Holding Baotou Co., Ltd.	43,485.00	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Rizhao Co., Ltd.	38,983.53	6,346.44
Accounts Payable	Sinopharm Holding Ulanqab Co., Ltd.	36,092.20	33,782.58
Accounts Payable	Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.	34,890.99	164,471.27
Accounts Payable	Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd.	29,912.02	30,959.02
Accounts Payable	Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.	23,091.24	23,207.23
Accounts Payable	Sinopharm Holding Hainan Hongyi Co., Ltd.	17,043.48	-
Accounts Payable	Sinopharm Group Shanghai Medicine Device Co., Ltd.	16,533.75	16,533.75
Accounts Payable	Guilin Pharmaceutical Co., Ltd.	14,850.00	1,210.43
Accounts Payable	Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd.	14,075.00	-
Accounts Payable	Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd.	11,277.40	-
Accounts Payable	Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.	10,720.81	34,781.93
Accounts Payable	Sinopharm Holding Nanping Newforce Co., Ltd.	9,629.90	-
Accounts Payable	Sinopharm Holding Zhejiang Co., Ltd.	6,680.18	-
Accounts Payable	Sinopharm Group Anhui Medical Devices Co., Ltd.	5,200.00	5,200.00
Accounts Payable	Sinopharm Holding Dalian Hecheng Co., Ltd.	4,002.10	16,053.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Weiqida Pharmaceutical Co., Ltd.	3,937.70	-
Accounts Payable	Sinopharm Nutraceuticals (Shanghai) Co., Ltd.	3,017.25	-
Accounts Payable	Sinopharm Holding Shanxi Jincheng Co., Ltd.	2,233.33	2,061.51
Accounts Payable	Sinopharm Holding Ordos Co., Ltd.	1,771.20	1,771.20
Accounts Payable	Sinopharm Holding Zhangzhou Co., Ltd.	1,172.00	1,046.02
Accounts Payable	Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd.	1,113.85	1,113.85
Accounts Payable	Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	534.20	534.20
Accounts Payable	Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.	127.72	745.98
Accounts Payable	Sinopharm Holding Liaocheng Co., Ltd.	174.00	174.00
Accounts Payable	Chongqing Haisiman Pharmaceutical Co., Ltd.	56.82	56.82
Accounts Payable	Sinopharm Holding Jilin Province Medicial Device Co., Ltd.	47.50	-
Accounts Payable	Sinopharm Holding Chongqing Co., Ltd.	45.00	45.00
Accounts Payable	Sinopharm Holding Suzhou Co., Ltd.	2.00	13,663.79
Accounts Payable	Sinopharm Holding Xinyu Co., Ltd.	0.01	0.01
Accounts Payable	Sinopharm Industry Investment Co., Ltd.	-	11,280.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Accounts Payable	Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd.	-	1,494,044.17
Accounts Payable	Sinopharm Holding Jiangxi Co., Ltd.	-	38,021.19
Accounts Payable	Sinopharm Holding Tonghua Co., Ltd.	-	4,200.00
Accounts Payable	Sinopharm Holding Lianyungang Co., Ltd.	-	156,220.00
Accounts Payable	Sinopharm Hebei Medical Instrument Co., Ltd.	-	10,540.97
Accounts Payable	Sinopharm Wuhan Blood Products Co., Ltd.	-	11,600.00
Accounts Payable	Sinopharm Holding Shanghai Biomedicine Co., Ltd.	-	216,027.00
Notes Payable	Sinopharm Lerentang Medicine Co., Ltd.	117,612,512.46	81,499,250.53
Notes Payable	Sinopharm Holding Sub Marketing Center Co., Ltd.	90,167,246.78	147,387,064.99
Notes Payable	Sinopharm Holding Shanxi Co., Ltd.	77,969,962.18	87,095,490.10
Notes Payable	Sinopharm Holding Shenyang Co., Ltd.	45,167,585.57	94,318,580.73
Notes Payable	Sinopharm Holding Shanxi Co., Ltd.	43,646,445.40	26,203,787.20
Notes Payable	Jiangsu Wanbang Pharmacy Marketing Co., Ltd.	41,366,897.85	31,100,216.05
Notes Payable	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	38,164,453.57	41,655,560.15
Notes Payable	China National Medicines Co., Ltd.	14,606,754.12	40,093,511.44

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Notes Payable	Sinopharm Holding Inner Mongolia Co., Ltd.	10,864,152.73	29,902,234.66
Notes Payable	Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.	9,797,290.00	-
Notes Payable	Sinopharm Holding Fujian Co., Ltd.	9,645,181.17	12,080,590.70
Notes Payable	Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.	7,374,773.65	7,047,566.52
Notes Payable	Lanzhou Biotechnology Development Co., Ltd.	6,240,000.00	17,940,000.00
Notes Payable	Sinopharm Holding Yangzhou Co., Ltd.	6,000,000.00	-
Notes Payable	Chengdu Rongsheng Pharmacy Co., Ltd.	4,634,770.00	2,025,000.00
Notes Payable	Sinopharm Holding Xiamen Co., Ltd.	4,073,195.26	5,780,970.63
Notes Payable	Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.	4,032,159.76	-
Notes Payable	Sinopharm Holding Hunan Co., Ltd.	3,286,838.68	3,406,062.97
Notes Payable	Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.	2,681,873.88	5,598,131.95
Notes Payable	China Otsuka Pharmaceutical Co., Ltd.	2,394,901.84	-
Notes Payable	Shenzhen Wanwei Medicine Trading Co., Ltd.	2,307,798.00	5,148,789.36
Notes Payable	Sinopharm Holding Ningxia Co., Ltd.	2,302,373.05	1,500,000.00
Notes Payable	Yichang Humanwell Pharmaceutical Co., Ltd.	1,967,332.00	1,313,384.00

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Notes Payable	Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd	1,961,748.67	-
Notes Payable	Sinopharm Group Shanxi Medical Devices Co., Ltd.	1,588,743.20	-
Notes Payable	Sinopharm Holding Jinan Co., Ltd.	1,465,064.58	950,000.00
Notes Payable	Sinopharm Holding Jinzhou Co., Ltd.	1,407,213.30	2,315,289.23
Notes Payable	Sinopharm Holding Yancheng Co., Ltd.	1,142,284.73	544,347.21
Notes Payable	Sinopharm Holding Tianjin Co., Ltd.	1,141,081.57	-
Notes Payable	Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.	1,108,686.91	-
Notes Payable	Shenzhen Main Luck Pharmaceutical Co., Ltd.	1,031,461.20	2,360,877.27
Notes Payable	Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.	966,331.82	678,672.16
Notes Payable	Sinopharm Holding Dalian Co., Ltd.	897,426.65	991,971.09
Notes Payable	Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.	774,193.10	267,443.65
Notes Payable	Chongqing Yaoyou Pharmaceutical Co., Ltd.	676,214.00	4,371,561.40
Notes Payable	Sinopharm Holding Quanzhou Co., Ltd.	635,529.55	45,117.50
Notes Payable	Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.	631,274.79	1,033,600.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Notes Payable	Sinopharm Liaoning Medical Equipment Co., Ltd.	523,200.00	-
Notes Payable	Sinopharm Guangdong Global Pharmaceutical Co., Ltd.	383,537.18	428,786.24
Notes Payable	Jinzhou Avanc Medicine Co., Ltd.	372,735.00	-
Notes Payable	Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.	372,559.00	118,972.30
Notes Payable	Foshan Winteam Pharmaceutical Group Ltd.	259,427.66	-
Notes Payable	Shanghai Shyndec Pharmaceutical Co., Ltd.	219,996.00	-
Notes Payable	Sinopharm Jiankun (Beijing) Medicine Co., Ltd.	202,320.00	-
Notes Payable	Shanghai Transfusion Technology Co., Ltd.	201,200.00	311,860.00
Notes Payable	Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.	172,225.00	169,221.60
Notes Payable	Sinopharm Holding Changsha Co., Ltd.	155,134.80	171,641.40
Notes Payable	Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.	152,350.02	-
Notes Payable	Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	144,339.00	1,087,111.04
Notes Payable	Sinopharm Wuhan Blood Products Co., Ltd.	140,400.00	196,400.00
Notes Payable	Sinopharm Holding Nanping Newforce Co., Ltd.	111,897.11	-
Notes Payable	Shenyang Hongqi Pharmaceutical Co., Ltd.	109,000.00	211,250.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Notes Payable	Sinopharm Holding Anshan Co., Ltd.	82,132.80	-
Notes Payable	Sinopharm Yixin Pharmaceutical Co., Ltd.	71,648.00	107,472.00
Notes Payable	Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	40,118.40	529,699.96
Notes Payable	Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.	31,968.00	-
Notes Payable	Sinopharm Holding Lunan Co., Ltd.	-	10,658,369.14
Notes Payable	Sinopharm Holding Changzhou Co., Ltd.	-	2,020,000.00
Notes Payable	Sinopharm Holding Heilongjiang Co., Ltd.	-	218,952.73
Notes Payable	Guoyao Lerentang Hebei Medical Device Supply Chain Management Co., Ltd.	-	46,593.60
Notes Payable	Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.	-	8,195.00
Notes Payable	Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd.	-	832,991.60
Notes Payable	Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.	-	349,459.75
Notes Payable	Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.	-	108,404.81
Notes Payable	Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.	-	140,400.00
Notes Payable	Sinopharm Holding Heilongjiang Co., Ltd.	-	320,459.22

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Other Payable	Sinopharm Holding Yangzhou Co., Ltd.	5,588,571.48	3,725,714.32
Other Payable	Sinopharm Group Medicine Logistic Co., Ltd.	5,265,920.10	5,755,677.01
Other Payable	Sinopharm Group Co., Ltd.	4,243,127.65	4,497,592.00
Other Payable	Sinopharm Group Shanghai Co., Ltd.	3,693,530.18	1,660,431.38
Other Payable	Zhang Zhenfang	3,516,400.22	3,114,999.95
Other Payable	Nanjing Yuanguang Trading Co., Ltd.	1,854,321.33	-
Other Payable	China National of Traditional&Herbal Medicine Co., Ltd.	1,300,000.00	1,300,000.00
Other Payable	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	965,215.60	-
Other Payable	Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.	673,682.22	-
Other Payable	Sinopharm Health Online Co., Ltd.	409,813.16	3,008,259.98
Other Payable	Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.	363,922.58	357,949.73
Other Payable	Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd.	241,760.00	241,760.00
Other Payable	Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.	235,405.65	-
Other Payable	Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited	102,195.75	102,194.25

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Other Payable	Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	50,917.44	-
Other Payable	Pingdingshan Pusheng Pharmaceutical Co., Ltd.	41,840.09	-
Other Payable	Sinopharm Holding Sub Marketing Center Co., Ltd.	38,390.86	38,236.19
Other Payable	Chongqing Yaoyou Pharmaceutical Co., Ltd.	5,667.20	-
Other Payable	Xinjiang Baitong Property Service Co., Ltd.	4,749.45	-
Other Payable	Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.	6.28	-
Other Payable	Sinopharm Group Medicine Logistic Co., Ltd. Guangzhou Branch	-	19,950.00
Other Payable	Sinopharm Pharmaceutical Logistics Co., Ltd.	-	20,825.20
Other Payable	Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.	-	10,023.90
Other Payable	China Medicine Group Chongqing Medicine Design Institute	-	5,173,229.10
Other Payable	Foshan Chancheng Central Hospital	-	265,014.68
Other Payable	Gu Jinhua	-	2,054.77
Contract liability	Sinopharm Holdings Beijing Huahong Co., Ltd.	429,486.31	-
Contract liability	Sinopharm Holding Yunnan Co., Ltd.	71,884.05	105,172.77
Contract liability	Sinopharm Holding Wuhu Co., Ltd.	50,943.17	-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Contract liability	Sinopharm Holding Chongqing Co., Ltd.	48,407.62	755.62
Contract liability	Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.	36,287.01	-
Contract liability	Sinopharm Holding Gansu Co., Ltd.	21,960.00	22,457.66
Contract liability	Sinopharm Holding Hulun Buir Co., Ltd.	5,119.00	-
Contract liability	Dongyuan Accord Pharmaceutical Chain Co., Ltd.	4,554.28	-
Contract liability	Sinopharm Holding Jiangxi Co., Ltd.	83.60	83.60
Contract liability	Sinopharm Holding Dalian Hecheng Co., Ltd.	-	627.20
Contract liability	Sinopharm Holding Inner Mongolia Co., Ltd.	-	5,400.00
Contract liability	Sinopharm Holding Huaian Co., Ltd.	-	319,996.00
Contract liability	Sinopharm Holding Guizhou Medical Device Co., Ltd.	-	8,301.54
Contract liability	Sinopharm Group Guangxi Medical Device Co., Ltd.	-	21,177.25
Contract liability	Sinopharm Holding Nantong Co., Ltd.	-	19,051.49
Contract liability	Sinopharm Holding Hunan Co., Ltd.	-	10,358.80
Contract liability	Sinopharm Holding Quanzhou Co., Ltd.	-	19.40
Contract liability	Sinopharm Group Guangdong Medicine Device Co., Ltd.	-	1,231.90
Contract liability	China National Pharmaceutical Foreign Trade Corporation	-	851.59

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

Item	Related Party	30 June 2020	31 December 2019
Contract liability	Sinopharm Holding Chengdu Co., Ltd.	-	25,179.04
Contract liability	Sinopharm Holding Hubei Hongyuan Co., Ltd.	-	47,019.75
Contract liability	Sinopharm Holding Guizhou Co., Ltd.	-	57,761.18
Contract liability	Sinopharm Holding Wenzhou Co., Ltd.	-	575.60

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

7. Commitments of Related Party

Lease commitmentRent-in

Related Party	30 June 2020	31 December 2019
Sinopharm Group Shanghai Co., Ltd.	-	7,530,062.22
Beijing Huafang Investment Co., Ltd.	-	310,950.48

Rent-out

Related Party	30 June 2020	31 December 2019
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited	267,025.50	364,266.00
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.	159,523.81	1,116,666.67
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.	-	285,714.30
China National Medicines Co., Ltd.	-	50,400.00

8. Others

Related Party	30 June 2020	31 December 2019
Short-term Borrowing
Sinopharm Group Finance Co., Ltd.	298,750,780.24	39,993,943.52
Cash deposite within a related party
Sinopharm Group Finance Co., Ltd.	71,455,017.29	549,033.33
Entrusted loan
CNPGC	-	31,638,984.25
Other non-current liabilities
Sinopharm Group Co., Ltd.	-	35,061,743.31
Lease liability
Lerentang Investment Group Co., Ltd.	9,415,755.16	12,422,681.90
Guangdong Jiyuantang Development Co., Ltd.	4,050,018.52	4,933,890.46
Sinopharm Holding Yangzhou Co., Ltd.	1,852,606.87	3,666,055.90
Sinopharm Holding (China) Financing Lease Co., Ltd.	1,043,906.67	3,861,708.94

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XII. Related party relationships and transactions (Continued)

8. Others (Continued)

Related Party	30 June 2020	31 December 2019
Lease liability
Sinopharm Xinjiang Pharmaceutical Co., Ltd.	757,941.63	741,876.94
Gu Haiqun	517,801.56	605,072.66
Beijing Huafang Investment Co., Ltd.	449,827.62	-
Sinopharm Group Co., Ltd.	426,199.31	674,745.68
Sinopharm Holding Beijing Co., Ltd.	388,595.21	633,695.74
Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.	381,995.82	424,359.32
Shenzhen Jiufeng Investment Co., Ltd.	197,102.02	192,924.42
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.	180,430.28	357,046.87
Hangzhou Xihu Business Group Corporation	146,420.86	-
China National Medicines Co., Ltd.	142,071.07	281,139.25
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.	79,826.44	552,810.74
Sinopharm Holding Rizhao Co., Ltd.	-	295,085.71
Taishan Xiangranhui Trade Co., Ltd.	-	2,173,975.05
Gu Jinhua	-	1,956,440.82
Shenyang Pharmaceutical Co., Ltd.	-	1,481,945.76
Linyi Medical Group Co., Ltd.	-	6,347,349.41
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.	-	41,664,494.99
Puer Songmao Medicine Group Co., Ltd.	-	17,247,410.11

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XIII. Commitments and contingencies

1. Commitments

(1)	Capital commitments
	Capital expenditures contracted for at the balance sheet date but not recognized in balance sheet are analyzed as follows:
		30 June 2020	31 December 2019
		RMB‘0,000	RMB‘0,000
	Buildings, machinery and equipment	69.43	42.16
	Investment commitments	-	6,000.00
		69.43	6042.16

2. Contingencies

As of the balance sheet date, there were no contingencies that the Group was required to disclose.

XIV Events after the balance sheet date

On 7 July 2020, the Company held the 18th meeting of the 8th board of directors, deliberated and passed the proposal onGuoda Pharmacy's plan to purchase 100% equity of Chengda Fangyuan Pharmaceutical Group Co., Ltd., and agreed thatGuoda pharmacy, a subsidiary of the Company, to conduct the deal.

On 24 July 2020, Guoda pharmacy successfully obtained the 100% equity transfer project of Chengda Fangyuan GroupCo., Ltd. ("Chengda Fangyuan") with the price of RMB1,860 million, and signed the Property Right Transaction Contractwith Liaoning Chengda Co., Ltd.

Guoda pharmacy completed the payment of the equity purchase, then, on 30 July 2020, it completed the industrial andcommercial registration change of the 100% equity of Chengda Fangyuan as well as performed the delivery of transferredequity.

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XV Other significant events

1. Segment reporting

Operating segments

For management purposes, the Group is organized into business units based on its products and services and has threereportable operating segments as follows:

(1) The Head Office, which is mainly engaged in the investment and management of businesses;

(2) Pharmaceutical distribution segment, which is mainly engaged in the distribution of medicine and pharmaceutical

products to customers;

(3) Retail pharmacy segment, which is the management of the operation of Guoda Pharmacy.

Management monitors the results of the Group’s operating segments separately for the purpose of making decisionsabout resource allocation and performance assessment. Segment performance is evaluated based on reportablesegment profit, which is measured consistently with the Group’s profit before tax.

Inter-segment sales and transfers are transacted with reference to the selling prices used in the transactions carried outwith third parties at the then prevailing market prices.

Notes to financial statements (Continued)

For the six months ended 30 June 2019

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

XV. Other significant events (Continued)

1. Segment reporting (Continued)

Operating segments (Continued)

Operating segment information as at and for the semi year ended

	Head Office	Pharmaceutical distribution	Pharmaceutical retail	Elimination between segments	Total
Principal operations income	-	18,911,461,205.70	8,455,594,668.90	(422,605,176.57)	26,944,450,698.03
Principal cost of sales	-	(17,753,220,383.08)	(6,624,161,637.21)	424,114,538.75	(23,953,267,481.54)
Income from investments in associates	133,549,495.38	(493,808.35)	549,217.13	-	133,604,904.16
Net profit	764,789,368.41	404,743,743.43	248,037,573.90	(611,358,143.21)	806,212,542.53
Total assets	13,453,139,385.58	21,523,733,888.33	13,495,579,732.65	(10,802,602,803.26)	37,669,850,203.30
Total liabilities	(2,842,410,769.10)	(15,877,760,586.16)	(8,139,486,080.53)	5,207,615,567.81	(21,652,041,867.98)

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XVI Notes to key items of the company financial statements

1. Accounts receivable

	The accounts receivable by category are analyzed below:
		30 June 2020							31 December 2019
		Gross carrying amount			Provision for bad debt		Book value		Gross carrying amount			Provision for bad debt			Book value
		Amount	Proportion		Amount	Proportion			Amount	Proportion		Amount	Proportion
	Items for which provision for bad debt is recognised separately	22,884,550.79	3.57%		334,294.70	1.46%	22,550,256.09		10,352,439.53	1.61%		334,294.70	3.23%		10,018,144.83
	Items for which provision for bad debt is recognized by group (credit risk characteristics)	618,324,685.19	96.43%		-	0.00%	618,324,685.19		561,526,639.82	98.19%		-	0.00%		561,526,639.82
		641,209,235.98	100.00%		334,294.70	0.05%	640,874,941.28		571,879,079.35	100.00%		334,294.70	0.06%		571,544,784.65

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

	At 30 June 2020, accounts receivable that are individually assessed for provisions are as follows:
	Debtor’s name	Carrying amount	Bad debt provision	Rate	Assessment for impairment
	Receivables from subsidiaries of the Group	22,550,256.09	-	0.00%	Internal related parties, with lower-tier recovery risk
	Client A	323,044.50	323,044.50	100.00%	Debtor had mismanagement, subject to serious financial difficulties and has been listed as discredited judgment debtor that will probably go bankrupt or restructuring
	Client B	11,250.20	11,250.20	100.00%	Debtor had mismanagement, subject to serious financial difficulties, and the expected recoverability is very low
		22,884,550.79	334,294.70

	Provision for bad debts of accounts receivable according to the general model of expected credit loss:
				30 June 2020
				Estimated default amount		Expected credit loss in entire lifetime	Expected credit loss rate
		Within 1 year		618,250,317.87		-	0.00%
		1 to 2 years		74,367.32		-	0.00%
				618,324,685.19		-	0.00%

	The accounts receivable for which the Company recognised provision for bad debts using the aging analysis method are presented as follows:
							30 June 2020
		Within 1 year					640,800,573.96
		1 to 2 years		-		-	408,662.02
						-	641,209,235.98

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

Bad debt provision for the current period as follows:

		Opening balance	Increases during the period	Reversal during the period	Write-off during the period	Other	Closing balance
	Bad debt provision	334,294.70	-	-	-	-	334,294.70

	On 30 June 2020, the top five accounts receivable by customer are summarised below:
					Amount		% of the total accounts receivable		Bad debt provision amount
	The top five accounts receivable total		188,086,430.88			29.33%		-

Accounts receivable derecognised due to transfer of financial assets was as follows:

From January to June 2020, the Company factored a small portion of accounts receivable at amortised cost to financialinstitutions. The amount of accounts receivable derecognised was RMB156,689,648.43 (from January to June 2019:

RMB183,988,184.79), and the amount of loss recognised through Investment income was RMB1,526,968.25 (from Januaryto June 2019: RMB2,178,875.28).

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables

		30 June 2020	31 December 2019
	Dividend receivable	5,664,636.60	834,914.61
	Other receivables	1,663,704,577.00	1,928,106,680.77
		1,669,369,213.60	1,928,941,595.38

（1）Dividend receivable

		30 June 2020	31 December 2019
	Shanghai Dingqun	-	834,914.61
	Sinopharm Yanfeng	5,664,636.60	-
		5,664,636.60	834,914.61

（2）Other receivables

	Category of other receivables by nature is as follows:
	Nature	30 June 2020	31 December 2019
	Amounts due from subsidiaries	1,679,099,338.43	1,913,299,778.33
	Receivable of equity transactions	8,980,000.00	8,980,000.00
	Deposit	853,389.88	840,318.90
	Others	30,152,718.65	59,391,430.54
		1,719,085,446.96	1,982,511,527.77

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables (Continued)

（2） Other receivables (Continued)

Changes in bad debt provision for the 12-month expected credit losses and lifetime expected credit losses on otherreceivables are as follows:

		Stage 1	Stage 2	Stage 3
	Bad debt	Expected credit losses over the next 12 months	Entire lifetime expected credit losses(No credit impairment occurred)	Entire lifetime expected credit losses(Credit impairment occurred)	Total
	Balance at 1 January 2020	-	64,513.65	54,340,333.35	54,404,847.00
	Balance at 1 January 2020 during the period	-	-	-	-
	Provisions during the period	-	3,464.45	973,888.89	977,353.34
	Reversal during the period	-	1,330.38	-	1,330.38
	Balance at 30 June 2020	-	66,647.72	55,314,222.24	55,380,869.96

The aging analysis of other receivables was as follows:

		30 June 2020
	Within 1 year	1,664,340,378.92
	1 to 2 years	449,785.31
	2 to 3 years	45,205,040.92
	Over 3 years	9,090,241.81
	Total	1,719,085,446.96

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

2. Other receivables (Continued)

（2） Other receivables (Continued)

Bad debt provision for the current period as follows:

		Opening balance	Increases during the peried	Reversal during the period	Write-off during the period	Other	Closing balance
	Bad debt provision	54,404,847.00	977,353.34	1,330.38	-	-	55,380,869.96

As at 30 June 2020，the accumulated top five other receivables are analysed below:
	Nature	Amount	Age	% of total amount	Bad debt provision
Sinopharm Guangxi	Entrusted borrowings	382,463,823.03	Within 1 year	22.25%	-
South Pharma & Trade	Entrusted borrowings	161,176,813.92	Within 1 year	9.38%	-
Sinopharm Dongguan	Entrusted borrowings	117,129,675.11	Within 1 year	6.81%	-
Sinopharm Zhanjiang	Entrusted borrowings	110,121,916.63	Within 1 year	6.41%	-
Sinopharm Meizhou	Entrusted borrowings	76,785,009.05	Within 1 year	4.47%	-
		847,677,237.74		49.31%	-

3. Long-term equity investments

		30 June 2020			31 December 2019
		Original value	Bad debt provision	Carrying amount	Original value	Bad debt provision	Carrying amount
	Investments in subsidiaries	5,614,677,427.58	-	5,614,677,427.58	5,614,677,427.58	-	5,614,677,427.58
	Investments in associates	2,155,000,914.60	39,930,000.00	2,115,070,914.60	2,124,009,098.25	39,930,000.00	2,084,079,098.25
		7,769,678,342.18	39,930,000.00	7,729,748,342.18	7,738,686,525.83	39,930,000.00	7,698,756,525.83

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

3. Long-term equity investments (Continued)

(1)	Subsidiaries
		31 December 2019		Increases		Decrease		30 June 2020		Amount of provision for impairment
	Sinopharm Jianmin	60,054,911.04		-		-		60,054,911.04		-
	Sinopharm Shenzhen Material	15,450,875.93		-		-		15,450,875.93		-
	Shenzhen Logistics	5,019,062.68		-		-		5,019,062.68		-
	Sinopharm Guangzhou	3,588,689,716.80		-		-		3,588,689,716.80		-
	Sinopharm Guangxi	525,456,951.07		-		-		525,456,951.07		-
	Sinopharm Yanfeng	38,207,800.00		-		-		38,207,800.00		-
	Guoda Pharmacy	1,361,800,110.06		-		-		1,361,800,110.06		-
	Sinopharm Accord Medicial Supply Chain (Shenzhen) Co., Ltd.	19,998,000.00		-		-		19,998,000.00		-
		5,614,677,427.58		-		-		5,614,677,427.58		-

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

3. Long-term equity investments (Continued)

(2)

Associates

Changes in the period

Opening balance

Investment increase

Investment decrease

Profit or loss under the equity method

Adjustment in other comprehensive income

Other changes in equity

Dividend declared

Cash dividend or profits declared

Closing balance

Provision of impairment

Shenzhen Main Luck Pharmaceutical Co., Ltd

294,469,367.27

-

-

34,556,440.58

-

-

(63,342,000.00)

-

265,683,807.85

39,930,000.00

Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd.

-

--

-

-

-

-

-

-

-

-

Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.

400,578,574.68

-

-

17,400,995.09

-

-

-

-

417,979,569.77

-

Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.

10,275,257.61

-

-

757,325.01

-

-

-

-

11,032,582.62

-

Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd.

120,878,018.74

-

-

27,665,891.90

-

-

-

-

148,543,910.64

-

Shanghai Shyndec Pharmaceutical Co., Ltd.

1,235,240,098.79

-

-

53,168,842.80

122,186.89

14,135.44

(16,714,220.20)

-

1,271,831,043.72

-

Shanghai Dingqun Enterprise Management Consulting Co., Ltd.

22,637,781.16

-

22,637,781.16

-

-

-

-

-

-

-

1,878,157,264.66

-

22,637,781.16

133,549,495.38

122,186.89

14,135.44

(80,056,220.20)

-

2,115,070,914.60

39,930,000.00

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

4. Operating revenue and cost

		For the six months ended 30 June 2020		For the six months ended 30 June 2019
		Revenue	Cost	Revenue	Cost
	Principal operations	1,750,454,957.66	1,679,162,910.91	1,997,575,365.19	1,915,240,571.14
	Other operations	22,032,405.90	10,401,151.33	10,429,198.11	6,031,823.62
		1,772,487,363.56	1,689,564,062.24	2,008,004,563.30	1,921,272,394.76

	Classification	For the six months ended 30 June 2020
	By product
	Include:
	Pharmaceuticals	1,586,703,672.74
	Medical devices and disposables	158,364,033.88
	Diagnostic reagents	3,200,625.97
	Medical equipments	2,186,625.07
	Other	17,839,465.77
	By area
	Include:
	China	1,768,294,423.43
	By contract duration
	Include:
	At a point in time	1,750,454,957.66
	Overtime	17,839,465.77
		1,768,294,423.43

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVI. Notes to key items of the company financial statements(Continued)

4. Operating revenue and cost (Continued)

Information about the Company’s obligations is as follows:

	(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 days from delivery;
	(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service is completed.

Information related to the sales price allocated to the remaining obligations:

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled isRMB11,170,128.91, of which RMB11,170,128.91 is expected to be recognized in 2020.

Revenue is as follows:
	30 June 2020		30 June 2019
Revenue from contracts with customers	1,768,294,423.43		2,003,189,231.91
Rentals	4,192,940.13		4,815,331.39
	1,772,487,363.56		2,008,004,563.30

5. Investment income

		For the six months ended 30 June 2020		For the six months ended 30 June 2019
	Gain on long-term equity investments under the equity method	133,549,495.38		181,280,533.11
	? Income from disposal of long-term equity investments method	998,665.84		-
	Gain on transaction monetary during holding period	4,109,881.90		-
	Income from the derecognition of financial assets measured at amortised cost measured at amortised cost	(1,526,968.25)		(2,178,875.28)
	Dividends from subsidiaries	612,502,685.91		427,007,887.36
		749,633,760.78		606,109,545.19

Notes to financial statements (Continued)

For the six months ended 30 June 2020

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

XVII Supplementary information to financial statements

1. Schedule of non-recurring profit or loss

		Amount for 30 June 2020	Illustration
	Gains and losses from disposal of non-current assets	3,933,705.37	Mainly probability of gain and losses from the end of lease
	Government grants recognized in income statement for the current year, except for those closely related to the ordinary operation of the Company which the Group enjoyed constantly according to the allotment standards or quantitative criteria of the country	28,001,035.78	Mainly probability of special subsidies received in the period and tax reduction & exemption
	Reversal of bad debt provision for accounts receivable and contract assets that were tested for impairment individually	362,078.91
	Income from operation on commission	961,488.75
	Non-operating income and expenses other than the aforesaid items	1,233,502.85
	Other gains and losses of non-operating	819,788.51
	Less:Impact of income tax	8,198,319.82
	Impact of non-controlling interests after tax	10,678,719.21
		16,434,561.14
	Basis for preparation of detailed list of non-recurring profit or loss items: Under the requirements in Explanatory announcement No. 1 on information disclosure by companies offering securities to the public – non-recurring profit or loss (2008) (“Explanatory announcement No.1”) from CSRC, nonrecurring profit or loss refer to those arising from transactions and events that are not directly relevant to ordinary business, or that are relevant to ordinary business, but are so extraordinary that would have an influence on users of financial statements making proper judgments on the performance and profitability of an enterprise.

Notes to financial statements (Continued)For the six months ended 30 June 2020

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

XVII. Supplementary information to financial statements (Continued)

2. Return on equity (“ROE”) and earnings per share (“EPS”)

	Weighted average ROE (%)	Basic EPS (RMB/Share)
		Basic EPS (RMB/Share)	Diluted EPS (RMB/Share)
Net profit attributable to ordinary shareholders of the parent	4.91%	1.50	1.50
Net profit after deducting non-recurring profit or loss attributable to the Company’s ordinary shareholders of the parent	4.79%	1.46	1.46