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 |