ChinaNationalAccordMedicinesCorporationLtd.
Semi-AnnualReport2019
August2019
SectionI.ImportantNotice,ContentsandParaphraseBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.LinZhaoxiong,PrincipaloftheCompany,WeiPingxiao,personinchargerofaccountingworksandWangYing,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportofSemi-AnnualReport2019isauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.TheCompanyplansnottopaycashdividends,bonusandcarryoutcapitalizingofcommonreserves.
Contents
SectionIImportantNoticeandParaphrase ...... 1
SectionIICompanyProfileandMainFinancialIndexes ...... 4
SectionIIISummaryofCompanyBusiness ...... 7
SectionIVDiscussionandAnalysisofBusiness ...... 11
SectionVImportantEvents ...... 28
SectionVIChangesinSharesandShareholders ...... 58
SectionVIIPreferredStock ...... 63
SectionVIIIParticularsaboutDirectors,SupervisorsandSeniorExecutives ...... 64
SectionIXCorporateBonds ...... 65
SectionXFinancialReport ...... 66
SectionXIDocumentsAvailableforReference ...... 256
Paraphrase
Items
| Items | Refersto | Contents |
| ListedCompany,Company,theCompany,SinopharmAccord,theGroup | Refersto | ChinaNationalAccordMedicinesCorporationLtd. |
| Sinopharm | Refersto | ChinaNationalPharmaceuticalGroupCorporation |
| SinopharmHolding | Refersto | SinopharmGroupCo.,Ltd;ControllingshareholderoftheCompany |
| CompanyLaw | Refersto | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | Refersto | SecuritiesLawofthePeople’sRepublicofChina |
| Yuan,10thousandYuan,100millionYuan | Refersto | RMB,RMB10thousand,RMB100million |
| Terminology: | Refersto | |
| TwoInvoicesSystem | Refersto | Thefirstinvoicereferstotheinvoicefromthemanufacturertothedistributor,andthesecondinvoicereferstotheinvoicefromthedistributortothemedicalserviceprovider.Bythisway,circulationlinkshavebeengreatlyreducedandthenumberofdistributorsforeachmedicinecategoryshallnotexceedtwo. |
| GPO | Refersto | Grouppurchasingorganizations |
| GSPcertificate | Refersto | GoodSupplyPracticecertificate |
| SupplyChainManagement | Refersto | ThatisCMS,andinformationsystemprocessingworkflow&procurement,inventory&salesdocuments |
| Abbreviation: | Refersto | |
| SinopharmHoldingGuangzhou | Refersto | SinopharmHoldingGuangzhouCo.,Ltd. |
| GuodaDrugstore | Refersto | SinopharmHoldingGuodaDrugstoreCo.,Ltd. |
| SinopharmHoldingGuangxi | Refersto | SinopharmHoldingGuangxiCo.,Ltd. |
| FoshanNanhai | Refersto | FoshanNanhaiPharmaceuticalGroupCo.,Ltd. |
| NanfangPharmaceuticalForeignTrade | Refersto | GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. |
| ChinaNationalZhijun,ZhijunPharmaceutical | Refersto | ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd. |
| ZhijunPharmacyTrade | Refersto | ShenzhenZhijunPharmacyTradeCo.,Ltd. |
| ZhijunPingshan,PingshanPharmaceutical | Refersto | ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. |
| MainLuckPharmaceuticals | Refersto | ShenzhenMainLuckPharmaceuticalsInc. |
SectionII.CompanyProfileandMainFinancialIndexes
I.Companyprofile
Shortformofthestock
| Shortformofthestock | SinopharmAccord;AccordB | Stockcode | 000028,200028 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameoftheCompany(inChinese) | 国药集团一致药业股份有限公司 | ||
| ShortformoftheCompany(inChinese) | 国药一致 | ||
| ForeignnameoftheCompany(ifapplicable) | ChinaNationalAccordMedicinesCorporationLtd. | ||
| ShortformofforeignnameoftheCompany(ifapplicable) | SinopharmAccord | ||
| Legalrepresentative | LinZhaoxiong | ||
II.Person/Waytocontact
| SecretaryoftheBoard | Representativeofsecurityaffairs | |
| Name | ChenChangbing | WangZhaoyu |
| Contactadd. | AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince |
| Tel. | +(86)75525875195 | +(86)75525875222 |
| Fax. | +(86)75525195435 | +(86)75525195435 |
| gyyzinvestor@sinopharm.com | gyyz0028@sinopharm.com |
III.Others
1.WayofcontactWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot
□Applicable√NotapplicableRegistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhasnochangeinreportingperiod,foundmoredetailsinAnnualReport2018.
2.InformationdisclosureandpreparationplaceWhetherinformationdisclosureandpreparationplacechangedinreportingperiodornot
□Applicable√NotapplicableThenewspaperappointedforinformationdisclosure,websiteforsemi-annualreportpublishappointedbyCSRCandpreparationplaceforsemi-annualreporthavenochangeinreportingperiod,foundmoredetailsinAnnualReport2018.IV.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
Currentperiod
| Currentperiod | Sameperiodoflastyear | Increase/decreaseinthisreporty-o-y | |
| Operatingrevenue(RMB) | 25,228,147,377.43 | 20,778,425,602.22 | 21.42% |
| NetprofitattributabletoshareholdersofthelistedCompany(RMB) | 650,833,360.40 | 641,727,034.93 | 1.42% |
| NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(RMB) | 639,700,447.95 | 623,296,339.34 | 2.63% |
| Netcashflowarisingfromoperatingactivities(RMB) | 1,163,757,581.35 | 225,357,709.20 | 416.40% |
| Basicearningspershare(RMB/Share) | 1.52 | 1.50 | 1.33% |
| Dilutedearningspershare(RMB/Share) | 1.52 | 1.50 | 1.33% |
| WeightedaverageROE | 5.44% | 6.62% | Decline1.18percentagepoints |
| Endofcurrentperiod | Endoflastperiod | Increase/decreaseinthisreport-endoverthatoflastperiod-end | |
| Totalassets(RMB) | 33,539,598,682.94 | 28,930,300,519.97 | 15.93% |
| NetassetsattributabletoshareholderoflistedCompany(RMB) | 12,140,439,917.48 | 11,618,432,603.28 | 4.49% |
V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)VI.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMB
Item
| Item | Amount | Note |
| Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets) | 4,318.22 | |
| Governmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard) | 16,456,976.15 | Thevarytaxationsubsidiaryandfinancialincentivereceivedintheperiod |
| Reversalofimpairmentreserveforaccountreceivablewithseparateimpairmenttesting | 1,076,222.62 | |
| Gains/lossesonentrustedloans | 1,715,338.06 | ThegainsobtainedfromofferingentrustloanstoChinaNationalZhijun(Suzhou). |
| Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems | 519,920.40 | |
| Othergains/lossessatisfyadefinitionofextraordinarygains/losses | 16,447.15 | |
| Less:impactonincometax | 4,668,084.55 | |
| Influencedamountofminorityshareholders’equity(aftertax) | 3,988,225.60 | |
| Total | 11,132,912.45 | -- |
Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√NotapplicableInreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
SectionIII.SummaryofCompanyBusinessI.MainbusinessesoftheCompanyinthereportingperiod
WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryYesRetailingindustryTheCompanycomplieswiththedisclosurerequirementof"InformationDisclosureGuidelinesfortheShenzhenStockExchangeNo.8-ListingCompanyEngagedinRetailingIndustry"Inthereportingperiod,themainbusinessofSinopharmAccordincludespharmaceuticaldistributionandpharmaceuticalretail,specificallyasfollows:
(i)Inthepharmaceuticaldistributionfield,theCompanycontinuestointegratethedistributionandlogisticsbusiness,deeplypenetratesintotheendmarkets,improvesthemultistepdistributionnetwork,createsintelligentsupplychain,developedaclusteredandlarge-scaleindustrialadvantages,andcommittobecomingaleadingproviderofmedicalhealthproductsandservicesinSouthernChina.
1.Intermsofmarketcompetitionpattern,thecompany'spharmaceuticaldistributionismainlybasedonGuangdongandGuangxi.ThecompanyopenedthenetworkchannelconstructionofGuangdongandGuangxiin2008,andthebusinesswasdistributedtovariouscitiesandregionsthroughthemergerandacquisitionandthenewbranches;atthesametime,thecompanystartedthelogisticsnetworkconstruction,andrealizedwholenetworkoperationin2015.In2016,withthereorganizationofSinopharmAccord,thedistributioncontinuedtoconsolidatethetraditionalhospitalbusiness,whileactivelyexpandinginnovativebusiness,combinedwiththeexplorationofwholesaleandretailsynergy,andrealizedsteadygrowthinscaleyearbyyearfacingwiththechangingmarketinrecentyears,thefrequentmedicalreformpolicies,andtheincreasinglystrictsupervisiontopharmaceuticalindustry.Inthefirsthalfof2019,thehospitaldirectsellingmarketdistributedin30citiesatprefecturelevelandaboveinGuangdongandGuangxirankedthetopthree.
2.Intermsofcustomerdistribution,asthedistributionchannelscontinuetosink,theexpansionofsmallandmedium-sizedterminalshascontinuedtoincreasesince2018,mainlyincludingretailmedicaltreatment,grass-rootmedicalinstitutions,andsmall-scalesocialmedicalservices.Thedistributionofcustomersuptothefirsthalfof2019wasasfollows:1,804medicalinstitutionsatthefirstlevelorabove,3,783primarycarecustomers(excluding836first-levelhospitals),and1,587retailterminalcustomers(chaindrugstores,singlestores).
(ii)Inthepharmaceuticalretailfield,GuodaDrugstoreisapharmaceuticalretailenterprisethatranksthefirstinthesalesvolumethroughoutthecountry,andisoneofthefewenterprisesinChinawithnationaldirectsalesdrugretailnetwork.
AsoftheendofJune2019,GuodaDrugstorehad4,593stores,covering19provinces,autonomousregions,andmunicipalitiesdirectlyunderthecentralgovernment,whichformedanetworkofpharmaciescoveringtheurbanagglomerationsofEastChina,NorthChina,andcoastalregionofSouthChina,andgraduallyspreadintotheNorthwest,CentralPlains,andinlandcityclusters.ThebusinessofGuodaDrugstoremainlyreliedonmodernretailpharmacies,andfocusedonthedevelopmentofprofessionalservicesystemswithmedicalresourcesasitscorecompetitiveness,andcreatedagroupofretailmedicaltreatmentandhospitalcooperationprofessionalizedstoresthatintegratemedicalservicesandhealthproductssales.Atthesametime,GuodaDrugstoreactivelyexpandeditsinnovativebusiness,activelyexploredandenrichednewbusinesschannels,enhancedprofessionalservicecapabilities,andwascommittedtothetransformationfromtraditionalpharmaceuticalretailenterprisestoinnovativeservice-orientedenterprises.GuodaDrugstorehadbuiltindustry-leadingprofessionalservicecapabilitiesthroughregularmerchandiseretailmanagement,upgradesofkeybrandsandpotentialtappingofcooperationwithsuppliers,andacceleratingDTPbusinessandcontinuingthecreationofhealthservicesystem.Inaddition,theleadingscaleofGuodaDrugstorewasoneofthecorecompetitiveness,andthescaleadvantagereducedthecompany'sprocurementcostandenhancedthecompany'sbargainingability.
II.Majorchangesinmainassets
1.Majorchangesinmainassets
Majorassets
| Majorassets | Noteofmajorchanges |
| Equityassets | Increased197.4176millionYuanoverthatofperiod-beginwith10.42%rateofchange,mainlybecausetheinvestmentincomefromjointventuresincreased. |
| Fixedassets | Decreased14.3813millionYuanoverthatofperiod-beginwith2.37%rateofchange,nosignificantchangesduringthereportingperiod. |
| Intangibleassets | Increased1.3156millionYuanoverthatofperiod-beginwith0.41%rateofchange,nosignificantchangesduringthereportingperiod. |
| Constructioninprogress | Decreased4.432millionYuanoverthatofperiod-beginwith12.17%rateofchange,mainlybecausetheERPsoftwaretransfertointangibleassetsforinstallationcompleted. |
| ReceivablesFinancing | Increased325.4396millionYuanoverthatofperiod-beginwith100%rateofchange,mainlybecauseatendoftheperiod,thebankacceptancebillunderNoteReceivablewaslistedundertheitemof"ReceivablesFinancing"forchangeofthestatementformat |
| Right-of-useassets | Increased1910.9812millionYuanoverthatofperiod-beginwith100%rateofchange,mainlybecausenewleasingstandardsareimplementedintheperiod |
2.Mainoverseasassets
□Applicable√Notapplicable
III.CorecompetitivenessanalysisWhethertheCompanyneedstocomplywiththedisclosurerequirementsoftheparticularindustryYesRetailingindustry
1.StrongnetworkcoverageandlayoutLeadinglayoutandcompletedistributionnetworkinGuangdongandGuangxi:theCompanyhascompletepharmaceuticaldistributionnetworksinGuangdongandGuangxi,achievecomprehensivecoverageofthesecond-andthird-levelmedicalinstitutionsinGuangdongandGuangxi;inrecentyears,wehaveseizedtheopportunitytodevelopretail-orientedcustomers,andvigorouslyexpandedrelatedbusinessformatssuchasgrass-rootmedicalinstitutions,distributionretailpharmacies,andretailterminalsincludingsmall-scaleprivatemedicalenterprises,andcontinuouslyexpandedthecoverageofthevastmarketterminals,therefore,thescaleandgrowthratehaveachievedrapidgrowth.Taketheleadinscaleandcoverthecountrywideretailnetwork:GuodaDrugstoreisapharmaceuticalretailenterprisewithsalesvolumerankingfirstthroughoutthecountry,established28regionalchainenterprises,withretailnetworkspreadingover19provincesandmunicipalitiesandautonomousregions.
2.AbundantvarietyresourcesInthepharmaceuticaldistribution,theCompanyhasestablishedextensivecooperativerelationswiththousandsofdomesticmanufacturersandcommercialenterprisesandestablishedstablebusinessrelationshipswithhundredsofimportandjointventuremanufacturers,itsbusinessscopeandvariousbusinessqualificationsarecomplete,coveringmedicines,medicalequipment,herbalmedicinepieces,andincludinghempmedicines,medicaltoxicdrugs,diagnosticreagents,etc.GuodaDrugstoreoperatesnearly120,000merchandises.Withitsrelativelycomprehensivepurchasingnetworkandyearsofexperienceincommoditymanagement,GuodaDrugstorehasestablishedamerchandisesystemwithwidecoverage,highprofessionalization,andrichvarieties.
3.CompletelogisticsanddistributionsystemSinopharmAccorddistributionadoptssupplychainmanagementandwarehousemanagementsolutionssystem,ithasbuiltlarge-scalefirst-gradelogisticscentersinGuangzhou,Nanning,ShenzhenandotherplacesandestablisheddistributioncentersinGuangdongandGuangxiwhichhasformedladderlogisticsanddistributionnetworks,itisthefirstenterpriseinGuangdongandGuangxithathasachievedthethird-partylogisticsqualificationandhastheprofessionalpharmaceuticallogisticscapabilitieswiththelargestscale,themostextensivenetwork,andthemostcompletemodesinsouthernChina.GuodaDrugstorehasanationwidemodernlogisticsanddistributionsystem,andhasestablishedthelogisticsanddistributionnetworkcoveringallthestoresthroughoutthecountry,includingShanghaiNationalLogisticsCenterand23provincialandmunicipaldistributioncenters.
4.TheadvantagesofmedicalinsuranceresourcesRegardingmedicineretails,thesubsidiariesofGuodaDrugstorehavefeaturedgenerallyhighermedicalinsuranceacquiringability,withhighermedicalinsurancesalesratioandsteadyoperation.
5.TheadvantagesofComplianceTheCompanyhadabigleadunderanincreasinglystringentregulatoryenvironmentforthereasonthatithaskeptemphasizinglegalizationandcomplianceintheprocessofoperationandmanagement.
6.Unique-influenceSinopharmbrandBrandoftheCompanyanddistribution,industrychild-brandandcontrollingshareholderandactualcontroller’sbrandcomedowninonecontinuousline,dependingonpowerfulforceofcentralenterprises,theCompany’spopularityandinfluenceareprominentdaybydayintheindustry
SectionIV.DiscussionandAnalysisofBusinessI.Introduction
Inthefirsthalfof2019,thegrowthrateofChina'spharmaceuticalmarketsloweddown,andthegrowthofmajorterminalscontinuedtodifferentiate,thegrowthrateofprimarymedicalcareandretailterminalswashigherthanthatofhospitalterminals.Theindustrialpolicycontinuedtodeepenthemedicalreformwiththecorethoughtsof"adjustingthestructure,strengtheningthegrassrootsandstrictsupervision",andthepaceofreforminthemedicalfieldwasaccelerated;the"4+7"collectionandlinkagewasrapidlyadvanced,thenationalmedicalinsurancestandardizationworkwasofficiallylaunched,thepaymentmethodreformpilothasbeenadvanced,andthemarketregulationwasbecomingstricter.Underthenewsituation,SinopharmAccordconformedtotheindustryandpolicytrends,maintainedstrategicstrength,soughttransformationandinnovationanddevelopment,andcontinuouslypromotedthestrategicmeasuresandtechnologicaltransformationwithwholesaleandretailintegrationasthecore,focusedonfourbusinessdirections,andcreateda"new"Guoda.Undertheguidanceandsupportofthecompany'sboardofdirectors,withthejointeffortsofmorethan25,000employees,wefocusedontheincreaseinshareandthescaleexpansion,thecompany'sscaleandgrowthrateinthefirsthalfoftheyearwasbetterthantheoverallleveloftheindustry,andachievedsteadyandrapidgrowthinperformance.(i)PerformancecompletionInfirsthalfof2019,SinopharmAccordachievedarevenuefromoperationamountedas25.228billionYuanwithay-o-ygrowth21.42%;netprofitattributabletoshareholdersofparentcompanycomesto651millionYuanwith
1.42%uponay-o-ybasis.Thedistributionbusinesshasoperationrevenueof19.477billionYuanwithy-o-ygrowthof22.66%;netprofitattributabletoshareholdersofparentcompanyhas382millionYuanwithy-o-ygrowthof15.41%.GuodaDrugstoreachievedarevenuefromoperationamountedto6.108billionYuanwithay-o-ygrowthof18.75%andnetprofitattributabletoshareholdersofparentcompanyamountedas150millionYuan,a7.81%uponay-o-ybasis.(ii)Themainwork
1.Stabilizegrowth-performanceimprovementandscaleexpansionThecompanyactivelygraspedindustryopportunities,optimizedinvestmentM&Adecision-makingefficiency,acceleratedindustryresourceintegrationandstorenetworklayout,andensuredscaledevelopment.Asofthefirsthalfoftheyear,thecompanyhadatotalof107subsidiaries,andthenumberofretailoutletsofGuodaDrugstorewas4,593,withanetincreaseof318stores.Duringthereportingperiod,thecompanyinvestedintheestablishmentoftheSinopharmGuodaDrugstoreBayannao’erCo.,Ltd.,InnerMongoliaGuodaPharmaceuticalsCo.,Ltd.,andSinopharmGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.
2.Promotestrategy-integrationofwholesaleandretail,andtechnologyempowerment
Thecompanyresearchedandgraspedenvironmentalchanges,deepenedthedevelopmentplanforthenextfiveyears,andcarriedoutstrategicrollingrevisions.Withthecoremeasuresof"technologyempowerment,serviceupgrading,integrationofwholesaleandretail,andindustryandfinancedualdrive",weprovidedfull-servicesolutionsfortheupstreamanddownstreamindustrychainthroughcustomervaluedrivingandupgradesofsupplychainmodel,andtransformedthepharmaceuticaldistributorsintothesolutionprovidersandserviceproviderssoastocreatealeadinginternationalmedicinehealthserviceplatform.Thecompanyintegratedresourcestopromotethesynergyofwholesaleandretail.Inthefirsthalfoftheyear,thedistributionlaunchedthelogisticsplanningofwholesaleandretailintegration,andthesalesofwholesaleandretailsynergiesincreasedby54%onayear-on-yearbasis,andthepartoutsideofGuangdongandGuangxiprovincesincreasedby64%onayear-on-yearbasis;GuodaDrugstoregotsupportsfromWBAglobalstrategiccooperationmanufacturers’resources,andimprovedtheCatalogueofIntegrationofWholesalesandRetails,atthesametime,promotedtheconstructionofprovincialplatforms,atpresent,theprovincialplatforminInnerMongoliahasbeencompleted,andtheprovincialplatformprojectinShenyanghaspassedtheprojectapproval.Centeringonthe"digitaltransformation",thecompanylaunchedITplanning,promotedintelligentlogisticsandintelligentsupplychainoptimization,andenergizedthebusinessdevelopmentinmultipledimensions.
3.Consolidatefoundation-managementupgrade,riskcontrolguaranteeThecompanystraightenedoutthegovernancerelationshipofsubsidiaries,regulatedthemanagementofitssubsidiaries,andenhanceditsoverallgovernancecapabilities.Thecompanyoptimizedtheorganizationalstructure,createdadiversifiedincentivemechanism,improvedthetalentdevelopmentsystem,strengthenedleadership,stimulatedorganizationalvitalityandinnovation,andpromotedorganizationalmanagementtransformation.Theheadquartersgaveplaytoresourceallocationandcontrolfunctions,strengthenedprofessionalcapabilities,improvedserviceawareness,implementedriskpreventionandcontrol,andescortedthebusinessdevelopment.Wepromotedkeyprojectssuchascontrolsofclaimsandinventorybalances,loss-makingenterprisegovernance,andinnovationfirst,andimprovedqualityandefficiencyforhealthydevelopment.
4.Promotetransformation–servicedriven,modelinnovationDistributionbusiness:Thecompanymaintainedstrategicstrength,activelyrespondedtochangesinmarketpolicies,andconsolidatedtheintegratedoperationalfoundation,thefourmajorbusinessesdevelopedrapidlyandbuiltnewcompetitiveadvantages.Inthefirsthalfoftheyear,traditionalbusinessgrewby22%onayear-on-yearbasis,retaildirectsalesincreasedby30%onayear-on-yearbasis,equipmentconsumablesincreasedby52%onayear-on-yearbasis,retailmedicaltreatmentincreasedby80%onayear-on-yearbasis,andprimarycareincreasedby34%onayear-on-yearbasis.
(1)Thecompanyactivelyrespondedtoenvironmentalchanges,strengthenedcommunicationwiththegovernment,respondedtothegovernment'sdemandformedicalreform,activelyparticipatedinandprovidedprofessionaladvicetoenhancethecompany'sinfluence.IntermsofGPOpolicy,GuangzhouCompanycompletedbargainingreportsforsevenbatchesofproducts,andthebargaininglistcoverageratereached91%,atthesametime,itactivelytookcountermeasuresagainstnewGPOareassuchasMeizhou,Heyuan,ShanweiandMaoming.Intheimplementationof"4+7"quantityprocurement,withtheprofessionalservicecapabilityandnetworkcoverageadvantage,ShenzhenCompanyhasobtaineddistributionrightsof22varieties,accountingfor84%;Guangzhou
Companyhasobtaineddistributionrightsof24varieties,accountingfor96%.
(2)Retaildirectsalesbusiness:combinedwiththecharacteristicsofretailterminals,continuedtopromotecustomerexpansion,regionalsinking,andactivelypromotedtheintegrationofwholesaleandretailandtheplatformconstruction.Intermsofsalesgrowth,inthefirsthalfof2019,theretaildirectsalesbusinessachievedrapidgrowth,amongthem,retailpharmacycustomersalesincreasedby40%onayear-on-yearbasis,andsmall-scaleprivatemedicalsalesincreasedby29%onayear-on-yearbasis.ActivelyintegratedGuodachainandprivatesingle-storeandsmallchainresources,andpromotedtheconstructionofthecorenetworkoftheterminalnetworkmemberstore+thehospitalcircumjacentstorethroughthe"networkself-built+cooperativedevelopment"dual-trackmode,andcontinuedtoexpandtheconstructionofthethirdterminalmedicalnetwork.IntermsofB2Bplatformconstructionandserviceinnovation,thecompanybuiltOTCresourceplatforms,realizedonlinepaymentofB2Bplatform,upgradedmembermanagementfunctions,optimizedAPPmoduleconstruction,focusedonendcustomerneeds,andcreatedspecialservices.
(3)Retailmedicaltreatmentbusiness:ContinuedtopromotethedistributionofprofessionalpharmaciesinGuangdongandGuangxi,andsaleshaveincreasedsignificantly.Inthefirsthalfoftheyear,thesalesrevenueofprofessionalpharmaciesinthefirsthalfoftheyearincreasedby80%,and13newpharmacieswereopened.Currently,thedistributionpointsin20citiesofGuangdongand12citiesofGuangxihavebeencompleted.AsofJune,therewere29hospitalcircumjacentpharmacieswithsalesgrowthof122%onayear-on-yearbasis,and25DTPpharmacieswithsalesgrowthof60%onayear-on-yearbasis.Whileadvancingthelayoutofprofessionalpharmacies,wehavecontinuouslyobtainedvarioustypesofmedicalinsurancequalifications:inthefirsthalfof2019,ShenzhenPharmacyandHexieRoadPharmacybecamethemajorandseriousdiseasesupplementarymedicalinsurancedrugretailpharmaciesofShenzhen;HuizhouPharmacyobtainedthequalificationofseriousdiseasemedicalinsuranceofHuizhou,whileZhuhaiPharmacyhasobtainedthequalificationofadditionalsupplementarymedicalinsuranceproject.
(4)Equipmentconsumablesbusiness:Withthegradualadvancementofmedicalreformpolicies,themedicaldeviceindustrysupervisionhasbecomeincreasinglystrict,andthemanagementadvantagesofdistributionforthedevicebusinesshaveemerged.Inthefirsthalfof2019,thesalesofequipmentbusinessincreasedbymorethan50%.Inthesalesofequipment,combinedwiththeneedsofhospitals,continuouslyimprovedtheviscosityofhospitalcustomersthroughplatformconstructionanddeeppersonalizedservice,formedavarietyofSPDprojectcustomizedsolutions,andpromotedthroughthecreationofSPDmodelhospital;exploredmedicalsuppliescountersalesandconsignmentsalesmodel,andpromotedthehospitalbiddingprocess;thesalesofSPDprojectsinthefirsthalfoftheyearincreasedby181%onayear-on-yearbasis.Inaddition,itactivelyacquiredthequalificationsforwholesalesandretailsofmedicaldevices,developedretailmedicaldevicemodels,andimprovedretailbusinessprocessesandretailsystemplatforms,inaddition,expanded4Dbusinessaroundthesupplychainserviceupgrades,thebusinessesofnewtypeofbusinesscompany(includingequipmentconsumables,equipmentmanagement,disinfectioncenter,etc.)havebeengraduallycarriedoutinanorderlymanner.GuodaDrugstore:Promotethecompany'sbrandupgrade,optimizethemanagementfoundation,strengthentheprofessionalpharmacyservicecapabilities,andcreatenewmodels.
(1)Accordingtothecompany'sstrategicplanninganddeployment,implementthenewbrandstrategy,successivelycompletethe"Guoda"upgradesand"Guozhi"brandintegrationplan,expandthebrandupgradeideas,formanumberoflandingplans,andcontinuetopromotebrandupgradesinthesecondhalfoftheyear.
(2)The"NewConcept"pilotpharmacyjointlylaunchedbyGuodaDrugstoreandWalgreensBootsAllianceopenedonJanuary20
thatShangnanRoad,PudongNewDistrictofShanghai.Uptonow,saleshaveincreasedby
34.8%onayear-on-yearbasis,andthenumberoftransactionshasincreasedby31.5%onayear-on-yearbasis.ThepilotpharmacyhasintegratedandimplementedanewbusinessoperationmodelwithadvanceddesignandoperationmanagementconceptofWalgreensPharmacyandBootsPharmacy.Introducedvarietiesandcooperatedwithanumberofglobalbrandsuppliers,setparametersvitalsignsdetector,andthetouchadvertisingmachineprovidedphysicalintelligentdetectionandonlinedrugpurchasingservices;launched"cloudhospital"project,sothatcustomerscanexperienceinternetmedicalservicessuchasremoteconsultation,electronickitchen,chronicdiseasemanagement,self-testmedication,andappointmentregistration.
(3)Professionalizationofpharmaceuticalservicecapabilities.Strengthenedprofessionalcompetence,andcarriedouttrainingcoursesforlicensedpharmacists;openedElearningplatformtopromoteonlinelearning;carriedoutthe"GuodaDrugstoreServiceImprovement"project;exploredasustainableandreplicablebasicservicemanagementsystem.
(4)BuiltanInternet+medicale-commercemodel.Improvedthevalue-addedservicesystem,optimizedtheself-operatedOTOplatformssuchasWeChatMallandAPP,createdapharmacy+InternetO2Omodel,enhancedthefront-endcustomerexperience,andlaunchedthee-commercenationalcustomerservice.Inthefirsthalfoftheyear,thenumberofeffectivemembersnationwidewas11.436million,anincreaseof8%overthesameperiodlastyear.
5.Strengthenpartybuilding-partybuildingisstrongfoundation,don’tforgettheinitialheartGuidedbytheparty'spoliticalconstruction,strengthenedthethemeeducationof"notforgettingtheinitialheart,keepingthemissioninmind"andthespecialactionof"partybuildingisstrongfoundation",focusedonthecompany'sdevelopmentstrategyandcentraltasks,focusedontheconsolidationofbasicorganization,basicteam,andgrouporganizationconstruction.
6.Cultivateinternalstrength-culturalpractice,andsedimentaryaccretionofbrand
Carriedoutvariousculturalactivities,gatheredheartandstrengthtogether,promotedcorporateculture
propagandaandpractice,focusedonbrandbuilding,gaveplaytobrandvalue,andcultivatedthedrivingforceof
enterprisedevelopment.SinopharmAccordCorporateCultureCommunicationProjectwontheBestLearning
ProjectAwardintheChinaTalentDevelopmentEliteAward(2018-2019).Atthesametime,SinopharmAccord
alsowonthe16
th
"ShenzhenFamousBrand"andtheexcellententerpriseinGuangdongProvince,andalsowon
themostsocialresponsibilityawardofGelonghui's2019A-sharelistedcompanies.
TheCompanyisrequiredtocomplywiththedisclosurerequirementsoftheIndustryInformationDisclosure
GuideoftheShenzhenStockExchangeNo.8-ListedCompaniesEngagedinRetail-RelatedBusinesses.
1.Theentitybusinessoperationsandthebusinessconditionofthestoresduringthereportingperiod:
AsoftheendofJune2019,Guodahad3,470direct-operatedstores,withsalesrevenueof5.381billionYuan,ayear-on-yeargrowthof11.82%,1,123franchisestoreswithdistributionrevenueof622millionYuan,anincreaseof7.64%onayear-on-yearbasis.
Region
| Region | Direct-salestore | Franchisedoutlet | ||
| Numbersofthestore | Salesincome(in10thousandYuan) | Numbersofthestore | Salesincome(in10thousandYuan) | |
| North | 1,701 | 254,878 | 338 | 21,517 |
| EastChina | 829 | 106,956 | 587 | 26,537 |
| SouthChina | 421 | 66,125 | 87 | 4,133 |
| CentralChina | 277 | 24,769 | 111 | 2,586 |
| Northwest | 242 | 25,004 | - | |
| Total | 3,470 | 477,731 | 1,123 | 54,773 |
Note:
North:Liaoning,Shanxi,InnerMongolia,Beijing,Tianjin,Hebei;EastChina:Shanghai,Jiangsu,Anhui,Shandong,Fujian,Zhejiang;SouthChina:Guangdong,Guangxi;CentralChina:Henan,Hunan;Northwest:Ningxia,Xinjiang.
(1)Top10storesinsales
| Serial | Region | Name | Yearforstartingbusiness | Operatingmode | Businessactivity | Actualoperatingarea(inM2) | Propertybelonging |
| 1 | Shanxi | YiyuanZhongliBranch | 2002 | Direct-sale | 5+X | 820.00 | Rental |
| 2 | Guangdong | ShenzhenExhibitionHall | 2006 | Direct-sale | Modernpharmacy | 260.00 | Rental |
| 3 | InnerMongolia | HQ | 2003 | Direct-sale | 5+XStore | 1,689.26 | Rental |
| 4 | Jiangsu | JiangsuBaiyulanStore,Yangzhou | 1991 | Direct-sale | Modernpharmacy | 620.00 | Rental |
| 5 | Shanxi | YiyuanErYuanBranch | 2011 | Direct-sale | 5+X | 600.00 | Rental |
| 6 | Beijing | JinxiangStore,Xidang,Jinxiang | 1997 | Direct-sale | Modernpharmacy | 773.16 | Rental |
| 7 | Fujian | XiamenNewSpecialMedicine | 2005 | Direct-sale | Modernpharmacy | 132.90 | Rental |
| 8 | Hebei | LeRenTangHQ | 2010 | Direct-sale | TCMdiagnosisshops | 1,206.00 | Rental |
| 9 | Guangdong | Lianhuabei,Shenzhen | 2003 | Direct-sale | Modernpharmacy | 120.33 | Rental |
| 10 | Beijing | Yongdingstore | 2009 | Direct-sale | Modernpharmacy | 100.00 | Rental |
(2)Infirsthalfof2019,281direct-saleshopsareself-opened,and53shopsclosedwith228self-openeddirect-saleshopsnetincreased,inaddition,partofthestoreshavebeenputintooperation.50newstoresactuallyincreased.
| Region | Direct-salestore | Franchisedoutlet | |||
| Numberofstoreincreased | Totalarea | Numberofstoresshutdown | Numberofstoreincreased | Numberofstoresshutdown | |
| North | 169 | 17,970.35 | -18 | 19 | -3 |
| EastChina | 51 | 9,599.22 | -15 | 18 | -9 |
| SouthChina | 20 | 1,912.84 | -8 | 24 | -4 |
| CentralChina | 11 | 1,478.14 | -1 | 7 | -2 |
| Northwest | 30 | 3,002.63 | -11 | - | - |
| Total | 281 | 33,963.18 | -53 | 68 | -18 |
2.Infirsthalfof2019,onlinesalesdevelopedinasteadypace,andoveralle-commercerevenuegrowthsloweddown,andO2Oplatformsalestotaled154millionyuan.Detailsare:
In10thousandYuan
| Cooperationplatform | Businessrevenue |
| ChinaNationalHealthOn-line | 9,588.21 |
| 800FANG.CN(www.800pharm.com) | 73.96 |
| Yaofangwang(www.yaofangwang.com) | 422.34 |
| Yiyaowang(www.111.com.cn) | 41.38 |
| OtherB2BE-business | 1,408.64 |
| JDdaojia(http://daojia.jd.com) | 459.07 |
| AliHealth | 115.14 |
| YaoDaoJia | 0.13 |
| WandaE-business | 0.28 |
| Baidutakeout | 2.98 |
| ele.me(www.ele.me/home) | 1,716.59 |
MeituanWaimai(waimai.meituan.com)
| MeituanWaimai(waimai.meituan.com) | 1,365.62 |
| WeChatMall | 204.87 |
| Total | 15,399.19 |
3.Procurement,inventoryandsupplierfromtheheadquarter:top5suppliersinfirsthalfof2019:
In10thousandYuan
| Supplier | Procurementamount(taxincluded) | Purchaseratio |
| No.1 | 8,000 | 11% |
| No.2 | 6,160 | 8% |
| No.3 | 5,286 | 7% |
| No.4 | 4,792 | 6% |
| No.5 | 4,264 | 6% |
4.Warehousingandlogistics:
Inthefirsthalfof2019,logisticswarehousesofGuodaDrugstorespreadover17provinces,therewere28largeandsmalllogisticswarehousesandthetotalwarehouseareawasover130,000squaremeters.
| Province | Regionalenterprise | Warehousearea(InM2) | Managementownership | Logisticcharge(in10thousandYuan) | Rate |
| Liaoning | ShenyangGuoda | 18,821 | Self-management | 771.51 | 0.97% |
| Guangdong | GuangdongGuoda | 6,950 | SinopharmHoldingGuangzhouentrusted | 366.66 | 0.82% |
| JiangmenGuoda | 5,072 | Self-management | 247.38 | 1.48% | |
| Shanxi | ShanxiWanmin | 10,919 | Self-management | 611.23 | 1.11% |
| ShanxiYiyuan | 8,860 | Self-management | 553.94 | 0.82% | |
| Jiangsu | YangzhouGuoda | 4,869 | Self-management | 147.94 | 0.89% |
| NanjingGuoda | 2,200 | Self-management | 105.75 | 1.81% | |
| LiyangGuoda | 1,920 | Self-management | 92.08 | 1.04% | |
| Fujian | FujianGuoda | 5,688 | Self-management | 114.07 | 0.75% |
| QuanzhouGuoda | 1,096 | Self-management | 33.61 | 0.85% | |
| Hebei | HebeiGuoda | 4,300 | Self-management | 215.56 | 0.95% |
| Shandong | ShandongGuoda | 4,800 | Self-management | 240.88 | 1.20% |
| Ningxia | NingxiaGuoda | 3,300 | Self-management | 141.67 | 1.28% |
| Hunan | HunanGuoda | 3,600 | Self-management | 151.64 | 0.97% |
Henan
| Henan | HenanGuoda | 3,610 | Self-management | 176.71 | 1.29% |
| ZhengzhouGuoda | 1,515 | Self-management | 45.12 | 9.19% | |
| InnerMongolia | InnerMongoliaGuoda | 5,236 | Self-management | 213.76 | 0.74% |
| Guangxi | GuangxiGuoda | 1,950 | Self-management | 133.08 | 1.29% |
| Beijing | BeijingGuoda | 4,389 | Self-management | 425.93 | 1.72% |
| BeijingJinxiang | |||||
| Tianjin | TianjinGuoda | 1,200 | Self-management | 68.69 | 1.74% |
| Anhui | AnhuiGuoda | 1,000 | Self-management | 46.75 | 2.17% |
| Xinjiang | XinjiangGuoda | 3,517 | Self-management | 148.69 | 1.07% |
| Shanghai | ShanghaiFumei | 20,000 | Self-management | 1310.30 | 1.32% |
| ShanghaiGuoda | |||||
| Zhejiang | ZhejiangGuoda | 974 | Self-management | 53.37 | 2.55% |
| Shanghai | GuodaHQ | 13,192 | SinopharmLogisticentrusted | 600.00 | 0.99% |
| Total | 138,977 | 7,016.34 | 1.20% |
5.ThecommoditysuppliersofGuodaDrugstorearemainlyexternalsuppliers,andalsoassistedbysomeSinopharmaffiliatedenterprisesandprivatebrands.Thesaleforthefirsthalfof2019wasasfollows:
In10thousandYuan
| Privatebrand | Property | Category | Turnover(taxincluded) | Ratio |
| a | Group-buyingOEM | Health-carefood | 1,237 | 0.23% |
| b | Group-buyingOEM | Kids | 16 | 0.00% |
| c | Group-buyingOEM | Gynecology | 10 | 0.00% |
| d | Group-buyingOEM | Cold | 5 | 0.00% |
| e | Group-buyingOEM | Personalcare | 16 | 0.00% |
| f | Group-buyingOEM | Familyhealth | 1,602 | 0.30% |
| g | Group-buyingOEM | Anti-infection | 31 | 0.01% |
| h | Group-buyingOEM | Anti-allergic&antidinic | 14 | 0.00% |
| i | Group-buyingOEM | Clearingheatanddetoxitating | 136 | 0.03% |
| j | Group-buyingOEM | Externalusedrugs | 157 | 0.03% |
| k | Group-buyingOEM | Fivesenseorgans | 123 | 0.02% |
| l | Group-buyingOEM | Chineseherbalpieces | 1,867 | 0.35% |
| Total | - | - | 5,213.50 | 0.97% |
II.Mainbusinessanalysis
FoundmoreinI.IntroductioninDiscussionandAnalysisofBusinessY-o-ychangesofmainfinancialdata
InRMB
Currentperiod
| Currentperiod | Sameperiodoflastyear | Y-o-yincrease/decrease | Reasonsforchanges | |
| Operatingrevenue | 25,228,147,377.43 | 20,778,425,602.22 | 21.42% | Increased21.42%onay-o-ybasis,mainlybecausetheoperatingrevenuehasy-o-ygrowthforafavorableoperationconditionintheperiod |
| Operatingcosts | 22,415,519,952.87 | 18,367,643,723.84 | 22.04% | Consistentwiththegrowthofoperatingrevenuebasically |
| Salesexpenses | 1,483,332,500.73 | 1,273,588,756.07 | 16.47% | Nomajorchanges |
| Administrationexpenses | 377,216,694.13 | 351,820,063.78 | 7.22% | Nomajorchanges |
| Financeexpenses | 104,095,254.24 | 57,541,544.32 | 80.90% | Increased80.90%onay-o-ybasis,mainlybecauseunderthenewleasingstandards,theinterestexpensesofaleasingliabilityiscalculatedatthediscountrateforeachperiodoftheleaseterm,whilenosuchitemoccurredatsameperiodoflastyear |
| Incometaxexpenses | 192,243,926.50 | 164,486,734.32 | 16.88% | Nomajorchanges |
| Netcashflowarisingfromoperatingactivities | 1,163,757,581.35 | 225,357,709.20 | 416.40% | Increased416.40%onay-o-ybasis,mainlybecauseduetoagoodoperationconditions,thecashreceivedfromgoodsales,andprovidinglaborserviceareincreasedonay-o-ybasis |
| Netcashflowarising | -135,236,954.51 | -18,211,602.74 | -642.59% | Decreased642.59%ona |
frominvestmentactivities
| frominvestmentactivities | y-o-ybasis,mainlybecausethebonusreceivedfromassociatedenterprisedeclinedfromayearearlierintheperiod | |||
| Netcashflowarisingfromfinancingactivities | -891,486,201.45 | -288,243,874.04 | -209.28% | Decreased209.28%onay-o-ybasis,mainlybecauseunderthenewleasingstandards,thecashofrentwasincludedinOtherCashPaidWithFinancingActivitiesConcerned,whilenosuchitemoccurredatsameperiodoflastyear |
| Netincreaseofcashandcashequivalent | 136,857,858.14 | -80,782,904.11 | 269.41% | Increased269.41%onay-o-ybasis,mainlybecausenetcashflowarisingfromoperatingactivityincreasedfromayearearlier. |
Majorchangesonprofitcompositionorprofitresourcesinreportingperiod
□Applicable√NotapplicableNomajorchangesonprofitcompositionorprofitresourcesoccurredinreportingperiod.Constitutionofmainbusiness
InRMB
| Operatingrevenue | Operatingcost | Grossprofitratio | Increaseordecreaseofoperatingrevenueoversameperiodoflastyear | Increaseordecreaseofoperatingcostoversameperiodoflastyear | Increaseordecreaseofgrossprofitratiooversameperiodoflastyear | |
| Accordingtoindustries | ||||||
| Pharmaceuticalwholesale | 18,998,360,457.86 | 17,841,023,662.96 | 6.09% | 23.12% | 23.15% | -0.02% |
| Pharmaceuticalretail | 5,986,434,262.23 | 4,513,779,258.68 | 24.60% | 16.16% | 17.04% | -0.56% |
| Logisticsandwarehousingservices | 46,841,002.95 | 41,457,036.52 | 11.49% | 201.66% | 345.14% | -28.53% |
| Leasingandother | 196,511,654.39 | 19,259,994.71 | 90.20% | 9.78% | 38.28% | -2.02% |
| Accordingtoproducts | ||||||
Drugs
| Drugs | 23,547,484,934.34 | 21,063,595,549.23 | 10.55% | 19.35% | 20.99% | -1.22% |
| Apparatus | 1,345,459,501.68 | 1,239,062,232.74 | 7.91% | 45.93% | 43.30% | 1.69% |
| Other | 335,202,941.42 | 112,862,170.90 | 66.33% | 165.94% | 19.73% | 41.12% |
| Accordingtoregion | ||||||
| Internalrevenue | 25,228,147,377.43 | 22,415,519,952.87 | 11.15% | 21.42% | 22.04% | -0.45% |
III.Analysisofnon-mainbusiness
□Applicable√NotapplicableIV.Assetsandliability
1.Majorchangesofassetscomposition
InRMB
| Endofcurrentperiod | Endoflastperiod | Ratiochanges | Notesofmajorchanges | |||
| Amount | Ratiointotalassets | Amount | Ratiointotalassets | |||
| Monetaryfund | 8,086,328,508.49 | 24.11% | 3,943,595,560.58 | 16.42% | 7.69% | MainlybecausereceivedacapitalincreaseforsubsidiaryGuodaDrugstoreinthehalfyearof2018fromstrategicinvestor |
| Accountreceivable | 11,826,440,731.59 | 35.26% | 9,441,542,367.19 | 39.32% | -4.06% | Nomajorchanges |
| Inventory | 4,882,673,616.27 | 14.56% | 4,245,354,625.22 | 17.68% | -3.12% | Nomajorchanges |
| Investmentproperty | 140,319,140.00 | 0.42% | 149,409,723.79 | 0.62% | -0.20% | Nomajorchanges |
| Long-termequityinvestment | 2,077,811,395.30 | 6.20% | 1,756,735,242.44 | 7.32% | -1.12% | Nomajorchanges |
| Fixassets | 593,552,480.99 | 1.77% | 550,102,564.29 | 2.29% | -0.52% | Nomajorchanges |
| Constructioninprocess | 31,980,582.21 | 0.10% | 30,805,874.11 | 0.13% | -0.03% | Nomajorchanges |
| Short-termloans | 3,290,877,595.23 | 9.81% | 2,051,139,651.67 | 8.54% | 1.27% | Affectedbythemorefinancingforsupplychain |
| Long-termloans | 0.00% | 31,600,000.00 | 0.13% | -0.13% | Thelong-termloansarere-classifiedtonon-currentliabilityduewithinoneyearintheperiod | |
2.Assetsandliabilitymeasuredbyfairvalue
√Applicable□Notapplicable
InRMB
(1)Assetsandliabilitymeasuredbyfairvalue2019-6-30
Inputvalueusedforfairvaluemeasurement
| Inputvalueusedforfairvaluemeasurement | |||||||
| Activemarketquotation | Importantobservableinputvalue | Importantun-observableinputvalue | Total | ||||
| (1stLevel) | (2ndLevel) | (3rdLevel) | |||||
| ReceivablesFinancing | - | 325,439,580.18 | - | 325,439,580.18 | ||||
| Otherequityinstrumentinvestment | - | - | 13,685,760.00 | - | 13,685,760.00 | |||
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 339,125,340.18 | 140,000,000.00 | 479,125,340.18 |
2019-1-1
| Inputvalueusedforfairvaluemeasurement | |||||||
| Activemarketquotation | Importantobservableinputvalue | Importantun-observableinputvalue | Total | ||||
| (1stLevel) | (2ndLevel) | (3rdLevel) | |||||
| ReceivablesFinancing | - | 567,775,275.40 | - | 567,775,275.40 | ||||
| Otherequityinstrumentinvestment | - | - | 13,685,760.00 | - | 13,685,760.00 | |||
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 581,461,035.40 | 140,000,000.00 | 721,461,035.40 |
(2)Assetsandliabilityreleasedbyfairvalue
2019-1-1
| Inputvalueusedforfairvaluemeasurement | ||||||
| Activemarketquotation | Importantobservableinputvalue | Importantun-observableinput | Total | |||
value
| value | ||||
| (1stLevel) | (2ndLevel) | (3rdLevel) |
| Long-termloans | - | 31,600,000.00 | - | 31,600,000.00 |
3.Assetsrightrestrictiontillendofreportingperiod
Nil
V.Investment
1.Overallsituation
√Applicable□NotapplicableDuringthereportingperiod,thecompanynewlyestablishedsubsidiaries,includingSinopharmHoldingGuodaDrugstoreBayannao’erCo.,Ltd.(80%ofshareholdingratio),InnerMongoliaGuodaPharmaceuticalsCo.,Ltd.(100%ofshareholdingratio),andSinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.(51%ofshareholdingratio).Atthesametime,duringthereportingperiod,thecompanyparticipatedina30%stakeinShanghaiRenbeiPharmacyCo.,Ltd.anda10%stakeinGuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.Forspecificinvestment,pleaserefertonote(VIII)ofthefinancialreport.
2.Themajorequityinvestmentobtainedinthereportingperiod
□Applicable√Notapplicable
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√NotapplicableTheCompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√NotapplicableTheCompanyhasnoderivativesinvestmentinthePeriod
VI.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTherearenomajorassetssellintheperiod
2.Salesofmajorequity
□Applicable√NotapplicableVII.AnalysisofmainholdingCompanyandstock-jointlycompanies
√Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%
InRMB
Company
name
| Companyname | Type | Mainbusiness | Registercapital | Totalassets | NetAssets | Operatingrevenue | Operatingprofit | Netprofit |
| SinopharmHoldingGuodaDrugstoreCo.,Ltd. | Subsidiary | "Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemicalmedicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&export | 1,683,333,333.00 | 10,847,813,404.32 | 5,177,131,809.42 | 6,107,899,231.32 | 251,957,080.15 | 186,189,865.75 |
oftechnology"
| oftechnology" | ||||||||
| SinopharmHoldingGuangzhouCo.,Ltd. | Subsidiary | "Salesofdrugs,medicalapparatusandinstruments,freightage,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing" | 3,553,249,393.17 | 14,292,376,683.43 | 4,222,799,887.46 | 14,142,231,556.01 | 353,918,899.20 | 261,515,224.79 |
| SinopharmHoldingGuangxiCo.,Ltd. | Subsidiary | "Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts" | 521,407,965.79 | 4,109,137,774.54 | 1,013,776,482.33 | 3,140,863,905.65 | 114,052,144.85 | 97,976,493.68 |
Particularaboutsubsidiariesobtainedordisposedinreportperiod
√Applicable□Notapplicable
| Company | Themethodofobtainingandhandlingsubsidiariesduringthereportperiod | Theinfluencetothewholeproductionandperformance |
| SinopharmHoldingGuodaDrugstoreBayanNurCo.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| InnerMongoliaGuodaMedicineCo.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.
| SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
NotesofmainholdingCompanyandstock-jointlycompanies
VIII.StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableIX.PredictionofbusinessperformancefromJanuary–September2019Estimationonaccumulativenetprofitfromthebeginningoftheyeartotheendofnextreportperiodtobelossprobablyorthewarningofitsmaterialchangecomparedwiththecorrespondingperiodofthelastyearandexplanationonreason
□Applicable√NotapplicableX.Risksandcountermeasures
1.ThemanagementrisksinsustainableexpansionofmarketingnetworkofGuodaDrugstoreThemarketingnetworkofGuodaDrugstorehasmaintainedstablegrowthtrendinrecentyearsthroughnewlyopenedstoresandextendedmergers.Theexpansionofsalesareaandincreaseofstoreshavebroughtpressureonthesiteselection,distribution,cashmanagement,marketingandhumanresourcemanagementofthestoresofGuodaDrugstore.TheCompanywillstrengthenthemanagementandconstructioninmerchandiseprocurement,logisticsanddistribution,marketingandotherlinksandestablishcorrespondingmanagementmethodsforeachlinksoastoensuretheunifiedstandardsandmanagementqualityforstoreexpansion.
2.RisksofintensifyingmarketcompetitionAtpresent,themarketconcentrationratioofdomesticpharmaceuticalretailmarketindustryisrelativelylow,andthenationalandregionalpharmaceuticalretailenterpriseshavefiercemarketcompetition.Asthecountrycontinuestointroducecorrespondingpoliciestoencouragetheintegrationofpharmaceuticalretailindustry,themajorpharmaceuticalretailenterprisesintheindustryhaveacceleratedthepaceofmergersandacquisitions,andcontinuedtoexpandthemarketingnetworks,improvethelogisticscenterconstructions,andinnovatethebusinessandprofitmodelssothatthesalesscaleandcomprehensivestrengthcontinuouslystrengthen.Atthesametime,withtheupgradingofconsumptionandthegradualopeningofmarket,thedistributionenterpriseswithpowerfulstrengthareenteringthedomesticpharmaceuticaldistributionmarketsthroughavarietyofways,sotheindustrycompetitionisfurtherintensifying.SinopharmAccordwillintegratetheexistingresources,createatwo-wheeldrivedevelopmentmodelwithintegrationofbothwholesaleandretail,deeplygivefullplaytosynergisticeffect,strengthenoperation,directlyfacetheendpatientsandconsumersbyvarietiescomplementation,capitalcooperation,supplychaincollaboration,internationalizationpromotion,strengtheningtheoverallplanningofinformationtechnologyandinvestmentinscienceandtechnology,andothermeasures,andachievebrandglobalizationthroughcapitaloperation.
3.RisksofchangesinindustrypolicyThedevelopmentofpharmaceuticalretailindustryisregulatedandinfluencedbytherelevantnationalpolicies.ThestatehaspromulgatedaseriesofdocumentssuchasGoodSupplyPracticeforPrescriptionProductsandSomeOpinionsonFurtherReformandImprovementofDrugProduction,CirculationandUsePolicy,whichputforwardspecificrequirementstotheindustryoperation.Alongwiththegradualincreaseofmanagementstandardsformanagementstandard,theregulationsareconstantlybeingrevisedandimprovedandputforwardhigherrequirementstothebusinessoperations.Inaddition,withthepromotionandimplementationofthenewmedicalreform,thestatehasimplementedtheessentialmedicinesystem,publichospitalreform,drugcentralizedprocurementbiddingsystemandtaxreductionpolicyforanticancerdrugsthroughoutthecountry,andrepeatedlyintroducedpoliciestoreducethedrugretailpriceceilinginordertoreducetheburdenofdruguse.IfthepoliciesintroducedintheprocessofimplementingnewmedicalreformimposerestrictionsontheindustrialdevelopmentandtheproductpriceofretailDrugstores,theoperationandprofitabilityofGuodaDrugstoremayhavetofacesomechallenges.TheSinopharmAccordhasactivelystudiedthepolicydirection,positivelyadjustedortransformedtheinnovativebusinessmodel,andfullyimplementedcompliancemanagement,strengthenedpolicyriskpreventionandcontrol,andensuredthesoundqualityofoperations.
4.RisksoffacingthehorizontalcompetitionInthepharmaceuticalretailfield,SinopharmGroup’saffiliateddistributionsubsidiarieshavealsoopenedsomesocialretailpharmacies,whichconstituteacertaindegreeofhorizontalcompetitionwiththesubordinateGuodaDrugstore.SinopharmGroupandSinopharmhavepledgedtotakeeffectivemeasurestoresolvethepossiblehorizontalcompetition.
5.RiskofgoodwillimpairmentsOnJune30,2019,thebookvalueofgoodwillintheCompany’sconsolidatedfinancialstatementswasRMB847,041,800.60andwasallocatedtotheassetgroupsofdistributionbranchesandretailbranches.TheCompanyconductsimpairmenttestongoodwillannuallyinaccordancewiththeprovisionsoftheAccountingStandardsforBusinessEnterprises.DisclosuresrelatingtotheimpairmentsofgoodwillaresetoutinNotesV.31and43andNotesVII.28ofthefinancialstatements
SectionV.ImportantEventsI.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting
1.Shareholders’GeneralMeetinginthereportperiod
Sessionofmeeting
| Sessionofmeeting | Type | Ratioofinvestorparticipation | Date | Dateofdisclosure | Indexofdisclosure |
| Firstextraordinarygeneralmeetingof2019 | Extraordinarygeneralmeeting | 62.79% | 2019-01-24 | 2019-01-25 | JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofFirstextraordinarygeneralmeetingof2019No.:2019-07 |
| AnnualGeneralMeetingof2018 | AGM | 65.67% | 2019-05-17 | 2019-05-18 | JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofAGMof2018No.:2019-26 |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√NotapplicableII.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyear.III.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
| Commitments | Promise | Typeofcommitments | Contentofcommitments | Commitmentdate | Commitmentterm | Implementation |
| Commitmentsin | Sinopharm | Commitment | Asalargepharmaceuticalcommercialenterprisewhose | 2005-06-2 | Long-term | Normally |
reportofacquisitionorequitychange
| reportofacquisitionorequitychange | Holding | ofshareholders | businessinvolvespharmaceuticalwholesaleandretail,SinopharmHoldingmayoverlapwiththeCompanyingeographicalsegmentationduringitsfuturebusinessdevelopment.Toavoidthepotentialpeercompetitionbroughtbysuchgeographicaloverlap,SinopharmHoldingundertakesthat,uponthetransferofsharesofSinopharmHoldingGuangzhouitheldtoAccordPharma,"1.itwillnotnewly-establishorbroadenwithinGuangdonganybusinessoperationthatactuallycompetewiththatofAccordPharma,orsetupanynewsubsidiariesorsubordinateenterpriseswhoengageinsuchbusiness.2.ItwillenterintobusinessdelineationwithAccordPharmaandSinopharmHoldingGuangzhou,therebygivingthethreepartiescleargeographicalareastocarryoutpharmaceuticalwholesaleandretailbusinesses,soastoavoidpotentialpeercompetition.Apartfromabove,SinopharmHoldingwillnolongernewly-establishanyenterprisethatmaycompetewithAccordPharmaintheproductionandR&Dofpharmaceuticalproducts."" | 1 | effective | implementing |
| Commitmentsinassetsreorganization | SinopharmGroupCo.,Ltd;ChinaNationalPharmaceuticalForeignTradeCorporation | Commitmentonrestrictedshares | "SinopharmGroupandSinopharmForeignTrademadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Within6monthsafterthecompletionofthistransaction,iftheclosingpriceofthestockofSinopharmAccordislessthantheissuepriceincontinuous20tradingdays,ortheclosingpriceattheendof6monthsafterthecompletionofthistransactionislessthantheissueprice,thelockupperiodofthestockofSinopharmGroupandSinopharmForeignTradeobtainedfromSinopharmAccordbythistransactionwillautomaticallyprolongatleast6months.ThesharesderivedfromstockdividendsallocationandcapitalreserveincreasetransferringofSinopharmAccordbasedonthenon-publicofferingofsharesofSinopharmAccordobtainedbythistransactionshouldalsoabidebytheabovestockrestrictedarrangements." | 2016-05-31 | 36months | Normallyimplementing |
| Ping’anAssets | Commitmentonrestricted | "PingAnAssetManagementCo.,Ltd.madecommitmentsintheReportaboutChinaNationalAccord | 2016-05-31 | 36months | Normallyimplementing |
ManagementCo.,Ltd
| ManagementCo.,Ltd | shares | MedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Afterplacementcompleted,thesharesofthelistedCompanyincreasedduetobonussharesandturningtoincreasecapitalshouldpursuittotherestrictionarrangementtheabovementioned. | |||
| ChinaNationalAccordMedicinesCorporationLtd. | Performancecommitmentandcompensationarrangement | "SinopharmAccordmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyZhijunPharmaceuticalin2016,2017and2018shouldberespectivelynolessthanRMB222,671,700.00,RMB232,561,600.00,andRMB241,878,700.00;thenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyZhijunPharmacyTradein2016,2017and2018shouldberespectivelynolessthanRMB2,379,600.00,RMB2,335,100.00,andRMB2,345,600.00;thenetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossescommittedbyPingshanPharmaceuticalin2016,2017and2018shouldberespectivelynolessthanRMB39,716,300.00,RMB43,033,500.00,andRMB50,325,500.00.Iftheactualnetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlossesofZhijunPharmaceutical/ZhijunPharmacyTrade/PingshanPharmaceuticaldon’treachthecommittednetprofitsattributabletotheownersofparentcompanyafterdeductingthenon-recurringgainsandlosses,SinopharmAccordshouldcompensateinaccordancewiththestipulationsoftheProfitForecastCompensationAgreementfortheStockIssuanceandAssetsPurchase." | 2016-05-31 | 2018-12-31 | Completed |
| ChinaNationalAccordMedicines | Othercommitments | "ThelistedCompany,controllingshareholders,theactualcontrollersmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsand | 2016-05-31 | Long-termeffective | Normallyimplementing |
CorporationLtd.;SinopharmGroupCo.,Ltd;Sinopharm
| CorporationLtd.;SinopharmGroupCo.,Ltd;Sinopharm | RelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallnotviolatetherelevantregulationsofArticle16inSecuritiesIssuanceandUnderwritingManagementApproach,anddirectlyorindirectlyprovidingfinancialassistanceorcompensationforthesubscriptionobjectsanditsshareholders/partners/clients(ifany)ofthisnon-publicofferingdoesnotexistandwillnotoccurinthefuture." | ||||
| Ping’anAssetsManagementCo.,Ltd | Othercommitments | "PingAnAssetManagementCo.,Ltd.hasmadecommitmentsthattheunitintendstoutilizePingAnAssetXinxiangNo.3assetmanagementproductandPingAnAssetXinxiangNo.7assetmanagementproducttofundandsubscribesomenon-publicofferingofsharesofSinopharmAccordinthismajorassetrestructuringprocess,andhastheabilitytosubscribetheshares,therelevantcapitalsourcesarelegitimate,thereisnohierarchicalincomeandotherstructuredarrangements,andthereisnouseofleveragedfunds.TheunitdoesnotreceivefinancialassistanceorcompensationfromSinopharmAccordanditscontrollingshareholders,ortheactualcontrollers.Theinvestors’structureofabove-mentionedproductsdoesnotchangefromtheissuedateofthecommitmentlettertotheenddateofthelockupperiodofthestockthattheunitsubscribesfromSinopharmAccord." | 2016-03-24 | Long-termeffective | Normallyimplementing |
| SinopharmGroupCo.,Ltd | Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation | "SinopharmGroupmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbethecontrollingshareholderofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas"thisreorganization"),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthis | 2016-12-28 | Long-termeffective | Normallyimplementing |
reorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmHoldingGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusiness
opportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):
(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."
| opportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange." | |||||
| ChinaNationalPharmaceuticalGroupCorporation | Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation | "SinopharmmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbetheactualcontrollerofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas"thisreorganization"),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmGroupGuodaPharmacyCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasing | 2016-12-28 | Long-termeffective | Normallyimplementing |
orcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange."
| orcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedbunationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange." | ||||||
| Commitmentsmakeininitialpublicoffering | SinopharmHolding | Commitmentofshareholders | SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toAvoidHorizontalCompetition:"First,theCompanyand | 2013-09-05 | Long-termeffective | Controllingshareholderisimplementin |
orre-financing
| orre-financing | theCompany’swholly-owned,controllingorotherenterpriseswithactualcontrol(inadditiontoSinopharmAccordanditscontrollingenterprises,hereinafterthesame)don’thavebusinessesandoperationsconstitutingthesubstantialhorizontalcompetitiontoSinopharmAccordanditscontrollingenterprises.Second,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitiesinGuangdongandGuangxiwhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalbusinessservices.Third,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitieswhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalindustrybusinesses.Fourth,theCompanyshallnottakeadvantageofthecontroltoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordandothershareholders(especiallymediumandsmallshareholders).Thiscommitmentlettertakeseffectfromtheissuedate,andremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord." | realearnest,SinopharmAccordwillactivelyurgethecontrollingshareholderandactualcontrollertofulfillcommitments | ||||
| SinopharmHolding | Commitmentofshareholders | SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:"First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany("relatedparty"forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsofthe | 2013-09-05 | Long-termeffective |
relatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteestoparticipateintheshareholders'generalmeeting,equallyexercisethecorrespondingrightsandtakethecorrespondingobligationsinaccordancewiththeconstitutionsofSinopharmAccord,nottotakeadvantageofcontrollingshareholderstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord."
| relatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteestoparticipateintheshareholders'generalmeeting,equallyexercisethecorrespondingrightsandtakethecorrespondingobligationsinaccordancewiththeconstitutionsofSinopharmAccord,nottotakeadvantageofcontrollingshareholderstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord." | |||||
| ChinaNationalPharmaceuticalGroupCorporation | Commitmentofactualcontroller | SinopharmmadecommitmentsintheCommitmentLetterAboutChinaNationalPharmaceuticalGroupCorporationtoAvoidHorizontalCompetitionwithChinaNationalAccordMedicinesCorporationLtd.:"First,inthenextfiveyears,Sinopharmplanstotakeappropriatemeasures(includingassetsreplacementoracquisition,equityreorganization,etc.)toresolvethehorizontalcompetition | 2013-10-16 | Long-termeffective | Controllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurge |
betweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord."
| betweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord." | thecontrollingshareholderandactualcontrollertofulfillcommitments | ||||
| ChinaNationalPharmaceuticalGroupCorporation | Commitmentofactualcontroller | SinopharmmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:"First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany("relatedparty"forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessof | 2013-09-22 | Long-termeffective |
thepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord.
| thepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord. | |||
| Completedontime(Y/N) | Y | ||
IV.Appointmentandnon-reappointment(dismissal)ofCPA
Financialreporthasbeenauditornot
□Yes√NoNotbeenaudited.V.ExplanationfromBoardofDirectors,SupervisoryCommitteefor"QualifiedOpinion"thatissuedbyCPA
□Applicable√NotapplicableVI.ExplanationfromtheBoardfor"QualifiedOpinion"oflastyear’s
□Applicable√NotapplicableVII.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinPeriod.
VIII.LawsuitsMateriallawsuitsandarbitration
□Applicable√NotapplicableNosignificantlawsuitsandarbitrationoccurredinthereportingperiod.OtherlawsuitsAsofthedateofdisclosingthisreport,theCompanyhas25casesofcontractdisputesinthedailyoperation,withtotalamountofRMB85,067,800involved;threecasesofintellectualpropertyrightdispute,involvingatotalamountofRMB15,300,000;andonecaseofequitytransferdispute,involvingatotalamountofRMB32,913,800.Thetotalamountinvolvedintheabove29caseswasRMB133,281,600,whichneitherformedtheexpectedliabilities,norhadaneffectonnormaloperationandmanagementoftheCompany.IX.Penaltyandrectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinPeriod.X.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers
√Applicable□NotapplicableInthereportingperiod,integrityoftheCompanyanditscontrollingshareholdersandactualcontrollersisgoodandtheydonothavearelativelylargeamountofdueexistingdebtwithcourt'seffectivejudgments.
XI.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableTheCompanyhasnoequityincentiveplan,employeestockownershipplansorotheremployeeincentivesinPeriod.XII.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
(1)Relatedtransactionwithroutineoperationconcernedcanbefoundin"12.Relatedpartyandrelatedtransaction"carriedinSectionX.FinancialReport;
(2)Therelatedtransactionsaresettledincashandbynotes,accordingtothe"ProposalofExpectedRoutineRelatedTransactionswithSubordinateEnterpriseforYearof2019"wasdeliberatedandapprovedby10
thsessionof8
th
BODheldon23April2019and"AnnouncementonExpectedRoutineRelatedTransactionforYearof2019"(NoticeNo.:2019-18)releasedon25April2019,in2019,relatedsalestakes34.61%intotalexpectedamountforthewholeyear,andrelatedprocurementtakes38.47%intotalexpectedamountforthewholeyear.
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√NotapplicableNorelatedtransactionsbyassetsacquisitionandsoldfortheCompanyinreportingperiod.
3.Relatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod.
4.Contactofrelatedcreditanddebt
√Applicable□NotapplicableWhethertheCompanyhadnon-operatingcontactofrelatedcreditanddebt
□Yes√NoTheCompanyhadnonon-operatingcontactofrelatedcreditanddebtinthereportingperiod.
5.Otherrelatedtransactions
□Applicable√NotapplicableTheCompanyhadnootherrelatedtransactionintheperiod.
XIII.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.XIV.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√NotapplicableNotrusteeshipfortheCompanyinreportingperiod.
(2)Contract
□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod.
(3)Leasing
□Applicable√Notapplicable
NoleasingfortheCompanyinreportingperiod.
2.Majorguarantees
√Applicable□Notapplicable
(1)Guarantees
In10thousandYuan
ParticularsabouttheexternalguaranteeoftheCompany(Barringtheguaranteeforsubsidiaries)
| ParticularsabouttheexternalguaranteeoftheCompany(Barringtheguaranteeforsubsidiaries) | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening(Dateofsigningagreement) | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| GuaranteebetweentheCompanyandthesubsidiaries | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening(Dateofsigningagreement) | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2019-04-25 | 15,000 | 2019-05-20 | 10,105.66 | Jointliabilityassurance | 2019.5.20-2020.5.20 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2019-04-25 | 50,000 | 2019-05-31 | 50,000 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-09-19 | 60,000 | 2018-12-20 | 45,242.22 | Jointliabilityassurance | 2018.12.20-2019.12.19 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-09-19 | 25,000 | 2019-01-18 | 24,889.43 | Jointliabilityassurance | 2019.1.18-2020.1.17 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-03-22 | 15,000 | 2018-08-07 | Jointliabilityassurance | 2018.8.7-2019.8.6 | N | N | |
SinopharmHoldingGuangzhouCo.,Ltd.
| SinopharmHoldingGuangzhouCo.,Ltd. | 2019-04-25 | 70,000 | 2019-05-20 | 50,523.89 | Jointliabilityassurance | 2019.5.20-2020.5.19 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-09-19 | 5,000 | 2019-01-25 | Jointliabilityassurance | 2019.1.25-2020.1.24 | N | N | |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-09-19 | 35,000 | 2018-10-15 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N | |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-03-22 | 40,000 | 2018-06-05 | 39,761.38 | Jointliabilityassurance | 2018.6.5-2019.6.4 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-03-22 | 20,000 | 2018-06-22 | 5,326.67 | Jointliabilityassurance | 2018.6.22-2019.4.30 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-03-22 | 20,000 | 2018-07-05 | 5,485.17 | Jointliabilityassurance | 2018.7.5-2019.7.4 | N | N |
| SinopharmHoldingGuangzhouCo.,Ltd. | 2018-03-22 | 60,000 | 2018-06-13 | 17,438.73 | Jointliabilityassurance | 2018.6.13-2019.6.12 | N | N |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 2019-04-25 | 2,500 | 2019-05-20 | Jointliabilityassurance | 2019.5.20-2020.5.20 | N | N | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 2018-09-19 | 5,000 | 2018-10-15 | 4,195.13 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 2019-04-25 | 10,000 | 2019-05-31 | 8,888.96 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N |
| Sinopharm | 2018-03-22 | 5,000 | 2018-07-12 | 4,964.97 | Jointliability | 2018.7.12-20 | N | N |
HoldingGuangdongYuexingCo.,Ltd.
| HoldingGuangdongYuexingCo.,Ltd. | assurance | 19.6.12 | ||||||
| SinopharmHoldingDongguanCo.,Ltd. | 2018-09-19 | 2,000 | 2018-10-15 | 1,000 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingFoshanCo.,Ltd. | 2018-09-19 | 1,500 | 2018-10-15 | 36.16 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingFoshanCo.,Ltd. | 2018-09-19 | 1,000 | 2018-11-20 | 600.71 | Jointliabilityassurance | 2018.11.20-2019.11.19 | N | N |
| SinopharmHoldingFoshanCo.,Ltd. | 2019-04-25 | 3,000 | 2019-05-31 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N | |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | 2018-09-19 | 3,000 | 2018-11-09 | 1,868.89 | Jointliabilityassurance | 2018.11.16-2019.10.31 | N | N |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | 2018-03-22 | 5,000 | 2018-06-06 | 393.52 | Jointliabilityassurance | 2018.6.6-2019.6.5 | N | N |
| SinopharmHoldingHuizhouCo.,Ltd. | 2018-09-19 | 1,000 | 2018-10-12 | 415.6 | Jointliabilityassurance | 2018.10.12-2019.10.11 | N | N |
| SinopharmHoldingHuizhouCo.,Ltd. | 2018-03-22 | 3,000 | 2018-09-18 | Jointliabilityassurance | 2018.9.18-2019.9.17 | N | N | |
| SinopharmHolding(Jiangmen)Co.,Ltd. | 2018-09-19 | 1,000 | 2018-10-15 | 993.53 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingMeizhouCo.,Ltd. | 2018-09-19 | 1,000 | 2018-10-15 | 500 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| FoshanNanhaiPharmaceuticalCo.,Ltd. | 2018-03-22 | 5,000 | 2018-07-31 | Jointliabilityassurance | 2018.7.31-2019.7.31 | N | N | |
| FoshanNanhaiPharmaceutical | 2018-09-19 | 5,000 | 2018-10-15 | 1,133.85 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
Co.,Ltd.
| Co.,Ltd. | ||||||||
| FoshanNanhaiPharmaceuticalCo.,Ltd. | 2019-04-25 | 10,000 | 2019-05-31 | 6,019.69 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N |
| FoshanNanhaiPharmaceuticalCo.,Ltd. | 2018-09-19 | 3,000 | 2018-11-20 | 2,914.03 | Jointliabilityassurance | 2018.11.20-2019.11.19 | N | N |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 2018-03-22 | 5,000 | 2018-07-31 | Jointliabilityassurance | 2018.7.31-2019.7.31 | N | N | |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 2018-09-19 | 6,000 | 2018-10-15 | 1,499.92 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 2019-04-25 | 10,000 | 2019-05-31 | 4,409.75 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 2018-09-19 | 3,000 | 2018-11-20 | 1,901.75 | Jointliabilityassurance | 2018.11.20-2019.11.19 | N | N |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 2018-03-22 | 15,000 | 2018-07-01 | 13,353.98 | Jointliabilityassurance | 2018.7.1-2019.6.30 | N | N |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 2019-04-25 | 15,000 | 2019-05-27 | 12,543.48 | Jointliabilityassurance | 2019.5.27-2019.10.31 | N | N |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 2018-03-22 | 10,000 | 2018-07-02 | 9,144.56 | Jointliabilityassurance | 2018.7.2-2019.6.26 | N | N |
| GuangdongNanfangPharmaceutical | 2018-03-22 | 10,000 | 2018-09-07 | 5,522.15 | Jointliabilityassurance | 2018.9.7-2019.9.6 | N | N |
ForeignTradeCo.,Ltd.
| ForeignTradeCo.,Ltd. | ||||||||
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 2018-09-19 | 3,000 | 2018-10-15 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N | |
| SinopharmHoldingShantouCo.,Ltd. | 2018-09-19 | 500 | 2018-10-15 | 500 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingZhanjiangCo.,Ltd. | 2018-09-19 | 1,000 | 2018-10-15 | 900 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingZhaoqingCo.,Ltd. | 2018-09-19 | 2,000 | 2018-10-15 | 165.06 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingZhongshanCo.,Ltd. | 2018-09-19 | 1,000 | 2018-10-15 | 994.71 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingZhuhaiCo.,Ltd. | 2018-09-19 | 1,000 | 2018-10-15 | 998.29 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 2018-03-22 | 4,000 | 2018-08-20 | 3,928.03 | Jointliabilityassurance | 2018.8.20-2019.8.19 | N | N |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 2018-09-19 | 5,000 | 2019-01-10 | 4,975.91 | Jointliabilityassurance | 2019.1.10-2020.1.9 | N | N |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 2019-04-25 | 2,000 | 2019-06-14 | 1,594.92 | Jointliabilityassurance | 2019.6.14-2020.6.13 | N | N |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 2019-04-25 | 5,000 | 2019-05-31 | 4,395.35 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | N |
| ChinaNationalAccordMedicines | 2018-09-19 | 20,000 | 2018-12-03 | 9,657.33 | Jointliabilityassurance | 2018.12.3-2019.11.27 | N | N |
CorporationLtd.
| CorporationLtd. | ||||||||
| SinopharmHoldingShenzhenJianminCo.,Ltd. | 2018-03-22 | 500 | 2018-10-15 | 450 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingShenzhenJianminCo.,Ltd. | 2018-09-19 | 1,000 | 2018-12-24 | Jointliabilityassurance | 2018.12.24-2019.12.24 | N | N | |
| SinopharmHoldingShenzhenMedicineCo.,Ltd | 2018-03-22 | 500 | 2018-10-15 | 57.12 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 2018-09-19 | 9,000 | 2018-10-15 | 2,500 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 2018-09-19 | 5,000 | 2018-12-03 | 3,980 | Jointliabilityassurance | 2018.12.03-2019.11.27 | N | N |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 2018-03-22 | 7,000 | 2018-06-20 | 4,500 | Jointliabilityassurance | 2018.06.13-2019.06.12 | N | N |
| SinopharmHoldingLiuzhouCo.,Ltd. | 2018-09-19 | 9,000 | 2018-10-15 | 5,600 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
| SinopharmHoldingLiuzhouCo.,Ltd. | 2019-04-25 | 10,000 | 2019-06-21 | 4,757.03 | Jointliabilityassurance | 2019.6.21-2020.6.20 | N | N |
| SinopharmHoldingLiuzhouCo.,Ltd. | 2018-09-19 | 6,000 | 2019-02-27 | 3,181.33 | Jointliabilityassurance | 2019.2.27-2020.2.26 | N | N |
| SinopharmHoldingLiuzhouCo.,Ltd. | 2018-09-19 | 5,000 | 2018-11-12 | 3,312.69 | Jointliabilityassurance | 2018.11.12-2019.11.11 | N | N |
| SinopharmHoldingLiuzhouCo.,Ltd. | 2018-03-22 | 9,000 | 2018-09-07 | 1,500.22 | Jointliabilityassurance | 2018.9.7-2019.9.5 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-09-19 | 20,000 | 2018-11-26 | 19,297.35 | Jointliabilityassurance | 2018.11.26-2019.11.26 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-03-22 | 28,000 | 2018-10-15 | 14,503.2 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
SinopharmHoldingGuangxiCo.,Ltd.
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-09-19 | 25,000 | 2018-11-15 | 12,298.67 | Jointliabilityassurance | 2018.11.15-2019.11.7 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-03-22 | 5,000 | 2018-06-22 | 4,151.95 | Jointliabilityassurance | 2018.6.22-2019.6.21 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-09-19 | 15,000 | 2018-12-13 | 8,583.45 | Jointliabilityassurance | 2018.12.13-2019.11.27 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-03-22 | 10,000 | 2018-06-20 | 8,645.37 | Jointliabilityassurance | 2018.6.20-2019.6.20 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-03-22 | 5,000 | 2018-06-05 | 2,999.62 | Jointliabilityassurance | 2018.6.5-2019.6.5 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2018-03-22 | 5,000 | 2018-06-05 | 4,347.42 | Jointliabilityassurance | 2018.6.5-2019.6.5 | N | N |
| SinopharmHoldingGuangxiCo.,Ltd. | 2019-04-25 | 10,000 | 2019-06-18 | 1,284.55 | Jointliabilityassurance | 2019.6.18-2020.6.18 | N | N |
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1) | 212,500 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(B2) | 703,506.95 | |||||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3) | 785,500 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4) | 465,133.35 | |||||
| Guaranteebetweenthesubsidiariesandthesubsidiaries | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening(Dateofsigningagreement) | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd. | 2018-09-19 | 2,000 | 2018-10-10 | 1,441.37 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
FujianGuodaDrugstoreChainCo.,Ltd.
| FujianGuodaDrugstoreChainCo.,Ltd. | 2018-03-22 | 2,275 | 2018-04-20 | 157.4 | Jointliabilityassurance | 2018.4.20-2019.4.19 | N | N |
| FujianGuodaDrugstoreChainCo.,Ltd. | 2019-04-25 | 5,000 | 2019-05-18 | 1,842.28 | Jointliabilityassurance | 2019.5.18-2020.5.17 | N | N |
| FujianGuodaDrugstoreChainCo.,Ltd. | 2019-04-25 | 2,000 | 2019-05-10 | 411.63 | Jointliabilityassurance | 2019.5.10-2020.5.9 | N | N |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 2018-09-19 | 8,000 | 2018-10-10 | 7,817.84 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 2018-09-19 | 2,400 | 2018-12-20 | Jointliabilityassurance | 2018.12.20-2019.12.19 | N | N | |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 2018-09-19 | 3,000 | 2018-10-09 | 2,395.71 | Jointliabilityassurance | 2018.10.9-2019.10.8 | N | N |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 2018-09-19 | 3,000 | 2018-09-28 | 2,275.98 | Jointliabilityassurance | 2018.9.28-2019.9.27 | N | N |
| TaishanSinopharmHoldingGuodaQunkangDrugstoreChainCo.,Ltd. | 2019-04-25 | 800 | 2019-06-02 | 168.15 | Jointliabilityassurance | 2019.6.2-2020.6.1 | N | N |
| SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd. | 2018-09-19 | 3,000 | 2018-10-10 | 1,541.39 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| ChinaNationalHebeiLerentangMedicineChain | 2018-09-19 | 3,000 | 2018-10-10 | 2,282.58 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
Co.,Ltd.
| Co.,Ltd. | ||||||||
| SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd. | 2018-03-22 | 3,000 | 2018-06-24 | 593.05 | Jointliabilityassurance | 2018.6.24-2019.6.23 | N | N |
| HunanGuodaMinshentangDrugstoreChainCo.,Ltd. | 2018-09-19 | 3,000 | 2018-10-10 | 1,286.61 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 2018-09-19 | 3,000 | 2018-10-10 | 961.87 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 2018-03-22 | 2,000 | 2018-04-01 | 980.71 | Jointliabilityassurance | 2018.4.1-2019.4.1 | N | N |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 2018-09-19 | 2,000 | 2018-09-28 | 1,396.64 | Jointliabilityassurance | 2018.9.28-2019.9.27 | N | N |
| BeijingJinxiangDrugstoreMedicineChainCo.,Ltd | 2018-09-19 | 4,000 | 2018-09-28 | 2,874.9 | Jointliabilityassurance | 2018.9.28-2019.9.27 | N | N |
| SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd. | 2018-09-19 | 1,000 | 2018-09-28 | 363 | Jointliabilityassurance | 2018.9.28-2019.9.27 | N | N |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 2018-03-22 | 3,000 | 2018-07-03 | 960.92 | Jointliabilityassurance | 2018.7.3-2019.7.2 | N | N |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 2019-04-25 | 3,000 | 2019-04-30 | 2,337.4 | Jointliabilityassurance | 2019.4.30-2020.4.29 | N | N |
| Sinopharm | 2018-09-19 | 8,000 | 2018-10-10 | 6,811.35 | Jointliability | 2018.10.10-2 | N | N |
HoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.
| HoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | assurance | 019.10.9 | ||||||
| NingxiaGuodaDrugstoreChainCo.,Ltd. | 2018-09-19 | 4,000 | 2018-10-16 | 1,606 | Jointliabilityassurance | 2018.10.16-2019.10.16 | N | N |
| SinopharmHoldingGuodaDrugstoreShandongCo.,Ltd. | 2018-09-19 | 4,000 | 2018-11-28 | 2,624.36 | Jointliabilityassurance | 2018.11.28-2019.11.27 | N | N |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | 2018-09-19 | 5,000 | 2018-10-16 | 2,500 | Jointliabilityassurance | 2018.10.16-2019.10.15 | N | N |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | 2019-04-25 | 6,000 | 2019-06-13 | 4,059 | Jointliabilityassurance | 2019.6.13-2020.6.12 | N | N |
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 2018-09-19 | 5,000 | 2018-11-21 | 3,168 | Jointliabilityassurance | 2018.11.21-2019.11.20 | N | N |
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 2018-09-19 | 4,000 | 2018-10-10 | 896.58 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-09-19 | 5,000 | 2018-11-28 | 4,279.37 | Jointliabilityassurance | 2018.11.28-2019.11.27 | N | N |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-03-22 | 10,000 | 2018-04-23 | 1,940.41 | Jointliabilityassurance | 2018.4.23-2019.4.22 | N | N |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-09-19 | 6,000 | 2018-10-15 | 2,884.52 | Jointliabilityassurance | 2018.10.15-2019.10.14 | N | N |
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-09-19 | 6,000 | 2018-11-17 | 3,070.04 | Jointliabilityassurance | 2018.11.17-2019.11.16 | N | N |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-09-19 | 15,000 | 2018-10-10 | 13,978 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd | 2018-09-19 | 3,000 | 2018-10-11 | 2,105.42 | Jointliabilityassurance | 2018.10.11-2019.10.10 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2019-04-25 | 6,000 | 2019-06-21 | 4,552.46 | Jointliabilityassurance | 2019.6.21-2020.6.20 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2018-09-19 | 7,000 | 2019-04-02 | 1,179.99 | Jointliabilityassurance | 2019.4.2-2020.4.1 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2018-09-19 | 4,900 | 2018-11-21 | 4,271.85 | Jointliabilityassurance | 2018.11.21-2019.11.20 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2019-04-25 | 5,600 | 2019-06-14 | 1,500.66 | Jointliabilityassurance | 2019.6.14-2020.6.13 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2018-03-22 | 5,000 | 2018-06-28 | 2,534.39 | Jointliabilityassurance | 2018.6.28-2019.6.27 | N | N |
| Sinopharm | 2019-04-25 | 3,000 | 2019-06-25 | Jointliability | 2019.6.25-20 | N | N |
HoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.
| HoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | assurance | 20.6.24 | ||||||
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2018-09-19 | 5,000 | 2018-10-10 | 4,997.5 | Jointliabilityassurance | 2018.10.10-2019.10.9 | N | N |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | 2018-09-19 | 3,000 | 2018-11-15 | Jointliabilityassurance | 2018.11.15-2019.11.14 | N | N | |
| SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd. | 2018-09-19 | 2,000 | 2018-09-28 | 9.47 | Jointliabilityassurance | 2018.9.28-2019.9.27 | N | N |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 2018-09-19 | 10,500 | 2019-01-09 | 5,862.34 | Jointliabilityassurance | 2019.1.9-2020.1.8 | N | N |
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd | 2018-09-19 | 5,000 | 2018-10-30 | Jointliabilityassurance | 2018.10.30-2019.10.30 | N | N | |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | 2018-09-19 | 6,000 | 2019-01-18 | 3,488.8 | Jointliabilityassurance | 2019.1.18-2020.1.17 | N | N |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | 2018-09-19 | 4,000 | 2019-02-19 | 1,000 | Jointliabilityassurance | 2019.2.19-2020.2.19 | N | N |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 2018-09-19 | 8,000 | 2019-04-02 | 53.98 | Jointliabilityassurance | 2019.4.2-2020.4.1 | N | N |
| Totalamountofapprovingguaranteeforsubsidiariesin | 31,400 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod | 171,617.77 | |||||
reportperiod(C1)
| reportperiod(C1) | (C2) | |||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3) | 214,475 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4) | 111,463.92 | |
| TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee) | ||||
| Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1) | 243,900 | Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2) | 875,124.72 | |
| Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3) | 999,975 | Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4) | 576,597.27 | |
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4) | 47.49% | |||
(2)Guaranteeoutsideagainsttheregulation
□Applicable√NotapplicableNoguaranteeoutsideagainsttheregulationinPeriod.
3.Othermaterialcontracts
□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod.XV.Socialresponsibility
1.MajorenvironmentprotectionThelistedCompanyanditssubsidiarywhetherbelongtothekeysewageunitsreleasedfromenvironmentalprotectiondepartmentvoluntarydisclosure
| Company/subsidiary | NameofMajorPollutantsandParticularPollutants | EmissionMethod | QuantityofDischargeOutlet | DistributionofDischargeOutlet | EmissionConcentration | ExecutedPollutantDischargeStandards | TotalEmissions | ApprovedTotalEmissions | ExcessiveDischarge |
| ChinaNationalZhijun | COD | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 15.91mg/L | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.521ton/year | 6.64ton/year | N/A |
ChinaNationalZhijun
| ChinaNationalZhijun | AmmoniaNitrogen | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 0.84mg/L | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.028ton/year | 0.7ton/year | N/A |
| ChinaNationalZhijun | Phosphate | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 0.035mg/L | DB44/26-2001Level1standardforthesecondperiod | 0.001ton/year | 0.0369ton/year | N/A |
| ChinaNationalZhijun | BOD | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 2.3mg/L | DB44/26-2002Level1standardforthesecondperiod | 0.075ton/year | 1.476ton/year | N/A |
| ChinaNationalZhijun | SS | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 7mg/L | DB44/26-2002Level1standardforthesecondperiod | 0.229ton/year | 4.428ton/year | N/A |
| ZhijunPingshan | COD | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 16.64mg/L | TheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002) | 0.5162ton/year | 2.16ton/year | N/A |
| ZhijunPingshan | AmmoniaNitrogen | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 0.768mg/L | TheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002) | 0.0239ton/year | 0.144ton/year | N/A |
| ZhijunPingshan | Totalphosphorus | TubeDischarge | 1 | 1Discharge | 0.1mg/L | TheClassIVwater(AmmoniaNitrogenupto | 0.0038ton/year | 0.0216ton/year | N/A |
OutletofWasteWater
| OutletofWasteWater | ClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002) | ||||||||
| ZhijunPingshan | BOD | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 2.86mg/L | TheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002) | 0.089ton/year | 0.432ton/year | N/A |
| ZhijunPingshan | SS | TubeDischarge | 1 | 1DischargeOutletofWasteWater | 8mg/L | TheClassIVwater(AmmoniaNitrogenuptoClassV)Standardin"Dischargestandardofwaterpollutantsinmixedpharmaceuticalindustry"(GB21908-2008)and"StandardofSurfacewaterenvironmentalquality"(GB3838-2002) | 0.25ton/year | 2.16ton/year | N/A |
| MainLuckPharmaceuticals | COD | TubeDischarge | 1 | DischargeOutletofWasteWater | 12mg/L | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.007ton/year | 0.053ton/year | N/A |
| MainLuckPharmaceuticals | AmmoniaNitrogen | TubeDischarge | 1 | DischargeOutletofWasteWater | 0．5mg/L | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.0003ton/year | 0.006ton/year | N/A |
| MainLuckPharmaceuticals | Phosphate | TubeDischarge | 1 | DischargeOutletofWasteWater | 0.05mg/l | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.00003ton/year | 0.0003ton/year | N/A |
| MainLuckPharmaceuti | BOD | TubeDischarge | 1 | DischargeOutletof | 10mg/L | DB44/26-2001LEVEL1STANDARDFORTHE | 0.006ton/year | 0.012ton/year | N/A |
cals
| cals | WasteWater | SECONDPERIOD | |||||||
| MainLuckPharmaceuticals | SS | TubeDischarge | 1 | DischargeOutletofWasteWater | 2mg/L | DB44/26-2001LEVEL1STANDARDFORTHESECONDPERIOD | 0.001ton/year | 0.037ton/year | N/A |
ConstructionandoperationofpollutionpreventionandcontrolfacilitiesTheabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedpollutionpreventionandcontrolfacilitiesforwastewater.Inthedailymanagementprocess,enterprisesestablishmanagementproceduresandoperatinginstructionsforenvironmentalprotectionfacilities,andensurethenormalandcompliantoperationofanti-pollutionfacilitiesthroughsystemimplementationandresponsibilityimplementation.Allenterprisesarecontinuouslyinvestingfundsandsteppingupthetransformationandimprovementofpollutionpreventionandcontrolfacilitiestoensurethestableoperationofpollutionpreventionfacilitiesandimprovethedisposalcapacityofenvironmentalprotectionfacilities.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativelicensesTheprojectsofallkeymonitoringunitshavecarriedoutenvironmentalimpactassessmentsandobtainedapprovals.Theprojectstobebuiltalsocarryouttherelevantadministrativereviewproceduresaccordingtothe"threesimultaneous"requirementsoftheenvironmentalprotectionfacilitiesoftheconstructionproject.EmergencyplanforenvironmentalemergenciesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveformulatedtheEmergencyPlanforEnvironmentalEmergenciesandreportedthemaccordingtotheregulatoryrequirementsofthelocalregulatoryauthorities.Accordingtothemanagementrequirementsoftheemergencyplan,thekeyunitsregularlycarryoutemergencyplandrillstofurtherprovidetheenterprises’emergencyresponsecapability.Environmentalself-monitoringschemeAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedenvironmentalself-detectionschemeandplan,andimplementedself-inspection,third-partydetectionandothermonitoringmethodsaccordingtothegovernmentrequirements.Relevantmonitoringdataandreportshavebeenarchivedandsaved.OtherenvironmentalinformationthatshouldbedisclosedTheabovetwocompaniesarejointstockcompaniesoftheCompany.TheCompanyanditsholdingsubsidiariesarenotlistedaskeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment.RelevantinformationonenvironmentprotectionNil
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
TheCompanytemporarilynottocarryoutatargetedpovertyalleviationintheperiod,andtherearenofollow-upplanseither.
XVI.Explanationonothersignificantevents
□Applicable√NotapplicableNoexplanationonothersignificanteventoftheCompanyinthePeriod.XVII.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
SectionVI.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital
1.ChangesinShareCapital
InShare
BeforetheChange
| BeforetheChange | Increase/DecreaseintheChange(+,-) | AftertheChange | |||||||
| Amount | Proportion | Newsharesissued | Bonusshares | Capitalizationofpublicreserve | Others | Subtotal | Amount | Proportion | |
| I.Restrictedshares | 65,498,153 | 15.30% | 65,498,153 | 15.30% | |||||
| 2.State-ownedlegalperson’sshares | 60,380,743 | 14.10% | 60,380,743 | 14.10% | |||||
| 3.Otherdomesticshareholding | 5,117,410 | 1.20% | 5,117,410 | 1.20% | |||||
| Including:Domesticlegalperson’sshares | 5,114,297 | 1.19% | 5,114,297 | 1.19% | |||||
| Domesticnaturepersonshares | 3,113 | 0.00% | 3,113 | 0.00% | |||||
| II.Unrestrictedshares | 362,628,830 | 84.70% | 362,628,830 | 84.70% | |||||
| 1.RMBOrdinaryshares | 307,744,355 | 71.88% | 307,744,355 | 71.88% | |||||
| 2.Domesticallylistedforeignshares | 54,884,475 | 12.82% | 54,884,475 | 12.82% | |||||
| III.Totalshares | 428,126,983 | 100.00% | 428,126,983 | 100.00% | |||||
Reasonsforsharechanged
□Applicable√NotapplicableApprovalofsharechanged
□Applicable√NotapplicableOwnershiptransferofsharechanged
□Applicable√NotapplicableProgressofsharesbuy-back
□Applicable√NotapplicableImplementationprogressofthereductionofrepurchasessharesbycentralizedbidding
□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
□Applicable√NotapplicableOtherinformationnecessarytodisclosefortheCompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changesofrestrictedshares
□Applicable√Notapplicable
II.Securitiesissuanceandlisting
□Applicable√NotapplicableIII.Numberofshareholdersandshare-holding
InShare
Totalcommonshareholdersatperiod-end
| Totalcommonshareholdersatperiod-end | 19,108 | Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)(seeNote8) | 0 | |||||||
| Particularsaboutsharesheldabove5%bycommonshareholdersortoptencommonshareholders | ||||||||||
| Shareholders | Natureofshareholder | Proportionofsharesheld | Numberofcommonsharesheldatperiod-end | Changesinreportingperiod | Amountofrestrictedcommonsharesheld | Amountofun-restrictedcommonsharesheld | Numberofsharepledged/frozen | |||
| Stateofshare | Amount | |||||||||
| SinopharmGroupCo.,Ltd | State-ownedcorporate | 56.06% | 239,999,991 | 55,057,700 | 184,942,291 | |||||
| HongKongSecuritiesClearingCompanyLtd | Overseascorporate | 4.33% | 18,521,557 | 0 | 18,521,557 | |||||
| HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD | Overseascorporate | 2.68% | 11,469,644 | 0 | 11,469,644 | |||||
| ChinaNationalPharmaceuticalForeignTradeCorp. | State-ownedcorporate | 1.24% | 5,323,043 | 5,323,043 | 0 | |||||
FidelityInvestmentManagement(HongKong)Limited-Client’sfund
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | Overseascorporate | 1.07% | 4,582,909 | 0 | 4,582,909 | |||
| ChinaUnitedPropertyInsuranceCompanyLimited–TraditionalInsuranceProducts | Domesticnonstate-ownedcorporate | 1.01% | 4,313,024 | 0 | 4,313,024 | |||
| #BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFund | Domesticnonstate-ownedcorporate | 0.96% | 4,118,716 | 0 | 4,118,716 | |||
| CentralHuijinInvestmentLtd. | State-ownedcorporate | 0.89% | 3,804,400 | 0 | 3,804,400 | |||
| Basicendowmentinsurancefund-portfolio1003 | Domesticnonstate-ownedcorporate | 0.77% | 3,294,334 | 0 | 3,294,334 | |||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | Overseascorporate | 0.76% | 3,246,061 | 0 | 3,246,061 | |||
| Explanationonassociatedrelationshipamongtheaforesaidshareholders | SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | |||||||
| Particularabouttoptencommonshareholderswithun-restrictsharesheld | ||||||||
| Shareholders | Amountofun-restrictcommonsharesheldat | Typeofshares | ||||||
period-end
| period-end | Type | Amount | |
| SinopharmGroupCo.,Ltd | 184,942,291 | RMBordinaryshares | 184,942,291 |
| HongKongSecuritiesClearingCompanyLtd | 18,521,557 | RMBordinaryshares | 18,521,557 |
| HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD | 11,469,644 | Domesticallylistedforeignshares | 11,469,644 |
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | 4,582,909 | RMBordinaryshares | 4,582,909 |
| ChinaUnitedPropertyInsuranceCompanyLimited–TraditionalInsuranceProducts | 4,313,024 | RMBordinaryshares | 4,313,024 |
| #BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFund | 4,118,716 | RMBordinaryshares | 4,118,716 |
| CentralHuijinInvestmentLtd. | 3,804,400 | RMBordinaryshares | 3,804,400 |
| Basicendowmentinsurancefund-portfolio1003 | 3,294,334 | RMBordinaryshares | 3,294,334 |
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 3,246,061 | Domesticallylistedforeignshares | 3,246,061 |
| BankofChina–HarvestMedicalCareSecuritiesInvestmentFund | 3,138,525 | RMBordinaryshares | 3,138,525 |
| Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders | ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | ||
| Explanationonshareholdersinvolvingmarginbusinessabouttoptencommonstockshareholderswithun-restrictsharesheld(ifapplicable)(seenote4) | BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFundholdssharesoftheCompanythroughmargintradingandnegotiablesecuritiesaccountthatis4,118,716sharesintotal. | ||
Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod
□Yes√No
Thetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.IV.Changesofcontrollingshareholdersoractualcontroller
Changesofcontrollingshareholdersinreportingperiod
□Applicable√NotapplicableChangesofcontrollingshareholdershadnochangeinreportingperiod.Changesofactualcontrollerinreportingperiod
□Applicable√NotapplicableChangesofactualcontrollerinreportingperiodhadnochangeinreportingperiod.
SectionVII.PreferredStock
□Applicable√NotapplicableTheCompanyhasnopreferredstockinreportingperiod.
SectionVIII.Directors,SupervisorsandSeniorExecutives
I.Changesofsharesheldbydirectors,supervisorsandseniorexecutives
□Applicable√NotapplicableSharesheldbydirectors,supervisorsandseniorexecutiveshavenochangesinreportingperiod,foundmoredetailsinAnnualReport2018.II.Resignationanddismissalofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
Name
| Name | Title | Type | Date | Reasons |
| LiuTianyao | ViceGeneralManager | Appointmentandremoval | 2019-01-11 | NewViceGeneralManager |
| MaZhanjun | Director | Election | 2019-01-24 | Newdirectorof8thBOD |
| MaZhanjun | Vicechairman | Election | 2019-01-31 | Newvicechairmanof8thBOD |
| SuWeiwei | Independentdirector | Election | 2019-01-24 | Newindependentdirectorof8thBOD |
| WuYijian | ChairmanofSupervisoryCommittee | Leavetheoffice | 2019-05-17 | Forworkadjustment,leavetheofficeofChairmanofSupervisoryCommittee |
| WenDeyong | Supervisor | Election | 2019-05-17 | Newsupervisorof8thSupervisoryCommittee |
| WenDeyong | ChairmanofSupervisoryCommittee | Election | 2019-07-10 | NewChairmanofSupervisoryCommitteeof8thSupervisoryCommittee |
SectionIX.CorporateBond
WhethertheCompanyhasacorporationbondsthatissuancepubliclyandlistedonstockexchangeandwithoutdueonthedatewhensemi-annualreportapprovedforreleasedorfailtocashinfullondueNo
SectionX.FinancialReport
I.Auditreports
Whetherthesemi-annualreportwasauditedornot
□Yes√NoThefinancialreportofthissemi-annualreportwasunaudited.II.FinancialStatement
StatementinFinancialNotesarecarriedinRMB/CNY
CONSOLIDATEDBALANCESHEET
Asat30June2019(ExpressedinRenminbiYuan)
ASSETS
| ASSETS | NoteV | 30June2019 | 31December2018 |
| Currentassets | |||
| Cashandbankbalances | 1 | 8,086,328,508.49 | 8,089,781,304.56 |
| Notesreceivable | 2 | 790,664,828.26 | 1,357,311,929.63 |
| Accountsreceivable | 3 | 11,826,440,731.59 | 9,336,861,647.92 |
| Receivablefinancing | 4 | 325,439,580.18 | - |
| Advancestosuppliers | 5 | 357,078,819.64 | 583,484,515.95 |
| Otherreceivables | 6 | 654,086,387.85 | 643,493,359.32 |
| Incl:Interestreceivable | 14,791,483.10 | 8,223,327.64 | |
| Inventories | 7 | 4,882,673,616.27 | 4,389,335,942.19 |
| Othercurrentassets | 8 | 97,317,287.60 | 95,347,629.18 |
| Totalcurrentassets | 27,020,029,759.88 | 24,495,616,328.75 |
| Non-currentassets | |||
| Long-termequityinvestments | 9 | 2,077,811,395.30 | 1,880,393,786.10 |
| Otherequityinstrumentsinvestment | 10 | 13,685,760.00 | 13,685,760.00 |
| Othernon-currentfinancialassets | 11 | 140,000,000.00 | 140,000,000.00 |
| Investmentproperties | 12 | 140,319,140.00 | 144,894,495.97 |
| Fixedassets | 13 | 593,552,480.99 | 607,933,827.67 |
| Constructioninprogress | 14 | 31,980,582.21 | 36,412,614.61 |
| Right-of-useassets | 15 | 1,910,981,197.63 | - |
| Intangibleassets | 16 | 320,522,690.59 | 319,207,126.15 |
| Goodwill | 17 | 847,041,800.60 | 833,547,800.60 |
| Long-termprepaidexpenses | 18 | 311,311,781.97 | 311,328,706.46 |
| Deferredtaxassets | 19 | 65,417,507.01 | 74,914,209.95 |
| Othernon-currentassets | 20 | 66,944,586.76 | 72,365,863.71 |
| Totalnon-currentassets | 6,519,568,923.06 | 4,434,684,191.22 |
| Totalassets | 33,539,598,682.94 | 28,930,300,519.97 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CONSOLIDATEDBALANCESHEET(Continued)
Asat30June2019(ExpressedinRenminbiYuan)
LIABILITIES
| LIABILITIES | NoteV | 30June2019 | 31December2018 |
| Currentliabilities | |||
| Short-termborrowings | 21 | 3,290,877,595.23 | 2,597,652,702.43 |
| Notespayable | 22 | 3,539,095,262.34 | 3,416,755,681.80 |
| Accountspayable | 23 | 8,088,697,602.94 | 6,468,535,961.17 |
| Advancesfromcustomers | - | - | |
| Employeebenefitspayable | 25 | 161,719,082.78 | 231,866,407.40 |
| Taxpayable | 26 | 215,579,001.83 | 241,980,412.72 |
| Otherpayables | 27 | 1,474,526,698.43 | 1,539,436,971.93 |
| Incl:Interestpayable | 29,012,444.93 | 21,906,660.63 | |
| Dividendspayable | 6,389,320.96 | 6,389,320.96 | |
| Contractliabilities | 24 | 239,739,020.90 | 255,590,612.37 |
| Non-currentliabilitiesduewithinoneyear | 28 | 558,296,784.75 | 5,861,324.37 |
| Othercurrentliabilities | 29 | 445,493.48 | 292,465.75 |
| Totalcurrentliabilities | 17,568,976,542.68 | 14,757,972,539.94 |
| Non-currentliabilities | |||
| Long-termborrowings | 30 | - | 31,600,000.00 |
| Leaseliabilities | 31 | 1,186,461,123.96 | - |
| Long-termpayables | 32 | 800,000.00 | 4,563,978.52 |
| Long-termemployeebenefitspayable | 33 | 1,915,000.00 | 2,050,000.00 |
| Deferredincome | 34 | 88,722,818.18 | 91,491,170.40 |
| Deferredtaxliabilities | 19 | 66,386,258.77 | 67,605,161.88 |
| Othernon-currentliabilities | 35 | 67,840,696.09 | 69,241,176.18 |
| Totalnon-currentliabilities | 1,412,125,897.00 | 266,551,486.98 |
| Totalliabilities | 18,981,102,439.68 | 15,024,524,026.92 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CONSOLIDATEDBALANCESHEET(Continued)
Asat30June2019(ExpressedinRenminbiYuan)
SHAREHOLDERS’EQUITY
| SHAREHOLDERS’EQUITY | NoteV | 30June2019 | 31December2018 |
| Shareholders’equity | |||
| Sharecapital | 36 | 428,126,983.00 | 428,126,983.00 |
| Capitalsurplus | 37 | 4,363,409,728.51 | 4,320,984,981.51 |
| Surplusreserve | 38 | 214,063,491.50 | 214,063,491.50 |
| Retainedearnings | 39 | 7,134,839,714.47 | 6,655,257,147.27 |
| Shareholders’equityattributabletoshareholdersoftheparent | 12,140,439,917.48 | 11,618,432,603.28 | |
| Non-controllinginterests | 2,418,056,325.78 | 2,287,343,889.77 |
| Totalshareholders’equity | 14,558,496,243.26 | 13,905,776,493.05 |
| Totalliabilitiesandshareholders’equity | 33,539,598,682.94 | 28,930,300,519.97 |
TheaccompanyingnotesformanintegralpartofthesefinancialstatementsThefinancialstatementshavebeensignedby:
Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:
CONSOLIDATEDINCOMESTATEMENTForthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
NoteV
| NoteV | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Operatingrevenue | 40 | 25,228,147,377.43 | 20,778,425,602.22 |
| Less:Operatingcosts | 40 | 22,415,519,952.87 | 18,367,643,723.84 |
| Taxandsurcharge | 41 | 62,139,226.44 | 56,620,527.25 |
| Sellingexpenses | 42 | 1,483,332,500.73 | 1,273,588,756.07 |
| Administrativeexpenses | 43 | 377,216,694.13 | 351,820,063.78 |
| Financecosts | 44 | 104,095,254.24 | 57,541,544.32 |
| Incl:Interestcost | 169,529,472.37 | 83,356,367.18 | |
| Interestincome | 60,630,036.91 | 23,082,233.56 | |
| Add:Otherincomes | 45 | 14,990,919.02 | 11,330,310.02 |
| Investmentincome | 46 | 169,142,289.99 | 162,693,771.35 |
| Incl:Investmentincomefromassociates | 169,142,289.99 | 162,662,271.35 | |
| Impairmentlossonfinancialassets | 47 | (11,434,101.13) | 1,026,702.24 |
| Impairmentlosses | 48 | (125,554.34) | (508,849.26) |
| Gainondisposalofassets | 49 | (29,725.44) | 4,281,164.61 |
| Operatingprofits | 958,387,577.12 | 850,034,085.92 | |
| Add:Non-operatingincome | 50 | 3,667,170.25 | 5,498,951.11 |
| Less:Non-operatingexpenses | 51 | 1,718,265.56 | 1,797,292.80 |
| Totalprofit | 960,336,481.81 | 853,735,744.23 | |
| Less:Incometaxes | 52 | 192,243,926.50 | 164,486,734.32 |
| Netprofit | 768,092,555.31 | 689,249,009.91 | |
| NetProfitfromcontinuingoperations | 768,092,555.31 | 689,249,009.91 |
| Netprofitattributabletoshareholdersoftheparent | 650,833,360.40 | 641,727,034.93 |
| Profitorlossofnon-controllinginterests | 117,259,194.91 | 47,521,974.98 |
| Totalcomprehensiveincome | 768,092,555.31 | 689,249,009.91 |
| Incl:Totalcomprehensiveincomefortheyearattributabletoownersoftheparent | 650,833,360.40 | 641,727,034.93 | |
| Totalcomprehensiveincomefortheyearattributabletonon-controllinginterests | 117,259,194.91 | 47,521,974.98 |
| Earningspershare | |||
| Basicearningspershare | 1.52 | 1.50 | |
| Dilutedearningspershare | 1.52 | 1.50 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
Forthesixmonthsended30
June2019
| Forthesixmonthsended30June2019 | Shareholders’equityattributabletoshareholdersoftheparent | Non-controllinginterests | Totalequity | |||||
| Sharecapital | Otherequityinstrument | Capitalsurplus | Surplusreserve | Retainedearnings | Subtotal | |||
| Closingbalanceoftheprecedingyear | 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 |
| others | - | - | - | - | - | - | - | - |
| Openingbalanceofthecurrentyear | 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 |
| Movementsinthecurrentyear | - | - | 42,424,747.00 | - | 479,582,567.20 | 522,007,314.20 | 130,712,436.01 | 652,719,750.21 |
| (1)Totalcomprehensiveincome | - | - | - | - | 650,833,360.40 | 650,833,360.40 | 117,259,194.91 | 768,092,555.31 |
| (2)Capitalpaidandreducedbyowners | - | - | 42,424,747.00 | - | - | 42,424,747.00 | 14,780,000.00 | 57,204,747.00 |
| 1.Capitalinjectionbyowners | - | - | - | - | - | - | 14,780,000.00 | 14,780,000.00 |
| 2.Others | - | - | 42,424,747.00 | - | - | 42,424,747.00 | - | 42,424,747.00 |
| (3)Profitdistribution | - | - | - | - | (171,250,793.20) | (171,250,793.20) | (1,326,758.90) | (172,577,552.10) |
| 1.Distributiontoequityowners | - | - | - | - | (171,250,793.20) | (171,250,793.20) | (1,326,758.90) | (172,577,552.10) |
| 2.Others | - | - | - | - | - | - | - | - |
| Closingbalanceofthecurrentyear | 428,126,983.00 | - | 4,363,409,728.51 | 214,063,491.50 | 7,134,839,714.47 | 12,140,439,917.48 | 2,418,056,325.78 | 14,558,496,243.26 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
Forthesixmonthsended30
June2018
| Forthesixmonthsended30June2018 | Shareholders’equityattributabletoshareholdersoftheparent | Non-controllinginterests | Totalequity | |||||
| Sharecapital | Otherequityinstrument | Capitalsurplus | Surplusreserve | Retainedearnings | Subtotal | |||
| Closingbalanceoftheprecedingyear | 428,126,983.00 | - | 3,181,429,064.99 | 214,063,491.50 | 5,572,952,806.39 | 9,396,572,345.88 | 530,930,411.26 | 9,927,502,757.14 |
| others | - | - | - | - | - | - | - | - |
| Openingbalanceofthecurrentyear | 428,126,983.00 | - | 3,181,429,064.99 | 214,063,491.50 | 5,572,952,806.39 | 9,396,572,345.88 | 530,930,411.26 | 9,927,502,757.14 |
| Movementsinthecurrentyear | - | - | 397,342.21 | - | 513,288,940.03 | 513,686,282.24 | 37,434,714.46 | 551,120,996.70 |
| (1)Totalcomprehensiveincome | - | - | - | - | 641,727,034.93 | 641,727,034.93 | 47,521,974.98 | 689,249,009.91 |
| (2)Capitalpaidandreducedbyowners | - | - | 397,342.21 | - | - | 397,342.21 | 26,721,512.76 | 27,118,854.97 |
| 1.Capitalinjectionbyowners | - | - | - | - | - | - | 24,381,200.00 | 24,381,200.00 |
| 2.Others | - | - | 397,342.21 | - | - | 397,342.21 | 2,340,312.76 | 2,737,654.97 |
| (3)Profitdistribution | - | - | - | - | (128,438,094.90) | (128,438,094.90) | (36,808,773.28) | (165,246,868.18) |
| 1.Distributiontoequityowners | - | - | - | - | (128,438,094.90) | (128,438,094.90) | (36,808,773.28) | (165,246,868.18) |
| 2.Others | - | - | - | - | - | - | - | - |
| Closingbalanceofthecurrentyear | 428,126,983.00 | - | 3,181,826,407.20 | 214,063,491.50 | 6,086,241,746.42 | 9,910,258,628.12 | 568,365,125.72 | 10,478,623,753.84 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CONSOLIDATEDCASHFLOWSTATEMENT
Forthesixmonthsended30June2019(ExpressedinRenminbiYuan)
NoteV
| NoteV | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodorrenderingof
services
| Cashreceivedfromsalesofgoodorrenderingofservices | 25,674,088,675.82 | 22,055,082,715.59 | |
| Taxrefunds | 2,721,287.63 | 1,593,193.21 | |
| Cashreceiptsrelatedtootheroperatingactivities | 53 | 295,482,211.20 | 311,984,787.60 |
| Sub-totalofcashinflowsfromoperatingactivities | 25,972,292,174.65 | 22,368,660,696.40 |
| Cashpaidforgoodsandservices | 22,598,237,854.68 | 19,799,894,631.80 | |
| Cashpaidtoandonbehalfofemployees | 1,088,230,430.51 | 956,322,585.28 | |
| Cashpaidforalltypesoftaxes | 627,174,776.80 | 548,616,793.36 | |
| Cashpaymentsrelatedtootheroperatingactivities | 53 | 494,891,531.31 | 838,468,976.76 |
| Sub-totalofcashoutflowsfromoperatingactivities | 24,808,534,593.30 | 22,143,302,987.20 | |
| Netcashflowsfromoperatingactivities | 54 | 1,163,757,581.35 | 225,357,709.20 |
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceivedfromreturnsoninvestments
| Cashreceivedfromreturnsoninvestments | 20,129,463.78 | 78,825,446.85 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 801,205.52 | 6,064,099.87 |
| Cashreceiptsrelatedtootherinvestingactivities | 53 | - | 48,766,145.15 |
| Sub-totalofcashinflowsfrominvestingactivities | 20,930,669.30 | 133,655,691.87 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
NoteV
| NoteV | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 111,399,813.51 | 97,867,494.61 | |
| Cashpaidforacquisitionofinvestments | 43,674,685.30 | 10,000,000.00 | |
| Cashpaymentsrelatedtootherinvestingactivities | 53 | 1,093,125.00 | 43,999,800.00 |
| Sub-totalofcashoutflowsfrominvestingactivities | 156,167,623.81 | 151,867,294.61 |
| Netcashflowsfrominvestingactivities | (135,236,954.51) | (18,211,602.74) |
3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers
| Cashproceedsfrominvestmentsbyothers | 14,780,000.00 | 11,781,200.00 | |
| Incl:Cashreceivedfromcapitalcontributionsfromnon-controllingshareholdersofsubsidiaries | 14,780,000.00 | 11,781,200.00 | |
| Cashreceivedfromborrowings | 16,700,000.00 | 40,775,440.04 | |
| Cashreceiptsrelatedtootherfinancingactivities | 53 | 3,512,659.71 | 83,745,164.60 |
| Sub-totalofcashinflowsfromfinancingactivities | 34,992,659.71 | 136,301,804.64 |
| Cashrepaymentsfordebts | 73,261,634.53 | 79,670,200.30 | |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 343,055,058.89 | 226,149,759.15 | |
| Incl:Profitanddividendspaidtonon-controllingshareholdersofsubsidiaries | 1,326,758.90 | 40,392,215.98 | |
| Cashpaymentsrelatedtootherfinancingactivities | 53 | 510,162,167.74 | 118,725,719.23 |
| Sub-totalofcashoutflowsfromfinancingactivities | 926,478,861.16 | 424,545,678.68 |
| Netcashflowsfromfinancingactivities | (891,486,201.45) | (288,243,874.04) |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
NoteV
| NoteV | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | (176,567.25) | 314,863.47 |
| 5.NETINCREASEINCASHANDCASHEQUIVALENTS | 54 | 136,857,858.14 | (80,782,904.11) |
| Add:Cashandcashequivalentsatbeginningoftheyear | 7,632,117,020.77 | 3,673,498,691.48 |
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 54 | 7,768,974,878.91 | 3,592,715,787.37 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYBALANCESHEET
Asat30June2019(ExpressedinRenminbiYuan)
ASSETS
| ASSETS | NoteXIV | 30June2019 | 31December2018 |
| Currentassets | |||
| Cashandbankbalances | 2,210,653,256.99 | 1,817,654,598.01 | |
| Notesreceivable | 70,539,252.94 | 63,870,980.39 | |
| Accountsreceivable | 1 | 610,075,622.91 | 631,236,593.94 |
| Advancestosuppliers | 3,875,346.87 | 4,760,182.00 | |
| Otherreceivables | 2 | 1,858,484,572.60 | 1,541,980,883.50 |
| Incl:Interestreceivable | 14,926,690.76 | 7,550,877.07 | |
| Dividendsreceivable | 106,074,898.00 | - | |
| Inventories | 225,040,528.88 | 158,166,185.65 | |
| Othercurrentassets | 39,482.38 | 39,482.38 |
| Totalcurrentassets | 4,978,708,063.57 | 4,217,708,905.87 |
| Non-currentassets | |||
| Long-termequityinvestments | 3 | 7,639,715,544.55 | 7,432,906,692.24 |
| Othernon-currentfinancialassets | 140,000,000.00 | 140,000,000.00 | |
| Investmentproperties | 1,635,946.12 | 1,955,854.46 | |
| Fixedassets | 19,952,922.05 | 21,362,422.03 | |
| Right-of-useassets | 6,316,333.03 | - | |
| Intangibleassets | 2,997,883.63 | 2,452,222.51 | |
| Long-termdeferredexpenses | 6,990,428.04 | 7,481,809.53 | |
| Othernon-currentassets | 7,000,000.00 | 7,000,000.00 |
| Totalnon-currentassets | 7,824,609,057.42 | 7,613,159,000.77 |
| Totalassets | 12,803,317,120.99 | 11,830,867,906.64 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYBALANCESHEET(Continued)
Asat30June2019(ExpressedinRenminbiYuan)
LIABILITIES
| LIABILITIES | 30June2019 | 31December2018 |
| Currentliabilities | |||
| Short-termborrowings | 570,000,000.00 | 539,000,000.00 | |
| Notespayable | 321,344,616.65 | 252,317,800.78 | |
| Accountspayable | 547,918,074.90 | 442,049,241.22 | |
| Contractliabilities | 9,058,538.51 | 4,182,083.40 | |
| Employeebenefitspayable | 34,702,315.82 | 36,233,563.12 | |
| Taxpayables | 11,430,926.20 | 13,426,601.90 | |
| Otherpayables | 1,729,610,132.84 | 1,481,817,856.56 | |
| Incl:Interestpayable | 5,588,978.10 | 1,354,592.35 | |
| Non-currentliabilitiesduewithinoneyear | 32,452,757.27 | - | |
| Othercurrentliabilities | 208,701.01 | 226,427.99 |
| Totalcurrentliabilities | 3,256,726,063.20 | 2,769,253,574.97 |
| Non-currentliabilities | |||
| Long-termborrowings | - | 31,600,000.00 | |
| Leaseliabilities | 5,584,622.27 | - | |
| Long-termpayables | 800,000.00 | 800,000.00 | |
| Long-termemployeebenefitspayable | 102,000.00 | 118,000.00 | |
| Deferredincome | 1,508,786.84 | 1,687,899.50 | |
| Deferredtaxliabilities | 1,635,298.63 | 2,298,426.39 |
| Totalnon-currentliabilities | 9,630,707.74 | 36,504,325.89 |
| Totalliabilities | 3,266,356,770.94 | 2,805,757,900.86 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYBALANCESHEET(Continued)
Asat30June2019(ExpressedinRenminbiYuan)
SHAREHOLDERS’EQUITY
| SHAREHOLDERS’EQUITY | 30June2019 | 31December2018 |
| Shareholders’equity | |||
| Sharecapital | 428,126,983.00 | 428,126,983.00 | |
| Capitalsurplus | 4,468,787,524.26 | 4,426,362,777.26 | |
| Surplusreserves | 214,063,491.50 | 214,063,491.50 | |
| Retainedearnings | 4,425,982,351.29 | 3,956,556,754.02 |
| Totalshareholders’equity | 9,536,960,350.05 | 9,025,110,005.78 |
| Totalliabilitiesandshareholders’equity | 12,803,317,120.99 | 11,830,867,906.64 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYINCOMESTATEMENTForthesixmonthsended30June2019(ExpressedinRenminbiYuan)
NoteXIV
| NoteXIV | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Operatingrevenue | 4 | 2,008,004,563.30 | 1,687,621,355.83 |
| Less:Operatingcosts | 4 | 1,921,272,394.76 | 1,614,717,473.91 |
| Taxandsurcharge | 2,519,247.99 | 2,016,368.93 | |
| Sellingexpenses | 31,052,044.81 | 25,894,795.45 | |
| Administrativeexpenses | 38,056,806.31 | 33,679,106.75 | |
| Financecosts | (28,398,244.00) | (19,369,880.08) | |
| Incl:Interestcost | 23,271,307.72 | 20,770,113.43 | |
| Interestincome | 52,479,722.42 | 40,925,200.74 | |
| Add:Otherincomes | 332,764.13 | 1,299,345.14 | |
| Investmentincome | 5 | 608,288,420.47 | 534,840,744.46 |
| Incl:Investmentincomefromassociates | 181,280,533.11 | 173,326,290.14 | |
| Impairmentlossonfinancialassets | (2,365,765.08) | 7,411.02 | |
| Impairmentlosses | (102,112.84) | (630,953.33) | |
| Gainondisposalofassets | (26,074.52) | - |
| Operatingprofits | 649,629,545.59 | 566,200,038.16 | |
| Add:Non-operatingincome | 46,069.40 | 33.08 | |
| Less:Non-operatingexpenses | - | 127,688.63 |
| Totalprofit | 649,675,614.99 | 566,072,382.61 | |
| Less:Incometaxes | 8,999,224.52 | 6,292,873.84 |
| Netprofit | 640,676,390.47 | 559,779,508.77 | |
| NetProfitfromcontinuingoperations | 640,676,390.47 | 559,779,508.77 |
| Totalcomprehensiveincome | 640,676,390.47 | 559,779,508.77 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
Forthesixmonthsended30
June2019
| Forthesixmonthsended30June2019 | Sharecapital | Otherequityinstruments | Capitalsurplus | Surplusreserve | Retainedearnings | Totalequity |
| Closingbalanceoftheprecedingyear | 428,126,983.00 | - | 4,426,362,777.26 | 214,063,491.50 | 3,956,556,754.02 | 9,025,110,005.78 |
| Others | - | - | - | - | - | - |
| Openingbalanceofthecurrentyear | 428,126,983.00 | - | 4,426,362,777.26 | 214,063,491.50 | 3,956,556,754.02 | 9,025,110,005.78 |
| Movementsinthecurrentyear | - | - | 42,424,747.00 | - | 469,425,597.27 | 511,850,344.27 |
| (1)Totalcomprehensiveincome | - | - | - | - | 640,676,390.47 | 640,676,390.47 |
| (2)Capitalpaidandreducedbyowners | - | - | 42,424,747.00 | - | - | 42,424,747.00 |
| 1.Capitalinjectionbyowners | - | - | - | - | - | - |
| 2.Others | - | - | 42,424,747.00 | - | - | 42,424,747.00 |
| (3)Profitdistribution | - | - | - | - | （171,250,793.20） | （171,250,793.20） |
| 1.Distributiontoowners | - | - | - | - | （171,250,793.20） | （171,250,793.20） |
| Closingbalanceofthecurrentyear | 428,126,983.00 | - | 4,468,787,524.26 | 214,063,491.50 | 4,425,982,351.29 | 9,536,960,350.05 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY(Continued)
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
Forthesixmonthsended30June
2018
| Forthesixmonthsended30June2018 | Sharecapital | Otherequityinstruments | Capitalsurplus | Surplusreserve | Retainedearnings | Totalequity |
| Closingbalanceoftheprecedingyear | 428,126,983.00 | - | 4,407,091,484.13 | 214,063,491.50 | 3,329,412,821.48 | 8,378,694,780.11 |
| Others | - | - | - | - | - | - |
| Openingbalanceofthecurrentyear | 428,126,983.00 | - | 4,407,091,484.13 | 214,063,491.50 | 3,329,412,821.48 | 8,378,694,780.11 |
| Movementsinthecurrentyear | - | - | 397,342.21 | - | 431,341,413.87 | 431,738,756.08 |
| (1)Totalcomprehensiveincome | - | - | - | - | 559,779,508.77 | 559,779,508.77 |
| (2)Capitalpaidandreducedbyowners | - | - | 397,342.21 | - | - | 397,342.21 |
| 1.Capitalinjectionbyowners | - | - | - | - | - | - |
| 2.Others | - | - | 397,342.21 | - | - | 397,342.21 |
| (3)Profitdistribution | - | - | - | - | (128,438,094.90) | (128,438,094.90) |
| 1.Distributiontoowners | - | - | - | - | (128,438,094.90) | (128,438,094.90) |
| Closingbalanceofthecurrentyear | 428,126,983.00 | - | 4,407,488,826.34 | 214,063,491.50 | 3,760,754,235.35 | 8,810,433,536.19 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYCASHFLOWSTATEMENTForthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
Forthesixmonthsended30June2019
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
1.CASHFLOWSFROMOPERATINGACTIVITIES
Cashreceivedfromsalesofgoodorrenderingof
services
| Cashreceivedfromsalesofgoodorrenderingofservices | 2,136,424,520.77 | 1,787,065,555.60 | |
| Cashreceiptsrelatedtootheroperatingactivities | 18,658,823.82 | 43,943,301.92 |
| Sub-totalofcashinflowsfromoperatingactivities | 2,155,083,344.59 | 1,831,008,857.52 |
| Cashpaidforgoodsandservices | 1,905,147,658.61 | 1,655,107,446.18 | |
| Cashpaidtoandonbehalfofemployees | 48,424,818.87 | 44,855,325.83 | |
| Cashpaidforalltypesoftaxes | 27,913,893.13 | 18,706,775.51 | |
| Cashpaymentsrelatedtootheroperatingactivities | 17,265,038.12 | 36,183,479.25 |
| Sub-totalofcashoutflowsfromoperatingactivities | 1,998,751,408.73 | 1,754,853,026.77 |
| Netcashflowsfromoperatingactivities | 156,331,935.86 | 76,155,830.75 |
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceivedfromreturnsofinvestments
| Cashreceivedfromreturnsofinvestments | 55,106,832.79 | 187,137,437.23 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 119,000.00 | - | |
| Cashreceiptsrelatedtootherinvestingactivities | 996,340,000.00 | 857,940,000.00 |
| Sub-totalofcashinflowsfrominvestingactivities | 1,051,565,832.79 | 1,045,077,437.23 |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 5,983,680.11 | 6,044,462.78 | |
| Cashpaidforinvestments | - | 10,000,000.00 | |
| Cashpaymentsrelatedtootherinvestingactivities | 1,200,340,000.00 | 1,051,642,980.00 |
| Sub-totalofcashoutflowsfrominvestingactivities | 1,206,323,680.11 | 1,067,687,442.78 |
| Netcashflowsfrominvestingactivities | (154,757,847.32) | (22,610,005.55) |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
COMPANYCASHFLOWSTATEMENT(Continued)
Forthesixmonthsended30June2019
(ExpressedinRenminbiYuan)
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceivedfromborrowings
| Cashreceivedfromborrowings | 10,000,000.00 | 10,000,000.00 | |
| Cashreceiptsrelatedtootherfinancingactivities | 11,037,461,719.13 | 8,065,884,436.80 |
| Sub-totalofcashinflowsfromfinancingactivities | 11,047,461,719.13 | 8,075,884,436.80 |
| Cashrepaymentsfordebts | 10,000,000.00 | 10,000,000.00 | |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 182,679,899.11 | 144,898,008.66 | |
| Cashpaymentsrelatedtootherfinancingactivities | 10,463,180,682.33 | 8,230,488,300.78 | |
| Sub-totalcashoutflowsfromfinancingactivities | 10,655,860,581.44 | 8,385,386,309.44 |
| Netcashflowsfromfinancingactivities | 391,601,137.69 | (309,501,872.64) |
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | (176,567.25) | 314,863.47 |
| 5.NETINCREASEINCASHANDCASHEQUIVALENTS | 392,998,658.98 | (255,641,183.97) | |
| Add:Cashandcashequivalentsatbeginningoftheyear | 1,817,654,598.01 | 1,776,696,342.87 |
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 2,210,653,256.99 | 1,521,055,158.90 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements
NotestofinancialstatementsForthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IProfileoftheCompany
(1)HistoricaldevelopmentandbasicinformationAsapprovedbythePeople’sGovernmentofShenzhen(SFBF(1993)No.356),ChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasthe“theCompany”),formerlyknownasShenzhenHealthMineralWaterCorp.,Ltd.,wasregisteredasajointstockliabilitylimitedcompanyon1February1993throughstocktransformation.InMarch1993,withtheapprovalfromtheShenzhenBranchofthePeople’sBankofChina,theCompanyissued30millionAshares(including16.5millionpublicshares,3.5millionemployeesharesand10millioncorporationshares)and20millionBshares.Afterthisissuance,theCompany’ssharecapitalwasRMB105million.Throughconvertcapitalsurplusintosharecapital,bonusissuesandissuanceofsharesforyears,thesharecapitaloftheCompanyincreasedtoRMB428,126,983asat30June2019.InNovember2000,theCompanyenteredintoanAssetsExchangeAgreementwithShenzhenInvestmentManagementCompany,theoriginalmajorshareholderoftheCompany,toexchangealltheassetsandliabilitiesoftheCompanyasof31August2000forShenzhenInvestmentManagementCompany’s100%equityinterestsin11pharmaceuticalcompaniesandcertainpropertiesaswellas51%equityinterestsinShenzhenTefaModernComputerCo.,Ltd.TheaboveassetsexchangeproposalwasapprovedbyshareholdersintheSecondExtraordinaryGeneralMeetingonDecember29,2000.Thetransactionwascompletedon8January2001.On18February2004,theCompany’soriginalmajorshareholder,ShenzhenInvestmentManagementCompany,enteredintoaStockTransferAgreementwithSinopharmGroupCo.,Ltd.(hereinafterreferredtoas“SinopharmGroup”)totransferits43.33%sharesintheCompanytoSinopharmGroup.Thelegalproceduresoftheaboveequitytransferwerecompletedon9December2004.Atthesametime,asapprovedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(GZCQ(2004)No.525)andtheChinaSecuritiesRegulatoryCommission(ZJGSZ(2004)No.94),thenatureoftheseshareswaschangedfromstate-ownedstocktostate-ownedlegalentitystockandSinopharmGroupbecamethelargestshareholderoftheCompany.On14April2006,theCompany’sproposalonreformationofsegregatedstockswasapproved.TogainliquidityfortherestrictedstocksoftheCompany,theholdersoftherestrictedstocksoftheCompanyagreedtopaythefollowingconsideration:basedonthestockregistrationasof27April2006,theCompanyissuedbonusshareson28April2006attheratioof3sharestoevery10AsharestoliquidatedA-shareholderswhichwentpubliconthesameday.Afterthisbonusissue,thetotalnumberofsharesoftheCompanyremainedunchangedwithcorrespondingchangesinthecompositionofshareholdings.OnMarch142014,thecompanyissued74,482,543ordinaryshares(Ashares)throughthenon-publicoffering.ParvaluepershareisRMB1yuan.Thesharesshallnotbetransferredwithin36monthssincetheissuedday.ThetotalnumberofsharesoftheCompanywas362,631,943sincethedateofissue.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IProfileoftheCompany(Continued)
(1)Historicaldevelopmentandbasicinformation(Continued)Asof31October2016,thecompanyissuedRMB65,495,040.00ordinaryshares(Ashares)throughthenon-publicoffering.ParvaluepershareisRMB1yuan.Throughthenon-publicoffering,theCompanyacquiredthecompaniesundercommoncontrol,includingSinopharmHoldingGuodaPharmacyCo.,Ltd.(“GuodaPharmacy”),FoshanNanhaiMedicineGroupCo.,Ltd.(“FoshanNanhai”),GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.(“SouthPharma&Trade),GuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(“GuangdongUptodate&SpecialMedicines”)byissuingsharesandraisedsupportingfundsbyissuingsharestoPingAnAssetManagementCo.,Ltd.(“PingAnAssetManagement”)toacquirenon-controllinginterestofSouthPharma&Trade.Therelevantsharesweresuccessfullyissuedandlistedon5January2017.Asof30June2019,thetotalsharecapitalwasRMB428,126,983.TheCompanyisregisteredwithShenzhenAdministrationforIndustry&Commerce.ItsUniformSocialCreditCodeis91440300192186267U.TheoperationperiodoftheCompanyisfrom2August1986tothelongterm.TheregisteredcapitaloftheCompanyisRMB428,126,983.ThelegalrepresentativeoftheCompanyisLinZhaoxiong.TheapprovedscopeofbusinessoftheCompanyanditssubsidiaries(together“theGroup”)includes:
thewholesaleoftraditionalChinesemedicinepreparations,bulkpharmaceuticaldrugs,chemicalpreparations,bulkantibioticdrugs,antibioticpreparations,biochemicaldrugs,biologicalproducts(includingvaccinesandinvitrodiagnosticreagentspsychotropicdrugsandpreparations,narcoticdrugs,toxicdrugsformedicaluse,proteinassimilationpreparationandpeptidehormones;tradeofdietarysupplement;research,developmentandconsultationservicesofpharmaceuticalpackagingmaterialsandpharmaceuticalindustryproducts;industrialinvestmentholding;domestictrade;materialsupplyandmarketingindustry(otherthanspeciallicensing);saleofambulances;tradeofsecond-classandthird-classmedicalequipment;projectinvestment;propertymanagementandleaseofself-ownedproperties;pharmacovigilanceandmedicalinformationconsulting;parkingoperation;logisticsandrelatedservices;packageagencybusiness;logisticdesign;importandexportservices(excludingprojectsthatareprohibitedbythecountry;limitedprojectshastobeapprovedbeforeoperating).
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IProfileoftheCompany(Continued)
(2)TheGroup’sparentandultimateparentcompanyisSinopharmGroupandChinaNational
PharmaceuticalGroupCorporationrespectively.
(3)ThesefinancialstatementswereauthorizedforissuebytheboardofdirectorsoftheCompany
on22August2019.
(4)SubsidiariesconsolidatedinthefinancialstatementsforthecurrentperiodandchangeintheconsolidationscopeareshowninNoteVI.IIBasisofpreparationThefinancialstatementswerepreparedinaccordancewiththeBasicStandardandspecificstandardsoftheAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceon15February2006andthespecificaccountingstandardsandtherelevantregulationsissuedthereafter(hereaftercollectivelyreferredtoasthe“AccountingStandardsforBusinessEnterprises”or“CAS”),andthedisclosurerequirementsinthePreparationConventionofInformationDisclosurebyCompaniesOfferingSecuritiestothePublicNo.15–GeneralRulesonFinancialReportingissuedbytheChinaSecuritiesRegulatoryCommission.Thesefinancialstatementsarepreparedonagoingconcernbasis.Exceptforcertainfinancialinstruments,thefinancialstatementshavebeenpreparedusinghistoricalcostastheprincipleofmeasurement.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.TheGrouphasmadeaccountingpoliciesandaccountingestimatesaccordingtoitsownoperationandproductioncharacteristics,whicharemainlyreflectedinthebaddebtprovisionforaccountsreceivable(NoteⅢ
(10)),inventorycostingmethods(NoteⅢ
(13)),depreciationmethodsforfixedassetsandamortizationmethodforintangibleassets(NoteⅢ
(18),NoteⅢ
(22)),judgementbasisforcapitalizationofdevelopmentcosts(NoteⅢ
(22)),impairmentoflong-termassets(NoteⅢ
(23)),revenuerecognition(NoteⅢ
(30)).
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates
(1)StatementofcompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementsoftheCompanyfortheyearended30June2019areincompliancewithAccountingStandardsforBusinessEnterprises,andtrulyandcompletelypresentthefinancialpositionoftheGroupandtheCompanyasof30June2019andtheoperatingresults,cashflowsandotherinformationforthesixmonthsended30June2019oftheGroupandtheCompany.
(2)AccountingyearTheCompany’saccountingyearstartson1Januaryandendson31December.
(3)FunctionalcurrencyThefunctionalcurrencyisRenminbi(RMB).
(4)Businesscombinations(a)BusinesscombinationsinvolvingentitiesundercommoncontrolAssetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingshareholder’sacquisitionofthepartybeingabsorbed)thatareobtainedbytheabsorbingpartyinabusinesscombinationshallbemeasuredattheircarryingamountsatthecombinationdateasrecordedbythepartybeingabsorbed.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)shallbeadjustedtosharepremiumundercapitalsurplus.Ifthecapitalsurplusisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Thetransactioncostsofissuingequitysecuritiesordebtsecuritiesforabusinesscombinationarerecognizedattheinitialrecognitionamountofequitysecuritiesordebtsecurities.(b)BusinesscombinationsinvolvingenterprisesnotundercommoncontrolThecostofcombinationandidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationaremeasuredatfairvalueattheacquisitiondate.Wherethecostofthecombinationexceedstheacquirer’sinterestinthefairvalueoftheacquirer’sidentifiablenetassets,thedifferenceisrecognizedasgoodwill;wherethecostofcombinationislowerthantheacquirer’sinterestinthefairvalueoftheacquirer’sidentifiablenetassets,thedifferenceisrecognizedinprofitorlossforthecurrentperiod.Costsdirectlyattributabletothecombinationareincludedinprofitorlossintheperiodinwhichtheyareincurred.Transactioncostsassociatedwiththeissueofequityordebtsecuritiesforthebusinesscombinationareincludedintheinitiallyrecognizedamountsoftheequityordebtsecurities.Wherethebusinesscombinationnotinvolvingenterprisesundercommoncontrolwhichisachievedinstages,theacquirer’spreviouslyheldequityinterestsintheacquireeareremeasuredatthefairvalueontheacquisitiondate,withthedifferencebetweenthefairvalueandcarryingamountrecognizedasinvestmentincomeforthecurrentperiod.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(4)Businesscombinations(Continued)(b)Businesscombinationsinvolvingenterprisesnotundercommoncontrol(Continued)Iftheacquirer’spreviouslyheldequityinterestsoftheacquireeinvolveothercomprehensiveincome(“OCI”)undertheequitymethod,theaccountingtreatmentisconductedonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities,andthechangesinshareholders’equityotherthannetprofitorloss,OCIandprofitdistributionsarechargedtoprofitorlossforthecurrentperiodontheacquisitiondate.ForfinancialassetsatfairvaluethroughOCIheldbeforetheacquisitiondate,changesinfairvaluethatwasaccumulatedthroughOCIwilltransfertoretainedearnings.
(5)PreparationofconsolidatedfinancialstatementsTheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyandallofitssubsidiaries.SubsidiariesareconsolidatedfromthedateonwhichtheGroupobtainscontrolandarede-consolidatedfromthedatethatsuchcontrolceases.Forasubsidiarythatisacquiredinabusinesscombinationinvolvingenterprisesundercommoncontrol,itisincludedintheconsolidatedfinancialstatementsfromthedatewhenit,togetherwiththeCompany,comesundercommoncontroloftheultimatecontrollingparty.Theportionofthenetprofitsrealizedbeforethecombinationdateispresentedseparatelyintheconsolidatedincomestatement.Inpreparingtheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsoftheCompanyandsubsidiariesareinconsistent,thefinancialstatementsofthesubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandtheaccountingperiodoftheCompany.Forsubsidiariesacquiredfrombusinesscombinationsinvolvingenterprisesnotundercommoncontrol,theindividualfinancialstatementsofthesubsidiariesareadjustedbasedonthefairvalueoftheidentifiablenetassetsattheacquisitiondate.Allsignificantintra-groupbalances,transactionsandunrealizedprofitsareeliminatedintheconsolidatedfinancialstatements.Theportionofasubsidiary’sequityandtheportionofasubsidiary’snetprofits,lossesandcomprehensiveincomefortheperiodnotattributabletotheCompanyarerecognizedasnon-controllinginterestsandpresentedseparatelyintheconsolidatedfinancialstatementswithinequity,netprofitsandtotalcomprehensiveincome,respectively.TheunrealizedgainorlossfromsellingassetstosubsidiariesfullyoffsetsthenetincomeattributabletoequityholdersoftheCompany.TheunrealizedgainorlossfrompurchasingassetsfromsubsidiariesoffsetsthenetincomeattributabletoequityholdersoftheCompanyandattributabletothenon-controllinginterestbythedistributionproportionregardingtheCompanyandthesubsidiary.TheunrealizedgainorlossfromatransactionbetweensubsidiariesoffsetsthenetincomeattributabletoequityholdersoftheCompanyandattributabletothenon-controllinginterestbythedistributionproportionregardingtheCompanyandthesellingsideofthesubsidiaries.Ifdifferentrecognitionperspectivesforthesametransactionarisewithindifferentaccountingidentitieswhicharesetup,thereisanadjustmentforthetransactionfromtheGroup’sperspective.
Notestofinancialstatements(Continued)
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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(5)Preparationofconsolidatedfinancialstatements(Continued)WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposaloftheequityinvestmentinsubsidiarieswherecontrolisretained.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognizedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
(6)CashandcashequivalentsCashandcashequivalentscomprisecashonhand,depositsthatcanbereadilydrawnondemand,andshort-termandhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandaresubjecttoaninsignificantriskofchangesinvalue.
(7)ForeigncurrencytranslationForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognizedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalizedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedatesofthetransactions.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.
(8)FinancialinstrumentsFinancialinstrumentsarethecontractsthatformedthefinancialassetsofoneentity,andatthesametimeformedthefinancialliabilitiesorequityinstrumentsofotherentities.RecognitionandderecognitionoffinancialinstrumentsFinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
Recognitionandderecognitionoffinancialinstruments(Continued)TheGroupderecognisesafinancialasset,partofafinancialassetorgroupoffinancialassets,i.e.,offsetfromtheaccountsandstatementoffinancialposition,ifeitherofthefollowingconditionsissatisfied:
(i)Thecontractualrightstothecashflowsfromthefinancialassetexpire;or(ii)Thecontractualrightstothecashflowsfromthefinancialassetaretransferredout,orobligated
totransferoutallgeneratedcashflowsonreceipt;and(a)substantiallyalltherisksandrewards
ofownershipofthefinancialassetaretransferredtothetransferee;or(b)theGroupneither
transfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,
buthasnotretainedcontrolofthefinancialasset.TheGroupderecognisesafinancialliabilityonlywhentheunderlyingpresentobligationissettled,dischargedorexpired.Anagreementtoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferentterms,ortomodifytheoriginalfinancialliability’stermssubstantially,isaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.ThedifferencebetweenthecarryingamountofthefinancialliabilityDerecognizedandthenewfinancialliabilityshouldberecognisedinprofitorlossforthecurrentperiod.AllregularmeansofpurchasesorsalesoffinancialassetsarerecognisedandDerecognizedonatradedatebasis.Regularmeansofpurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliveryofassetswithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.TradedateisthedatethattheGroupcommitstopurchaseorsellthefinancialasset.
ClassificationandmeasurementoffinancialassetsAtinitialrecognition,theGroupclassifiesitsfinancialassetsinto:financialassetsatfairvaluethroughprofitorloss,financialassetsatamortisedcost,orfinancialassetsatfairvaluethroughothercomprehensiveincome,accordingtotheGroup’sbusinessmodelformanagingfinancialassetsandthecontractcashflowcharacteristicsofthefinancialassets.Financialassetsaremeasuredatfairvalueatinitialrecognition,providedthattradereceivablesorbillsreceivablenotcontainingsignificantfinancingcomponentsorforwhichfinancingcomponentsofnotmorethan1yeararenottakenintoconsiderationshallbemeasuredattheirtransactionpricesatinitialrecognition.Forfinancialassetsatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss;forotherfinancialassets,therelevanttransactioncostsarerecognisedintheirinitialrecognitionamount.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
Classificationandmeasurementoffinancialassets(Continued)Subsequentmeasurementdependsontheclassificationofthefinancialassets:
Financialassetsmeasuredatamortisedcost(debtinstruments)TheGroupmeasuresfinancialassetsatamortizedcostifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeofthiskindoffinancialassetsisrecognizedusingtheeffectiveinterestmethod.Gainsandlossesarerecognizedintheincomestatementwhentheassetisderecognized,modifiedorimpaired.Thesefinancialassetsmainlyincludecashandcashequivalents,billsreceivableandtradereceivables,otherreceivables,debtinvestmentandlong-termreceivables.Debtinvestmentsandlong-termreceivablesduewithinoneyearfromthebalancesheetdatearereportedbytheGroupascurrentportionofnon-currentassets,anddebtinvestmentsduewithinoneyearfromtheoriginalmaturitydatearereportedasothercurrentassets.Financialassetsatfairvaluethroughothercomprehensiveincome(debtinstruments)TheGroupmeasuresdebtinvestmentsatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectiveofbothholdingtocollectcontractualcashflowsandselling;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Changesinfairvaluesarerecognizedinothercomprehensiveincomeexceptthatinterestincome,impairmentlossesandexchangedifferencesarerecognizedincurrentprofitorloss.Uponderecognition,thecumulativefairvaluechangerecognisedinothercomprehensiveincomeistransferredtoprofitorloss.Suchfinancialassetsarereportedasotherdebtinvestment.Otherdebtinvestmentduewithinoneyearfromthebalancesheetdateisreportedasacurrentportionofnon-currentassetsandotherdebtinvestmentduewithinoneyearfromtheoriginalmaturitydateisreportedasanitemofothercurrentassets.Financialassetsdesignatedatfairvaluethroughothercomprehensiveincome(equityinvestments)TheGroupirrevocablychoosestodesignatesomenon-tradableequityinstrumentinvestmentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Onlyrelevantdividendincome(excludingdividendincomeexplicitlyrecoveredaspartofinvestmentcost)isrecognizedinprofitorloss,andsubsequentchangesinfairvalueareincludedinothercomprehensiveincomewithoutprovisionforimpairment.Whenfinancialassetsarederecognized,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensivegainsaretransferredfromothercomprehensiveincomeandrecognizedinretainedearnings.Suchfinancialassetsarereportedasotherequityinvestment.Ifoneofthefollowingconditionsismet,itisaheld-for-tradingfinancialasset:theacquisitionoftherelevantfinancialassetisintendedprimarilyforsaleorrepurchaseinthenearfuture;itisapartoftheportfolioofidentifiablefinancialinstrumentsundercentralizedmanagement,andthereisobjectiveevidencethattheshort-termprofitmodelisadoptedinthenearfuture;itisaderivative,exceptforaderivativethatisdesignatedasavalidhedginginstrument,otherthanaderivativethatcomplieswithafinancialguaranteecontract.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
Classificationandmeasurementoffinancialassets(Continued)FinancialassetsatfairvaluethroughprofitorlossFinancialassetsotherthantheabove-mentionedfinancialassetsatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Forsuchfinancialassets,fairvalueisusedforsubsequentmeasurement,andallchangesinfairvaluearerecognisedinprofitorloss.Suchfinancialassetsarepresentedasheld-for-tradingfinancialassetsandarepresentedasothernon-currentfinancialassetsiftheyexpireaftermorethanoneyearfromthebalancesheetdateorexpectedtobeheldmorethanoneyearfromthebalancesheetdate.Onlywhenanaccountingmismatchiseliminatedorsignificantlydecreased,financialassetsaredesignatedasfinancialassetsatfairvaluethroughprofitorlossatinitialrecognition.Whenanenterpriseinitiallydesignatesafinancialassetasafinancialassetatfairvaluethroughprofitorloss,itcannotbereclassifiedtootherfinancialassets;otherfinancialassetscannotbere-designatedafterinitialrecognitionasfinancialassetsmeasuredatfairvaluethroughprofitorloss.WhenandonlywhentheGroupchangesitsbusinessmodelofmanagingfinancialassets,itreclassifiesallrelevantfinancialassetsaffected.
ClassificationandmeasurementoffinancialliabilitiesOninitialrecognitionoffinancialliabilitiesoftheGroupareclassifiedasfinancialliabilitiesatfairvaluethroughprofitorloss,otherfinancialliabilitiesandderivativesdesignatedaseffectivehedginginstruments.Forfinancialliabilitiesatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognizedinprofitorloss,andtherelatedtransactioncostsofotherfinancialliabilitiesarerecognizedintheirinitialamount.Subsequentmeasurementoffinancialliabilitiesisdeterminedbyitsclassification:
FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossconsistofheldfortradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)andfinancialliabilitiesdesignatedoninitialrecognitionasfinancialliabilitiesatfairvaluethroughprofitorloss.Financialliabilitiesareheld-for-tradingfinancialliabilitiesifoneofthefollowingconditionsaremet:thepurposeofassumingrelatedfinancialliabilitiesismainlytosellorrepurchaseinthenearfuture;theyarepartofacentrallymanagedidentifiableportfoliooffinancialinstruments,andthereisobjectiveevidencethatenterpriseshaveadoptedashort-termprofitabilitymodelinthenearfuture;theyarederivatives,excludingderivativesthataredesignatedaseffectivehedginginstrumentsandderivativesthatmeetthefinancialguaranteecontract.Held-for-tradingfinancialliabilities(includingderivativesbelongingtofinancialliabilities)aresubsequentlymeasuredatfairvalue.Exceptforhedgingaccounting,allchangesinfairvaluearerecognizedinprofitorloss.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
Classificationandmeasurementoffinancialliabilities(Continued)Onlyifoneofthefollowingconditionsismetcanfinancialliabilitiesbedesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossoninitialrecognition:(1)Itcaneliminateorsignificantlyreducetheaccountingmismatch.(2)Theformalwrittendocumentofriskmanagementorinvestmentstrategyhasstatedthattheportfoliooffinancialinstrumentsismanaged,evaluatedandreportedtokeymanagersonthebasisoffairvalue.(3)Thefinancialliabilityisahybridinstrumentthatcontainsoneormoreembeddedderivatives,unlesstheembeddedderivativeshavenosignificantchangeinthecashflowsofthehybridinstrument,ortheembeddedderivativesshouldobviouslynotbeseparatedfromtherelatedhybridinstruments.(4)Mixedinstrumentscontainembeddedderivativesthatneedtobesplitbutcannotbemeasuredseparatelyatthetimeofacquisitionoronsubsequentbalancesheetdays.Forsuchfinancialliabilities,subsequentmeasurementsaremadeatfairvalue.ChangesinfairvaluecausedbychangesintheGroup’sowncreditriskarerecognizedinothercomprehensiveincome,whileotherchangesinfairvaluearerecognizedinprofitorloss.UnlesschangesinfairvaluecausedbychangesintheGroup'sowncreditriskrecognizedinothercomprehensiveincomemayresultinorexpandaccountingmismatchesinprofitorloss,theGroupshallrecognizeallchangesinfairvalue(includingtheamountofimpactofchangesinitsowncreditrisk)inprofitorloss.Whenanenterprisedesignatesafinancialliabilityasafinancialliabilityatfairvaluethroughprofitorloss,itcannotbereclassifiedasotherfinancialliabilities;norcanotherfinancialliabilitiesbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.OtherfinancialliabilitiesForsuchfinancialliabilities,subsequentmeasurementismadeatamortizedcostusingtheeffectiveinterestratemethod.
ImpairmentoffinancialassetsBasedonexpectedcreditlosses,theGroupundertakesimpairmenttreatmentandconfirmslossprovisionsoffinancialassetsatamortizedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeandfinancialguaranteecontracts.Creditlossreferstothedifferencebetweenthecashflowsofallcontractsdiscountedattheoriginaleffectiveinterestrateandtheexpectedcashflowsofallcontractsreceivable,i.e.thepresentvalueofallcashshortages.Amongthem,thefinancialassetspurchasedbyororiginatedfromtheGrouptowhichcreditimpairmenthasoccurredshallbediscountedattheeffectiveinterestrateadjustedbythecreditofthefinancialassets.Fortradereceivablesandcontractualassetsthatdonotcontainsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountofexpectedcreditlossesequivalenttotheentirelifecycle.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
Impairmentoffinancialassets(Continued)Fortradereceivablesandcontractualassetswithsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountoftheexpectedcreditlossequivalenttotheentirelifetime.Forfinancialassetsotherthanthosemeasuredwithsimplifiedvaluationmethods,theGroupevaluatesateachbalancesheetdatewhetheritscreditriskhassignificantlyincreasedsinceinitialrecognition.Theperiodduringwhichcreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisconsideredthefirststage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossforthenext12monthsandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;theperiodduringwhichcreditriskhassignificantlyincreasedsinceinitialrecognitionalthoughnocreditimpairmenthasoccurredisconsideredthesecondstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentirevalidperiodandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;Theperiodduringwhichcreditimpairmenthasoccurredafterinitialrecognitionisconsideredthethirdstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentireperiodandshallcomputeinterestincomeaccordingtotheamortisedcostandeffectiveinterestrate.Forfinancialinstrumentswithrelativelylowcreditriskatthebalancesheetdate,theGroupassumesthatitscreditriskhasnotsignificantlyincreasessinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesoffinancialinstrumentsonasingleandcombinedbasis.Takingintoaccountthecreditriskcharacteristicsofdifferentcustomers,theGroupevaluatestheexpectedcreditlossesoftradereceivablesbasedontheagingportfolio.Inassessingexpectedcreditlosses,theGrouptakesintoaccountreasonableandvalidinformationonpastevents,currentconditionsandfutureeconomicforecasts.RefertoNotesVIII.3forthedisclosureoftheGroup'scriteriaforjudgingthesignificantincreaseincreditrisk,thedefinitionofassetswithimpairedcreditlosses,andtheassumptionofmeasuringexpectedcreditlosses.WhentheGroupnolongerreasonablyexpectstobeabletorecoverallorpartofthecontractcashflowsofthefinancialassets,theGroupwillwriteoffthebookvalueofthefinancialassetsdirectly.
OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthestatementoffinancialpositionifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,ortorealizethefinancialassetsandsettlethefinancialliabilitiessimultaneously.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(8)Financialinstruments(Continued)
ModificationoffinancialassetsWheretheGroupmodifiesorrenegotiatesthecontractwithitscounterpartyanddoesnotresultinthederecognitionoffinancialassets,butresultsinachangeinthecashflowofthecontract,theGrouprecalculatesthebookvalueofthefinancialassetonthebasisoftherenegotiatedormodifiedcontractcashflowsatthediscountedvalueoftheoriginaleffectiveinterestrate(orcredit-adjustedeffectiverateofinterest)ofthefinancialasset,andtherelatedgainsorlossesarerecognizedinprofitorloss.Therevisedcostorexpenseofthefinancialassetsadjustthebookvalueofthefinancialassetsandareamortizedwithintheremainingperiodofthemodifiedfinancialassets.
TransferoffinancialassetsTheGroupderecognisesafinancialassetwhenithastransferredsubstantiallyalltherisksandrewardsofownershipofthefinancialassettothetransferee;theGroupdoesnotderecognizethosefinancialassetswhenitretainssubstantiallyalltherisksandrewardsoftheownership.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipoffinancialassets,therelatedaccountingtreatmentsofsuchfinancialassetsareasfollows:theGroupderecognisesfinancialassetswhenitretainsnocontrolonthem,andassociatedassetsandliabilitiesarerecognisedatthesametime.IftheGroupretainscontrolofthefinancialasset,itrecognizesthefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizesanassociatedliability.Continuinginvolvementthattakestheformofafinancialguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthefinancialguarantee.TheamountofthefinancialguaranteeisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.
(9)NotesreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossofnotesreceivable,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”
(10)AccountsReceivableFordetailsofthemethodfordeterminingtheexpectedcreditlossofaccountsreceivable,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”
(11)AccountsReceivableFinancingItincludesnotesreceivableandaccountsreceivablethataremeasuredatfairvalueonthebalancesheetdateandwhosechangesareincludedinothercomprehensiveincome.Fordetailsofthemethodfordeterminingtheexpectedcreditlossofreceivablesfinancing,pleaserefer“III.8Financialinstruments-Impairmentoffinancialinstruments.”
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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(12)OtherreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossesofotherreceivables,pleasereferto“III.8Financialinstruments-Impairmentoffinancialinstruments.”
(13)InventoriesInventoriesincluderawmaterials,workinprogress,finishedgoods,delegateprocessingsuppliesandturnovermaterials,andaremeasuredatthelowerofcostandnetrealizablevalue.Costisdeterminedontheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogresscomprisesrawmaterials,directlaborandanallocationofsystematicallyallocatedoverheadexpendituresincurredbasedonthenormaloperatingcapacity.BasisfordeterminingthenetrealizablevaluesofinventoriesandmethodformakingprovisionsfordeclineinthevalueofinventoriesProvisionsfordeclineinthevalueofinventoriesaredeterminedattheexcessamountofthecarryingvalueoftheinventoriesovertheirnetrealizablevalue.Netrealizablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.TheGroupadoptstheperpetualinventorysystem.
(14)ContractassetsTheunconditional(namely,dependentonlyonthepassageoftime)righttoreceiveconsiderationfromcustomersownedbytheGroupshallbepresentedasamountsreceivable.Therighttoreceiveconsiderationfollowingthetransferofproductstocustomerswhichisdependentonfactorsotherthanthepassageoftimeispresentedascontractassets.
(15)AssetsrelatingtocontractcostTheGroup’sassetsrelatingtocontractcostsincludethecontractacquisitioncostsandcontractperformancecosts,presentedrespectivelyunderinventories,othercurrentassetsandothernon-currentassets.WheretheGroupexpectstheincrementalcostsforacquiringacontracttoberecoverable,suchcontractacquisitioncostsarerecognisedasanasset(unlesstheamortisationperiodoftheassetisnotmorethan1year).
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(15)Assetsrelatingtocontractcost(Continued)CostsincurredbytheGroupfortheperformanceofacontractarerecognisedasanassetascontractperformancecostsiftheydonotfallunderthescopeoftherelevantstandardsforinventories,fixedassetsorintangibleassetsbutmeetallthefollowingconditions:
(1)Theyaredirectlyrelatedtoacurrentoranticipatedcontract,includingdirectlabour,direct
materials,manufacturingexpenses(orsimilarexpenses),tobebornebycustomersasspecificallystipulated,andotherwiseincurredsolelyinconnectionwiththecontract;
(2)theywillincreasetheresourcestobeutilisedintheCompany’sfutureperformanceofits
contractualobligations;and
(3)theyareexpectedtoberecoverable.TheGroupamortisesassetsrelatingcontractcostsonthesamebasisasthatfortherecognitionofrevenuerelatingtosuchassetsandrecognisestheamortisedassetsincurrentprofitorloss.Forassetsrelatingtocontractcostswhosecarryingvalueishigherthanthedifferencebetweenthefollowingtwoitems,theGroupmakesprovisionforimpairmentfortheexcesstoberecognisedasassetimpairmentlosses:
(1)Theremainingconsiderationexpectedtobeobtainedasaresultofthetransferofgoodsrelating
tosuchassets;
(2)EstimatedcoststobeincurredinconnectionwiththetransferofrelevantgoodsIntheeventthatthedifferencebetween(1)and(2)becomeshigherthanthecarryingvalueofsuchassetsasaresultofchangesinthefactorsofimpairmentforpreviousperiods,previousprovisionsforassetimpairmentlossesshouldbewrittenbackandincludedincurrentprofitorloss,providedthatthecarryingassetvaluefollowingthewrite-backshallnotexceedthecarryingvaluethatsuchassetswouldhaveonthedateofwrite-backweretherenoprovisionforimpairment.
(16)Long-termequityinvestmentsLong-termequityinvestmentscomprisetheCompany’slong-termequityinvestmentsinitssubsidiaries,jointventuresandassociates.Long-termequityinvestmentsareaccountedforusingthecoastmethodatthetimeitwasacquired.Forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostshallbetheabsorbingparty’sshareofthecarryingamountofshareholders’equityofthepartybeingabsorbedatthecombinationdate.SubsidiariesaretheinvesteesoverwhichtheCompanyisabletoexercisecontrol.AssociatesaretheinvesteesthattheGrouphassignificantinfluenceontheirfinancialandoperatingpolicies.
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(16)Long-termequityinvestments(Continued)InvestmentsinsubsidiariesaremeasuredusingthecostmethodintheCompany’sfinancialstatements,andadjustedbyusingtheequitymethodwhenpreparingtheconsolidatedfinancialstatements.Interestsinassociatesareaccountedforusingtheequitymethod.Forlong-termequityinvestmentsacquiredbywayoftheswapofnon-monetaryassets,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.7—SwapofNon-monetaryAssets.”Forlong-termequityinvestmentsacquiredbywayofdebtrestructuring,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.12—DebtRestructuring.”(a)DeterminationofinvestmentcostForlong-termequityinvestmentsacquiredthroughabusinesscombination:forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostshallbetheabsorbingparty’sshareofthecarryingamountofshareholders’equityofthepartybeingabsorbedatthecombinationdate;forlong-termequityinvestmentsacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theinvestmentcostshallbethecombinationcost.(b)SubsequentmeasurementandrecognitionofrelatedprofitorlossForlong-termequityinvestmentsaccountedforusingthecostmethod,theyaremeasuredattheinitialInvestmentcosts,andcashdividendsorprofitdistributiondeclaredbytheinvesteesarerecognizedasinvestmentincomeinprofitorloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thelong-termequityinvestmentismeasuredattheinitialinvestmentcost;wheretheinitialinvestmentcostislessthantheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceisincludedinprofitorlossandthecostofthelong-termequityinvestmentisadjustedupwardsaccordingly.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,theGrouprecognizestheinvestmentincomeaccordingtoitsshareofnetprofitorlossoftheinvestee.TheGroupdiscontinuestorecognizeitsshareofnetlossesofaninvesteeafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhat,insubstance,formpartoftheinvestor’snetinvestmentintheinvesteearereducedtozero.However,iftheGrouphasobligationsforadditionallossesandthecriteriawithrespecttotherecognitionofprovisionsundertheaccountingstandardsoncontingenciesaresatisfied,theGroupcontinuestorecognizetheinvestmentlossesandtheprovisions.Forchangesinshareholders’equityoftheinvesteeotherthanthosearisingfromitsnetprofitorloss,othercomprehensiveincome,andprofitdistribution,theGroupadjuststhebookvalueoftheinvestmentandrecordsacapitalsurplusaccordingly.ThecarryingamountoftheinvestmentisreducedbytheGroup’sshareoftheprofitdistributionorcashdividendsdeclaredbyaninvestee.
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(16)Long-termequityinvestments(Continued)(b)Subsequentmeasurementandrecognitionofrelatedprofitorloss(Continued)Theunrealizedprofitsorlossesarisingfromtheintra-grouptransactionsamongsttheGroupanditsinvesteesareeliminatedinproportiontotheGroup’sequityinterestsintheinvestees,andthenbasedonwhichtheinvestmentgainsorlossesarerecognized.Forthelossonintra-grouptransactionsamongsttheGroupanditsinvesteesattributabletoassetimpairment,anyunrealizedlossisnoteliminated.(c)Basisfordeterminingexistenceofcontrol,jointcontrolorsignificantinfluenceoverinvesteesControlisthepowertogovernthefinancialandoperatingpoliciesoftheinvesteesoastoobtainbenefitsfromitsoperatingactivities.IndeterminingwhethertheCompanyisabletoexercisecontrolovertheinvestee,theeffectofpotentialvotingrightsovertheinvesteeisconsidered,suchasconvertibledebtsandwarrantscurrentlyexercisable.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontroloverthosepolicies.(d)Impairmentoflong-termequityinvestmentsThecarryingamountoflong-termequityinvestmentsinsubsidiariesandassociatesisreducedtotherecoverableamountwhentherecoverableamountislessthanthecarryingamount.
(17)InvestmentpropertiesInvestmentproperties,includinglanduserightsthathavealreadybeenleasedout,buildingsthatareheldforthepurposeofleasing,andbuildingsthatarebeingconstructedordevelopedforthepurposeofleasinginfuture,aremeasuredinitiallyatcost.SubsequentexpendituresincurredinrelationtoinvestmentpropertiesareincludedinthecostofinvestmentpropertieswhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtheircostscanbereliablymeasured;otherwise,theexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
Estimatedusefullives
| Estimatedusefullives | Estimatedresidualvalue | Annualdepreciation(amortization)rates |
| Buildings | 12-35years | 0-5% | 2.71-7.92% |
| Landuserights | 30-50years | - | 2.00-3.33% |
Whenaninvestmentpropertyistransferredtoowner-occupiedproperty,itisreclassifiedasafixedassetorintangibleassetatthedateoftransfer.Whenanowner-occupiedpropertyistransferredoutforearningrentalsorforcapitalappreciation,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyatitscarryingamountatthedateoftransfer.Theinvestmentproperties’usefullife,netresidualvalueanddepreciation(amortization)methodappliedarereviewedandadjustedasappropriateattheendofeachyear.
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(17)Investmentproperties(Continued)AninvestmentpropertyisDerecognizedondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromitsdisposal.Thenetamountofproceedsfromsale,transfer,retirementordamageofaninvestmentpropertyafteritscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossforthecurrentperiod.
(18)FixedassetsFixedassetsarerecognizedwhenitisprobablethattherelatedeconomicbenefitswillflowtotheGroupandthecostscanbereliablymeasured.SubsequentexpendituresincurredforafixedassetareincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtherelatedcostcanbereliablymeasured.Thecarryingamountofthereplacedpartisderecognized.Alltheothersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Fixedassetsareinitiallymeasuredatcostandtheeffectofanyexpectedcostsofabandoningtheassetattheendofitsuseisconsidered.Thecostofafixedassetistheaggregatecostofpurchaseprice,relatedtaxesandanydirectlyattributableexpenditureforbringingtheassettoitsworkingconditionforitsintendeduse.Fixedassetsaredepreciatedusingthestraight-linemethodtoallocatethecostoftheassetstotheirestimatedresidualvaluesovertheirestimatedusefullives.Forthefixedassetsthathavebeenprovidedforimpairmentloss,therelateddepreciationchargeisprospectivelydeterminedbasedupontheadjustedcarryingamountsovertheirremainingusefullives.
EstimatedusefullivesEstimatedresidualvalueAnnualdepreciationratesBuildings20-35years0-5%2.71-5.00%Machineryandequipment5-14years3-6%6.79-19.40%Motorvehicles3-10years0-5%9.50-33.33%Otherequipment3-10years0-5%9.50-33.33%Leaseholdimprovementswithin5years0%20%andaboveFixedassetsheldunderfinanceleasesaredepreciatedunderthesamedepreciationmethodasotherfixedassets.Theassetsaredepreciatedovertheirestimatedusefulliveswhereownershipoftheassetscanbereasonablyestimatedtobegainedwhenleaseperiodsend;otherwise,theleasedassetsaredepreciatedovertheshorteroftheleasetermsandtheestimatedusefullivesoftheassets.TheGroupreviewstheusefullife,estimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyearend,andadjustsforanychangewhennecessary.
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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(18)Fixedassets(Continued)AfixedassetisDerecognizedondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Theamountofproceedsfromdisposalonsale,transfer,retirementordamageofafixedassetnetofitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossforthecurrentperiod.
(19)ConstructioninprogressConstructioninprogressismeasuredatitsactualcost.Theactualcostincludesvariousnecessaryconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalisedbeforeitisreadyforintendeduseandotherrelevantcosts.
(20)BorrowingcostsBorrowingcostsrefertotheinterestandotherrelevantcostincurredfromborrowing,whichincludeloaninterest,discountoramortizationofpremiums,auxiliaryexpensesandexchangedifferencesduetoforeigncurrencyloans,etc.WheretheborrowingcostsincurredtotheCompanycanbedirectlyattributabletotheacquisitionandconstructionorproductionofassetseligibleforcapitalization,itshallbecapitalizedandrecordedintothecostsofrelevantassets.Otherborrowingcostsshallberecognizedasexpensesonthebasisoftheactualamountincurred,andshallberecordedintothecurrentprofitsandlosses.Theterm“assetseligibleforcapitalization”shallrefertothefixedassets,investmentrealestate,inventoriesandotherassets,ofwhichtheacquisitionandconstructionorproductionmaytakequitealongtimetogetreadyforitsintendeduseorforsale.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingrequirements:
(1)Theassetdisbursementshavealreadyincurred;
(2)Theborrowingcostshavealreadyincurred;and
(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparethe
assetforitsintendeduseorsalehavealreadystarted.Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.Borrowingcostsincurredaftertheintendeduseorsaleshallberecordedinthecurrentprofitsandlosses.Duringtheperiodofcapitalization,thecapitalizedamountofinterestineachaccountingperiodshallbecalculatedanddeterminedinthewaysbelow:
Theenterpriseshallcalculateanddeterminetheinterestofaspecificloanbydeductinginterestincomeoftheloancapitaldepositinthebankorinvestmentincomeobtainedfromatemporaryinvestment.
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(20)Borrowingcosts(Continued)Theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestsonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Wheretheacquisitionandconstructionorproductionofaqualifiedassetisinterruptedabnormallyandtheinterruptionperiodlastsformorethan3months,thecapitalizationoftheborrowingcostsshallbesuspended.Theborrowingcostsincurredduringsuchperiodshallberecognizedasexpenses,andshallberecordedintotheprofitsandlossesofthecurrentperiod,tilltheacquisitionandconstructionorproductionoftheassetrestarts.
(21)Right-of-useassetsOnthecommencementdateoftheleaseterm,thelesseerecognizestheright-of-useassetforthelease(exceptforshort-termleasesandlow-valueassetleases).Therighttouseassetcostsincludes:theinitialmeasurementamountoftheleasliability;theleasepaymentamountpaidonorbeforethestartdateoftheleaseperiod(ifthereisaleaseincentive,deductingtherelevantamountoftheleaseincentive);Theinitialdirectcostincurredbythelessee.Wherethelesseecanreasonablydeterminetheownershipoftheleasedassetattheexpirationoftheleaseterm,thedepreciationisprovidedwithintheremainingusefullifeoftheleasedasset;Ifitisnotreasonabletodeterminethattheleaseholdassetcanbeacquiredattheexpirationoftheleaseterm,thedepreciationisprovidedduringtheperiodbetweentheleasetermandtheremainingusefullifeoftheleasedasset.Thelesseeisrequiredtodeterminewhethertheright-of-useassetisimpairedatthesametimeandaccountingforidentifiedimpairmentlosses.
(22)IntangibleassetsIntangibleassetsarerecognisedandmeasuredoninitialrecognitionatcostonlyiftherelatedeconomicbenefitswillprobablyflowintotheGroupandtheircostscanbemeasuredreliably.However,theintangibleassetsacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrolshouldbemeasuredatfairvalueseparatelyasintangibleassetswhentheirfairvaluescanbereliablymeasured.
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(22)Intangibleassets(Continued)TheusefullifeoftheintangibleassetsshallbeassessedaccordingtotheestimatedbeneficialperiodexpectedtogenerateeconomicbenefitsfortheGroup.AnintangibleassetshallberegardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.
Categories
| Categories | Usefullives |
| Landuserights | BetweentheapprovedusefulperiodandtheCompany’soperatingperiod | |
| Software | 3-5years | |
| Trademarks | 5-10years | |
| Technologypatents | 5years | |
| Distributionnetwork | 20years | |
| Franchisingrights | 10years | |
| Favorableleases | 17-20years |
LanduserightsobtainedbytheGroupareusuallyaccountedforasintangibleassets.Asfortheconstructionofplants,factoriesandotherbuildingsoftheGroup,therelatedlanduserightsandotherbuildingswereaccountedforasintangibleassetsandfixedassets,respectively.Purchasecostsoflanduserightsandbuildingswereallocatedtointangibleassetsandfixedassetsseparately.Purchasecostswererecognisedascostoffixedassets,onlyiftheseparationwasimpracticable.Intangibleassetswithafiniteusefullifeareamortisedovertheirestimatedusefullivesusingthestraight-linemethodorotherreasonablesystematicmethods.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodatleastonceateachfinancialyearend,andmakesadjustmentswhennecessary.Alanduserightgrantedbythegovernmentwithaninfiniteusefullifewouldnotbeamortized.Otherlanduserightsareamortizedonthestraight-linebasisovertheirapprovedusefulperiod.Iftheacquisitioncostsoflanduserightsandthebuildingslocatedthereoncannotbereliablyallocatedbetweenthelanduserightsandthebuildings,alloftheacquisitioncostsarerecognizedasfixedassets.Theexpenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphasebasedonitsnatureandwhetherthereismaterialuncertaintythattheresearchanddevelopmentactivitiescanformanintangibleassetattheendoftheproject.
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(22)Intangibleassets(Continued)Expenditureforinvestigation,evaluationandselectionofproductionprocessandnewdrugresearchesisrecognizedinprofitorlossintheperiodinwhichitisincurred.Expenditureonthedesignation,measurementofthefinalutilizationoftheproductionprocessandnewdrugsbeforemassproductioniscapitalizedonlyifallofthefollowingconditionsaresatisfied:
?developmentoftheproductionprocessandnewdrugshasbeenfullydemonstratedbythetechnicalteam;?managementhasapprovedthebudgetofdrugproductiondevelopmentandnewdrugs;?marketresearchanalysissuggeststhattheproductsproducedbythenewproductiontechnologyareabletobepromoted;?adequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;?theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbereliablymeasured.Otherdevelopmentcoststhatdonotmeettheconditionsabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Developmentcostspreviouslyrecognizedasexpensesarenotrecognizedasanassetinasubsequentperiod.Capitalizedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.TheGroupclassifiestheexpensesforinternalresearchanddevelopmentasresearchcostsanddevelopmentcosts.Allresearchcostsarechargedtothecurrentprofitorlossasincurred.ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits(includingdemonstrationthattheproductderivedfromtheintangibleassetortheintangibleassetitselfwillbemarketableor,inthecaseofinternaluse,theusefulnessoftheintangibleassetassuch),theavailabilityoftechnicalandfinancialresourcestocompletetheprojectandprocuretheuseorsaleoftheintangibleasset,andtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditurewhichdoesnotmeetthesecriteriaisexpensedwhenincurred.
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(23)Impairmentoflong-termassetsFixedassets,constructioninprogress,intangibleassetswithfiniteusefullives,long-termprepaidexpensesandinvestmentpropertiesmeasuredusingthecostmodelandlong-termequityinvestmentsinsubsidiariesandassociatesaretestedforimpairmentifthereisanyindicationthatanassetmaybeimpairedatthebalancesheetdate.Iftheresultoftheimpairmenttestindicatesthattherecoverableamountoftheassetislessthanitscarryingamount,aprovisionforimpairmentandanimpairmentlossarerecognizedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Provisionforassetimpairmentisdeterminedandrecognizedontheindividualassetbasis.Ifitisnotpossibletoestimatetherecoverableamountofanindividualasset,therecoverableamountofagroupofassetstowhichtheassetbelongsisdetermined.Agroupofassetsisthesmallestgroupofassetsthatisabletogenerateindependentcashinflows.Goodwillthatisseparatelypresentedinthefinancialstatements,intangibleassetswithinfiniteusefullivesandcapitalizeddevelopmentcostsaretestedatleastannuallyforimpairment,irrespectiveofwhetherthereisanyindicationthatitmaybeimpaired.Inconductingthetest,thecarryingvalueofgoodwillisallocatedtotherelatedassetgroupsorgroupsofassetgroupswhichareexpectedtobenefitfromthesynergiesofthebusinesscombination.Iftheresultofthetestindicatesthattherecoverableamountofanassetgrouporagroupofassetgroups,includingthegoodwillallocated,islowerthanitscarryingamount,thecorrespondingimpairmentlossisrecognized.Theimpairmentlossisfirstdeductedfromthecarryingamountofgoodwillthatisallocatedtotheassetgrouporgroupofassetgroups,andthendeductedfromthecarryingamountofotherassetswithintheassetgroupsorgroupsofassetgroupsinproportiontothecarryingamountofotherassets.Oncetheaboveimpairmentlossisrecognized,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.
(24)Long-termprepaidexpensesLong-termprepaidexpensesincludetheexpenditureforimprovementstofixedassetsunderoperatingleases,andotherexpendituresthathavebeenmadebutshouldberecognizedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortizedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortization.
(25)ContractliabilitiesTheobligationtopassproductstocustomersinconnectionwithcustomerconsiderationreceivedorreceivableispresentedascontractliabilities,forexample,amountsreceivedpriortothetransferofthepromisedproducts.Contractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasisafterset-off.
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(26)EmployeebenefitsShort-termemployeebenefitsTheactualoccurredshort-termemployeebenefitsarerecognizesasliabilitiesduringtheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployeesandascostsofassetsorexpensestowhichevertheemployeeserviceisattributable.Post-employmentbenefits(definedcontributionplans)TheemployeesintheGroupparticipateinsocialinsuranceandunemploymentinsuranceschemesadministratedbythelocalgovernments,andtherelatedexpendituresarerecordedincostofrelatedassetsorprofitorlossintheperiodwhentheyincurred.Post-employmentbenefits(definedbenefitplans)TheGroupoperatesadefinedbenefitpensionscheme.Nofundshavebeeninjectedintothescheme.Thecostofbenefitsprovidedunderthedefinedbenefitschemeiscalculatedusingtheexpectedbenefitaccrualunitapproach.Remeasurementarisingfromdefinedbenefitpensionschemes,includingactuarialgainsorlosses,changesintheassetcapeffect(deductingamountsincludedinnetinterest)andreturnsonschemeassets(deductingamountsincludedinnetinterest)areinstantlyrecognisedinthebalancesheetandchargedtoshareholders’equitythroughothercomprehensiveincomefortheperiodduringwhichitisincurred.Itwillnotbereversedtoprofitandlossinsubsequentperiods.Previousservicecostsarerecognisedascurrentexpenseswhen:thedefinedbenefitschemeisrevised,orrelevantrestructuringcostsorterminationbenefitsarerecognisedbytheGroup,whicheverearlier.Netinterestisarrivedatbymultiplyingnetliabilitiesornetassetsofdefinedbenefitswithadiscountrate.Changesinnetobligationsofdefinedbenefitsarerecognisedasoperatingcostsandadministrationexpensesintheincomestatement.Servicecostsincludedcurrentservicescosts,pastservicecostsandsettlementofprofitorloss.Netinterestincludedinterestincomefromschemeassets,interestexpensesforschemeobligationsandinterestoftheassetcapeffect.TerminationbenefitsTheGrouprecognizesaliabilityforterminationbenefitsandchargestoprofitorlossattheearlierofthefollowingdates:a)whentheGroupcannolongerwithdrawfromtheterminationplanortheredundancyoffer;andb)whentheGrouprecognizescostsorexpenseforarestructuringplanwhichinvolvesthepaymentofterminationbenefits.
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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(26)Employeebenefits(Continued)OtherlongtermemployeebenefitsOtherlong-termemployees’benefitsprovidedtoemployeesshallberecognisedandmeasuredasnetliabilitiesornetassetswhereprovisionsregardingpost-employmentbenefitsareapplicable,providedthatchangesshallbeincludedincurrentprofitandlossorrelatedcapitalcosts.
(27)LeaseliabilityOnthecommencementdateoftheleaseterm,thelesseerecognizestheleaseliabilityforthelease(exceptforshort-termleasesandlow-valueassetleases).Theleaseliabilityisinitiallymeasuredusingtheincrementalborrowingrateasthepresentvalueofthediscountratebasedontheleasepaymentsthathavenotbeenpaidonthestartdateoftheleaseterm.Atthesametime,thelesseecalculatestheinterestexpenseoftheleaseliabilityforeachperiodoftheleasetermbasedontheeffectiveinterestmethodandrecognizesitinprofitorlossforthecurrentperiod.
(28)ProvisionsAnobligationrelatedtoacontingencyshallberecognizedbytheGroupasaprovisionwhenallofthefollowingconditionsaresatisfied,exceptcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingenterprisesundercommoncontrol:
(1)TheobligationisapresentobligationoftheGroup;
(2)ItisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettletheobligation;and
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Thecarryingamountofprovisionsisreviewedatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.Forbusinesscombinationsnotundercommoncontrol,contingentliabilitiesoftheacquireeobtainedinabusinesscombinationshallbemeasuredatfairvalueininitialrecognition.Afterinitialrecognition,subsequentmeasurementisconductedusingthehigheroftheamountrecognizedbyprovisionsandtheamountofinitialrecognitiondeductingtheaccumulatedamortizationamountdeterminedbytheprinciplesofrevenuerecognition.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(29)Share-basedpaymentsTheshare-basedpaymentsshallconsistofequity-settledshare-basedpaymentsandcash-settledshare-basedpayments.Theterm"equity-settledshare-basedpayment"referstoatransactioninwhichthegroupgrantssharesorotherequityinstrumentsasaconsiderationinreturnforservices.Theequity-settledshare-basedpaymentinreturnforemployeeservicesshallbemeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Astoanequity-settledshare-basedpaymentinreturnforservicesofemployees,iftherightmaybeexercisedimmediatelyafterthegrant,thefairvalueoftheequityinstrumentsshall,onthedateofthegrant,beincludedintherelevantcostorexpenseandthecapitalreservesshallbeincreasedaccordingly.Astoanequity-settledshare-basedpaymentinreturnforemployeeservices,iftherightcannotbeexerciseduntilthevestingperiodcomestoanendoruntiltheprescribedperformanceconditionsaremet,thenoneachbalancesheetdatewithinthevestingperiod,theGroupshallmakethebestestimateofthenumberofvestedequityinstrumentsbasedonthelatestmovementofthegrantedemployee,thecontentofprescribedperformanceandotherconditions.Basedonthebestestimate,theservicesobtainedinthecurrentperiodshallbeincludedintherelevantcostsorexpensesandthecapitalreservesatthefairvalueoftheequityinstrumentsonthedateofthegrant.Forawardsthatdonotultimatelyvestbecausenon-marketperformanceandserviceconditionshavenotbeenmet,noexpenseisrecognised.Whereawardsincludeamarketornon-vestingcondition,thetransactionsaretreatedasvestingirrespectiveofwhetherthemarketornon-vestingconditionissatisfied,providedthatallotherperformanceandserviceconditionsaresatisfied.Wherethetermsofanequity-settledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified,iftheoriginaltermsoftheawardaremet.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpayments,orisotherwisebeneficialtotheemployeeasmeasuredatthedateofmodification.Whereanequity-settledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheawardisrecognisedimmediately.Thisincludesanyawardwherenon-vestingconditionswithinthecontrolofeithertheGrouportheemployeearenotmet.However,ifanewawardissubstitutedforthecancelledaward,andisdesignatedasareplacementawardonthedatethatitisgranted,thecancelledandnewawardsaretreatedasiftheywereamodificationoftheoriginalaward,asdescribedinthepreviousparagraph.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(29)Share-basedpayments(Continued)Acash-settledshare-basedpaymentshallbemeasuredinaccordancewiththefairvalueofliabilitycalculatedandconfirmedbasedonthesharesorotherequityinstrumentsundertakenbyanenterprise.Astoacash-settledshare-basedpaymentinstruments,iftherightmaybeexercisedimmediatelyafterthegrant,thefairvalueoftheliabilityundertakenbytheenterpriseshall,onthedateofthegrant,beincludedintherelevantcostsorexpenses,andtheliabilitiesshallbeincreasedaccordingly.Astoacash-settledshare-basedpayment,iftherightmaynotbeexerciseduntilthevestingperiodcomestoanendoruntilthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthevestingperiod,theservicesobtainedinthecurrentperiodshall,basedonthebestestimateoftheinformationabouttheexercisableright,beincludedintherelevantcostsorexpensesandthecorrespondingliabilitiesatthefairvalueoftheliabilityundertakenbythegroup.Thegroupshall,oneachbalancesheetdateandoneachaccountdatepriortothesettlementoftherelevantliabilities,re-measurethefairvaluesoftheliabilitiesandincludethechangesinthecurrentprofitsandlosses.
(30)RevenuerecognitionThegrouprecognizesrevenuewhenithasfulfilleditsobligationsunderthecontract,i,e.whenthecustomeracquirescontrolrelevantgoodsorservices.Acquiringcontroloverthegoodsorservicesreferstotheabilitytodominatetheuseofthegoodsortheportionofservicesandtoderivealmostalltheeconomicbenefitstherefrom.ContractsforsaleofgoodsThecontractsforthesaleofgoodsbetweentheGroupanditscustomerusuallyonlycontaintheperformanceobligationsforthetransferofgoods.TheGroupgenerallyrecognizesrevenueatthepointoftransferringthecontrolofgoodsonthebasisofacombinationofthefollowingfactors:thecurrentrighttocollectthegoods,thetransferofmajorrisksandbenefitsintheownershipofthegoods,andthetransferofthelegalownershipofthegoods,thetransferofphysicalassetsofthegoodsandthatthecustomershaveacceptedthegoods.ServiceContractsTheservicecontractsbetweentheGroupanditscustomersusuallyconsistofperformanceobligationssuchasengineeringconstructionmanagement,engineeringdesignconsultingandsoon.AstheGroup'sperformanceofcontractsisatthesametimewhenthecustomerobtainsandconsumestheeconomicbenefitsoftheperformanceoftheGroup,andtheGrouphastherighttocollectreceivablesfromtheperformanceofcontactsthathasbeencompletedtodate,theGroupregardsitasacontactobligationoveraperiodoftime,exceptthattheprogressofperformancecannotbereasonablydetermined.TheGroupdeterminestheprogressoftheperformanceofcontractsinaccordancewiththeinputmethod.IftheprogressofperformanceofcontractscannotbereasonablydeterminedandthecostincurredbytheGroupareexpectedtobecompensated,therevenueisrecognizedonthebasisoftheincurredcostsuntiltheprogressofperformanceofcontactscanbereasonablymeasured.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(30)Revenuerecognition(Continued)VariableconsiderationCertaincontractsbetweentheGroupanditscustomerscontaincashdiscountsandpriceguaranteeclauseswhichwillgiverisetovariableconsideration.Whereacontractcontainsvariableconsideration,theGroupdeterminesthebestestimatesonthevariableconsiderationbasedonexpectedvaluesorthemostprobableamount,providedthattransactionpricesincludingvariableconsiderationshallnotexceedthecumulativeamountofrecognisedrevenueupontheremovalofrelevantuncertaintiesinconnectionwithwhichasignificantreversalishighlyunlikely.ConsiderationpayabletocustomersWhereconsiderationispayablebytheGrouptoacustomer,suchconsiderationpayableshallbedeductedagainstthetransactionprice,andagainstcurrentrevenueupontherecognitionofrevenueorthepaymentof(orthecommitmenttopay)theconsiderationtothecustomer(whicheverislater),saveforconsiderationpayabletothecustomerforthepurposeofacquiringfromthecustomerotherclearlyseparableproducts.ReturnclausesInconnectionwithsaleswithareturnclause,revenueisrecognisedaccordingtotheamountofconsiderationitexpectstobeentitledtoforthetransfertoacustomerwhenthecustomeracquirescontroloftherelevant.Amountsexpectedtoberefundedforthereturnofsalesarerecognisedasliabilities.Atthesametime,thebalanceofthecarryingvalueoftheproductexpectedtobereturnedupontransferlessexpectedcostsfortherecallofsuchproduct(includinganimpairmentlossoftherecalledproduct)shallberecognisedasanasset(i.e.costofreturnreceivables),andthenetamountofthecarryingvalueofthetransferredproductuponthetransferlesstheaforesaidassetcostshallbetransferredtocost.Ateachbalancesheetdate,theGroupreassessesthefuturereturnofsalesandremeasurestheaboveassetsandliabilities.SignificantfinancingcomponentWhereacontractcontainsasignificantfinancingcomponent,theGroupdeterminestransactionpricesbasedonamountspayableassumedtobesettledincashbycustomersimmediatelyupontheacquisitionofcontrolovertheproducts.Thedifferencebetweensuchtransactionpriceandcontractconsiderationisamortisedoverthecontractperiodusingtheeffectiveinterestratemethodbasedonaratiothatdiscountsthenominalcontractualconsiderationtothecurrentsellingpriceoftheproducts.TheGroupshallnotgiveconsiderationtoanysignificantfinancingcomponentinacontractifthegapbetweenthecustomer’sacquisitionofcontrolovertheproductsandpaymentofconsiderationisexpectedtobelessthan1year.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(30)Revenuerecognition(Continued)
WarrantyclausesTheGroupprovidesqualityassuranceforproductssoldandassetsbuiltinaccordancewithcontracttermsandlawsandregulations.TheaccountingtreatmentofqualityassuranceintheformofwarrantyassuringcustomersproductssoldareincompliancewithrequiredstandardsissetoutinNoteIII.28.WheretheGroupprovidesaservicewarrantyforastandaloneserviceinadditiontotheassuranceofcomplianceofproductswithrequiredstandards,suchwarrantyistreatedasastandalonecontractualperformanceobligation,andaportionofthetransactionpriceshallbeallocatedtotheservicewarrantybasedonapercentageofthestandalonepricefortheprovisionofproductandservicewarranty.Whenassessingwhetherawarrantyisrenderingastandaloneserviceinadditiontoprovidingguaranteetocustomersthatallsoldgoodsareincompliancewithrequiredstandards,theGroupwillconsiderwhetherornotsuchwarrantyisastatutoryrequirement,thetermofthewarrantyandthenatureoftheGroup’sundertakingtoperformitsobligations.RewardpointsprogramTheGroupgrantsrewardpointstocustomerswhensellinggoods.CustomerscanuserewardpointstoredeemfreeordiscountedgoodsprovidedbytheGroup.Thisrewardpointsprogramprovidessignificantrightstocustomers,theGroupconsideritasanindividualperformanceobligation,andanapportionpartofthetransactionpricetorewardpointsbasedonpricingofgoodsorserviceswithwarrantyclauses.Revenueisrecognisedwhencustomersobtaingoodsredeemedorwhenrewardpointsexpire.Principalresponsibleperson/proxyForgoodsorotherassetsobtainedfromathirdpartywhichweretransferredlatertocustomers,theGrouphastherighttodecideindependently,pricingofgoods.ThismeansthattheGrouphasobtainedcontroloverrelatedgoodsbeforetransferringtocustomers.Therefore,theGroupistheprincipalresponsibleperson,andrevenueisrecognisedbasedontotalamountofconsiderationreceivedorreceivable.Otherwise,theGroupisproxy,andrevenueisrecognisedbasedonexpectedcommission.Thisamountshouldbethetotalamountofconsiderationreceivedorreceivablenetoftheamountpayabletootherparties,orbasedonthefixedamountorpercentage.
(31)Governmentgrants
Agovernmentgrantisrecognizedwhentheconditionsattachedtoitcanbecompliedwithandthegovernmentgrantcanbereceived.Foragovernmentgrantintheformoftransferofmonetaryassets,thegrantismeasuredattheamountreceivedorreceivable.Foragovernmentgrantintheformoftransferofnon-monetaryassets,itismeasuredatfairvalue;ifthefairvalueisnotreliablydeterminable,thegrantismeasuredatnominalamount.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(31)Governmentgrants(Continued)Governmentgrantsrelatedtoassetsrefertogovernmentassetswhicharegrantedtoenterprisesforthelong-termassetsformedbyacquisition,constructionorinothermanners.Governmentgrantsrelatedtoincomerefertogovernmentgrantsotherthanthoserelatedtoassets.Governmentgrantsrelatedtoincometobeusedascompensationforfutureexpensesorlossesshallberecognizedasdeferredincomeandshallbechargedtothecurrentprofitorlossorbeusedtowritedowntherelevantloss,duringtherecognitionoftherelevantcostexpensesorlosses;orusedascompensationforrelevantexpensesorlossesalreadyincurredbyenterprisesshallbedirectlychargedtotheprofitorlossaccountinthecurrentperiodorusedtowritedowntherelevantcost.Thegovernmentgrantsrelatedtoassetsshallbeusedtowritedownthebookvalueoftherelevantassetsorberecognizedasdeferredincome.Thegovernmentgrantsrelatedtoassets,recognizedasdeferredincome,shallbechargedtotheprofitandlossreasonablyandsystematicallyinstagesovertheusefullivesoftherelevantassets.Thegovernmentgrantsmeasuredatanominalamountshallbedirectlychargedtothecurrentprofitorloss.Ifanyrelatedassetissold,transferred,writtenoffordestroyedbeforetheendofitsusefullife,thebalanceoftheundistributeddeferredincomeshallbetransferredtothecurrentgainorlossondisposaloftheasset.
(32)IncometaxIncometaxcomprisescurrentanddeferredtax.Incometaxisrecognizedasincomeoranexpenseinprofitorlossofthecurrentperiod,orrecognizeddirectlyinshareholders’equityifitarisesfromabusinesscombinationorrelatestoatransactionoreventwhichisrecognizeddirectlyinshareholders’equity.TheGroupmeasuresacurrenttaxassetorliabilityarisingfromthecurrentandpriorperiodsbasedontheamountofincometaxexpectedtobepaidbytheGrouporreturnedbytaxauthoritescalculatedaccordingtorelatedtaxlaws.Deferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts(temporarydifferences).Adeferredtaxassetisrecognizedforthedeductiblelossesthatcanbecarriedforwardtosubsequentyearsfordeductionofthetaxableprofitinaccordancewiththetaxlaws.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill.Nodeferredtaxassetordeferredtaxliabilityisrecognizedforthetemporarydifferencesresultingfromtheinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(32)Incometax(Continued)Deferredtaxassetsareonlyrecognizedfordeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableinthefutureagainstwhichthedeductibletemporarydifferences,deductiblelossesandtaxcreditscanbeutilized.Deferredtaxassetsandliabilitiesareoffsetwhen:
?thedeferredtaxesarerelatedtothesametaxpayerwithintheGroupandthesametaxationauthority;and?thattaxpayerhasalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilities.Deferredtaxliabilitiesarerecognizedfortemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociates,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifference,anditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Whenitisprobablethatthetemporarydifferencesarisingfrominvestmentsinsubsidiaries,andassociateswillbereversedintheforeseeablefutureandthatthetaxableprofitwillbeavailableinthefutureagainstwhichthetemporarydifferencescanbeutilized,thecorrespondingdeferredtaxassetsarerecognized.
(33)ChangesinaccountingpoliciesandaccountingestimatesChangesinaccountingpolicies
Detailsandreasonsforchangesinaccountingestimates
| Detailsandreasonsforchangesinaccountingestimates | Proceduresforapproval | Notes |
| On7December2018,theMinistryofFinancerevised“AccountingStandardforEnterprisesNo.21-Lease”(the“NewLeaseStandard”).ItisalsorequiredthatenterpriseslistedbothdomesticallyandabroadandenterpriseslistedabroadandpreparingfinancialstatementsinaccordancewithInternationalFinancialReportingStandardsortheAccountingStandardsforBusinessEnterprisesadopttheNewLeaseStandardfrom1January2019. | ApprovalbyTheeleventhmeetingoftheeighthboardofdirectorsthatheldonAugust22,2019. | TheGroupimplementtheNewLeaseStandardfrom1January2019.AccordingtotheconvergencerulesoftheNewLeaseStandard,itisoptionaltoadjusttheamountoftheretainedearningsandotherrelevantaccountsatthebeginningoftheyearwhentheNewLeaseStandardisinitiallyimplementedbasedonthecumulativeimpactoftheinitialimplementoftheNewLeaseStandardwithoutadjustingtheinformationforthecomparableperiod.Thischangeinaccountingpolicywillincreasethecompany'stotalassetsandtotalliabilities,butitisnotexpectedtohaveasignificantimpactontheowner'sequityandnetprofit. |
Themainimpactoftheretroactiveadjustmentsresultingfromtheabovechangesinaccountingpoliciesonthefinancialstatementsareasfollows:
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)Consolidatedbalancesheet:
ASSETS
| ASSETS | 31December2018 | 1January2019 | Adjustment |
| Currentassets | |||
| Cashandbankbalances | 8,089,781,304.56 | 8,089,781,304.56 | |
| Notesreceivable | 1,357,311,929.63 | 789,536,654.23 | (567,775,275.40) |
| Accountsreceivable | 9,336,861,647.92 | 9,336,861,647.92 | |
| Receivablefinancing | - | 567,775,275.40 | 567,775,275.40 |
| Advancestosuppliers | 583,484,515.95 | 419,443,944.83 | (164,040,571.12) |
| Otherreceivables | 643,493,359.32 | 643,493,359.32 | |
| Incl:Interestreceivable | 8,223,327.64 | 8,223,327.64 | |
| Inventories | 4,389,335,942.19 | 4,389,335,942.19 | |
| Othercurrentassets | 95,347,629.18 | 95,347,629.18 | |
| Totalcurrentassets | 24,495,616,328.75 | 24,331,575,757.63 | (164,040,571.12) |
| Non-currentassets | |||
| Long-termequityinvestments | 1,880,393,786.10 | 1,880,393,786.10 | |
| Otherequityinstrumentsinvestment | 13,685,760.00 | 13,685,760.00 | |
| Othernon-currentfinancialassets | 140,000,000.00 | 140,000,000.00 | |
| Investmentproperties | 144,894,495.97 | 144,894,495.97 | |
| Fixedassets | 607,933,827.67 | 594,067,973.91 | (13,865,853.76) |
| Constructioninprogress | 36,412,614.61 | 36,412,614.61 | |
| Right-of-useassets | - | 1,782,725,159.78 | 1,782,725,159.78 |
| Intangibleassets | 319,207,126.15 | 318,693,082.72 | (514,043.43) |
| Goodwill | 833,547,800.60 | 833,547,800.60 | |
| Long-termprepaidexpenses | 311,328,706.46 | 311,328,706.46 | |
| Deferredtaxassets | 74,914,209.95 | 74,914,209.95 | |
| Othernon-currentassets | 72,365,863.71 | 58,168,919.11 | (14,196,944.60) |
| Totalnon-currentassets | 4,434,684,191.22 | 6,188,832,509.21 | 1,754,148,317.99 |
| Totalassets | 28,930,300,519.97 | 30,520,408,266.84 | 1,590,107,746.87 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)
LIABILITIES
| LIABILITIES | 31December2018 | 1January2019 | Adjustment |
| Currentliabilities | |||
| Short-termborrowings | 2,597,652,702.43 | 2,597,652,702.43 | |
| Notespayable | 3,416,755,681.80 | 3,416,755,681.80 | |
| Accountspayable | 6,468,535,961.17 | 6,468,535,961.17 | |
| Advancesfromcustomers | - | - | |
| Employeebenefitspayable | 231,866,407.40 | 231,866,407.40 | |
| Taxpayable | 241,980,412.72 | 241,980,412.72 | |
| Otherpayables | 1,539,436,971.93 | 1,539,436,971.93 | |
| Incl:Interestpayable | 21,906,660.63 | 21,906,660.63 | |
| Dividendspayable | 6,389,320.96 | 6,389,320.96 | |
| Contractliabilities | 255,590,612.37 | 255,590,612.37 | |
| Non-currentliabilitiesduewithinoneyear | 5,861,324.37 | 495,132,751.96 | 489,271,427.59 |
| Othercurrentliabilities | 292,465.75 | 292,465.75 | |
| Totalcurrentliabilities | 14,757,972,539.94 | 15,247,243,967.53 | 489,271,427.59 |
| Non-currentliabilities | |||
| Long-termborrowings | 31,600,000.00 | 31,600,000.00 | |
| Leaseliabilities | - | 1,104,600,297.80 | 1,104,600,297.80 |
| Long-termpayables | 4,563,978.52 | 800,000.00 | (3,763,978.52) |
| Long-termemployeebenefitspayable | 2,050,000.00 | 2,050,000.00 | |
| Deferredincome | 91,491,170.40 | 91,491,170.40 | |
| Deferredtaxliabilities | 67,605,161.88 | 67,605,161.88 | |
| Othernon-currentliabilities | 69,241,176.18 | 69,241,176.18 | |
| Totalnon-currentliabilities | 266,551,486.98 | 1,367,387,806.26 | 1,100,836,319.28 |
| Totalliabilities | 15,024,524,026.92 | 16,614,631,773.79 | 1,590,107,746.87 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)
SHAREHOLDERS’EQUITY
| SHAREHOLDERS’EQUITY | 31December2018 | 1January2019 | Adjustment |
| Shareholders’equity | ||
| Sharecapital | 428,126,983.00 | 428,126,983.00 |
| Capitalsurplus | 4,320,984,981.51 | 4,320,984,981.51 |
| Surplusreserve | 214,063,491.50 | 214,063,491.50 |
| Retainedearnings | 6,655,257,147.27 | 6,655,257,147.27 |
| Shareholders’equityattributabletoshareholdersoftheparent | 11,618,432,603.28 | 11,618,432,603.28 |
| Non-controllinginterests | 2,287,343,889.77 | 2,287,343,889.77 |
| Totalshareholders’equity | 13,905,776,493.05 | 13,905,776,493.05 |
| Totalliabilitiesandshareholders’equity | 28,930,300,519.97 | 30,520,408,266.84 | 1,590,107,746.87 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)Company’sbalancesheet：
ASSETS
| ASSETS | 31December2018 | 1January2019 | Adjustment |
| Currentassets | |||
| Cashandbankbalances | 1,817,654,598.01 | 1,817,654,598.01 | |
| Notesreceivable | 63,870,980.39 | 34,154,774.75 | (29,716,205.64) |
| Accountsreceivable | 631,236,593.94 | 631,236,593.94 | |
| Receivablefinancing | 29,716,205.64 | 29,716,205.64 | |
| Advancestosuppliers | 4,760,182.00 | 4,757,318.66 | (2,863.34) |
| Otherreceivables | 1,541,980,883.50 | 1,541,980,883.50 | |
| Incl:Interestreceivable | 7,550,877.07 | 7,550,877.07 | |
| Dividendsreceivable | - | - | |
| Inventories | 158,166,185.65 | 158,166,185.65 | |
| Othercurrentassets | 39,482.38 | 39,482.38 | |
| Totalcurrentassets | 4,217,708,905.87 | 4,217,706,042.53 | (2,863.34) |
| Non-currentassets | |||
| Long-termequityinvestments | 7,432,906,692.24 | 7,432,906,692.24 | |
| Othernon-currentfinancialassets | 140,000,000.00 | 140,000,000.00 | |
| Investmentproperties | 1,955,854.46 | 1,955,854.46 | |
| Fixedassets | 21,362,422.03 | 21,362,422.03 | |
| Right-of-useassets | - | 6,827,171.38 | 6,827,171.38 |
| Intangibleassets | 2,452,222.51 | 2,452,222.51 | |
| Long-termdeferredexpenses | 7,481,809.53 | 7,481,809.53 | |
| Othernon-currentassets | 7,000,000.00 | 7,000,000.00 | |
| Totalnon-currentassets | 7,613,159,000.77 | 7,619,986,172.15 | 6,827,171.38 |
| Totalassets | 11,830,867,906.64 | 11,837,692,214.68 | 6,824,308.04 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)
LIABILITIES
| LIABILITIES | 31December2018 | 1January2019 | Adjustment |
| Currentliabilities | |||
| Short-termborrowings | 539,000,000.00 | 539,000,000.00 | |
| Notespayable | 252,317,800.78 | 252,317,800.78 | |
| Accountspayable | 442,049,241.22 | 442,049,241.22 | |
| Contractliabilities | 4,182,083.40 | 4,182,083.40 | |
| Employeebenefitspayable | 36,233,563.12 | 36,233,563.12 | |
| Taxpayables | 13,426,601.90 | 13,426,601.90 | |
| Otherpayables | 1,481,817,856.56 | 1,481,817,856.56 | |
| Incl:Interestpayable | 1,354,592.35 | 1,354,592.35 | |
| Non-currentliabilitiesduewithinoneyear | - | 786,068.44 | 786,068.44 |
| Othercurrentliabilities | 226,427.99 | 226,427.99 |
| Totalcurrentliabilities | 2,769,253,574.97 | 2,770,039,643.41 | 786,068.44 |
| Non-currentliabilities | |||
| Long-termborrowings | 31,600,000.00 | 31,600,000.00 | |
| Leaseliabilities | - | 6,038,239.60 | 6,038,239.60 |
| Long-termpayables | 800,000.00 | 800,000.00 | |
| Long-termemployeebenefitspayable | 118,000.00 | 118,000.00 | |
| Deferredincome | 1,687,899.50 | 1,687,899.50 | |
| Deferredtaxliabilities | 2,298,426.39 | 2,298,426.39 |
| Totalnon-currentliabilities | 36,504,325.89 | 42,542,565.49 | 6,038,239.60 |
| Totalliabilities | 2,805,757,900.86 | 2,812,582,208.90 | 6,824,308.04 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
(33)Changesinaccountingpoliciesandaccountingestimates(Continued)
SHAREHOLDERS’EQUITY
| SHAREHOLDERS’EQUITY | 31December2018 | 1January2019 | Adjustment |
| Shareholders’equity | ||
| Sharecapital | 428,126,983.00 | 428,126,983.00 |
| Capitalsurplus | 4,426,362,777.26 | 4,426,362,777.26 |
| Surplusreserves | 214,063,491.50 | 214,063,491.50 |
| Retainedearnings | 3,956,556,754.02 | 3,956,556,754.02 |
| Totalshareholders’equity | 9,025,110,005.78 | 9,025,110,005.78 |
| Totalliabilitiesandshareholders’equity | 11,830,867,906.64 | 11,837,692,214.68 | 6,824,308.04 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IVTaxation
1.Maincategoriesandratesoftaxes:
Categories
| Categories | Taxbase | Taxrate |
| Corporateincometax(“CIT”) | Taxableincome | 15%,20%or25% |
| Valueaddedtax(“VAT”) | Taxablevalueaddedamount(TaxpayableiscalculatedbyusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod) | 0%,3%,5%,6%,9%,10%,13%,16% |
| Citymaintenanceandconstructiontax | AmountofVAT | 5%or7% |
| Educationalsurcharge | AmountofVAT | 3% |
| Localeducationalsurcharge | AmountofVAT | 2% |
2.Taxpreferences(a)In2011,theUrumqiHeadOffice,ChangjiBranchandKaramayBranchofSinopharmHoldingXinjiangNew&SpecialMedicinesChainStoreCo.,Ltd.(“XinjiangNew&SpecialMedicines”),subsidiariesofthegroup,shallpaytaxatarateof15%byjurisdictions.AccordingtotheCircularoftheMinistryofFinance,theStateAdministrationofTaxation,theGeneralAdministrationofCustomsonIssuesConcerningTaxPoliciesfortheFurtherDevelopmentoftheWesternRegions(Caishui[2011]No.58),enterprisesfromencouragedindustriesintheWesternRegions,couldenjoyareducedCITrateof15%from1January2011to31December2020.In2014,theGroup’ssubsidiarySinopharmHoldingGuangxiLogisticsCo.,Ltd.(“SinopharmGuangxiLogistics”)wasapprovedbytheGuangxiLocalTaxBureautoenjoyataxdiscountapplicabletocorporationsintheregionofWesternDevelopmenttopayincometaxatataxrateof15%.EightsubsidiariesinGuangxiProvinceoftheGroup,includingSinopharmGuangxi,SinopharmHoldingLiuzhouCo.,Ltd.(“SinopharmLiuzhou”),SinopharmHoldingBeihaiCo.,Ltd(“SinopharmBeihai”),SinopharmHoldingGuilinCo.,Ltd.(“SinopharmGuilin”),SinopharmHoldingGuigangCo.,Ltd.(“SinopharmGuigang”),SinopharmHoldingYulinCo.,Ltd.(“SinopharmYulin”),SinopharmHoldingBaiseCo.,Ltd(“SinopharmBaise”)andSinopharmHoldingWuzhouCo.,Ltd.(“SinopharmWuzhou”)wereallapprovedbytheGuangxiLocalTaxBureautoenjoyataxconcessionofWesternDevelopmentatapreferentialCITrateof15%.TheapplicableperiodforSinopharmGuangxi,SinopharmLiuzhouandSinopharmBeihaiis1January2014to31December2020,andthatfortheother5subsidiariesis1January2015to31December2020.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IVTaxation(Continued)
2.Taxpreferences(Continued)TheGroup'ssubsidiarySinopharmHoldingNationalPharmacyInnerMongoliaCo.,Ltd.(hereinafterreferredtoas"NationalUniversityofInnerMongolia"),SinopharmHoldingNationalPharmacyHulunbeierCo.,Ltd.,SinopharmHoldingNationalPharmacyWulanchabuCo.,Ltd.,NationalUniversityPharmacyManzhouliCo.,Ltd.,SinopharmHoldingNationalPharmacyBayannaoerCo.,Ltd.andInnerMongoliaNUSPharmaceuticalCo.,Ltd.,inaccordancewiththeprovisionsofCaishui[2011]No.58Document,meettheconditionsfortheenjoymentofcorporateincometaxbenefitsintheWesternDevelopment,andobtaintheNoticeofApprovalforReductionandExemptionofTaxes.In2019,theenterpriseincometaxwaspaidatapreferentialtaxrateof15%.AccordingtoCaishui[2011]No.58Document,SinopharmHoldingNationalPharmacyGuangxiChainCo.,Ltd.andNingxiaGuodaPharmacyChainCo.,Ltd.reducedthecorporateincometaxof2019atareducedrateof15%.Inthehalfyearof2019,accordingtothe"NoticeonImplementingtheInclusiveTaxDeductionPolicyforSmallandMicroEnterprises"(CaiShui[2019]No.13):theGroup'ssubsidiarySinopharmMedicalSupplyChainService(Guangxi)Co.,Ltd.,ShanghaiGuodaDongshengPharmacyCo.,Ltd.,SinopharmHoldingNationalPharmacyGuangzhouChainCo.,Ltd.,TaishanCityGuokongGuodaGroupKangdaPharmacyChainCo.,Ltd.,GuangxiGuodaPharmaceuticalConsultingChainCo.,Ltd.,ChangzhiCityGuodaWanminPharmacyCo.,Ltd.,ShanghaiFumeiXuhuiPharmacyCo.,Ltd.,SanheLiyangJinxiangPharmacyCo.,Ltd.,SinopharmHoldingNationalPharmacyHulunbeierCo.,Ltd.Thecompany,NUSPharmacyManzhouliCo.,Ltd.paystaxableincomelessthanRMB3million,andmeetstherequirementsofsmallandmeagerprofitenterprises,soitpayscorporateincometaxatarateof20%.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements
1.Cashandbankbalances
30June2019
| 30June2019 | 1January2019 |
| Cashonhand | 3,415,085.25 | 5,587,191.18 | |
| Cashatbanks | 7,765,559,793.66 | 7,626,529,829.59 | |
| Othercashbalances | 317,353,629.58 | 457,664,283.79 |
| 8,086,328,508.49 | 8,089,781,304.56 |
At30June2019,othercashbalanceswereconsistedoflettercreditdepositsamountingtoRMB305,806.00(31December2018:RMB4,191,246.00),bankacceptancenotesdepositsamountingtoRMB317,047,823.58(31December2018:RMB453,473,037.79).
2.Notesreceivable
| 30June2019 | 1January2019 |
| Tradeacceptancenotes | 790,664,828.26 | 789,536,654.23 | |
| Bankacceptancenotes | - | - |
| 790,664,828.26 | 789,536,654.23 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
2.Notesreceivable(Continued)
NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2019and31December2018areasfollows:
NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2019and31December2018areasfollows:
30June2019
| 30June2019 | |
| Derecognized | Notderecognized |
| Tradeacceptancenotes | 216,316,836.99 | |
| Bankacceptancenotes | - |
216,316,836.99
Asat30June2019and31December2018,notesthatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenoteonmaturitydateareasfollows:
Asat30June2019and31December2018,notesthatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenoteonmaturitydateareasfollows:
30June2019
30June2019Bankacceptancenotes
| Bankacceptancenotes | - | |
| Tradeacceptancenotes | 20,010,459.85 |
3.Accountsreceivable
20,010,459.85Theaccountsreceivablebycategoryareanalyzedbelow:
Theaccountsreceivablebycategoryareanalyzedbelow:
30June2019
| 30June2019 | 1January2019 | |||||||||
| Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt | |||||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Itemsforwhichprovisionforbaddebtisrecognisedseparately | 613,529,239.36 | 5.17% | 19,044,116.83 | 3.10% | 595,919,487.29 | 6.36% | 16,766,679.23 | 2.81% | |||
| Itemsforwhichprovisionforbaddebtisrecognizedbygroup(creditriskcharacteristics) | 11,262,211,636.12 | 94.83% | 30,256,027.06 | 0.27% | 8,780,463,595.37 | 93.64% | 22,754,755.51 | 0.26% |
| 11,875,740,875.48 | 100.00% | 49,300,143.89 | 0.42% | 9,376,383,082.66 | 100.00% | 39,521,434.74 | 0.42% |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
At30June2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
At30June2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Accountsreceivable(bycompany)
| Accountsreceivable(bycompany) | Carryingamount | Baddebtprovision | Rate | Assessmentforimpairment |
| Receivableofmedicalinsurance | 352,956,757.11 | 588,948.80 | 0.17% | Partofthemedicalinsurancereceivabletakeslongertocollect,andhasriskofdefault |
| ReceivableofE-Businessothersuppliers | 110,676,893.44 | 6,739,296.66 | 6.09% | ReceivableofE-Businesswithlowriskofrecoverability |
| Receivableofcardsettlement,e-commerceandthird-party | 55,508,719.88 | - | 0.00% | ReceivableofFranchiseswithnoriskofrecoverability |
| Receivableofrelatedparty | 47,567,694.11 | - | 0.00% | Receivableduefromarelatedpartywithlowriskofrecoverability |
| DatonXinJianKangHospital | 21,439,257.44 | - | 0.00% | Receivableduefromafixedcooperativehospitalwithnoriskofrecoverability |
| LiuzhouRailwayCentralHospital | 13,820,739.09 | 156,693.08 | 1.13% | Bothpartiestothetransactionhavedifferencesintheamountofpurchaseandsalesandhasriskofdefault |
| HubeixianningPharmaceuticalCo.,Ltd., | 11,559,178.29 | 11,559,178.29 | 100.00% | Alawsuithasbeenfiledagainstthecustomerandhashighriskofdefault |
| Total | 613,529,239.36 | 19,044,116.83 | - | - |
Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss:
30June2019
| 30June2019 | ||
| Estimateddefaultamount | Expectedcreditlossinentirelifetime | Expectedcreditlossrate |
| Within1year | 11,186,234,127.33 | 25,495,025.53 | 0.23% |
| 1to2years | 71,069,101.89 | 3,646,494.40 | 5.13% |
| 2to3years | 1,616,063.02 | 194,281.68 | 12.02% |
| Over3years | 3,292,343.88 | 920,225.45 | 27.95% |
| 11,262,211,636.12 | 30,256,027.06 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)Theaginganalysisofaccountsreceivableswasasfollows:
30June2019
30June2019Within1year
| Within1year | 11,753,416,277.07 |
| 1to2years | 80,575,034.81 |
| 2to3years | 3,374,443.53 |
| 3to4years | 24,801,268.92 |
| 4to5years | 12,775,655.02 |
| Over5years | 798,196.13 |
| Total | 11,875,740,875.48 |
Baddebtprovisionforthecurrentperiodasfollows:
| Openingbalance | Reversalofwrite-offinpreviousyears | Increasesintheyear | Reversalintheyear | Writtenoffintheyear | Closingbalance | |
| Baddebts | 39,521,434.74 | 11,040.00 | 16,376,925.13 | (6,609,255.98) | - | 49,300,143.89 |
| total | 39,521,434.74 | 11,040.00 | 16,376,925.13 | (6,609,255.98) | - | 49,300,143.89 |
On30June2019,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Thetopfiveaccountsreceivabletotal | 861,862,590.71 | 363,240.29 | 7.25% |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
4.Accountsreceivablefinancing
30June2019
| 30June2019 | 1January2019 |
| Bankacceptancenotes | 325,439,580.18 | 567,775,275.40 |
| 325,439,580.18 | 567,775,275.40 |
5.Advancestosuppliers
| (a) | Theagingofadvancestosuppliersisanalyzedbelow: |
| 30June2019 | 1January2019 | ||
| Amount | %oftotalbalance | Amount | %oftotalbalance |
| Within1year | 355,664,414.27 | 99.60% | 416,103,769.08 | 99.20% |
| 1to2years | 1,215,326.29 | 0.34% | 873,351.85 | 0.21% |
| 2to3years | 109,088.48 | 0.03% | 2,466,823.90 | 0.59% |
| Above3years | 89,990.60 | 0.03% | - | - |
| 357,078,819.64 | - | 419,443,944.83 | - |
TheprepaymentagedformorethanayearismainlytheadvanceequipmentamountingtoRMB1,414,405.37(31December2018:RMB3,340,175.75)asthehospitalequipmentprocurementisalargeprojectwhichtakesalongtimetocomplete.(b)
| (b) | On30June2019,thetopfiveadvancestosuppliersbycustomeraresummarizedbelow: |
| Amount | Proportionoftotalbalance |
| Totalamountoftopfiveadvancestosuppliers | 128,740,740.37 | 36.05% |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables
30June2019
| 30June2019 | 1January2019 |
| Interestreceivable | 14,791,483.10 | 8,223,327.64 |
| Otherreceivables | 639,294,904.75 | 635,270,031.68 |
| 654,086,387.85 | 643,493,359.32 |
（1）Interestreceivable
| 30June2019 | 1January2019 |
| Fixeddeposits | 13,306,641.88 | 6,376,708.68 |
| EntrustedLoans | 1,484,841.22 | 1,846,618.96 |
| 14,791,483.10 | 8,223,327.64 |
（2）Otherreceivables
Categoryofotherreceivablesbynatureisasfollows:
Nature
| Nature | 30June2019 | 1January2019 |
| Deposits | 257,903,552.46 | 278,455,623.30 |
| Receivableduefromrelatedparties | 10,414,842.49 | 8,119,399.79 |
| Entrustedborrowings | 44,000,000.00 | 44,000,000.00 |
| Pettycashadvancetoemployees | 17,538,148.13 | 12,439,613.27 |
| Receivableofequitytransactions | 8,980,000.00 | 8,980,000.00 |
| Others | 321,989,366.05 | 303,197,349.04 |
| Total | 660,825,909.13 | 655,191,985.40 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Thechangesinbaddebtprovisionforotherreceivablesbasedontheentirelifetimeexpectedcreditlossesareasfollows:
Stage1
| Stage1 | Stage2 | Stage3 | ||
| Baddebt | Expectedcreditlossesoverthenext12months | Entirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred) | Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred) | Total |
| Balanceat1January2019 | - | 19,921,953.72 | - | 19,921,953.72 |
| Balanceat1January2019duringtheperiod | ||||
| Provisionsduringtheperiod | - | 3,108,281.87 | - | 3,108,281.87 |
| Reversalduringtheperiod | - | (1,441,849.89) | - | (1,441,849.89) |
| Write-backduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | (57,381.32) | - | (57,381.32) |
| OtherChanges | - | - | - | - |
| Balanceat30June2019 | - | 21,531,004.38 | - | 21,531,004.38 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Theaginganalysisofotherreceivableswasasfollows:
30June2019
30June2019Within1year
| Within1year | 526,279,992.21 |
| 1to2years | 98,441,809.40 |
| 2to3years | 15,955,086.40 |
| Over3years | 20,149,021.12 |
| Total | 660,825,909.13 |
Baddebtprovisionofotherreceivablesin2019wasRMB3,108,281.87,withtherecoveredorreversedamountofRMB1,441,849.89,andthewrittenoffamountofRMB57,381.32.Asat30June2019，thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:
Asat30June2019，thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:
Nature
| Nature | Amount | Age | %oftotalamount | Provisionofbaddebt |
| GuangdongPharmaceuticalelectronictradingplatform | Pharmaceuticaltradingplatformrepaymentnotyetcleared | 111,024,446.08 | Within1year | 16.80% |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Entrustedborrowings | 44,000,000.00 | Within2year | 6.66% |
| TCM-IntegratedCancerCenterofSouthernMedicalUniversity | Depositoflogisticsextensionservicesproject | 30,082,900.00 | Within2year | 4.55% |
| ShenyangMedicalInsuranceManagementServiceCenter | Amountduefromgovernment | 27,635,423.96 | Within1year | 4.18% |
| ShenzhenSocialInsuranceFundAdministration | Amountduefromgovernment | 18,714,610.23 | Within1year | 2.83% |
| 231,457,380.27 | 35.03% | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
7.Inventories
(a)
| (a) | Inventoriesbycategoryareanalyzedbelow: | |||||||
| 30June2019 | 1January2019 | |||||||
| Bookvalue | Provision | Netbookvalue | Bookvalue | Provision | Netbookvalue | |||
| Rawmaterials | 362,562.93 | - | 362,562.93 | 1,410,012.28 | - | 1,410,012.28 | |
| Workinprogress | 5,344.32 | - | 5,344.32 | 1,011,007.23 | - | 1,011,007.23 | |
| Finishedgoods | 4,883,623,033.69 | 7,772,292.62 | 4,875,850,741.07 | 4,392,144,746.88 | 8,313,195.29 | 4,383,831,551.59 | |
| Lowcostconsumables | 6,454,967.95 | - | 6,454,967.95 | 3,083,371.09 | - | 3,083,371.09 |
| 4,890,445,908.89 | 7,772,292.62 | 4,882,673,616.27 | 4,397,649,137.48 | 8,313,195.29 | 4,389,335,942.19 |
| (b) | Provisionfordeclinesinvalueofinventoriesisanalysedbelow: |
| 1January2019 | Increases | Decreases | 30June2019 | ||
| charge | Other | ReversalorWrittenoff | Other | ||
| Finishedgoods | 8,313,195.29 | 1,567,262.18 | - | 2,108,164.85 | - | 7,772,292.62 |
| 8,313,195.29 | 1,567,262.18 | - | 2,108,164.85 | - | 7,772,292.62 |
8.Othercurrentassets
| 30June2019 | 1January2019 |
| InputVATtobecredited | 95,048,826.51 | 94,312,573.34 | |
| Corporateincometaxtobededucted | 2,041,094.25 | 723,000.46 | |
| Others | 227,366.84 | 312,055.38 |
| 97,317,287.60 | 95,347,629.18 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments
Associatesin2019
Investee
| Investee | 1January2019 | Changesintheyear | 30June2019 | Provisionforimpairment | ||||
| AdditionalInvestment | Profitoflossunderequitymethod | Otherchangesinequity | Cashdividenddeclaredbyinvestee | Impairmentprovision | ||||
| Associates | ||||||||
| ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”). | 265,316,653.68 | - | 33,592,995.70 | - | - | - | 298,909,649.38 | - |
| ZhijunMedicine | 355,353,196.15 | - | 58,536,101.74 | - | - | - | 413,889,297.89 | - |
| ZhijunTrade | 8,730,994.87 | - | 1,467,031.77 | - | - | - | 10,198,026.64 | - |
| ZhijunSuzhou | 23,379,018.92 | - | (11,390,538.03) | - | - | - | 11,988,480.89 | - |
| PingshanMedicine | 86,292,927.33 | - | 22,425,900.45 | - | - | - | 108,718,827.78 | - |
| ShyndecPharmaceutical | 1,098,566,852.51 | - | 65,258,503.45 | 42,424,747.00 | (16,896,427.80) | - | 1,189,353,675.16 | - |
| ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd. | 11,029,918.10 | - | 247,588.49 | - | (1,052,999.99) | - | 10,224,506.60 | - |
| ShanghaiLiyiPharmacyCo.,Ltd. | 955,428.23 | - | - | - | - | - | 955,428.23 | - |
| ShanghaiRenbeiPharmacyCo.,Ltd | - | 1,800,000.00 | - | 1,800,000.00 | ||||
| GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd. | - | 2,000,000.00 | - | 2,000,000.00 | ||||
| SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.(“GuangdongJienuo”) | 6,802,156.19 | - | (995,293.58) | - | - | - | 5,806,862.61 | - |
| ShanghaiDingqunManagement&ConsultingCo.,Ltd | 23,966,640.12 | - | - | - | - | - | 23,966,640.12 | - |
| DongyuanAccordPharmaceuticalChainCo.,Ltd. | 396,638.32 | - | - | - | - | - | 396,638.32 | 396,638.32 |
| 1,880,790,424.42 | 3,800,000.00 | 169,142,289.99 | 42,424,747.00 | (17,949,427.79) | - | 2,078,208,033.62 | 396,638.32 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
10.Otherequityinstrumentinvestment
30June2019
| 30June2019 | 1January2019 |
| SinopharmHealthOnlineCo.,Ltd. | 12,000,000.00 | 12,000,000.00 | |
| SinopharmGuodaHubeiCo.,Ltd. | 1,000,000.00 | 1,000,000.00 | |
| HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd. | 315,000.00 | 315,000.00 | |
| ShanghaiGuodaShuguangPharmacyCo.,Ltd | 270,760.00 | 270,760.00 | |
| ShanghaiGuorenPharmacyCo.,Ltd. | 100,000.00 | 100,000.00 |
| 13,685,760.00 | 13,685,760.00 |
11.Othernon-currentfinancialassets
| 30June2019 | 1January2019 |
| Financialassetmeasuredatfairvaluethroughcurrentprofitorloss | 140,000,000.00 | 140,000,000.00 | |
| 140,000,000.00 | 140,000,000.00 |
OnJune30,2019,thebalanceofothernon-currentfinancialassetswasthefairvalueoftheshareoftheSinopharmCICCMedicalIndustryFund(referredtoas“theIndustrialFund”)subscribedbytheCompany.TheGroup's21stmeetingofthe7thBoardofDirectorsheldonJanuary6,2017reviewedandapprovedtheproposaloftheCompanytosubscribefortheindustryfundandrelatedpartytransactions.Asalimitedpartneroftheindustryfund,thecompanyplanstoinvestRMB200milliontosubscribefortheshareoftheindustrialfund,whichwillbepaidinthreephases.ThecompanypaidtheinitialinvestmentofRMB60millionin2017.AsofDecember31,2017,thefunddidnotcompletetherelevantlicensesandapprovalsanddidnotstartoperations.Therefore,thecompany'sinitialinvestmentamountedtoRMB60million.Includedinothernon-currentassets.In2018,thecompanypaidthesecondphaseofthecapitalcontributionofRMB80million.AsofJune30,2019,thecompanyhadpaidatotalofRMB140million.Theindustryfundhasobtainedrelevantapprovalsin2018andhasstartedoperations.SincethecashflowobtainedbytheCompanyfromtheinvestmentofthefundincludesboththecontractualcashflowgeneratedbytheunderlyingassetsduringtheinvestmentperiodandthecashflowofthedisposaloftheunderlyingassets,thecontractualcashflowthatdoesnotsatisfythefinancialassetsgeneratedonaspecificdateisonlyThepaymentofinterestonthebasisoftheoutstandingprincipalamount,therefore,theCompanyclassifiestheinvestmentoftheindustrialfundintofinancialassetsmeasuredatfairvaluethroughprofitorlossandpresentedasothernon-currentfinancialassets..
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
12.InvestmentpropertiesSubsequentmeasurementunderthecostmodel:
2019
| 2019 | Buildingsandconstructions | Landuseright | Constructioninprogress | Total | |
| Originalcost | |||||
| Openingbalance | 242,555,189.91 | 22,719,102.03 | 265,274,291.94 | ||
| Purchase | - | - | - | ||
| Transfertofixedassets | 1,634,951.97 | - | 1,634,951.97 | ||
| Closingbalance | 240,920,237.94 | 22,719,102.03 | 263,639,339.97 |
| Accumulateddepreciationandamortization | |||||
| Openingbalance | 111,131,166.21 | 7,948,629.76 | 119,079,795.97 | ||
| Provision | 3,376,058.13 | 51,879.46 | 3,427,937.59 | ||
| Transfertofixedassets | 487,533.59 | - | 487,533.59 | ||
| Closingbalance | 114,019,690.75 | 8,000,509.22 | 122,020,199.97 |
| Provisionforimpairment | |||||
| Openingbalance | 1,300,000.00 | - | 1,300,000.00 | ||
| Closingbalance | 1,300,000.00 | - | 1,300,000.00 |
| Carryingamount | |||||
| Atendoftheperiod | 125,600,547.19 | 14,718,592.81 | 140,319,140.00 | ||
| Atbeginningoftheperiod | 130,124,023.70 | 14,770,472.27 | 144,894,495.97 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets
2019
| 2019 | ||||||
| Buildings | Machinery | Vehicles | Otherequipment | Fixedassetimprovements | Total | |
| Originalcost | ||||||
| Openingbalance | 489,661,268.82 | 185,444,104.09 | 89,613,300.13 | 294,575,902.89 | 54,661,564.43 | 1,113,956,140.36 |
| Purchase | 714,456.83 | 16,956,031.53 | 5,069,073.21 | 15,843,713.46 | 17,383,853.37 | 55,967,128.40 |
| Transferfromconstructioninprogress | - | 2,113,175.66 | - | 816,880.96 | - | 2,930,056.62 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - |
| TransferfromInvestmentproperties | 1,634,951.97 | - | - | - | - | 1,634,951.97 |
| Disposalorretirement | - | 1,487,621.64 | 5,499,822.63 | 7,281,743.77 | 10,306,628.70 | 24,575,816.74 |
| Closingbalance | 492,010,677.62 | 203,025,689.64 | 89,182,550.71 | 303,954,753.54 | 61,738,789.10 | 1,149,912,460.61 |
| Accumulateddepreciation | ||||||
| Openingbalance | 164,477,441.12 | 85,085,741.31 | 59,523,264.14 | 172,436,749.05 | 38,364,970.83 | 519,888,166.45 |
| Provision | 7,866,027.60 | 14,213,255.59 | 3,843,870.06 | 12,354,113.52 | 10,639,915.07 | 48,917,181.84 |
| TransferfromInvestmentproperties | 487,533.59 | - | - | - | - | 487,533.59 |
| Disposalorretirement | - | 1,107,179.83 | 3,813,515.96 | 4,549,800.50 | 3,462,405.97 | 12,932,902.26 |
| Closingbalance | 172,831,002.31 | 98,191,817.07 | 59,553,618.24 | 180,241,062.07 | 45,542,479.93 | 556,359,979.62 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
2019(Continued)
| 2019(Continued) | ||||||
| Buildings | Machinery | Vehicles | Otherequipment | Fixedassetimprovements | Total |
| Provisionforimpairment | ||||||
| Openingbalance | - | - | - | - | - | - |
| Disposalofsubsidiaries | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - |
| Carryingamount | ||||||
| Atendofperiod | 319,179,675.31 | 104,833,872.57 | 29,628,932.47 | 123,713,691.47 | 16,196,309.17 | 593,552,480.99 |
| Atbeginningoftheperiod | 325,183,827.70 | 100,358,362.78 | 30,090,035.99 | 122,139,153.84 | 16,296,593.60 | 594,067,973.91 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
Fixedassetswithoutofficialpropertyrightcertificates
Items
| Items | Carryingamount | Reasonforoutstandingpropertyrightcertificates |
| Buildings | 27,259,503.70 | Intheprocess |
14.Constructioninprogress
| 30June2019 | 1January2019 | ||
| Constructioninprogress | 31,980,582.21 | 36,412,614.61 |
| 30June2019 | 1January2019 | ||||
| Carryingbalance | Impairment | Carryingamount | Carryingbalance | Impairment | Carryingamount |
| Warehouseimprovementproject | 862,479.40 | - | 862,479.40 | 806,272.40 | - | 806,272.40 |
| Newofficebuildingproject | 627,903.09 | - | 627,903.09 | 188,251.26 | - | 188,251.26 |
| Supplychainextensionproject | 15,025,013.15 | - | 15,025,013.15 | 12,617,953.89 | - | 12,617,953.89 |
| Softwareproject | 5,544,210.47 | - | 5,544,210.47 | 12,930,498.53 | - | 12,930,498.53 |
| Otherprojects | 9,920,976.10 | - | 9,920,976.10 | 9,869,638.53 | - | 9,869,638.53 |
| 31,980,582.21 | - | 31,980,582.21 | 36,412,614.61 | - | 36,412,614.61 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress(Continued)
| (a) | Changesofsignificantconstructioninprogress |
Changesofsignificantconstructioninprogressin2019arepresentedasfollows:
| Projectname | Budget | Atbeginningoftheyear | Increase | Decrease | Atendofyear | Proportionofinvestmenttobudget(%) | projectprogress | Sourceoffunds | ||
| Transferredtofixedassets | Transferredtointangibleassets | Others | ||||||||
| Warehouseimprovementproject | 2,981,387.76 | 806,272.40 | 1,309,197.95 | 278,461.63 | - | 974,529.32 | 862,479.40 | 60.65% | 60.65% | Ownfunds |
| NewofficebuildingProject | 627,903.08 | 188,251.26 | 439,651.83 | - | - | - | 627,903.09 | 100.00% | 100.00% | Ownfunds |
| Supplychainextensionproject | 33,412,417.24 | 12,617,953.89 | 5,137,275.29 | 2,606,162.49 | - | 124,053.54 | 15,025,013.15 | 53.80% | 53.80% | Ownfunds |
| Softwareproject | 12,949,580.19 | 12,930,498.53 | 5,563,292.13 | 45,432.50 | - | 12,904,147.69 | 5,544,210.47 | 43.20% | 43.20% | Ownfunds |
| Otherconstructionprojects | 206,249,966.06 | 9,869,638.53 | 83,546.40 | - | 32,208.83 | 9,920,976.10 | 4.84% | 4.84% | Ownfunds | |
| 256,221,254.33 | 36,412,614.61 | 12,532,963.60 | 2,930,056.62 | 14,034,939.38 | 31,980,582.21 | - | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
15．Right-of-useassets
Items
| Items | Stores | Officebuilding | Warehouse | Others | Total |
| Originalcost | |||||
| Openingbalance | 1,471,295,979.51 | 48,588,435.58 | 239,171,388.66 | 23,669,356.03 | 1,782,725,159.78 |
| Increase | 364,813,035.13 | 25,970,953.21 | 33,172,962.78 | 423,956,951.12 | |
| Closingbalance | 1,836,109,014.64 | 74,559,388.79 | 272,344,351.44 | 23,669,356.03 | 2,206,682,110.90 |
| Accumulateddepreciation | |||||
| Openingbalance | - | - | - | - | - |
| Depreciation | 261,325,528.91 | 8,926,444.74 | 22,855,535.44 | 2,593,404.18 | 295,700,913.27 |
| Closingbalance | 261,325,528.91 | 8,926,444.74 | 22,855,535.44 | 2,593,404.18 | 295,700,913.27 |
| Carryingamount | |||||
| Atendoftheperiod | 1,574,783,485.73 | 65,632,944.05 | 249,488,816.00 | 21,075,951.85 | 1,910,981,197.63 |
| Atbeginningoftheperiod | 1,471,295,979.51 | 48,588,435.58 | 239,171,388.66 | 23,669,356.03 | 1,782,725,159.78 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
16.Intangibleassets
2019
| 2019 | Landuseright | Software | Trademarks | Favorablelease | Salesnetwork | Franchise | Total |
| Originalcost | |||||||
| Openingbalance | 62,083,143.97 | 142,108,155.42 | 65,977,850.00 | 93,242,000.00 | 112,117,142.86 | 710,000.00 | 476,238,292.25 |
| Purchase | - | 3,733,823.60 | - | - | - | - | 3,733,823.60 |
| Transferfromconstructioninprogress | - | 12,904,147.69 | - | - | - | - | 12,904,147.69 |
| Disposalorretirement | - | - | - | - | - | - | - |
| Closingbalance | 62,083,143.97 | 158,746,126.71 | 65,977,850.00 | 93,242,000.00 | 112,117,142.86 | 710,000.00 | 492,876,263.54 |
| Accumulatedamortization | |||||||
| Openingbalance | 27,889,638.96 | 68,273,563.72 | 196,850.16 | 19,782,823.36 | 40,692,333.33 | 710,000.00 | 157,545,209.53 |
| Provision | 474,270.36 | 9,058,311.54 | - | 2,472,852.94 | 2,802,928.58 | - | 14,808,363.42 |
| Closingbalance | 28,363,909.32 | 77,331,875.26 | 196,850.16 | 22,255,676.30 | 43,495,261.91 | 710,000.00 | 172,353,572.95 |
| Provisionforimpairment | - | - | - | - | - | - | - |
| Openingbalance | - | - | - | - | - | - | - |
| Provision | - | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - | - |
| Carryingamount | |||||||
| Atendoftheperiod | 33,719,234.65 | 81,414,251.45 | 65,780,999.84 | 70,986,323.70 | 68,621,880.95 | - | 320,522,690.59 |
| Atbeginningoftheperiod | 34,193,505.01 | 73,834,591.70 | 65,780,999.84 | 73,459,176.64 | 71,424,809.53 | - | 318,693,082.72 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill
(1)Goodwillcost
30June2019
| 30June2019 | Openingbalance | Increase | Decrease | Closingbalance |
| SinopharmHolding(Jiangmen)MedicalCo.,Ltd.(“SinopharmJiangmen”) | 27,392,317.73 | - | - | 27,392,317.73 |
| SinopharmHoldingShenzhenYanfengCo.,Ltd.(“SinopharmYanfeng”) | 16,868,644.87 | - | - | 16,868,644.87 |
| SinopharmHoldingZhaoqingCo.,Ltd.(“SinopharmZhaoqing”) | 2,594,341.53 | - | - | 2,594,341.53 |
| SinopharmHoldingShaoguanCo.,Ltd.(“SinopharmShaoguan”) | 1,686,496.80 | - | - | 1,686,496.80 |
| SinopharmHoldingMeizhouCo.,Ltd.(“SinopharmMeizhou”) | 1,610,819.66 | - | - | 1,610,819.66 |
| SinopharmHoldingHuizhouCo.,Ltd.(“SinopharmHuizhou”) | 923,184.67 | - | - | 923,184.67 |
| SinopharmHoldingZhanjiangCo.,Ltd.(“SinopharmZhanjiang”) | 282,135.55 | - | - | 282,135.55 |
| SinopharmHoldingDongguanCo.,Ltd.(“SinopharmDongguan”) | 1,499.02 | - | - | 1,499.02 |
| SouthPharma&Trade | 2,755,680.62 | - | - | 2,755,680.62 |
| FoshanNanhai | 88,877,850.51 | - | - | 88,877,850.51 |
| SinopharmHoldingZhuhaiCo.,Ltd.(SinopharmZhuhai) | 6,772,561.47 | - | - | 6,772,561.47 |
| SinopharmHoldingMaomingCo.,Ltd.(“SinopharmMaoming”) | 66,417.07 | - | - | 66,417.07 |
| SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd.(“ForMeMedicines”) | 3,033,547.53 | - | - | 3,033,547.53 |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd | 22,666,179.77 | - | - | 22,666,179.77 |
| SinopharmHoldingGuodaInnerMongoliaCo.,Ltd. | 70,485,777.00 | - | - | 70,485,777.00 |
| SinopharmHebeiLerentangPharmaceuticalChainCo.,Ltd. | 29,482,149.57 | - | - | 29,482,149.57 |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd.. | 77,350,000.00 | - | - | 77,350,000.00 |
| SinopharmHoldingGuodaShanxiYiyuanChainCo.,Ltd. | 9,080,100.00 | - | - | 9,080,100.00 |
| TaiyuanTongxinliGuodaPharmacyCo.,Ltd. | 2,818,647.85 | - | - | 2,818,647.85 |
| SinopharmHoldingGuodaShanghaiPharmacyChainStoreCo.,Ltd. | 5,028,638.00 | - | - | 5,028,638.00 |
| SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd.. | 7,979,000.00 | - | - | 7,979,000.00 |
| ZhejiangGuodaPharmacyCo.,Ltd. | 3,045,183.85 | - | - | 3,045,183.85 |
| ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.storeacquisition. | 13,420,000.00 | - | - | 13,420,000.00 |
| TaishanSinopharmHoldingGuodaQunkangPharmacyChainCo.,Ltd. | 26,826,120.55 | - | - | 26,826,120.55 |
| FujianGuodaPharmacyChainStoreCo.,Ltd. | 1,567,250.76 | - | - | 1,567,250.76 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
(1)Goodwillcost(Continued)
30June2019(Continued)
| 30June2019(Continued) | Openingbalance | Increasel | Decrease | Closingbalance |
| SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd. | 41,047,958.08 | - | - | 41,047,958.08 |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd. | 11,598,341.12 | - | - | 11,598,341.12 |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd. | 29,110,409.46 | - | - | 29,110,409.46 |
| QuanzhouGuodaPharmacyChainStoreCo.,Ltd. | 41,298,622.59 | - | - | 41,298,622.59 |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd. | 41,165,574.64 | - | - | 41,165,574.64 |
| ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd. | 65,025,000.00 | - | - | 65,025,000.00 |
| XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd. | 15,866,680.00 | - | - | 15,866,680.00 |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd. | 107,275,095.74 | - | - | 107,275,095.74 |
| SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd. | 19,405,450.23 | - | - | 19,405,450.23 |
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited | 64,140,124.36 | - | - | 64,140,124.36 |
| SinopharmHoldingGuodaBayannaoerCo.,Ltd. | - | 13,494,000.00 | - | 13,494,000.00 |
| 858,547,800.60 | 13,494,000.00 | - | 872,041,800.60 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
(2)ProvisionofimpairmentlossChangesinprovisionforimpairmentofgoodwillarepresentedasfollows:
2019
| 2019 | Openingbalance | Increase | Decrease | Closingbalance |
| QuanzhouGuodaPharmacyChainStoreCo.,Ltd. | 25,000,000.00 | - | - | 25,000,000.00 |
Themethodofgoodwillimpairmenttestingprocess,parameterandrecognitionofimpairmentloss:
Therecoverableamountofanassetgrouporagroupofassetgroupsisdeterminedonafinancialbudgetapprovedbymanagementcoveringafive-yearperiod.Thecashflowsbeyondthefive-yearperiodareextrapolatedusingtheinflationrate.Therecoverableamountoftheassetgroupandassetgroupcombinationiscalculatedusingthecashflowforecastingmethodbasedonthefive-yearbudgetapprovedbythemanagement.Managementdeterminesthebudgetarygrossmarginbasedonhistoricalexperienceandforecastsofmarketdevelopment,andusesapre-taxratethatreflectsthespecificriskoftherelevantassetgroupandassetgroupcombinationasthediscountrate.Theaboveassumptionsareusedtoanalyzetherecoverableamountofeachassetgroupandassetgroupcombinationwithinthebusinesssegment.
18.Long-termprepaidexpenses
| 2019 | Openingbalance | Additions | Amortization | Otherdecrease | Closingbalance |
| Fixedassetimprovementexpenditure | 249,458,261.87 | 47,060,353.55 | 42,594,066.57 | 1,166,437.43 | 252,758,111.42 |
| Acquisitionexpendituretoobtaintherighttooperate | 57,617,166.63 | 3,971,737.95 | 7,010,668.66 | - | 54,578,235.92 |
| Others | 4,253,277.96 | 760,218.61 | 1,002,537.39 | 35,524.55 | 3,975,434.63 |
| 311,328,706.46 | 51,792,310.11 | 50,607,272.62 | 1,201,961.98 | 311,311,781.97 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
19.Deferredtaxassets/liabilities
(a)
| (a) | Deferredtaxassetsbeforeoffseting | |||||
| 30June2019 | 1January2019 | |||||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |||
| Provisionforimpairmentofassets | 79,547,128.04 | 18,378,950.01 | 68,153,222.07 | 15,676,020.10 | |
| Deductibletaxloss | 34,968,710.28 | 8,677,091.14 | 77,791,621.20 | 19,311,837.06 | |
| DeferredIncome | 25,565,030.92 | 6,387,445.17 | 30,188,142.13 | 7,547,758.26 | |
| Accruedpayroll | 13,435,720.26 | 2,963,493.05 | 64,598,625.74 | 15,656,015.32 | |
| Accruedexpenses | 132,416,395.94 | 32,742,594.34 | 94,108,769.33 | 22,301,617.95 | |
| Others | 30,339,847.94 | 7,164,541.66 | 6,238,492.18 | 1,467,765.00 |
| 316,272,833.38 | 76,314,115.37 | 341,078,872.65 | 81,961,013.69 |
| (b) | Deferredtaxliabilitiesbeforeoffseting | |||||
| 30June2019 | 1January2019 | |||||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |||
| Fairvalueadjustmentforbusinesscombinationnotinvolvingenterprisesundercommoncontrol | 221,963,869.66 | 55,490,967.41 | 227,900,345.39 | 56,975,086.34 | |
| Changesinfairvalue | 87,167,599.53 | 21,791,899.72 | 75,366,942.99 | 17,676,879.28 |
| 309,131,469.19 | 77,282,867.13 | 303,267,288.38 | 74,651,965.62 |
| (c) | Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachother: | ||||
| 30June2019 | 1January2019 | ||||
| Deferredtaxassets/liabilities-Net | Temporarydifferencesafterset-off | Deferredtaxassets/liabilities-Net | Temporarydifferencesafterset-off | ||
| Deferredtaxassets | 10,896,608.36 | 65,417,507.01 | 7,046,803.74 | 74,914,209.95 |
| Deferredtaxliabilities | 10,896,608.36 | 66,386,258.77 | 7,046,803.74 | 67,605,161.88 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
19.Deferredtaxassets/liabilities(Continued)
(d)
| (d) | Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognizedasdeferredtaxassetsarepresentedasfollows: |
| 30June2019 | 1January2019 |
| Deductibletemporarydifferences | 932,951.17 | 1,480,000.00 |
| Deductibleloss(Note) | 30,894,876.42 | 29,391,422.33 |
| 31,827,827.59 | 30,871,422.33 |
Theaforesaidunrecognizeddeductiblelosseswilldue:
30June2019
| 30June2019 | 1January2019 |
| 2019 | 6,106,580.00 | 2,864,062.85 |
| 2020 | 1,636,825.76 | 4,725,707.87 |
| 2021 | 8,256,680.69 | 2,563,056.08 |
| 2022 | 8,358,197.50 | 7,261,117.97 |
| 2023 | 6,536,592.47 | 11,977,477.56 |
| 30,894,876.42 | 29,391,422.33 |
(Note)Assomesubsidiariesarestillatalossandit’suncertainthatthosesubsidiariescanobtainenoughtaxableincometooffsetagainstthelossinthefuture.SotheGroupdonotrecognisedeferredtaxassetswhichcamefromthedeductiblelossofRMB30,894,876.42.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
20.Othernon-currentassets
30June2019
| 30June2019 | 1January2019 | ||||||
| Carryingbalance | Impairment | Carryingamount | Carryingbalance | Impairment | Carryingamount | ||
| Physicalassetsreservespecificallyauthorized | 44,621,093.48 | - | 44,621,093.48 | 47,576,273.75 | - | 47,576,273.75 | |
| Prepaymentforprojectandequipment | 22,323,493.28 | - | 22,323,493.28 | 10,592,645.36 | - | 10,592,645.36 | |
| 66,944,586.76 | - | 66,944,586.76 | 58,168,919.11 | - | 58,168,919.11 |
21.Short-termborrowings
| 30June2019 | 1January2019 |
| Creditborrowings | 3,079,560,758.24 | 2,427,639,275.32 | |
| Discountednotes | 211,316,836.99 | 170,013,427.11 |
| 3,290,877,595.23 | 2,597,652,702.43 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
22.Notespayable
30June2019
| 30June2019 | 1January2019 |
| Commercialacceptancenotes | 23,896,465.30 | 13,843,479.73 | ||
| Bankacceptancenotes | 3,515,198,797.04 | 3,402,912,202.07 |
| 3,539,095,262.34 | 3,416,755,681.80 |
At30June2019，balanceofnotespayableatmaturitywasRMB0.00.(31December2018：RMB
0.00).
23.Accountspayable
| 30June2019 | 1January2019 |
| Tradepayables | 8,088,697,602.94 | 6,468,535,961.17 |
At30June2019,thetotalamountofaccountspayableagedoveroneyearwasRMB496,134,298.59(31December2018:RMB467,525,486.03).
24.Contractliabilities
| 30June2019 | 1January2019 |
| Advancesfromcustomers | - | - | ||
| Contractliabilities | 239,739,020.90 | 255,590,612.37 |
| 239,739,020.90 | 255,590,612.37 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
25.Employeebenefitspayable
2019
| 2019 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
| Short-termemployeebenefits(a) | 226,152,409.27 | 927,118,638.71 | 1,001,730,616.89 | 151,540,431.09 |
| Post-employmentbenefits(definedcontributionplan)(b) | 5,248,146.99 | 93,025,372.36 | 88,529,751.61 | 9,743,767.74 |
| Terminationbenefits(c) | 465,851.14 | 841,185.81 | 872,153.00 | 434,883.95 |
| 231,866,407.40 | 1,020,985,196.88 | 1,091,132,521.50 | 161,719,082.78 |
| (a) | Short-termemployeebenefits | |||||||||
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear | ||||||
| Salaries,bonuses,allowancesandgrants | 210,723,820.21 | 810,503,119.74 | 884,415,868.48 | 136,811,071.47 | |||
| Staffwelfare | 1,750,750.89 | 23,556,598.47 | 24,295,552.24 | 1,011,797.12 | |||
| Socialsecuritycontribution | 1,622,271.12 | 47,247,265.73 | 46,045,452.79 | 2,824,084.06 | |||
| Incl:Medicalinsurance | 1,362,150.59 | 42,318,821.55 | 41,333,544.10 | 2,347,428.04 | |||
| Workinjuryinsurance | 30,755.69 | 1,427,211.06 | 1,394,836.56 | 63,130.19 | |||
| Maternityinsurance | 229,364.84 | 3,501,233.12 | 3,317,072.13 | 413,525.83 | |||
| Housingfunds | 1,063,993.02 | 30,889,248.28 | 30,946,436.95 | 1,006,804.35 | |||
| Laborunionfundsandemployeeeducationfunds | 9,956,772.12 | 13,593,217.16 | 15,024,466.50 | 8,525,522.78 | |||
| Othershort-termbenefits | 1,034,801.91 | 1,329,189.33 | 1,002,839.93 | 1,361,151.31 |
| Total | 226,152,409.27 | 927,118,638.71 | 1,001,730,616.89 | 151,540,431.09 |
| (b) | Definedcontributionplan |
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Basicpensioninsurance | 1,755,160.16 | 88,463,119.33 | 86,167,938.13 | 4,050,341.36 | |||
| Unemploymentinsurance | 122,350.65 | 2,587,235.09 | 2,359,308.38 | 350,277.36 | |||
| Contributiontopensionfund | 3,370,636.18 | 1,975,017.94 | 2,505.10 | 5,343,149.02 |
| 5,248,146.99 | 93,025,372.36 | 88,529,751.61 | 9,743,767.74 |
Note：Forthehalfyearof2019,theGroupprovidedotherterminationbenefitsforseveringlaborrelationsofRMB153,286.50.Forthehalfyearof2018,theGroupprovidedotherterminationbenefitsforseveringlaborrelationsofRMB69,075.00.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
26.Taxpayable
30June2019
| 30June2019 | 1January2019 |
| Value-addedtax | 61,484,212.40 | 90,356,534.09 | |
| CorporateIncometaxes | 121,174,058.74 | 115,226,820.39 | |
| Individualincometaxpayable | 4,518,825.00 | 3,954,139.24 | |
| Citymaintenanceandconstructionsurtax | 4,994,194.58 | 6,854,426.95 | |
| Educationalsurchargepayable | 3,593,664.02 | 4,937,147.17 | |
| Waterconservancyfundpayable | 5,523,161.32 | 5,421,280.43 | |
| Stampduty | 4,098,721.21 | 5,854,355.91 | |
| Propertytax | 1,407,180.81 | 1,123,276.37 | |
| Landusetaxpayable | 241,952.24 | 209,179.29 | |
| Others | 8,543,031.51 | 8,043,252.88 |
| 215,579,001.83 | 241,980,412.72 |
27.Otherpayables
| 30June2019 | 1January2019 |
| Interestpayable | 29,012,444.93 | 21,906,660.63 | |
| Dividendpayable | 6,389,320.96 | 6,389,320.96 | |
| Otherpayables | 1,439,124,932.54 | 1,511,140,990.34 |
| 1,474,526,698.43 | 1,539,436,971.93 |
（1）Interestpayable
| 30June2019 | 1January2019 |
| Long-termloans’(Withperiodicpaymentsofprincipalandinterestcharges)interest | 35,440.21 | 38,984.25 | |
| Interestonshort-termborrowings | 10,692,042.51 | 10,973,397.39 | |
| Tradereceivables’factoringinterest | 18,284,962.21 | 10,894,278.99 |
| 29,012,444.93 | 21,906,660.63 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
27.Otherpayables(Continued)
（2）Dividendpayable
30June2019
| 30June2019 | 1January2019 |
| ShanghaiFosunPharmaceutical(Group)Co.,Ltd. | 4,835,511.58 | 4,835,511.58 | |
| ZhenfangZhang | 1,389,639.31 | 1,389,639.31 | |
| MeiluoPharmaceuticalCo.,Ltd. | 164,170.07 | 164,170.07 |
| 6,389,320.96 | 6,389,320.96 |
Asat30June2019,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid(31December2018:nil).
（3）Otherpayables
| 30June2019 | 1January2019 | ||
| Payablesforfactoringprograms | 550,002,940.12 | 724,272,060.30 | |
| Deposit | 389,299,163.12 | 334,821,325.72 | |
| Accruedsellinganddistributionexpenses | 174,163,680.40 | 131,493,977.43 | |
| Payablesarisingfromacquisitionofsubsidiaries | 77,082,980.00 | 78,702,980.00 | |
| Payablesforconstructioninprogressandequipment | 58,230,154.88 | 79,380,923.99 | |
| Payablesforrentals | 40,290,060.94 | 29,298,835.46 | |
| Payablestoindividuals | 28,207,673.38 | 22,730,210.22 | |
| Tempararyloan | 15,800,000.00 | 15,800,000.00 | |
| Payablestorelatedparties | 15,581,702.81 | 5,436,532.76 | |
| Payablesforlandtransferpayments | 12,597,500.00 | 18,071,000.00 | |
| Equitysubscription | 10,000,000.00 | 10,000,000.00 | |
| Collectionofothers | 9,067,830.66 | 7,525,379.59 | |
| Others | 58,801,246.23 | 53,607,764.87 |
| 1,439,124,932.54 | 1,511,140,990.34 |
At30June2019,significantotherpayablesover1yearare:
| Amountpayable | Reasonforoutstanding |
| Non-controllinginterestsinSouthPharmaceutialForeignTradeFuYuequn | 54,722,980.00 | Paymentconditionsnotmet |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
andother11naturalpersons
| andother11naturalpersons | |||
| ShenzhenNo.1ConstructionEngineeringCo.,Ltd. | 8,605,625.20 | Paymentconditionsnotmet | |
| LiuzhouShengliPharmacy | 5,986,288.12 | Paymentconditionsnotmet |
27.Otherpayables(Continued)TheamountarisingfromtheacquisitionofsubsidiariesismainlyforthesharesacquisitionofminoritiesofSouthPharmaceutialForeignTrade.At30June2019,otherpayablesduewithin1yearamountingtoRMB137,518,449.47(31December2018:RMB136,286,760.04)aremainlyconsistedofconstructioncostpayable,companyborrowingspayable,depositsandetc.
28.Non-currentliabilitiesduewithin1year
69,314,893.32
30June2019
| 30June2019 | 1January2019 |
| Long-termborrowingsduewithin1year | 31,600,000.00 | - | |
| Leaseliabilitiesduewithin1year | 526,696,784.75 | 495,132,751.96 |
| 558,296,784.75 | 495,132,751.96 |
29.Othercurrentliabilities
| 30June2019 | 1January2019 |
| OutputVATtoberecognized | 445,493.48 | 292,465.75 |
30.Long-termborrowings
| 30June2019 | 1January2019 |
| Creditborrowings(a) | - | 31,600,000.00 |
| - | 31,600,000.00 |
| (a) | At30June2019,theGrouphasnoentrustedborrowings(31December2018: |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
RMB31,600,000.00).TheGroup'slong-termborrowingsareloanslentbytheChinaNationalPharmaceuticalGroupCorporation.Theborrowingsduewithinoneyearhavebeenreclassifiedtonon-currentliabilitiesduewithinoneyear.
RMB31,600,000.00).TheGroup'slong-termborrowingsareloanslentbytheChinaNationalPharmaceuticalGroupCorporation.Theborrowingsduewithinoneyearhavebeenreclassifiedtonon-currentliabilitiesduewithinoneyear.At30June2019,theannualinterestrateofabove-mentionedborrowingswas4.04%(31December2018:4.04%).
31．Leaseliabilities
At30June2019,theannualinterestrateofabove-mentionedborrowingswas4.04%(31December2018:4.04%).30June2019
| 30June2019 | 1January2019 |
| leasepayables | 1,713,157,908.71 | 1,599,733,049.76 | ||
| Less:：leasepayablesduewithin1year | (526,696,784.75) | (495,132,751.96) |
| 1,186,461,123.96 | 1,104,600,297.80 |
32.Long-termpayables
| 30June2019 | 1January2019 |
| Payableforspecificprojects | 800,000.00 | 800,000.00 |
Payableforspecificprojects
| Atbeginningofyear | Increase | Decrease | Atendofyear | Reasonsofderredincome |
| Specialfundsgrantedbygovernment | 800,000.00 | - | - | 800,000.00 | Grantedbythegovernment |
33.Long-termemployeebenefitspayable
| 30June2019 | 1January2019 |
| Earlyretirementbenefitspayable | 1,915,000.00 | 2,050,000.00 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
34.Deferredincome
2019
| 2019 | Openingbalance | Increase | Decrease | Closingbalance | Reasonsofderredincome |
| Governmentgrants | 91,491,170.40 | 79,184.44 | 2,847,536.66 | 88,722,818.18 | Governmentgrants |
| 91,491,170.40 | 79,184.44 | 2,847,536.66 | 88,722,818.18 |
Asat30June2019,deferredincomefromgovernmentgrantsareasfollow:
Governmentgrants
program
| Governmentgrantsprogram | Openingbalance | Additionintheyear | Amountincludedinnon-operatingincomeintheyear | Amountincludedinotherincomeintheyear | Closingbalance | Assetrelated/incomerelated |
| ResettlementCompensation(i) | 75,555,441.17 | - | 1,349,204.28 | - | 74,206,236.89 | Assetrelated |
| GuangxiLogisticsProject | 6,453,426.58 | - | - | 230,346.06 | 6,223,080.52 | Assetrelated |
| GuangzhouLogisticsstandardizationproject | 2,815,012.55 | - | - | 273,123.42 | 2,541,889.13 | Assetrelated |
| Acomprehensiveexperimentalmodernserviceindustrysubsidies | 1,500,000.00 | - | - | 150,000.00 | 1,350,000.00 | Assetrelated |
| SharedLogisticsCenter | 252,058.35 | - | - | 9,400.20 | 242,658.15 | Assetrelated |
| Otherprojects | 4,915,231.75 | 79,184.44 | 835,462.70 | 4,158,953.49 | Asset/Incomerelated |
| 91,491,170.40 | 79,184.44 | 1,349,204.28 | 1498332.38 | 88,722,818.18 |
DuetotheimplementationofurbanplanningforoldtownreconstructioninNanning,theoperatingcenterofGuangxiLogisticswhichwaslocatedinLongtengRoadDistrict,NanningCity,wastobereconstructedinanotherplace.AccordingtotheagreementsignedbetweenGuangxiLogisticsandtherealestatedeveloper,GuangxiLogisticswouldobtainacompensationofRMB120,250,000.00,includingcashofRMB50,000,000.00andpropertyinconstructingequalingavalueofRMB70,250,000.00.CashcompensationofRMB50,000,000.00wasreceivedinMay2012.Inyear2015,constructionpropertieswithavalueofRMB70,250,000.00werebuiltanddelivered,andhadbeenrecognizedasinvestmentproperties(NoteV(12)).Thecompensationrelatingthecapitalexpenditureinthereconstructionofthenewlogisticcenterinanotherplace,amountingtoRMB93.32millionwasrecognizedasdeferredrevenue,andwouldbeamortizedandrecognizedintheincomestatementwithintheexpectedusefullivesusingthestraightlinemethod(NoteV(50)),andtheothercashcompensation.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
35.Othernon-currentliabilities
30June2019
| 30June2019 | 1January2019 |
| Contractliabilities | 53,375.33 | - | ||
| Governmentalmedicalreservefunds | 45,427,343.31 | 45,427,343.31 | ||
| Productpromotionaccumulativepointsprogramme | 22,359,977.45 | 23,813,832.87 |
| 67,840,696.09 | 69,241,176.18 |
36.Sharecapital
CertainmedicalreservesfundswerereceivedbytheGroupfromthePRCgovernmentandlocalgovernmentforpurchasingmedicalproducts(includingmedicines)requiredtorespondtoseriousdisasters,epidemicsandotheremergencies.Movementduringthecurrentyear
| Movementduringthecurrentyear | |||||
| 2019 | Atbeginningofyear | Issueofnewshare | Others | Total | Atendofyear |
| Shares | 428,126,983.00 | 428,126,983.00 | |||
37.Capitalsurplus
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Sharepremium | 2,118,174,787.27 | - | - | 2,118,174,787.27 |
| Significantreorganization | 1,173,907,763.19 | - | - | 1,173,907,763.19 |
| Otherchangesinequityofinvestedunitsunderequitymethod | (94,032,514.34) | 42,424,747.00 | - | (51,607,767.34) |
| Transferofcapitalsurplusrecognizedunderthepreviousaccountingsystem | 2,650,322.00 | - | - | 2,650,322.00 |
| Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - |
| Others | 1,120,284,623.39 | - | - | 1,120,284,623.39 |
| 4,320,984,981.51 | 42,424,747.00 | - | 4,363,409,728.51 |
Capitalsurplus-othersincreasedbyRMB42,424,747.00whenotherchangesinequityofModernPharmaceuticalresultedinadjustmentoflong-termequityinvestmentandanincreaseofcapitalsurplusbyRMB42,424,747.00.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
38.Surplusreserve
Atbeginningofyear
| Atbeginningofyear | Increase | Decrease | Atendofyear |
| Surplusreserve | 214,063,491.50 | - | - | 214,063,491.50 |
| 214,063,491.50 | - | - | 214,063,491.50 |
39.Retainedearnings
| 30June2019 | 1January2019 |
| Retainedearningsattheendoftheprioryear | 6,655,257,147.27 | 5,572,952,806.39 |
| Retainedearningsatbeginningofyearafterretrospectiveadjustmentandrestatement | 6,655,257,147.27 | 5,572,952,806.39 |
| Add:Netprofitattributabletotheparent | 650,833,360.40 | 1,210,742,435.78 |
| Cashdividendspayableforordinaryshares | 171,250,793.20 | 128,438,094.90 |
| Others-Businesscombinationinvolvingenterprisesundercommoncontrol | - | - |
| Retainedearningsatendofyear | 7,134,839,714.47 | 6,655,257,147.27 |
40.Operatingrevenueandcost
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |||
| Revenue | Cost | Revenue | Cost | |
| Principaloperations | 25,040,619,938.98 | 22,398,327,532.43 | 20,606,027,974.57 | 18,355,002,752.42 |
| Otheroperations | 187,527,438.45 | 17,192,420.44 | 172,397,627.65 | 12,640,971.42 |
| 25,228,147,377.43 | 22,415,519,952.87 | 20,778,425,602.22 | 18,367,643,723.84 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
40.Operatingrevenueandcost(Continued)
Classification
| Classification | Headquarters | Distribution | Retail | Inter-segmentoffsets | Total |
| Byproduct | |||||
| Include: | |||||
| Medicines | - | 17,951,760,565.22 | 5,957,083,892.95 | (361,359,523.83) | 23,547,484,934.34 |
| Medicalappliance | - | 1,345,459,501.68 | - | - | 1,345,459,501.68 |
| Other | 4,747,314.83 | 179,640,288.21 | 150,815,338.37 | - | 335,202,941.41 |
| Byarea | |||||
| Include: | |||||
| Domesticsales | 4,747,314.83 | 19,476,860,355.11 | 6,107,899,231.32 | (361,359,523.83) | 25,228,147,377.43 |
| Overseassales | - | - | - | - | - |
| Bycontractduration | |||||
| Include: | |||||
| Confirmrevenueatacertainpointintime | - | 19,297,220,066.90 | 5,957,083,892.95 | (361,359,523.83) | 24,892,944,436.02 |
| Confirmrevenueatacertaintimeperiod | 4,747,314.83 | 179,640,288.21 | 150,815,338.37 | - | 335,202,941.41 |
| Total | 4,747,314.83 | 19,476,860,355.11 | 6,107,899,231.32 | (361,359,523.83) | 25,228,147,377.43 |
InformationabouttheGroup’sobligationsisasfollows:
TheGrouprecognisesrevenuewhengoodsaredelivered,andwillreceivepaymentwithin30-210days.TheGrouprecognisesrevenueafterprovidingservices,andwillreceivepaymentwithin30-210days.TheexpectedrevenuerecognitiontimefortheGroup’scontractobligationsaboveisinyear2019.Informationrelatedtothesalespriceallocatedtotheremainingobligations:
Theamountofincomecorrespondingtotheobligationthathasbeensignedbuthasnotbeenfulfilledorhasnotyetfulfilledis239,739,020.90yuan,ofwhich239,739,020.90yuanisexpectedtoberecognizedin2019.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
41.Taxandsurcharges
Forthesixmonthended
June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Citymaintenanceandconstructiontax | 24,015,771.70 | 22,352,680.77 | |
| Educationalsurcharge | 17,051,137.40 | 16,112,625.97 | |
| Propertytax | 3,182,784.83 | 3,075,856.41 | |
| Landtax | 310,374.16 | 245,070.74 | |
| Vehicleandvesselusetax | 71,880.95 | 98,966.20 | |
| Stampduty | 17,406,047.59 | 14,200,426.96 | |
| Others | 101,229.81 | 534,900.20 |
| 62,139,226.44 | 56,620,527.25 |
42.Sellingexpenses
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Employeespayrollandwelfarebenefits | 751,390,265.97 | 659,176,548.69 | |
| Rentalexpenses | 85,603,520.94 | 322,805,173.33 | |
| Transportationcharges | 42,481,965.66 | 33,086,676.72 | |
| Depreciationexpenses | 313,982,576.03 | 26,125,384.59 | |
| Promotionandmarketingexpenses | 21,130,375.63 | 18,454,328.54 | |
| Officeallowances | 19,914,617.62 | 16,283,197.98 | |
| Entertainmentexpenses | 11,670,679.46 | 11,357,532.12 | |
| Storageexpenses | 15,216,365.97 | 14,866,861.14 | |
| Travelallowances | 3,017,736.94 | 3,415,890.36 | |
| Marketdevelopmentfees | 3,713,897.19 | 3,255,084.76 | |
| Conferenceexpenses | 1,196,924.88 | 1,654,991.62 | |
| Others | 214,013,574.44 | 163,107,086.22 |
| 1,483,332,500.73 | 1,273,588,756.07 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
43.Administrativeexpenses
Forthesixmonthended
30June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Employeespayrollandwelfarebenefits | 265,705,706.25 | 248,803,724.84 | |
| Rentalexpenses | 9,155,207.14 | 18,347,245.83 | |
| Depreciationexpenses | 16,813,385.90 | 12,732,380.45 | |
| Officeallowances | 11,183,599.31 | 11,877,499.56 | |
| Amortizationofintangibleassets | 9,779,109.11 | 8,272,613.85 | |
| Entertainmentexpenses | 5,822,240.83 | 6,428,775.38 | |
| Amortizationoflong-termdeferredexpenses | 5,532,926.20 | 4,518,905.10 | |
| Vehiclemanagementexpenses | 3,630,572.81 | 4,435,451.82 | |
| Travelallowances | 3,801,532.99 | 4,323,679.13 | |
| Utilities | 3,094,494.34 | 2,713,666.76 | |
| Taxations | 1,847,691.62 | 2,241,415.79 | |
| Conferenceexpenses | 2,586,044.56 | 2,059,875.35 | |
| Repairingfees | 2,507,057.40 | 1,624,550.73 | |
| Others | 35,757,125.67 | 23,440,279.19 |
| 377,216,694.13 | 351,820,063.78 |
44.Financecosts
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Interestexpenses | 169,529,472.37 | 83,356,367.18 | |
| Less:Interestincome | (60,630,036.91) | (23,082,233.56) | |
| Cashdiscount | (23,190,566.63) | (21,542,580.44) | |
| Exchangesloss/(gain) | (389,882.62) | 329,665.40 | |
| Others | 18,776,268.03 | 18,480,325.74 |
| 104,095,254.24 | 57,541,544.32 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
45.Otherincomes
Forthesixmonthended
30June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Governmentgrantsrelatedtodailyoperatingactivities | 14,974,471.87 | 10,589,212.57 | |
| Taxationservicechargerefund | 16,447.15 | 741,097.45 |
| 14,990,919.02 | 11,330,310.02 |
46.Investmentincome
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Investmentincomefromlong-termequityinvestmentsundertheequitymethod | 169,142,289.99 | 162,662,271.35 | |
| Dividendincomefromotherequityinstrumentsinvestedduringtheholdingperiod | - | 31,500.00 |
| 169,142,289.99 | 162,693,771.35 |
47.Impairmentlossonfinancialassets
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Impairmentlossoftradereceivables | (1,666,431.98) | (1,172,127.53) | |
| Impairmentlossofotherreceivables | (9,767,669.15) | 2,198,829.77 |
| (11,434,101.13) | 1,026,702.24 |
48.Impairmentlosses
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Forthesixmonthended
30June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Inventoryprovision | (125,554.34) | (508,849.26) |
| (125,554.34) | (508,849.26) |
49.Gainondisposalofassets
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Gainondisposaloffixedassets | (29,725.44) | 389,144.70 | |
| Gainondisposalofintangibleassets | - | 3,892,019.91 |
| (29,725.44) | 4,281,164.61 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
50.Non-operatingincome
Forthesixmonth
ended30June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 | Amountclassifiedasnon-recurringprofitorloss |
| Governmentgrants | 1,349,204.28 | 1,349,204.28 | 1,349,204.28 | |
| Gainfromwritingofftheunnecessarypayment | 306,191.87 | 2,898,512.62 | 306,191.87 | |
| Gainondisposalofnon-currentassets | 195,336.00 | 2,303.00 | 195,336.00 | |
| Others | 1,816,438.10 | 1,248,931.21 | 1,816,438.10 |
| 3,667,170.25 | 5,498,951.11 | 3,667,170.25 |
Governmentgrantsincludedincurrentperiodprofitorloss:
| ProjectName | GovernmentDepartment | ReasonsforGovernmentgrants | Type | Affectstheprofitorlossofthisyear | Specialsubsidy | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | Relatedtoasset/income |
| ResettlementCompensationofNo.7ZhongyaoRoad | NanningEconomic&TechnologicalDevelopmentAreaManagementCommittee | Subsidy | Subsidiesfromlocalgovernmentforsupportpoliciessuchasattractinginvestment | Yes | No | 1,349,204.28 | 1,349,204.28 | Assetrelated |
Allnon-operatingincomewaswhollyclassifiedasnon-recurringprofitorlossforthesixmonthended
51.Non-operatingexpenses
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 | Amountclassifiedasnon-recurringprofitorloss |
| Donationexpenses | - | 60,000.00 | - | |
| Penaltyexpenses | 273,498.60 | 1,194,388.28 | 273,498.60 | |
| Lossondisposalofanon-currentasset | 161,292.34 | 28,525.01 | 161,292.34 | |
| Others | 1,283,474.62 | 514,379.51 | 1,283,474.62 |
| 1,718,265.56 | 1,797,292.80 | 1,718,265.56 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
52.Incometaxes
Forthesixmonthended
30June2019
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Currentincometax | 183,966,126.67 | 163,102,979.73 | |
| Deferredincometax | 8,277,799.83 | 1,383,754.59 |
| 192,243,926.50 | 164,486,734.32 |
Thereconciliationfromincometaxcalculatedbasedonapplicabletaxratesandtotalprofit
presentedintheconsolidatedfinancialstatementstotheincometaxesislistedbelow:
Forthesixmonthended
30June2019
Forthesixmonthended
30June2019Totalprofit
| Totalprofit | 960,336,481.81 |
| Incometaxescalculatedatapplicabletaxrates | 240,084,120.45 |
| Lowertaxratesenactedbylocalauthorities | (13,265,455.52) |
| Adjustmentofincometaxexpenseofpreviousyears | (4,574,884.17) |
| Incomenotsubjecttotax | (47,995,671.32) |
| Expensesnotdeductiblefortax | 17,747,992.12 |
| Deductiblelossonunconfirmeddeferredtaxassetsatendoftheperiod | 493,231.44 |
| Impactofthetemporarydiscrepancyonunconfirmeddeductibledeferredtaxassetsatendoftheperiod | (255,667.65) |
| Impactofthetemporarydiscrepancyonunconfirmeddeductibledeferredtaxassetsoftheperviousyear | 10,261.15 |
| Incometax | 192,243,926.50 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
53.Notestoitemsinthecashflowstatement
(a)
| (a) | Cashreceiptsrelatedtootheroperatingactivities | ||||
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | ||||
| Governmentgrantsexcepttaxreturn | 16,340,011.49 | 10,345,223.64 | |
| Rentincome | 37,910,253.81 | 37,793,728.50 | |
| Receivedoperationalrestrictedbankdeposits | 123,321,063.70 | 88,156,799.79 | |
| Interestincome | 60,227,651.15 | 22,642,258.30 | |
| Others | 57,683,231.05 | 153,046,777.37 |
| 295,482,211.20 | 311,984,787.60 |
| (b) | Cashpaidrelatingtootheroperatingactivities | ||||
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | ||||
| Rentalexpenses | 94,758,728.08 | 341,152,419.16 | |
| Entertainmentexpenses | 17,492,920.29 | 17,786,307.50 | |
| Transportationcharges | 42,481,965.66 | 33,086,676.72 | |
| Travelexpenses | 6,819,269.93 | 7,739,569.49 | |
| Storageexpenses | 15,216,365.97 | 14,866,861.14 | |
| Officeexpenses | 31,098,216.93 | 28,160,697.54 | |
| Advertisingexpenses | 21,130,375.63 | 18,454,328.54 | |
| Others | 265,893,688.82 | 377,222,116.67 |
| 494,891,531.31 | 838,468,976.76 |
| (c) | Cashreceivedrelatingtootherinvestingactivities | ||||
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | ||||
| Receivedentrustedloanpayments | 44,000,000.00 | |
| ReceivedfundsofacquiringSinopharmHuadu | 4,680,000.00 | |
| Others | 86,145.15 |
| - | 48,766,145.15 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
53.Notestoitemsincashflowstatement(Continued)
(d)
| (d) | Cashpaidrelatingtootherinvestingactivities |
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| EntrustedborrowingspaidtoZhijunSuzhou | - | 43,999,800.00 | |
| Others | 1,093,125.00 | - |
| 1,093,125.00 | 43,999,800.00 |
| (e) | Cashreceivedrelatingtootherfinancingactivities |
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Financingrestrictedmonetaryfundsreceived | 3,512,659.71 | 79,825,164.60 | |
| Others | - | 3,920,000.00 |
| 3,512,659.71 | 83,745,164.60 |
| (f) | Cashpaymentsrelatingtootherfinancingactivities |
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Bankfactoringpayable | 174,269,120.18 | 64,002,739.23 | |
| Leasepayment | 299,173,550.25 | - | |
| Purchaseofequityofminorityshareholders | - | 54,722,980.00 | |
| Others | 36,719,497.31 | - |
| 510,162,167.74 | 118,725,719.23 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
54.Supplementaryinformationofcashflowstatement
(a)
| (a) | Reconciliationofnetprofittocashflowsfromoperatingactivities |
| Forthesixmonthended30June2019 | Forthesixmonthended30June2018 |
| Netprofit | 768,092,555.31 | 689,249,009.91 |
| Adjustments:Provisionforassetimpairment | 11,559,655.47 | (506,814.18) |
| Depreciationoffixedassetsandinvestmentproperties | 48,917,181.72 | 38,366,126.42 |
| Amortizationofintangibleassets | 14,808,363.43 | 11,832,914.62 |
| Amortizationoflong-termprepaidexpenses | 50,607,272.62 | 41,638,297.62 |
| Gainsondisposaloffixedassets,andothernon-currentassets | 131,566.90 | (4,254,942.60) |
| Financecosts | 159,266,607.86 | 82,449,854.36 |
| Investmentincome | (169,142,289.99) | (162,693,771.35) |
| Increaseindeferredtaxassets | 5,674,224.55 | 3,402,744.73 |
| (Increase)/decreaseindeferredtaxliabilities | 2,603,575.28 | (2,018,990.14) |
| (Increase)/decreaseininventories | (492,796,771.41) | (463,324,117.97) |
| Increaseinoperatingreceivablesitems | (1,983,255,213.04) | (1,298,602,834.11) |
| (Decrease)/increaseinoperatingpayableitems | 2,463,112,034.51 | 1,170,553,090.12 |
| Others | 284,178,818.14 | 119,267,141.77 |
| Netcashgeneratedfromoperatingactivities | 1,163,757,581.35 | 225,357,709.20 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
54.Supplementaryinformationofcashflowstatement(Continued)
(b)
| (b) | Movementofcash |
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Cashattheendoftheperiod | 7,768,974,878.91 | 3,592,715,787.37 |
| Less:Cashatthebeginningoftheperiod | 7,632,117,020.77 | 3,673,498,691.48 |
| Netincreaseincash | 136,857,858.14 | (80,782,904.11) |
| (c) | Cash | ||
| 30June2019 | 31December2018 | ||
| Cash | 7,768,974,878.91 | 7,632,117,020.77 |
| Incl:Cashonhand | 3,415,085.25 | 5,587,191.18 |
| Bankdepositsondemand | 7,765,559,793.66 | 7,626,529,829.59 |
| Endingbanlancecashandcashequivalent | 7,768,974,878.91 | 7,632,117,020.77 |
55.Notestochangesinshareholders’equityThecurrentcapitalreserve-“Other”increasedbyRMB42,424,747.00whenotherchangesinequityofShyndecPharmaresultedinadjustmentoflong-termequityinvestmentandanincreaseofcapitalsurplusamountingtoRMB42,424,747.00.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
56.Assetsunderrestrictedownershiporrightofuse
Bookvalue
| Bookvalue | Reasons |
| Cashandcashequivalents | 317,353,629.58 | Depositsofbankacceptancenotes,depostisforletterofcreditandothers. |
| Notesreceivables | 211,316,836.99 | notesreceivablediscountedbutnotdue |
Note1:At30June2019,theGrouphaddepositsofbankacceptancenotesandletterofcreditdepositamountingtoRMB317,353,629.58(31December2018:RMB457,664,283.79)(NoteV(1));thedepositofbankacceptancebillisRMB317,047,823.58,theletterofcreditdepositisRMB305,806.00.Note2:At30June2019,theGrouphadnotesreceivableofRMB211,316,836.99,discountedbutnotdue(31December2018:RMB170,013,427.11)(NoteV(2)).Note3:At30June2019,theGrouphadnotesreceivableofRMB0,endorsedbutnotdue(31December2018:
301,416.00)(NoteV(2)).
57.Governmentgrants
528,670,466.57Type
| Type | Amount | Accounttitle | Includedincurrentperiodprofitorloss: |
| 2017KeyenterprisedevelopmentawardfundsofLiwanDistrict,Guangzhou | 3,166,380.00 | Otherincomes | 3,166,380.00 |
| 2018HundredsofenterprisesrewardfundsofChanchengDistrict,FoshanCity | 310,824.00 | Otherincomes | 310,824.00 |
| Thirdpartydrugmodernlogisticspublicinformationplatform | 9,400.20 | Otherincomes | 9,400.20 |
| 2013Guangzhousubsidiesforheadquarters | 264,841.74 | Otherincomes | 264,841.74 |
| Guangzhouspecialsubsidyfortheconstructionofresearchanddevelopmentinstitutions | 44,705.94 | Otherincomes | 44,705.94 |
| Guangzhouspecialsubsidyforcommerceandtradecirculationindustry | 241,440.44 | Otherincomes | 241,440.44 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
57.Governmentgrants(Continued)
LiwanDistrictSinopharmSupplyChainEngineeringTechnologyResearchandDevelopmentCenter
| LiwanDistrictSinopharmSupplyChainEngineeringTechnologyResearchandDevelopmentCenter | 11,598.84 | Otherincomes | 11,598.84 |
| MedicalSmartSupplyChainE-commerceServicePlatformTechnologyProject | 21,884.52 | Otherincomes | 21,884.52 |
| Inputtax10%deduction | 406,083.20 | Otherincomes/Deferredincome | 369,265.69 |
| Officerentsubsidy | 102,415.76 | Otherincomes | 102,415.76 |
| Centralizedfinancialsubsidyfundforcomprehensivepilotworkofmodernserviceindustry | 150,000.00 | Otherincomes | 150,000.00 |
| GuangdongProvincialScienceandTechnologyBureau'sgrantforthe"SmartSupplyChainProject" | 17,011.65 | Otherincomes | 17,011.65 |
| GuangzhouLogisticsStandardizationPilotProject | 273,123.42 | Otherincomes | 273,123.42 |
| Industrialapplicationprojectofpharmaceuticalcoldchainpatentincubator | 12,499.98 | Otherincomes | 12,499.98 |
| KeyenterprisessupportrewardsofLiwanDistrict,Guangzhou | 60,800.00 | Otherincomes | 60,800.00 |
| Employmentsubsidy | 619,679.48 | Otherincomes | 619,679.48 |
| Statisticalworksubsidy | 10,000.00 | Otherincomes | 10,000.00 |
| Nanninglogisticsprojectconstructionsupportfund | 93,203.22 | Otherincomes | 93,203.22 |
| Businessbureauaward | 50,000.00 | Otherincomes | 50,000.00 |
| Businessenterprisesupportreward | 300,000.00 | Otherincomes | 300,000.00 |
| Modernlogisticscoldchainintegrationmonitoringplatformproject | 30,000.00 | Otherincomes | 30,000.00 |
| Medicalwarehousingcenterlogisticsinformationplatformproject | 71,428.56 | Otherincomes | 71,428.56 |
| Modernpharmaceuticallogisticsremotelocationconstructionproject | 35,714.28 | Otherincomes | 35,714.28 |
| Industrialtransformationandupgradingspecialfunds | 179,112.66 | Otherincomes | 179,112.66 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VNotestotheconsolidatedfinancialstatements(Continued)
57.Governmentgrants(Continued)
Quarterlygrowthawardforspecialfundsforindustrialdevelopment
| Quarterlygrowthawardforspecialfundsforindustrialdevelopment | 150,000.00 | Otherincomes | 150,000.00 |
| Subsidiesfortheemploymentofdisabledpersons | 18,257.35 | Otherincomes | 18,257.35 |
| Futiandistrictmodernserviceindustryquarterlygrowthaward | 300,000.00 | Otherincomes | 300,000.00 |
| Specialfundsforbusinessdevelopment | 50,000.00 | Otherincomes | 50,000.00 |
| 2018financebureausubsidyofPutuodistrict | 1,430,000.00 | Otherincomes | 1,430,000.00 |
| KeyenterprisessupportfundsofPutuodistrict | 483,143.05 | Otherincomes | 483,143.05 |
| FutianDistrictIndustrialDevelopmentSpecialFundAward | 700,000.00 | Otherincomes | 700,000.00 |
| GulouDistrictTaxSubsidy | 130,000.00 | Otherincomes | 130,000.00 |
| Small-scaletaxpayersareexemptfromVAT | 2,310,639.30 | Otherincomes | 2,310,639.30 |
| TianjinHepingDistrictBusinessCommitteeAward | 5,600.00 | Otherincomes | 5,600.00 |
| ShenyangCityServiceDevelopmentSpecialFundSubsidy | 2,000,000.00 | Otherincomes | 2,000,000.00 |
| taxreturnformDalian | 682,221.79 | Otherincomes | 682,221.79 |
| WeidongDistrictTaxReward | 100,000.00 | Otherincomes | 100,000.00 |
| YangpuDistrictSMEDevelopmentSpecialFund | 169,000.00 | Otherincomes | 169,000.00 |
| Taxsystemservicefeerefund | 280.00 | Otherincomes | 280.00 |
| Subsidyofelectricvehicle | 39,619.95 | Deferredincome | |
| ResettlementCompensationofNo.7ZhongyuRoad | 1,349,204.28 | Non-operatingincome | 1,349,204.28 |
| ShenzhenFutianDistrictDevelopmentServiceCenterDistrictIndustrialDevelopmentSpecialFundLoanDiscount | 133,300.00 | Financialexpenses | 133,300.00 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VI.Changesinscopeofconsolidation
1.Changesinscopeofconsolidationforotherreasons
Establishmentofsubsidiaries:
30June2019
| 30June2019 | Forthesixmonthsended30June2019 |
| Netassets | Netprofits |
| SinopharmHoldingGuodaBayannaoerCo.,Ltd.(a) | 20,071,010.09 | 71,010.09 |
| InnerMongoliaGuodaPharmaceuticalCo.,Ltd.(b) | 19,435,858.10 | (564,141.90) |
| SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.(c) | 21,362,985.84 | 162,985.84 |
a.On18November2018,theGroupandHohhotManshengyuanTradingCo.,Ltd.setupSinopharm
HoldingGuodaBayannaoerCo.,Ltd.registeredcapitalsubscribedRMB16,000,000.00andRMB4,000,000.00respctively.InJanuary2019,theGroupandminorityshareholderscompletedthecapitalcontribution.TheGroupholds80%ofitsequityafterthecompletion。b.On22October2018,TheGroupwholly-ownedInnerMongoliaGuodaPharmaceuticalCo.,Ltd.,
witharegisteredcapitalofRMB20million.,andcompletedcapitalcontributioninFebruary2019.c.On30April2019,theGroupandChaoyangBoweiConsultingServiceCo.,Ltd.setupSinopharm
HoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.,registeredcapitalsubscribedRMB
19,380,000.00andRMB18,620,000.00respctively.InJune2019,theGroupandtheminority
shareholderscontributedRMB6,528,000.00andRMB6,272,000.00respectively.TheGroup
holds51%ofitsequityafterthecompletion。
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIInterestsinotherentities
1．
| 1． | Interestsinsubsidiaries |
| (1) | ThecompositionoftheGroup: |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| SinopharmGuilin | Guilin | Guilin | Commercial | - | 100% | Establishment |
| SinopharmBaise | Baise | Baise | Commercial | - | 100% | Establishment |
| SinopharmHoldingZhongshanCo.,Ltd.(hereafterreferedas"SinopharmZhongshan") | Zhongshan | Zhongshan | Commercial | - | 100% | Establishment |
| SinopharmGuigang | Guigang | Guigang | Commercial | - | 100% | Establishment |
| SinopharmBeihai | Beihai | Beihai | Commercial | - | 100% | Establishment |
| SinopharmHoldingGuangzhouMedicalTreatment | Guangzhou | Guangzhou | Commercial | - | 51% | Establishment |
| SinopharmHoldingShenzhenJianminCo.,Ltd.(hereafterreferedas"SinopharmJianmin") | Shenzhen | Shenzhen | Commercial | 100% | - | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd.(hereafterreferdas“SinopharmTraditional&HerbalMedicine") | Shenzhen | Shenzhen | Commercial | 100% | - | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingShenzhenLogisticsCo.,Ltd.(hereafterreferedas“ShenzhenLogistics") | Shenzhen | Shenzhen | Services | 100% | - | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuangzhouCo.,Ltd.(hereafterreferedas“SinopharmGuangzhou") | Guangzhou | Guangzhou | Commercial | 100% | - | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuangdongHengxingCo.,Ltd.(hereafterreferedas“SinopharmHengxing") | Guangzhou | Guangzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmYulin | Yulin | Yulin | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued): |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| SinopharmLiuzhou | Liuzhou | Liuzhou | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangdongHuixinInvestmentCo.,Ltd.(“HuixinInvestment”) | Guangzhou | Guangzhou | Service | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmHoldingFoshanCo.,Ltd.(“SinopharmFoshan") | Foshan | Foshan | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd.(“SinopharmYuexing”) | Guangzhou | Guangzhou | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmHoldingGuangdongLogisticsCo.,Ltd.(“GuangdongLogistic”) | Guangzhou | Guangzhou | Service | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmGuangxi | Nanning | Nanning | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| GuangxiLogistic | Nanning | Nanning | Service | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmWuzhou | Wuzhou | Wuzhou | Commercial | 99.90% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmDongguan | Dongguan | Dongguan | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmZhanjiang | Zhanjiang | Zhanjiang | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmYanfeng | Shenzhen | Shenzhen | Commercial | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmMeizhou | Meizhou | Meizhou | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmHuizhou | Huizhou | Huizhou | Commercial | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol | |
| SinopharmZhaoqing | Zhaoqing | Zhaoqing | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmJiangmen（a） | Jiangmen | Jiangmen | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmShaoguan | Shaoguan | Shaoguan | Commercial | - | 70% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingShantouCo.,Ltd.(hereafterreferedas"SinopharmShantou”) | Shantou | Shantou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| FoshanNanhaiMedicineCo.,Ltd. | Foshan | Foshan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FoshanNanhaiUptodate&SpecialMedicinesCo.,Ltd. | Foshan | Foshan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FoshanNanhaiMedicineCo.,Ltd. | Foshan | Foshan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued): |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| GuangdongUptodate&SpecialMedicines | Guangzhou | Guangzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingZhuhaiCo.,Ltd.((hereafterreferdas“SinopharmZhuhai") | Zhuhai | Zhuhai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingMaomingCo.,Ltd.((hereafterreferdas“SinopharmMaoming") | Maoming | Maoming | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGZMedicalTechnologyCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 51% | Establishment |
| SinopharmHoldingGZMedicalSupplyChainServiceCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 51% | Establishment |
| SinopharmHoldingHeyuanCo.,Ltd.((hereafterreferdas“SinopharmHeyuan") | Heyuan | Heyuan | Commercial | - | 70% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGuodaPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 60% | - | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| BeijingGuodaPharmacyChainStoreCo.,Ltd. | Beijing | Beijing | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| TianjinGuodaPharmacyChainStoreCo.,Ltd. | Tianjin | Tianjin | Commercial | - | 80% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangxiGuodaPharmacyConsultingChainStoreCo.,Ltd. | Nanning | Nanning | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyGuangdongCo.,Ltd. | Shenzhen | Shenzhen | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuodaPharmacyGuangxiChainCo.,Ltd. | Liuzhou | Liuzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ZhejiangGuodaPharmacyCo.,Ltd. | Hangzhou | Hangzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd. | Yangzhou | Yangzhou | Commercial | - | 93.68% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| NingxiaGuodaPharmacyChainStoreCo.,Ltd. | Yinchuan | Yinchuan | Commercial | - | 70% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd. | Nanjing | Nanjing | Commercial | - | 60% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd. | Linyi | Linyi | Commercial | - | 55% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.(b) | Shenyang | Shenyang | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FujianGuodaPharmacyChainStoreCo.,Ltd.(c) | Xiamen | Xiamen | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued): |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| AnhuiGuodaPharmacyChainStoreCo.,Ltd. | Hefei | Hefei | Commercial | - | 60% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| QuanzhouGuodaPharmacyChainStoreCo.,Ltd. | Quanzhou | Quanzhou | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd. | Taiyuan | Taiyuan | Commercial | - | 85% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd. | Hengyang | Hengyang | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd. | Liyang | Liyang | Commercial | - | 80% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd. | Pingdingshan | Pingdingshan | Commercial | - | 60% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaInnerMengdiaPharmacyChainStoreCo.,Ltd. | Hohhot | Hohhot | Commercial | - | 96.7% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd. | Shijiazhuang | Shijiazhuang | Commercial | - | 60% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd. | Jiangmen | Jiangmen | Commercial | - | 65% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd. | Taiyuan | Taiyuan | Commercial | - | 80% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingXinjiangNew&SpecialMedicinesChainStoreCo.,Ltd. | Urumqi | Urumqi | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd. | Shanghai | Shanghai | Commercial | - | 97% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd.(Formerly“ShanghaiForMeYiXingPharmacyChainStoreCo.,Ltd.”) | Shanghai | Shanghai | Commercial | - | 99.76% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited | Beijing | Beijing | Commercial | - | 53.13% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiTongfengPharmacyLogisticsCo.,Ltd. | Taiyuan | Taiyuan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ChangzhiGuodaWanminPharmacyChainStoreCo.,Ltd. | Changzhi | Changzhi | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiGuodaWanminClinicManagementChainCo.,Ltd. | Taiyuan | Taiyuan | Medicalservices | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ZhejiangIntlmedicinePharmacyDongshanCo.,Ltd. | Hangzhou | Hangzhou | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaDongshengPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued): |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| SinopharmGuodaDrugStore(Shenzhen)ChainCo.,Ltd. | Shenzhen | Shenzhen | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyGuangzhouChainCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodongChineseTraditionalMedicineClinicCo.,Ltd. | Shanghai | Shanghai | Medicalclinic | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaDongxinPharmacyChainStoreCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiYutaitangChineseTraditionalMedicineClinicCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SanheLiyangGoldenElephantPharmacyCo.,Ltd. | Langfang | Langfang | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd. | Xiaoyi | Xiaoyi | Commercial | - | 70% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyHulunBuirCo.,Ltd. | HulunBuir | HulunBuir | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ForMeXuhui | Shanghai | Shanghai | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingUlanqabCo.,Ltd. | Ulanqab | Ulanqab | Commercial | - | 60% | Establishment |
| SinopharmGuodaPharmacyQinhuangdaoChainCo.,Ltd. | Qinhuangdao | Qinhuangdao | Commercial | - | 51% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| TaishanSinopharmHoldingGuodaQunkangPharmacyChainStoreCo.,Ltd. | Taishan | Taishan | Commercial | - | 70% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| BeijingGoldenElephantFuxingTechnologyCo.,Ltd. | Beijing | Beijing | Commercial | - | 80% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmLerentangShijiazhuangPharmaceutical | Shijiazhuang | Shijiazhuang | Commercial | - | 100% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaDrugStoreManchuriaCo.,Ltd. | Manchuria | Manchuria | Commercial | - | 51% | Establishment |
| SinopharmGuodaDrugStoreAnshanChainCo.,Ltd. | Anshan | Anshan | Commercial | - | 51% | Establishment |
| SinopharmHoldingGuodaYongshengDrugStore（Shanghai）Co.,Ltd. | Shanghai | Shanghai | Commercial | - | 55% | Establishment |
| SanheLixinGoldenElephantDrugstoreCo.,Ltd. | Langfang | Langfang | Commercial | - | 100% | Establishment |
| SinopharmHoldingFoshanMedicalConsumablesSupplyChainCo.,Ltd. | Foshan | Foshan | Commercial | - | 70% | Establishment |
| SinopharmHoldingMedicalSupplyChainService(Guangxi)Co.,Ltd. | Nanning | Nanning | Commercial | - | 30.06% | Establishment |
| ShanghaiGuodaHaohaiPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 51% | Establishment |
| SinopharmHoldingBaiyiPharmacyGuangxiCo.,Ltd. | Nanning | Nanning | Commercial | - | 51% | Establishment |
| SinopharmHoldingHezhouCo.,Ltd. | Hezhou | Hezhou | Commercial | - | 100% | Establishment |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued): |
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding | Waysofacquisition | |
| Direct | Indirect | |||||
| SinopharmHoldingNationalPharmacyZhengzhouChainCo.,Ltd. | Zhengzhou | Zhengzhou | Commercial | - | 60% | Establishment |
| ShanghaiGuodaRuijingPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 55% | Establishment |
| FujianGuodaPharmaceuticalCo.,Ltd. | Xiamen | Xiamen | Commercial | - | 100% | Establishment |
| SinopharmHoldingQinzhouCo.,Ltd. | Qinzhou | Qinzhou | Commercial | - | 100% | Establishment |
| SinopharmHoldingHechiCo.,Ltd. | Hechi | Hechi | Commercial | - | 100% | Establishment |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 70% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.(d) | Taiyuan | Taiyuan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| TaiyuanTongxinliGuodaPharmacyCo.,Ltd. | Taiyuan | Taiyuan | Commercial | - | 100% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGuodaBayannaoerCo.,Ltd.(e) | aBayannaoer | aBayannaoer | Commercial | - | 80% | Establishment |
| InnerMongoliaGuodaPharmaceuticalCo.,Ltd.(f) | Hohhot | Hohhot | Commercial | - | 100% | Establishment |
| SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.(g) | Chaoyang | Chaoyang | Commercial | - | 51% | Establishment |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
| (1) | ThecompositionoftheGroup(Continued) |
a.On13March2019,SinopharmJiangmenwasrenamedas“SinopharmHolding(Jiangmen)Co.,Ltd.”.b.SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltdincreasedtheregisteredcapitalby
RMB32,000,000.00withundistributedprofits.Afterthecapitalincreased,theregisteredcapitalofShenyangGuodaincreasedfromRMB18,000,000.00toRMB50,000,000.00,andtheshareholdingratiooftheoriginalshareholdersdidnotchange.c.On17April2019,theshareholderofFujianGuodaPharmacyChainStoreCo.,Ltd.ChangedfromSinopharm
HoldingGuodaPharmacyCo.,Ltd.toFujianGuodaPharmaceuticalCo.,Ltd.byinternaltransfer.The100%equityofFujianGuodaChainheldbytheoriginalshareholderSinopharmHoldingGuodaPharmacyCo.,Ltd.wastransferredtoFujianGuodaPharmaceuticalCo.,Ltd.d.On1February2019,ShanxiZhongaoPharmaceuticalCo.,Ltd.wasrenamedas“SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.”.e.On5November2018,theGroupandHohhotManshengyuanTradingCo.,Ltd.setupSinopharmHolding
GuodaBayannaoerCo.,Ltd.registeredcapitalsubscribedRMB16,000,000.00andRMB4,000,000.00respctively.InJanuary2019,theGroupandminorityshareholderscompletedthecapitalcontribution.TheGroupholds80%ofitsequityafterthecompletion.f.On22October2018,theGroupwholly-ownedInnerMongoliaGuodaPharmaceuticalCo.,Ltd.,witha
registeredcapitalofRMB20million.,andcompletedcapitalcontributioninFebruary2019.g.On30April2019,theGroupandChaoyangBoweiConsultingServiceCo.,Ltd.setupSinopharmHolding
GuodaYongxingtangChain(Chaoyang)Co.,Ltd.,registeredcapitalsubscribedRMB19,380,000.00andRMB
18,620,000.00respctively.InJune2019,theGroupandminorityshareholderscontributedRMB6,528,000.00
andRMB6,272,000.00respectively.TheGroupholds51%ofitsequityafterthecompletion。
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII.Interestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)Importantnon-whollyownedsubsidiary
Subsidiaries
| Subsidiaries | Minorityshareholdingratio | Profitorlossattributabletominorityshareholdersinthecurrentperiod | Dispatchofdividendstominorityshareholdersinthecurrentperiod | Minorityshareholders'equity |
| SinopharmHoldingGuodaPharmacyCo.,Ltd. | 40.00% | 60,082,149.76 | 1,743,715,207.60 |
(2)Keyfinancialinformationofimportantnon-whollyownedsubsidiaries
| Subsidiaries | 30June2019 | 31December2018 | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| SinopharmHoldingGuodaPharmacyCo.,Ltd. | 7,637,323,815.74 | 3,210,489,588.58 | 10,847,813,404.32 | 4,642,692,689.21 | 1,027,988,905.69 | 5,670,681,594.90 | 7,467,662,962.46 | 1,567,755,313.41 | 9,035,418,275.87 | 3,994,471,884.62 | 64,729,132.20 | 4,059,201,016.82 |
| Subsidiaries | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | ||||||
| Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | Operatingrevenue | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | |
| SinopharmHoldingGuodaPharmacyCo.,Ltd. | 6,107,899,231.32 | 186,189,865.75 | 186,189,865.75 | 545,455,740.77 | 5,143,601,636.87 | 172,985,004.03 | 172,985,004.03 | 77,797,706.43 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII.Interestsinotherentities(Continued)
2.Interestsinassociates
Principalplaceofbusiness
| Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding(%) | Accounting | |||
| Direct | Indirect | ||||||
| Associates | |||||||
| ShenzhenMainLuckPharmaceuticalCo.,Ltd.(hereafterreferdas"MainLuckPharmaceutical") | Shenzhen | Shenzhen | Manufacturing | 35.19% | - | Equity |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Suzhou | Suzhou | Manufacturing | 33.00% | - | Equity |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Shenzhen | Shenzhen | Manufacturing | 49.00% | - | Equity |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd. | Shenzhen | Shenzhen | Commercial | 49.00% | - | Equity |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Shenzhen | Shenzhen | Manufacturing | 49.00% | - | Equity |
| ShanghaiShyndecPharmaceuticalCo.,Ltd.(hereafterreferdas“ShyndecPharmaceutical”) | Shanghai | Shanghai | Manufacturing | 16.28% | - | Equity |
| ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.(hereafterreferedas“ShanghaiDingqun”) | Shanghai | Shanghai | Businessserviceindustry | 2.53% | - | Equity |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | Shanghai | Shanghai | Commercial | - | 26.00% | Equity |
| ShanghaiLiyiPharmacyCo.,Ltd | Shanghai | Shanghai | Commercial | - | 35.00% | Equity |
| SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd. | Guangzhou | Guangzhou | Commercial | - | 29.00% | Equity |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII.Interestsinotherentities(Continued)
2.Interestsinassociates(Continued)
Principalplaceofbusiness
| Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding(%) | Accounting | ||
| Direct | Indirect | |||||
| Associates | ||||||
| DongyuanaccordpharmaceuticalchainCo.,Ltd. | Heyuan | Heyuan | Commercial | - | 45.00% | Equity |
| GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.(hereafterreferedas“GuangdongJianhui”) | Zhanjiang | Zhanjiang | Public-Private-Partnership | - | 10.00% | Equity |
| ShanghaiRenbeiPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | - | 30.00% | Equity |
Explicationoftheshareholdingratioofajointventurediffersfromtheproportionofvotingrights:
Thebasisthatholdslessthan20%ofthevotingrightsbuthasasignificantimpact,orholds20%ormoreofthevotingrightsbuthasnosignificantimpact:
(1)ThehighestauthorityofShanghaiDingqunistheshareholders'meeting,andtheshareholders
exercisetheirvotingrightsaccordingtotheproportionofcapitalcontribution.Atthesametime,ShanghaiDingqunhassetupaboardofdirectorswhichisresponsiblefortheshareholders'meeting.Theboardconsistsofthreemembers,ofwhichthecompanyhasappointedonedirector.Thevoteontheboard'sresolutionisonevoteperperson,andalltheboardresolutionsshouldbepassedbymorethanhalfofalldirectors.
(2)ThehighestauthorityofGuangdongJianhuiistheshareholders'meeting,andtheshareholders
exercisetheirvotingrightsaccordingtotheproportionofthecapitalcontribution.Atthesametime,GuangdongJianhuisetupaboardofdirectorswhichisresponsiblefortheshareholders'meeting.Theboardconsistsoffivemembers,ofwhichthecompanyhasappointedonedirector.Thevoteontheresolutionoftheboardofdirectorsisonevoteperperson.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VII.Interestsinotherentities(Continued)
3.Summarisedfinancialinformationofsignificantassociate
30June2019/Forthesixmonths
ended30June2019
| 30June2019/Forthesixmonthsended30June2019 | 1January2019/Forthesixmonthsended30June2018 | |
| ShanghaiShyndecPharmaceuticalCo.,Ltd. | ShanghaiShyndecPharmaceuticalCo.,Ltd. | |
| Currentassets | 10,502,009,120.54 | 8,470,191,403.19 |
| Non-currentassets | 7,879,885,410.94 | 7,993,673,189.70 |
| Totalassets | 18,381,894,531.48 | 16,463,864,592.89 |
| Currentliabilities | 7,111,735,949.12 | 6,568,480,863.79 |
| Non-currentliabilities | 2,323,172,902.37 | 1,452,099,931.65 |
| Totalliabilities | 9,434,908,851.49 | 8,020,580,795.44 |
| Non-controllinginterests | 1,616,396,132.89 | 1,637,029,480.44 |
| Shareholders’equityattributabletoshareholdersoftheparent | 7,330,589,547.10 | 6,806,254,317.01 |
| Portionofnetassetscalculatedbyshareholdingratio | 1,189,353,675.16 | 1,098,566,852.51 |
| Carryingvalueofequityinvestmentinjointventures | 1,189,353,675.16 | 1,098,566,852.51 |
| Operatingrevenue | 6,255,380,073.90 | 5,853,255,169.05 |
| Netprofit | 525,814,658.05 | 575,258,204.58 |
| Totalcomprehensiveincome | 525,814,658.05 | 575,258,204.58 |
| Dividendsreceivedfromjointventuresthisperiod | 16,896,427.80 | 8,641,853.20 |
| 30June2019/Forthesixmonthsended30June2019 | 1January2019/Forthesixmonthsended30June2018 | |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | |
| Currentassets | 1,288,625,706.65 | 1,111,485,098.64 |
| Non-currentassets | 302,186,939.74 | 298,610,691.12 |
| Totalassets | 1,590,812,646.39 | 1,410,095,789.76 |
| Currentliabilities | 725,207,812.63 | 659,931,220.07 |
| Non-currentliabilities | 20,932,797.22 | 24,953,965.28 |
| Totalliabilities | 746,140,609.85 | 684,885,185.35 |
| Non-controllinginterests | - | - |
| Shareholders’equityattributabletoshareholdersoftheparent | 844,672,036.54 | 725,210,604.41 |
| Portionofnetassetscalculatedbyshareholdingratio | 413,889,297.90 | 355,353,196.15 |
| Carryingvalueofequityinvestmentinjointventures | 413,889,297.90 | 355,353,196.15 |
| Operatingrevenue | 1,060,889,164.97 | 979,292,309.92 |
| Netprofit | 119,461,432.13 | 125,252,164.85 |
| Totalcomprehensiveincome | 119,461,432.13 | 125,252,164.85 |
| Dividendsreceivedfromjointventuresthisperiod | - | 58,111,254.57 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments
1.Classificationoffinancialinstruments
Thecarryingamountsofeachcategoryoffinancialinstrumentsasatthedateoffinancialpositionareasfollows:
30June2019
Financialassets
| Financialassets | Financialassetsatfairvaluethroughprofitorloss | Financialassetsatamortisedcost | Financialassetsatfairvaluethroughothercomprehensiveincome | Total | ||
| Mandatorilyrequired | Mandatorilyrequired | Designation | ||||
| Cashandbankbalances | - | 8,086,328,508.49 | - | - | 8,086,328,508.49 | |
| Notesreceivable | - | 790,664,828.26 | - | - | 790,664,828.26 | |
| Accountsreceivable | - | 11,826,440,731.59 | - | - | 11,826,440,731.59 | |
| Receivablefinancing | - | - | 325,439,580.18 | - | 325,439,580.18 | |
| Otherreceivables | - | 654,086,387.85 | - | - | 654,086,387.85 | |
| Othernon-currentfinancialassets | 140,000,000.00 | - | - | - | 140,000,000.00 | |
| Investmentinotherequityinstrument | - | - | - | 13,685,760.00 | 13,685,760.00 | |
| 140,000,000.00 | 21,357,520,456.19 | 325,439,580.18 | 13,685,760.00 | 21,836,645,796.37 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
1.Classificationoffinancialinstruments(Continued)
30June2019
Financialliabilities
| Financialliabilities | Financialliabilitiesatamortisedcost |
| Short-termborrowings | 3,290,877,595.23 | |
| Notespayable | 3,539,095,262.34 | |
| Accountspayable | 8,088,697,602.94 | |
| Otherpayables | 1,474,526,698.43 | |
| Non-currentliabilitiesduewithinoneyear | 558,296,784.75 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
1.Classificationoffinancialinstruments(Continued)
Thecarryingamountsofeachcategoryoffinancialinstrumentsasatthedateoffinancialpositionareasfollows:
1January2019
Financialassets
| Financialassets | Financialassetsatfairvaluethroughprofitorloss | Financialassetsatamortisedcost | Financialassetsatfairvaluethroughothercomprehensiveincome | Total | ||
| Mandatorilyrequired | Mandatorilyrequired | Designation | ||||
| Cashandcashequivalents | - | 8,089,781,304.56 | - | - | 8,089,781,304.56 | |
| Notesreceivable | - | 789,536,654.23 | - | - | 789,536,654.23 | |
| Accountsreceivable | - | 9,336,861,647.92 | - | - | 9,336,861,647.92 | |
| Receivablefinancing | - | - | 567,775,275.40 | 567,775,275.40 | ||
| Otherreceivables | - | 643,493,359.32 | - | - | 643,493,359.32 | |
| Othernon-currentfinancialassets | 140,000,000.00 | - | - | - | 140,000,000.00 | |
| Investmentinotherequityinstrument | - | - | - | 13,685,760.00 | 13,685,760.00 | |
| 140,000,000.00 | 18,859,672,966.03 | 567,775,275.40 | 13,685,760.00 | 19,581,134,001.43 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
1.Classificationoffinancialinstruments(Continued)
1January2019
2.TransferoffinancialassetsTransferredfinancialassetsthatarenotderecognizedintheirentiretyAsat30June2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettletradepayablesduetosuchsuppliersofRMB5,000,000.00(31December2018:RMB301,416.00).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At30June2019,thecarryingvaluethereofwasRMB211,316,836.99(31December2018:RMB170,013,427.11).Intheopinionofthedirectors,theGrouphasretainedthesubstantialrisksandrewards,whichincludedefaultrisksrelatingtosuchEndorsedBills,andaccordingly,itcontinuedtorecognizethefullcarryingamountsoftheEndorsedBillsandtheassociatedtradepayablessettled.SubsequenttotheEndorsement,theGroupdidnotretainanyrightsoftheuseoftheEndorsedBills,includingthesales,transferorpledgeoftheEndorsedBillstoanyotherthirdparties.Asat30June2019,thecarryingvalueoftradepayablessettledbytheGrouptotalledRMB216,316,836.99(31December2018:RMB170,314,843.11).
Financialliabilities
| Financialliabilities | Financialliabilitiesatamortisedcost |
| Short-termborrowings | 2,597,652,702.43 | |
| Notespayable | 3,416,755,681.80 | |
| Accountspayable | 6,468,535,961.17 | |
| Otherpayables | 1,539,436,971.93 | |
| Non-currentliabilitiesduewithinoneyear | 5,861,324.37 | |
| Long-termborrowings | 31,600,000.00 | |
| Long-termpayables | 3,763,978.52 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
2.Transferoffinancialassets(Continued)TransferredfinancialassetsthatarederecognizedintheirentiretyinwhichcontinuinginvolvementexistsAsat30June2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettletradepayablesduetosuchsuppliersofRMB665,479,757.50(31December2018:RMB568,118,674.84).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At30June2019,thecarryingvaluethereofwasRMB879,092,916.00(31December2018:RMB705,143,849.35).Thederecognizedbillshadamaturityof1to12monthsattheendofthereportingperiod.InaccordancewiththeLawofNegotiableInstruments,theholdersofthederecognizedbillshavearightofrecourseagainsttheGroupiftheacceptingbanksdefault(the“ContinuingInvolvement”).Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsrelatingtothederecognizedbills.Accordingly,ithasderecognizedthefullcarryingamountsofthederecognizedbillsandtheassociatedtradepayables.ThemaximumexposuretolossfromtheGroup'sContinuingInvolvementinthederecognizedbillsandtheundiscountedcashflowstorepurchasethesederecognizedbillsisequaltotheircarryingamounts.Intheopinionofthedirectors,thefairvaluesoftheGroup’sContinuingInvolvementinthederecognizedbillsarenotsignificant.Duringthesixmonthsended30June2019,theGrouphasnotrecognizedanygainorlossonthedateoftransfer.NogainorlosswasrecognizedfromderecognizedfinancialassetsinwhichtheContinuingInvolvementexists,bothduringtheyearorcumulatively.Duringthesixmonthsended30June2019,theGrouphasnotrecognizedanygainorlossonthedateoftransferofthederecognizedbills.NogainsorlosseswererecognizedfromtheContinuingInvolvement,bothduringtheyearorcumulatively.Aspartofitsnormalbusiness,theGroupenteredintoantradereceivablefactoringarrangement(the“Arrangement”)withoutrecourseandtransferredcertaintradereceivablestoabank.Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsunderthearrangement.Accordingly,ithasderecognizedthefullcarryingamountsoftheassociatedtradereceivables.TheoriginalcarryingvalueofthederecognizedtradereceivablestransferredundertheArrangementthathavenotbeensettledasat30June2019amountedtoRMB1,299,923,031.76(31December2018:
RMB827,745,640.19).
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
3.RisksoffinancialinstrumentsTheGroup'sprincipalfinancialinstrumentscomprisebankborrowingsandcashandshorttermdeposits.ThemainpurposeofthesefinancialinstrumentsistoraisefinancefortheGroup'soperations.TheGrouphasvariousotherfinancialassetsandliabilitiessuchastradereceivablesandtradepayables,whicharisedirectlyfromitsoperations.TheCompany’sboardofdirectorsareresponsibleforplanningandestablishingtheriskmanagementframeworkoftheGroup,formulatingriskmanagementpoliciesandrelatedguidelinesoftheGroupandsupervisingtheimplementationofriskmanagementmeasures.TheGrouphasalreadydevelopedriskmanagementpoliciestoidentifyandanalysetherisksfacedbytheGroup,whichhaveclearlyidentifiedspecificrisks,coveringalotofaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheGroupregularlyassessesthemarketenvironmentandchangesintheGroup’sbusinessactivitiestodeterminewhetherornottoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheGroupshallbeconductedbytheoperationsandmanagementdepartmentaccordingtothepolicyapprovedbytheCompany’smanagement.Theoperationsandmanagementdepartmentidentifies,evaluatesandavoidsrelatedrisksbymeansofclosecooperationwithotherbusinessunitsoftheGroup.Toavoidtheriskconcentratingonasingleindustry,aspecificareaoraspecificcounterparty,theGroupspreadsfinancialinstrumentsriskwithdiversifiedinvestmentsandbusinessportfolio.CreditriskTheGrouponlytradeswithrecognisedandcreditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivablebalancesaremonitoredonanongoingbasisandtheGroup’sexposuretobaddebtsisnotsignificant.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecialapprovalofthecreditcontroldepartmentoftheGroup.Sincecashandbankbalances,bankacceptancebillsreceivableandderivativefinancialinstrumentsareplacedinthewell-establishedbankswithhighcreditratings,thecreditriskofthesefinancialinstrumentsislower.TheotherfinancialinstrumentsoftheGroupincludecashandbankandotherreceivables.Thecreditriskofthesefinancialassetsresultfromdefaultofcounterparty.Themaximumcreditexposureequalstothebookvalueoftheseinstruments.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)TheGroupappliesstandardcreditclauseforsaleofgoodstocustomers,atthesametimepurchaseothergoodsfromsomeofthemajorcustomers.Disclosuresregardingmaximumcreditexposureontradereceivablesareasfollows:
30June2019
| 30June2019 | 1January2019 |
| Tradereceivablebookvalue | 12,991,845,283.92 | 10,733,695,012.29 | |
| Less:Baddebtprovision | (49,300,143.89) | (39,521,434.74) |
| Carryingvalue | 12,942,545,140.03 | 10,694,173,577.55 |
TheGrouphasagreementwithcustomersstatingthatonlyinthecircumstancesofdefaultinpaymentfromthecustomer,cantheGroupusethepayablebalanceofthesamecustomertooffsetreceivables.Therefore,ateverybalancesheetdate,themaximumcreditriskexposureoftheGroupisthetotalamountoftradereceivableslessbaddebtprovision.Sincepayablescannotbeoffsetwithinthebalancesheet,themaximumcreditriskexposureiswithoutdeductingthecustomerpayablebalance.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Creditrisksaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.TherearenosignificantconcentrationsofcreditriskwithintheGroupasthecustomerbasesoftheGroup’stradereceivablesarewidelydispersedindifferentsectorsandindustries.TheGroupdoesnotholdanycollateralorothercreditenhancementsoveritstradereceivablebalances.DeterminationofsignificantincreaseincreditriskAteachreportingdate,thegroupdetermineswhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition.Whendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort.Thisincludesbothquantitativeandqualitativeinformationanalysis,basedontheGroup’shistoricalexperienceandinformedcreditassessmentandincludingforward-lookinginformation.Inordertodeterminethechangeofexpecteddefaultriskduringthefinancialinstrument’sentirelifetime,theGroupcomparesthedefaultriskoffinancialinstrumentonthebalancesheetdateandontheinitialrecognitiondatebaseonasinglefinancialinstrumentorfinancialinstrumentportfoliowithsimilardefaultrisk.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)TheGroupdeterminesthatthecreditrisktoffinancialassetshassignificantlyincreasedwhenoneormorequantitativeorqualitativecriteriaaremet:
-quantitativecriteriaaremainlyprobabilityofdefaultincreasingmorethanagiven%sinceinitial
recognition;-qualitativecriteriaaremainlysignificantdetrimentalchangesintheborrower’soperatingor
financialconditionsandearlywarningcustomerlists.-Theuppercriteriais30daystheborrowersdefault.Definitionofcredit-impairedfinancialassetsInassessingwhetherafinancialassetiscredit-impaired,theGroupconsidersbothquantitativeandqualitativeinformationinlinewithinternalcreditriskmanagement.TheGroupassesseswhetherafinancialassetiscredit-impairedbyconsideringthefollowingfactors:
-significantfinancialdifficultyoftheborrowerorissuer;-abreachofcontractsuchasadefaultorpastdueevent;-thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtotheborrower’s
financialdifficulty,havinggrantedtotheborrowerconcession(s)thatthelender(s)wouldnot
otherwiseconsider;-itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;-thedisappearanceofanactivemarketforsecuritybecauseoffinancialdifficulties;-financialassetspurchasedorsourcedatlargediscountsindicatingthatcreditlosseshave
occurred.Theimpairmentoffinancialassetsmaynotbenecessarilyduetoasingledisparateevent.Thecombinedeffectsofmultipleeventsmayresultinfinancialassetsbeingcredit-impaired.ParameteroftheexpectedcreditlossmodelBasedonwhetherthereisasignificantincreaseincreditriskandwhetherthefinancialassetsarecredit-impaired,theGrouprecognizesimpairmentallowancefordifferentassetsusingeither12-monthexpectedcreditlossesorlifetimeexpectedcreditlosses.ThemeasurementoftheECLmodelisafunctionoftheprobabilityofdefault,thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)andtheexposureatdefault.TheGroupestablishesthemodelbyconsideringthequantitativeanalysisofhistoricalstatisticssuchascounterpartyrating,theguaranteemethod,collateralcategory,repaymentmethod,andalsoforward-lookinginformation.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)Creditrisk(Continued)Definitions:
-Theprobabilityofdefaultistheprobabilitythatthedebtorwillnotbeabletomeetitsrepayment
obligationswithinthefollowing12monthsorthroughouttheremainingduration.Toreflectthemacro-economicenvironmentconditions,theGroup’sassessmentoftheprobabilityofdefaultisbasedonthecalculationoftheECLmodeladjustedbyforward-lookinginformation.-Thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)referstotheGroup's
expectationoftheextentofthelossofdefaultriskexposure.Thelossgivendefaultvariesdependingonthetypeofcounterparty,thewayandpriorityofrecourse,andthetypeofcollateral.Thelossgivendefaultisthepercentageoftheriskexposurelossatthetimeofdefault,calculatedonthebasisofthenext12monthsortheentireduration.-TheexposureatdefaultreferstotheamountthattheGroupshouldberepaidintheeventofdefaultinthenext12monthsorthroughouttheremainingperiod.Forward-lookinginformationTheassessmentofasignificantincreaseincreditriskandthecalculationoftheECLbothinvolveforward-lookinginformation.TheGrouprecognizeskeyeconomicratiosthatinfluencecreditriskandECLbyhistoricaldataanalysis.Asat30June2019,therewasnoevidenceofsignificantincreaseincreditrisk(31December2018:nil).CurrencyriskTheGroup’smajoroperationalactivitiesarecarriedoutinMainlandChinaandamajorityofthetransactionsaredenominatedinRMB.TheGroupisexposedtoforeignexchangeriskarisingfromtherecognizedassetsandliabilities,andfuturetransactionsdenominatedinforeigncurrencies,primarilywithrespecttoUnitedStatesdollarsandHongKongdollars.TheGroup’sfinancedepartmentatitsheadquartersisresponsibleformonitoringtheamountsofassetsandliabilities,andtransactionsdenominatedinforeigncurrencies.TheGroupmayconsiderenteringintoforwardexchangecontractsorcurrencyswapcontractstomitigatetheforeignexchangerisk.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
VIIl.Risksrelatedtofinancialinstruments(Continued)
4.CapitalmanagementTheCompany’sprimaryobjectiveformanagingcapitalistoensurethatitmaintainsastrongcreditratingandhealthycapitalratioinordertosupportitsbusiness,maximizeshareholders’valueandbenefitrelatedparties.Managementalsoaimstomaintainacapitalstructurethatensuresthelowestcostofcapitalavailabletotheentity.Managementadjuststhecapitalstructurethroughadjustingdividendpaymentstoshareholders,returningcapitaltoshareholders,issuingnewsharesorsellingassetstoreducedebts.TheGroup’stotalcapitalisthetotalshareholders’equityinthebalancesheet.TheGroupdoesnotadoptanassetratioasacompulsoryfactortogoverncapitalinvestment.ThegearingratiosoftheGroupasat30June2019and1January2019wereasfollows:
30June2019
| 30June2019 | 1January2019 |
| Gearingratio | 56.59% | 54.44% |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IX.Disclosureoffairvalue
1.Assetsandliabilitiesatfairvalue30June2019:
Inputappliedinthemeasurementoffairvalue
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Receivablefinancing | - | 325,439,580.18 | - | 325,439,580.18 | ||
| Investmentinotherequityinstrument | - | - | 13,685,760.00 | - | 13,685,760.00 | |
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 339,125,340.18 | 140,000,000.00 | 479,125,340.18 |
1January2019:
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Receivablefinancing | - | 567,775,275.40 | - | 567,775,275.40 | ||
| Investmentinotherequityinstrument | - | - | 13,685,760.00 | - | 13,685,760.00 | |
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 581,461,035.40 | 140,000,000.00 | 721,461,035.40 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IX.Disclosureoffairvalue
2.Assetsandliabilitiesdisclosedatfairvalue1January2019:
Inputappliedinthemeasurementoffairvalue
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Long-termborrowings | - | 31,600,000.00 | - | 31,600,000.00 |
3.Estimationoffairvalue
ThefollowingarebookvalueandfairvalueoffinancialinstrumentsoftheGroupexcludingthosethathasimmaterialdifferentinbookvalueandfairvalue:
| 30June2019 | 1January2019 | 31December2018 | |||||||
| Bookvalue | Fairvalue | Bookvalue | Fairvalue | Bookvalue | Fairvalue | ||||
| Financialliabilities | |||||||||||
| Long-termborrowings | - | - | 31,600,000.00 | 31,600,000.00 | 31,600,000.00 | 31,600,000.00 |
Managementhasassessedthatthefairvaluesofcashandcashequivalents,notesreceivable,tradereceivables,otherreceivables,short-termborrowings,notespayable,tradepayables,otherpayables,non-currentliabilitiesduewithinoneyearandothercurrentassetsandliabilities,andcurrentliabilitiesapproximatetotheircarryingamountslargelyduetotheshortremainingmaturitiesoftheseinstruments.ThefinancialcontrolleroftheGrouptakestheresponsibilitytoformulatepoliciesandproceduresrelatedtofinancialinstrumentfairvaluemeasurementsanddirectlyreportstotheCFOandtheauditcommittee.Oneachbalancesheetdate,thefinancialdepartmentanalysesthevariationofthefairvuleoffinancialinstrumentsanddeterminestheinputsapplicabletovaluation.ThevaluationisrequiredtobeapprovedbytheCFO.Thefairvaluesoffinancialassetsandliabilitiesaretheamountatwhichtheinstrumentcouldbeexchangedordebtscouldbesettledinanarm’slengthtransactionbetweenknowledgeableandwillingparties,otherthaninaforcedorliquidationsale.Thefollowingmethodsandassumptionswereusedtoestimatethefairvalues.Thefairvaluesofshort-termandlong-termborrowings,andlong-termpayableshavebeencalculatedbydiscountingtheexpectedfuturecashflowsusingmarketratesofreturncurrentlyavailableforotherfinancialinstrumentswithsimilarterms,creditriskandremainingmaturities.Asat30June2019,theGroup’sownnon-performanceriskforshort-termandlong-termborrowingswasassessedtobeinsignificant.Foranequityinstrumentoflistedentities,themarketpriceisusedtodeterminefairvalue.Foranequityinstrumentofnon-listedentities,themarketcomparablecompanymodelisusedtoestimatefairvalue.TheGroupbelievesthatestimatedfairvaluebythevaluationmethodisrational,andalsothemostsufficientvalueatthebalancesheetdate.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
IX.Disclosureoffairvalue
4.UnobservableinputsAfinancialinstrumentthatismeasuredatfairvaluewithmeasurementoflevel3isinsensitivetoreasonablefluctuationoftheunobservableinputs.
5.TransfersbetweenlevelsoffairvaluemeasurementAt30June2019and1January2019,therewerenotransfersoffairvaluemeasurementsbetweenLevel1andLevel2.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
1.Parent
Registeredaddress
| Registeredaddress | Natureofbusiness | Sharecapital(RMB’0,000) | ProportionofownershipinterestintheCompany | ProportionofvotingpowerintheCompany |
| SinopharmGroup | Shanghai | Industrialinvestmentholding,trusteeofapharmaceuticalenterprise,assetsreorganization,distributionandretailofmedicinesandpharmaceuticalproducts,etc. | 297,165.62 | 56.06% | 56.06% |
TheultimatecontrollingpartyoftheCompanyisCNPGC.
2.SubsidiariesRefertoNoteVII(1)fordetailsofsubsidiaries.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
3.Associates
RefertoNoteVII(2)fordetailsofassociates.
Companyname
| Companyname | Relatedpartyrelationships |
| ShenzhenMainLuckPharmaceuticalCo.,Ltd. | Associate |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Associate |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd. | Associate |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Associate |
| ShyndecPharmaceutical | Associate |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Associate |
| ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd. | Associate |
| SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd. | Associate |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | Associate |
| ShanghaiLiyiDrugStoreCo.,Ltd | Associate |
| DongyuanaccordpharmaceuticalchainCo.,Ltd. | Associate |
| ShanghaiRenbeiPharmacyCo.,Ltd. | Associate |
| GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd. | Associate |
4.Otherrelatedparties
| Companyname | Relatedpartyrelationships |
| SinopharmHoldingShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShenyangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingDalianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJinzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupMedicineLogisticCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHunanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYongzhouCo.,Ltd. | ControlledbySinopharmGroup |
| ChinaNationalMedicinesCo.,Ltd. | ControlledbySinopharmGroup |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmProspectDentech(Beijing)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmholdingsBeijinghuahongco.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingZhejiangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHenanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingPingdingshanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingAnhuiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShandongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLunanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingRizhaoCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJinanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingDezhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLiaochengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHainanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFujianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingPutianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingQuanzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXiamenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNingxiaCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinyuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTongliaoCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingUlanqabCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBayannaoerCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHulunBuirCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingOrdosCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJilinCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChongqingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiangsuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYangzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | ControlledbySinopharmGroup |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| SinopharmHoldingTaizhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingWuxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLianyungangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChangzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYanchengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHeilongjiangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLerentangPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingDalianHechengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChangshaCo.,Ltd. | ControlledbySinopharmGroup |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | ControlledbySinopharmGroup |
| SinopharmGroupAnhuiMedicalDevicesCo.,Ltd. | ControlledbySinopharmGroup |
| ChinaMedicalEquipmentShandongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLiaoningMedicalEquipmentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupShanxiMedicalDevicesCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupShanghaiMedicineDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinDistributionCenterCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZhangzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGansuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiangxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChengduCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited | ControlledbySinopharmGroup |
| SinopharmXinxiangChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYunnanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNantongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | ControlledbySinopharmGroup |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHuaianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupShanghaiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | ControlledbySinopharmGroup |
| XinjiangBaitongPropertyServiceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | ControlledbySinopharmGroup |
| ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd. | ControlledbySinopharmGroup |
| GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHolding(Hubei)BasePharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | ControlledbySinopharmGroup |
| GuoyaoLerentangHebeiMedicalDeviceSupplyChainManagementCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangQinhuangdaoMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGuizhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangTangshanMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNanpingNewforceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHebeiMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJinhuaCo.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinNorthMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiHongyuanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiaozuoCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingWuhuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHongheCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChuxiongCo.,Ltd. | ControlledbySinopharmGroup |
| YuxiSinopharmMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHainanHongyiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLongyanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNingdeCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingAnshunCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTongrenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZunyiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJilinChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSipingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingWenzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| GuoyaoLerentangShijiazhuangMedicalManagementCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingQinghaiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| SinopharmHoldingDeyangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmNanpingMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLu'anCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNanchangChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinxiangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHuangshiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiningCo.,Ltd. | ControlledbySinopharmGroup |
| FujianSinopharmMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangBaodingMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangHengshuiMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| HuayiPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | ControlledbyCNPGC |
| ShandongLuYaPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| FoshanFengliaoxingPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| WinteamPharmaceuticalGroupLtd. | ControlledbyCNPGC |
| FoshanDezhongPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ChengduRongshengPharmacyCo.,Ltd. | ControlledbyCNPGC |
| LanzhouBiotechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
| ShantouJinshiPowderInjectionCo.,Ltd. | ControlledbyCNPGC |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | ControlledbyCNPGC |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| WuhanZhonglianPharmaceuticalGroupCo.,Ltd. | ControlledbyCNPGC |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | ControlledbyCNPGC |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| ChinaNationalPharmaceuticalForeignTradeCorporation | ControlledbyCNPGC |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmYixinPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | ControlledbyCNPGC |
| GuizhouTongjitangPharmacyChainCo.,Ltd. | ControlledbyCNPGC |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmWuhanbloodproductsCo.,Ltd. | ControlledbyCNPGC |
| FujianChentianJinlingPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | ControlledbyCNPGC |
| ChinaNationalofTraditional&HerbalMedicineCo.,Ltd. | ControlledbyCNPGC |
| SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstitute | ControlledbyCNPGC |
| GroupFinancialCo. | ControlledbyCNPGC |
| ShanghaiShangshengBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd. | ControlledbyCNPGC |
| YichangHumanwellPharmaceuticalCo.,Ltd. | AssociateofSinopharmGroup |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | AssociateofSinopharmGroup |
| SinopharmHealthOnlineCo.,Ltd. | AssociateofSinopharmGroup |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | AssociateofSinopharmGroup |
| ShanghaiGuodaLingyunPharmacyCo.,Ltd. | AssociateofSinopharmGroup |
| NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd. | AssociateofSinopharmGroup |
| ChangchunChangshengGenePharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | AssociateofCNPGC |
| SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| SichuanHexinPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| GuilinSouthpharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| TibetYaoyouMedicinesCo.,Ltd. | SubsidiaryofFosunPharm |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiTransfusionTechnologyCo.,Ltd. | SubsidiaryofFosunPharm |
| JiangsuWanbangPharmacyMarketingCo.,Ltd. | SubsidiaryofFosunPharm |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| JinzhouAoHongPharmaceuticalsCo.,Ltd. | SubsidiaryofFosunPharm |
| HunanDongtingPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Companyname
| Companyname | Relatedpartyrelationships |
| SuzhouEryePharmaceuticalLimitedCompany | SubsidiaryofFosunPharm |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | SubsidiaryofFosunPharm |
| JiangxiEryeMedicineMarketingCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiCompoundTechnologyMedicalDevicesCo.,Ltd. | SubsidiaryofFosunPharm |
| FoshanChanchengDistrictCentralHospital | SubsidiaryofFosunPharm |
| FoshanChanyixingMedicineDevelopmentCoLtd. | SubsidiaryofFosunPharm |
| FoshanChanchengPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShenzhenQiandaMedicalBeautyClinic | SubsidiaryofFosunPharm |
| ShenzhenHengShengHosital | SubsidiaryofFosunPharm |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | SubsidiaryofMainLuckPharmaceutical |
| LinyiMedicalGroupCo.,Ltd. | Non-controllinginterestofasubsidiary |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HenanWanxitangPharmacyCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HeyuanMairuiTradingCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ShenyangPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ZhangZhenfang | Non-controllinginterestofasubsidiary |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| LerentangInvestmentGroupCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ShenzhenJiufengInvestmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HunanMinshengtangInvestmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| TaishanQunkangPharmacyCo.,Ltd. | Non-controllinginterestofasubsidiary |
| GuHaiqun | Non-controllinginterestofasubsidiary |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HangzhouXihuBusinessGroupCorporation | Non-controllinginterestofasubsidiary |
| NanjingYuanguangTradingCo.,Ltd. | Controlledbynon-controllinginterestofasubsidiary |
| TaishanXiangranhuiTradeCo.,Ltd | Controlledbynon-controllinginterestofasubsidiary |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | Controlledbynon-controllinginterestofasubsidiary |
| GuJinhua | Familymemberofthenon-controllingshareholderofasubsidiary |
| WangYang | Controllerofnon-controllinginterestofasubsidiary |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties
(1)Relatedpartytransactions–goodsandservices
Purchaseofgoodsandreceivingofservicesfromrelatedparties
Relatedparty
| Relatedparty | Typeoftransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | Purchaseofgoods | 583,923,608.63 | 515,167,083.81 |
| ChinaNationalMedicinesCo.,Ltd. | Purchaseofgoods | 263,718,638.49 | 237,636,101.58 |
| SinopharmHoldingShanxiCo.,Ltd. | Purchaseofgoods | 165,125,264.60 | 156,466,334.83 |
| SinopharmHoldingShanxiCo.,Ltd. | Purchaseofgoods | 117,012,541.61 | 83,517,976.15 |
| SinopharmGroup | Purchaseofgoods | 92,577,206.95 | 95,150,353.69 |
| JiangsuWanbangPharmacyMarketingCo.,Ltd. | Purchaseofgoods | 84,007,944.24 | 33,623,739.18 |
| SinopharmHoldingShenyangCo.,Ltd. | Purchaseofgoods | 63,745,181.47 | 63,689,297.73 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | Purchaseofgoods | 58,690,396.26 | 79,259,083.01 |
| LanzhouBiotechnologyDevelopmentCo.,Ltd. | Purchaseofgoods | 55,500,000.00 | - |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | Purchaseofgoods | 54,227,928.18 | 90,145,795.30 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | Purchaseofgoods | 46,674,234.45 | 39,872,567.55 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | Purchaseofgoods | 45,672,377.13 | 127,271,627.94 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | Purchaseofgoods | 34,523,083.38 | 18,984,953.29 |
| SinopharmHoldingLunanCo.,Ltd. | Purchaseofgoods | 32,561,603.45 | 39,298,409.81 |
| SinopharmHoldingYangzhouCo.,Ltd. | Purchaseofgoods | 29,671,574.81 | 23,005,232.97 |
| JinzhouAoHongPharmaceuticalsCo.,Ltd. | Purchaseofgoods | 28,182,818.68 | 23,749,213.17 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | Purchaseofgoods | 27,810,842.74 | 21,508,305.23 |
| TibetYaoyouMedicinesCo.,Ltd. | Purchaseofgoods | 22,100,470.84 | 2,761,512.07 |
| SinopharmHoldingBeijingCo.,Ltd. | Purchaseofgoods | 20,533,829.97 | 23,822,442.41 |
| ShenzhenMainLuckPharmaceuticalCo.,Ltd. | Purchaseofgoods | 19,919,483.19 | 14,173,934.35 |
| WinteamPharmaceuticalGroupLtd. | Purchaseofgoods | 19,827,909.28 | 15,331,219.12 |
| JiangxiEryeMedicineMarketingCo.,Ltd. | Purchaseofgoods | 17,959,707.56 | - |
| SinopharmHoldingFujianCo.,Ltd. | Purchaseofgoods | 16,041,870.46 | 9,171,420.33 |
| SinopharmHoldingLerentangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 15,458,862.78 | 16,967,826.05 |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Purchaseofgoods | 14,856,080.60 | 5,519,530.03 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingPingdingshanCo.,Ltd. | Purchaseofgoods | 14,429,720.75 | 14,446,097.55 | |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Purchaseofgoods | 14,255,875.26 | 4,670,243.13 | |
| ChengduRongshengPharmacyCo.,Ltd. | Purchaseofgoods | 13,746,664.10 | 8,958,139.00 | |
| SinopharmHoldingJiangsuCo.,Ltd. | Purchaseofgoods | 12,867,682.99 | 12,276,533.11 | |
| SinopharmHoldingHenanCo.,Ltd. | Purchaseofgoods | 12,814,208.20 | 6,575,293.46 | |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | Purchaseofgoods | 10,936,219.06 | 10,428,796.93 | |
| SinopharmHoldingXiamenCo.,Ltd. | Purchaseofgoods | 10,273,616.32 | 9,246,131.91 | |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | Purchaseofgoods | 10,193,725.00 | 3,614,733.64 | |
| SinopharmHoldingHubeiCo.,Ltd. | Purchaseofgoods | 9,071,305.78 | - | |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | Purchaseofgoods | 8,677,802.26 | 10,465,965.70 | |
| SinopharmHoldingShandongCo.,Ltd. | Purchaseofgoods | 7,306,060.58 | 718,163.95 | |
| SinopharmHoldingNingxiaCo.,Ltd. | Purchaseofgoods | 7,213,084.95 | 6,113,483.50 | |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | Purchaseofgoods | 7,161,067.43 | 3,676,515.83 | |
| YichangHumanwellPharmaceuticalCo.,Ltd. | Purchaseofgoods | 6,711,635.43 | 4,513,583.78 | |
| SinopharmHoldingChangzhouCo.,Ltd. | Purchaseofgoods | 6,705,005.60 | 2,900,395.11 | |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | Purchaseofgoods | 6,697,508.52 | 241,236.29 | |
| ShanghaiModernPharmaceuticalCo.,Ltd.(ModernPharmaceutical) | Purchaseofgoods | 6,577,712.26 | 142,521.39 | |
| SinopharmYixinPharmaceuticalCo.,Ltd. | Purchaseofgoods | 6,463,202.79 | - | |
| SinopharmHoldingHunanCo.,Ltd. | Purchaseofgoods | 5,496,202.17 | 22,435,971.65 | |
| SichuanHexinPharmaceuticalCo.,Ltd. | Purchaseofgoods | 5,339,761.19 | 1,094,458.11 | |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 5,189,668.17 | 2,003,690.59 | |
| SuzhouEryePharmaceuticalLimitedCompany | Purchaseofgoods | 4,729,210.71 | 9,554,764.03 | |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | Purchaseofgoods | 4,541,480.00 | - | |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 4,521,905.90 | 5,794,907.91 | |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | Purchaseofgoods | 4,369,021.12 | - | |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | Purchaseofgoods | 3,824,818.27 | 4,530,675.45 | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | Purchaseofgoods | 3,219,200.90 | 3,735,052.72 | |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | Purchaseofgoods | 3,158,018.27 | 1,574,958.10 | |
| SinopharmHoldingJinanCo.,Ltd. | Purchaseofgoods | 3,031,490.28 | 3,621,583.69 | |
| SinopharmHoldingTongliaoCo.,Ltd. | Purchaseofgoods | 2,906,482.17 | 584,726.70 | |
| SinopharmHoldingFuzhouCo.,Ltd. | Purchaseofgoods | 2,676,398.89 | 4,703,935.11 | |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | Purchaseofgoods | 2,652,028.86 | 2,298,554.23 | |
| SinopharmHoldingHeilongjiangCo.,Ltd. | Purchaseofgoods | 2,603,286.79 | - | |
| ShanghaiShangshengBiologicalProductsCo.,Ltd. | Purchaseofgoods | 2,478,155.34 | - | |
| SinopharmHoldingWuxiCo.,Ltd. | Purchaseofgoods | 2,456,981.90 | 2,453,393.36 | |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | Purchaseofgoods | 2,326,076.00 | 1,889,376.44 | |
| SinopharmholdingsBeijinghuahongco.,Ltd | Purchaseofgoods | 2,143,025.16 | 3,550,261.18 | |
| SinopharmHoldingJinzhouCo.,Ltd. | Purchaseofgoods | 2,050,823.42 | 2,249,516.98 | |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,967,905.09 | 330,363.62 | |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,947,122.98 | 1,536,282.82 | |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,673,805.68 | 1,799,439.15 | |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,672,471.40 | 2,240,460.54 | |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | Purchaseofgoods | 1,647,132.50 | - | |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,634,592.42 | 1,451,522.48 | |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | Purchaseofgoods | 1,634,371.49 | 615,989.84 | |
| ShantouJinshiPowderInjectionCo.,Ltd. | Purchaseofgoods | 1,575,114.81 | 330,119.93 | |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,396,321.58 | 31,965.52 | |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,395,942.72 | 1,058,670.33 | |
| SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,374,403.26 | 80,410.58 | |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | Purchaseofgoods | 1,237,603.17 | 188,275.39 | |
| HunanDongtingPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,221,714.73 | 340,441.92 | |
| SinopharmHoldingYanchengCo.,Ltd. | Purchaseofgoods | 1,174,557.52 | 1,402,672.48 | |
| SinopharmHoldingChangshaCo.,Ltd. | Purchaseofgoods | 1,166,442.94 | 414,897.11 | |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 1,115,619.67 | 921,863.31 | |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | Purchaseofgoods | 1,047,564.70 | - | |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | Purchaseofgoods | 942,169.90 | 153,389.66 | |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | Purchaseofgoods | 904,775.75 | 400,421.76 | |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | Purchaseofgoods | 853,055.98 | 200,544.82 | |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | Purchaseofgoods | 825,452.16 | 121,618.26 | |
| SinopharmHoldingSuzhouCo.,Ltd. | Purchaseofgoods | 821,818.78 | 6,247,553.79 | |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | Purchaseofgoods | 821,518.40 | - | |
| SinopharmHoldingLianyungangCo.,Ltd. | Purchaseofgoods | 815,620.38 | 153,111.27 | |
| SinopharmHoldingHulunBuirCo.,Ltd. | Purchaseofgoods | 813,318.59 | 713,341.49 | |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | Purchaseofgoods | 778,815.71 | 584,223.16 | |
| SinopharmHoldingDalianCo.,Ltd. | Purchaseofgoods | 708,136.87 | 769,041.46 | |
| SinopharmHoldingTianjinCo.,Ltd. | Purchaseofgoods | 706,163.71 | 1,598,345.37 | |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | Purchaseofgoods | 627,257.64 | 63,648.72 | |
| SinopharmHoldingPutianCo.,Ltd. | Purchaseofgoods | 602,182.39 | 895,532.89 | |
| SinopharmHoldingAnhuiCo.,Ltd. | Purchaseofgoods | 558,299.15 | 539,726.50 | |
| SinopharmHoldingHainanCo.,Ltd. | Purchaseofgoods | 556,396.59 | 97,450.60 | |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | Purchaseofgoods | 551,162.81 | 763,625.20 | |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 537,444.48 | (13,269.30) | |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | Purchaseofgoods | 536,000.00 | - | |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | Purchaseofgoods | 513,712.42 | 2,016,321.47 | |
| SinopharmHoldingQuanzhouCo.,Ltd. | Purchaseofgoods | 509,096.37 | 509,662.25 | |
| GuilinSouthpharmaceuticalCo.,Ltd. | Purchaseofgoods | 491,705.68 | - | |
| ShanghaiTransfusionTechnologyCo.,Ltd. | Purchaseofgoods | 444,825.76 | - | |
| SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd. | Purchaseofgoods | 434,284.50 | - | |
| SinopharmHoldingZhejiangCo.,Ltd. | Purchaseofgoods | 383,036.87 | 289,516.54 | |
| WuhanZhonglianPharmaceuticalGroupCo.,Ltd. | Purchaseofgoods | 357,980.82 | 435,887.39 | |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| FujianChentianJinlingPharmaceuticalCo.,Ltd. | Purchaseofgoods | 328,557.99 | - | |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | Purchaseofgoods | 257,629.73 | 109,039.96 | |
| SinopharmWuhanbloodproductsCo.,Ltd. | Purchaseofgoods | 248,000.00 | - | |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | Purchaseofgoods | 189,064.65 | - | |
| SinopharmHoldingDalianHechengCo.,Ltd. | Purchaseofgoods | 175,327.42 | 262,027.99 | |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | Purchaseofgoods | 166,268.35 | 444,000.00 | |
| FoshanFengliaoxingPharmaceuticalCo.,Ltd. | Purchaseofgoods | 160,792.59 | 2,015,702.90 | |
| SinopharmHolding(Hubei)BasePharmaceuticalCo.,Ltd. | Purchaseofgoods | 152,076.28 | - | |
| SinopharmHoldingDezhouCo.,Ltd. | Purchaseofgoods | 148,796.05 | 228,731.52 | |
| SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd. | Purchaseofgoods | 142,539.15 | - | |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | Purchaseofgoods | 133,968.48 | - | |
| SinopharmHoldingBayannaoerCo.,Ltd. | Purchaseofgoods | 120,003.15 | - | |
| ChinaMedicalEquipmentShandongCo.,Ltd. | Purchaseofgoods | 116,013.65 | - | |
| SinopharmGroupShanxiCo.,Ltd. | Purchaseofgoods | 111,864.77 | 87,596.90 | |
| FoshanDezhongPharmaceuticalCo.,Ltd. | Purchaseofgoods | 95,965.53 | - | |
| SinopharmLiaoningMedicalEquipmentCo.,Ltd. | Purchaseofgoods | 90,783.71 | - | |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | Purchaseofgoods | 73,542.96 | 12.82 | |
| SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd. | Purchaseofgoods | 40,707.96 | - | |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | Purchaseofgoods | 39,203.47 | 58,952.78 | |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | Purchaseofgoods | 35,353.29 | 24,295.86 | |
| SinopharmHoldingTaizhouCo.,Ltd. | Purchaseofgoods | 34,438.88 | 73,304.23 | |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | Purchaseofgoods | 29,090.91 | 49,297.30 | |
| SinopharmHoldingRizhaoCo.,Ltd. | Purchaseofgoods | 19,834.99 | 586,905.03 | |
| SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd. | Purchaseofgoods | 19,401.89 | 27,310.34 | |
| GuoyaoLerentangHebeiMedicalDeviceSupplyChainManagementCo.,Ltd. | Purchaseofgoods | 17,131.04 | - | |
| SinopharmHoldingUlanqabCo.,Ltd. | Purchaseofgoods | 17,027.43 | 308,191.79 | |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | Purchaseofgoods | 14,185.41 | - | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingJilinCo.,Ltd. | Purchaseofgoods | 13,152.13 | - | |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Purchaseofgoods | 10,445.10 | - | |
| SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd. | Purchaseofgoods | 10,137.93 | - | |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | Purchaseofgoods | 8,408.74 | 11,481.46 | |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | Purchaseofgoods | 6,891.48 | 335,484.62 | |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | Purchaseofgoods | - | 52,860,000.00 | |
| ChinaNationalPharmaceuticalForeignTradeCorporation | Purchaseofgoods | - | 13,645,110.09 | |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | Purchaseofgoods | - | 7,410,730.23 | |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | Purchaseofgoods | - | 995,510.64 | |
| SinopharmLerentangQinhuangdaoMedicineCo.,Ltd. | Purchaseofgoods | - | 193,277.45 | |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Purchaseofgoods | - | 173,484.94 | |
| SinopharmHoldingGuizhouCo.,Ltd. | Purchaseofgoods | - | 73,729.75 | |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | Purchaseofgoods | - | 33,895.38 | |
| SinopharmLerentangTangshanMedicineCo.,Ltd. | Purchaseofgoods | - | 20,598.94 | |
| SinopharmHoldingNanpingNewforceCo.,Ltd. | Purchaseofgoods | - | 15,315.32 | |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | Purchaseofgoods | - | 9,564.95 | |
| SinopharmHebeiMedicalInstrumentCo.,Ltd. | Purchaseofgoods | - | 6,533.84 | |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | Purchaseofgoods | - | 2,649.79 | |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | Purchaseofgoods | - | 1,770.86 | |
| SinopharmHoldingJinhuaCo.,Ltd. | Purchaseofgoods | - | 38.80 | |
| SinopharmHoldingOrdosCo.,Ltd. | Purchaseofgoods | - | (10,667.01) | |
| SinopharmHoldingYongzhouCo.,Ltd. | Purchaseofgoods | (49.36) | 38,141.67 | |
| SinopharmProspectDentech(Beijing)Co.,Ltd. | Purchaseofgoods | (63.80) | 4,073.48 | |
| SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd. | Purchaseofgoods | (9,500.00) | - | |
| ShandongLuYaPharmaceuticalCo.,Ltd. | Purchaseofgoods | (23,551.03) | 2,909,280.05 | |
| HuayiPharmaceuticalCo.,Ltd. | Purchaseofgoods | (191,940.52) | 695,732.52 | |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Storageandtransport | 7,275,965.45 | 6,666,668.71 | |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Purchaseofgoodsandreceivingofservicesfromrelatedparties | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHealthOnlineCo.,Ltd. | Consultingservicefee | 6,298,404.97 | 6,085,895.22 | |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | Consultingservicefee | 1,229,716.93 | 1,263,962.22 | |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | Informationsystemaccessfee | 142,764.15 | 98,113.21 | |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | Others | 109,458.10 | - | |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | Storageandtransportcost | 54,651.59 | 44,030.65 | |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | Informationsystemaccessfee | - | 7,075.47 | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices
Relatedparty
| Relatedparty | Typeoftransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| SinopharmGroup | Saleofgoods | 113,329,103.30 | 54,514,170.65 |
| FoshanChanchengPharmaceuticalCo.,Ltd. | Saleofgoods | 59,004,606.02 | 42,375,781.14 |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | Saleofgoods | 55,645,701.04 | 49,727,338.63 |
| SinopharmHoldingHainanCo.,Ltd. | Saleofgoods | 48,570,645.00 | 29,338,160.25 |
| SinopharmHoldingHainanHongyiCo.,Ltd. | Saleofgoods | 17,357,873.16 | 24,127,524.50 |
| SinopharmHoldingWenzhouCo.,Ltd. | Saleofgoods | 14,754,017.76 | 10,830,194.79 |
| SinopharmholdingsBeijinghuahongco.,Ltd | Saleofgoods | 13,727,246.49 | 4,816,641.92 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | Saleofgoods | 12,079,800.79 | 7,489,471.75 |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | Saleofgoods | 12,022,683.32 | 8,970,804.72 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Saleofgoods | 11,241,528.41 | 9,738,902.57 |
| SinopharmHoldingBeijingCo.,Ltd. | Saleofgoods | 10,806,898.05 | 5,770,691.44 |
| ShenzhenHengShengHosital | Saleofgoods | 10,482,252.70 | 8,215,885.93 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | Saleofgoods | 9,207,801.66 | 7,728,482.84 |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | Saleofgoods | 9,123,984.75 | 10,524,551.98 |
| SinopharmHoldingHenanCo.,Ltd. | Saleofgoods | 8,408,084.97 | 8,736,054.45 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | Saleofgoods | 7,749,468.18 | 9,061,104.38 |
| SinopharmHoldingNantongCo.,Ltd. | Saleofgoods | 7,649,412.43 | 8,717,338.95 |
| SinopharmHoldingShandongCo.,Ltd. | Saleofgoods | 7,547,654.37 | 4,577,546.05 |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | Saleofgoods | 7,346,892.05 | 6,837,559.00 |
| FoshanChanchengDistrictCentralHospital | Saleofgoods | 5,456,346.95 | 4,504,644.96 |
| SinopharmHoldingHubeiCo.,Ltd. | Saleofgoods | 5,366,299.13 | 3,772,162.27 |
| SinopharmHoldingShanxiCo.,Ltd. | Saleofgoods | 5,246,365.87 | 917,123.69 |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | Saleofgoods | 4,369,980.09 | 673,847.93 |
| SinopharmHoldingYangzhouCo.,Ltd. | Saleofgoods | 4,293,371.83 | 5,144,530.81 |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | Saleofgoods | 4,068,584.00 | 1,223,626.19 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | Saleofgoods | 3,423,834.39 | 17,376,808.71 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Saleofgoodsandrenderingofservices | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingYunnanCo.,Ltd. | Saleofgoods | 3,291,886.51 | 5,713,012.18 | |
| FoshanChanyixingMedicineDevelopmentCoLtd. | Saleofgoods | 3,252,324.63 | 1,450,198.02 | |
| SinopharmHoldingAnhuiCo.,Ltd. | Saleofgoods | 2,691,014.38 | 1,168,187.29 | |
| SinopharmHoldingJinzhouCo.,Ltd. | Saleofgoods | 2,509,334.67 | - | |
| SinopharmHoldingXuzhouCo.,Ltd. | Saleofgoods | 2,496,791.90 | - | |
| SinopharmHoldingTianjinCo.,Ltd. | Saleofgoods | 2,043,046.86 | 1,029,758.40 | |
| ChinaNationalMedicinesCo.,Ltd. | Saleofgoods | 1,932,350.56 | 1,740,716.75 | |
| SinopharmHoldingShanxiCo.,Ltd. | Saleofgoods | 1,927,565.82 | 2,577,305.96 | |
| SinopharmHoldingJilinCo.,Ltd. | Saleofgoods | 1,861,781.97 | 1,172,196.27 | |
| SinopharmHoldingDalianCo.,Ltd. | Saleofgoods | 1,833,913.00 | 1,263,047.36 | |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | Saleofgoods | 1,828,562.25 | 4,409,528.78 | |
| SinopharmHoldingFujianCo.,Ltd. | Saleofgoods | 1,731,691.96 | 979,220.98 | |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | Saleofgoods | 1,580,662.42 | 1,006,172.43 | |
| SinopharmHoldingHunanCo.,Ltd. | Saleofgoods | 1,476,158.08 | 1,308,950.82 | |
| SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd. | Saleofgoods | 1,436,139.10 | - | |
| ShanghaiLiyiDrugStoreCo.,Ltd | Saleofgoods | 1,432,059.22 | - | |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | Saleofgoods | 1,283,881.89 | - | |
| YuxiSinopharmMedicineCo.,Ltd. | Saleofgoods | 956,668.77 | 625,927.21 | |
| SinopharmHoldingNingxiaCo.,Ltd. | Saleofgoods | 772,293.60 | 240,539.93 | |
| SinopharmHoldingDalianHechengCo.,Ltd. | Saleofgoods | 743,390.17 | 301,982.46 | |
| SinopharmHoldingShenyangCo.,Ltd. | Saleofgoods | 608,363.96 | 103,846.57 | |
| SinopharmHoldingGansuCo.,Ltd. | Saleofgoods | 505,887.62 | 1,353,030.00 | |
| SinopharmHoldingWuxiCo.,Ltd. | Saleofgoods | 484,790.17 | 349,203.27 | |
| ShanghaiGuodaLingyunPharmacyCo.,Ltd. | Saleofgoods | 425,714.65 | 540,476.78 | |
| SinopharmHoldingWuhuCo.,Ltd. | Saleofgoods | 419,826.51 | 127,195.59 | |
| SinopharmHoldingJiaozuoCo.,Ltd. | Saleofgoods | 406,784.27 | - | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Saleofgoodsandrenderingofservices | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingYanchengCo.,Ltd. | Saleofgoods | 382,851.04 | - | |
| SinopharmHoldingHongheCo.,Ltd. | Saleofgoods | 377,186.11 | 9,595.25 | |
| SinopharmHoldingTianjinNorthMedicineCo.,Ltd. | Saleofgoods | 363,748.93 | 58,775.86 | |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | Saleofgoods | 326,327.82 | 239,130.68 | |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | Saleofgoods | 296,825.53 | - | |
| SinopharmGroupShanxiCo.,Ltd. | Saleofgoods | 266,895.84 | 486,510.78 | |
| SinopharmHoldingChengduCo.,Ltd. | Saleofgoods | 252,754.20 | 215,685.18 | |
| SinopharmHoldingQinghaiCo.,Ltd. | Saleofgoods | 250,674.21 | 168,653.68 | |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | Saleofgoods | 225,250.43 | 448,887.64 | |
| SinopharmHoldingTongrenCo.,Ltd. | Saleofgoods | 197,968.78 | 21,011.20 | |
| SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd. | Saleofgoods | 195,295.22 | - | |
| NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd. | Saleofgoods | 173,403.11 | - | |
| SinopharmHoldingGuizhouCo.,Ltd. | Saleofgoods | 158,213.27 | 1,042,466.52 | |
| SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd. | Saleofgoods | 155,771.69 | - | |
| SinopharmHoldingZunyiCo.,Ltd. | Saleofgoods | 146,542.78 | 35,054.94 | |
| SinopharmHoldingTaizhouCo.,Ltd. | Saleofgoods | 141,236.61 | - | |
| ShenzhenQiandaMedicalBeautyClinic | Saleofgoods | 140,970.86 | - | |
| SinopharmHoldingChongqingCo.,Ltd. | Saleofgoods | 138,748.70 | 145,147.69 | |
| SinopharmHoldingHubeiHongyuanCo.,Ltd. | Saleofgoods | 132,556.02 | 97,162.40 | |
| SinopharmHoldingFuzhouCo.,Ltd. | Saleofgoods | 131,753.26 | 6,927.14 | |
| SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd. | Saleofgoods | 128,687.69 | - | |
| SinopharmHoldingJiangxiCo.,Ltd. | Saleofgoods | 123,135.25 | 371,671.87 | |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | Saleofgoods | 114,833.43 | 12,712.58 | |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | Saleofgoods | 101,588.59 | 16,804.60 | |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | Saleofgoods | 86,668.69 | 175,352.41 | |
| SinopharmHoldingJiangsuCo.,Ltd. | Saleofgoods | 76,013.68 | - | |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | Saleofgoods | 73,203.54 | - | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Saleofgoodsandrenderingofservices | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd. | Saleofgoods | 70,073.94 | 133,404.19 | |
| SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd. | Saleofgoods | 66,013.12 | - | |
| ShanghaiCompoundTechnologyMedicalDevicesCo.,Ltd. | Saleofgoods | 59,482.76 | - | |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | Saleofgoods | 58,330.19 | - | |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | Saleofgoods | 55,763.79 | - | |
| SinopharmHoldingChangzhouCo.,Ltd. | Saleofgoods | 50,185.70 | 435,840.01 | |
| SinopharmHoldingUlanqabCo.,Ltd. | Saleofgoods | 47,434.77 | 175,775.17 | |
| SinopharmHoldingLongyanCo.,Ltd. | Saleofgoods | 44,963.97 | 58,172.99 | |
| SinopharmHoldingChuxiongCo.,Ltd. | Saleofgoods | 41,712.99 | - | |
| SinopharmHoldingJilinChainStoreCo.,Ltd. | Saleofgoods | 38,234.48 | 91,435.98 | |
| SinopharmHoldingDeyangCo.,Ltd. | Saleofgoods | 36,771.21 | - | |
| DongyuanaccordpharmaceuticalchainCo.,Ltd. | Saleofgoods | 30,868.27 | 39,393.65 | |
| SinopharmHoldingAnshunCo.,Ltd. | Saleofgoods | 21,688.95 | - | |
| SinopharmNanpingMedicalInstrumentCo.,Ltd. | Saleofgoods | 19,993.91 | - | |
| SinopharmHoldingNingdeCo.,Ltd. | Saleofgoods | 19,818.67 | 23,864.90 | |
| SinopharmHoldingLiaochengCo.,Ltd. | Saleofgoods | 15,779.79 | 15,596.82 | |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Saleofgoods | 14,949.89 | 7,617.49 | |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | Saleofgoods | 13,939.15 | 9,119.70 | |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | Saleofgoods | 11,204.59 | - | |
| SinopharmHoldingSipingCo.,Ltd. | Saleofgoods | 9,998.28 | 26,548.13 | |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | Saleofgoods | 9,884.46 | 19,240.32 | |
| ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd. | Saleofgoods | 6,320.71 | - | |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | Saleofgoods | 6,233.90 | - | |
| SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd. | Saleofgoods | 3,590.16 | - | |
| GuoyaoLerentangShijiazhuangMedicalManagementCo.,Ltd. | Saleofgoods | 2,663.79 | - | |
| SinopharmHoldingZhejiangCo.,Ltd. | Saleofgoods | - | 921,282.05 | |
| HubeiPharmaceuticalGroupCo.,Ltd. | Saleofgoods | - | 853,130.68 | |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Saleofgoodsandrenderingofservices | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
| SinopharmHoldingHeilongjiangCo.,Ltd. | Saleofgoods | - | 324,789.98 | |
| SinopharmHoldingYongzhouCo.,Ltd. | Saleofgoods | - | 203,544.77 | |
| SinopharmHoldingHuaianCo.,Ltd. | Saleofgoods | - | 128,653.00 | |
| SinopharmHoldingSuzhouCo.,Ltd. | Saleofgoods | - | 103,840.63 | |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Saleofgoods | - | 79,279.28 | |
| SinopharmHoldingLu'anCo.,Ltd. | Saleofgoods | - | 66,987.18 | |
| SinopharmHoldingNanchangChainStoreCo.,Ltd. | Saleofgoods | - | 54,017.59 | |
| SinopharmHoldingXinxiangCo.,Ltd. | Saleofgoods | - | 34,164.62 | |
| SinopharmHoldingHuangshiCo.,Ltd. | Saleofgoods | - | 34,025.78 | |
| SinopharmHoldingJiningCo.,Ltd. | Saleofgoods | - | 19,035.54 | |
| FujianSinopharmMedicalInstrumentCo.,Ltd. | Saleofgoods | - | 13,988.00 | |
| SinopharmLerentangBaodingMedicineCo.,Ltd. | Saleofgoods | - | 12,991.45 | |
| SinopharmLerentangHengshuiMedicineCo.,Ltd. | Saleofgoods | - | 12,108.38 | |
| SinopharmHoldingHulunBuirCo.,Ltd. | Saleofgoods | - | 4,570.00 | |
| SinopharmHoldingPutianCo.,Ltd. | Saleofgoods | (33,809.91) | 64,610.68 | |
| SinopharmHoldingQuanzhouCo.,Ltd. | Saleofgoods | (87,055.63) | - | |
| ChinaNationalMedicinesCo.,Ltd. | Transportandstorageincome | 4,430,727.40 | 3,580,698.30 | |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Transportandstorageincome | 401,376.93 | 294,804.62 | |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Mealfee | 308,882.00 | 294,180.00 | |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Transportandstorageincome | 123,995.03 | 122,242.00 | |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | Transportandstorageincome | 82,001.72 | - | |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | Consultingserviceincome | 2,792.45 | - | |
| SinopharmHoldingShanxiCo.,Ltd. | Consultingserviceincome | 1,688.12 | 9,433.96 | |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | Consultingserviceincome | - | 8,285.71 | |
| WinteamPharmaceuticalGroupLtd. | Consultingserviceincome | - | 2,023.58 | |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | Otherincome | - | 1,132.08 | |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) | ||||
| 5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued) | ||||
| (1)Relatedpartytransactions–goodsandservices(Continued) | ||||
| Saleofgoodsandrenderingofservices | ||||
| Relatedparty | Typeofransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(2)Relatedpartytransactions-leases
(a)Asthelessor
(a)AsthelessorTypeofassetsunderleases
| Typeofassetsunderleases | IncomefromleasesForthesixmonthsended30June2019 | IncomefromleasesForthesixmonthsended30June2018 |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Building | 957,142.86 | 351,428.58 |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd. | Building | 285,714.30 | 285,714.30 |
| ChinaNationalMedicinesCo.,Ltd. | Building | 24,000.00 | 45,714.29 |
| (b)Asthelessee | |||
| Typeofassetsunderleases | ExpensefromleasesForthesixmonthsended30June2019 | ExpensefromleasesForthesixmonthsended30June2018 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Building | 6,670,660.92 | 5,461,904.76 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Equipment | 3,750,000.00 | 3,750,000.00 |
| SinopharmGroupShanghaiCo.,Ltd. | Building | 3,721,698.57 | 3,790,426.48 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Building | 3,539,999.98 | 3,539,999.98 |
| LerentangInvestmentGroupCo.,Ltd. | Building | 3,354,162.22 | 2,277,892.99 |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | Building | 2,405,696.37 | 1,277,732.57 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | Building | 2,234,982.50 | 3,914,124.76 |
| SinopharmHoldingYangzhouCo.,Ltd. | Building | 1,902,091.52 | 1,862,857.14 |
| HunanMinshengtangInvestmentCo.,Ltd. | Building | 1,838,716.70 | 2,027,673.99 |
| LinyiMedicalGroupCo.,Ltd. | Building | 1,482,764.04 | 2,036,376.45 |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | Building | 1,088,752.31 | 1,192,864.11 |
| NanjingYuanguangTradingCo.,Ltd. | Building | 855,468.84 | 866,794.89 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | Building | 476,713.98 | 470,161.86 |
| TaishanXiangranhuiTradeCo.,Ltd | Building | 456,054.17 | 451,963.88 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | Building | 277,303.54 | 184,253.18 |
| SinopharmGroup | Building | 267,553.06 | 259,915.02 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
WangYang
| WangYang | Building | 262,857.12 | 262,857.12 |
| SinopharmHoldingBeijingCo.,Ltd. | Building | 260,870.74 | 235,714.29 |
| ShenyangPharmaceuticalCo.,Ltd. | Building | 253,564.15 | 3,548,219.75 |
| ZhangZhenfang | Building | 214,062.49 | 402,499.98 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(2)Relatedpartytransactions–leases(Continued)
(b)Asthelessee(continued)
(b)Asthelessee(continued)Typeofassetsunderleases
| Typeofassetsunderleases | ExpensefromleasesForthesixmonthsended30June2019 | ExpensefromleasesForthesixmonthsended30June2018 |
| GuJinhua | Building | 207,084.48 | 178,800.00 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | Building | 173,068.27 | 173,523.81 |
| HangzhouXihuBusinessGroupCorporation | Building | 145,986.38 | 132,823.81 |
| ChinaNationalMedicinesCo.,Ltd. | Building | 145,865.91 | 153,750.00 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | Building | 136,369.86 | 130,208.30 |
| GuHaiqun | Building | 108,277.61 | 0.00 |
| ShenzhenJiufengInvestmentCo.,Ltd. | Building | 100,414.19 | 89,260.15 |
| TaishanQunkangPharmacyCo.,Ltd. | Building | 70,864.95 | 74,170.32 |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | Building | 47,990.56 | 236,051.50 |
| SinopharmHoldingFujianCo.,Ltd. | Building | 6,571.39 | 6,571.38 |
| SinopharmHoldingShanxiCo.,Ltd. | Building | 0.00 | 234,017.16 |
| XinjiangBaitongPropertyServiceCo.,Ltd. | Building | 0.00 | 44,581.16 |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Park | 0.00 | 35,428.57 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(3)Relatedpartytransactions–Financing
Relatedparty
| Relatedparty | Amount | Inception | Maturity | Note |
| Borrowedfrom | ||||
| GroupFinancialCo. | 43,428,873.45 | 22April2019 | 31May2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 40,197,120.84 | 17April2019 | 17July2019 | Short-termborrowings |
| GroupFinancialCo. | 38,384,946.67 | 24January2019 | 28February2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 37,311,327.27 | 22May2019 | 22August2019 | Short-termborrowings |
| GroupFinancialCo. | 33,815,106.08 | 18March2019 | 30April2019 | Discountoncommercialacceptancenotes |
| CNPGC | 31,600,000.00 | 24May2017 | 24May2020 | Long-termborrowings |
| GroupFinancialCo. | 27,852,641.75 | 30January2019 | 30April2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 27,408,812.83 | 21May2019 | 30June2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 23,148,716.55 | 18March2019 | 25May2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 21,601,820.90 | 18March2019 | 31May2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 20,902,069.23 | 30January2019 | 28March2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 18,680,669.14 | 21May2019 | 31July2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 18,309,493.19 | 30January2019 | 29March2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 14,997,301.99 | 30January2019 | 09May2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 14,442,689.98 | 30January2019 | 25March2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 11,932,011.37 | 30January2019 | 26April2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 9,827,139.59 | 22April2019 | 09August2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 9,776,155.18 | 22April2019 | 25June2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 2,227,866.60 | 30January2019 | 28June2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 2,115,440.26 | 22April2019 | 26September2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 2,037,126.50 | 30January2019 | 28May2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 1,628,019.46 | 18March2019 | 27August2019 | Discountoncommercial |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Relatedparty
| Relatedparty | Amount | Inception | Maturity | Note |
| Borrowedfrom | ||||
| acceptancenotes | ||||
| GroupFinancialCo. | 1,188,450.22 | 30January2019 | 26June2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 859,454.60 | 21May2019 | 26August2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 798,997.80 | 22April2019 | 26July2019 | Discountoncommercialacceptancenotes |
| GroupFinancialCo. | 729,054.60 | 18March2019 | 26June2019 | Discountoncommercialacceptancenotes |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(4)Relatedpartyassettransfer
Typeoftransaction
| Typeoftransaction | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | Purchaseofconstructioninprogress | - | 21,794.87 |
(5)Otherrelatedpartytransactions
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| (a)Remunerationforkeymanagementpersonnel | 3,843,750.00 | 2,981,250.00 |
| (b)Interestexpense | |||
| Relatedparty | Category | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| GroupFinancialCo. | Paymentofnotesdiscountinterest | 2,615,234.17 | 3,411,652.84 |
| ChinaNationalPharmaceuticalGroupCorporation | Paymentofentrustedloaninterest | 641,469.02 | 641,469.02 |
| GroupFinancialCo. | Paymentofloaninterest | 473,516.87 | - |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | Paymentoffinancingleaseinterest | 177,850.56 | 623,402.17 |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | Paymentofnon-recoursereceivablefactoredinterestexpense | 63,750.00 | - |
| GuorunMedicalSupplyChainServices(Shanghai)Co.,Ltd. | Paymentofrelatedpartiesloaninterest | - | 1,778.67 |
| 3,971,820.62 | 4,678,302.70 |
| (c)Interestincome | |||
| Relatedparty | Category | Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Entrustedloaninterest | 1,669,601.71 | 1,549,650.99 |
| GroupFinancialCo. | Depositinterest | 145,659.27 | 387,479.46 |
| 1,815,260.98 | 1,937,130.45 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties
Accountsreceivable
| Accountsreceivable | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| FoshanChanchengPharmaceuticalCo.,Ltd. | 45,958,521.41 | 276,165.34 | 39,888,094.43 | 235,040.74 |
| SinopharmGroup | 40,401,102.06 | - | 32,263,115.51 | - |
| SinopharmHoldingHainanCo.,Ltd. | 9,869,915.19 | - | 6,607,589.69 | - |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | 9,772,467.43 | - | 11,966,548.05 | - |
| SinopharmHealthOnlineCo.,Ltd. | 7,991,221.08 | - | 6,543,624.21 | - |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 4,943,166.98 | - | - | - |
| SinopharmholdingsBeijinghuahongco.,Ltd | 4,491,263.20 | - | 4,009,562.41 | - |
| ShenzhenHengShengHosital | 4,350,627.94 | - | 2,674,948.35 | - |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 4,350,308.37 | - | 5,372,873.84 | - |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 4,175,729.23 | - | 3,839,268.45 | - |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 4,123,874.57 | - | 3,143,231.13 | - |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 4,092,864.80 | - | 3,986,543.21 | - |
| SinopharmHoldingBeijingCo.,Ltd. | 3,345,842.50 | - | 888,815.16 | - |
| SinopharmHoldingHainanHongyiCo.,Ltd. | 3,314,718.28 | - | 5,370,089.88 | - |
| FoshanChanchengDistrictCentralHospital | 3,160,081.13 | 44,928.58 | 2,440,447.52 | 12,753.61 |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | 2,539,969.75 | - | 986,526.05 | - |
| SinopharmHoldingHenanCo.,Ltd. | 2,447,128.74 | - | 1,036,327.62 | - |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 2,196,272.00 | - | 1,178,605.80 | - |
| SinopharmHoldingShandongCo.,Ltd. | 2,037,494.51 | - | 210,969.36 | - |
| FoshanChanyixingMedicineDevelopmentCoLtd. | 1,865,947.36 | 6,667.32 | 1,743,775.57 | 9,377.72 |
| SinopharmHoldingWenzhouCo.,Ltd. | 1,710,031.20 | - | 1,261,643.94 | - |
| ChinaNationalMedicinesCo.,Ltd. | 1,604,941.84 | - | 1,454,237.32 | - |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | 1,424,513.17 | - | 1,081,909.20 | - |
| SinopharmHoldingYangzhouCo.,Ltd. | 1,366,338.68 | - | 540,349.73 | - |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 1,348,428.86 | - | 884,486.53 | - |
| SinopharmHoldingXuzhouCo.,Ltd. | 1,272,626.48 | - | 34,941.30 | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Accountsreceivable
| Accountsreceivable | 30June2019 | 1January2019 | ||
| SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd. | 1,095,210.16 | - | - | - |
| SinopharmHoldingShanxiCo.,Ltd. | 1,044,424.48 | - | 1,028,660.04 | - |
| SinopharmHoldingYunnanCo.,Ltd. | 852,406.76 | - | 27,737.44 | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Accountsreceivable(Continued)
| Accountsreceivable(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmHoldingTianjinCo.,Ltd. | 736,401.04 | - | 200,407.20 | - |
| SinopharmHoldingJilinCo.,Ltd. | 638,937.96 | - | 1,499,742.50 | - |
| SinopharmHoldingNantongCo.,Ltd. | 637,245.24 | - | 66,541.32 | - |
| SinopharmHoldingFujianCo.,Ltd. | 602,589.12 | - | - | - |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 599,179.84 | - | 772,488.31 | - |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 596,543.86 | - | 164,566.12 | - |
| SinopharmHoldingAnhuiCo.,Ltd. | 583,647.00 | - | 221,425.72 | - |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 552,496.16 | - | 1,704,316.57 | - |
| SinopharmHoldingHunanCo.,Ltd. | 537,470.30 | - | 569,264.26 | - |
| SinopharmHoldingHubeiCo.,Ltd. | 457,991.94 | - | 68,314.16 | - |
| SinopharmHoldingShanxiCo.,Ltd. | 368,536.28 | - | 68,361.75 | - |
| YuxiSinopharmMedicineCo.,Ltd. | 365,065.92 | - | 182,532.96 | - |
| SinopharmHoldingDalianCo.,Ltd. | 357,662.16 | - | 144,334.03 | - |
| ShanghaiGuodaLingyunPharmacyCo.,Ltd. | 357,524.59 | - | 17,535.13 | - |
| SinopharmHoldingDalianHechengCo.,Ltd. | 286,270.00 | - | 126,684.00 | - |
| SinopharmHoldingChengduCo.,Ltd. | 280,800.00 | - | - | - |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | 248,554.12 | - | 5,090,863.70 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 209,724.91 | - | 139,697.93 | - |
| SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd. | 201,154.08 | - | - | - |
| SinopharmJienuoMedicalTreatmentSeviceGuangdongCo.,Ltd. | 124,568.18 | - | 120,403.60 | - |
| SinopharmHoldingQinghaiCo.,Ltd. | 110,520.40 | - | 96,319.48 | - |
| SinopharmHoldingYanchengCo.,Ltd. | 108,561.80 | - | - | - |
| SinopharmHoldingNingxiaCo.,Ltd. | 100,896.00 | - | - | - |
| SinopharmHoldingGansuCo.,Ltd. | 94,147.34 | - | 176,910.34 | - |
| SinopharmHoldingShenyangCo.,Ltd. | 84,504.52 | - | 123,126.34 | - |
| SinopharmHoldingTianjinNorthMedicineCo.,Ltd. | 78,465.54 | - | 91,390.41 | - |
| SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd. | 69,005.33 | 453.65 | - | - |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 63,160.96 | - | 90,159.36 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Accountsreceivable(Continued)
| Accountsreceivable(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | 59,076.00 | - | 39,618.00 | - |
| SinopharmHoldingHongheCo.,Ltd. | 58,831.14 | - | - | - |
| SinopharmHoldingHeilongjiangCo.,Ltd. | 50,000.00 | 50,000.00 | 50,000.00 | - |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | 41,360.00 | - | - | - |
| SinopharmHoldingJiangxiCo.,Ltd. | 22,606.08 | - | - | - |
| ShanghaiLiyiDrugStoreCo.,Ltd | 19,278.81 | - | 76,366.48 | - |
| SinopharmHoldingZunyiCo.,Ltd. | 18,358.20 | - | - | - |
| SinopharmHoldingChangzhouCo.,Ltd. | 15,557.40 | - | - | - |
| SinopharmHoldingFuzhouCo.,Ltd. | 15,195.60 | - | - | - |
| SinopharmHoldingChuxiongCo.,Ltd. | 13,132.80 | - | - | - |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | 12,020.26 | 74.54 | 16,836.25 | 136.35 |
| NanchangSinopharmHoldingGuoyaotangPharmacyCo.,Ltd. | 11,448.00 | - | - | - |
| SinopharmHoldingGuizhouCo.,Ltd. | 8,307.00 | - | 16,026.00 | - |
| SinopharmHoldingWuxiCo.,Ltd. | 6,818.00 | - | 157,614.80 | - |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 6,669.00 | - | 1,070.60 | - |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | 5,900.96 | - | 1,300.54 | - |
| SinopharmHoldingUlanqabCo.,Ltd. | 3,933.10 | - | - | - |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | 3,366.10 | - | 1,488.00 | - |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | 1,526.02 | 4.78 | 695.70 | 0.94 |
| SinopharmGroupShanxiCo.,Ltd. | 1.60 | - | 58,518.00 | - |
| SinopharmXinxiangChainStoreCo.,Ltd. | - | - | 2,064.20 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | - | - | 144,600.00 | - |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | - | - | 11,904.00 | - |
| HubeiPharmaceuticalGroupCo.,Ltd. | - | - | 61,959.91 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
Notesreceivable
| Notesreceivable | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | 13,210,232.00 | - | 202,456,075.93 | - |
| SinopharmHoldingHainanCo.,Ltd. | 3,896,828.51 | - | 12,035,409.02 | - |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 2,500,000.00 | - | 1,148,409.56 | - |
| SinopharmHoldingHainanHongyiCo.,Ltd. | 1,528,421.30 | - | 10,234,483.82 | - |
| SinopharmHoldingHubeiCo.,Ltd. | 1,008,876.24 | - | - | - |
| SinopharmHoldingNantongCo.,Ltd. | 750,000.00 | - | - | - |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 472,387.20 | - | - | - |
| SinopharmHoldingGansuCo.,Ltd. | 239,670.00 | - | 163,198.80 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 1,077,861.97 | - |
| SinopharmHoldingShenyangCo.,Ltd. | - | - | 422,520.00 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 359,459.04 | - |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | - | - | 3,144,392.00 | - |
| SinopharmHoldingHenanCo.,Ltd. | - | - | 1,032,584.76 | - |
| SinopharmHoldingAnhuiCo.,Ltd. | - | - | 390,062.21 | - |
| SinopharmHoldingShandongCo.,Ltd. | - | - | 1,241,661.12 | - |
| SinopharmHoldingFujianCo.,Ltd. | - | - | 400,000.00 | - |
| SinopharmHoldingNingxiaCo.,Ltd. | - | - | 176,568.00 | - |
| SinopharmHoldingJilinCo.,Ltd. | - | - | 274,058.00 | - |
| SinopharmHoldingChengduCo.,Ltd. | - | - | 201,332.00 | - |
| Otherreceivables | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | 44,000,000.00 | 2,200,000.00 | 44,000,000.00 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 6,226,734.36 | - | 2,494,174.31 | - |
| ShyndecPharmaceutical | 5,624,940.00 | - | 7,913,430.00 | - |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 385,381.65 | - | 100,000.00 | - |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 234,693.89 | 600.00 | 109,774.26 | 600.00 |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 48,493.16 | - | 48,493.16 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
SinopharmHoldingTianjinCo.,Ltd.
| SinopharmHoldingTianjinCo.,Ltd. | 41,100.00 | - | - | - |
| SinopharmGroup | 13,416.00 | - | - | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Otherreceivables(Continued)
| Otherreceivables(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 10,990.00 | - | - | - |
| WuhanZhonglianPharmaceuticalGroupCo.,Ltd. | 5,000.00 | 1,000.00 | 5,000.00 | 1,000.00 |
| SinopharmHoldingFujianCo.,Ltd. | 3,476.39 | - | 5,476.34 | - |
| SinopharmHoldingJiaozuoCo.,Ltd. | - | - | 30,171.00 | - |
| HenanWanxitangPharmacyCo.,Ltd. | - | - | 1,098,981.30 | - |
| SinopharmHealthOnlineCo.,Ltd. | - | - | 81,755.36 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | - | - | 18,650.00 | - |
| Advancestosuppliers | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 1,628,396.28 | - | 1,643,251.42 | - |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 1,097,717.47 | - | 931,286.48 | - |
| SinopharmGroup | 760,415.14 | - | 2,308,319.33 | - |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 446,109.64 | - | 227,175.58 | - |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | 242,701.50 | - | - | - |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | 230,666.79 | - | - | - |
| SichuanHexinPharmaceuticalCo.,Ltd. | 174,960.00 | - | - | - |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 146,744.67 | - | 45,611.47 | - |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd. | 140,382.00 | - | - | - |
| ChengduRongshengPharmacyCo.,Ltd. | 122,000.00 | - | 1,416,622.63 | - |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | 82,800.00 | - | 78,857.14 | - |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 81,152.00 | - | - | - |
| ChinaNationalMedicinesCo.,Ltd. | 78,750.00 | - | 78,750.00 | - |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 64,979.60 | - | 48,734.70 | - |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | 63,310.27 | - | - | - |
| ShyndecPharmaceutical | 56,281.48 | - | 57,838.35 | - |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 50,658.00 | - | - | - |
| JinzhouAoHongPharmaceuticalsCo., | 33,040.00 | - | 16,520.00 | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
Ltd.
| Ltd. | ||||
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | 27,085.38 | - | 15,655.31 | - |
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)
| Advancestosuppliers(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| GuilinSouthpharmaceuticalCo.,Ltd. | 26,524.88 | - | 10,989.56 | - |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | 21,646.80 | - | - | - |
| SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd. | 20,279.70 | - | 282,467.38 | - |
| JiangxiEryeMedicineMarketingCo.,Ltd. | 16,726.80 | - | 729,789.16 | - |
| ShantouJinshiPowderInjectionCo.,Ltd. | 14,889.93 | - | - | - |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 14,885.06 | - | - | - |
| TaishanQunkangPharmacyCo.,Ltd. | 13,150.07 | - | - | - |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 11,436.42 | - | 1,412.52 | - |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 9,560.00 | - | 1,846.55 | - |
| SuzhouEryePharmaceuticalLimitedCompany | 9,242.76 | - | - | - |
| WinteamPharmaceuticalGroupLtd. | 8,877.09 | - | 9,346.82 | - |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 5,812.50 | - | 139,392.00 | - |
| SinopharmHoldingJilinCo.,Ltd. | 4,267.77 | - | - | - |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | 778.62 | - | - | - |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 81.08 | - | 81.08 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 3,890,993.71 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 3,330,287.42 | - |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | - | - | 660,000.00 | - |
| SinopharmHoldingBeijingCo.,Ltd. | - | - | 123,809.52 | - |
| SinopharmHoldingFujianCo.,Ltd. | - | - | 225.81 | - |
| XinjiangBaitongPropertyServiceCo.,Ltd. | - | - | 16,856.89 | - |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | - | - | 536,000.00 | - |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | - | - | 45,432.69 | - |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | - | - | 103,503.41 | - |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | - | - | 609,418.22 | - |
| SinopharmChuanKangPharmaceutical | - | - | 346,772.59 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)
| Advancestosuppliers(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| Co.,Ltd. | ||||
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | - | - | 1,231.58 | - |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | - | - | 237,150.00 | - |
| LinyiMedicalGroupCo.,Ltd. | - | - | 775,396.82 | - |
| HunanMinshengtangInvestmentCo.,Ltd. | - | - | 3,349,268.77 | - |
| TaishanXiangranhuiTradeCo.,Ltd | - | - | 39,450.05 | - |
| NanjingYuanguangTradingCo.,Ltd. | - | - | 169,697.02 | - |
6.AmountsduetorelatedpartiesRelatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable | ||
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 195,937,772.42 | 104,262,822.63 |
| ChinaNationalMedicinesCo.,Ltd. | 62,209,906.16 | 48,352,935.82 |
| SinopharmHoldingShanxiCo.,Ltd. | 51,758,102.97 | 945,054.21 |
| SinopharmHoldingShanxiCo.,Ltd. | 31,832,547.24 | - |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 28,675,206.92 | 18,259,929.53 |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | 24,077,737.27 | 10,470,003.68 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 21,572,062.09 | - |
| SinopharmGroup | 21,374,852.12 | 13,732,261.69 |
| JiangsuWanbangPharmacyMarketingCo.,Ltd. | 21,363,008.26 | 15,038,618.86 |
| LanzhouBiotechnologyDevelopmentCo.,Ltd. | 20,100,000.00 | - |
| SinopharmHoldingLunanCo.,Ltd. | 16,885,035.59 | 71,599.97 |
| SinopharmHoldingShenyangCo.,Ltd. | 11,151,742.57 | 4,015,953.59 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 10,342,153.14 | 2,225,947.78 |
| ShenzhenMainLuckPharmaceuticalCo.,Ltd. | 9,804,573.26 | 8,565,744.21 |
| SinopharmHoldingYangzhouCo.,Ltd. | 9,362,416.32 | 7,630,403.88 |
| SinopharmHoldingLerentangPharmaceuticalCo.,Ltd. | 8,517,232.26 | 8,402,288.43 |
| TibetYaoyouMedicinesCo.,Ltd. | 8,066,785.64 | 8,346,619.80 |
| SinopharmHoldingHubeiCo.,Ltd. | 7,380,255.63 | - |
| JinzhouAoHongPharmaceuticalsCo., | 7,121,913.42 | 2,422,868.00 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
6.Amountsduefromrelatedparties(Continued)
6.Amountsduefromrelatedparties(Continued)Advancestosuppliers(Continued)
| Advancestosuppliers(Continued) | 30June2019 | 1January2019 | ||
| Relatedparty | Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt |
| Ltd. | ||||
| SinopharmHoldingBeijingCo.,Ltd. | 6,747,587.35 | 7,478,006.36 | ||
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | 6,179,335.72 | 183,737.13 | ||
| WinteamPharmaceuticalGroupLtd. | 6,143,556.76 | 6,294,519.81 | ||
| SinopharmHoldingFujianCo.,Ltd. | 5,942,354.78 | 4,484,641.23 | ||
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | 5,480,684.06 | 3,550,454.25 |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 4,903,616.19 | 2,922,052.73 |
| SinopharmHoldingJiangsuCo.,Ltd. | 4,884,948.33 | 6,745,253.51 |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 4,704,357.80 | 4,219,138.81 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 4,440,477.23 | 3,506,823.08 |
| SinopharmHoldingShandongCo.,Ltd. | 3,795,662.54 | 10,865.00 |
| SinopharmHoldingPingdingshanCo.,Ltd. | 3,638,807.19 | 3,603,335.66 |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 3,182,288.62 | 795,448.03 |
| YichangHumanwellPharmaceuticalCo.,Ltd. | 3,022,607.79 | 1,936,090.54 |
| SinopharmHoldingXiamenCo.,Ltd. | 2,812,274.62 | 1,710,756.72 |
| SinopharmHoldingChangzhouCo.,Ltd. | 2,732,668.55 | 1,484,634.49 |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | 2,630,700.01 | 637.01 |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 2,493,666.00 | 1,755,209.60 |
| SinopharmHoldingNingxiaCo.,Ltd. | 2,423,060.64 | 3,007,737.39 |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 2,265,517.01 | 1,519,045.91 |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 2,257,975.91 | 966,925.12 |
| HenanWanxitangPharmacyCo.,Ltd. | 2,041,958.50 | 2,053,637.44 |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | 1,959,904.38 | 1,571,696.86 |
| SinopharmHoldingTongliaoCo.,Ltd. | 1,758,793.98 | 872,644.61 |
| SichuanHexinPharmaceuticalCo.,Ltd. | 1,685,255.64 | 454,536.00 |
| JiangxiEryeMedicineMarketingCo.,Ltd. | 1,673,658.34 | 262,590.49 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | 1,478,359.09 | 922,059.45 |
| SinopharmholdingsBeijinghuahongco.,Ltd | 1,373,387.43 | 1,498,601.00 |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 1,339,719.99 | 175,855.31 |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 1,274,138.60 | 549,104.40 |
| SinopharmHoldingHenanCo.,Ltd. | 1,265,401.40 | 1,441,223.83 |
| SinopharmHoldingJinanCo.,Ltd. | 1,251,027.35 | 189,250.47 |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | 1,225,702.70 | 398,911.58 |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | 1,162,650.62 | 1,191,792.10 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| SinopharmHoldingWuxiCo.,Ltd. | 971,301.75 | 492,702.04 |
| SinopharmHoldingFuzhouCo.,Ltd. | 955,698.95 | 328,729.69 |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | 926,405.95 | 917,154.80 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 891,429.22 | 1,050,690.44 |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 853,893.17 | 3,080,381.47 |
| HunanDongtingPharmaceuticalCo.,Ltd. | 795,952.06 | 265,365.25 |
| ShyndecPharmaceutical | 696,904.24 | 511,528.32 |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | 694,598.86 | 311,797.36 |
| SinopharmHoldingHulunBuirCo.,Ltd. | 661,633.04 | 364,441.22 |
| ChengduRongshengPharmacyCo.,Ltd. | 657,794.89 | 1,947,271.88 |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 655,200.00 | 370,800.00 |
| SinopharmHoldingSuzhouCo.,Ltd. | 644,244.31 | 1,871,807.98 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | 611,742.48 | 1,133,803.05 |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | 588,962.54 | 363,778.78 |
| SinopharmHoldingHainanCo.,Ltd. | 558,876.10 | 72,738.00 |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 558,859.22 | 342,846.28 |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 498,790.10 | 213,020.90 |
| SinopharmHoldingChangshaCo.,Ltd. | 481,119.66 | - |
| HuayiPharmaceuticalCo.,Ltd. | 473,024.00 | 961,440.00 |
| SuzhouEryePharmaceuticalLimitedCompany | 446,987.01 | 278,341.97 |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | 445,108.34 | 350,668.16 |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | 431,253.60 | 150,034.94 |
| FoshanFengliaoxingPharmaceuticalCo.,Ltd. | 424,687.33 | 1,254,306.67 |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | 401,710.17 | 194,982.00 |
| WuhanZhonglianPharmaceuticalGroupCo.,Ltd. | 385,312.50 | 560,483.58 |
| SinopharmHoldingHunanCo.,Ltd. | 362,310.86 | 7,718.24 |
| SinopharmHoldingLianyungangCo.,Ltd. | 353,590.00 | 276,118.64 |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | 326,508.24 | 149.02 |
| SinopharmLingyunBiopharmaceutical | 318,353.90 | 165,476.77 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| (Shanghai)Co.,Ltd. | ||
| ShanghaiTransfusionTechnologyCo.,Ltd. | 311,860.00 | 352,100.00 |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | 310,881.30 | 472,481.64 |
| SinopharmHoldingJinzhouCo.,Ltd. | 304,289.19 | 530,995.29 |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | 284,275.55 | 261,207.05 |
| SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd. | 282,295.93 | 55,877.68 |
| SinopharmHoldingPutianCo.,Ltd. | 274,267.65 | 7,144.64 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 267,956.64 | - |
| SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd. | 266,517.35 | - |
| SinopharmHoldingDezhouCo.,Ltd. | 251,966.42 | 233,602.84 |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | 241,407.19 | 1,057,129.20 |
| SinopharmHoldingTianjinCo.,Ltd. | 233,292.17 | 15,615.31 |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | 231,523.37 | - |
| SinopharmHoldingYanchengCo.,Ltd. | 201,484.85 | 190,168.37 |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | 165,906.67 | 139,969.67 |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 161,072.33 | 90,275.31 |
| SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd. | 160,457.71 | - |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 148,041.15 | 165,171.12 |
| SinopharmHoldingAnhuiCo.,Ltd. | 139,702.67 | 18,589.18 |
| FoshanDezhongPharmaceuticalCo.,Ltd. | 139,274.51 | 98,835.01 |
| SinopharmHoldingDalianCo.,Ltd. | 136,272.27 | 182,516.75 |
| SinopharmHoldingBayannaoerCo.,Ltd. | 131,992.42 | - |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 122,930.63 | 122,930.63 |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | 120,579.21 | 102,693.04 |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | 108,541.17 | 20,509.50 |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 106,921.13 | 91,493.10 |
| ChinaMedicalEquipmentShandongCo.,Ltd. | 106,382.80 | - |
| SinopharmLiaoningMedicalEquipmentCo.,Ltd. | 102,585.59 | - |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | 92,151.64 | 97,099.70 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| SinopharmHoldingTaizhouCo.,Ltd. | 76,424.00 | 99,508.00 |
| SinopharmGroupShanxiMedicalDevicesCo.,Ltd. | 75,016.66 | - |
| SinopharmHoldingZhejiangCo.,Ltd. | 72,393.66 | 58,508.35 |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | 67,745.54 | 57,148.85 |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | 64,687.73 | 50,162.16 |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 52,819.07 | 52,819.07 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | 49,772.38 | 9,720.00 |
| SinopharmHoldingFuzhouMedicalDevicesCo.,Ltd. | 46,000.00 | - |
| SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd. | 44,682.80 | 102,437.80 |
| SinopharmHoldingUlanqabCo.,Ltd. | 44,330.00 | 61,246.80 |
| ShantouJinshiPowderInjectionCo.,Ltd. | 39,838.05 | 245,352.00 |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | 33,085.44 | 25,483.57 |
| SinopharmHoldingRizhaoCo.,Ltd. | 32,873.67 | 10,236.15 |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | 29,912.02 | 372,103.86 |
| SinopharmHoldingDalianHechengCo.,Ltd. | 28,687.56 | - |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | 27,719.91 | 297,576.35 |
| SinopharmHoldingQuanzhouCo.,Ltd. | 26,085.88 | 62,947.60 |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | 24,871.11 | 27,215.64 |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | 22,800.00 | - |
| SinopharmHoldingYongzhouCo.,Ltd. | 19,809.36 | 19,858.72 |
| SinopharmGroupShanghaiMedicineDeviceCo.,Ltd. | 16,603.02 | 16,603.02 |
| SinopharmHoldingLiaochengCo.,Ltd. | 16,197.93 | 16,197.93 |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | 13,891.78 | 84,524.54 |
| SinopharmHoldingZhangzhouPharmaceuticalCo.,Ltd. | 11,760.00 | - |
| SinopharmGroupShanxiCo.,Ltd. | 10,144.80 | - |
| SinopharmGroupAnhuiMedicalDevicesCo.,Ltd. | 5,200.00 | - |
| ChangchunChangshengGenePharmaceuticalCo.,Ltd. | 3,017.20 | 1,492.91 |
| SinopharmHoldingOrdosCo.,Ltd. | 1,771.20 | 1,771.20 |
| SinopharmHoldingShanxiJinchengCo., | 1,659.94 | 3,846.13 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| Ltd. | ||
| SinopharmProspectDentech(Beijing)Co.,Ltd. | 1,461.99 | 1,536.00 |
| GuilinSouthpharmaceuticalCo.,Ltd. | 1,210.43 | 1,210.80 |
| SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd. | 1,113.85 | 1,113.85 |
| GuizhouTongjitangPharmacyChainCo.,Ltd. | 991.50 | - |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd. | 534.20 | 534.20 |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | 106.76 | 106.76 |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | 101.91 | 101.91 |
| SinopharmHoldingChongqingCo.,Ltd. | 45.00 | 45.00 |
| LinyiMedicalGroupCo.,Ltd. | 10.47 | 10.47 |
| SinopharmHoldingXinyuCo.,Ltd. | 0.01 | 0.01 |
| SinopharmHoldingJilinCo.,Ltd. | - | - |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 6,309,208.47 |
| SinopharmHoldingTianjinDistributionCenterCo.,Ltd. | - | 35.32 |
| SinopharmHoldingZhangzhouCo.,Ltd. | - | 5,472.50 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | - | 2,741.40 |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | - | 80,000.00 |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | - | 180,000.00 |
| SinopharmWuhanbloodproductsCo.,Ltd. | - | 170,387.93 |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | - | 255,089.90 |
| SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd. | - | 63,081.60 |
| JiangsuLianhuanPharmaceuticalCo.,Ltd. | - | 1,321,298.26 |
| QinghaiPharmaceuticalFactoryCo.,Ltd. | - | 32,970.00 |
| JingfukangPharmaceuticalGroupCo.,Ltd. | - | 184,438.44 |
| ShanghaiSinopharmPharmaceuticalCo.,Ltd. | - | 92,610.00 |
| FujianChentianJinlingPharmaceuticalCo.,Ltd. | - | 505,555.00 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Accountspayable(Continued) | ||
| Relatedparty | 30June2019 | 1January2019 |
| Notespayable | ||
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 116,044,638.24 | 230,067,443.17 |
| SinopharmHoldingShenyangCo.,Ltd. | 65,065,373.01 | 76,894,045.21 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 25,122,678.38 | 20,459,755.01 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 18,119,677.13 | 13,887,657.53 |
| SinopharmHoldingShanxiCo.,Ltd. | 7,725,000.00 | 67,926,610.30 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) |
| 7.Amountsduetorelatedparties(Continued) |
| Relatedparty | 30June2019 | 1January2019 |
| Notespayable(Continued) | ||
| SinopharmHoldingFujianCo.,Ltd. | 7,114,576.43 | 7,011,034.30 |
| SinopharmHoldingLerentangPharmaceuticalCo.,Ltd. | 6,824,078.95 | 14,650,495.82 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 6,503,471.90 | 5,538,258.30 |
| ChinaNationalMedicinesCo.,Ltd. | 5,851,346.28 | 26,654,608.10 |
| SinopharmHoldingXiamenCo.,Ltd. | 5,423,216.11 | 5,361,959.66 |
| ChengduRongshengPharmacyCo.,Ltd. | 5,041,000.00 | 2,673,500.00 |
| LanzhouBiotechnologyDevelopmentCo.,Ltd. | 4,860,000.00 | 3,000,000.00 |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | 4,185,619.88 | 8,148,267.06 |
| SinopharmHoldingJinzhouCo.,Ltd. | 2,493,839.62 | 1,611,340.65 |
| JiangsuWanbangPharmacyMarketingCo.,Ltd. | 2,439,745.89 | 4,817,408.42 |
| SinopharmHoldingShanxiCo.,Ltd. | 2,082,000.00 | 18,340,013.80 |
| SinopharmHoldingHunanCo.,Ltd. | 2,043,558.46 | 3,114,143.15 |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 1,856,344.00 | 325,741.92 |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 1,802,808.00 | 2,402,393.40 |
| ShenzhenMainLuckPharmaceuticalCo.,Ltd. | 1,769,052.60 | 2,877,350.00 |
| SinopharmHoldingNingxiaCo.,Ltd. | 1,538,808.00 | 1,413,847.22 |
| SinopharmHoldingJinanCo.,Ltd. | 1,240,000.00 | 1,880,000.00 |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 1,145,486.98 | 356,554.16 |
| SinopharmGroupShanxiMedicalDevicesCo.,Ltd. | 949,700.00 | - |
| SinopharmHoldingDalianCo.,Ltd. | 857,791.87 | 950,169.80 |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | 755,306.20 | - |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 632,834.40 | - |
| SinopharmHoldingChangshaCo.,Ltd. | 632,325.90 | - |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 409,923.80 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 400,000.00 | 1,000,000.00 |
| ShanghaiTransfusionTechnologyCo.,Ltd. | 301,800.00 | 503,000.00 |
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | 262,800.00 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
| X.Relatedpartyrelationshipsandtransactions(Continued) |
| 7.Amountsduetorelatedparties(Continued) |
| Relatedparty | 30June2019 | 1January2019 |
| Notespayable(Continued) | ||
| ShyndecPharmaceutical | 255,516.40 | 475,780.40 |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | 213,037.00 | 223,333.00 |
| SinopharmHoldingQuanzhouCo.,Ltd. | 205,791.15 | 170,891.70 |
| SinopharmHoldingPutianCo.,Ltd. | 160,980.86 | 614,504.48 |
| SinopharmHoldingYanchengCo.,Ltd. | 160,000.00 | - |
| WinteamPharmaceuticalGroupLtd. | 154,417.60 | 111,322.50 |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 107,472.00 | 394,064.00 |
| SinopharmGroup | - | 1,183,604.16 |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 1,981,189.60 |
| SinopharmHoldingLunanCo.,Ltd. | - | 8,596,290.47 |
| SinopharmHoldingYangzhouCo.,Ltd. | - | 626,534.40 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | - | 31,320.00 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | - | 22,076,249.59 |
| FoshanFengliaoxingPharmaceuticalCo.,Ltd. | - | 320,310.10 |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | - | 536,000.00 |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | - | 6,236,153.40 |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | - | 602,172.00 |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | - | 275,652.00 |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | - | 1,793,583.51 |
| JiangsuLianhuanPharmaceuticalCo.,Ltd. | - | 522,071.08 |
| JingfukangPharmaceuticalGroupCo.,Ltd. | - | 151,120.00 |
| FujianChentianJinlingPharmaceuticalCo.,Ltd. | - | 100,600.00 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Otherpayables | ||
| SinopharmGroupMedicineLogisticCo.,Ltd. | 11,518,140.63 | 2,278,301.79 |
| ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd. | 10,000,000.00 | 10,000,000.00 |
| SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstitute | 5,173,229.10 | 5,943,030.80 |
| SinopharmGroup | 3,842,067.59 | 3,706,406.59 |
| SinopharmGroupShanghaiCo.,Ltd. | 1,690,992.16 | 1,660,431.38 |
| ChinaNationalofTraditional&HerbalMedicineCo.,Ltd. | 1,300,000.00 | 1,300,000.00 |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | 387,617.70 | 339,760.00 |
| ShyndecPharmaceutical | 327,973.63 | 327,973.63 |
| ShanghaiBeiyiGuodapharmaceuticalCo.Ltd. | 195,898.04 | 566,180.09 |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited | 97,305.00 | 30,000.00 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 76,540.19 | 41,794.27 |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 37,782.33 | 37,782.33 |
| XinjiangBaitongPropertyServiceCo.,Ltd. | 33,713.74 | - |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | 10,349.70 | 10,349.70 |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | - | 18,650.00 |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | - | 4,424,970.21 |
| HeyuanMairuiTradingCo.,Ltd. | - | 672,396.36 |
| ShenyangPharmaceuticalCo.,Ltd. | - | 4,419,166.69 |
| LinyiMedicalGroupCo.,Ltd. | - | 51,398.45 |
| ZhangZhenfang | - | 2,309,999.96 |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | - | 1,246,412.02 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
X.Relatedpartyrelationshipsandtransactions(Continued)
7.Amountsduetorelatedparties(Continued)
7.Amountsduetorelatedparties(Continued)Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Contractliability | ||
| SinopharmHoldingQuanzhouCo.,Ltd. | 111,943.09 | 10,088.00 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 23,021.80 | 23,021.80 |
| SinopharmHoldingJiangxiCo.,Ltd. | 22,924.91 | 34,334.51 |
| SinopharmHoldingGansuCo.,Ltd. | 21,960.00 | - |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | 20,475.00 | - |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 2,727.23 | 1,495.33 |
| SinopharmHoldingChengduCo.,Ltd. | 851.59 | 851.59 |
| SinopharmHoldingChongqingCo.,Ltd. | 755.62 | 755.62 |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | 639.92 | 1,599.80 |
| SinopharmHoldingTaizhouCo.,Ltd. | 24.80 | - |
| SinopharmHoldingJinzhouCo.,Ltd. | 0.19 | - |
| SinopharmHoldingHunanCo.,Ltd. | - | 87,764.97 |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited | - | 67,305.00 |
| SinopharmXinxiangChainStoreCo.,Ltd. | - | 0.01 |
| SinopharmHoldingYunnanCo.,Ltd. | - | 11,900.19 |
| SinopharmHoldingNantongCo.,Ltd. | - | 143,177.12 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | - | 1,123,087.93 |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | - | 93.60 |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | - | 3,719.00 |
| SinopharmHealthOnlineCo.,Ltd. | - | 416,056.44 |
| SinopharmHoldingHulunBuirCo.,Ltd. | - | 21,177.25 |
| SinopharmHoldingHuaianCo.,Ltd. | - | 19.40 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Interestreceivable | ||
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | 1,484,841.22 | 1,846,618.96 |
| Interestpayable | ||
| GroupFinancialCo. | 98,338.84 | - |
| CNPGC | 35,440.21 | 38,984.25 |
| Othernon-currentassets | ||
| HunanMinshengtangInvestmentCo.,Ltd. | - | 3,519,217.54 |
| Leaseliability | ||
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 51,477,662.49 | - |
| LerentangInvestmentGroupCo.,Ltd. | 15,361,691.91 | - |
| LinyiMedicalGroupCo.,Ltd. | 7,333,666.98 | 2,214,094.34 |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | 6,824,613.01 | 9,625,302.89 |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | 5,895,887.17 | 6,679,233.35 |
| SinopharmHoldingYangzhouCo.,Ltd. | 5,440,115.48 | 7,178,262.00 |
| TaishanXiangranhuiTradeCo.,Ltd | 2,506,316.51 | 2,834,391.56 |
| GuJinhua | 2,091,695.72 | 2,224,810.30 |
| NanjingYuanguangTradingCo.,Ltd. | 1,979,076.07 | 2,675,365.64 |
| ShenyangPharmaceuticalCo.,Ltd. | 1,685,513.08 | 1,885,957.03 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | 996,884.75 | 1,441,844.49 |
| SinopharmGroup | 917,838.40 | 1,156,090.31 |
| SinopharmHoldingBeijingCo.,Ltd. | 866,374.99 | 1,094,397.22 |
| GuHaiqun | 686,419.59 | 766,279.30 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | 506,243.41 | 652,436.66 |
| HangzhouXihuBusinessGroupCorporation | 422,980.77 | 553,514.61 |
| ChinaNationalMedicinesCo.,Ltd. | 417,186.76 | 550,480.20 |
| ShenzhenJiufengInvestmentCo.,Ltd. | 385,892.93 | 377,758.33 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
Relatedparty
| Relatedparty | 30June2019 | 1January2019 |
| Entrustedloan | ||
| CNPGC | - | 31,600,000.00 |
| Othernon-currentliabilities | ||
| SinopharmGroup | - | 35,061,743.31 |
| short-termloan | ||
| GroupFinancialCo. | 111,418,168.96 | 122,426,393.33 |
| Long-termpayables | ||
| SinopharmHoldingFinancingLeaseCo.,Ltd. | - | 3,763,978.52 |
| Non-currentliabilitiesduewithinoneyear | ||
| CNPGC | 31,600,000.00 | - |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 9,673,454.33 | 9,206,427.16 |
| LerentangInvestmentGroupCo.,Ltd. | 8,032,346.40 | 5,822,550.02 |
| SinopharmHoldingFinancingLeaseCo.,Ltd. | 6,157,645.87 | 5,861,324.37 |
| SinopharmHoldingYangzhouCo.,Ltd. | 3,587,508.60 | 3,512,206.10 |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | 1,752,116.60 | 1,649,377.54 |
| LinyiMedicalGroupCo.,Ltd. | 1,450,117.00 | 1,549,099.93 |
| NanjingYuanguangTradingCo.,Ltd. | 1,407,714.78 | 1,163,845.57 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | 918,533.66 | 899,216.52 |
| TaishanXiangranhuiTradeCo.,Ltd | 657,171.76 | 660,453.69 |
| SinopharmGroup | 491,639.09 | 481,344.63 |
| SinopharmHoldingBeijingCo.,Ltd. | 477,779.78 | 460,701.48 |
| ShenyangPharmaceuticalCo.,Ltd. | 428,258.20 | 404,634.11 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | 325,813.14 | 295,389.79 |
| HangzhouXihuBusinessGroupCorporation | 276,559.91 | 263,776.29 |
| ChinaNationalMedicinesCo.,Ltd. | 275,115.69 | 269,340.95 |
| GuJinhua | 273,920.39 | 268,369.48 |
| ShenzhenJiufengInvestmentCo.,Ltd. | 188,790.90 | 184,833.91 |
| GuHaiqun | 168,618.03 | 161,206.64 |
| Cashdepositewitharelatedparty | ||
| GroupFinancialCo. | 11,759,504.84 | 2,125,351.39 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XICommitmentsandcontingencies
1.Commitments
(1)
| (1) | Capitalcommitments |
| Capitalexpenditurescontractedforatthebalancesheetdatebutnotrecognizedinbalancesheetareanalyzedasfollows: | ||
| 30June2019 | 31December2018 | |
| RMB‘0,000 | RMB‘0,000 | |
| Buildings,machineryandequipment | 2,196.50 | 42.16 |
| Investmentcommitments(Note) | 6,000.00 | 6,000.00 |
| 8,196.50 | 6,042.16 |
Note:TheGroupsubscribedtoSinopharmZhongjinmedicalindustryfundasitslimitedpartner,andthetotalinvestmentamountedtoRMB200million.Theinvestorscontributeyearbyyearinbatch.Thefundmanagerwillsendoutpaymentnotificationtoinvestorsaccordingtotheactualprogressoftheprojectandtheinvestorswillcommittocompletethepaymentin3year.Theinvestorshavepaid30%oftheamountofcontributionduring2017,namelyRMB60million,and40%in2018,amountingtoRMB80million.TheremainingpaymentamountisRMB60million..
2.ContingenciesAsofthebalancesheetdate,therewerenocontingenciesthattheGroupwasrequiredtodisclose.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIOthersignificantevents
1.SegmentreportingOperatingsegments
Formanagementpurpose,theGroupisorganizedintobusinessunitsbasedonitsproductandserviceandhasfourreportableoperatingsegmentsasfollows:
a)TheHeadOffice,whichismainlyengagedininvestingandmanagingbusiness;b)Pharmaceuticaldistributionsegment,whichismainlyengagedinthedistribution
ofmedicineandpharmaceuticalproductstocustomers;c)Retailpharmacysegment,whichisthemanagingtheoperationofGuoda
Pharmacy;ManagementmonitorstheresultsoftheGroup’soperatingsegmentsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonreportablesegmentprofit,whichisameasureofadjustedprofitbeforetax.TheadjustedprofitbeforetaxismeasuredconsistentlywiththeGroup’sprofitbeforetaxexceptthatfinancecosts,dividendincome,non-operatingincome,non-operatingexpense,investmentincome,aswellasheadofficeandcorporateexpensesareexcludedfromsuchmeasurement.Inter-segmentsalesandtransfersaretransactedwithreferencetothesellingpricesusedinthetransactionscarriedoutwiththirdpartiesatthethenprevailingmarketprices.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIOthersignificantevents(Continued)
2.Segmentreporting(Continued)
Operatingsegments(Continued)
Operatingsegmentinformationasatandforthesemiyearended
HeadOffice
| HeadOffice | Pharmaceuticaldistribution | Retail | Eliminationbetweensegments | Total |
| Revenueofmainoperations | - | 19,442,945,442.54 | 5,957,083,892.95 | (359,409,396.51) | 25,040,619,938.98 |
| Costofmainoperations | - | (18,238,282,841.05) | (4,518,680,260.83) | 358,635,569.45 | (22,398,327,532.43) |
| Investmentincome | 169,889,995.08 | (995,293.58) | 247,588.49 | - | 169,142,289.99 |
| Netprofit | 607,413,658.42 | 403,231,513.97 | 186,189,865.75 | (428,742,482.83) | 768,092,555.31 |
| Totalassets | 11,863,959,776.81 | 20,784,963,352.57 | 10,847,813,404.32 | (9,957,137,850.76) | 33,539,598,682.94 |
| Totalliabilities | (2,406,658,554.25) | (15,349,630,522.38) | (5,670,681,594.90) | 4,445,868,231.85 | (18,981,102,439.68) |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements
1.Accountsreceivable
Theaccountsreceivablebycategoryareanalyzedbelow:
30June2019
| 30June2019 | 1January2019 | |||||||||
| Grosscarryingamount | Provisionforbaddebt | Grosscarryingamount | Provisionforbaddebt | |||||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Itemsforwhichprovisionforbaddebtisrecognisedseparately | 19,207,761.36 | 3.15% | 161,522.25 | 0.84% | 17,846,941.30 | 2.83% | - | - | |||
| Itemsforwhichprovisionforbaddebtisrecognizedbythecompany(creditriskcharacteristics) | 591,029,383.80 | 96.85% | - | - | 613,389,652.64 | 97.17% | - | - |
| 610,237,145.16 | 100.00% | 161,522.25 | 0.03% | 631,236,593.94 | 100.00% | - | - |
At30June2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Accountsreceivable(bycompany)
| Accountsreceivable(bycompany) | Carryingamount | Baddebtprovision | Rate | Assessmentforimpairment |
| Receivableofrelatedparty | 18,884,716.86 | - | 0.00% | Receivableduefromarelatedpartywithlowriskofrecoverability |
| ShenzhenDongtaiPharmaceuticalCo.,Ltd. | 323,044.50 | 161,522.25 | 50.00% | Thecustomerhaspoormanagementandbadfinancialsituationwithhighriskofrecoverability |
| Total | 19,207,761.36 | 161,522.25 |
Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss:
30June2019
| 30June2019 | |||||
| Estimateddefaultamount | Expectedcreditlossinentirelifetime | Expectedcreditlossrate | |||
| Within1year | 591,029,383.80 | - | - | ||
| 591,029,383.80 | - | - |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
1.Accountsreceivable(Continued)
Theaginganalysisofaccountsreceivableswasasfollows:
30June2019
30June2019Within1year
| Within1year | 610,237,145.16 |
| Total | 610,237,145.16 |
Baddebtprovisionforthecurrentperiodasfollows:
| Openingbalance | Reversalofwrite-offinpreviousyears | Increasesintheyear | Reversalintheyear | Writtenoffintheyear | Closingbalance | |
| Baddebts | - | - | 161,522.25 | - | - | 161,522.25 |
| Total | - | - | 161,522.25 | - | - | 161,522.25 |
On30June2019,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Thetopfiveaccountsreceivabletotal | 117,550,911.53 | - | 19.26% |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Otherreceivables
30June2019
| 30June2019 | 1January2019 |
| Interestreceivable | 14,926,690.76 | 7,550,877.07 |
| Dividendreceivable | 106,074,898.00 | - |
| Otherreceivables | 1,737,482,983.84 | 1,534,430,006.43 |
| 1,858,484,572.60 | 1,541,980,883.50 |
（1）Interestreceivable
| 30June2019 | 1January2019 |
| Fixeddeposits | 11,411,000.00 | 3,697,083.33 |
| EntrustedLoans | 3,515,690.76 | 3,853,793.74 |
| 14,926,690.76 | 7,550,877.07 |
（2）Dividendreceivable
| 30June2019 | 1January2019 |
| SinopharmHoldingShenzhenLogisticsCo.,Ltd. | 1,332,303.75 | - |
| SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd | 245,732.05 | - |
| ShenzhenJianminPharmaceuticalCo.,Ltd. | 2,260,593.51 | - |
| SinopharmHoldingGuangzhouCo.,Ltd | 71,642,571.23 | - |
| SinopharmHoldingGuangxiCo.,Ltd | 30,593,697.46 | - |
| 106,074,898.00 | - |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
（3）Otherreceivables
Categoryofotherreceivablesbynatureisasfollows:
Categoryofotherreceivablesbynatureisasfollows:
Nature
| Nature | 30June2019 | 1January2019 |
| Receivableduefromrelatedparties | 1,721,317,102.80 | 1,469,192,387.91 |
| Receivableofequitytransactions | 8,980,000.00 | 8,980,000.00 |
| Deposits | 436,311.09 | 1,449,978.94 |
| Others | 17,964,114.36 | 63,817,941.16 |
| Total | 1,748,697,528.25 | 1,543,440,308.01 |
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Otherreceivables(Continued)
Thechangesinbaddebtprovisionforotherreceivablesbasedontheentirelifetimeexpectedcreditlossesareasfollows:
| Stage1 | Stage2 | Stage3 | ||
| Baddebt | Expectedcreditlossesoverthenext12months | Entirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred) | Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred) | Total |
| Balanceat1January2019 | - | 9,010,301.58 | - | 9,010,301.58 |
| Balanceat1January2019duringtheperiod | ||||
| Provisionsduringtheperiod | - | 2,204,412.83 | - | 2,204,412.83 |
| Reversalduringtheperiod | - | (170.00) | - | (170.00) |
| Balanceat30June2019 | - | 11,214,544.41 | - | 11,214,544.41 |
Theaginganalysisofotherreceivableswasasfollows:
30June2019Within1year
| Within1year | 1,689,730,979.74 |
| 1to2years | 49,856,902.50 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
2to3years
| 2to3years | 29,829.20 |
| Over3years | 9,079,816.81 |
| Total | 1,748,697,528.25 |
Baddebtprovisionofotherreceivablesin2019wasRMB2,204,412.83,withtherecoveredorreversedamountofRMB170.00.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Otherreceivables(Continued)
Asat30June2019，thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:
Asat30June2019，thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalyzedbelow:
Nature
| Nature | Amount | Age | %oftotalamount | Provisionofbaddebt |
| SinopharmGuangxi | Entrustedborrowings | 343,000,000.00 | Within1year | 19.61% |
| SinopharmYuexing | Entrustedborrowings | 190,700,000.00 | Within1year | 10.91% |
| SinopharmHoldingDongguanCo.,Ltd. | Entrustedborrowings | 161,000,000.00 | Within1year | 9.21% |
| SinopharmHoldingsZhanjiangCo.,Ltd. | Entrustedborrowings | 117,000,000.00 | Within1year | 6.69% |
| SinopharmHoldingMeizhouCo.,Ltd. | Entrustedborrowings | 76,700,000.00 | Within1year | 4.39% |
| 888,400,000.00 | 50.81% |
3.Long-termequityinvestments
| 30June2019 | 1January2019 | |||||
| Originalvalue | Baddebtprovision | Carryingamount | Originalvalue | Baddebtprovision | Carryingamount | |
| Investmentsinsubsidiaries | 5,594,679,427.58 | - | 5,594,679,427.58 | 5,594,679,427.58 | - | 5,594,679,427.58 |
| Investmentsinassociates | 2,084,966,116.97 | 39,930,000.00 | 2,045,036,116.97 | 1,878,157,264.66 | 39,930,000.00 | 1,838,227,264.66 |
| 7,679,645,544.55 | 39,930,000.00 | 7,639,715,544.55 | 7,472,836,692.24 | 39,930,000.00 | 7,432,906,692.24 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
3.Long-termequityinvestments(Continued)
(a)
| (a) | Subsidiaries |
| 1January2019 | Increases | decrease | 30June2019 | Provisionforimpairmentinthecurrentperiod | Endingvalueofimpairmentprovision |
| SinopharmJianming | 60,054,911.04 | - | - | 60,054,911.04 | - | - | ||||
| SinopharmTraditional&HerbalMedicine | 15,450,875.93 | - | - | 15,450,875.93 | - | - | ||||
| ShenzhenLogistics | 5,019,062.68 | - | - | 5,019,062.68 | - | - | ||||
| SinopharmGuangzhou | 3,588,689,716.80 | - | - | 3,588,689,716.80 | - | - | ||||
| SinopharmGuangxi | 525,456,951.07 | - | - | 525,456,951.07 | - | - | ||||
| SinopharmYanfeng | 38,207,800.00 | - | - | 38,207,800.00 | - | - | ||||
| SinopharmHoldingGuodaPharmacyCo.,Ltd. | 1,361,800,110.06 | - | - | 1,361,800,110.06 | - | - |
| 5,594,679,427.58 | - | - | 5,594,679,427.58 | - | - |
| (b) | Associates |
| Movement | ||||||||||
| 1January2019 | Investment | Profitorlossundertheequitymethod | Otherchangesinequity | Dividenddeclared | Other | 30June2019 | Provisionofimpairment | |||
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. | 39,930,000.00 | - | - | - | - | - | 39,930,000.00 | 39,930,000.00 | ||
| ShenzhenMainLuckPharmaceuticalCo.,Ltd | 265,316,653.68 | - | 33,592,995.70 | - | - | - | 298,909,649.38 | |||
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | 355,353,196.15 | - | 58,536,101.74 | - | - | - | 413,889,297.89 | - | ||
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd. | 8,730,994.87 | - | 1,467,031.77 | - | - | - | 10,198,026.64 | - | ||
| SinopharmGroupZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | 86,292,927.33 | - | 22,425,900.45 | - | - | - | 108,718,827.78 | - | ||
| ShanghaiShyndecPharmaceuticalCo.,Ltd. | 1,098,566,852.51 | - | 65,258,503.45 | 42,424,747.00 | (16,896,427.80) | - | 1,189,353,675.16 | - | ||
| ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd. | 23,966,640.12 | - | - | - | - | - | 23,966,640.12 | - | ||
| 1,878,157,264.66 | - | 181,280,533.11 | 42,424,747.00 | (16,896,427.80) | - | 2,084,966,116.97 | 39,930,000.00 | |||
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
4.Salesandcostofsales
Forthesixmonthsended
30June2019
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 | |||
| Revenue | Cost | Revenue | Cost | |
| Principaloperations | 1,997,575,365.19 | 1,915,240,571.14 | 1,681,220,169.43 | 1,612,710,688.13 |
| Otheroperations | 10,429,198.11 | 6,031,823.62 | 6,401,186.40 | 2,006,785.78 |
| 2,008,004,563.30 | 1,921,272,394.76 | 1,687,621,355.83 | 1,614,717,473.91 |
| Classification | Forthesixmonthsended30June2019 |
| Byproduct | |
| Include: | |
| Medicines | 1,919,165,623.70 |
| Medicalappliance | 78,409,741.49 |
| Other | 10,429,198.11 |
| Byarea | |
| Include: | |
| Domestic | 2,008,004,563.30 |
| Overseas |
| Bycontractduration | |
| Include: | |
| Confirmrevenueatacertainpointintime | 1,997,575,365.19 |
| Confirmrevenueatacertaintimeperiod | 10,429,198.11 |
| Total | 2,008,004,563.30 |
InformationabouttheCompany’sobligationsisasfollows:
TheCompanyrecognisesrevenuewhengoodsaredelivered,andwillreceivepaymentwithin30-210days.TheCompanyrecognisesrevenueafterprovidingservices,andwillreceivepaymentwithin30-210days.TheexpectedrevenuerecognitiontimefortheCompany’scontractobligationsaboveisinyear2019.Informationrelatedtothesalespriceallocatedtotheremainingobligations:
Theamountofincomecorrespondingtotheobligationthathasbeensignedbuthasnotbeenfulfilledorhasnotyetfulfilledis9,058,538.51yuan,ofwhich9,058,538.51yuanisexpectedtoberecognizedin2019.
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)
5.Investmentincome
Forthesixmonthsended
30June2019
| Forthesixmonthsended30June2019 | Forthesixmonthsended30June2018 |
| Long-termequityinvestmentincomecalculatedbycostmethod | 427,007,887.36 | 361,514,454.32 | |
| Long-termequityinvestmentincomecalculatedbyequitymethod | 181,280,533.11 | 173,326,290.14 |
| 608,288,420.47 | 534,840,744.46 |
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIVSupplementaryinformationtofinancialstatements
1.Scheduleofnon-recurringprofitorloss
Amountfor30June2019
| Amountfor30June2019 | Illustration |
| Gainsandlossesfromdisposalofnon-currentassets,includingwriteoffofaccruedassetimpairment | 4,318.22 | . |
| Governmentgrantsrecognizedinincomestatementforthecurrentyear,exceptforthosecloselyrelatedtotheordinaryoperationoftheCompanywhichtheGroupenjoyedconstantlyaccordingtotheallotmentstandardsorquantitativecriteriaofthecountry | 16,456,976.15 | Mainlycontainstaxsubsidiesandfinancialincentivesreceivedduringcurrentperiod |
| Reversalofbaddebtprovisionforaccountsreceivablethatweretestedforimpairmentindividually | 1,076,222.62 | |
| Profitorlossfromoutwardentrustedborrowings | 1,715,338.06 | TheinterestincomefromtheentrustedloanprovidedtoSinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd. |
| Non-operatingincomeandexpensesotherthantheaforesaiditems | 519,920.40 | |
| Other | 16,447.15 |
| Less:Impactonincometax | 4,668,084.55 |
| Impactonnon-controllinginterestsaftertax | 3,988,225.60 |
Basisforpreparationofdetailedlistofnon-recurringprofitorlossitems:
UndertherequirementsinExplanatoryannouncementNo.1oninformationdisclosurebycompaniesofferingsecuritiestothepublic–non-recurringprofitorloss(2008)(“ExplanatoryannouncementNo.1”)fromCSRC,nonrecurringprofitorlossrefertothosearisingfromtransactionsandeventsthatarenotdirectlyrelevanttoordinarybusiness,orthatarerelevanttoordinarybusiness,butaresoextraordinarythatwouldhaveaninfluenceonusersoffinancialstatementsmakingproperjudgmentsontheperformanceandprofitabilityofanenterprise.
Notestofinancialstatements(Continued)
Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
XIVSupplementaryinformationtofinancialstatements(Continued)
2.Returnonequity(“ROE”)andearningspershare(“EPS”)
Weighted
averageROE(%)
| WeightedaverageROE(%) | BasicEPS(RMB/Share) | |
| BasicEPS(RMB/Share) | DilutedEPS(RMB/Share) | |
| Netprofitattributabletoordinaryshareholdersoftheparent | 5.44% | 1.52 | 1.52 |
| Netprofitafterdeductingnon-recurringprofitorlossattributabletotheCompany’sordinaryshareholdersoftheparent | 5.35% | 1.49 | 1.49 |
Notestofinancialstatements(Continued)Forthesixmonthsended30June2019(AllamountsinRenminbi“RMB”unlessotherwisestated)
SectionXV.DocumentsAvailableforReference
1.AccountingStatementscarriedwiththesignatureandsealsoflegalrepresentative,chieffinancialofficerandpersoninchargeofaccounting;
2.OriginaltextofalldocumentsoftheCompanyaswellasmanuscriptoftheannouncementdisclosedinreportingperiodonSecuritiesTimes,ChinaSecuritiesJournalandHongKongCommercialDailyappointedbytheCSRC;
3.ThePlaceWherethedocumentplaced:OfficeofSecretariatoftheBoardofDirectors,AccordPharmBldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen
ChinaNationalAccordMedicinesCorporationLtd.
Legalrepresentative:LinZhaoxiong24August2019