ChinaNationalAccordMedicinesCorporationLtd.
AnnualReport2019
April2020
SectionI.ImportantNotice,ContentsandInterpretation
BoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.LinZhaoxiong,PrincipaloftheCompany,WeiPingxiao,personinchargerofaccountingworksandWangYing,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2019AnnualReportisauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.Affectedbyvariousriskfactors,thecompany’sbusinessoperationsarefacingrisksintermsofchangesinindustrypoliciesandintensifiedmarketcompetition.Thecompanyhasmadeaspecificstatementonthe“FutureDevelopmentProspects”ofthefourthsection“DiscussionandAnalysisoftheOperation”inthisannualreport,andallinvestorsshouldpayattentiontoit.TheprofitdistributionplanthatdeliberatedandapprovedbytheBoardis:
basedontotalstockissued428,126,983shares,distributed6Yuan(taxincluded)bonusincashforevery10-shareholdbyallshareholders,0sharesbonusissued(taxincluded)andnocapitalizingofcommonreservescarriedout.
Contents
SectionI.ImportantNotice,ContentsandInterpretation.............................................................1
SectionIICompanyProfileandMainFinancialIndexes ...... 4
SectionIII.SummaryofCompanyBusiness...................................................................................8
SectionIV.DiscussionandAnalysisofBusiness...........................................................................11
SectionV.ImportantEvents...........................................................................................................37
SectionVI.ChangesinSharesandParticularsaboutShareholders...........................................65
SectionVII.PreferredStock...........................................................................................................73
SectionVIII.ConvertibleBonds.....................................................................................................74SectionIX.ParticularsaboutDirectors,Supervisors,SeniorExecutivesandEmployees........75SectionX.CorporateGovernance..................................................................................................87
SectionXI.CorporateBond............................................................................................................96
SectionXII.FinancialReport..........................................................................................................97
SectionXIII.DocumentsAvailableforReference......................................................................366
Interpretation
| 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 | |
| 4Dbusiness | Refersto | SPDhospitallogisticssupplychainextensionbusiness,IVDdiagnosticreagentbusiness,CSSDdisinfectionservice,andMEDequipmentlifecyclemanagementbusiness |
| GPO | Refersto | Grouppurchasingorganizations |
| 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. |
SectionIICompanyProfileandMainFinancialIndexes
I.Companyprofile
| 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 | ||
| Registrationsadd. | AccordPharm.Bldg,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | ||
| Codeforregistrationsadd | 518029 | ||
| Officesadd. | AccordPharm.Bldg,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | ||
| Codesforofficeadd. | 518029 | ||
| Company’sInternetWebSite | http://www.szaccord.com.cn | ||
| gyyz0028@sinopharm.com | |||
II.Person/Waytocontact
| SecretaryoftheBoard | Securitiesaffairsrepresentative | |
| 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.Informationdisclosureandpreparationplace
| Newspaperappointedforinformationdisclosure | SecuritiesTimes;ChinaSecuritiesJournal;HongKongCommercialDaily |
| WebsiteforannualreportpublishappointedbyCSRC | http://www.szse.cn;http://www.cninfo.com.cn |
| Preparationplaceforannualreport | SecretariatoftheBoardofDirectors |
IV.RegistrationchangesoftheCompany
| Organizationcode | 91440300192186267U |
| Changesofmainbusinesssincelisting(ifapplicable) | Nochange. |
| Previouschangesforcontrollingshareholders(ifapplicable) | Nochange. |
V.Otherrelevantinformation
CPAengagedbytheCompany
| NameofCPA | Ernst&YoungCPA(SpecialGeneralpartnership) |
| Officesadd.forCPA | 21/F,ChinaResourcesBuilding,No.5001,ShennanEastRoad,LuohuDistrict,Shenzhen |
| Signingaccountant | LiJianguang,LiYuanfen |
SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableFinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableVI.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
| 2019 | 2018 | Changesoverlastyear | 2017 | |
| Operatingincome(RMB) | 52,045,764,143.21 | 43,122,385,521.23 | 20.69% | 41,263,393,427.41 |
| Netprofitattributabletoshareholdersofthelistedcompany(RMB) | 1,271,289,183.01 | 1,210,742,435.78 | 5.00% | 1,057,791,930.67 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB) | 1,226,765,271.97 | 1,175,971,967.39 | 4.32% | 1,035,461,581.00 |
| Netcashflowarisingfromoperatingactivities(RMB) | 2,000,352,083.20 | 1,322,606,352.27 | 51.24% | 1,285,291,911.82 |
| Basicearningspershare(RMB/Share) | 2.97 | 2.83 | 4.95% | 2.47 |
| Dilutedearningspershare(RMB/Share) | 2.97 | 2.83 | 4.95% | 2.47 |
| WeightedaverageROE | 10.43% | 11.56% | 1.13percentagepointsdown | 11.91% |
| Endof2019 | Endof2018 | Changesoverendoflastyear | Endof2017 | |
| Totalassets(RMB) | 33,520,609,123.67 | 28,930,300,519.97 | 15.87% | 22,343,643,527.77 |
| Netassetsattributabletoshareholderoflistedcompany(RMB) | 12,806,410,865.92 | 11,618,432,603.28 | 10.22% | 9,396,572,345.88 |
Note:WeightedaverageROEwasdownby1.13percentagepointsfromayearearlier,mainlyduetotheimpactoftheindustrypolicy,grossmargindeclineintheperiodandprofitmarginnarrowing.VII.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.VIII.Quarterlymainfinancialindex
InRMB
| Firstquarter | Secondquarter | Thirdquarter | Fourthquarter | |
| Operatingincome | 11,879,309,078.82 | 13,348,838,298.61 | 13,647,793,431.64 | 13,169,823,334.14 |
| Netprofitattributabletoshareholdersofthelistedcompany | 300,149,012.08 | 350,684,348.32 | 311,310,706.52 | 309,145,116.09 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses | 297,420,355.99 | 342,280,091.96 | 303,365,280.52 | 283,699,543.50 |
| Netcashflowarisingfromoperatingactivities | -759,367,352.29 | 1,923,124,933.64 | -90,795,420.13 | 927,389,921.98 |
Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport
□Yes√No
IX.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMB
| Item | 2019 | 2018 | 2017 | Note |
| Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets) | 2,340,925.97 | 7,048,337.10 | -203,279.86 | Thegainsfromfixedassetsdisposal. |
| Governmentalsubsidyreckonedintocurrentgains/losses(notincludingthesubsidyenjoyedinquotaorrationaccordingtonationalstandards,whicharecloselyrelevanttoenterprise’sbusiness) | 49,299,242.48 | 30,098,383.86 | 26,854,027.03 | Mainlyforreceivingofallkindsofspecialsubsidiesandfiscalinterestdiscountintheperiod. |
| Investmentcostswhileacquiringsubsidiaries,jointventuresandassociatedenterprise,lessthanfairvalueoftheidentifiablenetassetsfrominvestedenterprisewhichshouldbeenjoined | 14.65 | 729.29 | 58,022.12 | Negativegoodwillfromsubsidiaryacquisition. |
| Currentnetgain/lossesofthesubsidiarymergerunderthesamecontrolfrombeginningoftheperiodtocombinationdate | -1,096.00 | |||
| Switchbackofprovisionfordepreciationofaccountreceivableandcontractassetsthatareindividuallytestedforimpairment | 1,310,345.38 | 5,301,091.66 | 1,642,360.26 | |
| Gainsandlossesfromexternalentrustedloans | 3,460,037.16 | 3,246,925.69 | 1,907,519.89 | ThegainsobtainedfromofferingentrustloanstoChinaNationalZhijun(Suzhou). |
| Consigningfeereceivedforconsignedoperation | 516,929.44 | |||
| Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems | 17,179,002.78 | 5,069,438.37 | 377,281.07 | Thenon-operatingincomerecognizedforwrittenofftheunpaidpayments |
| Othergains/lossessatisfyadefinitionofextraordinarygains/losses | 508,168.93 | 1,445,926.01 | 134,740.70 | |
| Less:Impactonincometax | 17,317,723.70 | 12,137,071.11 | 6,690,220.38 | |
| Impactonminorityshareholders’equity(post-tax) | 12,256,102.61 | 5,820,221.92 | 1,749,005.16 | |
| Total | 44,523,911.04 | 34,770,468.39 | 22,330,349.67 | -- |
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
TheCompanycomplieswiththedisclosurerequirementofInformationDisclosureGuidelinesfortheShenzhenStockExchangeNo.8-ListingCompanyEngagedinRetailingIndustryInthereportingperiod,themainbusinessofSinopharmAccordincludespharmaceuticaldistributionandpharmaceuticalretail,specificallyasfollows:
(i)Inthepharmaceuticaldistributionfield,thecompanycontinuestointegratethedistributionandlogisticsbusiness,deeplypenetratesintotheendmarkets,improvesthesteppeddistributionnetwork,createsintelligentsupplychain,anddevotestobecomeaproviderforpharmaceuticalandhealthcareproductsandserviceswiththestrongestinfluence,thehighestshare,themostcompletevariety,thebestservice,andthefastestdeliveryinsouthdistrictofChina.
1.TheCompany’spharmaceuticaldistributionbusinessisestablishedinGuangdongandGuangxi,thecompanyhascompletedthenetworkconstructionofGuangdongandGuangxiin2013,andthebusinesshasextendedtothecounty-levelregions;in2014,weacceleratingtheintegrationofthree-tiercompaniesandtheCompanyachievedanoperationalloverthenetworkin2015.Thenetworkfurtherexpandedin2019andmaindevelopmentdirectionisretailterminalswhichincludes:Afteroptimizingandadjustingthetypesofcustomersin2019,thereare959second-andthird-tiermedicalinstitutions,6,807primary-levelmedicalcustomers,and4,479retailterminalcustomers(chainpharmacies,singlestores,andself-payingpharmaciesinhospitals).
2.TheCompany’spharmaceuticaldistributionbusinesshasachievedthefirstscaleinGuangdongandGuangxiandtheleadingpositioninmarketsegmentofGuangdongandGuangxi,andhasobtainedtherelativelyleadingpositioninvaccine,instrument,ande-commerceindustries.(ii)Inthepharmaceuticalretailfield,GuodaDrugstoreisapharmaceuticalretailenterprisethatranksthefirstinthesalesvolumethroughoutthecountry,andisoneofthefewenterprisesinChinawithnationaldirectsalesdrugretailnetwork.Bytheendof2019,GuodaDrugstorehasoperated5021stores,covering20provinces,autonomousregionsandmunicipalities,enteringnearly71largeandmediumsizedcities,whichhasformedadrugstorenetworkscoveringeasternandnorthernChina,southerncoastalcities,andgraduallyexpandedintonortheast,centralplainsandinlandcities,thesalesscaleofwhichhasexceeded10billions,rankingthefirstwithinindustry;Guodadrugstore,thebusinessofwhichweremainlyrelyingonmodernretaildrugstores,hasbeenputtinggreatattentiononthedevelopmentofprofessionalservicesystemwithmedicalresourcesascorecompetitiveness,buildingagroupofstoreswithprofessionalcommercialactivities,whichareabletoprovideretailsandtherapyservicesthatintegratingmedicalserviceandhealth-careproductssalesandcooperatewithhospitals;atthesametime,theCompanyhasbeenvigorouslydevelopingnewbusiness,exploringandexpandingnewsaleschannels,improving
professionalservices,beingdedicatedtotransitfromatraditionalmedicalretailintoaninnovativeserviceenterprise.Bymeansofconventionalproductsretailmanagement,improvingmajorbrandsandexploringbusinesscooperationwithsupplier,acceleratingtheestablishmentandimprovementofDTPbusinessandcontinuationofhealthcareservicesystem,Guodahasbuiltindustry-leadingprofessionalserviceability.
II.Majorchangesinmainassets
1.Majorchangesinmainassets
| Majorassets | Noteofmajorchanges |
| Equityassets | Increased327.0559millionYuanoverthatofperiod-beginwith17.27%rateofchange,mainlybecausetheinvestmentincomefromjointventuresincreasedandchangeofthefairvalueofotherequityinstrumentinvestment. |
| Fixedassets | Increased4.6661millionYuanoverthatofperiod-beginwith0.77%rateofchange,nomajorchangesinthereportingperiod. |
| Intangibleassets | Increased739,600Yuanoverthatofperiod-beginwith0.23%rateofchange,nomajorchangesinthereportingperiod. |
| Constructioninprogress | Decreased4.83millionYuanoverthatofperiod-beginwith-13.26%rateofchange,mainlybecausetheERPsystemconstructionwastransferredtointangibleassetsforcompletionandthesupplychainextensionprojecttransferredtofixedassetsintheperiod. |
| Right-of-useassets | Increased1955.4611millionYuanoverthatofperiod-beginwith100%rateofchange,mainlyduetotheimplementationofnewleasestandardsintheperiod. |
2.Mainoverseasassets
□Applicable√Notapplicable
III.Corecompetitivenessanalysis
1.StrongnetworkcoverageandlayoutRelyingontheperfectdistributionnetworkandvarietyresources,SinopharmAccordhasunifiedthewholesaleandretailresources.ThecompanyhasacompletedrugdistributionnetworkintheGuangdongandGuangxiregions,comprehensivelycoveringthesecond-andthird-tiermedicalinstitutionsandretailchainterminalsofGuangdongandGuangxiprovinces,inrecentyears,ithasseizedtheopportunityofdevelopingretailcustomers,andvigorouslyexpandeddistribution-relatedretailpharmacies,small-scalesocialmedicalservicesandotherrelatedformats,ofwhichthebusinesssaleshaveachievedrapidgrowth.SinopharmAccordhasretailnetworkleadinginscaleandcoveringthewholecountry,GuodaDrugstorehasretailchainnetworkspreadingover20provinces,municipalitiesandautonomousregions,coveringnearly71citiesnationwide.
2.AbundantvarietyresourcesInthepharmaceuticaldistribution,thecompanyhasestablishedextensivecooperativerelationswiththousandsofdomesticmanufacturersandcommercialenterprisesandestablishedstablebusinessrelationshipswithhundredsofimportandjointventuremanufacturers,andhasrichvarietyresources.GuodaDrugstoreoperatesnearly120,000merchandises.Withitsrelativelycomprehensivepurchasingnetworkandyearsofexperienceincommoditymanagement,GuodaDrugStorehasestablishedamerchandisesystemwithwidecoverage,highprofessionalization,andrichvarieties.
3.CompletelogisticsanddistributionsystemSinopharmAccorddistributionadoptssupplychainmanagementandwarehousemanagementsolutionssystem,ithasbuiltlarge-scalefirst-gradelogisticscentersinGuangzhou,Nanning,ShenzhenandotherplacesandestablisheddistributioncentersinGuangdongandGuangxiwhichhasformedladderlogisticsanddistributionnetworks,itisthefirstenterpriseinGuangdongandGuangxithathasachievedthethird-partylogisticsqualificationandhastheprofessionalpharmaceuticallogisticscapabilitieswiththelargestscale,themostextensivenetwork,andthemostcompletemodesinsouthernChina.GuodaDrugstorehasanationwidemodernlogisticsanddistributionsystem,andthelogisticswarehousesarelocatedin17provinces,has27large-and-smalllogisticswarehouses,coveringanareaofabout100,000squaremetersintotal.
4.TheadvantagesofmedicalinsuranceresourcesRegardingmedicineretails,thesubsidiariesofGuodaDrugstorehavefeaturedgenerallyhighermedicalinsuranceacquiringability,withhighermedicalinsurancesalesratioandsteadyoperation.
5.TheadvantagesofComplianceTheCompanyhadabigleadunderanincreasinglystringentregulatoryenvironmentforthereasonthatithaskeptemphasizinglegalizationandcomplianceintheprocessofoperationandmanagement.
6.Unique-influenceSinopharmbrandBrandoftheCompanyanddistribution,industrychild-brandandcontrollingshareholderandactualcontroller’sbrandcomedowninonecontinuousline,dependingonpowerfulforceofcentralenterprises,theCompany’spopularityandinfluenceareprominentdaybydayintheindustry.
SectionIV.DiscussionandAnalysisofBusiness
1.IntroductionIn2019,thecountrycontinuedtodeepenmedicalreform,policieswereintensivelyintroduced,andthepaceofreforminthemedicalfieldwasaccelerated.Thethree-medicalreformlinkagemechanismisbecomingmoremature,withthecentralizedpurchaseanduseofmedicinesasthebreakthrough,thefeecontrolofmedicalinsurancehasachievedinitialresults,andthepurchaseamountpolicyisbecomingmorenormal,andtheindustrialstructureofdrivingsupplyendhasundergonein-depthreforms,theadjustmentoftheproductstructureatthepaymentendhasaccelerated,andtheconcentrationatthecirculationendhasacceleratedwhilebearingpressure,thebusinessmodel,transactionform,andindustrypatternhavecontinuedtochange.SinopharmAccordhasseizedopportunitiesinthechange,closelycenteredonSinopharmHolding’s“3+2”strategicguidance,andcontinuouslypromotedthestrategicmeasureswith“technologyempowerment,serviceupgrade,wholesale-retailintegration,andproduction-financingdualdrive”asthecore,andgraspedthethreethemesof“solidfoundation,transformationandinnovation,andensuringdevelopment”,focusedonmarketshareandsupplychainperformanceimprovement,andachievedstablegrowthinscaleandoveralloperatingefficiency.In2019,theoperatingincomeoftheCompanyaccumulatedto52.046billionyuanwithay-o-yof20.69%up;operationprofitamountedto1.836billionyuan,a9.85%growthfromayearearlier;thenetprofitattributabletoshareholdersoflistedcompanyamountedto1.271billionyuan,ay-o-ygrowthof5.00%.In2019,theoperatingincomefromdistributionbusinessoftheCompanyaccumulatedto40.014billionyuanwithay-o-ygrowthof22.15%,alltypesofthebusinesshaveachievedrapidgrowthbyfurtherexpandingandconsolidatingtheadvantagesofdirectsellingbusiness,enhancingthecoverageofgrassrootsmedicalinstitutionsinbreadthanddepth.Ofwhich:hospitaldirectsellinghasagrowthof21.84%onay-o-ybasis,directsellingfromothermedicalinstitutionshavegrowthof31.64%onay-o-ybasis,directsellingfromretailachieveda
32.94%upfromayearearlier,equipmentconsumablesbusinesshave47.65%growthonay-o-ybasis,retaildiagnosisandtreatmentbusinesshave63.05%growthonay-o-ybasisandthedistributionbusinessofSinopharmAccordachievedanetprofitof846millionyuanforyearof2019,ay-o-ygrowthof18.19%.TheoperatingincomefromGuodaDrugstoreaccumulatedto12.754billionyuanwithay-o-ygrowthof17.24%in2019.Allbusinesshavedevelopedsteadily,ofwhich,thedirectoperationhasay-o-ygrowthof12.97%,DTPgrowth32.10%onay-o-ybasis,OTOhasay-o-ygrowthof33.11%,wholesalebusinesshaveay-o-ygrowthof64%andthefranchisebusinessgrowthratewas6.00%.GuodaDrugstoreachievednetprofitof312millionyuanin2019,a3.37%upfromayearearlierandthecumulativenetprofitattributabletoparentcompanyamountedas246millionyuanwithay-o-ygrowthof5.95%.
In2019,theinvestmentincometoassociatedenterpriseaccumulatedas331millionyuan,ay-o-ygrowthof
3.52%.(i)Workoverviewforyearof2019
1.Continuedtopromotethecorestrategyofwholesale-retailintegration,andenhancedthesynergyofbusinessformatsDeeplyimplementedthedevelopmentstrategyofwholesale-retailintegration,andpromotedthewholesale-retailintegrationwithindistributioncompaniesandthewholesale-retailintegrationofdistributioncompaniesandGuoda.Onthebasisofnetworklinkage,coordinatedtheeffectiveallocationandcirculationofresourcesamongvariousformatsandregions,enhancedcoordinationandcomplementarity,formedsynergy,andexploredtheformationoforganizationalintegrationmodel,businessintegrationmodel,equityintegrationmodel,andmemberstoremodel,coordinatedlogistics,supplychain,informationandotherbackgroundsystems,gavefullplaytoscaleandsharingeffects,simplifiedtheoperationprocess,andrealizedtheinteroperabilityofsupplychainmanagementsystems.
2.Speededupmergersandacquisitions,continuedtooptimizenetworklayout,andconstantlyexpandedstrategiclayoutActivelypromotedinvestmentprojectsandachievedbreakthroughsinoutboundmergersandacquisitions.Duringthereportingperiod,thecompanyinitiatedtheacquisitionofShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.(indirectlypurchasedSinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.),PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.,Pu’erSongmaoJi’antangPharmaceuticalCo.,Ltd.,andGuodaDrugstore(Chaoyang)RenaiPharmacyCo.,Ltd.,theretaillayoutstrategyhasadvancedintoJilinProvinceandYunnanProvince;completedinvestmentintheestablishmentofSinopharmAccordPharmaceuticalSupplyChain(Shenzhen)Co.,Ltd.,SinopharmHoldingGuozhiDrugStore(Heyuan)Co.,Ltd.,LiaoningGuodaPharmaceuticalCo.,Ltd.,SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.,andSinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.Asoftheendof2019,thenumberofholdingsubsidiariesofSinopharmAccordhasincreasedto110,andthestoresofGuodaDrugstorereached5,021(excludingnewmergersandacquisitionsofJilinTianheandYanghetang,JilinTianheandPudongNewAreaofShanghaiPharmaceuticalMedicinecompletedtheindustryandcommercechangesinJanuary2020whicharenotincludedinthescopeofconsolidatedfinancialstatementfor2019),atotalof83retailstores.
3.Technologyenergized,promoteddigitaltransformation,andimprovedsupplychainefficiencyStarteddigitaltransformation,upgradedservicecapabilities,andbuiltdigitalmanagementandcontrolplatformssuchassupplychainservices,omni-channelmembershipservices,andnewbusinessservices.Externallyimprovedtheexternalsupplychaindockingsystem,expandedthewholemedicinenetwork,GPO,provincialplatform,medicalinsuranceinterfacefunctionsandtheupstreamanddownstreamcustomerinformationinterconnection,independentlydevelopedFYCMSsystemandAVG,intelligentconveyorlineandotherautomatedequipmentdockingsystem,andupgradedC-endusersexperience;internallyupgradedtheinternal
supplychainsystems,includingretailsystemupgrades,distributionsystemupgrades,logisticsvisualizationupgrades,andcollaborativesharingandexpansion.
4.Indistributionbusinesssegment,maintainedstrategicstrength,focusedonservicetransformationandupgrading,andcontinuedtoenhancebusinessadvantages
(1)Tooktheinitiativetoseizepolicyopportunitiessuchas“4+7”,GPO,nationaltalks,etc.,andeffectivelygainedmarketshareunderthegeneraltrendofdrugpricereduction.TheleadingpositioninGuangdongandGuangxiprovincescontinuedtobestable,GuangzhouandShenzhenhaveachievedagoodstartin4+7centralizedprocurementandexpansion,andobtained25varietiesofdistributionrights,including5exclusivevarieties,andthegrossprofitmarginofthewinningvarietyincreasedby1.75%overthepreviousyear.IntermsofGPO,manysubsidiariesovercamethedifficultiesanddrovethemarketshareincreasewhenfacingmulti-platformparallel;atthesametime,eachsubsidiaryrespondedquicklyandcarriedoutan“ice-breakingaction”againsttheoriginaltrusteehospitalstoincreasethehospitals’marketshares.
(2)ContinuedtopromotethefourmajorbusinessdirectionsandpushthetransformationandupgradingofbusinessstructureThetraditionalbusinesswasfurtherenlargedandstrengthened,themarketsharecontinuouslyincreased,andtheleadingadvantagewasconstantlyconsolidated.Thedirectsalesformatincreasedby23%onayear-on-yearbasis,andthefourmajorbusinessdirectionsofretaildirectsales,retaildiagnosisandtreatment,primarymedicalcare,andequipmentconsumableshavemaintaineddouble-digitgrowth.
1)Retaildiagnosisandtreatment:theretailnetworklayoutofGuangdongandGuangxihasbeenfurtherimproved,asoftheendofthereportingperiod,atotalof83retailpharmacieshavebeenopened.In2019,thecompanyopened15newpharmacies,completedthepositioningin20citiesinGuangdongandGuangdong,andcarriedoutthesecondstageofin-depthdeploymentinGuangdongProvince;integratedmedicalinsuranceandrealized20prescriptionhospitals;accelerateddevelopmentofkeyproducts,introduced27newDTPproducts;increased4newareaswithmedicalinsurancequalification;createdapatient-centeredprofessionalpharmacymanagementservicesystemtoachievebrandspecialization,managementandcontrolrefinement,andhigh-qualityservice.
2)Retaildirectsales:thesalesscaleofthetop100nationalchaincustomershasmaintainedrapidgrowth,andthechannelgatheringstrengthofwholesale-retailintegrationprojectshasbeencontinuouslyintensified;theterminalnetworkcoverageofGuangzhouandShenzhenhasexceeded35%,andcooperatedwiththesubsidiariesinvariousregionstomaximizeresources;upgradedandimprovedtheB2Bplatformoperationfunctionmodule,PConlinepayment,APPHengxingmemberarea,mobileterminalapplicationcapabilitieshavebeensignificantlyimproved;expanded320memberstores,empoweredterminals,andimprovedmemberstoremanagementandservicemodels.
3)Instrumentconsumables:SPDmedicalconsumablescomprehensiveserviceplatformversion2.0wasdevelopedandlaunchedtorealizetheupgradeofinformationsuchastheorthopedicsmanagementmoduleofthe
newconsignmentmodel;graduallyestablishedcomprehensiveservicesolutionproviderbrandswithindustryinfluencebycreatingmodelhospitalprojectsandcopyingandpromoting,amongwhich,8projectsincluding“multi-warehousingintegratedsmartsupplychain”,“FineManagementofMedicalConsumablesofGuangzhouWomenandChildren’sMedicalCenter”andsoonwereawardedthe“BestPracticeCaseofPharmaceuticalSupplyChainin2019”and“TopTenPharmaceuticalSupplyChainServiceInnovationCases”byChinaAssociationofPharmaceuticalCommerce.
4)4Dbusiness:thereagentbusinesshasestablishedthetopthreehospitalmodel,andsalesandgrossprofitmarginshavecontinuedtoincrease;equipmentmaintenancebusinesshascompletedthesigningofcontractfor24projects;disinfectionsupplybusinesshasachievedcooperationwith21medicalinstitutions.
(3)ContinuedtopromotetheadvantagesofintegratedoperationsandempowertheentirebusinesschainGavefullplaytothe“managementandguide”advantagesoftheintegratedmanagementplatform,energizedtheoperationintegrationofsubsidiariesinGuangdongProvince,andstimulatedthetransformationandinnovationofthesubsidiaries;promotedthedistributionintegrationplatformconstructionofGuangxi,launchedfullintegrationcomprehensiveintegrationfromtheaspectsoforganizationalstructureconstruction,procurement,logistics,functions,etc.;carriedoutintegrateddockingandcomprehensivebudgetsystemconstructionfornewmergingcompanies.
5.Inretailbusinesssegment,continuedtodeepenthenetworklayout,focusedonbrandbuilding,andexplorednewbusinessmodels
(1)ContinuedtopromotetherapidexpansionofstoresandimprovethequantityandqualityofstoreexpansionAttheendof2019,thetotalnumberofstoresofGuodaDrugstorewas5,021,ofwhich3,744weredirect-operatedstores;thenetincreaseinthenumberofstoreswas746,ofwhich608werenewlyopeneddirect-operatedstoresandfranchisedstores,andanetincreaseof138mergersandacquisitions(excludingJilinTianhe,Yanghetang);theexpansionofstoresaroundthehospitalscontinuedtogrow,withanetincreaseof74in2019.TheretaillayoutstrategyhasadvancedintoJilinandYunnan,newlydevelopedsevencitiesintheexistingprovinces,continuedtoexpandtheadvantageousregionssuchasShenyang,InnerMongolia,WanminandYiyuan,achievednewbreakthroughsintheexpansioninGuangdong,Shandong,Xinjiang,GuangxiandQuanzhou,andtheenterprisescaleandmarketsharehavefurtherincreased.
(2)WBAcooperationwasfurtherpromoted,andbrandandservicewerecontinuouslyoptimizedSinceWBAincreaseditscapitaltoenterGuodaDrugstorein2018,afternearlytwoyearsofrunning-in,thetwosideshaveformedagoodprojectteamcooperationmechanism.LearnedtheadvancedmethodologyofWBA,connectedandrepeatedlydiscussedwiththeWBAprofessionalteam,sortedoutandoptimizedtheexistingproducts,determinedthelocalizedbrandpromotionstrategyandspecificpath,vigorouslydevelopednewvarietiesandcultivatedpotentialvarieties.InJanuary2019,GuodaDrugstoreandWBAlaunchedthe“newconcept”pilot
pharmacyinShanghai,whichachievedgoodresultsandsummarizedtheexperiencetofacilitatethereplicationandpromotionofthemodel.
(3)Acceleratedthelayoutofinnovativebusiness,andcomprehensivelydevelopedmultipleformatsofe-commercebusinessE-commercebusinessincreasedby29.7%onayear-on-yearbasis,e-commerceO2Obusinesscoveredmorethan2,800stores,withanaveragedailyordervolumeof12,000orders.B2Cbusinessdevelopedyaofang.com,1Drugstore,pinduoduoandotherchannels.Withtheadvantagesofexistingnetworks,products,shopassistants,etc.,improvedself-operatedO2OplatformssuchasWeChatMallandAPP,realizedvalue-addedservices,realizedseamlessconnectionofmembercenter+mall+healthycommunitysystem;realizedhomedeliveryofdrugs,onlinedrugsearch,andonlineandofflineconsumptionrecords.
(4)OptimizedmembermanagementmechanismandbuiltaprofessionalpharmacysystemwithchronicdiseaseasthecoreContinuedtopromotethecustomerhealthmanagementsystem,increasedcustomerstickinessthroughmembermanagement,onlinehealthcommunityAPP,andpatienteducation.Developedmembermanagementappletstoachieveonlineandofflineintegrationofmembers,integratedmembercenter,micromall,healthycommunity,POSsystemconsumptiondatainterflow,andincreased2.26millionnewactivemembersduringtheyear.Inordertocontinuouslystrengthentheteamofpharmacistsandcontinuetooptimizepharmaceuticalservices,morethan1,000offlinepharmacyprofessionaltrainingsandmorethan3,600patienteducationswereconductedin2019,theinternallicensedpharmacisttraininghasachievedremarkableresults,andmorethan1,700diabetesspecialistsandmorethan1,500hypertensionspecialistshavebeentrainedtorealizethenormalizationofchronicdiseasetraining.
(5)Promotedtheconstructionofprovincial-levelplatformsandstrengthenedregionalnetworkcultivationEstablishedandimplementedprovincial-levelplatformareas,exploredprovincial-levelplatformconstructionschemesfromcorporategovernance,businessarchitecture,platformcharacteristics,etc.,determinedbusinessstructureandpositioning,combineddifferentregionalpolicies,andpromotedthedevelopmentofmultiplemodelsbasedonbusinesscharacteristics.TheInnerMongoliaGuodaprovincial-levelplatforms,theFujianGuodaprovincial-levelplatforms,andtheShenyangGuodaprovincial-levelplatformshavebeenestablished;theprovincial-levelplatformsofJiangsu,Beijing,Guangdong,andAnhuiareunderconstruction.
TheCompanycomplieswiththedisclosurerequirementof“InformationDisclosureGuidelinesfortheShenzhenStockExchangeNo.8-ListingCompanyEngagedinRetailingIndustry”(ii)Operationoftheretailstoresinreportingperiod:
1.Bytheendof2019,GuodaDrugstorehas3,744direct-salestores,salesrevenue(tax-free)amountedto9.956billionyuan;andhas1,277franchisedstores,thedistributionrevenue(tax-free)amountedas1.101billionyuan.
| Region | Direct-salestore | Franchisedoutlet |
| Numbers | Salesrevenue(in10thousandYuan) | Numbers | Distributionrevenue(in10thousandYuan) | |
| North | 1,798 | 526,177.54 | 449 | 43,460.03 |
| EastChina | 858 | 219,119.99 | 589 | 52,956.27 |
| SouthChina | 543 | 142,588.33 | 123 | 8,307.84 |
| CentralChina | 285 | 51,799.48 | 116 | 5,354.30 |
| Northwest | 260 | 55,898.78 | - | - |
| Total | 3,744 | 995,584.12 | 1,277 | 110,078.44 |
Note:North:Liaoning,Shanxi,InnerMongolia,Beijing,Tianjin,HebeiEastChina:Shanghai,Jiangsu,Anhui,Shandong,Fujian,ZhejiangSouthChina:Guangdong,GuangxiCentralChina:Henan,HunanNorthwest:NingxiaXinjiang
(1)Toptenstoresinsales:
| Serial | Region | Storename | Openingyear | Operatingmode | Businessformat | Actualoperatingarea(M2) | Propertyownership |
| 1 | Shanxi | ZhongliBranch | 2002 | Direct-sale | 5+X | 821.80 | Propertyrental |
| 2 | Guangdong | Shenzhenexhibitionhall | 2006 | Direct-sale | ModernPharmacy | 260.00 | Propertyrental |
| 3 | Shaanxi | EryuanBranch | 2011 | Direct-sale | 5+X | 629.90 | Propertyrental |
| 4 | Yangzhou | JiangsuBaiyulan | 1991 | Direct-sale | ModernPharmacy | 970.00 | Propertyrental |
| 5 | InnerMongolian | Headquarter | 2003 | Direct-sale | 5+Xstore | 1,689.26 | Propertyrental |
| 6 | Beijing | XidanJinxiang | 1997 | Direct-sale | ModernPharmacy | 773.16 | Propertyrental |
| 7 | Fujian | XiamenNewSpecialMedicine | 2005 | Direct-sale | ModernPharmacy | 132.90 | Propertyrental |
| 8 | Beijing | Yongdingmenstore | 2009 | Direct-sale | ModernPharmacy | 100.00 | Propertyrental |
| 9 | Hebei | LeRenTangHeadquarter | 2010 | Direct-sale | TraditionalChineseMedicineoutpatientstore | 1,206.00 | Propertyrental |
| 10 | Guangdong | ShenzhenLianhuaNorth | 2003 | Direct-sale | ModernPharmacy | 120.33 | Propertyrental |
(2)In2019,theCompanyhas777newstoresandclosed169stores,withanetincreaseof608stores
| Region | Direct-salestore | Franchisedoutlet | |||
| Numberofstoreincreased | Totalarea(squaremeters) | Numberofstoresshutdown | Numberofstoreincreased | Numberofstoresshutdown | |
| North | 307 | 33,361.38 | -59 | 133 | -6 |
| EastChina | 98 | 14,767.67 | -33 | 34 | -23 |
| SouthChina | 48 | 4,493.89 | -12 | 65 | -9 |
| CentralChina | 25 | 2,734.38 | -7 | 14 | -4 |
| Northwest | 53 | 5,290.50 | -16 | - | - |
| Total | 531 | 60,647.81 | -127 | 246 | -42 |
(3)MedicalinsurancequalificationofthestoresAsof31December2019,theCompanyhas3,744chainstoreswithdirectlyselling,and3,201pharmacystoresobtainedthequalificationof“Designatedretailpharmaciesofmedicalinsurance”,representing85%ofthetotalpharmaciesoftheCompany.
| Region | Numberofstores | Storesobtainedthequalificationof“Designatedretailpharmaciesofmedicalinsurance” | Ratiointotalpharmaciesinregions |
| North | 1798 | 1599 | 89% |
| EastChina | 858 | 648 | 76% |
| SouthChina | 543 | 478 | 88% |
| CentralChina | 285 | 246 | 86% |
| Northwest | 260 | 230 | 88% |
| Total | 3744 | 3201 | 85% |
2.Changeofmainsellingindex
| Year | Percustomertransaction(RMB) | Proportionofprescriptiondrugs | Proportionofmedicalinsurancesalesindirect-salestores | Proportionofthedirectmembersales | Proportionoftransactiontimesofdirectmembers |
| 2018 | 74 | 51% | 39% | 67% | 55% |
| 2019 | 86 | 53% | 38% | 67% | 57% |
(1)Classifyaccordingtoregion
| Region | Amountofsalesgrowth(tax-free,in10thousandyuan) | Grossmargin | Netprofitratio |
| North | 108839 | 25% | 3% |
| EastChina | 35780 | 24% | 3% |
| SouthChina | 24457 | 25% | 2% |
| CentralChina | 6927 | 30% | 1% |
| Northwest | 10137 | 31% | 3% |
(2)Operatingefficiencyofdirect-salestoresinreportingperiod
| Region | Numberofstores | Operatingareaofthestores(squaremeters) | Dailyaverageefficiency(tax-included,Yuan/SquareMeters) | Rentalefficiency(tax-included,annualsalesvolume/rental) |
| North | 1798 | 231659 | 72 | 16 |
| EastChina | 858 | 109032 | 62 | 15 |
| SouthChina | 543 | 60006 | 72 | 15 |
| CentralChina | 285 | 34093 | 47 | 12 |
| Northwest | 260 | 32371 | 53 | 19 |
Note:Dailyaverageefficiency=Averagedailyoperatingincome/Operatingareaofthestores;Averagedailyoperatingrevenue=Operatingrevenue(tax-included)ofthestoreintheYear/OperatingdaysofstoreintheYear.Rentalefficiency=Annualsalesvolume/Rental
3.Structureofthecategoryatretailterminal
| Category | 2019 | 2018 |
| Healthfood | 5.54% | 6.62% |
| Conveniencefood | 0.82% | 1.01% |
| RxDrug | 53.00% | 50.71% |
| OTC | 25.97% | 26.56% |
| Personalcare | 1.07% | 1.25% |
| Homeconvenience | 0.21% | 0.24% |
| Householdhealthproducts | 4.37% | 4.35% |
| ChineseHerbalMedicine | 4.44% | 5.10% |
| Proportionofothercategories | 4.59% | 4.16% |
4.Purchasingandsupplies:
GoodssuppliersofGuodaDrugstorearemainlyexternalsuppliersandassistaffiliatedenterpriseofSINOPHARMandprivatebrands.Topfivesuppliersforyearof2019:
| Suppliers | Purchaseamount(taxincluded) | Procurementratio |
| No.1 | 190,416,568 | 13% |
| No.2 | 156,099,814 | 10% |
| No.3 | 117,609,986 | 8% |
| No.4 | 111,068,408 | 7% |
| No.5 | 94,709,145 | 6% |
5.Warehousinglogistics:
In2019,GuodaDrugstorehas27largeandsmallsizedlogisticwarehousesintotal,coveringmorethan100,000squaremeters,spreadingoutacross17provinces.
| Province | Region | Warehousearea(M2) | Managementownership |
| Liaoning | Shenyang | 18,821 | Self-management |
| Guangdong | Guangzhou | / | Delegation |
| Shenzhen | |||
| Jiangmen | / | Delegation | |
| Shanxi | ShanxiWanmin | 10,919 | Self-management |
| ShanxiYiyuan | / | Delegation | |
| Jiangsu | Dadesheng | 4,869 | Self-management |
| Nanjing | 2,200 | Self-management | |
| Liyang | 1,920 | Self-management | |
| Fujian | Fujian | 5,688 | Self-management |
| Quanzhou | 1,096 | Self-management | |
| Hebei | Hebei | 4,300 | Self-management |
| Shandong | Shandong | 4,800 | Self-management |
| Ningxia | Ningxia | 3,300 | Self-management |
| Hunan | Hunan | 3,600 | Self-management |
| Henan | Henan | 3,610 | Self-management |
| InnerMongolia | InnerMongolia | 5,236 | Self-management |
| Guangxi | Guangxi | 1,950 | Self-management |
| Beijing | BeijingGuoda | / | Delegation |
| BeijingJinxiang | |||
| Tianjin | Tianjin | / | Delegation |
| Anhui | Anhui | 1,000 | Self-management |
| Xinjiang | Xinjiang | 3,517 | Self-management |
| Shanghai | ShanghaiFumei | 20,000 | Self-management |
| ShanghaiGuoda | |||
| Hangzhou | 974 | Self-management | |
| GuodaHeadquarter | Headquarter | / | Delegation |
| Total | 97,799 |
II.Mainbusinessanalysis
1.OverviewFoundmoreinI.IntroductioninDiscussionandAnalysisofBusiness
2.Revenueandcost
(1)Constituteofoperationrevenue
InRMB
| 2019 | 2018 | Increase/decreasey-o-y | |||
| Amount | Ratioinoperationrevenue | Amount | Ratioinoperationrevenue | ||
| Totalofoperationrevenue | 52,045,764,143.21 | 100% | 43,122,385,521.23 | 100% | 20.69% |
| Accordingtoindustries | |||||
| Pharmaceuticaldistribution | 38,886,408,981.79 | 74.72% | 31,866,749,848.53 | 73.90% | 22.03% |
| Retailpharmacy | 13,000,514,605.28 | 24.98% | 11,110,718,685.75 | 25.77% | 17.01% |
| Others | 158,840,556.14 | 0.30% | 144,916,986.95 | 0.33% | 9.61% |
| Accordingtoproducts | |||||
| Pharmaceuticals | 48,181,069,748.36 | 92.57% | 40,634,670,075.31 | 94.23% | 18.57% |
| Medicaldevicesanddisposables | 2,756,591,633.83 | 5.30% | 1,589,598,645.85 | 3.69% | 73.41% |
| Diagnosticreagents | 692,370,435.53 | 1.33% | 548,790,740.10 | 1.27% | 26.16% |
| Medicalequipments | 256,891,769.35 | 0.49% | 204,409,073.02 | 0.47% | 25.68% |
| Others | 158,840,556.14 | 0.31% | 144,916,986.95 | 0.34% | 9.61% |
| Accordingtoregion | |||||
| Domesticrevenue | 52,045,764,143.21 | 100.00% | 43,122,385,521.23 | 100.00% | 20.69% |
(2)Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit
√Applicable□Notapplicable
InRMB
| Operatingrevenue | Operatingcost | Grossprofitratio | Increase/decreaseofoperatingrevenuey-o-y | Increase/decreaseofoperatingcosty-o-y | Increase/decreaseofgrossprofitratioy-o-y | |
| Accordingtoindustries | ||||||
| Pharmaceuticaldistribution | 38,886,408,981.79 | 36,461,461,480.13 | 6.24% | 22.03% | 22.67% | -0.49% |
| Retailpharmacy | 13,000,514,605.28 | 9,783,657,583.20 | 24.74% | 17.01% | 18.45% | -0.92% |
| Accordingtoproducts | ||||||
| Pharmaceuticals | 48,181,069,748.36 | 42,826,247,612.34 | 11.11% | 18.57% | 19.65% | -0.80% |
| Accordingtoregion | ||||||
| Domesticrevenue | 52,045,764,143.21 | 46,292,408,840.53 | 11.05% | 20.69% | 21.74% | -0.77% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
(3)IncomefromphysicalsaleslargerthanincomefromlaborsYes
(4)Fulfillmentofthecompany’ssignedsignificantsalescontractsuptothisreportingperiod
□Applicable√Notapplicable
(5)Constituteofoperationcost
InRMB
| Industries | Item | 2019 | 2018 | Increase/decreasey-o-y | ||
| Amount | Ratioinoperationcost | Amount | Ratioinoperationcost | |||
| Pharmaceuticaldistribution | Salescost | 36,461,461,480.13 | 78.77% | 29,722,775,504.05 | 78.17% | 22.67% |
| Retailpharmacy | Salescost | 9,783,657,583.20 | 21.13% | 8,259,946,674.34 | 21.72% | 18.45% |
| Others | Othercost | 47,289,777.20 | 0.10% | 41,386,452.76 | 0.11% | 14.26% |
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
√Yes□NoDetailsofthechangesinthescopeofconsolidationinreportingPeriodcanbeseeninNoteVIofFinancialReport.
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod
□Applicable√Notapplicable
(8)MajorsalesandmainsuppliersMajorsalesclientoftheCompany
| Totaltopfiveclientsinsales(RMB) | 2,343,009,103.83 |
| Proportionintotalannualsalesvolumefortopfiveclients | 4.50% |
| Ratioofrelatedpartiesinannualtotalsalesamongthetopfiveclients | 0.00% |
InformationoftopfiveclientsoftheCompany
| Serial | Name | Salesamount(RMB) | Proportionintotalannualsales |
| 1 | No.1 | 584,218,124.68 | 1.12% |
| 2 | No.2 | 542,230,388.31 | 1.04% |
| 3 | No.3 | 449,040,746.73 | 0.86% |
| 4 | No.4 | 395,485,398.09 | 0.76% |
| 5 | No.5 | 372,034,446.02 | 0.72% |
| Total | -- | 2,343,009,103.83 | 4.50% |
Othersituationofmainclients
□Applicable√NotapplicableMainsuppliersoftheCompany
| Totalpurchaseamountfromtopfivesuppliers(RMB) | 7,333,904,753.96 |
| Proportionintotalannualpurchaseamountfortopfivesuppliers | 19.27% |
| Ratioofrelatedpartiesinannualtotalsalesamongthetopfivesuppliers | 2.79% |
InformationoftopfivesuppliersoftheCompany
| Serial | Suppliers | Purchaseamount(RMB) | Proportionintotalannualpurchases |
| 1 | No.1 | 3,759,825,072.02 | 9.88% |
| 2 | No.2 | 1,072,847,935.86 | 2.82% |
| 3 | No.3 | 1,061,854,652.99 | 2.79% |
| 4 | No.4 | 727,478,368.72 | 1.91% |
| 5 | No.5 | 711,898,724.37 | 1.87% |
| Total | -- | 7,333,904,753.96 | 19.27% |
OthernotesofmainsuppliersoftheCompany
□Applicable√Notapplicable
3.Expenses
InRMB
| 2019 | 2018 | Increase/decreasey-o-y | Noteofmajorchanges | |
| Salesexpense | 3,055,403,668.16 | 2,762,789,885.77 | 10.59% | Nomajorchangesoccurred |
| Managementexpense | 842,014,983.53 | 783,338,308.19 | 7.49% | Nomajorchangesoccurred |
| Financialexpense | 119,972,954.79 | 51,490,020.59 | 133.00% | Mainlyduetotheimplementationofnewleasestandardsintheperiod,theinterestexpensesoftheleaseliabilityiscalculatedaccordingtothediscountrateduringeachperiodoftheleaseterm,whiletherewasnosuchmatteroccurredinsameperiodoflastyear |
4.R&Dexpenses
□Applicable√Notapplicable
5.Cashflow
InRMB
| Item | 2019 | 2018 | Y-o-ychanges |
| Subtotalofcashin-flowfromoperationactivity | 56,559,206,916.41 | 47,475,381,467.60 | 19.13% |
| Subtotalofcashout-flowfromoperationactivity | 54,558,854,833.21 | 46,152,775,115.33 | 18.21% |
| Netcashflowfromoperationactivity | 2,000,352,083.20 | 1,322,606,352.27 | 51.24% |
| Subtotalofcashin-flowfrominvestmentactivity | 161,121,607.20 | 238,641,593.44 | -32.48% |
| Subtotalofcashout-flowfrominvestmentactivity | 401,568,622.84 | 461,099,860.32 | -12.91% |
| Netcashflowfrominvestmentactivity | -240,447,015.64 | -222,458,266.88 | -8.09% |
| Subtotalofcashin-flowfromfinancingactivity | 379,185,917.92 | 3,363,461,854.03 | -88.73% |
| Subtotalofcashout-flowfromfinancingactivity | 1,348,355,547.51 | 504,680,787.88 | 167.17% |
| Netcashflowfromfinancingactivity | -969,169,629.59 | 2,858,781,066.15 | -133.90% |
| Netincreasedamountofcashandcashequivalent | 790,559,744.71 | 3,958,618,329.29 | -80.03% |
Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata
√Applicable□Notapplicable
(1)Netcashflowfromoperationactivity:has51.24%upfromayearearlier,mainlybecausesalesofgrowthintheperiodwasbetterthanthatofthepreviousyear,thecashreceivedfromsalesofgoodsandserviceprovidingareincreasedaccordingly;andduetotheimplementationofnewleasestandards,thepaymentofrentalwasrecordedinitemofPaymentofOtherCashRelatedtoFinancingActivitieswhilenosuchmatteroccurredinthesameperiodlastyear;
(2)Subtotalofcashin-flowfrominvestmentactivity:has32.48%downfromayearearlier,mainlybecauseatsameperiodlastyear,receivedpaymentforplantandequipmentofmodernpharmaceuticalPingshanbaseandtherepaymentofentrustedloansfromassociatedenterpriseZhijunSuzhou,andnosuchmatteroccurredintheperiod;
(3)Subtotalofcashin-flowfromfinancingactivity:has88.73%downfromayearearlier,mainlybecauseatsameperiodlastyear,receivedacapitalincreaseforsubsidiaryGuodaDrugstorefromstrategicinvestorwhilenosuchmatteroccurredintheperiod;
(4)Subtotalofcashout-flowfromfinancingactivity:has167.17%upfromayearearlier,mainlyduetotheimplementationofnewleasestandardsinthePeriod,thepaymentofrentalwasrecordedinitemofPaymentofOtherCashRelatedtoFinancingActivitiesandincreaseofthedistributiondividend;
(5)Netcashflowfromfinancingactivity:has133.90%downfromayearearlier,mainlybecauseatsameperiodlastyear,receivedacapitalincreaseforsubsidiaryGuodaDrugstorefromstrategicinvestorwhilenosuchmatteroccurredintheperiod;
(6)Netincreasedamountofcashandcashequivalent:has80.03%downfromayearearlier,mainlybecauseatsameperiodlastyear,receivedacapitalincreaseforsubsidiaryGuodaDrugstorefromstrategicinvestorwhilenosuchmatteroccurredintheperiod.ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
□Applicable√Notapplicable
III.Analysisofthenon-mainbusiness
□Applicable√NotapplicableIV.Assetsandliability
1.MajorchangesofassetscompositionTheCompanyinitiallyimplementedthenewfinancialinstrumentstandard,newrevenuestandardornewleasestandardssince2019,andrelevantitemsofthefinancialstatementatyear-beginningoftheimplementationyearwereadjusted
√Applicable□Notapplicable
InRMB
| Year-endof2019 | Year-beginof2019 | Ratiochanges | Notesofmajorchanges | |||
| Amount | Ratiointotalassets | Amount | Ratiointotalassets | |||
| Cashandbankbalances | 8,882,334,845.79 | 26.50% | 8,096,158,013.24 | 26.49% | 0.01% | Nomajorchangesoccurred |
| Accountsreceivable | 10,617,981,893.52 | 31.68% | 9,336,861,647.92 | 30.55% | 1.13% | Nomajorchangesoccurred |
| Inventories | 4,947,424,591.53 | 14.76% | 4,389,335,942.19 | 14.36% | 0.40% | Nomajorchangesoccurred |
| Investmentproperties | 138,900,358.30 | 0.41% | 144,894,495.97 | 0.47% | -0.06% | Nomajorchangesoccurred |
| Long-termequityinvestment | 2,105,114,410.88 | 6.28% | 1,880,393,786.10 | 6.15% | 0.13% | Nomajorchangesoccurred |
| Fixassets | 612,599,944.11 | 1.83% | 594,067,973.91 | 1.94% | -0.11% | Nomajorchangesoccurred |
| Constructioninprogress | 31,582,575.84 | 0.09% | 36,412,614.61 | 0.12% | -0.03% | MainlybecausetheERPsystemconstructionwastransferredtointangibleassetsforcompletionandthesupplychainextensionprojecttransferredtofixedassetsintheperiod. |
| Short-termborrowings | 1,453,018,300.01 | 4.33% | 2,608,626,099.82 | 8.53% | -4.20% | Mainlyduetothedecreaseofsupplychainfinancing. |
| Long-termborrowings | 31,638,984.25 | 0.10% | -0.10% | Mainlybecausethelong-termloansarere-classifiedasnon-recurrentliabilityduewithinoneyear | ||
2.Assetsandliabilitymeasuredbyfairvalue
√Applicable□Notapplicable
1.Assetsandliabilitiesatfairvalue
2019
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 |
| Continuousmeasurementoffairvalue | |||||
| Receivablefinancing | - | 446,342,588.46 | - | 446,342,588.46 | |
| Otherinvestmentinequityinstruments | - | 116,021,000.00 | - | 116,021,000.00 | |
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 562,363,588.46 | 140,000,000.00 | 702,363,588.46 |
2018
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Continuousmeasurementoffairvalue | |||||
| Receivablefinancing | - | 567,775,275.40 | - | 567,775,275.40 | |
| Otherinvestmentinequityinstruments | - | 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.Assetsandliabilitiesdisclosedatfairvalue
2018
| Inputappliedinthemeasurementoffairvalue | |||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total |
| Level1 | Level2 | Level3 | |
| Long-termborrowings | - | 31,638,984.25 | - | 31,638,984.25 |
OtherchangesWhetherthemeasurementattributeformainassetsoftheCompanyhavechangedsignificantlyinthereportingperiod
□Yes√No
3.AssetsrightrestrictiontillendofreportingperiodNil
V.Investment
1.Overallsituation
√Applicable□NotapplicableDuringthereportingperiod,theCompanyachievedtheenterprisescombinedunderthedifferentcontrolforthefollowthreeenterprisesbycashacquisitionofSinopharmAccord(Guangzhou)PharmaceuticalCo.,Ltd.(70%),GuodaDrugstore(Chaoyang)RenaiPharmacyCo.,Ltd.(51%)andGuodaDrugstore(Pu’er)SongMaoCo.,Ltd.(60%)ThenewsubsidiariesincludingLiaoningGuodaPharmaceuticalCo.,Ltd.(100%),SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd.(51%),SinopharmAccordMedicalSupplyChain(Shenzhen)Co.,Ltd.(60%),SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.(70%)andSinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.(60%)wereestablishedintheperiodincluding.Duringthereportingperiod,thefundcontributionwascompletedfortheSinopharmHoldingGuodaDrugstoreBayabbaoerCo.,Ltd.(80%)andInnerMongoliaGuodaMedicineCo.,Ltd.(100%)andcompletedthecapitalincreasedtoSinopharmHoldingGuangzhouMedicalSupplyChainServiceCo.,Ltd.(51%),aftercapitalincreased,theshareholdingratioremainsunchanged.TheCompanyhas30%equityparticipatedinShanghaiRenbeiPharmacyCo.,Ltdand10%equityparticipatedinGuangdongJianhuiConstructionInvestmentManagementCo.,Ltdinthereportingperiod;andcompletedthecapitalincreased(29%)toassociatedenterprise-SinopharmJienuoMedicalServiceGuangdongCo.,Ltd,aftercapitalincreased,theshareholdingratioremainsunchanged.Formoreinvestmentdetails,seetheNote(vi)andNote(vii)inFinancialReport
2.Themajorequityinvestmentobtainedinthereportingperiod
□Applicable√Notapplicable
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√NotapplicableThecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√Notapplicable
Thecompanyhadnoderivativeinvestmentinthereportingperiod.
5.Applicationofraisedproceeds
√Applicable□Notapplicable
(1)Overallapplicationofraisedproceeds
√Applicable□Notapplicable
In10thousandYuan
| Year | Way | Totalraisedcapitals | TotalraisedcapitalusedinPeriod | Totalaccumulativeraisedcapitalsused | TotalraisedcapitalhaspurposeofuseschangedinPeriod | Cumulativeraisedcapitalshaspurposeofuseschangedintotal | Ratioofcumulativeraisedcapitalshaspurposeofuseschanged | Totalaccumulativeraisedcapitalsunused | Usageoftheretainedraisedcapitalsandwhatisexpectedtoinvestedwiththosecapitals | Raisedcapitalsidleformorethantwoyears |
| 2016 | Non-publicofferingofshares | 27,361.49 | 0 | 22,469.34 | 0 | 0 | 0.00% | 4,892.15 | Depositbank | 0 |
| Total | -- | 27,361.49 | 0 | 22,469.34 | 0 | 0 | 0.00% | 4,892.15 | -- | 0 |
| ExplanationonGeneralusageofraisedcapital | ||||||||||
| MoredetailsoftheuseofraisedcapitalscanbeseeninSpecialreportonthestorageandtheactualuseofraisedcapitalsofSinopharmAccordin2019disclosedon22April2020 | ||||||||||
(2)Situationofcommittedprojectofraisedproceeds
√Applicable□Notapplicable
In10thousandYuan
| Committedinvestmentprojectsandcapitalinvestedinareaswithfundraisingoutoftheplan | Projectschangedornot(includingchangedpartially) | Totalcommittedinvestmentofraisedcapitals | Totalinvestmentafteradjustment(1) | Amountinvestedinreportperiod | Amountofaccumulatedinvestmenttilltheperiod-end(2) | Investmentprogramtilltheperiod-end(3)=(2)/(1) | Thedatewhentheprojectreachesitsintendedavailability | RealizedinterestsinPeriod | Reachthepredictedinterestornot | Projectfeasibilitywaschangedhugelyornot |
| Committedinvestmentprojects | ||||||||||
| Cashconsiderationof49%equityofGuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.paid | N | 26,781.67 | 26,781.67 | 0 | 21,889.52 | 81.73% | 0 | Notapplicable | N | |
| Paymentofissuancecost | N | 579.82 | 579.82 | 0 | 579.82 | 100.00% | 0 | Notapplicable | N | |
| Subtotalofcommittedinvestmentprojects | -- | 27,361.49 | 27,361.49 | 0 | 22,469.34 | -- | -- | 0 | -- | -- |
| Capitalinvestedinareaswithfundraisingoutoftheplan | ||||||||||
| Notapplicable | ||||||||||
| Total | -- | 27,361.49 | 27,361.49 | 0 | 22,469.34 | -- | -- | 0 | -- | -- |
| Situationaboutnotcominguptoschemedprogressorexpectedrevenueandthereason(Inspecificproject) | Notapplicable | |||||||||
| Explanationonmajorchangesonprojectfeasibility | Notapplicable | |||||||||
| Amount,usageandprogressofusingforfundraisingoutoftheplan | Notapplicable | |||||||||
| Changeofimplementationplaceofinvestmentprojectofraisedcapitals | Notapplicable | |||||||||
| Regulationofimplementationwaysofinvestmentprojectofraisedcapitals | Notapplicable |
| Preliminaryinvestmentandreplacementofinvestmentprojectofraisedcapitals | Notapplicable |
| Temporarilysupplementforthecurrentcapitalswithidleraisedcapitals | Notapplicable |
| Amountandreasonforsurplusofraisedcapitalswhenimplementingprojects | Notapplicable |
| Usageoftheretainedraisedfundandwhatisexpectedtoinvestedwiththosefund | Depositedinaspecialaccountforraisedfunds,purposeoftheraisedfundshavenotbeenchanged |
| Issuesorotherconditionsfoundinuseoffundraisedanddisclosure | Useofthefundraisedarestrictlyexecuteinlinewiththetri-partysupervisionagreementforfundraised,andnorelatedissuesorotherconditionsbeenfound |
(3)Thechangedprojectofraisedproceeds
□Applicable√NotapplicableTheCompanyhasnoprojectofraisedproceedschangedinthePeriod.VI.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhasnosalesofmajorassetsinthePeriod.
2.Salesofmajorequity
□Applicable√Notapplicable
VII.Analysisofmainholdingcompanyandstock-jointlycompanies
√Applicable□NotapplicableSubsidiaryandjoint-stockenterprisewithanimpactofmorethan10%ontheCompany’snetprofit
InRMB
| Companyname | Type | Mainbusiness | Registercapital | Totalassets | NetAssets | Operatingrevenue | Operatingprofit | Netprofit |
| SinopharmHoldingGuangzhouCo.,Ltd. | Subsidiary | Salesofdrugs,medicalapparatusandinstruments,freighttransportation,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing | 3,553,249,393.17 | 13,903,583,691.99 | 4,533,117,185.36 | 29,348,890,454.01 | 746,082,755.81 | 560,749,042.99 |
| SinopharmHoldingGuodaDrugstoreCo.,Ltd. | Subsidiary | Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemicalmedicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&exportoftechnology | 1,683,333,333.00 | 11,173,757,597.94 | 4,993,009,760.28 | 12,753,608,498.70 | 422,228,850.74 | 311,908,115.16 |
| SinopharmHoldingGuangxiCo.,Ltd. | Subsidiary | Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts | 521,407,965.79 | 4,006,269,159.15 | 1,108,937,908.73 | 6,170,121,266.85 | 220,472,710.34 | 193,137,920.08 |
Particularaboutsubsidiariesobtainedordisposedinreportperiod
√Applicable□Notapplicable
| CompanyName | Themethodofobtainingandhandlingsubsidiariesduringthereportperiod | Theinfluencetothewholeproductionandperformance |
| SinopharmAccord(Guangzhou)PharmaceuticalCo.,Ltd. | Acquisition | FurtherconsolidatedthepharmaceuticaldistributionbusinessinGuangxi&GuangdongandwithoutmajorinfluenceonperformanceoftheCompany |
| GuodaDrugstore(Chaoyang)RenaiPharmacyCo.,Ltd. | Acquisition | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| GuodaDrugstore(Pu’er)SongMaoCo.,Ltd. | Acquisition | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| SinopharmHoldingGuodaDrugstoreYongxingtangChain(Chaoyang)Co.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| SinopharmAccordMedicalSupplyChain(Shenzhen)Co.,Ltd. | Establishment | FurtherconsolidatedthepharmaceuticaldistributionbusinessinGuangxi&GuangdongandwithoutmajorinfluenceonperformanceoftheCompany |
| SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| LiaoningGuodaPharmaceuticalCo.,Ltd. | Establishment | Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany |
| SinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd. | Establishment | FurtherconsolidatedthepharmaceuticaldistributionbusinessinGuangxi&GuangdongandwithoutmajorinfluenceonperformanceoftheCompany |
| QinghuangdaoGuodaDrugstoreChainCo.,Ltd. | Transfer | Nomajorinfluence. |
VIII.StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableIX.FutureDevelopmentProspects
(i)IndustryenvironmentanditsimpactonthecompanyUnderthegoalof“HealthyChina”,thelinkageofmedicine,medicalcare,andmedicalinsurancecontinuestoaccelerate,andalargenumberofinterlockingmajorpoliciesarechangingandwillchangetheentiremedicineandmedicalecosystem.Theoverallgrowthrateoftheindustryisshowingaslowingtrend,andtheprofitspaceisconstantlyreduced,andtheshufflingisintensified.Inaddition,thesuddennovelcoronaviruspneumoniaepidemicinearly2020hasagreatimpactonthedomesticandforeigneconomies,theslowdowninGDPgrowthmayhaveashort-termnegativeimpactonmedicalexpenditures,resultinginincreaseddownwardpressureondrugprices,andtheoperationandcapitalchainofvariousenterprisesfaceheavypressureandtest,theindustrialstructurehasacceleratedtorebuild.However,thelong-termdevelopmenttrendofthepharmaceuticalsindustry
hasnotchanged,policyandenvironmentalchangeshavealsodriventhecontinuousimprovementoftheconcentrationofthepharmaceuticalcirculationindustry,andthecorecompetitiveadvantagesofleadingenterpriseshavebeencontinuouslyenhanced.Theepidemicwillpromotenationalandsocialinvestmentindiseasepreventionandcontrol,acceleratetheconstructionofnationalemergencysupplysystemandcomprehensivesupervisionsystem,increaseinvestmentintechnologicalinnovation,andacceleratethepopularizationofLiveAppofdigitaltechnologyandmanagement.Facedwiththenewenvironmentathomeandabroad,changesinindustrialpoliciesandcompetitionpatternsofnewphaseandnewmodel,thecompanywillfullyexplorenewprofitgrowthpoints,upgradeservicecapabilities,improveoperatingquality,andactivelyrespondtochallengesandopportunitiesthroughcontinuoustechnologicalinnovationandexplorationofnewideas.(ii)Companybusinessplan
1.StrengthentheresponsibilityofcentralenterprisesandstrengthendevelopmentconfidenceFirstly,asthedesignatedmedicalequipmentreserveunitsofgovernmentsatalllevels,wecontinuetoundertaketheprocurement,storageanddistributionofepidemicemergencysupplies,activelyobtainthedistributionrightsofdrugsintheepidemicdiagnosisandtreatmentschemeandshortageofdrugs,andadoptvariousmethodstoassistintheadmissionofmedicines;summarizetheexperienceofepidemicpreventionandcontrol,andactivelyparticipateintheconstructionofgovernmentandcommunitypublichealthsystems;Secondly,payattentiontomarketchanges,quicklyadjustthestructure,promotenewbusinessmodels,achievewidercoverageanddeepersinkingofsalesandchannelresources,prepareforgradeddiagnosisandtreatment;acceleratethepromotionofonlinetoofflineintegratedpharmaceuticalnewretail,C-end,B-endmulti-channelservices.
2.Continuetopromotethestrategyofwholesale-retailintegration,improvetheefficiencyofsupplychainintegrationSummarizetheexperienceofthetypicalmodelofwholesale-retailintegration,establishanationwideworkmechanismforwholesale-retailintegration;comprehensivelypromotethe“memberstore”,andcoordinatethemanagementofthebrandofthememberstore;acceleratethetransformationofretaildirectsalescustomersofthedistributioncompaniesandthewholesale-retailjointlyexpandlocalsmallandmedium-sizedchainpharmacies.Collaborateprocurementresourcestoforma“unifiednegotiationandseparateprocurement”distributionmodelofupstreammanufacturers+distribution+retailtripartitelinkage,promotelogisticsplanningandinformationconstruction,andenhancethelocalmarketsharesandcompetitivenessofretailformats.Integratethenationallogisticsresources,planthenationallogisticsnetwork,andrealizethenationalmulti-warehouselinkage;establishanationallogisticscentersupplychainandlogisticsoperationmonitoringsystem,unifythestandardizedindexsystem,andimprovetheoveralloperationefficiencyandservicequality.
3.MakeeveryefforttoacceleratedigitaltransformationandempowernewbusinessmodelswithtechnologyBuildadigitalmanagementplatformtoempowermanagement,controlandservices,includingfinancialsharing
platform,remunerationevaluationdigitalplatform,propertyrentalmanagementdigitalplatform,riskmanagementandcontroldigitalplatform,andsecuritymanagementdigitalplatform,etc.Itisplannedtoestablishaninformationtechnologycentertosimulate“corporate”operationandmanagement,acceleratethedigitaltransformationofbusinessmanagementandcontrol,andusenewtechnologiestobuildahospitalsupplychainmanagementinformationplatformandaretailprofessionalsupplychainmanagementinformationplatformtosupportthedeepeningoftheonlinetoofflinesupplychainofthebusiness,andimprovetheresponsivenessofprovidingsolutionstodifferententitiesintheupstreamanddownstreamofthesupplychain.
4.Investinmergersandacquisitionstoseizeopportunitiesandacceleratethenationwidedeploymentandmulti-fieldlayoutDeepenthedistributionnetworklayout,acceleratethecompletionofthelayoutoftheblankareasinGuangdongandGuangxi,andcarryoutthesecondarylayoutofregionalandcountymarketsandkeyregions;expandtheinvestmentcooperationofinnovativebusinessesaroundtheupstreamanddownstreamofthesupplychainandtakevalue-addeddemandasthestartingpoint;acceleratetheexpansionofthenationalretailnetwork,makefulluseofthe“directsales+franchise+mergersandacquisitions”troikatoimprovetheefficiencyofstoreexpansion,andspeeduptheopeningofstores.
5.Indistributionbusinesssegment,promotethedeploymentof“onebodyandtwowings”business,andacceleratethedevelopmentofefficiencyOnebodyreferstothetraditionalbusiness,andtwowingsreferto“retaildirectsales+retaildiagnosisandtreatment”and“innovativeserviceproducts”.
(1)Focusonmarketshareandstrengthentraditionalbusiness:followthetrend,adjustproductstructure,layoutinadvance,andgoallouttograbnewproducts;onthebasisoflogisticsanddeliveryservices,customizeaccordingtocustomerneeds,andextendaseriesofservicestoformproductservicepackagesandsolutions.
(2)Retaildirectsales+retaildiagnosisandtreatment:acceleratethedevelopmentofdistributionandretailbusiness,andstrengthenterminalcontrol.Carryoutnetworkconstructionaroundthetopthreehospitals,prioritizethelayoutofmedicalinsuranceandprescriptioncirculationprojectintentioncities,buildthepatient-centricfull-chainservicesystem,developremotediagnosisandtreatmentcooperationplatforms,andimproveitsownremotereviewsystem;retaildirectsalescontinuetodevelopresourcesandcarryoutterminalnetworksconstruction,increasetheretailmarketshare,quicklycopyandpromotethemembershipstoremodel,andestablishanewprofitmodel.
(3)Innovativeserviceproducts:useintegratedplatformstoshareresourcesandenrichserviceproductsaroundtheupstreamanddownstreamofthesupplychain;promotetherapidexpansionofinnovativebusinessestosubsidiaries,makekeylayoutineachregion,comprehensiveoutput,promotescaledevelopmentandincomeincrease,andpromotetheprofitcontributionsofinnovativeserviceproducts.
6.GuodaDrugstore:continuetoacceleratenetworklayoutandaccelerateinnovationanddevelopment
(1)Continuetopromotenetworkexpansionandsinking,andacceleratethestorelayoutthrough“direct
sales+franchise”:strengthenresourceintegrationintheareasalreadyenteredandenhanceregionalmarketinfluence.Intermsoftheexpansionofdirectstores,itquicklyseizedtheadvantageousbusinessdistrictsaroundthehospitalandfurthersettledthedistributionpoints;encourageallsubsidiariestovigorouslydevelopfranchisebusiness;promotetheconstructionofprovincial-levelplatformsbyclassificationandgrading,integratenewM&Aenterprisesandcontrolrisks,andplaysynergyeffects.
(2)ActivelypromotethedigitaltransformationofretailformatsandpromotetheInternet+servicemodel:
landCRMsystems,upgrademembermanagementandassessmentmechanisms,andestablishaninnovativemembermodelbasedonbigdata;makefulluseofexistingnetwork,products,andstorestaffadvantages,andestablishitsowne-commerceplatform.
(3)ImproveOEMbrandplanningandpromotethedevelopmentofprivatebrandbusiness:improvebrandplanningandsystemconstruction,establishproductplanningandevaluationsystem,establishqualitymanagementsystem,improvemarketingstrategysystem,enhanceproductqualityandserviceawareness,andenhancebrandinfluence.
(4)ContinuetointegrateWBAresources:continuetostrengthencomprehensiveprojectcooperationininformationtechnology,retailterminaloperation,categoryoptimization,privatebrand,newstoremodel,etc.,optimizeretailservicesystemandbusinessmodel,andimprovemanagementlevel.(iii)Possiblerisks
1.RisksofchangesinindustrypolicyWiththecontinuousdeepeningofnewmedicalreform,thepharmaceuticalindustryfrequentlyreleasespolicies,andtheoperatingenvironmentoftheindustryhasmajorchanges,affectedbythe“4+7”centralizedprocurementlinkageandexpansion,theGPOinGuangdongandGuangxiprovinces,andthecontinuousexpansionofthenationaltalks,andotherpolicies,thedrugpricehascontinuedtodropsharply,andthecompany’sprofitmarginisfacingtheriskoffurthercompression.Thesupervisionhasbeencontinuouslyupgraded,theintroductionofthenewDrugAdministrationLawandtheimplementationofthe“fourstrictest”putforwardhigherrequirementsforthecomplianceoperationofpharmaceuticalenterprises,thepharmaceuticalcirculationindustryfacesincreasedrisksofuncertaincompliance.Thecompanywillrespondtotheimpactsofindustrypoliciesbytransformingandupgradingitsbusinessstructure,exploringnewprofitmodels,andimprovingitsriskmanagementandcontrolcapabilities.
2.ManagementrisksofthecontinuousexpansionofmarketingnetworkofGuodaDrugstoreThroughthecontinuousopeningofnewstoresandextendedM&A,themarketingnetworkofGuodaDrugstorehasmaintainedasteadygrowthtrendinrecentyears.Theexpansionsofthesalesareasandtheincreaseinthenumberofstoreshaveputpressureonthestorelocation,distribution,cashmanagement,marketingandhumanresourcemanagementofGuodaDrugstore.Thecompanywillstrengthenmanagementandconstructioninthecommodityprocurement,logisticsanddelivery,salesandotherlinks,andformulatecorrespondingmanagementmeasuresineachlinktoensureunifiedstandardsandmanagementqualityforstoreexpansion,andatthesametimestrengthenintegrationandcontrolofnewmergedstores.
3.Risksofintensifyingmarketcompetition
Asthecountrycontinuestointroducecorrespondingpoliciestoencouragetheintegrationofpharmaceuticalretailindustry,themajorpharmaceuticalretailenterprisesintheindustryhaveacceleratedthepaceofmergersandacquisitions,andcontinuedtoexpandthemarketingnetworks,improvethelogisticscenterconstructions,andinnovatethebusinessandprofitmodelssothatthesalesscaleandcomprehensivestrengthcontinuouslystrengthen.Atthesametime,withtheupgradingofconsumptionandthegradualopeningofmarket,theforeignpharmaceuticaldistributionenterpriseswithpowerfulstrengthareenteringthedomesticpharmaceuticaldistributionmarketsthroughavarietyofways,sotheindustrycompetitionisfurtherintensifying.Inaddition,thecross-bordercompetitorswithinternetgeneshavequicklypenetratedintothecompany’straditionalbusinessfields,whichbroughtcertainchallengestothecompany’sbusinessmodel.Thecompanywillcontinuetointegrateexistingresources,deepenthestrategicdevelopmentinitiativeswithwholesale-retailintegrationasthecore,anddeeplygiveplaytothesynergies,directlyfacetheterminalpatientsandconsumersthroughcomplementaryvarieties,capitalcollaboration,supplychaincollaboration,andinternationalpromotion,atthesametime,itwillrealizebrandglobalizationbycapitaloperation,andcontinuouslyincreaseinvestmentinscientificandtechnologicalinnovation,andactivelyrespondtocross-bordercompetition.
4.RisksoffacingthehorizontalcompetitionInthepharmaceuticalretailfield,SinopharmHolding’saffiliateddistributionsubsidiarieshavealsoopenedsomesocialretailpharmacies,whichconstituteacertaindegreeofhorizontalcompetitionwiththesubordinateGuodaDrugstore.SinopharmHoldingandSINOPHARMhavepledgedtotakeeffectivemeasurestoresolvethepossiblehorizontalcompetition.
5.TheriskofgoodwillimpairmentsOn31December2019,thebookvalueofgoodwillinconsolidatefinancialstatementlistedas944,079,884.56Yuan,anddistributedtotheassetsgroupofdistributionbusinessandretailbusiness.InaccordancewiththeAccountingStandardsforBusinessEnterprises,theCompanycarriedoutannualimpairmenttestforthegoodwill.ImpairmentofgoodwillwillreleasedontheNoteV.-17andNoteIII-17&34listedundertheFinancialStatement
X.Receptionofresearch,communicationandinterview
1.Inthereportperiod,receptionofresearch,communicationandinterview
√Applicable□Notapplicable
| Time | Way | Type | Basicsituationindexofinvestigation | |
| 17May2019 | Fieldresearch | Institute | ResolutionofAnnualGeneralMeeting2018(NoticeNo.:2019-26) | |
| 13November2019 | Fieldresearch | Institute | ResolutionofThirdExtraordinaryShareholders’GeneralMeetingof2019(NoticeNo.:2019-45) | |
| Reception(times) | 2 | |||
| Numberofhospitality | 65 |
| Numberofindividualreception | 5 |
| Numberofotherreception | 0 |
| Disclosed,releasedorletoutmajorundisclosedinformation | Nodisclosed,releasedorletoutmajorundisclosedinformation |
SectionV.ImportantEventsI.Profitdistributionplanofcommonstockandcapitalizingofcommonreservesplan
Formulation,ImplementationandAdjustmentofcommonstockProfitDistributionPolicyEspeciallyCashDividendpolicyduringtheReportingPeriod
√Applicable□Notapplicable
On17May2019,theprofitdistributionplanforyearof2018wasdeliberatedandapprovedbyannualgeneralmeetingof2018,thatistakingtotal428,126,983sharesasbase,distributed4.00yuan(taxincluded)foreach10sharesincash.Theannouncementof2018interestdistributionimplementationwasreleasedon11June2019bytheBoard(publishedinSecuritiesTimes,ChinaSecuritiesJournal,HongKongCommercialDailyandJuchaoWebsitehttp://www.cninfo.com.cn),theprofitdistributionplanforyearof2018wascompleted,anddividendforpublicshareswasdistributedtotheaccountofshareholdersdated19June2019(A-share)and21June2019(B-share)respectively.
| Specialexplanationoncashdividendpolicy | |
| SatisfyregulationsofGeneralMeetingorrequirementofArticleofAssociation(Y/N): | Y |
| Well-definedandclearlydividendstandardsandproportion(Y/N): | Y |
| Completedrelevantdecision-makingprocessandmechanism(Y/N): | Y |
| Independentdirectorsperformdutiescompletelyandplayaproperrole(Y/N): | Y |
| Minorityshareholdershaveopportunitytoexpressopinionsanddemandstotallyandtheirlegalrightsarefullyprotected(Y/N): | Y |
| Conditionandproceduresarecomplianceandtransparentwhilethecashbonuspolicyadjustedorchanged(Y/N): | Notapplicable |
Profitdistributionplan(pre-plan)ofcommonstockandcapitalizingofcommonreservesplan(pre-plan)inlatestthreeyears(includingthereportingperiod)
(1)Profitdistributionplanforyearof2017Takingthetotal428,126,983sharesasbase,cashbonusof3.00yuan(beforetax)each10shareswillbedistributedtothewholeshareholders.Thisprofitdistributiondidnotconvertcapitalreserveintosharecapital.
(2)Profitdistributionplanforyearof2018Takingthetotal428,126,983sharesasbase,cashbonusof4.00yuan(beforetax)each10shareswillbedistributedtothewholeshareholders.Thisprofitdistributiondidnotconvertcapitalreserveintosharecapital.
(3)Profitdistributionplanforyearof2019Takingthetotal428,126,983sharesasbase,cashbonusof6.00yuan(beforetax)each10shareswillbedistributedtothewholeshareholders.Thisprofitdistributiondidnotconvertcapitalreserveintosharecapital.Cashdividendofcommonstockinlatestthreeyears(includingthereportingperiod)
InRMB
| Yearforbonusshares | Amountforcashbonus(taxincluded) | Netprofitattributabletocommonstockshareholdersoflistedcompanyinconsolidationstatementforbonusyear | Ratioofthecashbonusinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement | Proportionforcashbonusbyotherways(i.e.sharebuy-backs) | Ratioofthecashbonusbyotherwaysinnetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement | Totalcashbonus(includingotherways) | Ratioofthetotalcashbonus(otherwaysincluded)innetprofitattributabletocommonstockshareholdersoflistedcompanycontainedinconsolidationstatement |
| 2019 | 256,876,189.80 | 1,271,289,183.01 | 20.21% | 0.00 | 0.00% | 256,876,189.80 | 20.21% |
| 2018 | 171,250,793.20 | 1,210,742,435.78 | 14.14% | 0.00 | 0.00% | 171,250,793.20 | 14.14% |
| 2017 | 128,438,094.90 | 1,057,791,930.67 | 12.14% | 0.00 | 0.00% | 128,438,094.90 | 12.14% |
TheCompanygainsprofitsinreportingperiodandtheretainedprofitofcommonstockshareholdersprovidedbyparentcompanyispositivebutnoplanofcashdividendproposedofcommonstock
□Applicable√Notapplicable
II.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
√Applicable□Notapplicable
| Bonussharesforevery10-share(Share) | 0 |
| Dividendsforevery10-share(RMB)(Taxincluded) | 6 |
| Incrementsper10shares(Share) | 0 |
| Equitybaseofthedistributionplan(Share) | 428,126,983 |
| Amountofcashdividend(RMB)(Taxincluded) | 256,876,189.80 |
| Amountofcashdividendinotherways(i.e.sharerepurchase)(RMB) | 0.00 |
| Totalcashdividend(includingotherway)(RMB) | 256,876,189.80 |
| Profitavailablefordistribution(RMB) | 4,996,184,257.34 |
| Proportionoftotalcashdividend(includingotherways)tototalprofitdistribution | 20.21% |
| Cashdividendsituation | |
| Ifthecompany’sdevelopmentisatthegrowthstagewithsignificantcapitalexpenditures,theminimumproportionofcashdividendintheprofitdistributionshouldreach40%. | |
III.Implementationofcommitment
1.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
| Commitments | Promise | Typeofcommitments | Contentofcommitments | Commitmentdate | Commitmentterm | Implementation |
| Commitmentsforsharemergerreform | ||||||
| Commitmentsinreportofacquisitionorequitychange | SinopharmHolding | Commitmentofshareholders | "Asalargepharmaceuticalcommercialenterprisewhosebusinessinvolvespharmaceuticalwholesaleandretail,SinopharmHoldingmayoverlapwiththeCompanyingeographicalsegmentationduringitsfuturebusinessdevelopment.Toavoidthepotentialpeercompetitionbroughtbysuchgeographicaloverlap,SinopharmHoldingundertakesthat,uponthetransferofsharesofSinopharmHoldingGuangzhouitheldtoSinopharmAccord,“1.itwillnotnewly-establishorbroadenwithinGuangdonganybusinessoperationthatactuallycompetewiththatofSinopharmAccord,orsetupanynewsubsidiariesorsubordinateenterpriseswhoengageinsuchbusiness.2.ItwillenterintobusinessdelineationwithSinopharmAccordandSinopharmHoldingGuangzhou,therebygivingthethreepartiescleargeographicalareastocarryoutpharmaceuticalwholesaleandretailbusinesses,soastoavoidpotentialpeercompetition.Apartfromabove,SinopharmHoldingwillnolongernewly-establishanyenterprisethatmaycompetewithSinopharmAccordintheproductionandR&Dofpharmaceuticalproducts.” | 21June2005 | Long-termeffective | Normallyimplementing |
| Commitmentsinassetsreorganization | SinopharmGroupCo.,Ltd;ChinaNationalPharmaceuticalForeignTradeCorporation | Commitmentonrestrictedshares | “SinopharmHoldingandSinopharmForeignTrademadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Within6monthsafterthecompletionofthistransaction,iftheclosingpriceofthestockofSinopharmAccordislessthantheissuepriceincontinuous20tradingdays,ortheclosingpriceattheendof6monthsafterthecompletionofthistransactionislessthantheissueprice,thelockupperiodofthestockofSinopharmGroupandSinopharmForeignTradeobtainedfromSinopharmAccordbythistransactionwillautomaticallyprolongatleast6months.ThesharesderivedfromstockdividendsallocationandcapitalreserveincreasetransferringofSinopharmAccordbasedonthenon-publicofferingofsharesofSinopharmAccordobtainedbythistransactionshouldalsoabidebytheabovestockrestrictedarrangements.” | 31May2016 | 36months | Normallyimplementing |
| Ping’anAssetsManagementCo.,Ltd. | Commitmentonrestrictedshares | "PingAnAssetManagementCo.,Ltd.madecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthatthenon-publicofferingofsharesofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Afterplacementcompleted,thesharesofthelistedcompanyincreasedduetobonussharesandturningtoincreasecapitalshouldpursuittotherestrictionarrangementtheabovementioned. | 31May2016 | 36months | Normallyimplementing |
SinopharmGroupCo.,Ltd
Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation
“SinopharmHoldingmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbethecontrollingshareholderofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas“thisreorganization”),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmHoldingGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedtonationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)
28Dec.2016
Long-termeffective
Normallyimplementing
SINOPHARM
Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation
“SINOPHARMmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbetheactualcontrollerofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas“thisreorganization”),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmGroupGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedtonationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)
28Dec.2016
Long-termeffective
Normallyimplementing
| Commitmentsmakeininitialpublicofferingorre-financing | SinopharmHolding | Commitmentofshareholders | SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toAvoidHorizontalCompetition:“First,theCompanyandtheCompany’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.” | 5Sept.2013 | Long-termeffective | Controllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
| SinopharmHolding | Commitmentofshareholders | SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:“First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany(“relatedparty”forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidednorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,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.” | 5Sept.2013 | Long-termeffective | Controllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
| SINOPHARM | Commitmentofactualcontroller | "SINOPHARMmadecommitmentsintheCommitmentLetterAboutChinaNationalPharmaceuticalGroupCorporationtoAvoidHorizontalCompetitionwithChinaNationalAccordMedicinesCorporationLtd.:“First,inthenextfiveyears,Sinopharmplanstotakeappropriatemeasures(includingassetsreplacementoracquisition,equityreorganization,etc.)toresolvethehorizontalcompetitionbetweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.” | 16Oct.2013 | Long-termeffective | ActualControllerisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
| SINOPHARM | Commitmentofactualcontroller | "SINOPHARMmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:“First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany(“relatedparty”forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord. | 22Sept.2013 | Long-termeffective | ActualControllerisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments | |
| Completedontime(Y/N) | Y | |||||
2.ConcerningassetsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
IV.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.
V.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for“QualifiedOpinion”thatissuedbyCPA
□Applicable√NotapplicableVI.Particularsaboutthechangesinaspectofaccountingpolicy,estimatesandcalculationmethodcomparedwiththefinancialreportoflastyear
√Applicable□Notapplicable
(i)Newleasestandard:
In2018,theMinistryofFinanceissuedtherevisedAccountingStandardsforBusinessEnterprisesNo.21-Leases(referredtoas“newleasestandard”).Thenewleasestandardsadoptasinglemodelsimilartothecurrentaccountingtreatmentoffinancialleases,requiringthelesseetoaffirmtheright-of-useassetsandleaseliabilitiesofallleasesotherthanshort-termleasesandlow-valueassetleases,andrespectivelyaffirmthedepreciationandinterestexpenses.SinceJanuary1,2019,theGrouphascarriedoutaccountingtreatmentinaccordancewiththerevisednewleasestandards,forthecontractsexistingbeforethefirstexecutiondate,itchoosesnottore-evaluatewhethertheyareleasesorincludeleases,andaccordingtotheconnectionregulations,noadjustmentsaremadetotheinformationinthecomparableperiod,andthedifferencebetweenthenewleasestandardsonthefirstexecutiondateandthecurrentleasestandardsareadjustedretroactivelyforretainedearningsatthebeginningof2019.(ii)ChangesinthepresentationmodeoffinancialstatementsInaccordancewiththerequirementsofthe“NoticeontheRevisionandIssuanceoftheFormatofGeneralEnterpriseFinancialStatementsfor2019”(CK[2019]No.6)andthe“NoticeontheRevisionandIssuanceoftheFormatofConsolidatedFinancialStatements(2019Version)”(CK[2019]No.16),inthebalancesheet,the“billsreceivableandaccountsreceivable”itemsaresplitinto“billsreceivable”and“accountsreceivable”,andthe“billspayableandaccountspayable”itemsaresplitinto“billspayable”and“accountspayable”,billsandreceivablesthatwereoriginallyincludedin“othercurrentassets”itemandmeasuredatfairvalueandwhosechangesareincludedinothercomprehensiveincomeareseparatelylistedinthe“receivablesfinancing”item,the“interestreceivables”inthe“otherreceivables”itemischangedtoonlyreflecttheinterestsofrelevantfinancial
instrumentsthathavebeendueandshouldbereceivedbutnotyetreceivedonthebalancesheetdate(interestsoffinancialinstrumentsaccruedbasedontheeffectivelyinterestratemethodareincludedinthebookbalanceofthecorrespondingfinancialinstruments),the“interestpayable”inthe“otherpayables”itemischangedtoonlyreflecttheinterestsofrelevantfinancialinstrumentsthathavebeendueandshouldbepaidbutnotyetpaidonthebalancesheetdate(interestsoffinancialinstrumentsaccruedbasedontheeffectivelyinterestratemethodareincludedinthebookbalanceofthecorrespondingfinancialinstruments).The“derecognizedgainsoffinancialassetsmeasuredatamortizedcost”iteminthe“investmentincome”itemreflectsthegainsandlossesarisingfromderecognitionoffinancialassetsmeasuredatamortizedcostduetotransfersandothercircumstances.TheGrouphasretrospectivelyadjustedthecomparativedataaccordingly.Thisaccountingpolicychangehasnoimpactonthemergerandthecompany’snetprofitandowner’sequity.Foundmoreon35.ChangeofaccountingpolicyandaccountingestimatecarryinNoteIII.ImportantaccountingpolicyandestimateVII.Majoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatement
□Applicable√NotapplicableNomajoraccountingerrorswithinreportingperiodthatneedsretrospectiverestatementfortheCompanyintheperiod.VIII.Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope
√Applicable□NotapplicableDetailsofchangesinconsolidationstatement’sscopecanbeseeninNoteVIofFinancialReport.
IX.Appointmentandnon-reappointment(dismissal)ofCPA
Accountingfirmappointed
| Nameofdomesticaccountingfirm | Ernst&YoungCPA(SpecialGeneralpartnership) |
| Remunerationfordomesticaccountingfirm(in10thousandYuan) | 396.81 |
| Continuouslifeofauditingservicefordomesticaccountingfirm | 4 |
| NameofdomesticCPA | LiJianguang,LiYuanfen |
| ContinuouslifeofCPAfromthedomesticaccountingfirmforauditingservice | 4 |
| Nameofforeignaccountingfirm(ifapplicable) | N/A |
| Continuouslifeofauditingserviceforforeignaccountingfirm(ifapplicable) | N/A |
| NameofforeignCPA(ifapplicable) | N/A |
| ContinuouslifeofCPAfromtheforeignaccountingfirmforauditingservice(ifapplicable) | N/A |
Re-appointedaccountingfirmsinthisperiod
□Yes√NoAppointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable□NotapplicableInthePeriod,theCompanyengagedErnst&YoungCPA(SpecialGeneralpartnership)astheauditbodyforinternalcontrol,andauditingchargeforinternalcontrolamountingas871,900yuan.
X.Particularaboutsuspendedanddelistingafterannualreportdisclosed
□Applicable√Notapplicable
XI.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod.XII.SignificantlitigationsandarbitrationoftheCompany
□Applicable√NotapplicableNosignificantlitigationsandarbitrationoccurredinthereportingperiod.XIII.Penaltyandrectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.XIV.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers
√Applicable□NotapplicableInreportingperiod,controllingshareholderandactualcontrolleroftheCompanyhasasoundintegrity,andtherearenocasesoffailuretoimplementtheeffectivejudgementofthecourtandthelargeamountofdebtdueandunliquidated
XV.Implementationofthecompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableDuringthereportingperiod,thecompanyhasnostockincentiveplan,employeestockownershipplanorotheremployeeincentivesthathavenotbeenimplemented.
XVI.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
(1)Relatedtransactionwithroutineoperationconcernedcanbefoundin“X.Relatedpartyandrelatedtransaction”carriedinSectionXII.FinancialReport;
(2)Therelatedtransactionsaresettledincashandbynotes,accordingtotheProposalofExpectedRoutineRelatedTransactionswithSubordinateEnterpriseforYearof2019deliberatedandapprovedby10
th
sessionof8
th
BODheldon23April2019andAGMof2018heldon17May2019,aswellastheNoticeonExpectedRoutineRelatedTransactionforYearof2019(NoticeNo.:2019-18)releasedon25April2019,therelatedsalestakes68.47%intotalexpectedamountforthewholeyear,andrelatedprocurementtakes
82.33%intotalexpectedamountforthewholeyear.
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√Notapplicable
3.Mainrelatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod.
4.Contactofrelatedcreditanddebt
√Applicable□NotapplicableWhethertheCompanyhadnon-operatingcontactofrelatedcreditanddebt
□Yes√NoTheCompanyhadnonon-operatingcontactofrelatedcreditanddebtinthereportingperiod.
5.Otherrelatedtransactions
√Applicable□NotapplicableInreportingperiod,theProposalon100%EquityofShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.AcquisitionbySinopharmHoldingGuodaDrugstoreCo.,LtdandProposalon75%EquityofPudongNewAreaofShanghaiPharmaceuticalMedicineLtd.AcquisitionbySinopharmHoldingGuodaDrugstoreCo.,Ltdweredeliberatedandapprovedby13
th
sessionof8
thBODandThirdExtraordinaryShareholders’GeneralMeetingof2019.TheabovementionedtargetenterprisescompletedthedeliveryinJanuary2020andhasnoimpactontheresultsoftheCompanyfor2019therefore.
Relevantqueriesonthewebsiteofinterimnoticesofmajorrelatedpartytransactiondisclosed
| InterimNotice | Datefordisclosed | Websitefornoticereleased |
| SinopharmAccord:75%EquityofPudongNewAreaofShanghaiPharmaceuticalMedicineLtd.AcquisitionbySinopharmHoldingGuodaDrugstoreCo.,Ltd-controllingsubsidiaryoftheCompanyandRelatedPartyTransaction | 29October2019 | JuchaoWebsitehttp://www.cninfo.com.cn |
| SinopharmAccord:100%EquityofShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.AcquisitionbySinopharmHoldingGuodaDrugstoreCo.,Ltd-controllingsubsidiaryoftheCompanyandRelatedPartyTransactionofthe85%EquityAcquisitionofSinopharmHoldingTianheJilingMedicalCo.,Ltd. | 29October2019 | JuchaoWebsitehttp://www.cninfo.com.cn |
XVII.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√NotapplicableTheCompanyhadnotrusteeshipinthereportingperiod.
(2)Contract
□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod.
(3)Leasing
□Applicable√NotapplicableNoleasingfortheCompanyinreportingperiod.
2.Majorguarantees
√Applicable□Notapplicable
(1)Guarantees
In10thousandYuan
| ParticularsabouttheexternalguaranteeoftheCompanyandthesubsidiaries(Barringtheguaranteeforsubsidiaries) | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| GuaranteebetweentheCompanyandthesubsidiaries | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| SinopharmHoldingGuangzhouCo.,Ltd. | 24Aug.2019 | 35,000 | 24Sept.2019 | 18,642.78 | Jointliabilityassurance | 2019.9.24-2020.8.21 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 24Aug.2019 | 60,000 | 25Dec.2019 | 54,390.28 | Jointliabilityassurance | 2019.12.25-2020.12.24 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 24Aug.2019 | 60,000 | 29Nov.2019 | 51,367.85 | Jointliabilityassurance | 2019.11.29-2020.11.27 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 19Sept.2019 | 25,000 | 18Jan.2019 | 4,910.64 | Jointliabilityassurance | 2019.1.18-2020.1.17 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 25Apr.2019 | 15,000 | 7Aug.2019 | Jointliabilityassurance | 2019.8.7-2020.8.6 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | 25Apr.2019 | 70,000 | 20May2019 | 52,011.39 | Jointliabilityassurance | 2019.5.20-2020.5.19 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 19Sept.2019 | 5,000 | 25Jan.2019 | Jointliabilityassurance | 2019.1.25-2020.1.24 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | 24Aug.2019 | 35,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | 25Apr.2019 | 52,000 | 26Jul.2019 | 30,200.11 | Jointliabilityassurance | 2019.7.26-2020.7.25 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 25Apr.2019 | 10,000 | 13Aug.2019 | 1,705.82 | Jointliabilityassurance | 2019.8.13-2020.8.12 | N | Y |
| SinopharmHoldingGuangzhouCo.,Ltd. | 25Apr.2019 | 60,000 | 6Aug.2019 | Jointliabilityassurance | 2019.8.6-2020.8.5 | N | Y | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 24Aug.2019 | 5,000 | 24Sept.2019 | 1,723.37 | Jointliabilityassurance | 2019.9.24-2020.8.21 | N | Y |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 24Aug.2019 | 15,000 | 15Oct.2019 | 8,118.82 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 24Aug.2019 | 10,000 | 25Dec.2019 | 4,320.53 | Jointliabilityassurance | 2019.12.25-2020.12.24 | N | Y |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 25Apr.2019 | 5,000 | 6Aug.2019 | Jointliabilityassurance | 2019.8.6-2020.8.5 | N | Y | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | 24Aug.2019 | 5,000 | 26Sept.2019 | Jointliabilityassurance | 2019.9.26-2020.9.25 | N | Y | |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | 24Aug.2019 | 10,000 | 28Nov.2019 | 4,648.94 | Jointliabilityassurance | 2019.11.28-2020.10.18 | N | Y |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | 24Aug.2019 | 3,000 | 26Nov.2019 | Jointliabilityassurance | 2019.11.26-2020.11.25 | N | Y | |
| SinopharmHoldingFoshanCo.,Ltd. | 24Aug.2019 | 3,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingFoshanCo.,Ltd. | 24Aug.2019 | 2,500 | 7Nov.2019 | 138.97 | Jointliabilityassurance | 2019.11.7-2020.11.6 | N | Y |
| SinopharmHoldingFoshanCo.,Ltd. | 25Apr.2019 | 3,000 | 31May2019 | 68.49 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | Y |
| SinopharmHoldingZhaoqingCo.,Ltd. | 24Aug.2019 | 2,000 | 15Oct.2019 | 1,943.64 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingZhaoqingCo.,Ltd. | 24Aug.2019 | 2,000 | 23Dec.2019 | 1,998.98 | Jointliabilityassurance | 2019.12.23-2020.12.22 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 25Apr.2019 | 15,000 | 1Jul.2019 | 11,123.22 | Jointliabilityassurance | 2019.7.1-2020.6.30 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 24Aug.2019 | 10,000 | 24Sept.2019 | 6,331.19 | Jointliabilityassurance | 2019.9.24-2020.9.23 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 24Aug.2019 | 20,000 | 8Nov.2019 | 20,000 | Jointliabilityassurance | 2019.11.8-2020.9.30 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 24Aug.2019 | 10,000 | 30Aug.2019 | 1,597.25 | Jointliabilityassurance | 2019.8.30-2020.8.13 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 24Aug.2019 | 3,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | 24Aug.2019 | 10,000 | 8Nov.2019 | 1 | Jointliabilityassurance | 2019.11.8-2020.10.22 | N | Y |
| FoshanNanhaiMedicineCo.,Ltd. | 24Aug.2019 | 5,000 | 15Oct.2019 | 295.31 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| FoshanNanhaiMedicineCo.,Ltd. | 25Apr.2019 | 10,000 | 31May2019 | 1,843.58 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | Y |
| FoshanNanhaiMedicineCo.,Ltd. | 24Aug.2019 | 7,000 | 7Nov.2019 | 1,913.94 | Jointliabilityassurance | 2019.11.7-2020.11.6 | N | Y |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 24Aug.2019 | 6,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 25Apr.2019 | 10,000 | 31May2019 | 5,262.56 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | Y |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 24Aug.2019 | 7,000 | 7Nov.2019 | 1,789.35 | Jointliabilityassurance | 2019.11.7-2020.11.6 | N | Y |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | 24Aug.2019 | 3,000 | 20Nov.2019 | 847.95 | Jointliabilityassurance | 2019.11.20-2020.11.19 | N | Y |
| SinopharmHolding(Jiangmen)Co.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 492.66 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHolding(Jiangmen)Co.,Ltd. | 24Aug.2019 | 1,000 | 13Dec.2019 | 999.52 | Jointliabilityassurance | 2019.12.13-2020.12.12 | N | Y |
| SinopharmHoldingMeizhouCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 1,000 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingMeizhouCo.,Ltd. | 25Apr.2019 | 2,000 | 29Jul.2019 | 2,000 | Jointliabilityassurance | 2019.7.29-2020.7.28 | N | Y |
| SinopharmHoldingZhongshanCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 927 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingZhongshanCo.,Ltd. | 24Aug.2019 | 2,000 | 24Sept.2019 | 627.44 | Jointliabilityassurance | 2019.9.24-2020.9.23 | N | Y |
| SinopharmHoldingShantouCo.,Ltd. | 24Aug.2019 | 500 | 15Oct.2019 | 500 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingShantouCo.,Ltd. | 24Aug.2019 | 1,000 | 23Dec.2019 | 1,000 | Jointliabilityassurance | 2019.12.23-2020.12.22 | N | Y |
| SinopharmHoldingHuizhouCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 501.51 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingHuizhouCo.,Ltd. | 24Aug.2019 | 1,000 | 18Sept.2019 | Jointliabilityassurance | 2019.9.18-2020.9.17 | N | Y | |
| SinopharmHoldingHuizhouCo.,Ltd. | 24Aug.2019 | 3,000 | 10Dec.2019 | 505.34 | Jointliabilityassurance | 2019.12.10-2020.12.9 | N | Y |
| SinopharmHoldingZhanjiangCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 1,000 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingZhuhaiCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 993.92 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingZhuhaiCo.,Ltd. | 24Aug.2019 | 2,000 | 24Sept.2019 | 1,830.16 | Jointliabilityassurance | 2019.9.24-2020.9.23 | N | Y |
| SinopharmHoldingDongguanCo.,Ltd. | 24Aug.2019 | 2,000 | 15Oct.2019 | 2,000 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingDongguanCo.,Ltd. | 25Apr.2019 | 2,000 | 6Aug.2019 | Jointliabilityassurance | 2019.8.6-2020.8.5 | N | Y | |
| SinopharmHoldingDongguanCo.,Ltd. | 24Aug.2019 | 3,000 | 6Sept.2019 | 2,000 | Jointliabilityassurance | 2019.9.6-2020.9.5 | N | Y |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 19Sept.2019 | 5,000 | 10Jan.2019 | 4,997.89 | Jointliabilityassurance | 2019.1.10-2020.1.9 | N | Y |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 25Apr.2019 | 2,000 | 14Jun.2019 | Jointliabilityassurance | 2019.6.14-2020.6.13 | N | Y | |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 25Apr.2019 | 5,000 | 31May2019 | 2,705.64 | Jointliabilityassurance | 2019.5.31-2020.5.30 | N | Y |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 25Apr.2019 | 3,000 | 15Jul.2019 | 2,770.25 | Jointliabilityassurance | 2019.7.15-2020.1.14 | N | Y |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 24Aug.2019 | 9,000 | 17Oct.2019 | 2,273.51 | Jointliabilityassurance | 2019.10.17-2020.10.16 | N | Y |
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | 24Aug.2019 | 4,000 | 15Oct.2019 | 3,313.53 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingMaomingCo.,Ltd. | 25Apr.2019 | 2,000 | 16Aug.2019 | 1,214.62 | Jointliabilityassurance | 2019.8.16-2020.8.15 | N | Y |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | 25Apr.2019 | 1,000 | 23Jul.2019 | 713.88 | Jointliabilityassurance | 2019.5.17-2020.5.16 | N | Y |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | 25Apr.2019 | 2,500 | 23Jul.2019 | 2,243.87 | Jointliabilityassurance | 2019.7.23-2020.7.22 | N | Y |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | 24Aug.2019 | 1,500 | 9Dec.2019 | Jointliabilityassurance | 2019.12.9-2020.9.30 | N | Y | |
| SinopharmHoldingHeyuanCo.,Ltd. | 24Aug.2019 | 2,000 | 18Dec.2019 | 2,000 | Jointliabilityassurance | 2019.12.18-2020.12.17 | N | Y |
| SinopharmHoldingFoshanMedicalSuppliesSupplyChainCo.,Ltd. | 24Aug.2019 | 1,000 | 7Nov.2019 | 4.49 | Jointliabilityassurance | 2019.11.7-2020.11.6 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 24Aug.2019 | 30,000 | 3Sept.2019 | 23,962.77 | Jointliabilityassurance | 2019.9.3-2020.9.2 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 24Aug.2019 | 28,000 | 15Oct.2019 | 15,765.44 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 19Sept.2019 | 25,000 | 15Nov.2018 | 1,025.47 | Jointliabilityassurance | 2018.11.15-2019.11.7 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 25Apr.2019 | 10,000 | 9Aug.2019 | 8,079.53 | Jointliabilityassurance | 2019.8.9-2020.8.8 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 19Sept.2019 | 15,000 | 13Dec.2018 | 2,583.76 | Jointliabilityassurance | 2018.12.13-2019.11.27 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 24Aug.2019 | 25,000 | 25Dec.2019 | Jointliabilityassurance | 2019.12.25-2020.12.25 | N | Y | |
| SinopharmHoldingGuangxiCo.,Ltd. | 25Apr.2019 | 5,000 | 26Jul.2019 | 4,499.79 | Jointliabilityassurance | 2019.7.26-2020.7.25 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 25Apr.2019 | 10,000 | 18Jun.2019 | 9,933.32 | Jointliabilityassurance | 2019.6.18-2020.6.18 | N | Y |
| SinopharmHoldingGuangxiCo.,Ltd. | 25Apr.2019 | 20,000 | 3Jul.2019 | 337.07 | Jointliabilityassurance | 2019.7.3-2020.7.3 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 24Aug.2019 | 9,000 | 15Oct.2019 | 2,000 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 25Apr.2019 | 10,000 | 21Jun.2019 | 6,472.69 | Jointliabilityassurance | 2019.6.21-2020.6.20 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 19Sept.2019 | 6,000 | 27Feb.2019 | 1,263.46 | Jointliabilityassurance | 2019.2.27-2020.2.26 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 25Apr.2019 | 5,000 | 9Jul.2019 | 3,696.72 | Jointliabilityassurance | 2019.7.9-2020.7.8 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 24Aug.2019 | 9,000 | 29Oct.2019 | 2,100 | Jointliabilityassurance | 2019.10.29-2020.10.28 | N | Y |
| SinopharmHoldingLiuzhouCo.,Ltd | 24Aug.2019 | 10,000 | 20Dec.2019 | 7,958.78 | Jointliabilityassurance | 2019.12.20-2020.12.19 | N | Y |
| SinopharmHoldingMedicineSupplyChainService(Guangxi)Co.,Ltd. | 24Aug.2019 | 1,059 | 8Oct.2019 | Jointliabilityassurance | 2019.10.8-2020.10.7 | N | Y | |
| SinopharmHoldingWuzhouCo.,Ltd. | 24Aug.2019 | 3,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingGuilinCo.,Ltd. | 24Aug.2019 | 2,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingBeihaiCo.,Ltd. | 24Aug.2019 | 4,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingBaiseCo.,Ltd. | 24Aug.2019 | 3,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingGuigangCo.,Ltd. | 24Aug.2019 | 2,500 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingGuigangCo.,Ltd. | 19Sept.2019 | 3,000 | 19Feb.2019 | Jointliabilityassurance | 2019.2.19-2020.2.18 | N | Y | |
| SinopharmHoldingYulinCo.,ltd. | 24Aug.2019 | 2,000 | 15Oct.2019 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y | |
| SinopharmHoldingShenzhenJianminCo.,ltd. | 19Sept.2019 | 1,000 | 24Dec.2018 | 915.61 | Jointliabilityassurance | 2018.12.24-2019.12.24 | N | Y |
| SinopharmHoldingShenzhenJianminCo.,ltd. | 24Aug.2019 | 2,000 | 15Oct.2019 | 1,978.52 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd. | 24Aug.2019 | 1,000 | 15Oct.2019 | 654.55 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| ChinaNationalAccordMedicinesCorporationLtd. | 24Aug.2019 | 10,000 | 28Nov.2019 | 7,634.04 | Jointliabilityassurance | 2019.11.28-2020.5.28 | N | Y |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 24Aug.2019 | 12,000 | 15Oct.2019 | 5,935.15 | Jointliabilityassurance | 2019.10.15-2020.10.14 | N | Y |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 24Aug.2019 | 5,000 | 28Nov.2019 | 3,380 | Jointliabilityassurance | 2019.11.28-2020.5.28 | N | Y |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 25Apr.2019 | 7,000 | 6Aug.2019 | Jointliabilityassurance | 2019.8.6-2020.8.6 | N | Y | |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | 24Aug.2019 | 5,000 | 3Sept.2019 | 4,199 | Jointliabilityassurance | 2019.9.3-2020.9.3 | N | Y |
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1) | 911,559 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(B2) | 1,482,452.67 | |||||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3) | 952,559 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4) | 440,186.86 | |||||
| Guaranteebetweenthesubsidiariesandthesubsidiaries | ||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd. | 24Aug.2019 | 2,000 | 10Oct.2019 | 1,717.75 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| FujianGuodaDrugstoreChainCo.,Ltd. | 25Apr.2019 | 5,000 | 18May2019 | 2,562.47 | Jointliabilityassurance | 2019.05.18-2020.05.17 | N | Y |
| FujianGuodaDrugstoreChainCo.,Ltd. | 25Apr.2019 | 2,000 | 10May2019 | 251.58 | Jointliabilityassurance | 2019.05.10-2020.05.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 24Aug.2019 | 8,000 | 10Oct.2019 | 5,634.2 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 24Aug.2019 | 3,000 | 18Dec.2019 | 2,375.33 | Jointliabilityassurance | 2019.12.18-2020.12.17 | N | Y |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | 19Sept.2019 | 3,000 | 28Sept.2018 | 385.8 | Jointliabilityassurance | 2018.09.28-2019.09.27 | N | Y |
| TaishanSinopharmHoldingDaqunKangdaDrugstoreChainCo.,Ltd. | 25Apr.2019 | 500 | 2Jun.2019 | 314.6 | Jointliabilityassurance | 2019.06.02-2020.06.01 | N | Y |
| SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd. | 24Aug.2019 | 3,000 | 10Oct.2019 | 1,919.38 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHebeiLerentangMedicineChainCo.,ltd. | 24Aug.2019 | 3,000 | 10Oct.2019 | 3,000 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd. | 24Aug.2019 | 3,000 | 6Dec.2019 | 630.13 | Jointliabilityassurance | 2019.12.06-2020.12.05 | N | Y |
| HunanGuodaMinshengtangDrugstoreChainCo.,Ltd. | 24Aug.2019 | 3,000 | 10Oct.2019 | 3,000 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 24Aug.2019 | 3,000 | 10Oct.2019 | 2,624.19 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 19Sept.2019 | 2,000 | 1Apr.2019 | 1,909.57 | Jointliabilityassurance | 2019.04.01-2020.04.01 | N | Y |
| SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd. | 19Sept.2019 | 2,000 | 28Sept.2018 | 665.19 | Jointliabilityassurance | 2018.09.28-2019.09.27 | N | Y |
| BeijingJinxiangDrugstoreMedicineChainCo.,ltd. | 19Sept.2019 | 4,000 | 28Sept.2018 | 2,780.46 | Jointliabilityassurance | 2018.09.28-2019.09.27 | N | Y |
| SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd. | 19Sept.2019 | 1,000 | 28Sept.2018 | 872.91 | Jointliabilityassurance | 2018.09.28-2019.09.27 | N | Y |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 24Aug.2019 | 3,000 | 18Oct.2019 | 2,049.59 | Jointliabilityassurance | 2019.10.18-2020.10.17 | N | Y |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 25Apr.2019 | 3,000 | 30Apr.2019 | 0 | Jointliabilityassurance | 2019.04.30-2020.04.29 | N | Y |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 24Aug.2019 | 9,500 | 10Oct.2019 | 6,188.81 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| NingxiaGuodaDrugstoreChainCo.,Ltd. | 24Aug.2019 | 4,000 | 29Aug.2019 | 2,855 | Jointliabilityassurance | 2019.08.29-2020.08.28 | N | Y |
| SinopharmHoldingGuodaDrugstoreShandongCo.,ltd. | 24Aug.2019 | 4,000 | 14Oct.2019 | 3,849.71 | Jointliabilityassurance | 2019.10.14-2020.10.13 | N | Y |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd | 24Aug.2019 | 5,000 | 8Nov.2019 | 4,560 | Jointliabilityassurance | 2019.11.08-2020.11.07 | N | Y |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd | 25Apr.2019 | 6,000 | 13Jun.2019 | 4,171.8 | Jointliabilityassurance | 2019.06.13-2020.06.12 | N | Y |
| ShanxSinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 24Aug.2019 | 5,000 | 10Dec.2019 | 1,487.98 | Jointliabilityassurance | 2019.12.10-2020.12.09 | N | Y |
| ShanxSinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 24Aug.2019 | 4,000 | 25Oct.2019 | 779.28 | Jointliabilityassurance | 2019.10.25-2020.10.24 | N | Y |
| ShanxSinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 24Aug.2019 | 4,000 | 10Oct.2019 | 0 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 19Sept.2019 | 5,000 | 28Nov.2018 | 4,986.04 | Jointliabilityassurance | 2018.11.28-2019.11.27 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 24Aug.2019 | 10,000 | 11Sept.2019 | 9,225.33 | Jointliabilityassurance | 2019.09.11-2020.09.10 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 24Aug.2019 | 4,000 | 28Oct.2019 | 614.61 | Jointliabilityassurance | 2019.10.28-2020.10.27 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 19Sept.2019 | 6,000 | 17Nov.2018 | 2,457.33 | Jointliabilityassurance | 2018.11.17-2019.11.16 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 24Aug.2019 | 25,000 | 10Oct.2019 | 14,776.62 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd | 24Aug.2019 | 5,000 | 29Oct.2019 | 2,693.6 | Jointliabilityassurance | 2019.10.29-2020.10.28 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 25Apr.2019 | 6,000 | 21Jun.2019 | 0 | Jointliabilityassurance | 2019.06.21-2020.06.20 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 19Sept.2019 | 7,000 | 2Apr.2019 | 4,828.27 | Jointliabilityassurance | 2019.04.02-2020.04.01 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 25Apr.2019 | 5,600 | 14Jun.2019 | 4,567.64 | Jointliabilityassurance | 2019.06.14-2020.06.13 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 25Apr.2019 | 5,000 | 28Jun.2019 | 2,426.81 | Jointliabilityassurance | 2019.06.28-2020.06.27 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 25Apr.2019 | 3,000 | 25Jun.2019 | 0 | Jointliabilityassurance | 2019.06.25-2020.06.24 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 24Aug.2019 | 15,000 | 10Oct.2019 | 14,994.91 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | 19Sept.2019 | 10,500 | 9Jan.2019 | 2,167.31 | Jointliabilityassurance | 2019.01.09-2020.01.08 | N | Y |
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd | 24Aug.2019 | 5,000 | 30Oct.2019 | 1,752.74 | Jointliabilityassurance | 2019.10.30-2020.10.29 | N | Y |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd | 19Sept.2019 | 6,000 | 18Jan.2019 | 0 | Jointliabilityassurance | 2019.01.18-2020.01.17 | N | Y |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd | 19Sept.2019 | 4,000 | 19Feb.2019 | 750 | Jointliabilityassurance | 2019.02.19-2020.02.19 | N | Y |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd. | 19Sept.2019 | 8,000 | 2Apr.2019 | 4,175.78 | Jointliabilityassurance | 2019.04.02-2020.04.01 | N | Y |
| ShanxSinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | 25Apr.2019 | 5,000 | 24Jun.2019 | 4,326.2 | Jointliabilityassurance | 2019.06.24-2020.06.23 | N | Y |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,ltd | 25Apr.2019 | 5,000 | 13Jun.2019 | 3,620.17 | Jointliabilityassurance | 2019.06.13-2020.06.12 | N | Y |
| SinopharmHoldingGuodaFumeiDrugstoreShanghaiChainCo.,Ltd. | 25Apr.2019 | 3,000 | 24Jun.2019 | 1,085.58 | Jointliabilityassurance | 2019.06.24-2020.06.23 | N | Y |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd | 24Aug.2019 | 6,000 | 10Oct.2019 | 6,000 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| TaishanSinopharmHoldingDaqunKangdaDrugstoreChainCo.,Ltd. | 24Aug.2019 | 500 | 10Oct.2019 | 14 | Jointliabilityassurance | 2019.10.10-2020.10.09 | N | Y |
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(C1) | 223,600 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(C2) | 378,052.26 | |||||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3) | 244,600 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4) | 142,048.67 | |||||
| TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee) | ||||||||
| Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1) | 1,135,159 | Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2) | 1,860,504.93 | |||||
| Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3) | 1,197,159 | Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4) | 582,235.53 | |||||
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4) | 45.46% | |||||||
(2)Guaranteeoutsideagainsttheregulation
□Applicable√NotapplicableNoguaranteeoutsideagainsttheregulationinPeriod.
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
□Applicable√NotapplicableTheCompanyhadnotrustfinancinginthereportingperiod.
(2)Entrustedloans
□Applicable√NotapplicableThecompanyhadnoentrustedloansinthereportingperiod.
4.Othermaterialcontracts
□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod.XVIII.Socialresponsibility
1.Executionofsocialresponsibility“SocialResponsibilityReportofSinopharmAccordin2019”canbeseeninJuchaowebsitereleasedonthesamedate(http://www.cninfo.com.cn)
2.Executionofsocialresponsibilityoftargetedpovertyalleviation
TheCompanyhasnotcarriedouttargetedpovertyalleviationinthereportingperiodandhasnofollow-upplanoftargetedpovertyalleviation
3.Environmentprotection
ThelistedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmentalprotectiondepartment
| Company/subsidiary | NameofMajorPollutantsandParticularPollutants | EmissionMethod | QuantityofDischargeOutlet | DistributionofDischargeOutlet | EmissionConcentration | ExecutedPollutantDischargeStandards | TotalEmissions | ApprovedTotalEmissions | ExcessiveDischarge |
| ChinaNationalZhijun | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 17.87mg/L | LandmarkA-levelof2ndTimePeriod | 1.248ton/year | 7.306ton/year | N/A |
| ChinaNationalZhijun | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.69mg/L | LandmarkA-levelof2ndTimePeriod | 0.048ton/year | 0.812ton/year | N/A |
| ChinaNationalZhijun | Phosphate | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.034mg/L | LandmarkA-levelof2ndTimePeriod | 0.002ton/year | 0.041ton/year | N/A |
| ZhijunPingshan | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 16.64mg/L | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008) | 1.1467ton/year | 2.16ton/year | N/A |
| ZhijunPingshan | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.01mg/L | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008) | 0.0069ton/year | 0.0216ton/year | N/A |
| ZhijunPingshan | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.768mg/L | ClassIVwater(AmmoniaNitrogenuptoClassV)standardinEnvironmentalQualityStandardforSurfaceWater(GB3838-2002) | 0.0529ton/year | 0.144ton/year | N/A |
| MainLuckPharmaceuticals | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 15mg/L | DB44/26-2001-A-levelof2ndTimePeriod | 0.018ton/year | 0.108ton/year | N/A |
| MainLuckPharmaceuticals | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0．5mg/L | DB44/26-2001-A-levelof2ndTimePeriod | 0.0006ton/year | 0.012ton/year | N/A |
| MainLuckPharmaceuticals | Phosphate | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.05mg/l | DB44/26-2001-A-levelof2ndTimePeriod | 0.00006ton/year | 0.0006ton/year | N/A |
| MainLuckPharmaceuticals | BOD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 10mg/L | DB44/26-2001-A-levelof2ndTimePeriod | 0.012ton/year | 0.024ton/year | N/A |
| MainLuckPharmaceuticals | SS | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 2mg/L | DB44/26-2001-A-levelof2ndTimePeriod | 0.0024ton/year | 0.072ton/year | N/A |
ConstructionandoperationofpollutionpreventionandcontrolfacilitiesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedpollutionpreventionandcontrolfacilitiesforwastewater.Inthedailymanagementprocess,enterprisesestablishmanagementproceduresandoperatinginstructionsforenvironmentalprotectionfacilities,andensurethenormalandcompliant
operationofanti-pollutionfacilitiesthroughsystemimplementationandresponsibilityimplementation.Allenterprisesarecontinuouslyinvestingfundsandsteppingupthetransformationandimprovementofpollutionpreventionandcontrolfacilitiestoensurethestableoperationofpollutionpreventionfacilitiesandimprovethedisposalcapacityofenvironmentalprotectionfacilities.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativelicensesAtpresent,theprojectsofallkeymonitoringunitshavecarriedoutenvironmentalimpactassessmentsandobtainedapprovals.Theprojectstobebuiltalsocarryouttherelevantadministrativereviewproceduresaccordingtothe“threesimultaneous”requirementsoftheenvironmentalprotectionfacilitiesoftheconstructionproject.EmergencyplanforenvironmentalemergenciesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveformulatedtheEmergencyPlanforEnvironmentalEmergenciesandreportedthemaccordingtotheregulatoryrequirementsofthelocalregulatoryauthorities.Accordingtothemanagementrequirementsoftheemergencyplan,thekeyunitsregularlycarryoutemergencyplandrillstofurtherprovidetheenterprises’emergencyresponsecapability.Environmentalself-monitoringschemeAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedenvironmentalself-detectionschemeandplan,andimplementedself-inspection,third-partydetectionandothermonitoringmethodsaccordingtothegovernmentrequirements.Relevantmonitoringdataandreportshavebeenarchivedandsaved.OtherenvironmentalinformationthatshouldbedisclosedTheabovetwocompaniesarejointstockcompaniesoftheCompany.TheCompanyanditsholdingsubsidiariesarenotlistedaskeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment.RelevantinformationonenvironmentprotectionNil
XIX.Explanationonothersignificantevents
□Applicable√NotapplicableNoothersignificanteventsneedtoexplaininthereportingperiod.XX.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
SectionVI.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital
1.ChangesinShareCapital
InShare
| 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□NotapplicableThemajorassetsreorganizationnon-publicofferingofsharesforyearof2016wereliftedon6Jan.2020,59,989,270sharesarereleasedfortrading,representing14.01%ofthetotalsharecapitaloftheCompany.
2.Changesofrestrictedshares
√Applicable□Notapplicable
InShare
| Shareholders | Openingsharesrestricted | RestrictedsharesincreasedinthePeriod | SharesreleasedinPeriod | Endingsharesrestricted | Restrictedreasons | Dateforreleased |
| SinopharmGroupCo.,Ltd | 55,057,700 | 0 | 0 | 55,057,700 | Non-publicofferingshare | OnJanuary6,2020,49,551,930shareswerereleasedforsale,and5,505,770lock-upshares. |
| ChinaNationalPharmaceuticalForeignTradeCorp. | 5,323,043 | 0 | 0 | 5,323,043 | Non-publicofferingshare | The5,323,043shareshasbeenliftedonJanuary6,2020. |
| PingAnAsset-ICBM-PingAnAssetXinxiangNo.7InsuranceAssetManagementProduct | 2,557,148 | 0 | 0 | 2,557,148 | Non-publicofferingshare | The2,557,148shareshasbeenliftedonJanuary6,2020. |
| PingAnAsset-ICBM-XinxiangNo.3AssetManagementProduct | 2,557,149 | 0 | 0 | 2,557,149 | Non-publicofferingshare | The2,557,149shareshasbeenliftedonJanuary6,2020. |
| Total | 65,495,040 | 0 | 0 | 65,495,040 | -- | -- |
II.Securitiesissuanceandlisting
1.Securityoffering(withoutpreferredstock)inReportingPeriod
□Applicable√Notapplicable
2.Changesoftotalsharesandshareholdersstructureaswellasexplanationonchangesofassetsandliabilitystructure
□Applicable√Notapplicable
3.Currentinternalstaffshares
□Applicable√NotapplicableIII.ParticularsaboutshareholderandactualcontrolleroftheCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShare
| Totalcommonstockshareholdersinreportingperiod-end | 20,191 | Totalcommonstockshareholdersatendoflastmonthbeforeannualreportdisclosed | 26,399 | Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)(foundinnote8) | 0 | Totalpreferenceshareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed(ifapplicable)(foundinnote8) | 0 | ||||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | |||||||||||||||
| FullnameofShareholders | Natureofshareholder | Proportionofsharesheld | Totalshareholdersattheendofreportperiod | Changesinreportperiod | Amountoflock-upsharesheld | Amountofun-restrictedsharesheld | Numberofsharepledged/frozen | ||||||||
| Stateofshare | Amount | ||||||||||||||
| SinopharmGroupCo.,Ltd | State-ownedCorporation | 56.06% | 239,999,991 | 55,057,700 | 184,942,291 | ||||||||||
| HongKongSecuritiesClearingCompanyLtd | ForeignCorporation | 5.13% | 21,952,787 | 21,952,787 | |||||||||||
| HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD | ForeignCorporation | 2.68% | 11,469,644 | 11,469,644 | |||||||||||
| ChinaNationalPharmaceuticalForeignTradeCorp. | State-ownedCorporation | 1.24% | 5,323,043 | 5,323,043 | 0 | ||||||||||
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | ForeignCorporation | 1.13% | 4,825,907 | 4,825,907 | |||||||||||
| CentralHuijinInvestmentLtd. | State-ownedCorporation | 0.89% | 3,804,400 | 3,804,400 | |||||||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | ForeignCorporation | 0.78% | 3,358,761 | 3,358,761 | |||||||||||
| BankofChina–HarvestMedicalCareSecuritiesInvestmentFund | Domesticnonstate-ownedCorporation | 0.71% | 3,028,525 | 3,028,525 | |||||||||||
| Basicendowmentinsurancefund-portfolio1003 | Domesticnonstate-ownedCorporation | 0.69% | 2,933,056 | 2,933,056 | |||||||||||
| VALUEPARTNERSCLASSICFUND | ForeignCorporation | 0.64% | 2,747,418 | 2,747,418 | |||||||||||
| Explanationonassociatedrelationshipamongtheaforesaidshareholders | SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentpersonactinginconcertamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | ||||||||||||||
| Particularabouttoptenshareholderswithun-restrictsharesheld | |||||||||||||||
| Shareholders’name | Amountofun-restrictsharesheldatPeriod-end | Typeofshares | |||||||||||||
| Type | Amount | ||||||||||||||
| SinopharmGroupCo.,Ltd | 239,999,991 | RMBordinaryshares | 239,999,991 | ||||||||||||
| HongKongSecuritiesClearingCompanyLtd | 21,952,787 | RMBordinaryshares | 21,952,787 | ||||||||||||
| HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD | 11,469,644 | Domesticlistedforeignshares | 11,469,644 | ||||||||||||
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | 4,825,907 | RMBordinaryshares | 4,825,907 |
| CentralHuijinInvestmentLtd. | 3,804,400 | RMBordinaryshares | 3,804,400 |
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 3,358,761 | Domesticlistedforeignshares | 3,358,761 |
| BankofChina–HarvestMedicalCareSecuritiesInvestmentFund | 3,028,525 | RMBordinaryshares | 3,028,525 |
| Basicendowmentinsurancefund-portfolio1003 | 2,933,056 | RMBordinaryshares | 2,933,056 |
| VALUEPARTNERSCLASSICFUND | 2,747,418 | Domesticlistedforeignshares | 2,747,418 |
| NationalSocialSecurityFund-portfolio413 | 2,550,024 | RMBordinaryshares | 2,550,024 |
| Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders | ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentpersonactinginconcertamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | ||
Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod
□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompanyNatureofcontrollingshareholders:centralstate-ownedholdingTypeofcontrollingshareholders:legalperson
| Controllingshareholders | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| SinopharmGroupCo.,Ltd | LiZhiming | 2003-01-08 | 74618434-4 | Industrialinvestmentholding;managementandassetsreorganizationentrustedbypharmaceuticalenterprise;Chinesemedicine,Chinesemedicinetablets,chemicalmedicinepreparations,chemicalrawmaterials,antibiotics,biochemicaldrugs,biologicalproducts,narcoticdrugs,psychotropicsubstances,toxicdrugsformedicaluse(compatiblewiththebusinessscope),medicineIVDReagents,vaccine,anabolicagents,peptidehormonemedicaldevicemanagement,foodsalesmanagement(non-physicalmethod),technologydevelopment,technologytransfer,technicalconsultation,technicalserviceinthefieldofmedicaltechnology,chemicalrawmaterialsandproducts(excepthazardouschemicals,monitoringchemicals,fireworksandfirecrackers,flammablesandexplosives,explosivesforcivilianuse),businessmanagementconsulting,businessconsulting,marketinformationconsultingandinvestigation(nosocialsurveys,socialinvestigation,opinionsurveys,oropinionpolls),dataprocessingservices,e-commerce(novalue-addedtelecommunicationsfinancialservices),sales,design,productionagency,publishingvariousdomesticandforeignadvertisementsofdisinfectionproducts,dailynecessities,textilesandknitwear,sportinggoods,householdappliances,electronicproducts,furniture,toys,edibleagriculturalproducts,cosmetics,andculturalandsportsgoods,domestictrade(exceptspeciallicense),logisticsandrelatedconsultingservices,operatingvarioustypesofgoodsandimportandexportoftechnology(notattacheddirectoryofimportandexportcommodities),butexcludedtheimportandexportofgoodsandtechnologytheStatelimitsorprohibitthecompany.Ifanenterprise’soperationinvolvesanadministrativelicense,itshallbeoperatedonthebasisofthelicense. |
| Equityofotherdomestic/oversealistedcompanycontrolbycontrollingshareholderaswellasstock-jointinreportperiod | SinopharmGroupCo.,Ltd.hold54.72percentequityofChinaNationalMedicinesCorporationLtd(Stockcode:600511)uptotheendofPeriod. | |||
Changesofcontrollingshareholdersinreportingperiod
□Applicable√NotapplicableTheCompanyhadnochangesofcontrollingshareholdersinreportingperiod.
3.ActualcontrolleroftheCompanyandpersonsactinginconcertNatureofactualcontroller:centralstate-ownedassetsmanagementTypeofactualcontroller:legalperson
| Actualcontrollingshareholders | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| ChinaNationalPharmaceuticalGroupCorporation | LiuJingzhen | 1987-03-26 | 10000588-8 | Chinesepatentdrug,traditionalChinesemedicinespreparedinready-to-useforms,traditionalChinesemedicinalmaterials,chemicalAPI,chemicalmedicinepreparation,antibiotics,biochemicaldrugandbiologicpharmacy(Licenseforpharmaceuticaltradingrunsuntil12May2020);mandatoryforpharmaceuticalenterprise,assetreorganization;consultingserviceofmedicineindustrialinvestment;exhibitionofmedicaldevices;consultingserviceswithmainbusinessconcerned.(theenterprisehasindependentchoicesonoperationitemsforbusiness;inrightofexequaturtorunifreferstopermissionoperation;operationactivitythatprohibitedorrestrictedbytheCityGovernmentarenotallowed) |
Equityofdomestic/oversealistedcompanycontrolbyactualcontrollerinreportperiod
Name
| Name | Nameoflistedcompanywithsharesheld | Totalshareholdersheld(10thousandshares) | Proportionofsharesheld |
| SINOPHARM | JianminGroup | 132.35 | 0.86% |
| SINOPHARM | SinopharmHolding | 20,728.95 | 6.64% |
| SinopharmHoldingIndustrialInvestmentCo.,Ltd. | SinopharmHolding | 157,155.60 | 50.36% |
| SinopharmHolding | SinopharmHolding | 41,284.17 | 54.72% |
| SinopharmHolding | SinopharmAccord | 24,000.00 | 56.06% |
| SinopharmHolding | LianhuanPharmaceutical | 375.21 | 1.30% |
| SIPS | ShyndecPharmaceutical | 23,951.26 | 22.68% |
| ChinaNationalPharmaceuticalInvestmentCo.,Ltd. | HengruiMedicine | 18,511.94 | 4.16% |
| ChinaNationalBiotecGroupCo.,Ltd. | BTBP | 52,228.04 | 49.96% |
| SINOPHARMH.K.Co.,Ltd. | ChinaTCM | 163,468.56 | 32.46% |
Changesofactualcontrollerinreportingperiod
□Applicable√NotapplicableNochangesofactualcontrollersfortheCompanyinreportingperiod.PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
5.Limitationandreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Applicable√Notapplicable
SectionVII.PreferredStock
□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.
SectionVIII.ConvertibleBonds
□Applicable√Notapplicable
TheCompanyhadnoconvertiblebondsinthePeriod
SectionIX.ParticularsaboutDirectors,Supervisors,Senior
ExecutivesandEmployeesI.Changesofsharesheldbydirectors,supervisorsandseniorexecutives
| Name | Title | Workingstatus | Sex | Age | Startdatedofofficeterm | Enddateofofficeterm | Sharesheldatperiod-begin(Share) | Amountofsharesincreasedinthisperiod(Share) | Amountofsharesdecreasedinthisperiod(Share) | Otherchanges(share) | Sharesheldatperiod-end(Share) |
| ChenShengqun | Independentdirector | Currentlyinoffice | M | 57 | 2018-04-17 | 1,500 | 0 | 0 | 0 | 1,500 | |
| ChenChangbin | DeputyGM,SecretaryoftheBoard | Currentlyinoffice | M | 52 | 2015-01-13 | 2,651 | 0 | 0 | 0 | 2,651 | |
| Total | -- | -- | -- | -- | -- | -- | 4,151 | 0 | 0 | 0 | 4,151 |
II.Changesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
| Name | Title | Type | Date | Reasons |
| LiuTianrao | DeputyGM | Appointmentandremoval | 2019-01-11 | NewDeputyGM |
| MaZhanjun | Director | Appointmentandremoval | 2019-01-24 | NewDirectorof8thBOD |
| MaZhanjun | DeputyChairman | Appointmentandremoval | 2019-01-31 | NewDeputyChairmanof8thBOD |
| SuWeiwei | IndependentDirector | Appointmentandremoval | 2019-01-24 | NewIndependentDirectorof8thBOD |
| WuYijian | Chairmanoftheboardofsupervisors,supervisor | Officeleaving | 2019-05-17 | Resignfromchairmanoftheboardofsupervisors,supervisorforjobarrangement |
| WenDeyong | Supervisor | Appointmentandremoval | 2019-05-17 | NewSupervisorof8thBoardofsupervisors |
| WenDeyong | Chairmanoftheboardofsupervisors | Appointmentandremoval | 2019-07-10 | NewChairmanoftheboardofsupervisorsof8thBoardofsupervisors |
III.Post-holding
Professionalbackground,majorworkingexperienceandpresentmainresponsibilitiesinCompanyofdirectors,supervisorsandseniorexecutiveatthepresent
1.MembersofBOD
Mr.LiuYong,joinedSinopharmGroupCo.,LtdinJanuary2003andservesasexecutivedirectorandpresidentofSinopharmHoldingsinceNovember2017andactsasdeputypartysecretaryofSinopharmHoldingsinceJanuary2018;Mr.Liuownover26yearsofworkingexperience,amongwhich,over23yearsarerelatedtomanagementexperienceinmedicineandhealthcareproductsindustry.Heisapharmacist-in-chargeandlicensedpharmacist.DuringtheperiodfromJuly1992toJuly1999,Mr.LiuworkedintheShanghaiPharma,andsuccessivelyservedasdeputygeneralmanagerofthemarketingdepartmentofShanghaiBranchofChinaNationalPharmaceuticalGroupCorporationandShanghaiGuodaDrugstoreChainCompanyLimitedfromJuly1999toApril2003.Mr.LiuservedasGMandpartysecretaryoftheSinopharmHoldingShenyangCo.,LtdfromApril2003toNovember2009;adeputypresidentofSinopharmHoldingfromJanuary2009toNovember2017;theSecretaryoftheBoardofSinopharmHoldingfromOctober2016toNovember2017andGeneralCounselofSinopharmHoldingfromJanuary2014toDecember2017.Currently,healsoactsastheDirectorofSINOPHARM,SinopharmHoldingGuodaDrugstoreCo.,Ltd.,ChinaNationalScientificInstruments&MaterialsCo.,LtdandChinaNationalMedicalEquipmentCo.,Ltd.;andDirectorandGMofSinopharmHoldingH.K.Co.,Ltd.Mr.LiuservesasDirectorofthe7
th
BODoftheCompanysinceJanuary2017andChairmanofthe
thand8thBODoftheCompanysinceOctober2017.Mr.MaZhanjunservedaspresidentofWuhanRuipuPharmaceuticalCo.,Ltd.fromDecember2000toDecember2003,fromJanuary2004toApril2005,heservedasgeneralmanagerofSinopharmGroupPharmaceuticalHoldingWuhanCo.,Ltd.,fromApril2005toDecember2005,heservedasexecutivedeputygeneralmanagerofSinopharmHoldingHubeiCo.,Ltd.,andheservedasgeneralmanagerofSinopharmGroupHubeiCo.,Ltd.fromJanuary2006toDecember2014,fromJanuary2015toOctober2018,heservedaspresidentofSinopharmHoldingHubeiCo.,Ltd.,sinceNovember2018,hehasconcurrentlybeenservingasvicepresidentofSinopharmHoldingHubeiCo.,Ltd.SinceJanuary2019,hehasbeenservingasvicepresidentoftheeighthboardofdirectorsoftheCompany.Mr.LiZhiming,chairmanoftheboardandthedeputyPartySecretaryofSinopharmGroupCo.,Ltd,hejoinedtheSinopharmHoldinginMay2010asdeputypresident,servedasexecutivedirectorandpresidentofSinopharmHoldingfromNovember2013toMarch2017;HeservesaschairmanofSinopharmHoldingsinceNovember2017andheisthedeputypartysecretaryofSinopharmHoldingsinceNovember2018.Mr.LiheldthepositionofGeneralcounsel,SecretaryofCommitteeforDisciplineInspection,chairmanofthelaborunion,deputyPartySecretaryandpartysecretaryofSinopharmHoldingfromOctober2012toMarch2017.Heownsmorethan37yearsofworkingexperience,amongwhich,33yearsarerelatedtomanagementexperienceinmedicineandhealthcareproductsindustry.Heisasenioreconomistandpharmacist-in-charge.DuringtheperiodfromJuly1985toJuly1996,Mr.LisuccessivelyservedasdeputydirectorofthefinancingdepartmentofXinjiangXinteNationalityPharmacyCompanyLimited,deputygeneralmanagerandchiefaccountantofXinjiangPharmaceuticalIndustryandTradingCorporation,deputygeneralmanagerandchiefaccountantofXinjiangXinteNationalityPharmacyCorporation,anddeputydirectorofthepreparationofficeofXinjiangAutonomousRegionMedicineAdministrationBureau.FromJuly1996toFebruary2016,Mr.LiworkedinXinjiangXinteNationality
PharmacyCorporationasgeneralmanager,chairmanoftheboardandpartysecretary,andworkedinXinjiangPharmaceuticalGroupCorporation(currentlyknownasSinopharmGroup(Xinjiang)Co.,Ltd.)asitsgeneralmanager,DeputyChairmanoftheboard,chairmanoftheboardandpartysecretary.Currently,healsoservesasDirectorofChinaNationalXinjiangMedicineCo.,Ltd,SinpharmHoldingSenyiTech.(Shanghai)Co.,Ltd,ChinaNationalPharmaceuticalCo.,LtdandSinopharmHoldingGuodaDrugstoreCo.,Ltd.;thedeputychairmanofShanghaiShyndecPharmaceuticalCo.,LtdandChairmanofSinopharmHoldingH.K.Co.,Ltd,SinopharmHolding(China)FinanceLeasingCo.,Ltd,ChinaNationalZhongjin(Shanghai)MedicalHealthInvestmentManagementCo.,LtdandSinopharmHoldingMedicineInvestmentCo.,Ltd;HeservedasChairmanoftheCompanyfromFebruary2014toAugust2016andactsasDirectorofthe7
th
and8
thBODoftheCompanysinceAugust2016.Mr.JiangXiuchang,enteredintoSinopharmHoldingastheCFOinMay2010,andhehasalsoactedasvicepresidentofSinopharmHoldingsinceJuly2013.Mr.Jiangownsover31yearsofworkingexperiences,amongwhich,20yearsofmanagementexperiencesarerelatedtomedicineandhealth-careindustries.Heisasenioreconomistandsenioraccountant.Mr.Jianghasworkedasdeputydirectorofinformationdepartment,deputydirectorofrestructuringoffice,deputydirectoroffinancialdepartmentaswellasdeputydirectorofpharmaceuticaldepartmentinChinaNationalPharmaceuticalGroupCorporationfromJuly1986toMarch2002;hehasalsoservedasdeputydirector,directoroffinancialdepartmentandchieffinancialofficerofChinaNationalMedicinesCorporationLtd.insuccessionfromMarch2002toMay2010.Currently,Mr.JiangservesasChairmanofSinopharmHoldingJiangxiCo.,Ltd,SinopharmHoldingShanxiCo.,ltd,SinopharmHoldingTianjinCo.,ltd.andChinaNationalMedicinesCorporationLtd;DirectorofSinopharmHoldingH.K.Co.,ltdandChinaNationalFinanceCorporationLtd;andexecutiveDirectorofBeijingSinopharmTaiyuanPropertyManagementCo.,LtdandSINOPHARMShanghaiCo.,Ltd;heservesasDirectorofthe6
th
,7
th
and8thBODoftheCompanysinceMarch2011.Mr.LianWanyongisvicepresidentofSinopharmGroupCo.,Ltd.HejoinedChinaNationalPharmaceutical(Group)CorporationGuangzhouCompanyin1996andsuccessivelyservedasproductdirectorofYuexingPharmaceuticalCo.,Ltd.andseniorproductmanagerofHongKongTianjianInternationalCo.,Ltd.FromAugust2002toJanuary2004,heservedasdeputymanagerofthefinancialdepartmentofBarrlaboratories,Inc.,USA.FromJanuary2004toJune2005,hewasappointedasmanagerofoperationalauditdepartmentofChinaMedicinalMaterialsGroupCompany.FromJuly2005toJanuary2008,hewasappointedasdeputydirectoroffinancialassetmanagementdepartmentanddirectorofinvestmentmanagementdepartmentofChinaNationalPharmaceutical(Group)Corporation.FromDecember2010toFebruary2014,heservedasdeputygeneralmanagerofBeijingSinopharmAssetManagementCenter,fromApril2014toJanuary2018,heservedasdeputydirectorofthePolicyResearchOfficeofChinaNationalPharmaceuticalGroupCorporation.SinceJanuary2018,hehasbeenservingasvicepresidentofSinopharmGroupCo.,Ltd.,andMr.LianisconcurrentlyservingaschairmanofSinopharmHoldingAnhuiCo.,Ltd.,SinopharmHoldingHubeiCo.,Ltd.,andSinopharmHoldingChangshaCo.,Ltd.,anddirectorofChinaNationalMedicinesCorporationLtd.,director
ofChinaNationalZhongjin(Shanghai)MedicalHealthInvestmentManagementCo.,Ltd,anddirectorofWestChinaDentalCo.,Ltd.HeservesasDirectorof8
th
BODoftheCompanysinceApril2018.Mr.LiDongjiuisvicepresidentandgeneralcounselofSinopharmGroupCo.,Ltd.FromApril1997toJanuary2002,heservedasdeputygeneralmanagerofNorthChinaPharmaceuticalHuashengCo.,Ltd.,fromJanuary2002toDecember2009,heservedasdeputygeneralmanagerofNorthChinaPharmaceuticalCo.,Ltd.,andconcurrentlyservedasgeneralmanagerofNorthChinaPharmaceuticalGroupSalesCompany,andpropertyrepresentativeofNorthChinaPharmaceuticalGroupSouthernCompany(concurrently),fromDecember2009toJune2010,heservedasexecutivepresidentofShanghaiFosunPharmaceuticalIndustryDevelopmentCo.,Ltd.,andfromJune2010toSeptember2011,hewasappointedasvicepresidentofShanghaiFosunPharmaceutical(Group)LimitedanddirectorofthePharmaceuticalManagementCommittee,andpresidentofShanghaiFosunPharmaceuticalIndustryDevelopmentCo.,Ltd.,fromSeptember2011toJanuary2018,heservedasseniorvicepresidentofShanghaiFosunPharmaceutical(Group)Limited,andconcurrentlyservedasdirectorofpharmaceuticalbusinessandconsumergoodsmanagementcommitteeandchairman,presidentofShanghaiFosunPharmaceuticalIndustryDevelopmentCo.,Ltd.andconcurrentlyvice-presidentofpharmaceuticalindustrymanagementcommittee,responsibleforstrategy,investment,operationandmanagementofpharmaceuticalbusinessandconsumerproduct.SinceJanuary2018,hehasbeenservingasvicepresidentofSinopharmGroupCo.,Ltd.Mr.LiisconcurrentlydirectorofChinaNationalMedicinesCorporationLtd.,andchairmanofSinopharmHoldingFujianCo.,Ltd.,SinopharmHoldingFuzhouCo.,Ltd.,SinopharmHoldingGuizhouCo.,Ltd.,SinopharmHoldingYunnanCo.,Ltd.,SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.,SinopharmHoldingHainanCo.,Ltd.,ChinaNationalHealthOnlineCo.,Ltd.,SinopharmChemicalReagentCo.,Ltd.andSinopharmHoldingHutchisonWhampoaMedicineCo.,Ltd.,SinopharmHoldingShanxiCo.,Ltd.andSinopharmHoldingGansuCo.,Ltd.HeservesasDirectorof8
th
BODoftheCompanysinceApril2018.Mr.LinZhaoxiong:DirectorandGMofSinopharmAccord.Hasservedasdeputymanagerandmanagerofpharmaceuticaldepartment,managerofPharmaceuticalcorporationsanddirectorofoperationandmanagementdepartmentduringhisworkinChinaPharmaceutical(Group)GuangzhouCo.,LtdfromJanuary1999toDecember2003insuccession;HehasactedasthedeputygeneralmanagerofSinopharmHoldingGuangzhouCo.,Ltd;thegeneralmanagerofSinopharmHoldingGuangzhouCo.,LtdfromDecember2006toDecember2008;HehasservedasthedeputygeneralmanageroftheCompanyfromDecember2008toMarch2016;MrLinservesasthechairmanofSinopharmHoldingGuodaDrugstoreCo.,LtdsinceOctober2017;andGMoftheCompanysinceMarch2016,Directorofthe7
th
and8
th
BODoftheCompanysinceApril2016.Mr.ChenHonghui,professorofLingnan(University)CollegeofSunYat-SenUniversity,adoctoralsupervisorofmanagement.Heworkedinschoolofmanagement,WuhanUniversityofScience&TechnologyfromJuly1993toJune2003andsuccessivelyactedasatutorandinstructor;heworksinLingnan(University)CollegeofSunYat-SenUniversitysinceJuly2003andalsoservedasdeputyprofessorandprofessor;vicepresidentoftheLingnan(University)CollegeofSunYat-SenUniversityfrom2007to2012;thedirectorofdepartmentof
businessadministrationinLingnanCollegefrom2008to2019,thedirectorofCorporateSocialResponsibilityResearchCenterinLingnanCollegesince2018,currentlyMr.ChenservesasdeputychairmanoftheGDISR,independentdirectorofCabbeenFashionCo.,LtdandGuangzhouGrandbuyCo.,Ltd.Heservesasindependentdirectorofthe7
th
and8
th
BODoftheCompanysinceMarch2017.Mr.OuYongliangisaChinesepracticinglawyer,vicechairmanofAllChinaLawyersAssociation,vicechairmanofGuangdongProvinceLawSociety,presidentofthe9
th
and10
thSessionofGuangdongLawyersAssociation,directorofGuangdongHopesunLawFirm,memberofthe12
th
SessionofGuangdongProvincialCommitteeoftheCPPCC,expertadvisorofthe11
th
PartyCongressofGuangdongProvincialPartyCommitteeoftheCommunistPartyofChina,legislativeconsultantofthe12
thSessionofStandingCommitteeofGuangdongProvincialPeople’sCongress,speciallyinvitedmemberofthe11
th
SessionofGuangdongProvincialCommitteeoftheCPPCC,memberoftheGuangdongProvincialJudgeandProsecutorSelectionCommittee,representativeofthe9
th
CongressofGuangzhouMunicipalityoftheCommunistPartyofChina,arbitratorofChinaInternationalEconomicandTradeArbitrationCommission,arbitratorofShenzhenInternationalArbitrationCommission,arbitratorofShanghaiInternationalArbitrationCommission,andarbitratorofGuangzhouArbitrationCommission.Heservesasindependentdirectorofthe8
th
BODoftheCompanysinceApril2018.Mr.ChenShengqunisanassociateresearcherandsenioraccountant,hehasbeenteachingattheShanghaiNationalAccountingInstitutesince2013.Mr.ChencameoutofthepostdoctoralresearchstationofShanghaiUniversityofFinanceandEconomicsin1998asthefirstpostdoctoralfellowinmanagementaccounting.HewasemployedasaseniorresearcherattheCAFRCenteroftheHongKongPolytechnicUniversityandiscurrentlyavisitingprofessorofEDPcurriculumattheXiamenUniversity.Since1998,Mr.ChenhasservedasdirectorofthefinancedivisionofChinaPacificInsuranceCo.,Ltd.,in2002,hewastransferredtoserveasdeputygeneralmanagerofthefinancingplandepartmentofChinaPacificInsuranceCo.,Ltd.(presidingwork),attheendof2003,hejoinedChinaReinsuranceGroupandsuccessivelyservedasgeneralmanagerofthefundapplicationdepartmentofChinaContinentInsurance(concurrentlygeneralmanagerofthestrategicdevelopmentdepartment,andgeneralmanagerassistantofChinaReAssetManagementCompany.Heservesasindependentdirectorofthe
th
BODoftheCompanysinceApril2018.Ms.SuWeiwei:Doctorofpharmacy,professorofSchoolofLifeSciencesofSunYat-SenUniversityandadoctoralsupervisor.SheworkedinGuangdongpharmaceuticalUniversityfromJuly1987toApril2000,andsuccessivelyservedasateachingassistant,lecturers,associateprofessorandprofessor,sheservesasaprofessorinSunYat-SenUniversitysinceMay2000.Ms.SuWeiweihavedevotedherselftotheresearchanddevelopmentofinnovativedrugsformanyyears,andachievedtwochemicalclinicalpermissionforfirst-typenewdrugsandoneclinicalpermissionforthefifth-typenewdrugsofTCM(traditionalChinesemedicine)whichhaveindependentintellectualpropertyrights.
2.MembersofBOS:
Mr.WenDeyong,joinedSinopharmGroupCo.,Ltd.inSeptember2017,andhasbeenservingasanon-executivedirectorofSinopharmGroupCo.,Ltd.tothisday.FromSeptember1995toMay2016,Mr.Wenservedasatechnicianinthehydro-acupunctureworkshopofChongqingNo.6PharmaceuticalFactory,fieldsalesmanofsalesdepartmentofChongqingYaoPharma,salesdirectorofChongqingYaoPharmaCo.,Ltd.,generalmanagerofsalesdepartment2ofChongqingYaoPharmaCo.,Ltd.,generalmanagerofNorthernCompanyofChongqingHaisimanPharmaceuticalCo.,Ltd.,vicepresidentofChongqingYaoPharma,presidentofChongqingYaoPharma,currentlyservesasvicepresidentofShanghaiFosunPharmaceutical(Group)Co.,Ltd.,directorofpharmaceuticalbusinessmanagementcommittee,generalmanagerofcentralizedprocurementandprocurementmanagementdepartment,andexecutivevicepresidentofShanghaiFosunPharmaceuticalIndustryDevelopmentCo.,Ltd.HehasbeenthechairmanoftheboardofsupervisorsoftheeighthboardofsupervisorsoftheCompanysinceJuly2019.Ms.LiuJingyun,postgraduatebackground.Currentlysheservesasthedirectoroffinancialandassetmanagementanddirectorofassetsandcreditmanagementdept.inSinopharmGroupCo.,Ltd.andhesuccessivelyholdateachingpostinNanjingRadioandTelevisionUniversity,worksinSinopharmGroupCo.,Ltd.sinceNovember2003andservesasdeputydirectorofassetsmanagementdepartment,directorofthefinancial&assetsmanagementdept.andDirectorofministryoffinanceandcreditmanagement.Sheservesassupervisorofthe7
th
and8
th
supervisorycommitteeoftheCompanysinceSeptember2016.Ms.ChenGuojing:sheworkedinShenzhenAccordMedicinalMaterialsCompanyinDecember1999,nowsheservesastheofficedirectoranddirectorofsecuritydepartmentintheCompany.Ms.ChenservedasthefinancialmanageranddeputychiefofFinanceandFundsDepartmentoftheCompanyfromJune2005toDecember2013,sheisthememberoftradeunionfederationsoftheCompanyandchairmanofthefirsttradeunionsinceMarch2009;sheservedaschief(part-time)oftheauditingdepartmentoftheCompanyfromJanuary2013toAugust2017,andchief(part-time)oftheriskandoperationmanagementoftheCompanyfromJanuary2014toMay2016.Sheservesasstaffsupervisorofthe8
th
supervisorycommitteeoftheCompanysinceAugust2018
3.SeniorexecutiveMr.LinZhaoxiong,foundinaforesaidpreviousworkexperienceMr.LinMin:DeputyGMoftheCompany.workedinChinaPharmaceutical(Group)GuangzhouCo.,Ltdwithsuccessivelytakingthepostsofassistanttomanager,deputygeneralmanagerofPharmacyDepartmentanddeputygeneralmanagerofpurchasinginPharmaceuticalCompanyfromJan.2001toNov.2003;thecitymedicalsalesdirectorofSinopharmHoldingGuangzhouCo.,Ltd.FromNovember2003toJanuary2005;tookdeputygeneralmanagerofSinopharmHoldingGuangzhouCo.,LtdfromJan.2005toDec.2008;healsoactingastheGMofdistributionbusinessdept.oftheSinopharmAccordandSinopharmHoldingGuangzhouCo.,Ltd.heservesasdeputyGMoftheCompanysinceDecember2008.
Mr.ZhaoXiaochuan:DeputyGMoftheCompany.HehasservedasthegeneralmanagerofLiaoningAccordChainCo.,LtdfromDecember2001toApril2008;servedasthegeneralmanagerofSinopharmHoldingGuodaTianYiTangDrugstoreChain(Shenyang)Co.,LtdandSinopharmHoldingGuodaShenyangChainCo.,LtdfromMay2008toJune2015;hehasactedasgeneralmanagerofSinopharmHoldingGuodaDrugstoreCo.,LtdsinceJune2015;HehasworkedasthedeputygeneralmangeoftheCompanysinceJuly2017.Mr.LiuTianyaoisdeputygeneralmanageroftheCompany.FromAugust2002toApril2009,heservedasseniordirectorofhumanresourcesdepartmentofChinaNationalPharmaceuticalGroupCorporation.FromApril2009toMay2017,hesuccessivelyservedasdeputydirectorofhumanresourcesdepartment,directoroftalentdevelopmentdepartment,directorofhumanresourcesdepartment,anddirectorofretailmedicalbusinessdevelopmentdepartmentofSinopharmGroupCo.,Ltd.,fromDecember2013toJuly2016,heconcurrentlyservedasgeneralmanagerofShanghaiManagementConsultingBranch,fromJuly2016toMay2017,heconcurrentlyservedasgeneralmanagerofSinopharmHoldingMedicalManagement(Shanghai)Co.,Ltd.,fromMay2017toJanuary2019,hehasbeenservingasdirectorofhumanresourcesanddirectorofhumanresourcesdepartmentofSinopharmGroupCo.,LtdandheservesasDeputyGMoftheCompanysinceJanuary2019.Mr.LinXinyang:DeputyGMoftheCompany.HetooktheturnsofdeputyGMofNanfangPharm.Co.,deputyGMofChinaPharmaceutical(Group)GuangzhouCompanyYuexingCompany,generalsupervisorofPDofSinopharmHoldingGuangzhouCompanysuccessivelysinceJanuary1996;tookthepostofdeputyGMofSinopharmHoldingGuangzhouCompanyfromJan.toDec.2004;servesasdeputyGMoftheCompanysinceJanuary2005.Mr.LangBaochunisdeputysecretaryofthepartycommittee,secretaryofthedisciplinarycommittee,chairmanofthelaborunionandgeneralcounseloftheCompany.FromSeptember2007toMarch2008,heservedasdeputydirectorofgeneralofficeofSinopharmGroupCo.,Ltd.,fromMarch2008toDecember2009,heservedasgeneralmanagerofShanghaiChuanghuiInvestmentCo.,Ltd.,fromJanuary2010toMay2010,heservedasdirectoroftheresearchofficeofShanghaiShibeiHi-Tech(Group)Co.,Ltd.,fromJune2010toSeptember2011,heservedasdeputydirectorofthepresident’sofficeofSinopharmGroupCo.,Ltd.,fromOctober2011toDecember2015,heservedasdirectorofthestrategicplanningdepartmentofSinopharmGroupCo.,Ltd.,fromJanuary2016toJune2017,heservedassecretaryofthepartycommitteeofSinopharmGuodaDrugstoreCo.,Ltd.,fromMarch2016toFebruary2018,heservedasdeputysecretaryofthepartycommitteeandsecretaryofthedisciplinarycommitteeoftheCompany.SinceMarch2018,hehasbeenservingasdeputysecretaryofthepartycommittee,secretaryofthedisciplinarycommittee,andchairmanofthelaborunionoftheCompany.HeservesasGeneralCounseloftheCompanysinceAugust2018Mr.WeiPingxiao:CFOoftheCompany.HetooktheturnsofdeputysectionchiefoffinancialdepartmentofChinaElectronicInformationIndustryGroup,financialdirectorofAMOI,sectionchiefofplanningfinancialdepartmentofChinaElectronicFinanceLeasingCompany,DeputyGMofAMOIBeijingbranch,financial
chargerofAMOIanddirectorofitssubsidiarysinceApril1993;andheholdthepostofCFOoftheCompanysinceDecember2004.Mr.ChenChangbin:DeputyGMoftheCompany,andSecretaryoftheBoard.HehasservedassecretaryofboardofdirectorsoftheCompanysinceDecember2000;hehasalsoworkedasthedirectorofplanninginvestmentmanagementdepartmentoftheCompanyaswellasassistantgeneralmanager,inchargeofstrategicplanning,investmentandmergersandacquisitions,capitaloperation,affairsrelatedtothreemajormeetingsandinternationalco-operation.HehasactedasthedeputygeneralmanageroftheCompanysinceApril2017.Post-holdinginshareholder’sunit
√Applicable□Notapplicable
| Name | Nameofshareholder’sunit | Positioninshareholder’sunitn | Startdatedofofficeterm |
| LiuYong | SinopharmGroupCo.,Ltd | ExecutiveDirector,President | November2017 |
| LiuYong | SinopharmGroupCo.,Ltd | Deputypartysecretary | January2018 |
| LiZhiming | SinopharmGroupCo.,Ltd | Chairman | November2017 |
| LiZhiming | SinopharmGroupCo.,Ltd | Deputypartysecretary | November2018 |
| JiangXiuchang | SinopharmGroupCo.,Ltd | CFO | May2010 |
| JiangXiuchang | SinopharmGroupCo.,Ltd | DeputyPresident | July2013 |
| LianWanyong | SinopharmGroupCo.,Ltd | DeputyPresident | January2018 |
| LiDongjiu | SinopharmGroupCo.,Ltd | DeputyPresident | January2018 |
| LiDongjiu | SinopharmGroupCo.,Ltd | Generalcounsel | January2018 |
| LiuJingyun | SinopharmGroupCo.,Ltd | Directorofministryoffinanceandcreditmanagement,directorofthefinancial&assetsmanagementdept. | July2016 |
Post-holdinginotherunit
√Applicable□Notapplicable
| Name | Nameofotherunits | Positioninotherunitn | Startdatedofofficeterm |
| LiuYong | ChinaNationalMedicinesCorporationLtd | Director | November2017 |
| LiuYong | SinopharmHoldingGuodaDrugstoreCo.,Ltd. | Director | October2017 |
| LiuYong | ChinaNationalScientificInstruments&MaterialsCo.,Ltd | Director | December2018 |
| LiuYong | ChinaNationalMedicalEquipmentCo.,Ltd. | Director | December2018 |
| LiuYong | SinopharmHoldingH.K.Co.,ltd | Director,GM | May2018 |
| LiZhiming | ChinaNationalXinjiangMedicineCo.,Ltd | Director | June2017 |
| LiZhiming | ChinaNationalMedicinesCorporationLtd | Director | May2016 |
| LiZhiming | SinopharmHoldingGuodaDrugstoreCo.,Ltd. | Director | July2014 |
| LiZhiming | ShanghaiShyndecPharmaceuticalCo.,Ltd | ViceChairman | November2016 |
| LiZhiming | SinopharmHoldingH.K.Co.,ltd | Chairman | April2017 |
| LiZhiming | SinopharmHolding(China)FinanceLeasingCo.,Ltd | Chairman | November2014 |
| LiZhiming | ChinaNationalZhongjin(Shanghai)MedicalHealthInvestmentManagementCo.,Ltd | Chairman | September2016 |
| LiZhiming | SinopharmHoldingMedicineInvestmentCo.,Ltd | Chairman | October2017 |
| JiangXiuchang | SinopharmHoldingJiangxiCo.,Ltd | Chairman | June2013 |
| JiangXiuchang | SinopharmHoldingShanxiCo.,ltd | Chairman | December2013 |
| JiangXiuchang | SinopharmHoldingTianjinCo.,ltd | Chairman | December2013 |
| JiangXiuchang | ChinaNationalMedicinesCorporationLtd | Chairman | November2017 |
| JiangXiuchang | SinopharmHoldingH.K.Co.,ltd | Director | November2011 |
| JiangXiuchang | ChinaNationalFinanceCorporationLtd | Director | November2011 |
| JiangXiuchang | BeijingSinopharmTaiyuanPropertyManagementCo.,Ltd | ExecutiveDirector | December2017 |
| JiangXiuchang | SINOPHARMShanghaiCo.,Ltd | ExecutiveDirector | November2017 |
| MaZhanjun | SinopharmHoldingHubeiCo.,Ltd. | ViceChairman | November2018 |
| LianWanyong | ChinaNationalMedicinesCorporationLtd | Director | December2017 |
| LianWanyong | ChinaNationalZhongjin(Shanghai)MedicalHealthInvestmentManagementCo.,Ltd | Director | July2018 |
| LianWanyong | WestChinaDentalCo.,Ltd | Director | January2019 |
| LianWanyong | SinopharmHoldingAnhuiCo.,Ltd. | Chairman | January2019 |
| LianWanyong | SinopharmHoldingAnhuiMedicineCo.,Ltd. | Chairman | June2019 |
| LianWanyong | SinopharmHoldingChangshaCo.,Ltd. | Chairman | June2019 |
| LianWanyong | SinopharmHoldingHubeiCo.,Ltd. | Chairman | January2020 |
| LiDongjiu | ChinaNationalMedicinesCorporationLtd | Director | December2016 |
| LiDongjiu | SinopharmHoldingFujianCo.,Ltd | Chairman | February2018 |
| LiDongjiu | SinopharmHoldingFuzhouCo.,Ltd | Chairman | February2018 |
| LiDongjiu | SinopharmHoldingGuizhouCo.,Ltd | Chairman | February2018 |
| LiDongjiu | SinopharmHoldingYuannanCo.,Ltd | Chairman | February2018 |
| LiDongjiu | SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | Chairman | February2018 |
| LiDongjiu | SinopharmHoldingHainanCo.,Ltd. | Chairman | February2018 |
| LiDongjiu | ChinaNationalHealthOnlineCo.,Ltd. | Chairman | February2018 |
| LiDongjiu | SINOPHARMChemicalReagentCo.,Ltd. | Chairman | December2018 |
| LiDongjiu | SinopharmHoldingHutchisonWhampoaMedicineCo.,Ltd | Chairman | December2018 |
| LiDongjiu | SinopharmHoldingShanxiCo.,Ltd. | Chairman | January2020 |
| LiDongjiu | SinopharmHoldingGansuCo.,Ltd. | Chairman | January2020 |
Punishmentofsecuritiesregulatoryauthorityinrecentthreeyearstothecompany’scurrentandoutgoingdirectors,supervisorsandseniormanagementduringthereportingperiod
□Applicable√Notapplicable
IV.Remunerationfordirectors,supervisorsandseniorexecutives
Decision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives(i)Remunerationdecisionprocedureofdirectors,supervisors,seniormanagement:
TheCompanyimplementedtheannualsalarysystemforseniorexecutivesbasedonthe2019annualperformanceappraisal(scheme)onmanagementstaff,paidannualsalaryremunerationaccordingtotheappraisalresults.Remunerationandappraisalcommitteeofthecompany'sboardofdirectorsisresponsiblefortheformulationandexaminationofsalaryplanandprogramaswellasformulationandexaminationofsalaryplanandassessmentstandardsofdirectors(notincludingtheindependentdirectors),supervisorsandseniorexecutives.Theyalsoevaluatetheperformanceassessmentofdirectors,supervisorsandseniorofficersinaccordancewiththeassessmentcriteria,compensationscheme.(ii)RemunerationdeterminingbasisThemainprinciplesofmakingstandardofcompensationare:(1)thecompany'soverallbusinessandtheprofitlevel;(2)theoverallsalarylevelanddynamicindexoverpastyears;(3)differenceinpositionandduty;(4)relativeimportanceandrisksofposition;(5)relatedpostsalarylevelinthesameindustry;(6)individualprofessionalability.(iii)ActualpaymentExecutivesgetmonthlybasicsalaryandannualsalaryaftertheissuanceofannualexamination.
Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuan
| Name | Title | Sex(F/M) | Age | Post-holdingstatus | TotalremunerationbeforetaxobtainedfromtheCompany | ReceivedremunerationfromrelatedpartyoftheCompany(Y/N) |
| LiuYong | Chairman | M | 50 | Currentlyinoffice | Y | |
| MaZhanjun | DeputyChairman | M | 59 | Currentlyinoffice | 250 | Y |
| LiZhiming | Director | M | 56 | Currentlyinoffice | Y | |
| JiangXiuchang | Director | M | 56 | Currentlyinoffice | Y | |
| LianWanyong | Director | M | 49 | Currentlyinoffice | Y | |
| LiDongjiu | Director | M | 54 | Currentlyinoffice | Y | |
| LinZhaoxiong | Director,GM | M | 52 | Currentlyinoffice | 250 | N |
| ChenHonghui | IndependentDirector | M | 48 | Currentlyinoffice | 12 | N |
| OuYongliang | IndependentDirector | M | 50 | Currentlyinoffice | 12 | N |
| ChenShengqun | IndependentDirector | M | 57 | Currentlyinoffice | 12 | N |
| SuWeiwei | IndependentDirector | F | 60 | Currentlyinoffice | 11.3 | N |
| WenDeyong | Chairmanofsupervisorycommittee | M | 47 | Currentlyinoffice | Y | |
| WuYijian | Chairmanofsupervisorycommittee | M | 49 | Officeleaving | Y | |
| LiuJingyun | Supervisor | F | 43 | Currentlyinoffice | Y | |
| ChenGuojing | Staffsupervisor | F | 49 | Currentlyinoffice | 72.02 | N |
| LinMin | Partysecretary,DeputyGM | M | 55 | Currentlyinoffice | 225 | N |
| ZhaoXiaochuan | DeputyGM | M | 56 | Currentlyinoffice | 200 | N |
| LiuTianrao | DeputyGM | M | 40 | Currentlyinoffice | 175 | N |
| LinXinyang | DeputyGM | M | 55 | Currentlyinoffice | 175 | N |
| LangBaochun | Deputypartysecretary,SecretaryofCommitteeforDisciplineInspection,Generalcounsel | M | 56 | Currentlyinoffice | 162.5 | N |
| WeiPingxiao | CFO | M | 56 | Currentlyinoffice | 175 | N |
| ChenChangbin | DeputyGM,SecretaryoftheBoard | M | 52 | Currentlyinoffice | 150 | N |
| Total | -- | -- | -- | -- | 1,881.82 | -- |
Delegatedequityincentivefordirectorsandseniorexecutivesinreportingperiod
□Applicable√Notapplicable
V.Particularsofworkforce
1.Numberofstaff,professionalcompositionandeducationbackground
| Thenumberofcurrentemployeesofparentcompany(people) | 119 |
| Thenumberofcurrentemployeesofmainsubsidiaries(people) | 27,128 |
| Totalnumberofcurrentemployees(people) | 27,247 |
| Thetotalnumberofemployeesinpayroll(people) | 27,247 |
| Thetotalnumberofretiredstaffandworkersthattheparentcompanyandmainsubsidiariesneedtobearthecosts(people) | 1,914 |
| Professionalcomposition | |
| Categoryofprofessionalcomposition | Numberofprofessionalcomposition(people) |
| Productionstaff | 38 |
| Salesman | 19,030 |
| Technicalstaff | 201 |
| Financialstaff | 635 |
| Administrativestaff | 182 |
| Other | 7,161 |
| Total | 27,247 |
| Educationbackground | |
| Categoryofeducation | Number(people) |
| Post-graduatequalificationandabove | 163 |
| Undergraduate | 4,109 |
| Juniorcollege | 10,090 |
| Juniorcollegebelow | 12,885 |
| Total | 27,247 |
2.Remunerationpolicy
SinopharmAccordandthesubordinateenterprisesprovideperfectcompensationandbenefitsforthestaff,thecompensationleveliscloselycombinedwithorganization(totalamountoflabor,compensationstrategy,jobvalue),staff(capacitydevelopment,performanceresults),andmarket(marketlevel,talentcompetition).Thecompanyadjuststheremunerationforstaffhavingabilitiesandcontributionseveryyearbytheresponsibilitysorting,positionevaluation,targetremunerationrangepositioning,andthestaffannualworkperformanceandabilityassessment;atthesametime,performancebonusesandperformancecloselylinktogether,andrealizewin-winoftheinterestsofcompanyandtheinterestsofemployees.Payattentiontotheincomegrowthrequirementsoflow-incomegroups,developannualwagegrowthprogram,andimplementafterthedeliberationandapprovaloftheworkers'congress.
3.TrainingprogramsSinopharmAccordanditssubordinatecompaniesattachgreatimportancetobuildinglearningorganizations,investtrainingresourceseveryyeartotrainanddevelopemployeesatalllevels,andconstantlyimprovethecompany’strainingandcultivatingsystem.Firstly,optimizethetrainingmanagementsystem,revisethetrainingsystemmanagementsystem,theemployeetrainingmanagementsystem,theinternaltrainermanagementsystem,theemployeecontinuingeducationmanagementsystem,theinternmanagementsystem,theinternallecturermanagementsystem,andthetrainingintegralmanagementsystem,optimizeinternaltrainersmanagementprocess,annualtrainingneedsandplanmanagementprocess,andtrainingimplementationprocess.Secondly,theheadquarters,operationheadquarters,andkeysubsidiariesallsetupfull-timetrainingpoststoassistmanagersatalllevelstocarryoutemployeetraining.Thecompanyhaspromotedathree-leveltrainingmodelthroughoutthecompany,andconductedoutstandinglearningorganizations,learningprojects,excellentinternaltrainers,andexcellenttrainingmanagersonTeachers’Day.Thirdly,vigorouslypromoteonlinetraining,andusetheonlinelearningplatformtoorganizeonlinelearningandonlineassessmentforallemployees.Thepercapitalonlinelearninghoursforallemployeesexceed30hours,coveringmorethan3,000people.Fourthly,thetypesoftrainingincludetrainingfornewrecruits,vocationaltrainingforemployees,leadershiptrainingformanagers,andinternaltrainertraining.Coursesincludemanagementcourses,generalqualitycourses,andvocationalskillsclasses,thecoursesalsoincludegroupcoachingofactionlearningoutcomesconductedbymanagerstoemployees.Fifthly,asoftheendof2019,thetrainingexpensesoftheheadquartersanddistributionoperationheadquartersofSinopharmAccordandtheheadquartersofGuodaDrugstorewereabout1.85millionyuan,andthepercapitalperiodreachedmorethan50hours.In2019,itwontheExcellentLearningProjectAwardofthe“Training”magazineandtheExcellentLearningCaseAwardofSinopharm.
4.Laboroutsourcing
√Applicable□Notapplicable
| Totalnumberofworkinghoursoflaboroutsourcing(Hour) | 799,704 |
| Totalremunerationpaidoflaboroutsourcing(RMB) | 30,726,586.84 |
SectionX.CorporateGovernanceI.CorporategovernanceoftheCompanyDuringthereportingperiod,thecompanystrictlyfollowedtherequirementsoftheCompanyLaw,SecuritiesLaw,GovernmentGuidelinesforListedCompaniesandtherelevantlawsandregulationsoftheChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,continuouslyimprovedthecompany’scorporategovernancestructure,andestablishedandimprovedthecompany’sinternalcontrol.Thegeneralmeetingofshareholders,theboardofdirectorsandtheboardofsupervisorshavestandardizedoperations,independentdirectorsandspecialcommitteesoftheboardofdirectorshaveperformedtheirrespectiveduties,continuouslystrengthenedcompanymanagement,controlledandpreventedrisks,standardizedcompanyoperations,andimprovedoperationalefficiency.Thecompanygraduallyformedagovernancemechanismwithclearpowersandresponsibilities,standardizedoperations,mutualcoordination,andmutualchecksandbalancesamongpowerinstitutions,decision-makinginstitutions,supervisoryinstitutions,andmanagers.Duringthereportingperiod,thecompanystrengthenedinternalcoordinationandcommunication,revisedandimprovedinternalcontrolrelatedsystems,andsortedoutvariousworkprocesses,andfurtherimprovedthecompany’smanagementqualityandoperationalefficiency.Atthesametime,itcontinuouslystrengthenedthemanagementofinsideinformation,furtherimprovedtheprocesssystemsofinsideinformationmanagement,strengthenedthedisclosureofinformation,improvedthemanagementofinvestorrelations,strengthenedandimprovedthemanagementofaffiliatedcompanies,sothatthecompany’sstandardoperationlevelhasbeenfurtherimproved.Inthefuture,thecompanywillcontinuetostrictlyimplementthespecificrequirementsoftheregulatoryagencies,strengthentheimplementation,improvetheevaluationmechanism,andimprovethecorporategovernancestructure,atthesametime,strengthensupervision,andstrivetopromotegovernancetoahigherlevel.IsthereanydifferencebetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC?
□Yes√NoTherearenodifferencesbetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC.II.IndependenceoftheCompanyrelativetocontrollingshareholders’inaspectofbusinesses,personnel,assets,organizationandfinanceTheCompanytotallyseparatesfromthecontrollingshareholdersinbusiness,personnel,assets,institutions,financialandotheraspects,withindependentandcompleteself-managementability.
1.Thebusiness:theCompanywasindependentfromcontrollingshareholders,havingacompletebusinesssystemandself-managingability;thecompanyhasindependentprocurementandsalessystemthusallprocurementandsalesofdrugsandrawmaterialsisinchargeofthepurchasingdepartmentandsubordinatesubsidiary,branchandproductionenterprises;production,supply,marketingandR&Dseparatefromeachother;theCompanyisalegalmarketpersonwithindependentoperation.
2.Personnel:proceduresofthecontrollingshareholdernominatingdirectorsandgeneralanddeputygeneralmanagerarelegal;nointerveneontheappointmentandremovalofpersonnelmadebytheboardofdirectorsandshareholders’meetinghappened;theCompanysetupindependenthumanresourcedepartment,responsibleforassessment,trainingandsalaryreviewonstaff,makingrulesandregulationsandhandbooktheemployeesshouldabideby.Labor,personnel,wagesandpension,medicalinsuranceandotherinsuranceareindependentlymanaged.
3.Institution:productionandoperationmechanismandadministrativemanagementiscompletelyindependentfromthecontrollingshareholderoractualcontroller;officesandsitesofbusinessoperationseparatefromthecontrollingshareholder;theCompanyestablishedcorporategovernancestructurewheretheboardofdirectors,boardofsupervisorsandmanagerscarryouttheirdutiesandexercisetheirrespectivedutiesinaccordancewithrelevantprovisionsofthearticlesofassociation.
4.Asset:propertyandrightsrelationshipbetweentheCompanyandthecontrollingshareholderisclear,withindependentoperations;thecompanyhasindependentproductionsystem,auxiliaryproductionsystemandsupportingsystem;industrialpropertyrights,trademarks,non-patentedtechnologyandotherintangibleassetsownedbytheCompanyanditssubsidiary.
5.Financialaspects:theCompanyestablishedindependentfinancialdepartmentsandindependentfinancialaccountingsystem;theCompanyopenedabankaccountindependently;thefinancialstaffisindependentwithouttakingpart-timeandreceivingremunerationinthecontrollingshareholder;theCompanypaystaxindependently.
III.Horizontalcompetition
√Applicable□Notapplicable
| Type | Nameofcontrollingshareholder | Natureofcontrollingshareholder | Reason | Solutionmeasure | Workscheduleandfollow-upplan |
| Horizontalcompetition | SinopharmHolding | State-ownedcontrol | DistributionsubsidiaryofSinopharmHoldingestablishedsomesocialretailpharmacy,whichmighthavehorizontalcompetitionwiththeGuodaDrugstore,thesubordinateenterpriseofthelistedcompanyafterrestructuring | InDecember2016,SinopharmHoldingissuedacommitmentletterofavoidinghorizontalcompetitionwithSinopharmAccord,andpromisetosolvethehorizontalcompetitioninrespectofpharmaceuticalretailbusinessinanappropriatewaywithinfiveyearssincethedatewhenreorganizationcompleted | Normallyimplementing |
| Horizontalcompetition | SINOPHARM | State-ownedcontrol | DistributionsubsidiaryofSINOPHARMestablishedsomesocialretailpharmacy,whichmighthavehorizontalcompetitionwiththeGuodaDrugstore,thesubordinateenterpriseofthelistedcompanyafterrestructuring | InDecember2016,SINOPHARMissuedacommitmentletterofavoidinghorizontalcompetitionwithSinopharmAccord,andpromisetosolvethehorizontalcompetitioninrespectofpharmaceuticalretailbusinessinanappropriatewaywithinfiveyearssincethedatewhenreorganizationcompleted | Normallyimplementing |
IV.AGM(AnnualGeneralMeeting)andextraordinaryshareholders’generalmeetingheldinthePeriod
1.AGM
| Sessionofmeeting | Type | Ratioofinvestorparticipation | Date | Dateofdisclosure | Indexofdisclosure |
| Firstextraordinarygeneralmeetingof2019 | Extraordinarygeneralmeeting | 62.79% | 2019-01-24 | 2019-01-25 | JuchaoWebsite—(http://www.cninfo.com.cn)“NoticeofResolutionofFirstextraordinarygeneralmeetingof2019”No.:2019-07 |
| AnnualGeneralMeetingof2018 | AGM | 65.67% | 2019-05-17 | 2019-05-18 | JuchaoWebsite—(http://www.cninfo.com.cn)“NoticeofResolutionofAGMof2018”No.:2019-26 |
| Secondextraordinarygeneralmeetingof2019 | Extraordinarygeneralmeeting | 66.21% | 2019-09-12 | 2019-09-13 | JuchaoWebsite—(http://www.cninfo.com.cn)“NoticeofResolutionofSecondextraordinarygeneralmeetingof2019”No.:2019-38 |
| Thirdextraordinarygeneralmeetingof2019 | Extraordinarygeneralmeeting | 68.52% | 2019-11-13 | 2019-11-14 | JuchaoWebsite—(http://www.cninfo.com.cn)“NoticeofResolutionofThirdextraordinarygeneralmeetingof2019”No.:2019-45 |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√NotapplicableV.Responsibilityperformanceofindependentdirectors
1.TheattendingofindependentdirectorstoBoardmeetingsandshareholdersgeneralmeeting
| Nameofindependentdirector | TimesofBoardmeetingsupposedtoattendinthereportperiod | TimesofPresence | Timesofattendingbycommunication | Timesofentrustedpresence | TimesofAbsence | AbsenttheMeetingforthesecondtimeinarow(Y/N) | Timesattendingtheshareholdersgeneralmeeting |
| ChenHonghui | 8 | 1 | 7 | 0 | 0 | N | 1 |
| OuYongliang | 8 | 1 | 7 | 0 | 0 | N | 1 |
| SuWeiwei | 7 | 1 | 6 | 0 | 0 | N | 1 |
| ChenShengqun | 8 | 1 | 7 | 0 | 0 | N | 1 |
ExplanationofabsenttheBoardMeetingforthesecondtimeinarow
2.ObjectionforrelevanteventsfromindependentdirectorsIndependentdirectorscomeupwithobjectionaboutCompany’srelevantmatters
□Yes√NoIndependentdirectorshavenoobjectionsforrelevanteventsinreportingperiod
3.OtherexplanationaboutresponsibilityperformanceofindependentdirectorsTheopinionsfromindependentdirectorshavebeenadopted
√Yes□NoExplanationonadvicethataccepted/notacceptedfromindependentdirectorsDuringthereportingperiod,theindependentdirectorsperformedtheirdutiesinacareful,diligent,dedicatedattitudeinaccordancewithrequirementsofthe"WorkingSystemofIndependentDirector",offeredsomeusefulsuggestionsandopinionsonbusinessdecision-making,legalaffairs,financialmanagementandotheraspects;carefullyexaminedimportantmattersthoseneededopinionsofindependentdirectors,madeindependentjudgmentsandissuedawrittenindependentopiniononmajorrelatedtransactions,dailyrelatedtransactions,accountancyhiringandothermatters,playingapositiveroleinsafeguardingthelegitimaterightsandinterestsofsmallshareholders.Besides,independentdirectorsplayedanimportantroleinoperationofspecialcommittee.Atthesametime,theCompanycanguaranteeindependentdirectorsandotherdirectorsofthesamerighttoknow.Duringthereportingperiod,theindependentdirectorshavenoobjectionontherelatedissuesoftheCompany.VI.Dutyperformanceofthespecialcommitteesundertheboardduringthereportingperiod(i)DutiesfulfillmentoftheboardofdirectorsandauditcommitteeoninternalcontroloverriskInternalcontrolonriskandAuditCommitteeoftheboardofdirectorsofthecompanycomprisesthreeindependentdirectorsandthreedirectors,includingtheconvener(professionalaccountant)isanindependentdirector.InaccordancewithrelevantprovisionsofChinaSecuritiesRegulatoryCommissionandShenzhenStock
Exchangeandworkingsystem,InternalcontrolonriskandAuditCommitteeoftheboardofdirectorsseriouslyperformeddutiesinadedicatedattitude.Intheannualfinancialreportaudit,theyactedassupervisors,maintainedindividualityofauditandissuedaseriesofnoticessuchastheWrittenOpiniononFinancialAccountingStatementsIssuedbytheCompanybeforeCPAofAnnualExaminationEntered,theWrittenOpiniononFinancialAccountingStatementsafterPreliminaryAuditIssuedbyCPAofAnnualExamination,theSummaryReportofInternalRiskControlandAuditCommitteeontheAnnualAuditWorkofCPAaswellastheResolutiononRehiretheAuditInstitution.Itsmaindutiescomprisethefollowing:
1.Riskinternalcontrolandauditcommitteeisresponsiblefordeterminingtheauditworkschedule,negotiatingwithCPAwhoengagesinaudit;
2.BeforeCPAenters,auditcommitteeshouldreviewthefinancialstatementspreparedbytheCompanyandissuewrittenopinions;
3.StrengthencommunicationwiththeCPA,andurgethemtosubmitauditreportwithinstipulatedtimewithurgencyletter;
4.ReviewagainthefinancialstatementsaftertheCPAissuespreliminaryopinion,andissuewrittenopinions;
5.TheCommitteeheldannualworkconference2019,approvedproposaloffinancialaccountingreport,summaryreportofannualauditworkofCPAandrehiringErnst&YoungCPA(SpecialGeneralPartnership)astheauditinstitution,andthenformedaresolutiontosubmittoboardofdirectorsforapproval.(ii)DutiesfulfillmentofRemunerationandAppraisalCommitteeAsspecialworkingmechanismoftheboardofdirectors,theremunerationandappraisalcommitteeareresponsibleforapprovingtheassessmentstandardofdirectorsandseniorexecutives,formulatingandreviewingcompensationpoliciesandprogramsofdirectorsandexecutive.Andtheytakechargeinexaminingaccordingtothestandardandpolicies.Theremunerationandappraisalcommitteeiscomposedofthreeindependentdirectors;convenerisChenHonghui,anindependentdirector.Duringthereportingperiod,remunerationandassessmentcommitteeactivelyperformedduty;clearlydefinedtheirresponsibilities;didseriousresearchandappraisalontheremunerationandappraisalsystem,especiallysalary,assessmentsystemandprogramoverdirectors,supervisorsandseniorexecutive.Accordingtoworkingrulesoftheremunerationandappraisalcommittee,theyhaverightstocheckregularreports,meetingsrecords,businessplanningandothermaterialsbytelephone,interviewsandothermethodstolearntheperformanceofdirectors,executives.Andthey’rerequiredtosubmitproblemsexistinginimplementationofsystemtotheBoardofDirectorsandraiseupsuggestiononthem.Theircontentsareasfollows:
1.In2019,theremunerationandappraisalcommitteecarriedouttheperformanceevaluationofexecutivesaccordingtothe2018Annualoperationstandardandperformance.
2.Itproposedthe"2020EvaluationSchemeofOperatingPerformance",andsubmittedittotheboardofdirectorsforapproval.
3.Theremunerationandappraisalcommitteeapprovedsalaryofdirectors,supervisorsandseniorexecutivesdisclosedin2019annualreport.Anditissuedthefollowingopinions:
Compensationdecisionproceduresofdirectors,supervisorsandseniormanagementpersonnelwasinaccordancewiththeprovisions;thestandardwasinaccordancewiththeremunerationsystem;thedisclosureof2019annualreportaboutpersonnelsalaryofthedirectors,supervisorsandseniormanagementisrealandaccurate.
VII.WorksfromSupervisoryCommittee
TheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√NoSupervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod
VIII.Examinationandincentivesofseniormanagement
SeniorexecutivesoftheCompanytookresponsibilityfortheboardofdirectors,inthereportingperiod,theboardofdirectorsimplementedtheperformancecheckingmechanismthattheremunerationofseniorexecutivesrelatedwiththeirperformancechecking,withachievementasdirection,andmaderelevantrewardandpunishmentaccordingtotargetcompletion.TheCompany’srelevantincentiveandrestrictionmechanismgraduallyinordertofurtherexerttheenthusiasmandcreativityofseniorexecutives,urgetheseniorexecutivestoperformtheobligationsofbeinghonestanddiligent.TheCompanyhadnoincentivemechanismforseniorexecutivessuchasstockoption,purchaseofmanagementteamandequityheldbyowner.
IX.InternalControl
1.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√No
2.AppraisalReportofInternalControl
| Disclosuredateoffullinternalcontrolevaluationreport | 22April2020 |
| Disclosureindexoffullinternalcontrolevaluationreport | ”Self-evaluationreportofinternalcontrolfor2019”inJuchaowebsite(www.cninfo.com.cn)appointedbyShenzhenStockExchange |
| Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements | 98.90% |
| Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements | 99.75% |
| DefectsEvaluationStandards | ||
| Category | FinancialReports | Non-financialReports |
| Qualitativecriteria | Financialreportdefectsaremainlyjudgedanddecidedbythedegreeofinfluenceandthelikelihoodofoccurrencetothemisstatementsoffinancialreportscausedbydefects.(1)Significantdefects:acombinationofoneormultipleinternalcontroldefectsthatexistsininternalcontrolandmaycausethematerialmisstatementsinfinancialstatementscannotbeprevented,foundorcorrectedintime;(2)Majordefects:acombinationofoneormultipleinternalcontroldefectsthatexistsininternalcontrolandhaslowerseveritylevelthansignificantdefectsbutstillshouldbeconcernedbythesuperintendentsofenterprisefinancialreports;(3)Commondefects:otherdefectsexceptforsignificantandmajordefects. | Non-financialreportdefectsaremainlyjudgedanddecidedbythedegreeofinfluenceandthelikelihoodofoccurrenceofdefectstothevalidityofbusinessprocess.(1)Significantdefects:acombinationofoneormultipleinternalcontroldefectsthatmaycausetheenterprise’sseriousdeviationtointernalcontrolobjectives;(2)Majordefects:acombinationofoneormultipleinternalcontroldefectswhoseseveritylevelandeconomicconsequencesarelowerthansignificantdefectsbutstillmaycausetheenterprise’sdeviationtointernalcontrolobjectives;(3)Commondefects:otherdefectsexceptforsignificantandmajordefects. |
| Quantitativestandard | Aquantitativecriteriondeterminesthedegreeofimportanceofmisstatements(includingmissingreports)intheconsolidatedstatementsoflistedcompaniesbasedontheconsolidatedstatementdata.(1)Significantdefects:equaltoorgreaterthan5%ofprofitbeforetax;(2)Majordefects:Between1%and5%ofprofitbeforetax;(3)Commondefects:Lessthanorequalto1%ofprofitbeforetax | Quantitativestandard:Aquantitativecriteriondeterminesthedegreeofimportanceofthecompany’sdefectsbasedontheamountofdirectlossandthedegreeofsignificantinfluencetothecompany.(1)Significantdefects:theamountofdirectpropertylossisormorethan10millionYuan,orhasbeenofficiallydisclosedandcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies;(2)Majordefects:theamountofdirectpropertylossisbetween5millionand10millionYuan,orhasbeenpunishedbythenationalgovernmentdepartmentsbuthasnotcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies;(3)Commondefects:theamountofdirectpropertylossisbetween0.1millionand5millionYuan,orhasbeenpunishedbytheprovincialorsub-provincialgovernmentdepartmentsbuthasnotcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies. |
| Amountofsignificantdefectsinfinancialreports | 0 | |
| Amountofsignificantdefectsinnon-financialreports | 0 | |
| Amountofimportantdefectsinfinancialreports | 0 | |
| Amountofimportantdefectsinnon-financialreports | 0 | |
X.Auditingreportofinternalcontrol
√Applicable□Notapplicable
| DeliberationsinInternalControlAuditReport | |
| Accordingtorelevantregulationsand“BasicRulesofInternalControlforEnterprises”,ChinaNationalAccordMedicinesCorporationLtd.inallmajoraspects,keepsanefficiencyofinternalcontroloffinancialreportdated31December2019 | |
| Disclosuredetailsofauditreportofinternalcontrol | Disclosed |
| Disclosuredateofauditreportofinternalcontrol(full-text) | 22April2020 |
| Indexofauditreportofinternalcontrol(full-text) | AuditReportofInternalControlunderthenameofChinaNationalAccordMedicinesCorporationLtd.releasedonJuchaoWebsite(http://www.cninfo.com.cn) |
| OpiniontypeofauditingreportofIC | Standardunqualified |
| Whetherthenon-financialreporthadmajordefects | No |
CarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA
□Yes√NoTheinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard
√Yes□No
SectionXI.CorporateBond
WhethertheCompanyhasacorporationbondsthatissuancepubliclyandlistedonstockexchangeandwithoutdueonthedatewhenannualreportapprovedforreleasedorfailtocashinfullondueNo
SectionXII.FinancialReport
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AUDITOR’SREPORTErnst&YoungHuaMing(2020)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.
TotheshareholdersofChinaNationalAccordMedicinesCorporationLtd.
(I)Opinion
WehaveauditedthefinancialstatementsofChinaNationalAccordMedicinesCorporationLtd.(the“Company”),whichcomprisetheconsolidatedandtheCompany’sbalancesheetsasat31December2019,andtheconsolidatedandtheCompany’sincomestatements,theconsolidatedandtheCompany’sstatementsofchangesinequityandtheconsolidatedandtheCompany’sstatementsofcashflowsfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandtheCompany’sfinancialpositionasat31December2019,andtheconsolidatedandtheCompany’sfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises(“ASBEs”).
(II)Basisforopinion
WeconductedourauditinaccordancewithChinaStandardsonAuditing(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Code”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
(III)Keyauditmatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Foreachmatterbelow,ourdescriptionofhowourauditaddressedthematterisprovidedinthatcontext.WehavefulfilledtheresponsibilitiesdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport,includinginrelationtothesematters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementofthefinancialstatements.Theresultsofourauditprocedures,includingtheproceduresperformedtoaddressthemattersbelow,providethebasisforourauditopinionontheaccompanyingfinancialstatements.
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Ernst&YoungHuaMing(2020)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.
(III)Keyauditmatters(continued)
| Keyauditmatter | Howourauditaddressedthekeyauditmatter |
| Impairmentofgoodwill | |
| ThecarryingvalueofgoodwillamountedtoRMB944,079,884.56asat31December2019andwasallocatedtotheCompany’scash-generatingunits(“CGUs”)ofpharmaceuticaldistributionandretailpharmacy.UnderASBEs,theCompanyisrequiredtoannuallyperformtheimpairmenttestforgoodwill.TheimpairmenttestisbasedontherecoverableamountoftherespectiveCGUstowhichthegoodwillisallocated.TherecoverableamountoftheCGUsisdeterminedbythehigherofthepresentvalueoftheforecastedfuturecashflowsandthefairvalueoftheassetnetofitsdisposalcost.Assumptionssuchastheforecastedfuturecashflowsanddiscountratearesetupbyapplyingestimatesandsignificantjudgementsbymanagement.Therefore,weconsideredthistobeakeyauditmatter.TheCompany’sdisclosuresaboutimpairmentofgoodwillareincludedinNoteIII(17,34)andNoteV(17)tothefinancialstatements. | Theproceduresperformedinordertoaddressthismatterareasfollows:1)Weinvitedinternalevaluationexpertstoassistinevaluatingthegoodwillimpairmentmethodusedandforecastedfiguresusedintheimpairmenttest,especiallythediscountrateandperpetualgrowthrate.2)Weassessedtherationalityoftheforecastsusedwithrespecttofuturerevenuesandoperatingresults,alsocomparedtheforecastswiththehistoricalperformanceoftherespectiveCGUsandtheindustrytrends.Inparticular,were-examinedthefuturerevenuegrowthrate,projectedgrossrate,relatedexpensesandsoon.3)Wealsore-examinedthesufficiencyofdisclosureregardinggoodwill. |
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Ernst&YoungHuaMing(2020)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(III)Keyauditmatters(continued)
| Keyauditmatter | Howourauditaddressedthekeyauditmatter |
| Impairmentofaccountsreceivable | |
| MajorclientsoftheCompanyaremedicalestablishments,pharmacychainstores,monomerdrugstores,communitymedicalservicecenters,downstreamdistributioncompanies,etc.Asat31December2019,theCompanyhadnetaccountsreceivableofRMB10,617,981,893.52,representing31.68%oftheGroup’stotalassets.AccordingtoASBE22–RecognitionandmeasurementofFinancialInstruments,managementutilizestheexpectedcreditlossmodeltomeasuretheimpairmentoffinancialassets.Management’sestimationoftheexpectedcreditlossmodelisbasedonthehistoricaldefaultrateoftheGroupandotherspecificfactorsincludingtypesofclient,agingoftheendingbalance,collectionhistory,write-offs,themigrationrateandestimatedweightedfinancingcost.Atthesametime,managementalsotakesintoconsiderationforward-lookinginformationincludingwhetherdisputesexist,theexpectedmacro-economicenvironment,etc.Duringtheyear,significantmanagementjudgementandestimateswereinvolvedduringtheclassificationofthecreditexposureportfolioandassessmentoftheexpectedcreditloss,andtherefore,weconsideredthistobeakeyauditmatter.TheCompany’sdisclosuresaboutimpairmentofaccountsreceivableareincludedinNoteIII(8,34)andNoteV(3)tothefinancialstatements. | Theproceduresperformedinordertoaddressthismatterareasfollows:1)Were-examinedmanagement’sinternalcontrolthatrelatestoimpairmentofaccountsreceivable.2)Wediscussedthebaddebtpolicywithmanagementandevaluatedthesufficiencyofbaddebtprovisionincludingtheadequacyofthebaddebtprovisionassessmentmethod.3)Wediscussedwithmanagementregardingtherecoverabilityofindividuallysignificantaccountsreceivableforwhichprovisionforbaddebtsisrecognisedseparately.4)Wetestedtheagingofaccountsreceivable,includingatestofinformationsystemautomaticcontrolsrelatedtoinformationsystemautomatically-generatedaginganalysisandcarriedoutanalyticalreviewingproceduresfortheaginganalysisinordertoconfirmtheaccuracyofbasicdatausedbymanagementforbaddebtprovisionforaccountsreceivable.5)Wereviewedthecreditprofileandcarriedoutbackgroundcheckforsignificantclients.6)WereviewedandevaluatedthesufficiencyoftheGroup’sdisclosurerelatedtoaccountsreceivable. |
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Ernst&YoungHuaMing(2020)ShenZiNo.61295118_H01
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(IV)Otherinformation
ThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
(V)Responsibilitiesofthemanagementandthosechargedwithgovernanceforthefinancial
statements
ThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithASBEs,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementstobefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccounting,unlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperationsorhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.
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Ernst&YoungHuaMing(2020)ShenZiNo.61295118_H01
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(VI)Auditor’sresponsibilitiesfortheauditofthefinancialstatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandaregenerallyconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraud
orerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditprocedures
thatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccounting
estimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,
basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthe
disclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesor
businessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.
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Ernst&YoungHuaMing(2020)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.
(VI)Auditor’sresponsibilitiesfortheauditofthefinancialstatements(continued)
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependenceandtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Ernst&YoungHuaMingLLPChineseCertifiedPublicAccountant:LiJianGuang
(Engagementpartner)
ChineseCertifiedPublicAccountant:LiYuanFenBeijing,thePeople’sRepublicofChina20April2020
ImportantNoticeThisauditor’sreportisanEnglishtranslationoftheauditor’sreportfortheauditengagementswhichadoptCSAs.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET31December2019ExpressedinRenminbiYuan
| ASSETS | NoteV | 31December2019 | 31December2018 |
| Currentassets | |||
| Cashandbankbalances | 1 | 8,882,334,845.79 | 8,096,158,013.24 |
| Notesreceivable | 2 | 793,301,688.64 | 789,536,654.23 |
| Accountsreceivable | 3 | 10,617,981,893.52 | 9,336,861,647.92 |
| Receivablesfinancing | 4 | 446,342,588.46 | 567,775,275.40 |
| Advancestosuppliers | 5 | 384,882,547.24 | 583,484,515.95 |
| Otherreceivables | 6 | 477,988,244.98 | 637,116,650.64 |
| Inventories | 7 | 4,947,424,591.53 | 4,389,335,942.19 |
| Othercurrentassets | 8 | 102,198,564.38 | 95,347,629.18 |
| Totalcurrentassets | 26,652,454,964.54 | 24,495,616,328.75 |
| Non-currentassets | |||
| Long-termequityinvestments | 9 | 2,105,114,410.88 | 1,880,393,786.10 |
| Otherequityinstrumentinvestment | 10 | 116,021,000.00 | 13,685,760.00 |
| Othernon-currentfinancialassets | 11 | 140,000,000.00 | 140,000,000.00 |
| Investmentproperties | 12 | 138,900,358.30 | 144,894,495.97 |
| Fixedassets | 13 | 612,599,944.11 | 607,933,827.67 |
| Constructioninprogress | 14 | 31,582,575.84 | 36,412,614.61 |
| Right-of-useassets | 15 | 1,955,461,133.01 | - |
| Intangibleassets | 16 | 319,946,727.04 | 319,207,126.15 |
| Goodwill | 17 | 944,079,884.56 | 833,547,800.60 |
| Long-termprepaidexpenses | 18 | 366,462,139.01 | 311,328,706.46 |
| Deferredtaxassets | 19 | 60,631,015.99 | 74,914,209.95 |
| Othernon-currentassets | 20 | 77,354,970.39 | 72,365,863.71 |
| Totalnon-currentassets | 6,868,154,159.13 | 4,434,684,191.22 |
| Totalassets | 33,520,609,123.67 | 28,930,300,519.97 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET(CONTINUED)31December2019ExpressedinRenminbiYuan
| LIABILITIESANDSHAREHOLDERS’EQUITY | NoteV | 31December2019 | 31December2018 |
| Currentliabilities | |||
| Short-termborrowings | 22 | 1,453,018,300.01 | 2,608,626,099.82 |
| Notespayable | 23 | 5,555,697,557.53 | 3,416,755,681.80 |
| Accountspayable | 24 | 6,554,105,124.13 | 6,468,535,961.17 |
| Contractliabilities | 25 | 302,650,567.97 | 255,590,612.37 |
| Employeebenefitspayable | 26 | 255,827,721.66 | 231,866,407.40 |
| Taxpayable | 27 | 250,118,388.14 | 241,980,412.72 |
| Otherpayables | 28 | 1,756,858,461.02 | 1,528,424,590.29 |
| Non-currentliabilitiesduewithinoneyear | 29 | 601,427,093.62 | 5,861,324.37 |
| Othercurrentliabilities | 30 | 749,710.19 | 292,465.75 |
| Totalcurrentliabilities | 16,730,452,924.27 | 14,757,933,555.69 |
| Non-currentliabilities | |||
| Long-termborrowings | 31 | - | 31,638,984.25 |
| Leaseliabilities | 32 | 1,182,407,085.08 | - |
| Long-termpayables | 33 | 800,000.00 | 4,563,978.52 |
| Long-termemployeebenefitspayable | 34 | 1,433,000.00 | 2,050,000.00 |
| Deferredincome | 35 | 88,704,272.88 | 91,491,170.40 |
| Deferredtaxliabilities | 19 | 83,717,486.28 | 67,605,161.88 |
| Othernon-currentliabilities | 36 | 73,256,514.93 | 69,241,176.18 |
| Totalnon-currentliabilities | 1,430,318,359.17 | 266,590,471.23 |
| Totalliabilities | 18,160,771,283.44 | 15,024,524,026.92 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET(CONTINUED)31December2019ExpressedinRenminbiYuan
| LIABILITIESANDSHAREHOLDERS’EQUITY | NoteV | 31December2019 | 31December2018 |
| Shareholders’equity | |||
| Sharecapital | 37 | 428,126,983.00 | 428,126,983.00 |
| Capitalsurplus | 38 | 4,363,007,511.57 | 4,320,984,981.51 |
| Othercomprehensiveincome | 39 | 45,917,342.77 | - |
| Surplusreserves | 40 | 214,063,491.50 | 214,063,491.50 |
| Retainedearnings | 41 | 7,755,295,537.08 | 6,655,257,147.27 |
| Shareholders’equityattributabletoshareholdersoftheparent | 12,806,410,865.92 | 11,618,432,603.28 |
| Non-controllinginterests | 2,553,426,974.31 | 2,287,343,889.77 |
| Totalshareholders’equity | 15,359,837,840.23 | 13,905,776,493.05 |
| Totalliabilitiesandshareholders’equity | 33,520,609,123.67 | 28,930,300,519.97 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.Thefinancialstatementshavebeensignedby:
Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENTYearended31December2019ExpressedinRenminbiYuan
| NoteV | 2019 | 2018 |
| Operatingrevenue | 42 | 52,045,764,143.21 | 43,122,385,521.23 |
| Less:Operatingcosts | 42 | 46,292,408,840.53 | 38,024,108,631.15 |
| Taxesandsurcharges | 43 | 136,293,695.54 | 121,012,139.02 |
| Sellingexpenses | 44 | 3,055,403,668.16 | 2,762,789,885.77 |
| Administrativeexpenses | 45 | 842,014,983.53 | 783,338,308.19 |
| Financecosts | 46 | 119,972,954.79 | 51,490,020.59 |
| Including:Interestexpense | 271,718,934.85 | 140,315,267.43 | |
| Interestincome | 139,842,489.11 | 81,119,506.63 | |
| Add:Otherincome | 47 | 43,413,430.42 | 28,458,401.31 |
| Investmentincome | 48 | 246,185,242.97 | 258,524,453.70 |
| Including:Investmentincomefromassociates | 331,171,902.87 | 319,903,890.47 | |
| Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (86,377,492.55) | (61,372,718.53) | |
| Creditimpairmentlosses | 49 | (53,163,490.61) | (298,479.55) |
| Impairmentlosses | 50 | (3,108,889.20) | (2,744,605.36) |
| Gainondisposalofassets | 51 | 2,551,175.02 | 7,392,547.56 |
| Operatingprofits | 1,835,547,469.26 | 1,670,978,854.17 | |
| Add:Non-operatingincome | 52 | 25,586,916.14 | 12,715,353.51 |
| Less:Non-operatingexpenses | 53 | 4,476,248.90 | 4,764,850.15 |
| Totalprofit | 1,856,658,136.50 | 1,678,929,357.53 | |
| Less:Incometaxexpenses | 56 | 372,439,441.37 | 330,498,245.68 |
| Netprofit | 1,484,218,695.13 | 1,348,431,111.85 |
| Netprofitclassifiedbycontinuingoperations | |||
| Profitorlossfromcontinuingoperations | 1,484,218,695.13 | 1,348,431,111.85 |
| Netprofitclassifiedbyattributionofownership | |||
| Netprofitattributabletoownersoftheparent | 1,271,289,183.01 | 1,210,742,435.78 | |
| Non-controllinginterests | 212,929,512.12 | 137,688,676.07 |
| Othercomprehensiveincome,netoftax | 76,618,063.81 | - |
| Othercomprehensiveincome,netoftax,attributabletoownersoftheparent, | 39 | 45,917,342.77 | - |
| Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | |||
| Changeinthefairvalueofotherequityinvestments | 46,050,708.96 | - |
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | (133,366.19) | - |
| Othercomprehensiveincome,netoftax,attributabletonon-controllinginterests | 39 | 30,700,721.04 | - |
| Totalcomprehensiveincome | 1,560,836,758.94 | 1,348,431,111.85 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(CONTINUED)Yearended31December2019ExpressedinRenminbiYuan
| NoteV | 2019 | 2018 |
| Totalcomprehensiveincome | 1,560,836,758.94 | 1,348,431,111.85 | |
| Including: | |||
| Totalcomprehensiveincomeattributabletoownersoftheparent | 1,317,206,525.78 | 1,210,742,435.78 | |
| Totalcomprehensiveincomeattributabletonon-controllinginterests | 243,630,233.16 | 137,688,676.07 |
| Earningspershare | 57 | ||
| Basicearningspershare | 2.97 | 2.83 | |
| Dilutedearningspershare | 2.97 | 2.83 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY
FortheYearended31December2018
(ExpressedinRenminbiYuan)
| 2019 | Attributabletoownersoftheparent | |||||||
| Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Subtotal | Non-controllinginterests | Totalequity | |
| 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 | - | 42,022,530.06 | 45,917,342.77 | - | 1,100,038,389.81 | 1,187,978,262.64 | 266,083,084.54 | 1,454,061,347.18 |
| (1)Totalcomprehensiveincome | - | - | 45,917,342.77 | - | 1,271,289,183.01 | 1,317,206,525.78 | 243,630,233.16 | 1,560,836,758.94 |
| (2)Capitalpaidandreducedbyowners | - | 42,022,530.06 | - | - | - | 42,022,530.06 | 62,799,658.33 | 104,822,188.39 |
| 1.Capitalinjectionbyowners | - | - | - | - | - | - | 48,136,000.00 | 48,136,000.00 |
| 2.Others | - | 42,022,530.06 | - | - | - | 42,022,530.06 | 14,663,658.33 | 56,686,188.39 |
| (3)Profitdistribution | - | - | - | - | (171,250,793.20) | (171,250,793.20) | (40,346,806.95) | (211,597,600.15) |
| 1.Distributiontoequityowners | - | - | - | - | (171,250,793.20) | (171,250,793.20) | (40,346,806.95) | (211,597,600.15) |
| Closingbalanceofthecurrentyear | 428,126,983.00 | 4,363,007,511.57 | 45,917,342.77 | 214,063,491.50 | 7,755,295,537.08 | 12,806,410,865.92 | 2,553,426,974.31 | 15,359,837,840.23 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS’EQUITY(Continued)
FortheYearended31December2018
(ExpressedinRenminbiYuan)
| 2018 | Attributabletoownersoftheparent | ||||||
| Sharecapital | Capitalsurplus | Surplusreserves | Retainedearnings | Subtotal | Non-controllinginterests | Totalequity | |
| 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 | - | 1,139,555,916.52 | - | 1,082,304,340.88 | 2,221,860,257.40 | 1,756,413,478.51 | 3,978,273,735.91 |
| (1)Totalcomprehensiveincome | - | - | - | 1,210,742,435.78 | 1,210,742,435.78 | 137,688,676.07 | 1,348,431,111.85 |
| (2)Capitalpaidandreducedbyowners | - | 1,139,555,916.52 | - | - | 1,139,555,916.52 | 1,679,926,889.17 | 2,819,482,805.69 |
| 1.Capitalinjectionbyowners | - | 1,120,284,623.39 | - | - | 1,120,284,623.39 | 2,793,191,200.00 | 3,913,475,823.39 |
| 2.Others | - | 19,271,293.13 | - | - | 19,271,293.13 | (1,113,264,310.83) | (1,093,993,017.70) |
| (3)Profitdistribution | - | - | - | (128,438,094.90) | (128,438,094.90) | (61,202,086.73) | (189,640,181.63) |
| 1.Distributiontoequityowners | - | - | - | (128,438,094.90) | (128,438,094.90) | (61,202,086.73) | (189,640,181.63) |
| Closingbalanceofthecurrentyear | 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 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCASHFLOWSYearended31December2019ExpressedinRenminbiYuan
| NoteV | 2019 | 2018 |
1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceiptsfromthesaleofgoodsandthe
renderingofservices
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 55,803,880,635.86 | 46,794,007,122.39 | |
| Receiptsoftaxesandsurchargesrefunds | 14,595,925.20 | 1,777,623.17 | |
| Othercashreceiptsrelatingtooperatingactivities | 58 | 740,730,355.35 | 679,596,722.04 |
| Totalcashinflowsfromoperatingactivities | 56,559,206,916.41 | 47,475,381,467.60 |
| Cashpaymentsforgoodsandservices | 49,939,998,830.19 | 41,436,895,750.53 | |
| Cashpaymentstoandonbehalfofemployees | 2,175,588,129.28 | 1,893,939,719.20 | |
| Paymentsofalltypesoftaxesandsurcharges | 1,270,243,180.50 | 1,096,228,714.78 | |
| Othercashpaymentsrelatingtooperatingactivities | 58 | 1,173,024,693.24 | 1,725,710,930.82 |
| Totalcashoutflowsfromoperatingactivities | 54,558,854,833.21 | 46,152,775,115.33 | |
| Netcashflowsfromoperatingactivities | 59 | 2,000,352,083.20 | 1,322,606,352.27 |
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments
| Cashreceiptsfromreturnsofinvestments | 151,841,842.08 | 131,401,264.72 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 5,299,820.29 | 5,978,720.99 | |
| Netcashreceivedforacquisitionofsubsidiariesandotherbusinessunits | 59 | - | 2,468,522.33 |
| Netcashreceiptsfromdisposalofsubsidiariesandotherbusinessunits | 59 | 791,464.76 | - |
| Othercashreceiptsrelatingtoinvestingactivities | 58 | 3,188,480.07 | 98,793,085.40 |
| Totalcashinflowsfrominvestingactivities | 161,121,607.20 | 238,641,593.44 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCASHFLOWSYearended31December2019ExpressedinRenminbiYuan
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCASHFLOWS(CONTINUED)Yearended31December2019ExpressedinRenminbiYuan
| NoteV | 2019 | 2018 |
2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)
Cashpaymentstoacquirefixedassets,intangibleassets
andotherlong-termassets
| Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets | 245,167,920.77 | 255,481,604.79 | |
| Cashpaymentsforinvestments | 56,001,023.17 | 124,575,351.00 | |
| Netcashpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 59 | 97,801,928.16 | - |
| Othercashpaymentsrelatingtoinvestingactivities | 58 | 2,597,750.74 | 81,042,904.53 |
| Totalcashoutflowsfrominvestingactivities | 401,568,622.84 | 461,099,860.32 |
| Netcashflowsfrominvestingactivities | (240,447,015.64) | (222,458,266.88) |
3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers
| Cashproceedsfrominvestmentsbyothers | 46,093,966.84 | 2,793,191,200.00 | |
| Including:Cashreceiptsfromcapitalcontributionsfromnon-controllinginterestsofsubsidiaries | 46,093,966.84 | 2,793,191,200.00 | |
| Cashreceiptsfromborrowings | 83,786,182.96 | 86,231,834.83 | |
| Othercashreceiptsrelatingtofinancingactivities | 58 | 249,305,768.12 | 484,038,819.20 |
| Totalcashinflowsfromfinancingactivities | 379,185,917.92 | 3,363,461,854.03 |
| Cashrepaymentsfordebts | 99,846,808.49 | 79,670,200.30 | |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 529,835,909.14 | 340,534,805.52 | |
| Including:Dividendsorprofitpaidtonon-controllingshareholdersofsubsidiaries | 39,827,223.10 | 66,702,208.88 | |
| Othercashpaymentsrelatingtofinancingactivities | 58 | 718,672,829.88 | 84,475,782.06 |
| Totalcashoutflowsfromfinancingactivities | 1,348,355,547.51 | 504,680,787.88 |
| Netcashflowsfromfinancingactivities | (969,169,629.59) | 2,858,781,066.15 |
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | (175,693.26) | (310,822.25) |
| 5.NETINCREASEINCASHANDCASHEQUIVALENTS | 790,559,744.71 | 3,958,618,329.29 | |
| Add:Cashandcashequivalentsatbeginningoftheyear | 7,632,117,020.77 | 3,673,498,691.48 |
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 59 | 8,422,676,765.48 | 7,632,117,020.77 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET31December2019ExpressedinRenminbiYuan
| ASSETS | NoteXIV | 31December2019 | 31December2018 |
| Currentassets | |||
| Cashandbankbalances | 2,909,417,289.71 | 1,821,351,681.34 | |
| Notesreceivable | 1 | 14,900,068.42 | 34,154,774.75 |
| Accountsreceivable | 2 | 571,544,784.65 | 631,236,593.94 |
| Receivablesfinancing | 3 | 30,194,682.11 | 29,716,205.64 |
| Advancestosuppliers | 7,996,243.28 | 4,760,182.00 | |
| Otherreceivables | 4 | 1,928,941,595.38 | 1,538,283,800.17 |
| Inventories | 169,422,075.78 | 158,166,185.65 | |
| Othercurrentassets | 39,482.38 | 39,482.38 |
| Totalcurrentassets | 5,632,456,221.71 | 4,217,708,905.87 |
| Non-currentassets | |||
| Long-termequityinvestments | 5 | 7,698,756,525.83 | 7,432,906,692.24 |
| Othernon-currentfinancialassets | 140,000,000.00 | 140,000,000.00 | |
| Investmentproperties | 1,484,198.56 | 1,955,854.46 | |
| Fixedassets | 14,763,656.62 | 21,362,422.03 | |
| Right-of-useassets | 6,217,504.50 | - | |
| Intangibleassets | 5,838,737.17 | 2,452,222.51 | |
| Long-termprepaidexpenses | 6,130,534.55 | 7,481,809.53 | |
| Deferredtaxassets | 9,327,850.53 | - | |
| Othernon-currentassets | 9,000,000.00 | 7,000,000.00 |
| Totalnon-currentassets | 7,891,519,007.76 | 7,613,159,000.77 |
| Totalassets | 13,523,975,229.47 | 11,830,867,906.64 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET(CONTINUED)31December2019ExpressedinRenminbiYuan
| LIABILITIESANDSHAREHOLDERS’EQUITY | 31December2019 | 31December2018 |
| Currentliabilities | |||
| Short-termborrowings | 121,350,644.36 | 539,000,000.00 | |
| Notespayable | 751,577,900.22 | 252,317,800.78 | |
| Accountspayable | 322,436,681.01 | 442,049,241.22 | |
| Contractliabilities | 7,293,184.46 | 4,182,083.40 | |
| Employeebenefitspayable | 30,469,777.88 | 36,233,563.12 | |
| Taxpayables | 22,909,124.90 | 13,426,601.90 | |
| Otherpayables | 2,120,794,765.05 | 1,481,778,872.31 | |
| Non-currentliabilitiesduewithinoneyear | 32,640,325.77 | - | |
| Othercurrentliabilities | 338,196.81 | 226,427.99 |
| Totalcurrentliabilities | 3,409,810,600.46 | 2,769,214,590.72 |
| Non-currentliabilities | |||
| Long-termborrowings | - | 31,638,984.25 | |
| Leaseliabilities | 5,461,257.38 | - | |
| Long-termpayables | 800,000.00 | 800,000.00 | |
| Long-termemployeebenefitspayable | - | 118,000.00 | |
| Deferredincome | 1,276,698.66 | 1,687,899.50 | |
| Deferredtaxliabilities | - | 2,298,426.39 |
| Totalnon-currentliabilities | 7,537,956.04 | 36,543,310.14 |
| Totalliabilities | 3,417,348,556.50 | 2,805,757,900.86 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET(CONTINUED)31December2019ExpressedinRenminbiYuan
| LIABILITIESANDSHAREHOLDERS’EQUITY | 31December2019 | 31December2018 |
| Shareholders’equity | |||
| Sharecapital | 428,126,983.00 | 428,126,983.00 | |
| Capitalsurplus | 4,468,385,307.32 | 4,426,362,777.26 | |
| Othercomprehensiveincome | (133,366.19) | - | |
| Surplusreserves | 214,063,491.50 | 214,063,491.50 | |
| Retainedearnings | 4,996,184,257.34 | 3,956,556,754.02 |
| Totalshareholders’equity | 10,106,626,672.97 | 9,025,110,005.78 |
| Totalliabilitiesandshareholders’equity | 13,523,975,229.47 | 11,830,867,906.64 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYINCOMESTATEMENTYearended31December2019ExpressedinRenminbiYuan
| NoteXIV | 2019 | 2018 |
| Operatingrevenue | 6 | 4,108,399,019.34 | 3,481,446,876.93 |
| Less:Operatingcosts | 6 | 3,916,035,572.52 | 3,317,568,640.99 |
| Taxesandsurcharges | 6,459,864.79 | 4,618,925.42 | |
| Sellingexpenses | 69,400,890.32 | 61,120,258.01 | |
| Administrativeexpenses | 73,489,681.09 | 77,784,120.97 | |
| Financecosts | (64,025,013.54) | (44,503,498.58) | |
| Including:Interestexpense | 46,025,863.16 | 41,179,105.37 | |
| Including:Interestincome | 111,805,557.75 | 86,569,728.06 | |
| Add:Otherincome | 4,810,134.29 | 4,916,458.17 | |
| Investmentincome | 7 | 1,158,737,566.83 | 702,555,982.30 |
| Including:Investmentincomefromassociates | 353,856,432.16 | 342,730,085.14 | |
| Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (4,379,465.57) | (1,688,557.15) | |
| Creditimpairmentlosses | (45,728,840.12) | 983,688.72 | |
| Impairmentlosses | (371,833.95) | (466,647.08) | |
| Gainondisposalofassets | 155,014.05 | 11,116.50 |
| Operatingprofits | 1,224,640,065.26 | 772,859,028.73 | |
| Add:Non-operatingincome | 741,954.13 | 46,446.88 | |
| Less:Non-operatingexpenses | 280.00 | 183,374.99 |
| Totalprofit | 1,225,381,739.39 | 772,722,100.62 | |
| Less:Incometaxexpenses | 14,503,442.87 | 17,140,073.18 |
| Netprofit | 1,210,878,296.52 | 755,582,027.44 | |
| Including:Profitorlossfromcontinuingoperations | 1,210,878,296.52 | 755,582,027.44 |
| Othercomprehensiveincome,netoftax | (133,366.19) | - |
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | (133,366.19) | - |
| Totalcomprehensiveincome | 1,210,744,930.33 | 755,582,027.44 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITYYearended31December2019ExpressedinRenminbiYuan
| 2019 | Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Totalequity |
| 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 | - | 42,022,530.06 | (133,366.19) | - | 1,039,627,503.32 | 1,081,516,667.19 |
| (1)Totalcomprehensiveincome | - | - | (133,366.19) | - | 1,210,878,296.52 | 1,210,744,930.33 |
| (2)Capitalpaidandreducedbyowners | - | 42,022,530.06 | - | - | - | 42,022,530.06 |
| 1.Others | - | 42,022,530.06 | - | - | - | 42,022,530.06 |
| (3)Profitdistribution | - | - | - | - | (171,250,793.20) | (171,250,793.20) |
| 1.Distributiontoequityowners | - | - | - | - | (171,250,793.20) | (171,250,793.20) |
| Closingbalanceofthecurrentyear | 428,126,983.00 | 4,468,385,307.32 | (133,366.19) | 214,063,491.50 | 4,996,184,257.34 | 10,106,626,672.97 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITY(CONTINUED)Yearended31December2019ExpressedinRenminbiYuan
| 2018 | Sharecapital | Capitalsurplus | Surplusreserves | Retainedearnings | Totalequity |
| 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 | - | 19,271,293.13 | - | 627,143,932.54 | 646,415,225.67 |
| (1)Totalcomprehensiveincome | - | - | - | 755,582,027.44 | 755,582,027.44 |
| (2)Capitalpaidandreducedbyowners | - | 19,271,293.13 | - | - | 19,271,293.13 |
| 1.Others | - | 19,271,293.13 | - | - | 19,271,293.13 |
| (3)Profitdistribution | - | - | - | (128,438,094.90) | (128,438,094.90) |
| 1.Distributiontoequityowners | - | - | - | (128,438,094.90) | (128,438,094.90) |
| Closingbalanceofthecurrentyear | 428,126,983.00 | 4,426,362,777.26 | 214,063,491.50 | 3,956,556,754.02 | 9,025,110,005.78 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCASHFLOWSYearended31December2019ExpressedinRenminbiYuan
| 2019 | 2018 |
1.CASHFLOWSFROMOPERATINGACTIVITIES
Cashreceiptsfromthesaleofgoodsandthe
renderingofservices
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 4,484,950,773.68 | 3,650,605,970.28 | |
| Othercashreceiptsrelatingtooperatingactivities | 55,105,150.55 | 107,373,506.99 |
| Totalcashinflowsfromoperatingactivities | 4,540,055,924.23 | 3,757,979,477.27 |
| Cashpaymentsforgoodsandservices | 4,272,419,447.94 | 3,406,447,268.87 | |
| Cashpaymentstoandonbehalfofemployees | 90,592,261.08 | 79,402,008.01 | |
| Paymentsofalltypesoftaxesandsurcharges | 56,746,556.88 | 36,195,123.57 | |
| Othercashpaymentsrelatingtooperatingactivities | 36,680,891.34 | 55,863,168.11 |
| Totalcashoutflowsfromoperatingactivities | 4,456,439,157.24 | 3,577,907,568.56 |
| Netcashflowsfromoperatingactivities | 83,616,766.99 | 180,071,908.71 |
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments
| Cashreceiptsfromreturnsofinvestments | 958,057,018.50 | 525,074,396.36 | |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 3,961,383.00 | 44,700.00 | |
| Othercashreceiptsrelatingtoinvestingactivities | 2,293,944,952.05 | 1,574,115,586.01 |
| Totalcashinflowsfrominvestingactivities | 3,255,963,353.55 | 2,099,234,682.37 |
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 11,264,989.90 | 11,649,093.77 | |
| Cashpaymentsforinvestments | 19,998,000.00 | 90,000,000.00 | |
| Othercashpaymentsrelatingtoinvestingactivities | 2,669,650,683.28 | 1,749,321,606.82 |
| Totalcashoutflowsfrominvestingactivities | 2,700,913,673.18 | 1,850,970,700.59 |
| Netcashflowsfrominvestingactivities | 555,049,680.37 | 248,263,981.78 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.
CASHFLOWSTATEMENT(Continued)FortheYearended31December2016
(ExpressedinRenminbinYuan)
| 2019 | 2018 |
3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceiptsfromborrowings
| Cashreceiptsfromborrowings | 10,000,000.00 | 10,000,000.00 | |
| Othercashreceiptsrelatingtofinancingactivities | 26,701,067,083.61 | 17,388,748,779.90 |
| Totalcashinflowsfromfinancingactivities | 26,711,067,083.61 | 17,398,748,779.90 |
| Cashrepaymentsfordebts | 10,000,000.00 | 10,000,000.00 | |
| Cashpaymentsfordistributionofdividends,profitorinterestexpenses | 210,404,986.68 | 161,361,930.89 | |
| Othercashpaymentsrelatingtofinancingactivities | 26,052,473,492.66 | 17,614,453,662.11 |
| Totalcashoutflowsfromfinancingactivities | 26,272,878,479.34 | 17,785,815,593.00 |
| Netcashflowsfromfinancingactivities | 438,188,604.27 | (387,066,813.10) |
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | (175,693.26) | (310,822.25) |
| 5.NETINCREASEINCASHANDCASHEQUIVALENTS | 1,076,679,358.37 | 40,958,255.14 | |
| Add:Cashandcashequivalentsatbeginningoftheyear | 1,817,654,598.01 | 1,776,696,342.87 |
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 2,894,333,956.38 | 1,817,654,598.01 |
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.
CASHFLOWSTATEMENT(Continued)FortheYearended31December2016(ExpressedinRenminbinYuan)
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.NOTESTOFINANCIALSTATEMENTSYearended31December2019ExpressedinRenminbiYuan
IProfileoftheCompany
AsapprovedbythePeople’sGovernmentofShenzhen(SFBF(1993)No.356),ChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasthe“theCompany”),formerlyknownasShenzhenHealthMineralWaterCorp.,Ltd.,wasregisteredasajointstockliabilitylimitedcompanyon1February1993throughstocktransformation.InMarch1993,withtheapprovalfromtheShenzhenBranchofthePeople’sBankofChina,theCompanyissued30millionAshares(including16.5millionpublicshares,3.5millionemployeesharesand10millioncorporationshares)and20millionBshares.Afterthisissuance,theCompany’ssharecapitalwasRMB105.00million.Throughconvertingcapitalsurplusintosharecapital,bonusissuesandissuanceofsharesforyears,thesharecapitaloftheCompanyincreasedto428.13millionasat31December2019.InNovember2000,theCompanyenteredintoanAssetExchangeAgreementwithShenzhenInvestmentManagementCompany,theoriginalmajorshareholderoftheCompany,toexchangealltheassetsandliabilitiesoftheCompanyasof31August2000forShenzhenInvestmentManagementCompany’s100%equityinterestsin11pharmaceuticalcompaniesandcertainpropertiesaswellas51%equityinterestsinShenzhenTefaModernComputerCo.,Ltd.TheaboveassetexchangeproposalwasapprovedbyshareholdersintheSecondExtraordinaryGeneralMeetingon29December2000.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),thenatureoftheseshareschangedfromstate-ownedstocktostate-ownedlegalentitystockandSinopharmGroupbecamethelargestshareholderoftheCompany.On14April2006,theCompany’sproposalonreformationofsegregatedstockswasapproved.TogainliquidityfortherestrictedstocksoftheCompany,theholdersoftherestrictedstocksoftheCompanyagreedtopaythefollowingconsideration:basedonthestockregistrationasof27April2006,theCompanyissuedbonusshareson28April2006attheratioof3sharestoevery10AsharestoliquidatedA-shareholderswhichwentpubliconthesameday.Afterthisbonusissue,thetotalnumberofsharesoftheCompanyremainedunchangedwithcorrespondingchangesinthecompositionofshareholdings.On14March2014,theCompanyissued74,482,543ordinaryshares(Ashares)throughthenon-publicoffering.TheparvaluepershareisRMB1.00yuan.Thesharesshallnotbetransferredwithin36monthssincetheissuedate.ThetotalnumberofsharesoftheCompanywas362,631,943sincethedateofissue.
IProfileoftheCompany(Continued)
TheCompanyacquiredthecompaniesundercommoncontrol,includingSinopharmHoldingGuodaPharmacyCo.,Ltd.(“GuodaPharmacy”),FoshanNanhaiMedicineGroupCo.,Ltd.(“FoshanNanhai”),GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.(“SouthPharma&Trade”)andGuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(“GuangdongUptodate&SpecialMedicines”)byissuingsharesandraisedsupportingfundsbyissuingsharestoPingAnAssetManagementCo.,Ltd.toacquirethenon-controllinginterestofSouthPharma&Trade.Therelevantsharesweresuccessfullyissuedandlistedon5January2017.Afterwards,thetotalnumberofsharesoftheCompanyincreasedto428,126,983.Asof31December2019,thetotalsharecapitalwas428,126,983.TheCompanyisregisteredwithShenzhenAdministrationforIndustry&Commerce.ItsUniformSocialCreditCodeis91440300192186267U.TheoperationperiodoftheCompanyisfrom2August1986tothelongterm.TheregisteredcapitaloftheCompanyisRMB428.13million.ThelegalrepresentativeoftheCompanyisLinZhaoxiong.TheapprovedscopeofbusinessoftheCompanyanditssubsidiaries(together“theGroup”)includes:thewholesaleofChineseherbalslices,traditionalChinesemedicinepreparations,bulkpharmaceuticaldrugs,chemicalpreparations,bulkantibioticdrugs,antibioticpreparations,biochemicaldrugs,biologicalproducts(includingvaccinesandinvitrodiagnosticreagentspsychotropicdrugsandpreparations,narcoticdrugs,toxicdrugsformedicaluse,proteinassimilationpreparationandpeptidehormones;tradingofdietarysupplements;industrialinvestmentholding;domestictrade;materialsupplyandthemarketingindustry(otherthanspeciallicensing);thesaleofambulances;tradingofsecond-classandthird-classmedicalequipment;projectinvestment;propertymanagementandleasingofself-ownedproperties;pharmacovigilanceandmedicalinformationconsulting;parkingoperation;logisticsandrelatedservices;thepackageagencybusiness;logisticdesign;importandexportservices(excludingprojectsthatareprohibitedbythecountry;andlimitedprojectshavetobeapprovedbeforeoperating).SubsidiariesconsolidatedinthefinancialstatementsforthecurrentyearandchangeintheconsolidationscopeareshowninNoteVI.TheGroup’sparentandultimateparentcompaniesareSinopharmGroupandChinaNationalPharmaceuticalGroupCorporation(“CNPGC”),respectively.ThesefinancialstatementswereauthorizedforissuebytheboardofdirectorsoftheCompanyon20April2020.
IIBasisofpreparation
ThefinancialstatementswerepreparedinaccordancewiththeBasicStandardandspecificstandardsofAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandthespecificaccountingstandards,applicationguidance,interpretationandotherrelevantregulationsissuedoramendedthereafter(hereaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”or“CAS”).Thesefinancialstatementsarepreparedonagoingconcernbasis.Exceptforcertainfinancialinstruments,thefinancialstatementshavebeenpreparedusingthehistoricalcostastheprincipleofmeasurement.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.IIISummaryofsignificantaccountingpoliciesandaccountingestimates
TheGroupdeterminesthespecificaccountingpoliciesandestimatesbasedonitsfeaturesofproductionandoperation,primarilycomprisingthemethodsofprovisionforexpectedcreditlossesonreceivables,valuationofinventories,depreciationoffixedassetsandamortisationofintangibleassets,themeasurementmodelofinvestmentproperties,recognitionandmeasurementofrevenue,etc.
1.StatementofcompliancewithAccountingStandardsforBusinessEnterprises
ThefinancialstatementspresenttrulyandcompletelythefinancialpositionsoftheGroupandtheCompanyasat31December2019,andthefinancialperformanceandthecashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises.
2.Accountingyear
TheGroup’saccountingyearbeginson1Januaryandendson31December.
3.Functionalcurrency
ThefunctionalcurrencyisRenminbi.TheCompany’sfunctionalandpresentationcurrencyisRenminbi(RMB).ThecurrencyunitisRMBYuanunlessotherwisestated.
4.Businesscombinations
Businesscombinationsareclassifiedintobusinesscombinationsinvolvingentitiesundercommoncontrolandbusinesscombinationsnotinvolvingentitiesundercommoncontrol.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
4.Businesscombinations(Continued)(a)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Inabusinesscombinationinvolvingentitiesundercommoncontrol,theentitythat,atthecombinationdate,obtainscontrolofanothercombiningentityistheabsorbingentity,whilethatothercombiningentityistheentitybeingabsorbed.Thecombinationdateisthedateonwhichtheabsorbingentityeffectivelyobtainscontrolontheentitybeingabsorbed.Assetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingshareholder’sacquisitionofthepartybeingabsorbed)thatareobtainedbytheabsorbingpartyinabusinesscombinationshallbemeasuredattheircarryingamountsatthecombinationdateasrecordedbythepartybeingabsorbed.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)shallbeadjustedtosharepremiumundercapitalsurplus.Ifthecapitalsurplusisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.(b)Businesscombinationsinvolvingenterprisesnotundercommoncontrol
Abusinesscombinationnotinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination.Inabusinesscombinationnotinvolvingentitiesundercommoncontrol,theentitythat,ontheacquisitiondate,obtainscontrolofanothercombiningentityistheacquirer,whilethatothercombiningentityistheacquiree.Theacquisitiondateisthedateonwhichtheacquirereffectivelyobtainscontroloftheacquiree.Thecostofcombinationandidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationaremeasuredatfairvalueattheacquisitiondate.Goodwillisinitiallyrecognisedandmeasuredatcost,beingtheexcessoftheaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andanyfairvalueoftheGroup’spreviouslyheldequityinterestintheacquireeovertheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets.Afterinitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Wheretheaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andanyfairvalueoftheGroup’spreviouslyheldequityinterestintheacquireeislowerthantheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets,theGroupreassessesthemeasurementofthefairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesandthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued),togetherwiththefairvalueoftheGroup’spreviouslyheldequityinterestintheacquiree.Ifafterthatreassessment,theaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andtheGroup’spreviouslyheldequityinterestintheacquireeisstilllowerthantheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets,theGrouprecognisestheremainingdifferenceinprofitorloss.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
4.Businesscombinations(Continued)(b)Businesscombinationsinvolvingenterprisesnotundercommoncontrol(Continued)
Wherethebusinesscombinationnotinvolvingenterprisesundercommoncontrolisachievedinstages,theacquirer’spreviouslyheldequityinterestsintheacquireeareremeasuredatthefairvalueontheacquisitiondate,withthedifferencebetweenthefairvalueandcarryingamountrecognisedasinvestmentincomeforthecurrentperiod.Iftheacquirer’spreviouslyheldequityinterestsoftheacquireeinvolveothercomprehensiveincome(“OCI”)undertheequitymethod,theaccountingtreatmentisconductedonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities,andthechangesinshareholders’equityotherthannetprofitorloss,OCIandprofitdistributionsarechargedtoprofitorlossforthecurrentperiodontheacquisitiondate.ForfinancialassetsatfairvaluethroughOCIheldbeforetheacquisitiondate,changesinfairvaluethatwereaccumulatedthroughOCIwilltransfertoretainedearnings.
5.Preparationofconsolidatedfinancialstatements
Thescopeoftheconsolidatedfinancialstatements,whichincludethefinancialstatementsoftheCompanyandallofitssubsidiaries,isdeterminedonthebasisofcontrol.AsubsidiaryisanentitythatiscontrolledbytheCompany(suchasanenterprise,adeemedseparateentity,orastructuredentitycontrolledbytheCompany).Inthepreparationoftheconsolidatedfinancialstatements,thefinancialstatementsofsubsidiariesarepreparedforthesameaccountingyearastheCompany,usingconsistentaccountingpolicies.Allintra-groupassetsandliabilities,equity,income,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheGroupareeliminatedinfullonconsolidation.Wherethelossforthecurrentperiodattributabletonon-controllinginterestsofasubsidiaryexceedsthenon-controllinginterestsoftheopeningbalanceofequityofthesubsidiary,theexcessshallstillbeallocatedagainstthenon-controllinginterests.Forsubsidiariesacquiredthroughbusinesscombinationsnotinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheacquireeshallbeconsolidatedfromthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatesuchcontrolceases.Whilepreparingtheconsolidatedfinancialstatements,theGroupshalladjustthesubsidiary’sfinancialstatements,onthebasisofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognisedontheacquisitiondate.Forsubsidiariesacquiredthroughbusinesscombinationsinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheentitybeingabsorbedshallbeconsolidatedfromthebeginningoftheperiodinwhichthecombinationoccurs.Whilepreparingthecomparativefinancialstatements,adjustmentsaremadetorelateditemsinthefinancialstatementsforthepriorperiodasifthereportingentityafterthecombinationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedthecontrol.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
5.Preparationofconsolidatedfinancialstatements(Continued)
TheGroupreassesseswhetherornotitcontrolsaninvesteeifanychangeinfactsandcircumstancesindicatesthattherearechangestooneormoreofthethreeelementsofcontrol.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposaloftheequityinvestmentinsubsidiarieswherecontrolisretained.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.
6.Cashandcashequivalents
CashcomprisestheGroup’scashonhandandbankdepositsthatcanbereadilywithdrawnondemand.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcash,andaresubjecttoaninsignificantriskofchangesinvalue.
7.Foreigncurrencytranslation
ForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognisedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalizedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedatesofthetransactions.Foreigncurrencycashflowsaretranslatedusingthespotexchangeratesprevailingonthedatesofcashflows.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments
Financialinstrumentsarethecontractsthatformedthefinancialassetsofoneentity,andatthesametimeformedthefinancialliabilitiesorequityinstrumentsofotherentities.RecognitionandderecognitionoffinancialinstrumentsFinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.TheGroupderecognisesafinancialasset,partofafinancialassetorgroupoffinancialassets,i.e.,offsetfromtheaccountsandstatementoffinancialposition,ifeitherofthefollowingconditionsissatisfied:
(1)Thecontractualrightstothecashflowsfromthefinancialassetexpire;or
(2)Thecontractualrightstothecashflowsfromthefinancialassetaretransferredout,orobligated
totransferoutallgeneratedcashflowsonreceipt;and(a)substantiallyalltherisksandrewardsofownershipofthefinancialassetaretransferredtothetransferee;or(b)theGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,buthasnotretainedcontrolofthefinancialasset.Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelled,orexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandarecognitionofanewliability,andthedifferencebetweentherespectivecarryingamountsisrecognisedinprofitorloss.Regularwaypurchasesandsalesoffinancialassetsarerecognisedandderecognisedusingtradedateaccounting.Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliverywithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.ThetradedateisthedatethattheGroupcommittedtopurchaseorsellafinancialasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
ClassificationandmeasurementoffinancialassetsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristicsandtheGroup’sbusinessmodelformanagingthem:
financialassetsatfairvaluethroughprofitorloss,financialassetsatamortisedcost,orfinancialassetsatfairvaluethroughothercomprehensiveincome,accordingtotheGroup’sbusinessmodelformanagingfinancialassetsandthecontractcashflowcharacteristicsofthefinancialassets.Financialassetsaremeasuredatfairvalueatinitialrecognition,providedthataccountsreceivableorbillsreceivablenotcontainingsignificantfinancingcomponentsorforwhichfinancingcomponentsofnotmorethan1yeararenottakenintoconsiderationshallbemeasuredattheirtransactionpricesatinitialrecognition.Forfinancialassetsatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss;whileforotherfinancialassets,therelevanttransactioncostsarerecognisedintheirinitialrecognitionamount.Thesubsequentmeasurementoffinancialassetsdependsontheirclassificationasfollows:
DebtinvestmentsmeasuredatamortisedcostTheGroupmeasuresfinancialassetsatamortizedcostifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeofthiskindoffinancialassetsisrecognisedusingtheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementwhentheassetisderecognised,modifiedorimpaired.DebtinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupmeasuresdebtinvestmentsatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:thefinancialassetisheldwithinabusinessmodelwiththeobjectiveofbothholdingtocollectcontractualcashflowsandselling;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Changesinfairvaluesarerecognisedinothercomprehensiveincomeexceptthatinterestincome,impairmentlossesandexchangedifferencesarerecognisedincurrentprofitorloss.Uponderecognition,thecumulativefairvaluechangerecognisedinothercomprehensiveincomeistransferredtoprofitorloss.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
Classificationandmeasurementoffinancialassets(Continued)EquityinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupirrevocablychoosestodesignatesomenon-tradableequityinstrumentinvestmentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Onlytherelevantdividendincome(excludingdividendincomeexplicitlyrecoveredaspartofinvestmentcost)isrecognisedinprofitorloss,andsubsequentchangesinfairvalueareincludedinothercomprehensiveincomewithoutprovisionforimpairment.Whenfinancialassetsarederecognised,theaccumulatedgainsorlossespreviouslyrecognisedinothercomprehensivegainsaretransferredfromothercomprehensiveincomeandrecognisedinretainedearnings.FinancialassetsatfairvaluethroughprofitorlossThefinancialassetsotherthantheabovefinancialassetsmeasuredatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Suchfinancialassetsaresubsequentlymeasuredatfairvaluewithnetchangesinfairvaluerecognisedinprofitorlossexceptforthederivativesdesignatedashedginginstrumentsinaneffectivehedge.Onlywhenanaccountingmismatchiseliminatedorsignificantlydecreased,financialassetsaredesignatedasfinancialassetsatfairvaluethroughprofitorlossatinitialrecognition.Whenanenterpriseinitiallydesignatesafinancialassetasafinancialassetatfairvaluethroughprofitorloss,itcannotbereclassifiedtootherfinancialassets;andotherfinancialassetscannotbere-designatedafterinitialrecognitionasfinancialassetsmeasuredatfairvaluethroughprofitorloss.ClassificationandmeasurementoffinancialliabilitiesTheGroup’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorloss,otherfinancialliabilitiesorderivativesdesignatedaseffectivehedginginstruments.Forfinancialliabilitiesatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss,andtherelatedtransactioncostsofotherfinancialliabilitiesarerecognisedintheirinitialamount.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
Classificationandmeasurementoffinancialliabilities(Continued)Subsequentmeasurementoffinancialliabilitiesisdeterminedbyitsclassification:
FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)andfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.Financialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)aresubsequentlymeasuredatfairvalue.Allchangesinfairvalueofsuchfinancialliabilitiesarerecognisedinprofitorloss.Financialliabilitiesdesignatedatfairvaluethroughprofitorlossaresubsequentlymeasuredatfairvalueandgainsorlossesarerecognisedinprofitorloss,exceptforthegainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincome.IfgainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincomewillleadtoorexpandaccountingmismatchinprofitorloss,theGroupwillincludeallthechangesinfairvalue(includingtheamountaffectedbychangesintheGroup’sowncreditrisk)ofsuchfinancialliabilitiesinprofitorloss.Onlyifoneofthefollowingconditionsismetcanfinancialliabilitiesbedesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossoninitialrecognition:
(1)Itcaneliminateorsignificantlyreducetheaccountingmismatch.
(2)Theformalwrittendocumentoftheriskmanagementorinvestmentstrategyhasstatedthattheportfoliooffinancialinstrumentsismanaged,evaluatedandreportedtokeymanagersonthebasisoffairvalue.
(3)Thefinancialliabilityisahybridinstrumentthatcontainsoneormoreembeddedderivatives,
unlesstheembeddedderivativeshavenosignificantchangeinthecashflowsofthehybridinstrument,ortheembeddedderivativesshouldobviouslynotbeseparatedfromtherelatedhybridinstruments.
(4)Mixedinstrumentscontainembeddedderivativesthatneedtobesplitbutcannotbe
measuredseparatelyatthetimeofacquisitionoronsubsequentbalancesheetdays.Whenanenterprisedesignatesafinancialliabilityasafinancialliabilityatfairvaluethroughprofitorloss,itcannotbereclassifiedasotherfinancialliabilities;norcanotherfinancialliabilitiesbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.OtherfinancialliabilitiesForsuchfinancialliabilities,subsequentmeasurementismadeatamortizedcostusingtheeffectiveinterestratemethod.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
ImpairmentoffinancialassetsBasedontheexpectedcreditlosses(“ECLs”),theGrouprecognisesanallowanceforECLsforthefinancialassetsmeasuredatamortisedcost,debtinvestmentsatfairvaluethroughothercomprehensiveincomeandcontractassets.Foraccountsreceivableandcontractassetsthatdonotcontainsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountofexpectedcreditlossesequivalenttotheentirelifecycle.Foraccountsreceivableandcontractassetswithsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountoftheexpectedcreditlossequivalenttotheentirelifetime.Forfinancialassetsotherthanthosemeasuredwithsimplifiedvaluationmethods,theGroupevaluatesateachbalancesheetdatewhetheritscreditriskhassignificantlyincreasedsinceinitialrecognition.Theperiodduringwhichcreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisconsideredthefirststage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossforthenext12monthsandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;theperiodduringwhichcreditriskhassignificantlyincreasedsinceinitialrecognitionalthoughnocreditimpairmenthasoccurredisconsideredthesecondstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentirevalidperiodandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;andtheperiodduringwhichcreditimpairmenthasoccurredafterinitialrecognitionisconsideredthethirdstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentireperiodandshallcomputeinterestincomeaccordingtotheamortisedcostandeffectiveinterestrate.Forfinancialinstrumentswithrelativelylowcreditriskatthebalancesheetdate,theGroupassumesthatitscreditriskhasnotsignificantlyincreasessinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesonfinancialinstrumentsonasingleandcombinedbasis.Takingintoaccountthecreditriskcharacteristicsofdifferentcustomers,theGroupevaluatestheexpectedcreditlossesonaccountsreceivablebasedontheagingportfolio.RefertoNoteVIII(3)forthedisclosureoftheGroup'scriteriaforjudgingthesignificantincreaseincreditrisk,thedefinitionofassetswithimpairedcreditlosses,andtheassumptionofmeasuringexpectedcreditlosses.WhentheGroupnolongerreasonablyexpectstobeabletorecoverallorpartofthecontractcashflowsofthefinancialassets,theGroupdirectlywritesdownthecarryingamountofthefinancialasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,ortorealizethefinancialassetsandsettlethefinancialliabilitiessimultaneously.TransferoffinancialassetsAfinancialassetisderecognisedwhentheGrouphastransferredsubstantiallyalltherisksandrewardsoftheassettothetransferee.AfinancialassetisnotderecognisedwhentheGroupretainssubstantiallyalltherisksandrewardsofthefinancialasset.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipoffinancialassets,therelatedaccountingtreatmentsofsuchfinancialassetsareasfollows:theGroupderecognisesfinancialassetswhenitretainsnocontrolonthem,andassociatedassetsandliabilitiesarerecognisedatthesametime.IftheGroupretainscontrolofthefinancialasset,itrecognizesthefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizesanassociatedliability.Continuinginvolvementthattakestheformofafinancialguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthefinancialguarantee.TheamountofthefinancialguaranteeisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.
9.Inventories
Inventoriesincluderawmaterials,workinprogress,finishedgoods,delegateprocessingsuppliesandturnovermaterials,andaremeasuredatthelowerofcostandnetrealizablevalue.
Inventoriesareinitiallycarriedatcost.Costofinventoriescomprisesallcostsofpurchase,
costsofconversionandothercosts.Costisdeterminedontheweightedaveragebasis.
Turnovermaterialsincludelow-valueconsumablesandpackingmaterials,whichareonthe
immediatewrite-offbasis.
TheGroupadoptstheperpetualinventorysystem.Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealisablevalue.Theinventoriesarewrittendownbelowcosttonetrealisablevalueandthewrite-downisrecognisedinprofitorlossifthecostishigherthanthenetrealisablevalue.Whenthecircumstancesthatpreviouslycausedtheinventoriestobewrittendownbelowcostnolongerexist,inwhichcasethenetrealisablevalueofinventoriesbecomeshigherthanthecarryingamount,theamountofthewrite-downisreversed.Thereversalislimitedtotheamountoftheoriginalwrite-down,andisrecognisedinprofitorloss.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
9.Inventories(Continued)
Netrealizablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.Finishedgoodsarewrittendowncategorybycategory.
10.Long-termequityinvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociates.Along-termequityinvestmentisinitiallymeasuredatitsinitialinvestmentcostonacquisition.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostshallbetheshareofthecarryingamountofequityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyasatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandbookvalueofconsiderationofcombinationisadjustedtocapitalreserves,andtoretainedearningsifcapitalreservesisinsufficient.Othercomprehensiveincomerecognisedbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswichestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesnotundercommoncontrol,theinvestmentcostshallbethecombinationcost.(Forabusinesscombinationachievedinstages,theinitialinvestmentcostisdeterminedasthesumofthecarryingamountofequityoftheacquireeandtheadditionalinvestmentcostsonthecombinationdate.)Thecombinationcostinvolvestheassetspaidbytheacquirer,liabilitiesincurredandthefairvalueofequitysecurities.Othercomprehensiveincomesrecognisedusingtheequitymethodbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswichestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.Theaccumulatedchangesinthefairvalueoffinancialassetsatfairvaluethroughothercomprehensiveincomeisreclassifiedtoretainedearningswhenadoptingthecostmethod.Dependingonthewayofacquisitionoflong-termequityinvestments,theinitialinvestmentcostisdeterminedasfollows:Forlong-termequityinvestmentsacquiredbywayofcashpayment,theinitialinvestmentcostincludesalldirectlyassociatedexpenses,applicabletaxesandfees,andothernecessaryexpenses.Forlong-termequityinvestmentsacquiredbywayofissuingequitysecurities,theinitialinvestmentcostincludesthefairvalueofequitysecurities.Forlong-termequityinvestmentsacquiredbywayoftheswapofnon-monetaryassets,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.7—SwapofNon-monetaryAssets.”Forlong-termequityinvestmentsacquiredbywayofdebtrestructuring,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.12—DebtRestructuring.”
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
10.Long-termequityinvestments(Continued)
TheCompany'sfinancialstatementsusingthecostmethodofaccountingforlong-termequitycanexercisecontrolovertheinvestee.Controlisthepowertogovernthefinancialandoperatingpoliciesoftheinvesteesoastoobtainbenefitsfromitsoperatingactivities.IndeterminingwhethertheCompanyisabletoexercisecontrolovertheinvestee,theeffectofpotentialvotingrightsovertheinvesteeisconsidered,suchasconvertibledebtsandwarrantscurrentlyexercisable.Forlong-termequityinvestmentsaccountedforusingthecostmethod,theyaremeasuredattheinitialInvestmentcosts.Thecostoflong-termequityinvestmentsisadjustedwithadditionalinvestmentordivestment.Cashdividendsorprofitdistributiondeclaredbytheinvesteesarerecognisedasinvestmentincomeinprofitorloss.TheequitymethodisadoptedwhentheGrouphasjointcontrol,orexercisessignificantinfluenceovertheinvestee.Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontrolwithotherpartiesoverthosepolicies.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceischargedtoprofitorloss,andthecostofthelong-termequityinvestmentisadjustedaccordingly.Undertheequitymethod,aftertheGrouphasacquiredalong-termequityinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorloss,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossandothercomprehensiveincome,andadjuststhecarryingamountoftheinvestmentaccordingly.TheGrouprecognisesitsshareoftheinvestee’sprofitorlossaftermakingappropriateadjustmentstotheinvestee’sprofitorlossbasedonthefairvalueoftheinvestee’sidentifiableassetsattheacquisitiondate,usingtheGroup’saccountingpoliciesandperiods.UnrealisedprofitsandlossesfromtransactionswithitsjointventuresandassociatesareeliminatedtotheextentoftheGroup’sinvestmentsintheassociatesorjointventures(exceptforassetsthatconstituteabusiness).ThecarryingamountoftheinvestmentisreducedbasedontheGroup’sshareofanyprofitdistributionsorcashdividendsdeclaredbytheinvestee.TheGroup’sshareofnetlossesoftheinvesteeisrecognisedtotheextentthatthecarryingamountoftheinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteeisreducedtozero,exceptthattheGrouphastheobligationstoassumefurtherlosses.TheGroup’sshareoftheinvestee’sequitychanges,otherthanthosearisingfromtheinvestee’sprofitorloss,othercomprehensiveincomeorprofitdistribution,isrecognisedintheGroup’sequity,andthecarryingamountofthelong-termequityinvestmentisadjustedaccordingly.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
10.Long-termequityinvestments(Continued)
Upondisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountisrecognisedinprofitorloss.Foralong-termequityinvestmentaccountedforusingtheequitymethod,whentheGroupdiscontinuesusingtheequitymethodduetodisposal,allamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossinitsentirety.WhentheGroupcontinuestousetheequitymethod,theamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesandreclassifiedtoprofitorlossonapro-ratabasis.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossonapro-ratabasis.
11.Investmentproperties
Investmentpropertiesarepropertiesheldtoearnrentalincomeand/orforcapitalappreciation.
Investmentpropertiesincludelanduserightsleasedout,landuserightsheldfortransferupon
capitalappreciation,andbuildingsleasedout.
Investmentpropertiesaremeasuredinitiallyatcost.SubsequentexpendituresincurredinrelationtoinvestmentpropertiesareincludedinthecostofinvestmentpropertieswhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtheircostscanbereliablymeasured;otherwise,theexpendituresarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
11.Investmentproperties(Continued)
TheGroupadoptsthecostmodelforsubsequentmeasurementofinvestmentproperties.Buildingsandlanduserightsaredepreciatedoramortizedtotheirestimatednetresidualvaluesovertheirestimatedusefullives.Theestimatedusefullives,theestimatednetresidualvaluesthatareexpressedasapercentageofcostandtheannualdepreciation(amortization)ratesofinvestmentpropertiesareasfollows:
EstimatedusefullivesEstimatedresidualvalueAnnualdepreciation
(amortization)ratesBuildingsandconstructions12-35years0-5%2.71-7.92%Landuserights30-50years-2.00-3.33%Whenaninvestmentpropertyistransferredtoowner-occupiedproperty,itisreclassifiedasafixedassetorintangibleassetatthedateoftransfer.Whenanowner-occupiedpropertyistransferredoutforearningrentalsorforcapitalappreciation,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyatitscarryingamountatthedateoftransfer.Theinvestmentproperties’usefullife,netresidualvalueanddepreciation(amortization)methodappliedarereviewedandadjustedasappropriateattheendofeachyear.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
12.Fixedassets
FixedassetsarerecognisedwhenitisprobablethattherelatedeconomicbenefitswillflowtotheGroupandthecostscanbereliablymeasured.SubsequentexpendituresincurredforafixedassetareincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtherelatedcostcanbereliablymeasured.Thecarryingamountofthereplacedpartisderecognised.Alltheothersubsequentexpendituresarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.Fixedassetsareinitiallymeasuredatcostandtheeffectofanyexpectedcostsofabandoningtheassetattheendofitsuseisconsidered.Thecostofafixedassetistheaggregatecostofpurchaseprice,relatedtaxesandanydirectlyattributableexpenditureforbringingtheassettoitsworkingconditionforitsintendeduse.Fixedassetsaredepreciatedusingthestraight-linemethodtoallocatethecostoftheassetstotheirestimatedresidualvaluesovertheirestimatedusefullives.Forthefixedassetsthathavebeenprovidedforimpairmentloss,therelateddepreciationchargeisprospectivelydeterminedbasedupontheadjustedcarryingamountsovertheirremainingusefullives.
EstimatedusefullivesEstimatedresidualvaluesAnnualdepreciationratesBuildingsandconstructions20-35years0-5%2.71-5.00%Machinery5-14years3-6%6.79-19.40%Motorvehicles3-10years0-5%9.50-33.33%Officeequipment3-10years0-5%9.50-33.33%Electronicequipmentwithin5years0%20%andaboveTheGroupreviewstheusefullife,estimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyearend,andadjustsforanychangewhennecessary.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
13.Borrowingcosts
BorrowingcostsareinterestandothercostsincurredbytheGroupinconnectionwiththeborrowingofthefunds.Borrowingcostsincludeinterest,amortisationofdiscountsorpremiumsrelatedtoborrowings,ancillarycostsincurredinconnectionwiththearrangementofborrowings,andexchangedifferencesarisingfromforeigncurrencyborrowings.Theborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalised.Theamountsofotherborrowingcostsincurredarerecognisedasanexpenseintheperiodinwhichtheyareincurred.Qualifyingassetsareassets(fixedassets,investmentproperties,inventories,etc.)thatnecessarilytakeasubstantialperiodoftimeofacquisition,constructionorproductiontogetreadyfortheirintendeduseorsale.Theborrowingcostsshallnotbecapitalizedunlesstheysimultaneouslymeetthefollowingrequirements:
(1)Theassetdisbursementshavealreadyincurred;
(2)Theborrowingcostshavealreadyincurred;and
(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparetheassetforitsintendeduseorsalehavealreadystarted.Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.Borrowingcostsincurredaftertheintendeduseorsaleshallberecordedinthecurrentprofitsandlosses.Duringtheperiodofcapitalization,thecapitalizedamountofinterestineachaccountingperiodshallbecalculatedanddeterminedinthewaysbelow:
(1)Theenterpriseshallcalculateanddeterminetheinterestofaspecificloanbydeducting
interestincomeoftheloancapitaldepositinthebankorinvestmentincomeobtainedfromatemporaryinvestment.
(2)Theenterpriseshallcalculateanddeterminetheto-be-capitalizedamountofinterestonthe
generalborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Capitalisationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallybyactivitiesotherthanthosenecessarytogettheassetreadyforitsintendeduseorsale,whenthesuspensionisforacontinuousperiodofmorethan3months.Borrowingcostsincurredduringtheseperiodsarerecognisedasanexpenseinprofitorlossuntiltheacquisition,constructionorproductionisresumed.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
14.Right-of-useassets(applicablefrom1January2019)
Theright-of-useassetsoftheGroupmainlyincludebuildings,machinery,vehicles,officeequipmentandotherassetssuchaslanduserights.Atthecommencementdateofthelease,theGrouprecognisesaright-of-useasset.Thecostoftheright-of-useassetcomprises:(i)theamountoftheinitialmeasurementoftheleaseliability;(ii)anyleasepaymentsmadeatorbeforethecommencementdateoftheleaselessanyleaseincentivesreceived;(iii)anyinitialdirectcostincurred;and(iv)anestimateofcostsincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Theright-of-useassetsaredepreciatedonastraight-linebasissubsequentlybytheGroup.IftheGroupisreasonablycertainthattheownershipoftheunderlyingassetwillbetransferredtotheGroupattheendoftheleaseterm,theGroupdepreciatestheassetfromthecommencementdatetotheendoftheusefullifeoftheasset.Otherwise,theGroupdepreciatestheassetsfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheassetortheendoftheleaseterm.TheGroupremeasurestheleaseliabilityatthepresentvalueofthechangedleasepaymentsandadjuststhecarryingamountoftheright-of-useassetsaccordingly,whenthecarryingamountoftheright-of-useassetisreducedtozero,andthereisafurtherreductioninthemeasurementoftheleaseliability,theGrouprecognisestheremainingamountoftheremeasurementinprofitorloss.
15.Constructioninprogress
Thecostofconstructioninprogressisdeterminedaccordingtotheactualexpendituresincurredfortheconstruction,includingallnecessaryconstructionexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshallbecapitalisedbeforetheconstructionisreadyforitsintendeduse,andotherrelevantexpenditures.Anitemofconstructioninprogressistransferredtofixedassetswhentheassetisreadyforitsintendeduse.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
16.Intangibleassets
IntangibleassetsarerecognisedandmeasuredoninitialrecognitionatcostonlyiftherelatedeconomicbenefitswillprobablyflowintotheGroupandtheircostscanbemeasuredreliably.However,theintangibleassetsacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrolshouldbemeasuredatfairvalueseparatelyasintangibleassetswhentheirfairvaluescanbereliablymeasured.TheusefullifeoftheintangibleassetsshallbeassessedaccordingtotheestimatedbeneficialperiodexpectedtogenerateeconomicbenefitsfortheGroup.AnintangibleassetshallberegardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Theusefullivesoftheintangibleassetsareasfollows:
| Categories | Usefullives |
| Landuserights | BetweentheapprovedusefulperiodandtheCompany’soperatingperiod | |
| Software | 3-5years | |
| Trademarks | 5-10years | |
| Technologypatents | 5years | |
| Distributionnetwork | 20years | |
| Franchis | 10years | |
| Favorableleases | 17-20years |
LanduserightsobtainedbytheGroupareusuallyaccountedforasintangibleassets.Asfortheconstructionofplants,factoriesandotherbuildingsoftheGroup,therelatedlanduserightsandotherbuildingswereaccountedforasintangibleassetsandfixedassets,respectively.Purchasecostsoflanduserightsandbuildingswereallocatedtointangibleassetsandfixedassetsseparately.Purchasecostswererecognisedascostoffixedassets,onlyiftheseparationwasimpracticable.Intangibleassetswithafiniteusefullifeareamortisedovertheirestimatedusefullivesusingthestraight-linemethod.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodatleastonceateachfinancialyearend,andmakesadjustmentswhennecessary.LanduserightsallocatedbytheStateareregardedasanintangibleassetwithanindefiniteusefullifeduetoanuncertainusefullife.Theimpairmenttestshouldbeconductedfortheintangibleassetswiththeindefiniteservicelifeeveryyeartodeterminewhethertheimpairmentexists.Theintangibleassetswiththeindefiniteservicelifeshallnotbeamortized,andtheCompanyshallmakethereviewoftheservicelifeoftheintangibleassetsduringeveryaccountingperiod.Ifevidenceprovethatusefullivesarefinite,theGroupaccountsfortheintangibleassetsinaccordancewithintangibleassetswithafiniteusefullife.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
16.Intangibleassets(Continued)
InternalresearchanddevelopmentprojectTheGroupclassifiestheexpensesforinternalresearchanddevelopmentasresearchcostsanddevelopmentcosts.Allresearchcostsarechargedtothecurrentprofitorlossasincurred.ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits(includingdemonstrationthattheproductderivedfromtheintangibleassetortheintangibleassetitselfwillbemarketableor,inthecaseofinternaluse,theusefulnessoftheintangibleassetassuch),theavailabilityoftechnicalandfinancialresourcestocompletetheprojectandprocuretheuseorsaleoftheintangibleasset,andtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditurewhichdoesnotmeetthesecriteriaisexpensedwhenincurred.Expenditureforinvestigation,evaluationandselectionofproductionprocessandnewdrugresearchesisrecognisedinprofitorlossintheperiodinwhichitisincurred.Expenditureonthedesignation,measurementofthefinalutilizationoftheproductionprocessandnewdrugsbeforemassproductioniscapitalizedonlyifallofthefollowingconditionsaresatisfied:
(1)developmentoftheproductionprocessandnewdrugshasbeenfullydemonstratedbythe
technicalteam;
(2)managementhasapprovedthebudgetofdrugproductiondevelopmentandnewdrugs;
(3)marketresearchanalysissuggeststhattheproductsproducedbythenewproduction
technologyareabletobepromoted;
(4)adequatetechnical,financialandotherresourcestocompletethedevelopmentandthe
abilitytouseorselltheintangibleasset;
(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe
reliablymeasured.Otherdevelopmentcoststhatdonotmeettheconditionsabovearerecognisedinprofitorlossintheperiodinwhichtheyareincurred.Developmentcostspreviouslyrecognisedasexpensesarenotrecognisedasanassetinasubsequentperiod.Capitalizedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
17.Impairmentoflong-termassets
TheGroupdeterminestheimpairmentofassets,otherthantheimpairmentofinventories,investmentpropertiesmeasuredusingthefairvaluemodel,deferredtaxassets,financialassetsandassetsclassifiedasheldforsale,usingthefollowingmethods:
TheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatanasset
maybeimpaired.Ifanyindicationexiststhatanassetmaybeimpaired,theGroupestimates
therecoverableamountoftheassetandperformsimpairmenttesting.Goodwillarisingfroma
businesscombinationandanintangibleassetwithanindefiniteusefullifearetestedfor
impairmentatleastateachyearend,irrespectiveofwhetherthereisanyindicationthatthe
assetmaybeimpaired.Intangibleassetsthathavenotbeenreadyfortheirintendeduseare
testedforimpairmenteachyear.
Therecoverableamountofanassetisthehigherofitsfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.TheGroupestimatestherecoverableamountonanindividualbasisunlessitisnotpossibletoestimatetherecoverableamountoftheindividualasset,inwhichcasetherecoverableamountisdeterminedfortheassetgrouptowhichtheassetbelongs.Identificationofanassetgroupisbasedonwhethermajorcashinflowsgeneratedbytheassetgrouparelargelyindependentofthecashinflowsfromotherassetsorassetgroups.
Whentherecoverableamountofanassetorassetgroupislessthanitscarryingamount,the
carryingamountisreducedtotherecoverableamountbytheGroup.Thereductioninthe
carryingamountistreatedasanimpairmentlossandrecognisedinprofitorloss.Aprovision
forimpairmentlossoftheassetisrecognisedaccordingly.
Forthepurposeofimpairmenttesting,thecarryingamountofgoodwillacquiredinabusinesscombinationisallocatedfromtheacquisitiondateonareasonablebasis,toeachoftherelatedassetgroupsunlessitisimpossibletoallocatetotherelatedassetgroups,inwhichcaseitisallocatedtoeachoftherelatedsetsofassetgroups.EachoftherelatedassetgroupsorsetsofassetgroupsisanassetgrouporasetofassetgroupsthatisexpectedtobenefitfromthesynergiesofthebusinesscombinationandshallnotbelargerthanareportablesegmentdeterminedbytheGroup.Whentestinganassetgroup(asetofassetgroups)towhichgoodwillhasbeenallocatedforimpairment,ifthereisanyindicationofimpairment,theGroupfirstlyteststheassetgroup(setofassetgroups),excludingtheamountofgoodwillallocated,forimpairment,i.e.,theGroupdeterminesandcomparestherecoverableamountwiththerelatedcarryingamountandrecognisesanyimpairmentloss.Afterthat,theGroupteststheassetgroup(setofassetgroups),includinggoodwill,forimpairment,thecarryingamountoftherelatedassetgroup(setofassetgroups)iscomparedtoitsrecoverableamount.Ifthecarryingamountoftheassetgroup(setofassetgroups)ishigherthanitsrecoverableamount,theamountoftheimpairmentlossisfirstlyusedtoreducethecarryingamountofthegoodwillallocatedtotheassetgroup(setofassetgroups),andthenusedtoreducethecarryingamountofotherassets(otherthanthegoodwill)withintheassetgroup(setofassetgroups),onapro-ratabasisofthecarryingamountofeachasset.Oncetheaboveimpairmentlossisrecognised,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
18.Long-termprepaidexpenses
Long-termprepaidexpensesincludetheexpenditureforimprovementstofixedassetsunderoperatingleases,andotherexpendituresthathavebeenmadebutshouldberecognisedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortizedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortization.
19.Governmentalmedicalreservefundsandspeciallyapprovedreservingmaterials
AppointedbythePRCGovernment,CNPGCisresponsibleforpurchasing,allocatingandprovidingthegovernmentalmedicalreserves,whichincludethemedicalproducts,traditionalChinesemedicineandmedicalappliancesfornation-wideemergencyrescueanddisasterrelief.AppointedbytheGovernmentofGuangxiProvinceandGuangdongProvince,theCompany,SinopharmMedicineHoldingGuangxiCo.,Ltd.(“SinopharmGuangxi”)andSinopharmMedicineHoldingGuangzhouCo.,Ltd.(“SinopharmGuangzhou”)areresponsibleforpurchasing,allocatingandprovidingthemedicalreserves,whichincludethemedicalproductsneededforseriousdisasters,epidemicsandotheremergenciesaswellasendemicdiseasesinGuangxiProvinceandGuangdongProvince.InaccordancewiththeregulationofCNPGC,beingtheenterprisewhichbearstheobligationforspeciallyapprovedmedicalreservingmaterials,themedicalreservefundsreceivedfromthePRCGovernmentorlocalgovernmentarerecognisedasothernon-currentliabilities.TheGroupreservesthespeciallyapprovedmedicalreservingmaterialsaccordingtothereserveprogram(bycategoryandbyquantity),appliesdynamicmanagementandrecognizesthemasothernon-currentassets.
20.Employeebenefits
Employeebenefitsmainlyincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefitsincurredinexchangeforservicerenderedbyemployeesorvariousformsofrewardsorcompensationduetoseveranceoflaborrelation.Short-termemployeebenefits
Theactualoccurredshort-termemployeebenefitsarerecognizedasliabilitiesduringtheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployeesandascostsofassetsorexpensestowhichevertheemployeeserviceisattributable.Post-employmentbenefits(definedcontributionplans)
TheemployeesintheGroupparticipateinsocialinsuranceandunemploymentinsuranceschemesadministratedbythelocalgovernments,andtherelatedexpendituresarerecordedincostofrelatedassetsorprofitorlossintheperiodwhentheyincurred.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
20.Employeebenefits(Continued)Post-employmentbenefits(definedbenefitplans)
TheGroupoperatesadefinedbenefitpensionscheme.Nofundshavebeeninjectedintothescheme.Thecostofbenefitsprovidedunderthedefinedbenefitschemeiscalculatedusingtheexpectedbenefitaccrualunitapproach.Remeasurementarisingfromdefinedbenefitpensionschemes,includingactuarialgainsorlosses,changesintheassetcapeffect(deductingamountsincludedinnetinterest)andreturnsonschemeassets(deductingamountsincludedinnetinterest),isinstantlyrecognisedinthebalancesheetandchargedtoshareholders’equitythroughothercomprehensiveincomefortheperiodduringwhichitisincurred.Itwillnotbereversedtoprofitandlossinsubsequentperiods.Previousservicecostsarerecognisedascurrentexpenseswhen:thedefinedbenefitschemeisrevised,ortherelevantrestructuringcostsorterminationbenefitsarerecognisedbytheGroup,whicheverearlier.Netinterestisarrivedatbymultiplyingnetliabilitiesornetassetsofdefinedbenefitswithadiscountrate.Changesinnetobligationsofdefinedbenefitsarerecognisedasoperatingcostsandadministrationexpensesintheincomestatement.Servicecostsincludecurrentservicescosts,pastservicecostsandsettlementofprofitorloss.Netinterestincludeinterestincomefromschemeassets,interestexpensesforschemeobligationsandinterestoftheassetcapeffect.Terminationbenefits
TheGrouprecognizesaliabilityforterminationbenefitsandchargestoprofitorlossattheearlierofthefollowingdates:a)whentheGroupcannolongerwithdrawfromtheterminationplanortheredundancyoffer;andb)whentheGrouprecognizescostsorexpenseforarestructuringplanwhichinvolvesthepaymentofterminationbenefits.TheGroupoffersterminationbenefitstotheemployeeswhoacceptinternalretirementarrangements.Terminationbenefitsreferstosalariesandsocialsecuritiespaidtotheemployeeswhovoluntarilyretireandapprovedbythemanagementbeforethelegalretirementage.TheGrouppaysterminationbenefitsfromthedateofthestartingofinternalretirementarrangementstolegalretirementage.Whenmeetingtherecognitioncriteria,terminationbenefitsarerecognisedasliabilitiesfromthedateonwhichtheemployeesstopofferingservicestothelegalretirementdateandrecognisedinprofitorlossasincurred.Thechangeofterminationbenefits’actuarialassumptionsanddifferenceincurredbytheadjustmentofwelfarestandardsarerecognisedinprofitorlossasincurred.Theterminationbenefitsexpectedtobesettledwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.Otherlong-termemployeebenefitsOtherlong-termemployee’benefitsprovidedtoemployeesshallberecognisedandmeasuredasnetliabilitiesornetassetswhereprovisionsregardingpost-employmentbenefitsareapplicable,providedthatchangesshallbeincludedinthecurrentprofitandlossorrelatedassetcosts.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
21.Leaseliabilities(applicablefrom1January2019)
Atthecommencementdateofthelease,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,exceptforshort-termleasesandleasesoflow-valueassets.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheinterestrateimplicitintheleaseasthediscountrate.Ifthatratecannotbereadilydetermined,theGroupusesthelessee’sincrementalborrowingrate.TheGroupcalculatestheinterestexpensesoftheleaseliabilityineachperiodduringtheleasetermusingtheconstantperiodicrateofinterest,andrecognisessuchinterestexpensesinprofitorloss,exceptthoseinthecostsoftherelatedassetasrequired.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesarerecognisedinprofitorlossasincurred,exceptthoseinthecostsoftherelatedassetasrequired.Afterthecommencementdateofthelease,theGroupremeasuresleaseliabilitieswithchangedpresentvalueoftheleasepaymentswhenfixedpayment,expectedunguaranteedresidualvaluepayable,theinterestrateimplicitintheleaseasthediscountrate,purchaseoptions,optionstoextendtheleaseordeterminationoftheleasetermchange.
22.Provisions
AnobligationrelatedtoacontingencyshallberecognisedbytheGroupasaprovisionwhenallofthefollowingconditionsaresatisfied,exceptforcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingenterprisesundercommoncontrol:
(1)TheobligationisapresentobligationoftheGroup;
(2)ItisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettletheobligation;and
(3)Theamountoftheobligationcanbemeasuredreliably.
Theprovisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Thecarryingamountofprovisionsisreviewedatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.Forbusinesscombinationsnotundercommoncontrol,contingentliabilitiesoftheacquireeobtainedinabusinesscombinationshallbemeasuredatfairvalueininitialrecognition.Afterinitialrecognition,subsequentmeasurementisconductedusingthehigheroftheamountrecognisedbyprovisionsandtheamountofinitialrecognitiondeductingtheaccumulatedamortizationamountdeterminedbytheprinciplesofrevenuerecognition.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
23.Share-basedpayments
Theshare-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.Thefairvalueoftheequityinstrumentsisdeterminedusingthebinomialmodel.Thecostofequity-settledtransactionsisrecognised,togetherwithacorrespondingincreaseincapitalreserves,overtheperiodinwhichthespecifiedperformanceorserviceconditionsarefulfilled.Thecumulativeexpenserecognisedforequity-settledtransactionsateachbalancesheetdateuntilthevestingdatereflectstheextenttowhichthevestingperiodhasexpiredandtheGroup’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvest.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.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
23.Share-basedpayments(Continued)
Acash-settledshare-basedpaymentshallbemeasuredinaccordancewiththefairvalueoftheliabilitycalculatedandconfirmedbasedonthesharesorotherequityinstrumentsundertakenbyanenterprise.Astoacash-settledshare-basedpaymentinstruments,iftherightmaybeexercisedimmediatelyafterthegrant,thefairvalueoftheliabilityundertakenbytheenterpriseshall,onthedateofthegrant,beincludedintherelevantcostsorexpenses,andtheliabilitiesshallbeincreasedaccordingly.Astoacash-settledshare-basedpayment,iftherightmaynotbeexerciseduntilthevestingperiodcomestoanendoruntilthespecifiedperformanceconditionsaremet,oneachbalancesheetdatewithinthevestingperiod,theservicesobtainedinthecurrentperiodshall,basedonthebestestimateoftheinformationabouttheexercisableright,beincludedintherelevantcostsorexpensesandthecorrespondingliabilitiesatthefairvalueoftheliabilityundertakenbytheGroup.TheGroupshall,oneachbalancesheetdateandoneachaccountdatepriortothesettlementoftherelevantliabilities,re-measurethefairvaluesoftheliabilitiesandincludethechangesinthecurrentprofitsandlosses.
24.Revenuefromcontractswithcustomers
Thegrouprecognizesrevenuewhenithasfulfilleditsobligationsunderthecontract,i,e.whenthecustomeracquirescontrolrelevantgoodsorservices.Acquiringcontroloverthegoodsorservicesreferstotheabilitytodominatetheuseofthegoodsortheportionofservicesandtoderivealmostalltheeconomicbenefitstherefrom.ContractsforsaleofgoodsThecontractsforthesaleofgoodsbetweentheGroupanditscustomerusuallyonlycontaintheperformanceobligationsforthetransferofgoods.TheGroupgenerallyrecognizesrevenueatthepointoftransferringthecontrolofgoodsonthebasisofacombinationofthefollowingfactors:thecurrentrighttocollectthegoods,thetransferofmajorrisksandbenefitsintheownershipofthegoods,andthetransferofthelegalownershipofthegoods,thetransferofphysicalassetsofthegoodsandthatthecustomershaveacceptedthegoods.ServicecontractsTheservicecontractsbetweentheGroupanditscustomersusuallyconsistofperformanceobligationssuchasstorageandlogisticsandsoon.AstheGroup'sperformanceofcontractsisatthesametimewhenthecustomerobtainsandconsumestheeconomicbenefitsoftheperformanceoftheGroup,andtheGrouphastherighttocollectreceivablesfromtheperformanceofcontactsthathasbeencompletedtodate,theGroupregardsitasacontractobligationoveraperiodoftime,exceptthattheprogressofperformancecannotbereasonablydetermined.TheGroupdeterminestheprogressoftheperformanceofcontractsinaccordancewiththeinputmethod.IftheprogressofperformanceofcontractscannotbereasonablydeterminedandthecostincurredbytheGroupisexpectedtobecompensated,therevenueisrecognisedonthebasisoftheincurredcostsuntiltheprogressofperformanceofcontactscanbereasonablymeasured.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
24.Revenuefromcontractswithcustomers(Continued)
VariableconsiderationSomeoftheGroup'scontractswithcustomersincludingarrangementsofsalesrebates(listitemsinaccordancewiththecustomer’sactualconditions,suchasearlycompletionawardsorothers)resultinvariableconsideration.TheGroupdeterminesthebestestimateofvariableconsiderationbyusingtheexpectedvaluemethodorthemostlikelyamountmethod.However,thetransactionpriceincludingvariableconsiderationisonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.ConsiderationpayabletocustomersWhereconsiderationispayablebytheGrouptoacustomer,suchconsiderationpayableshallbedeductedagainstthetransactionprice,andagainstcurrentrevenueupontherecognitionofrevenueorthepaymentof(orthecommitmenttopay)theconsiderationtothecustomer(whicheverislater),saveforconsiderationpayabletothecustomerforthepurposeofacquiringfromthecustomerotherclearlyseparableproducts.ReturnclausesInconnectionwithsaleswithareturnclause,revenueisrecognisedaccordingtotheamountofconsiderationitexpectstobeentitledtoforthetransfertoacustomerwhenthecustomeracquirescontroloftherelevantproducts.Amountsexpectedtoberefundedforthereturnofsalesarerecognisedasliabilities.Atthesametime,thebalanceofthecarryingvalueoftheproductexpectedtobereturnedupontransferlessexpectedcostsfortherecallofsuchproduct(includinganimpairmentlossoftherecalledproduct)shallberecognisedasanasset(i.e.costofreturnreceivables),andthenetamountofthecarryingvalueofthetransferredproductuponthetransferlesstheaforesaidassetcostshallbetransferredtocost.Ateachbalancesheetdate,theGroupreassessesthefuturereturnofsalesandremeasurestheaboveassetsandliabilities.SignificantfinancingcomponentWhereacontractcontainsasignificantfinancingcomponent,theGroupdeterminestransactionpricesbasedonamountspayableassumedtobesettledincashbycustomersimmediatelyupontheacquisitionofcontrolovertheproducts.Thedifferencebetweensuchtransactionpriceandcontractconsiderationisamortisedoverthecontractperiodusingtheeffectiveinterestratemethodbasedonaratiothatdiscountsthenominalcontractualconsiderationtothecurrentsellingpriceoftheproducts.TheGroupshallnotgiveconsiderationtoanysignificantfinancingcomponentinacontractifthegapbetweenthecustomer’sacquisitionofcontrolovertheproductsandpaymentofconsiderationisexpectedtobelessthan1year.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
24.Revenuefromcontractswithcustomers(Continued)
WarrantyclausesTheGroupprovidesqualityassuranceforproductssoldandassetsbuiltinaccordancewithcontracttermsandlawsandregulations.TheaccountingtreatmentofqualityassuranceintheformofwarrantyassuringcustomersproductssoldareincompliancewithrequiredstandardsissetoutinNoteIII(22).WheretheGroupprovidesaservicewarrantyforastandaloneserviceinadditiontotheassuranceofcomplianceofproductswithrequiredstandards,suchwarrantyistreatedasastand-alonecontractualperformanceobligation,andaportionofthetransactionpriceshallbeallocatedtotheservicewarrantybasedonapercentageofthestand-alonepricefortheprovisionoftheproductandservicewarranty.Whenassessingwhetherawarrantyisrenderingastand-aloneserviceinadditiontoprovidingguaranteetocustomersthatallsoldgoodsareincompliancewithrequiredstandards,theGroupwillconsiderwhetherornotsuchwarrantyisastatutoryrequirement,thetermofthewarrantyandthenatureoftheGroup’sundertakingtoperformitsobligations.RewardpointsprogramTheGroupgrantsrewardpointstocustomerswhensellinggoods.CustomerscanuserewardpointstoredeemfreeordiscountedgoodsprovidedbytheGroup.Thisrewardpointsprogramprovidessignificantrightstocustomers,andtheGroupconsidersitasanindividualperformanceobligation,andapportionspartofthetransactionpricestorewardpointsbasedonpricingofgoodsorserviceswithwarrantyclauses.Revenueisrecognisedwhencustomersobtaingoodsredeemedorwhenrewardpointsexpire.Principalresponsibleperson/proxyForgoodsorotherassetsobtainedfromathirdpartywhichweretransferredlatertocustomers,theGrouphastherighttodecide,independently,thepricingofgoods.ThismeansthattheGrouphasobtainedcontroloverrelatedgoodsbeforetransferringtocustomers.Therefore,theGroupistheprincipalresponsibleperson,andrevenueisrecognisedbasedonthetotalamountofconsiderationreceivedorreceivable.Otherwise,theGroupisproxy,andrevenueisrecognisedbasedonexpectedcommission.Thisamountshouldbethetotalamountofconsiderationreceivedorreceivablenetoftheamountpayabletootherparties,orbasedonthefixedamountorpercentage.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
25.Contractassetsandcontractliabilities
TheGrouppresentscontractassetsorcontractliabilitiesonthebalancesheetaccordingtotherelationshipbetweencontractualperformanceobligationsandcustomerpayments.Contractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasisafterset-off.ContractassetsTherighttoreceiveconsiderationfollowingthetransferofproductstocustomerswhichisdependentonfactorsotherthanthepassageoftimeispresentedascontractassets.FordetailsoftheGroup’sdeterminationandaccountingtreatmentofexpectedcreditlossesfromcontractassets,pleaserefertoNoteIII(8).ContractliabilitiesTheobligationtopassproductstocustomersinconnectionwithcustomerconsiderationreceivedorreceivableispresentedascontractliabilities,forexample,amountsreceivedpriortothetransferofthepromisedproducts.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
26.Assetsrelatingtocontractcost
TheGroup’sassetsrelatingtocontractcostsincludethecontractacquisitioncostsandcontractperformancecosts,presentedrespectivelyunderinventories,othercurrentassetsandothernon-currentassets.WheretheGroupexpectstheincrementalcostsforacquiringacontracttoberecoverable,suchcontractacquisitioncostsarerecognisedasanasset(unlesstheamortisationperiodoftheassetisnotmorethan1year).CostsincurredbytheGroupfortheperformanceofacontractarerecognisedasanassetascontractperformancecostsiftheydonotfallunderthescopeoftherelevantstandardsforinventories,fixedassetsorintangibleassetsbutmeetallthefollowingconditions:
(1)Theyaredirectlyrelatedtoacurrentoranticipatedcontract,includingdirectlabour,directmaterials,manufacturingexpenses(orsimilarexpenses),tobebornebycustomersasspecificallystipulated,andotherwiseincurredsolelyinconnectionwiththecontract;
(2)theywillincreasetheresourcestobeutilisedintheCompany’sfutureperformanceofits
contractualobligations;and
(3)theyareexpectedtoberecoverable.TheGroupamortisesassetsrelatingtocontractcostsonthesamebasisasthatfortherecognitionofrevenuerelatingtosuchassetsandrecognisestheamortisedassetsincurrentprofitorloss.Forassetsrelatingtocontractcostswhosecarryingvalueishigherthanthedifferencebetweenthefollowingtwoitems,theGroupmakesprovisionforimpairmentfortheexcesstoberecognisedasassetimpairmentlosses:
(1)Theremainingconsiderationexpectedtobeobtainedasaresultofthetransferofgoodsrelatingtosuchassets;
(2)EstimatedcoststobeincurredinconnectionwiththetransferofrelevantgoodsIntheeventthatthedifferencebetween(1)and(2)becomeshigherthanthecarryingvalueofsuchassetsasaresultofchangesinthefactorsofimpairmentforpreviousperiods,previousprovisionsforassetimpairmentlossesshouldbewrittenbackandincludedincurrentprofitorloss,providedthattheasset’scarryingvaluefollowingthewrite-backshallnotexceedthecarryingvaluethatsuchassetswouldhaveonthedateofwrite-backweretherenoprovisionforimpairment.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
27.Governmentgrants
Agovernmentgrantisrecognisedwhentheconditionsattachedtoitcanbecompliedwithandthegovernmentgrantcanbereceived.Foragovernmentgrantintheformoftransferofmonetaryassets,thegrantismeasuredattheamountreceivedorreceivable.Foragovernmentgrantintheformoftransferofnon-monetaryassets,itismeasuredatfairvalue;ifthefairvalueisnotreliablydeterminable,thegrantismeasuredatnominalamount.Governmentgrantsrelatedtoassetsrefertogovernmentassetswhicharegrantedtoenterprisesforthelong-termassetsformedbyacquisition,constructionorinothermanners.Governmentgrantsrelatedtoincomerefertogovernmentgrantsotherthanthoserelatedtoassets.Governmentgrantsrelatedtoincometobeusedascompensationforfutureexpensesorlossesshallberecognisedasdeferredincomeandshallbechargedtocurrentprofitorlossorbeusedtowritedowntherelevantloss,duringtherecognitionoftherelevantcostexpensesorlosses;orusedascompensationforrelevantexpensesorlossesalreadyincurredbyenterprisesshallbedirectlychargedtotheprofitorlossaccountinthecurrentperiodorusedtowritedowntherelevantcost.Thegovernmentgrantsrelatedtoassetsshallbeusedtowritedownthebookvalueoftherelevantassetsorberecognisedasdeferredincome.Thegovernmentgrantsrelatedtoassets,recognisedasdeferredincome,shallbechargedtoprofitandlossreasonablyandsystematicallyinstagesovertheusefullivesoftherelevantassets.Thegovernmentgrantsmeasuredatanominalamountshallbedirectlychargedtocurrentprofitorloss.Ifanyrelatedassetissold,transferred,writtenoffordestroyedbeforetheendofitsusefullife,thebalanceoftheundistributeddeferredincomeshallbetransferredtothecurrentgainorlossondisposaloftheasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
28.Incometax
Incometaxcomprisescurrentanddeferredtax.Incometaxisrecognisedasincomeorexpenseinprofitorloss,orrecogniseddirectlyinequityifitarisesfromabusinesscombinationorrelatestoatransactionoreventwhichisrecogniseddirectlyinequity.CurrenttaxliabilitiesorassetsarisingfromthecurrentandpriorperiodsattheamountexpectedtobepaidbytheGrouporreturnedbythetaxauthorityarecalculatedaccordingtorelatedtaxlaws.Deferredtaxisprovidedusingthebalancesheetliabilitymethod,onalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts,andtemporarydifferencesbetweenthetaxbasesandthecarryingamountsoftheitems,whichhaveataxbaseaccordingtorelatedtaxlawsbutarenotrecognisedasassetsandliabilities.Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:
(1)whenthetaxabletemporarydifferencearisesfromtheinitialrecognitionofgoodwill,oranassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeoftransaction,affectsneitheraccountingprofitnortaxableprofitorloss;and
(2)inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,
associatesandjointventures,whenthetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,andthecarryforwardofunusedtaxlossesandanyunusedtaxcredits.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandunusedtaxcreditscanbeutilised,except:
(1)whenthedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and
(2)inrespectofthedeductibletemporarydifferencesassociatedwithinvestmentsin
subsidiaries,associatesandjointventures,deferredtaxassetsareonlyrecognisedtotheextentthatitisprobablethatthetemporarydifferenceswillbereversedintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilisedinthefuture.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
28.Incometax(Continued)
Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,inaccordancewiththerequirementsoftaxlaws.ThemeasurementofdeferredtaxassetsanddeferredtaxliabilitiesreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheGroupexpects,atthebalancesheetdate,torecovertheassetsorsettletheliabilities.Thecarryingamountofdeferredtaxassetsisreviewedatthebalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailableinfutureperiodstoallowthedeferredtaxassetstobeutilised.Unrecogniseddeferredtaxassetsarereassessedatthebalancesheetdateandarerecognisedtotheextentthatithasbecomeprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettoberecovered.DeferredtaxassetsanddeferredtaxliabilitiesareoffsetifandonlyiftheGrouphasalegallyenforceablerighttosetoffcurrenttaxassetsandcurrenttaxliabilities,andthedeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesorassetsareexpectedtobesettledorrecovered.
29.Leases(applicablefrom1January2019)
IdentificationofleasesAtinceptionofacontract,theGroupassesseswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theGroupassesseswhether,throughouttheperiodofuse,thecustomerhasbothoftherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedassetandtherighttodirecttheuseoftheidentifiedasset.IdentificationofseparateleasecomponentsForacontractthatcontainsmultipleseparateleasecomponents,theGroupseparatesthecomponentsofthecontractandaccountsforeachseparateleasecomponent.Therighttouseanunderlyingassetisaseparateleasecomponentifboth:
(1)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwithotherresourcesthatarereadilyavailabletothelessee;and
(2)theunderlyingassetisneitherhighlydependenton,norhighlyinterrelatedwith,theother
underlyingassetsinthecontract.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
29.Leases(applicablefrom1January2019)(Continued)
Separatingleasecomponentsandnon-leasecomponentsForacontractthatcontainsleasecomponentsandnon-leasecomponents,theGroupaccountsforleasecomponentsandnon-leasecomponentsseparatelyasalessororalessee.AssessmentoftheleasetermTheleasetermisthenon-cancellableperiodofaleaseforwhichtheGrouphastherighttouseanunderlyingasset.IftheGrouphasanoptiontoextendthelease,thatis,theGrouphastherighttoextendthelease,andisreasonablycertaintoexercisethatoption,theleasetermalsoincludesperiodscoveredbyanoptiontoextendthelease.IftheGrouphasanoptiontoterminatethelease,thatis,theGrouphastherighttoterminatethelease,butisreasonablycertainnottoexercisethatoption,theleasetermincludesperiodscoveredbyanoptiontoterminatethelease.TheGroupreassesseswhetheritisreasonablycertaintoexerciseanextensionoption,purchaseoption,ornottoexerciseaterminationoption,upontheoccurrenceofeitherasignificanteventorasignificantchangeinthecircumstancesthatiswithinthecontroloftheGroupandaffectswhethertheGroupisreasonablycertaintoexerciseanoptionnotpreviouslyincludedinitsdeterminationoftheleaseterm.AslesseeTheGroupaccountsasalesseeapplyingNoteIII(15)andNoteIII(21).LeasemodificationsLeasemodificationisachangeinthescopeofalease,ortheconsiderationforalease,thatwasnotpartoftheoriginaltermsandconditionsofthelease,forexample,addingorterminatingtherighttouseoneormoreunderlyingassets,orextendingorshorteningthecontractualleaseterm.TheGroupaccountsforaleasemodificationasaseparateleaseifboth:
(1)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore
underlyingassets;and
(2)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-
alonepricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepricetoreflectthecircumstancesoftheparticularcontract.Foraleasemodificationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodificationtheGroupremeasurestheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm,orthelessee’sincrementalborrowingrateattheeffectivedateofthemodification,iftheinterestrateimplicitintheleasecannotbereadilydetermined.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
29.Leases(applicablefrom1January2019)(Continued)
Aslessee(Continued)Leasemodifications(Continued)Foraleasemodificationthatisnotaccountedforasaseparatelease,theGroupaccountsfortheremeasurementoftheleaseliabilityby:
(1)decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfull
terminationoftheleaseforleasemodificationsthatdecreasethescopeofthelease,andrecognisingthegainorlossrelatingtothepartialorfullterminationoftheleaseinprofitorloss;or
(2)makingacorrespondingadjustmenttotheright-of-useassetforallotherlease
modifications.Short-termleasesandleasesoflow-valueassetsTheGroupconsidersaleasethat,atthecommencementdateofthelease,hasaleasetermof12monthsorless,anddoesnotcontainanypurchaseoptionasashort-termlease;andaleaseforwhichthevalueoftheindividualunderlyingassetisnotmorethanRMB40,000whenitisnewasaleaseoflow-valueassets.IftheGroupsubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.TheGroupdoesnotrecognisetheright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassets.TheGrouprecognisesleasepaymentsonshort-termleasesandleasesoflow-valueassetsinthecostsoftherelatedassetorprofitorlossonastraight-linebasisovertheleaseterm.AslessorAleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset,exceptthataleaseisclassifiedasanoperatingleaseattheinceptiondate.TheGroup,asanintermediatelessor,classifiesthesubleasebyreferencetotheright-of-useassetarisingfromtheheadlease.AslessorofanoperatingleaseRentincomeunderanoperatingleaseisrecognisedonastraight-linebasisovertheleaseterm,throughprofitorloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleasereceivablesarechargedtoprofitorlossasincurred.TheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
30.Leases(applicablein2018)
Financeleasesareleaseswiththewholerisksandrewardsrelatedtotheassetsubstantiallytransferred.Theotherkindsofleasesarenominatedoperatingleases.AslesseeofoperatingleasesRentalexpensesunderoperatingleasesarerecognisedasrelevantassetcostsorincurrentprofitorlossonthestraight-linebasisovertheleaseterm.Contingentrentalischargedtocurrentprofitorlosswhenincurred.AslessorofoperatingleasesRentalincomeunderoperatingleasesarerecognisedasprofit/lossforthecurrentperiodonastraight-linebasisovertheleaseterm.Contingentrentalischargedtocurrentprofitorlosswhenincurred.AslesseeunderfinanceleasesAnassetheldunderfinanceleasesisinitiallyrecognisedattheloweroftheleasedassets’fairvalueandthepresentvalueofminimumleasepaymentsontheleasecommencementdate.Theamountoflong-termpayableswillberecognisedasminimumleasepaymentsaccordingly,andthedifferencesbetweentheleasedassets’fairvalueandthepresentvalueofminimumleasepaymentswillberecordedasunrecognisedfinancingcostswhichwillbeamortisedusingtheeffectiveinterestmethodoverthetermoftherelevantlease.Contingentrentalswillberecognisedinprofitorlossfortheperiodwhentheyareactuallyincurred.FixedassetsthatareheldunderfinanceleasesaredepreciatedbyapplyingthesamepolicyasthatforthefixedassetsownedbytheGroup.Ifitcanbereasonablydeterminedthattheownershipoftheleasedassetcanbeobtainedattheendoftheleaseterm,theleasedassetisdepreciatedoveritsusefullife;otherwise,theleasedassetisdepreciatedovertheshorteroftheleasetermanditsusefullife.
31.Dividenddistribution
Cashdividenddistributionisrecognisedasaliabilityintheperiodinwhichitisapprovedbyshareholdersattheannualshareholders’meeting.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
32.Fairvaluemeasurement
Ateachbalancesheetdate,theGroupmeasuresthefairvalueofequityinstrumentinvestments.Fairvaluemeansthepricereceivablefromthedisposalofanassetorrequiredtobepaidforthetransferofaliabilityinanorderlytransactionincurredbymarketparticipantsonthemeasurementdate.TheGroupmeasuresassetsorliabilitiesatfairvaluewiththeassumptionthattheorderlytransactionofassetdisposalorthetransferofliabilitiestakesplaceinthemajormarketfortherelevantassetsorliabilities.Wherethereisnomajormarket,theGroupassumesthatsuchtransactiontakesplaceinthemostfavourablemarketfortherelevantassetsorliabilities.Themajormarket(ormostfavourablemarket)isatradingmarketwhichtheGrouphasaccesstoonthemeasurementdate.TheGroupadoptsassumptionsusedbymarketparticipantswhentheypricetheassetorliabilitywiththeaimofmaximisingitseconomicbenefits.Themeasurementofnon-financialassetsmeasuredatfairvalueshouldtakeintoaccounttheabilityofmarketparticipantstoutilisetheassetinthebestwayforgeneratingeconomicbenefits,ortheabilitytodisposeofsuchassettoothermarketparticipantswhoareabletoutilisetheassetinthebestwayforgeneratingeconomicbenefits.TheGroupadoptsvaluationtechniquesthatareappropriateinthecurrentcircumstancesandsupportedbysufficientusabledataandotherinformation.Observableinputwillbeusedfirstandforemost.Unobservableinputwillonlybeusedwhenitisnotpossibleorpracticabletoobtainobservableinput.Thefairvaluehierarchyinwhichanassetorliabilityismeasuredordisclosedinthefinancialstatementsatfairvaluewillbedeterminedonthebasisofthelowestlevelofinputwhichissignificantforthefairvaluemeasurementasawhole.Inputatthefirstlevelrepresentsunadjustedquotedpricesinanactivemarketfortheacquisitionofthesameassetorliabilityonthemeasurementdate.Inputatthesecondlevelrepresentsdirectlyorindirectlyobservableassetsorliabilitiesapartfrominputatthefirstlevel.Inputatthethirdlevelrepresentsunobservableinputfortheassetorliability.Ateachbalancesheetdate,theGroupreassessesassetsandliabilitiesmeasuredatfairvalueonanongoingbasisrecognisedinthefinancialstatementstodeterminewhethertheleveloffairvaluemeasurementshouldbechanged.
33.Segmentinformation
TheGroupidentifiesoperatingsegmentsbasedontheinternalorganizationstructure,managementrequirementsandinternalreportingsystem,anddisclosessegmentinformationofreportablesegmentswhichisdeterminedonthebasisofoperatingsegments.AnoperatingsegmentisacomponentoftheGroupthatsatisfiesallofthefollowingconditions:
(1)thecomponentisabletoearnrevenuesandincurexpensesfromitsordinaryactivities;(2)thecomponent’soperatingresultsareregularlyreviewedbytheGroup’smanagementtomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformance,and(3)forwhichtheinformationonfinancialposition,operatingresultsandcashflowsisavailabletotheGroup.Iftwoormoreoperatingsegmentshavesimilareconomiccharacteristicsandsatisfycertainconditions,theyareaggregatedintoonesingleoperatingsegment.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
34.Significantaccountingjudgementsandestimates
Thepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenue,expenses,assetsandliabilities,andtheiraccompanyingdisclosures,andthedisclosureofcontingentliabilitiesatthebalancesheetdate.Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountsoftheassetsorliabilitiesaffectedinthefuture.JudgementsIntheprocessofapplyingtheGroup’saccountingpolicies,managementhasmadethefollowingjudgements,whichhavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements:
Operatingleases–aslessorTheGroupsignedleasecontractsforinvestmentproperties.TheGroupconsiderstheseleasesasoperatingleasesbecauseaccordingtotheleasecontractterms,theGroupreservesallsignificantrisksandrewardsofownershipoftheproperties.BusinessmodelTheclassificationoffinancialassetsatinitialrecognitionisdependentontheGroup’sbusinessmodelformanagingtheassets.FactorsconsideredbytheGroupinjudgingthebusinessmodelincludeenterprisevaluation,themethodofreportingtheresultsoffinancialassetstokeymanagementmembers,risksaffectingtheresultsoffinancialassetsandthemethodformanagingsuchrisks,aswellastheformofremunerationreceivedbythemanagementpersonnelofthebusinessesconcerned.Inassessingwhetherthebusinessmodelisaimedatreceivingcontractcashflows,theGroupisrequiredtoanalyseandexercisejudgmentinrespectofthereasons,timing,frequencyandvaluesofanydisposalspriortomaturity.ContractualcashflowcharacteristicsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristics,andthejudgementsonwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,includingwhenassessingthemodificationofthetimevalueofmoney,thejudgementonwhetherthereisanysignificantdifferencefromthebenchmarkcashflowandwhetherthefairvalueoftheprepaymentfeaturesisinsignificantforfinancialassetswithprepaymentfeatures,etc.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
34.Significantaccountingjudgementsandestimates(Continued)
EstimationuncertaintyThekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyattheendofthereportingperiodthatmaycausematerialadjustmenttothecarryingamountsofassetsandliabilitiesarediscussedbelow.ImpairmentoffinancialinstrumentsTheGroupusestheexpectedcreditlossmodeltoassesstheimpairmentoffinancialinstruments.TheGroupisrequiredtoperformsignificantjudgementandestimationandtakeintoaccountallreasonableandsupportableinformation,includingforward-lookinginformation.Whenmakingsuchjudgementsandestimates,theGroupinferstheexpectedchangesinthedebtor'screditriskbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisksandotherfactors.Thedifferentestimatesmayimpacttheimpairmentassessment,andtheprovisionforimpairmentmayalsonotberepresentativeoftheactualimpairmentlossinthefuture.Impairmentofnon-currentassetsotherthanfinancialassets(excludinggoodwill)TheGroupassesseswhetherthereareanyindicatorsofimpairmentfornon-currentassetsotherthanfinancialassetsatthedateofstatementoffinancialposition.Intangibleassetswithindefiniteusefullivesaretestedforimpairmentannuallyandatothertimeswhensuchanindicatorexists.Othernon-currentassetsotherthanfinancialassetsaretestedforimpairmentwhenthereareindicatorsthatthecarryingamountsmaynotberecoverable.Animpairmentexistswhenthecarryingvalueofanassetorassetgroupexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscoststosellanditspresentvalueoffuturecashflows.Thecalculationofthefairvaluelesscoststosellisbasedonavailabledatafrombindingsalestransactionsinanarm’slengthtransactionofsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheasset.Whenvalue-in-usecalculationsareundertaken,managementmustestimatetheexpectedfuturecashflowsfromtheassetorassetgroupandchooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.RefertoNoteV(12),(13),(14),(15),(16).ImpairmentofgoodwillGoodwillistestedforimpairmentatleastattheendofeachyear.Forthepurposeofimpairmenttesting,thepresentvalueoffuturecashflows,whicharegeneratedfromassetgroupsorsetsofassetgroupsconsideredtogetherwithallocatedgoodwill,isestimated.TheGroupestimatesthepresentvalueoffuturecashflowsfromassetgroupsorsetsofassetgroupsbyforecastingtherelatedcashflowsandselectingasuitablediscountrate.RefertoNoteV(17).DeferredtaxassetsTotheextentthatitisprobablethattherearesufficienttaxableprofitstooffsetthedeductiblelosses,deferredtaxassetsshallberecognisedforallunuseddeductiblelosses.Substantialmanagement’sjudgementsregardingthetimingandamountoffuturetaxableprofitareneededwhenestimatingtheamountofdeferredtaxassets.Fairvalueofnon-listedequityinvestmentsNon-listedequityinvestmentsarevaluedasexpectedfuturecashflowsbasedonthecurrentdiscountrateofotherfinancialinstrumentswithsimilarcontractualtermsandriskcharacteristics.ThisrequirestheGrouptoestimatefuturecashflows,creditrisks,fluctuationsanddiscountratesandisthereforeuncertain.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
34.Significantaccountingjudgementsandestimates(Continued)
Estimationuncertainty(Continued)RewardpointsTheGroupconsiderstheobservableseparatesellingpriceoftheredeemablefreeordiscountedgoods,theprobabilityofredeemingandalltherelatedinformation,afterwhichestimatesareasonablerewardpointsseparatesellingprice.Whenestimatingtheprobabilityofredeeming,theGroupbasesonhistoricaldata,currentdataandtakesintoconsiderationfuturechangeoftheclient,alsomarkettrendsandotherfactors.TheGroupre-evaluatestheseparatesellingpriceofrewardpointsatleastonceeverybalancesheetdate,andallocatesittotherewardpointstransactionpricebasedontheresult.ReturnclausesTheGroupreasonablyestimatesthereturnrateforcontractgroupswithsimilarcharacteristicsaccordingtothehistoricalreturnrate,currentconditionsofreturn,thechangeofcustomersandmarkets.TheGroupatleastreassessesthereturnrateateverybalancesheetdateanddeterminesreturnpayablesandcostofreturnreceivables.WarrantyTheGroupmakesreasonableestimatesonwarrantyfeeratesinrespectofcontractgroupswithsimilarcharacteristicsbasedonthehistoricaldataandcurrentconditionsofwarranty,takingintoconsiderationallrelevantinformationsuchasproductimprovementsandmarketchanges,amongothers.TheGroupreassessesthewarrantyfeeratesatleastannuallyateachbalancesheetdateanddeterminesitsestimatedliabilitiesbasedonthereassessedwarrantyfeerates.EvaluatinglimitationsofvariableconsiderationWhenestimatingvariableconsideration,theGroupconsidersallthereasonableinformationobtained,includinghistoricalinformation,currentinformationandforecastedinformation,andalsoestimatesallthepossibleconsiderationamountandpossibilitywithinareasonablerange.Forcontractsthatarelikelytohavemultipledifferentoutcomes,theGroupestimatestheconsiderationamountbasedontheexpectedvaluemethod.Forcontractswithonlytwopossibleoutcomes,theGroupestimatestheconsiderationamountbasedonthemostlikelyoutcome.Theestimatedamountofvariableconsiderationwillbeincludedinthetransactionpriceonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.TheGroupre-evaluatestheamountofvariableconsiderationoneverybalancesheetdate,includingre-evaluatingwhethertheestimationsusedarelimited,toreflectchangeswhichoccurredinthefinancialstatementperiod.Lessee’sincrementalborrowingrateIftheinterestrateimplicitintheleasecannotbereadilydetermined,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsdiscountedusingthelessee’sincrementalborrowingrate.Accordingtotheeconomicenvironment,theGrouptakestheobservableinterestrateasthereferencebasisfordeterminingtheincrementalborrowingrate,thenadjuststheobservableinterestratebasedonitsowncircumstances,underlyingassets,leasetermsandamountsofleaseliabilitiestodeterminetheapplicableincrementalborrowingrate.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates
ChangesinaccountingpoliciesTheNewLeasesStandardIn2018,theMOFissuedrevisedAccountingStandardforBusinessEnterprisesNo.21–Leases(the“NewLeasesStandard”).TheNewLeasesStandardintroducesasinglemodelsimilartothecurrentaccountingtreatmentoffinanceleases,requiringthelessortorecogniseright-of-useassetsandleaseliabilitiesforalltheleases,exceptforshort-termleasesandleasesoflow-valueassets,andrecognisedepreciationandinterestexpense,respectively.TheGrouphasaccountedforleasesundertherevisedleasesstandardsince1January2019.Asapracticalexpedient,theGroupdidnotreassesswhetheracontractis,orcontains,aleaseatthedateofinitialapplication.Accordingtothetransitionalrequirements,theGroupdidnotrestatecomparativeinformation.Instead,theGrouprecognisedthecumulativeeffectoftheinitialapplicationoftheNewLeasesStandardasanadjustmenttotheopeningbalanceofretainedearningsof2019atthedateofinitialapplication:
(1)theGrouprecognisedtheright-of-useassetandtheleaseliabilitiesattheamountofthe
carryingamountoftheleaseassetandleaseliabilityundertheoriginalstandards
applicableatthedateofinitialapplicationforleasespreviouslyclassifiedasfinance
leases;
(2)forleasespreviouslyclassifiedasoperatingleases,theGrouprecognisedleaseliabilities
basedonthepresentvalueoftheremainingleasepaymentsdiscountedattheincremental
borrowingrateatthedateofinitialapplication,andmeasuredright-of-useassetsbasedon
theamountequaltotheleaseliabilities,adjustedforanyrelatedprepaidandaccrued
leasepaymentspreviouslyrecognised;and
(3)theGroupappliedNoteIII(17)toperformitsimpairmenttestofright-of-useassetsand
accountfortheimpairment.
Foroperatingleasesoflow-valueassetsandoperatingleasesforwhichtheleasetermendswithin12monthsbeforeinitialapplication,theGroupappliedasimplifiedapproachanddidnotrecognisetheright-of-useassetsandleaseliabilities.Forleasespreviouslyclassifiedasoperatingleases,theGroupalsoappliedtheavailablepracticalexpedientswhereinit:
(1)appliedasinglediscountratetoaportfolioofleaseswithreasonablysimilar
characteristics;andexcludedtheinitialdirectcostsfromthemeasurementoftheright-of-
useassetatthedateofinitialapplication;
(2)usedhindsightindeterminingtheleasetermwherethecontractcontainedoptionsto
extendorterminatethelease;
(3)reliedonitsassessmentofwhetherleasesareonerousapplyingNoteIII(17)immediately
beforethedateofinitialapplicationasanalternativetoperforminganimpairmentreview,
andadjustedtheright-of-useassetsatthedateofinitialapplicationbytheamountofany
provisionforonerousleasesrecognisedinthebalancesheetimmediatelybeforethedate
ofinitialapplication;and
(4)accountedforthechangesinleasesbeforethedateofinitialapplicationbasedonthefinal
arrangementforsuchchanges.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)TheNewLeasesStandard(Continued)
Asanintermediatelessor,theGroupreassessedsubleasesthatwereclassifiedasoperating
leasesbeforeandareongoingatthedateofinitialapplication,todeterminewhethereach
subleaseshouldbeclassifiedasanoperatingleaseorafinanceleaseapplyingtheNew
LeasesStandard.Exceptforthese,theGroupdidnotadjusttheleasesforwhichitisan
intermediatelessor.
TheGroupreconciledtheoutstandingminimumleasepaymentsforoperatingleaseswithleaseliabilitiesincludedinthebalancesheetasat1January2019basedonthepresentvalueoftheminimumleasepaymentsdiscountedusingtheincrementalborrowingrateoftheGroupasthelesseeasat1January2019asfollows:
| Minimumleasepaymentsforoperatingleasesasat31December2018 | 1,873,246,508.02 |
| Less:Practicalexpedients | 81,858,324.15 |
| Including:Short-termleases | 62,717,394.74 |
| Leaseswithleasetermthatendswithin12months | 14,646,195.26 |
| Leasesoflow-valueassetswithleasetermthatendsinmorethan12months | 4,494,734.15 |
| Add:Paymentsforoptionalextensionperiodsnotrecognisedasat31December2018 | - |
| 1,791,388,183.87 | |
| Weightedaverageincrementalborrowingrate | 4.39% |
| Discountedoperatingleasecommitmentsasat1January2019 | 1,636,342,934.06 |
| Add:Financeleasepayablesasat31December2018 | 9,625,302.89 |
| Add(orless):Otheradjustments | - |
| Leaseliabilitiesasat1January2019 | 1,645,968,236.95 |
TheeffectofimplementationoftheNewLeasesStandardonthebalancesheetasat1January2019isasfollows:
Consolidatedbalancesheet
| Carryingamount | Undertheoriginalstandard | Effect |
| Assets | |||
| Right-of-useassets | 1,833,958,765.93 | - | 1,833,958,765.93 |
| Advancestosuppliers | 414,434,268.91 | 583,484,515.95 | (169,050,247.04) |
| Othernon-currentassets | 58,168,919.11 | 72,365,863.71 | (14,196,944.60) |
| Fixedassets | 594,067,973.91 | 607,933,827.67 | (13,865,853.76) |
| Intangibleassets | 318,693,082.72 | 319,207,126.15 | (514,043.43) |
| 3,219,323,010.58 | 1,582,991,333.48 | 1,636,331,677.10 |
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)TheNewLeasesStandard(Continued)TheeffectofimplementationoftheNewLeasesStandardonthebalancesheetasat1January2019isasfollows:(Continued)Consolidatedbalancesheet(Continued)
| Carryingamount | Undertheoriginalstandard | Effect |
| Liabilities | |||
| Leaseliabilities | 1,107,537,419.92 | - | 1,107,537,419.92 |
| Non-currentliabilitiesduewithinoneyear | 538,430,817.03 | 5,861,324.37 | 532,569,492.66 |
| Otherpayables | 1,528,413,333.33 | 1,528,424,590.29 | (11,256.96) |
| Long-termpayables | 800,000.00 | 4,563,978.52 | (3,763,978.52) |
| 3,175,181,570.28 | 1,538,849,893.18 | 1,636,331,677.10 |
TheCompany’sbalancesheet
| Carryingamount | Undertheoriginalstandard | Effect |
| Assets | |||
| Right-of-useassets | 6,827,192.24 | - | 6,827,192.24 |
| Advancestosuppliers | 4,757,318.65 | 4,760,182.00 | (2,863.35) |
| 11,584,510.89 | 4,760,182.00 | 6,824,328.89 |
| Carryingamount | Undertheoriginalstandard | Effect |
| Liabilities | |||
| Leaseliabilities | 6,038,239.60 | - | 6,038,239.60 |
| Non-currentliabilitiesduewithinoneyear | 786,089.29 | - | 786,089.29 |
| 6,824,328.89 | - | 6,824,328.89 |
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)TheNewLeasesStandard(Continued)TheeffectofimplementationoftheNewLeasesStandardonthefinancialstatementsfortheyearended31December2019isasfollows:
Consolidatedbalancesheet
| Carryingamount | Undertheoriginalstandard | Effect |
| Assets | |||
| Right-of-useassets | 1,955,461,133.01 | - | 1,955,461,133.01 |
| Advancestosuppliers | 384,882,547.24 | 615,222,683.69 | (230,340,136.45) |
| Othernon-currentassets | 77,354,970.39 | 100,466,171.39 | (23,111,201.00) |
| Fixedassets | 612,599,944.11 | 622,528,263.55 | (9,928,319.44) |
| Intangibleassets | 319,946,727.04 | 320,329,827.67 | (383,100.63) |
| Deferredtaxassets | 60,631,015.99 | 48,148,235.29 | 12,482,780.70 |
| 3,410,876,337.78 | 1,706,695,181.59 | 1,704,181,156.19 |
| Liabilities | |||
| Leaseliabilities | 1,182,407,085.08 | - | 1,182,407,085.08 |
| Non-currentliabilitiesduewithinoneyear | 601,427,093.62 | 35,174,327.51 | 566,252,766.11 |
| Otherpayables | 1,756,858,461.02 | 1,758,047,509.65 | (1,189,048.63) |
| Long-termpayables | 800,000.00 | 1,126,365.68 | (326,365.68) |
| 3,541,492,639.72 | 1,794,348,202.84 | 1,747,144,436.88 |
Consolidatedincomestatement
| Carryingamount | Undertheoriginalstandard | Effect |
| Operatingcosts | 46,292,408,840.53 | 46,293,105,089.37 | (696,248.84) |
| Sellingexpenses | 3,055,403,668.16 | 3,072,829,651.71 | (17,425,983.55) |
| Administrativeexpenses | 842,014,983.53 | 843,205,630.95 | (1,190,647.42) |
| Financecosts | 119,972,954.79 | 43,351,250.41 | 76,621,704.38 |
| Gainondisposalofassets(lossexpressedwithpositivevalue) | 2,551,175.02 | 688,411.84 | 1,862,763.18 |
| Incometaxes | 372,439,441.37 | 384,922,222.07 | (12,482,780.70) |
| 50,679,688,713.36 | 50,636,725,432.67 | 42,963,280.69 |
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)TheNewLeasesStandard(Continued)TheeffectofimplementationoftheNewLeasesStandardonthefinancialstatementsfortheyearended31December2019isasfollows:(Continued)TheCompany’sbalancesheet
| Carryingamount | Undertheoriginalstandard | Effect |
| Assets | |||
| Right-of-useassets | 6,217,504.50 | - | 6,217,504.50 |
| Advancestosuppliers | 7,996,243.28 | 8,029,735.59 | (33,492.31) |
| Deferredtaxassets | 9,327,850.53 | 9,265,861.07 | 61,989.46 |
| 23,541,598.31 | 17,295,596.66 | 6,246,001.65 |
| Liabilities | |||
| Leaseliabilities | 5,461,257.38 | - | 5,461,257.38 |
| Non-currentliabilitiesduewithinoneyear | 32,640,325.77 | 31,638,984.25 | 1,001,341.52 |
| 38,101,583.15 | 31,638,984.25 | 6,462,598.90 |
TheCompany’sincomestatement
| Carryingamount | Undertheoriginalstandard | Effect |
| Administrativeexpenses | 73,489,681.09 | 73,493,681.60 | (4,000.51) |
| Financecosts | (64,025,013.54) | (64,307,600.76) | 282,587.22 |
| Incometaxes | 14,503,442.87 | 14,565,432.33 | (61,989.46) |
| 23,968,110.42 | 23,751,513.17 | 216,597.25 |
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)TheNewLeasesStandard(Continued)Inaddition,thecashpaidbytheGroupforrepaymentoftheprincipalandinterestoftheleaseliabilityisincludedinthestatementofcashflowsascashoutflowsfromfinancingactivities,andthepaymentsforshort-termleasesandleasesoflow-valueassetsaccountedforusingthepracticalexpedientsandvariableleasepaymentsnotincludedinthemeasurementoftheleaseliabilityarestillincludedincashoutflowsfromoperatingactivities.ChangeinthereportingformatoffinancialstatementsTomeettherequirementsoftheNoticeonRevisingandIssuingFormatof2019FinancialStatementsforGeneralBusinessEnterprises(CaiKuai[2019]No.6)andtheNoticeonRevisingandIssuingFormatofConsolidatedFinancialStatements(2019edition)(CaiKuai[2019]No.16),inthebalancesheet,theamountpreviouslypresentedin“notesreceivableandaccountsreceivable”shallbepresentedseparatelyin“notesreceivable”and“accountsreceivable”;theamountpreviouslypresentedin“notespayableandaccountspayable”shallbepresentedseparatelyin“notespayable”and“accountspayable”;thenotesandreceivablesatfairvaluethroughothercomprehensiveincomepreviouslypresentedin“othercurrentassets”areseparatelypresentedin“receivablesfinancing”;the“interestreceivable”in“otherreceivables”ischangedtoreflectonlytheoutstandinginterestonfinancialinstrumentsthatexpiredandcanbecollectedatthebalancesheetdate(theinterestonthefinancialinstrumentaccruedusingtheeffectiveinterestmethodisincludedintheoutstandingamountofthecorrespondingfinancialinstrument);the“interestpayable”in“otherpayables”ischangedtoreflectonlytheoutstandinginterestonfinancialinstrumentsthatexpiredandshouldbepaidatthebalancesheetdate(theinterestonthefinancialinstrumentaccruedusingtheeffectiveinterestmethodareincludedintheoutstandingamountofthecorrespondingfinancialinstrument).Intheincomestatement,theamountpresentedin“incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost”of“investmentincome”includeprofitorlossincurredwhenderecognisingfinancialassetsmeasuredatamortisedcost.TheGrouphasretrospectivelyadjustedthecomparativeamountscorrespondingly.Thechangesinaccountingpolicieshavehadnoimpactonthenetprofitandequityintheconsolidatedandcompanyfinancialstatements.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)Thecumulativeeffectsoftheretrospectiveadjustmentscausedbytheabovechangesinaccountingpoliciesonthefinancialstatementsareasfollows:
TheGroup
2019
| Beforechanges | Changesinaccountingpolicies | Afterchanges | |
| Closingbalancefor2018 | EffectoftheNewLeasesStandard | Otherchangesinpresentationoffinancialstatements | Openingbalancefor2019 |
| Cashandbankbalances | 8,089,781,304.56 | - | 6,376,708.68 | 8,096,158,013.24 |
| Notesreceivable | - | - | 789,536,654.23 | 789,536,654.23 |
| Accountsreceivable | - | - | 9,336,861,647.92 | 9,336,861,647.92 |
| Receivablesfinancing | - | - | 567,775,275.40 | 567,775,275.40 |
| Notesreceivableandaccountsreceivable | 10,694,173,577.55 | - | (10,694,173,577.55) | - |
| Advancestosuppliers | 583,484,515.95 | (169,050,247.04) | - | 414,434,268.91 |
| Otherreceivables | 643,493,359.32 | - | (6,376,708.68) | 637,116,650.64 |
| Fixedassets | 607,933,827.67 | (13,865,853.76) | - | 594,067,973.91 |
| Intangibleassets | 319,207,126.15 | (514,043.43) | - | 318,693,082.72 |
| Right-of-useassets | - | 1,833,958,765.93 | - | 1,833,958,765.93 |
| Othernon-currentfinancialassets | 72,365,863.71 | (14,196,944.60) | - | 58,168,919.11 |
| Short-termborrowings | 2,597,652,702.43 | - | 10,973,397.39 | 2,608,626,099.82 |
| Notespayable | - | - | 3,416,755,681.80 | 3,416,755,681.80 |
| Accountspayable | - | - | 6,468,535,961.17 | 6,468,535,961.17 |
| Notespayableandaccountspayable | 9,885,291,642.97 | - | (9,885,291,642.97) | - |
| Otherpayables | 1,539,436,971.93 | (11,256.96) | (11,012,381.64) | 1,528,413,333.33 |
| Non-currentliabilitiesduewithinoneyear | 5,861,324.37 | 532,569,492.66 | - | 538,430,817.03 |
| Leaseliabilities | - | 1,107,537,419.92 | - | 1,107,537,419.92 |
| Long-termborrowings | 31,600,000.00 | - | 38,984.25 | 31,638,984.25 |
| Long-termpayables | 4,563,978.52 | (3,763,978.52) | - | 800,000.00 |
2018
| Beforechanges | Changesinaccountingpolicies | Afterchanges | |
| Closingbalancefor2018 | EffectoftheNewLeasesStandard | Otherchangesinpresentationoffinancialstatements | Openingbalancefor2019 |
| Financecosts | 112,862,739.12 | - | (61,372,718.53) | 51,490,020.59 |
| Investmentincome | 319,897,172.23 | - | (61,372,718.53) | 258,524,453.70 |
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
35.Changesinaccountingpoliciesandestimates(Continued)
Changesinaccountingpolicies(Continued)Thecumulativeeffectsoftheretrospectiveadjustmentscausedbytheabovechangesinaccountingpoliciesonthefinancialstatementsareasfollows:(Continued)TheCompany2019
| Beforechanges | Changesinaccountingpolicies | Afterchanges | |
| Closingbalancefor2018 | EffectoftheNewLeasesStandard | Otherchangesinpresentationoffinancialstatements | Closingbalancefor2018 |
| Cashandbankbalances | 1,817,654,598.01 | - | 3,697,083.33 | 1,821,351,681.34 |
| Notesreceivable | - | - | 34,154,774.75 | 34,154,774.75 |
| Accountsreceivable | - | - | 631,236,593.94 | 631,236,593.94 |
| Receivablesfinancing | - | - | 29,716,205.64 | 29,716,205.64 |
| Notesreceivableandaccountsreceivable | 695,107,574.33 | - | (695,107,574.33) | - |
| Advancestosuppliers | 4,760,182.00 | (2,863.35) | - | 4,757,318.65 |
| Otherreceivables | 1,541,980,883.50 | - | (3,697,083.33) | 1,538,283,800.17 |
| Right-of-useassets | - | 6,827,192.24 | - | 6,827,192.24 |
| Notespayable | - | - | 252,317,800.78 | 252,317,800.78 |
| Accountspayable | - | - | 442,049,241.22 | 442,049,241.22 |
| Notespayableandaccountspayable | 694,367,042.00 | - | (694,367,042.00) | - |
| Otherpayables | 1,481,817,856.56 | - | (38,984.25) | 1,481,778,872.31 |
| Non-currentliabilitiesduewithinoneyear | - | 786,089.29 | - | 786,089.29 |
| Leaseliabilities | - | 6,038,239.60 | - | 6,038,239.60 |
| Long-termborrowings | 31,600,000.00 | - | 38,984.25 | 31,638,984.25 |
| Beforechanges | Changesinaccountingpolicies | Afterchanges | |
| Closingbalancefor2018 | EffectoftheNewLeasesStandard | Otherchangesinpresentationoffinancialstatements | Openingbalancefor2019 |
| Financecosts | (42,814,941.43) | - | (1,688,557.15) | (44,503,498.58) |
| Investmentincome | 704,244,539.45 | - | (1,688,557.15) | 702,555,982.30 |
IVTaxation
1.Maincategoriesandratesoftaxes:
| Categories | Taxbase | Taxrate |
| Corporateincometax(“CIT”) | Taxableincome | 10%,15%,20%or25% |
| Value-addedtax(“VAT”) | Taxablevalueaddedamount(TaxpayableiscalculatedusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod) | 0%,3%,5%,6%,9%,10%,13%or16% |
| Citymaintenanceandconstructiontax | AmountofVATpaid | 5%or7% |
| Educationalsurcharge | AmountofVATpaid | 3% |
| Localeducationalsurcharge | AmountofVATpaid | 2% |
| IV | Taxation(Continued) |
| 2. | Taxpreferences(Continued) |
VNotestotheconsolidatedfinancialstatements
1.Cashandbankbalances
| 31December2019 | 31December2018 |
| Cashonhand | 5,077,406.65 | 5,587,191.18 | |
| Cashatbanks | 8,434,585,141.71 | 7,632,906,538.27 | |
| Cashandcashequivalents | 8,417,599,358.83 | 7,626,529,829.59 | |
| Undueinterestreceivable | 16,985,782.88 | 6,376,708.68 | |
| Othercashbalances | 442,672,297.43 | 457,664,283.79 | |
| Depositsforlettersofcredit | 124,806.00 | 4,191,246.00 | |
| Depositsforbankacceptancebills | 442,547,491.43 | 453,473,037.79 |
| 8,882,334,845.79 | 8,096,158,013.24 |
Currentdepositsearninterestattheratebasedoncurrentdepositinterestrates.Maturitiesofshort-termtimedepositsrangefrom1monthto6monthsdependingonthefundarrangementsoftheGroup,andthedepositsearninterestattherespectivedepositrates.Thematuritiesofbanknoticedepositsare7daysdependingonthefundarrangementoftheGroup,andthedepositsearninterestattherespectivedepositrates.
2.Notesreceivable
| 31December2019 | 31December2018 |
| Commercialacceptancebills | 793,301,688.64 | 789,536,654.23 |
At31December2019and2018,therewerenonotesreceivablethatwerepledged.
VNotestotheconsolidatedfinancialstatements(Continued)
2.Notesreceivable(Continued)
NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2019and31December2018areasfollows:
31December2019
| 31December2019 | 31December2018 | |||
| Derecognised | Notderecognised | Derecognised | Notderecognised | |
| Commercialacceptancebills | - | 64,038,348.12 | - | 170,314,843.11 |
Asat31December2019and31December2018,notesreceivablethatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydateareasfollows:
31December2019
| 31December2019 | 31December2018 |
| Commercialacceptancebills | 1,174,861.29 | - |
Thecreditperiodforaccountsreceivablenormallyrangesfrom0to90days.Accountsreceivableareinterest-free.Anaginganalysisofaccountsreceivableisasfollows:
| 31December2019 | 31December2018 |
| Within1year | 10,622,827,598.95 | 9,339,491,654.21 |
| 1to2years | 19,945,711.69 | 15,786,120.79 |
| 2to3years | 896,129.90 | 4,825,981.07 |
| Over3years | 14,941,871.10 | 16,279,326.59 |
| Less:Baddebtprovisionforaccountsreceivable | 40,629,418.12 | 39,521,434.74 |
| 10,617,981,893.52 | 9,336,861,647.92 |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Changesinprovisionforbaddebtsarepresentedasfollows:
| Openingbalance | Reversalofwrite-offinpreviousyears | Increasesintheyear | Increasesinmerger | Reversalintheyear | Writtenoffintheyear | Closingbalance | |
| 2019 | 39,521,434.74 | 22,080.00 | 25,098,772.50 | 56,980.49 | (20,246,309.59) | (3,823,540.02) | 40,629,418.12 |
| 2018 | 43,925,465.41 | 221,031.35 | 12,467,357.34 | - | (16,899,781.64) | (192,637.72) | 39,521,434.74 |
Thecarryingamountofaccountsreceivablethataffectedthechangesinprovisionthisyearisas
follows:
31December2019
| 31December2019 | ||||
| Carryingamount | Baddebtprovisions | |||
| Amount | Proportion | Amount | Proportion | |
| Itemsforwhichprovisionforbaddebtsisrecognisedseparately | 590,399,747.84 | 5.54% | (18,329,609.15) | 3.10% | ||
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 10,068,211,563.80 | 94.46% | (22,299,808.97) | 0.22% |
| 10,658,611,311.64 | 100.00% | (40,629,418.12) | 0.38% |
| 31December2018 | ||||
| Carryingamount | Baddebtprovisions | |||
| Amount | Proportion | Amount | Proportion | |
| Itemsforwhichprovisionforbaddebtsisrecognisedseparately | 595,919,487.29 | 6.36% | (16,766,679.23) | 2.81% | ||
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 8,780,463,595.37 | 93.64% | (22,754,755.51) | 0.26% |
| 9,376,383,082.66 | 100.00% | (39,521,434.74) | 0.42% |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
At31December2019,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | ExpectedCreditLossRate | Assessmentforimpairment |
| Receivableofmedicalinsurance | 425,784,659.32 | - | 0.00% | Thereceivableofmedicalinsurancehaslower-tierdefaultrisk. |
| ClientA | 11,559,178.29 | (11,559,178.29) | 100.00% | Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficultiesandrelatedtomultiplelawsuits,iswithlower-tierrecoverability. |
| ClientB | 2,447,976.74 | (2,447,976.74) | 100.00% | Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring. |
| ClientC | 2,365,253.03 | (2,365,253.03) | 100.00% | Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring. |
| Others | 148,242,680.46 | (1,957,201.09) | 1.32% | Partofthereceivabletakeslongerthanusualtorecover,andhasriskofrecoverability |
| 590,399,747.84 | (18,329,609.15) |
At31December2018,accountsreceivablethatwereindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | ExpectedCreditLossRate | Assessmentforimpairment |
| Receivableofmedicalinsurance | 380,933,117.06 | (605,476.95) | 0.16% | Thereceivableofmedicalinsurancehaslower-tierdefaultrisk. |
| ClientA | 11,559,178.29 | (11,559,178.29) | 100.00% | Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficultiesandrelatedtomultiplelawsuits,iswithlower-tierrecoverability. |
| Others | 203,427,191.94 | (4,602,023.99) | 2.26% | Partofthereceivabletakeslongerthanusualtorecover,andhasriskofrecoverability |
| 595,919,487.29 | (16,766,679.23) |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
TheaccountsreceivableforwhichtheGrouprecognisedprovisionforbaddebtsusingtheaginganalysismethodarepresentedasfollows:
31December2019
| 31December2019 | 31December2018 | |||||
| Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | |
| Within1year | 10,046,467,724.08 | 0.20% | (19,806,004.64) | 8,763,673,896.90 | 0.25% | (21,544,996.66) | |
| 1to2years | 18,859,269.14 | 10.47% | (1,974,732.42) | 10,195,222.35 | 4.83% | (492,440.38) | |
| 2to3years | 896,129.90 | 13.34% | (119,533.01) | 3,462,472.01 | 8.53% | (295,199.01) | |
| Over3years | 1,988,440.68 | 20.09% | (399,538.90) | 3,132,004.11 | 13.48% | (422,119.46) |
| 10,068,211,563.80 | (22,299,808.97) | 8,780,463,595.37 | (22,754,755.51) |
TheprovisionforbaddebtsamountedtoRMB25,098,772.50in2019(2018:RMB12,467,357.34),includingRMB20,246,309.59whichwasrecoveredorreversed(2018:RMB16,899,781.64).Importantrecoveredorreverseditemsofprovisionforindividuallyassessedbaddebtsin2019arelistedbelow:
Reasonforrecoverabilityor
reversal
| Reasonforrecoverabilityorreversal | Originalassessmentforimpairment | Recoveredorreversedamount | Methodofrecovery |
| ClientA | Amountreceived | Uncertaintyinrecovery | 167,280.00 | Amountreceived |
| ClientB | Amountreceived | Uncertaintyinrecovery | 140,801.62 | Amountreceived |
| ClientC | Amountreceived | Uncertaintyinrecovery | 117,446.10 | Amountreceived |
| ClientD | Amountreceived | Uncertaintyinrecovery | 99,886.22 | Amountreceived |
525,413.94Importantrecoveredorreverseditemsofprovisionforindividuallyassessedbaddebtsin2018arelistedbelow:
Importantrecoveredorreverseditemsofprovisionforindividuallyassessedbaddebtsin2018arelistedbelow:
Reasonforrecoverabilityor
reversal
| Reasonforrecoverabilityorreversal | Originalassessmentforimpairment | Recoveredorreversedamount | Methodofrecovery |
| ClientA | Amountreceived | Uncertaintyinrecovery | 4,083,065.20 | Amountreceived |
| ClientB | Amountreceived | Uncertaintyinrecovery | 93,140.50 | Amountreceived |
| ClientC | Amountreceived | Uncertaintyinrecovery | 54,698.00 | Amountreceived |
| ClientD | Amountreceived | Uncertaintyinrecovery | 54,437.96 | Amountreceived |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Accountsreceivablewrittenoffin2019areRMB3,823,540.02(2018:RMB192,637.72).Accountsreceivablewrittenoffin2019areanalysedbelow:
Accountsreceivablewrittenoffin2019areanalysedbelow:
Natureofthe
receivable
| Natureofthereceivable | Amount | Reason | Fulfiledwrite-offprocedures | Relatedpartytransactionornot |
| ClientA | Paymentforgoods | 793,588.14 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientB | Paymentforgoods | 506,604.84 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientC | Paymentforgoods | 280,324.00 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientD | Paymentforgoods | 276,000.00 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| Others | Paymentforgoods | 1,967,023.04 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
3,823,540.02Accountsreceivablewrittenoffin2018areanalysedbelow:
Accountsreceivablewrittenoffin2018areanalysedbelow:
Natureofthe
receivable
| Natureofthereceivable | Amount | Reason | Fulfiledwrite-offprocedures | Relatedpartytransactionornot |
| ClientA | Paymentforgoods | 120,418.94 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientB | Paymentforgoods | 43,646.94 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientC | Paymentforgoods | 28,571.84 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
In2019,theGroupfactoredasmallportionofaccountsreceivableatamortisedcosttofinancialinstitutions.TheamountofaccountsreceivablederecognisedwasRMB6,274,777,382.79(2018:RMB3,665,602,250.53),andtheamountoflossrecognisedthroughInvestmentincomewasRMB86,377,492.55(2018:RMB61,372,718.53).
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Asat31December2019,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:
Asat31December2019,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Top1Accountreceivable | 170,343,305.26 | (651,626.93) | 1.60% | |
| Top2Accountreceivable | 168,729,902.27 | (1,268,752.66) | 1.58% | |
| Top3Accountreceivable | 165,585,249.66 | (834,284.84) | 1.55% | |
| Top4Accountreceivable | 149,692,676.64 | (497,239.72) | 1.40% | |
| Top5Accountreceivable | 141,678,146.50 | (522,091.42) | 1.33% |
| 796,029,280.33 | (3,773,995.57) | 7.46% |
Asat31December2018,thetopfiveaccountsreceivablebycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Top1Accountreceivable | 153,684,242.23 | (151,473.45) | 1.64% | |
| Top2Accountreceivable | 150,595,649.56 | (1,204,596.60) | 1.61% | |
| Top3Accountreceivable | 138,844,133.79 | (75,576.22) | 1.48% | |
| Top4Accountreceivable | 136,286,804.49 | (265,259.53) | 1.45% | |
| Top5Accountreceivable | 130,575,790.77 | (56,042.86) | 1.39% |
| 709,986,620.84 | (1,752,948.66) | 7.57% |
VNotestotheconsolidatedfinancialstatements(Continued)
4.Receivablesfinancing
| 31December2019 | 31December2018 |
| Bankacceptancebills | 446,342,588.46 | 567,775,275.40 |
At31December2019and2018,therewerenoreceivablesfinancingthatwerepledged.
ReceivablesfinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2019and31December2018areasfollows:
31December2019
| 31December2019 | 31December2018 | |||
| Derecognised | NotDerecognised | Derecognised | NotDerecognised | |
| Bankacceptancebills | 2,280,123,957.94 | - | 1,273,262,524.19 | - |
Asat31December2019and31December2018,receivablesfinancingthatwasconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydateisasfollows:
31December2019
| 31December2019 | 31December2018 |
| Bankacceptancebills | - | 50,000.00 |
Theagingofadvancestosuppliersisanalyzedbelow:
31December2019
| 31December2019 | 1January2019 | 31December2018 | |||
| Amount | %oftotalbalance | Amount | %oftotalbalance | Amount | %oftotalbalance |
| Within1year | 383,626,398.63 | 99.67% | 411,094,093.16 | 99.19% | 580,144,340.20 | 99.43% |
| 1to2years | 244,213.07 | 0.06% | 873,351.85 | 0.21% | 873,351.85 | 0.15% |
| 2to3years | 815,319.09 | 0.21% | 2,466,823.90 | 0.60% | 2,466,823.90 | 0.42% |
| Over3years | 196,616.45 | 0.06% | - | 0.00% | - | 0.00% |
| 384,882,547.24 | 100.00% | 414,434,268.91 | 100.00% | 583,484,515.95 | 100.00% |
VNotestotheconsolidatedfinancialstatements(Continued)
5.Advancestosuppliers(Continued)
Asat31December2019,thetopfiveadvancestosuppliersbycustomeraresummarizedbelow:
Amount
| Amount | Proportionoftotalbalance |
| Totalamountoftopfiveadvancestosuppliers | 56,871,461.86 | 14.78% |
Asat31December2018,thetopfiveadvancestosuppliersbycustomeraresummarizedbelow:
Amount
| Amount | Proportionoftotalbalance |
| Totalamountoftopfiveadvancestosuppliers | 119,855,873.09 | 20.54% |
| 31December2019 | 31December2018 |
| Dividendreceivable | 834,914.61 | - | |
| Otherreceivables | 477,153,330.37 | 637,116,650.64 |
| 477,988,244.98 | 637,116,650.64 |
Dividendreceivable
| 31December2019 | 31December2018 |
| ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd(“ShanghaiDingqun”) | 834,914.61 | - |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
OtherreceivablesTheagingofotherreceivablesisanalysedbelow:
Theagingofotherreceivablesisanalysedbelow:
31December2019
| 31December2019 | 31December2018 |
| Within1year | 451,743,352.46 | 609,703,501.56 |
| 1to2years | 61,631,709.62 | 18,452,286.18 |
| 2to3years | 6,522,348.87 | 9,357,373.34 |
| Over3years | 21,196,047.56 | 19,525,443.28 |
| Less:Baddebtprovisionforotherreceivables | 63,940,128.14 | 19,921,953.72 |
| 477,153,330.37 | 637,116,650.64 |
Categoriesofotherreceivablesbynatureareasfollows:
31December2019
| 31December2019 | 31December2018 |
| Deposits | 273,189,294.54 | 278,455,623.30 |
| Receivableofpricereductioncompensationandpurchasingrebates | 67,585,688.47 | 99,668,799.22 |
| Receivableofthepharmaceuticalelectronictradingplatform | 49,597,763.58 | 83,826,127.02 |
| Entrustedborrowings | 45,360,333.35 | 44,000,000.00 |
| Pettycashadvancetoemployees | 11,591,921.79 | 12,439,613.27 |
| Receivableofequitytransactions | 8,980,000.00 | 8,980,000.00 |
| Receivableduefromrelatedparties | 3,786,279.26 | 8,119,399.79 |
| Others | 81,002,177.52 | 121,549,041.76 |
| Less:Baddebtprovisionforotherreceivables | 63,940,128.14 | 19,921,953.72 |
| 477,153,330.37 | 637,116,650.64 |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Changesinbaddebtprovisionforthe12-monthexpectedcreditlossesandlifetimeexpectedcreditlossesonotherreceivablesareasfollows:
2019
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
| Balanceat1January2019 | - | 2,989,960.03 | 16,931,993.69 | 19,921,953.72 |
| Balanceat1January2019duringtheperiod | - | - | - | - |
| --TransfertotheStage2 | - | - | - | - |
| --TransfertotheStage3 | - | - | - | - |
| --ReversetotheStage2 | - | - | - | - |
| --ReversetotheStage1 | - | - | - | - |
| Provisionsduringtheperiod | - | 4,735,357.64 | 45,405,997.63 | 50,141,355.27 |
| Reversalduringtheperiod | - | (909,367.44) | (920,960.13) | (1,830,327.57) |
| Transferoutduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | - | (4,333,603.88) | (4,333,603.88) |
| Additionduetocombination | - | 200.00 | - | 200.00 |
| Reversalofwrite-offinpreviousyears | - | 40,550.60 | - | 40,550.60 |
| Balanceat31December2019 | - | 6,856,700.83 | 57,083,427.31 | 63,940,128.14 |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
2018
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
| Balanceat1January2018 | - | 2,782,712.61 | 12,328,337.26 | 15,111,049.87 |
| Balanceat1January2018duringtheperiod | - | - | - | - |
| --TransfertotheStage2 | - | - | - | - |
| --TransfertotheStage3 | - | - | - | - |
| --ReversetotheStage2 | - | - | - | - |
| --ReversetotheStage1 | - | - | - | - |
| Provisionsduringtheperiod | - | 1,601,047.86 | 5,539,406.43 | 7,140,454.29 |
| Reversalduringtheperiod | - | (1,393,800.44) | (1,015,750.00) | (2,409,550.44) |
| Write-backduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | - | - | - |
| Additionduetocombination | - | - | 80,000.00 | 80,000.00 |
| Balanceat31December2018 | - | 2,989,960.03 | 16,931,993.69 | 19,921,953.72 |
Thebaddebtprovisionamountofotherreceivablesin2019wasRMB50,141,355.27(2018:RMB7,140,454.29),withtherecoveredorreversedamountofRMB1,830,327.57(2018:RMB2,409,550.44).Thewrite-offamountofotherreceivablesin2019wasRMB4,333,603.88(2018:nil).
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Asat31December2019,thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Nature
| Nature | Amount | Age | %oftotalamount | Provisionofbaddebts |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.(“ZhijunSuzhou”)(Note) | Entrustedborrowings | 45,360,333.35 | Within2years | 8.38% | 45,360,333.35 |
| GuangdongPharmaceuticalelectronictradingplatform | Pharmaceuticaltradingplatformrepaymentnotyetcleared | 35,328,767.60 | Within1year | 6.53% | - |
| TCM-IntegratedCancerCenterofSouthernMedicalUniversity | Depositofalogisticsextensionserviceproject | 20,000,000.00 | Within3years | 3.70% | - |
| ShenyangSocietyMedicalInsuranceManagementBureau | Medicalinsurancedeposit | 19,676,531.29 | Within1year | 3.64% | - |
| ChinaResourcesPharmaceuticalBusinessGroupCo.,Ltd | Pricereductioncompensation | 15,649,769.94 | Within1year | 2.89% | - |
| 136,015,402.18 | 25.14% | 45,360,333.35 |
Asat31December2018,thetop5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Nature
| Nature | Amount | Age | %oftotalamount | Provisionofbaddebts |
| GuangdongPharmaceuticalelectronictradingplatform | Pharmaceuticaltradingplatformrepaymentnotyetcleared | 83,826,127.02 | Within1year | 12.76% | - |
| ZhijunSuzhou | Entrustedborrowings | 45,846,618.96 | Within1years | 6.98% | - |
| TCM-IntegratedCancerCenterofSouthernMedicalUniversity | Depositofalogisticsextensionserviceproject | 30,000,000.00 | Within2years | 4.57% | - |
| AstraZeneca(Wuxi)TradingCo.,Ltd. | Pricereductioncompensation | 22,811,275.77 | Within1year | 3.47% | - |
| TaiyuanMedicalInsuranceManagementServiceCenter | MedicalInsuranceGuaranteeDeposit | 19,681,824.13 | Within1year | 3.00% | - |
| 202,165,845.88 | 30.78% | - |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Asat31December2019,theamountofgovernmentgrantsreceivableisanalysedbelow:
Grantsprogram
| Grantsprogram | Amount | Ageing | Estimatedcollectiontime,amountandbasis |
| KaramaySocialInsuranceAdministrationBureau | KaramayEmploymentPromotionAward | 15,128.72 | Within1year | Basedon“MeasuresofKaramayCityforemploymentpromotion”(Kerenshefa[2017]No.184),expectedtobefullyrecoveredinJune2020. |
Inventoriesbycategoryareanalysedbelow:
31December2019
| 31December2019 | 31December2018 | |||||
| Bookvalue | Provision | Netbookvalue | Bookvalue | Provision | Netbookvalue | |
| Rawmaterials | 645,627.66 | - | 645,627.66 | 1,410,012.28 | - | 1,410,012.28 | |
| Finishedgoods | 4,951,220,747.35 | (8,305,500.35) | 4,942,915,247.00 | 4,392,144,746.88 | (8,313,195.29) | 4,383,831,551.59 | |
| Workinprogress | 140,458.20 | - | 140,458.20 | 1,011,007.23 | - | 1,011,007.23 | |
| Lowcostconsumables | 3,723,258.67 | - | 3,723,258.67 | 3,083,371.09 | - | 3,083,371.09 |
| 4,955,730,091.88 | (8,305,500.35) | 4,947,424,591.53 | 4,397,649,137.48 | (8,313,195.29) | 4,389,335,942.19 |
Provisionforinventoriesisanalysedbelow:
| Backtransferofpreviousyears’write-off | Increases | Decreases | 31December2019 |
| 1January2019 | Current | Additionduetocombination | Reversal | Write-off |
| Finishedgoods | 8,313,195.29 | 5,356.03 | 4,362,375.48 | 139,294.62 | (3,110,765.80) | (1,403,955.27) | 8,305,500.35 |
| 1January2018 | Increases | Decreases | 31December2018 | |
| Reversal | Write-off | |||
| Finishedgoods | 6,840,110.55 | 5,422,984.90 | (2,678,379.54) | (1,271,520.62) | 8,313,195.29 |
In2019,duetothevaluerecoveryofpartialinventories,provisionforinventorieswasreversedbyRMB3,110,765.80(2018:RMB2,678,379.54);andduetothesalesofgoodsinstock,provisionforinventorieswaswrittenoffbyRMB1,403,955.27(2018:RMB1,271,520.62).
VNotestotheconsolidatedfinancialstatements(Continued)
8.Othercurrentassets
| 31December2019 | 31December2018 |
| VATtaxcredit | 101,367,670.10 | 94,312,573.34 | |
| CITtobededucted | 513,305.14 | 723,000.46 | |
| Others | 317,589.14 | 312,055.38 |
| 102,198,564.38 | 95,347,629.18 |
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments
2019
| Investee | 1January2019 | Changesintheyear | 31December2019 | Amountofprovisionforimpairment | |||||
| AdditionalInvestment | Profitorlossunderequitymethod | Changesinothercomprehensiveincome | Otherchangesinequity | Cashdividenddeclaredbyinvestee | Provisionforimpairment | ||||
| ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”).(a) | 265,316,653.68 | - | 87,216,213.59 | - | - | (58,063,500.00) | - | 294,469,367.27 | - |
| ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.(“ShanghaiBeiyi”)(b) | 11,029,918.10 | - | 987,426.88 | - | - | (2,129,400.00) | - | 9,887,944.98 | - |
| ShanghaiLiyiPharmacyCo.,Ltd.(“ShanghaiLiyi”)(c) | 955,428.23 | 83,611.65 | - | - | - | - | 1,039,039.88 | - | |
| ShanghaiRenbeiPharmacyCo.,Ltd.(“ShanghaiRenbei”)(d) | - | 1,800,000.00 | - | - | - | - | 1,800,000.00 | - | |
| DongyuanAccordPharmaceuticalChainCo.,Ltd.(“DongyuanAccord”)(e) | 396,638.32 | - | - | - | - | - | - | - | (396,638.32) |
| SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.(“GuangdongJienuo”)(f) | 6,802,156.19 | 1,740,000.00 | (2,088,476.23) | - | - | - | - | 6,453,679.96 | - |
| GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.(“GuangdongJianhui”)(g) | - | 2,000,000.00 | (145,352.19) | - | - | - | - | 1,854,647.81 | - |
| ZhijunSuzhou(h) | 23,379,018.92 | - | (21,521,739.40) | - | - | (1,857,279.52) | - | (1,857,279.52) | |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.(“ZhijunMedicine”)(i) | 355,353,196.15 | - | 106,436,143.29 | - | - | (61,210,764.76) | - | 400,578,574.68 | |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.(“ZhijunTrade”)(i) | 8,730,994.87 | - | 2,318,103.99 | - | - | (773,841.25) | - | 10,275,257.61 | - |
| SinopharmGroupZhijun(Shenzhen)PingShanPharmaceuticalCo.,Ltd.(“ZhijunPingshan”)(i) | 86,292,927.33 | - | 46,881,613.08 | - | - | (12,296,521.67) | - | 120,878,018.74 | - |
| ShanghaiShyndecPharmaceuticalCo.,Ltd,(“ShyndecPharma”)(i) | 1,098,566,852.51 | - | 111,498,302.56 | (133,366.19) | 42,022,530.06 | (16,714,220.15) | - | 1,235,240,098.79 | - |
| ShanghaiDingqun(j) | 23,966,640.12 | - | (493,944.35) | - | - | (834,914.61) | - | 22,637,781.16 | - |
| 1,880,790,424.42 | 5,540,000.00 | 331,171,902.87 | (133,366.19) | 42,022,530.06 | (152,023,162.44) | (1,857,279.52) | 2,105,114,410.88 | (2,253,917.84) |
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)
2018
| Investee | 1January2018 | Changesintheyear | 31December2018 | Amountofprovisionforimpairment | ||||
| AdditionalInvestment | Profitorlossunderequitymethod | Otherchangesinequity | Cashdividenddeclaredbyinvestee | Others | ||||
| MainLuckPharmaceutical.(a) | 239,046,738.14 | - | 79,054,915.54 | - | (52,785,000.00) | - | 265,316,653.68 | - |
| ShanghaiBeiyi(b) | 9,518,694.65 | - | 1,511,223.45 | - | - | - | 11,029,918.10 | - |
| ShanghaiLiyi(c) | 771,408.05 | - | 184,020.18 | - | - | - | 955,428.23 | - |
| DongyuanAccord(e) | 396,638.32 | - | - | - | - | - | - | (396,638.32) |
| GuangdongJienuo(f) | 8,502,884.50 | - | (1,700,728.31) | - | - | - | 6,802,156.19 | - |
| ZhijunSuzhou(h) | 46,199,728.91 | - | (22,820,709.99) | - | - | - | 23,379,018.92 | - |
| ZhijunMedicine(i) | 291,042,921.20 | - | 122,421,529.52 | - | (58,111,254.57) | - | 355,353,196.15 | |
| ZhijunTrade(i) | 7,676,142.69 | - | 1,719,647.21 | - | (664,795.03) | - | 8,730,994.87 | - |
| ZhijunPingshan(i) | 68,686,804.33 | - | 27,325,603.71 | - | (9,719,480.71) | - | 86,292,927.33 | - |
| ShyndecPharma(i) | 979,174,050.62 | - | 108,241,749.04 | 19,599,266.75 | (8,448,213.90) | - | 1,098,566,852.51 | - |
| ShanghaiDingqun(j) | - | 20,000,000.00 | 3,966,640.12 | - | - | - | 23,966,640.12 | - |
| 1,651,016,011.41 | 20,000,000.00 | 319,903,890.47 | 19,599,266.75 | (129,728,744.21) | - | 1,880,393,786.10 | (396,638.32) |
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)(a)On4July1990,theGroupjointlyestablishedMainLuckPharmaceuticalwithMercianKabushiki
KaishaandMainLifeCo.,Ltd.,subscribing35.19%,34.15%and30.66%ofshareholdings,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofMainLuckPharmaceuticalconsistedofsixdirectors,inwhichtwowereappointedbytheGroup,accountingfor33.33%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverMainLuckPharmaceutical,andthus,itwasconsideredasanassociateoftheGroup.(b)On26July1994,theGroupjointlyestablishedShanghaiBeiyiwithShanghaiBeiyi(Group)Co.,
Ltd.andeightnaturalpersonsincludingFuchunZhu,withthesharepercentagesbeing26%,26%and48%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiBeiyiconsistedofsevendirectors,inwhichtwowereappointedbytheGroup,accountingfor
28.57%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverShanghaiBeiyi,andthus,itwasconsideredasanassociateoftheGroup.(c)On25November2003,theGroupjointlyestablishedShanghaiLiyiwithShanghaiPudongDistrict
CentralHospitalandShanghaiLiyi,withthesharepercentagesbeing35%,35%and30%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiLiyiconsistedoffivedirectors,inwhichtwowereappointedbytheGroup,accountingfor40.00%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverShanghaiLiyi,andthus,itwasconsideredasanassociateoftheGroup.(d)On3March2019,theGroupacquired30%sharesofShanghaiRenbei.AccordingtotheArticles
ofAssociation,theboardofdirectorsofShanghaiRenbeiwascomposedofthreedirectors,oneofwhomwasappointedbytheGroup,accountingfor33.33%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverShanghaiRenbei,andthus,itisconsideredasanassociateoftheGroup.
(e)In2007,DongyuanAccord,anassociateoftheGroup,operatedinpoorconditionsanditsfuture
operationwouldbesignificantlyuncertain,sotheGroupmadeafullprovisionforimpairmentofthelong-termequityinvestmentonit.
(f)On23February2016,theGroupjointlyestablishedGuangdongJienuowithSinopharmJienuo
MedicalTreatmentServiceCo.,Ltd.andGuangzhouJinluoInvestmentDevelopmentCo.,Ltd.,withthesharepercentagesbeing29%,51%and20%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJienuowascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverGuangdongJienuo,andthusit,isconsideredasanassociateoftheGroup.On25July2019,theGroup,togetherwithcurrentshareholdersSinopharmJienuoMedicalTreatmentServiceCo.,Ltd.andFoshanJiejianchengfengMedicalEquipmentCo.,Ltd.,increasedthecapitalofSinopharmJienuoMedicalTreatmentServiceCo.,Ltd.by29%,51%and20%accordingtotheshareholdingratiorespectirely,andthetotalamountofincreasedcapitalwasRMB6,000thousand.
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)
(g)On23November2018,theGroupjointlyestablishedGuangdongJianhuiwithGuangdong
ConstructionEngineeringGroupCo.,Ltd.,SuixiPeople'sHospitalandGuangdongJiankeArchitecturalDesignInstituteCo.,Ltd.,withthesharepercentagesbeing10%,79.90%,10%and
0.10%,respectively.TheregisteredcapitalofthecompanywasRMB20,000thousand.On22March2019,theGroupcompletedtheinvestmentofRMB2,000thousand.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJianhuiwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverGuangdongJianhui,andthus,itisconsideredasanassociateoftheGroup.
(h)TheGroupdisposedofits67%equityinterestofZhijunSuzhouinApril2016.Afterthedisposal,the
Grouphelda33%equityinterestofZhijunSuzhou.AccordingtotheArticlesofAssociation,theboardofdirectorsofZhijunSuzhouwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Asaresult,theGrouphassignificantinfluenceoverZhijunSuzhou,andthus,itisconsideredasanassociateoftheGroup.In2019,onaccountofmismanagement,therewassignificantuncertaintyinthefutureoperationoftheGroup'saffiliatedenterpriseZhijunSuzhou.Thus,theGroupmadefullprovisionforimpairmentoflong-termequityinvestmentinZhijunSuzhou.
(i)TheGroupsubscribed15.56%ofnewissuedsharesofShyndecPharma,arelatedparty,bythe
transferringoftheproductiveassetsinPingshanbaseandits51%equityinterestofthreepharmaceuticalcompanies(ZhijunMedicines,ZhijunPharma&Trade,ZhijunPingshan)oftheGroupin2016,respectively.Afterthecompletionofthereorganization,ShyndecPharmaholdsa51%equityinterestofeachofthethreepharmaceuticalcompanies,andtheGroupholdsa49%equityinterestofeachofthethreepharmaceuticalcompanies,andtheyhavesignificantinfluenceoverthethreepharmaceuticalcompanies.Atthesametime,afterthecompletionofthereorganization,theGroupholdsa15.56%equityinterestofShyndecPharma.SinceShyndecPharmaacquiredthesharesofsubsidiarieswithshare-basedpaymentinpreviousyears,asat31December2019,theGrouphelda16.28%equityinterestofShyndecPharma.ShyndecPharmasetupaboardofdirectorsthatwasresponsiblefortheshareholders'meeting,withatotalofninemembers,amongwhich,onewasappointedbytheGroup.Eachdirectorshallrepresentonevoteforresolutionsoftheboard,accountingfor11.11%ofthevotingrights.TheGrouphassignificantinfluenceoverShyndecPharma.TheabovethreepharmaceuticalcompaniesandShyndecPharmaareconsideredasassociatesoftheGroup.
(j)OnMay2018,theGroupjointlyestablishedShanghaiDingqunwithNingboMeishanbondedport
areaQilingequityinvestmentcenterLP,subscribing2.53%and97.47%ofshareholdings,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiDingqunconsistedofthreedirectorsandoneofthemwasappointedbyourCompany.Eachdirectorshallrepresentonevoteontheboard’sdecisions,whichshallbeadoptediftheyarevotedforbyasimplemajorityofallthemembersoftheboard.Therefore,theGrouphassignificantinfluenceoverShanghaiDingqun,andthus,itisconsideredasanassociateoftheGroup.
VNotestotheconsolidatedfinancialstatements(Continued)
10.Otherequityinstrumentinvestment
2019
| Accumulatedchangesinfairvalueofothercomprehensiveincome | Fairvalue | Dividendincomeforthecurrentyear | Reasonsdesignatedtobemeasuredatfairvaluewithchangesincludedinothercomprehensiveincome | ||||
| Equityinstrumentsterminatedinthecurrentyear | Equityinstrumentsheldinthecurrentyear | ||||||
| SinopharmHealthOnlineCo.,Ltd. | 84,748,000.00 | 96,748,000.00 | - | - | Non-tradingequityinstrument | ||||
| SinopharmGuodaHubeiCo.,Ltd. | 3,751,000.00 | 4,751,000.00 | - | - | Non-tradingequityinstrument | ||||
| HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd. | 138,000.00 | 453,000.00 | - | - | Non-tradingequityinstrument | ||||
| ShanghaiGuodaShuguangPharmacyCo.,Ltd | 8,094,240.00 | 8,365,000.00 | - | 50,000.00 | Non-tradingequityinstrument | ||||
| ShanghaiGuorenPharmacyCo.,Ltd. | 5,604,000.00 | 5,704,000.00 | - | 421,386.60 | Non-tradingequityinstrument |
| 102,335,240.00 | 116,021,000.00 | - | 471,386.60 |
VNotestotheconsolidatedfinancialstatements(Continued)
10.Otherequityinstrumentinvestment(Continued)
2018
| Accumulatedchangesinfairvalueofothercomprehensiveincome | Fairvalue | Dividendincomeforthecurrentyear | Reasonsdesignatedtobemeasuredatfairvaluewithchangesincludedinothercomprehensiveincome | ||||||
| Equityinstrumentsterminatedinthecurrentyear | Equityinstrumentsheldinthecurrentyear | ||||||||
| SinopharmHealthOnlineCo.,Ltd. | - | 12,000,000.00 | - | - | Non-tradingequityinstrument | ||||
| SinopharmGuodaHubeiCo.,Ltd. | - | 1,000,000.00 | - | - | Non-tradingequityinstrument | ||||
| HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd. | - | 315,000.00 | - | 31,500.00 | Non-tradingequityinstrument | ||||
| ShanghaiGuodaShuguangPharmacyCo.,Ltd | - | 270,760.00 | - | 50,000.00 | Non-tradingequityinstrument | ||||
| ShanghaiGuorenPharmacyCo.,Ltd. | - | 100,000.00 | - | 437,919.36 | Non-tradingequityinstrument | ||||
| - | 13,685,760.00 | - | 519,419.36 |
VNotestotheconsolidatedfinancialstatements(Continued)
11.Othernon-currentfinancialassets
| 31December2019 | 31December2018 |
| Financialassetsatfairvaluethroughprofitorloss | 140,000,000.00 | 140,000,000.00 |
Asat31December2019,thebalanceofothernon-currentfinancialassetisthefairvaluefortheSinopharmZhongjinmedicalindustryfund(“Industryfund”)thattheCompanyhadsubscribed.Atthe21stMeetingofthe7thboardofdirectorswhichheldon6January2017,theCompanydeliberatedandpassedtheproposaloninvestmentsubscriptionoftheIndustryfundandrelatedpartytransactionofthecompany.ThetotalinvestmentwhichamountedtoRMB200million,willbepaidby3payments.In2017,theCompanymadethefirstpaymentintheamountofRMB60million.However,asof31December2017,thefundhadneitherobtainedalltherelatedlicensesandapprovaldocumentations,norstartedoperating,therefore,thefirstpaymentamountingtoRMB60millionwasdesignatedasothernon-currentasset.In2018,theCompanymadethesecondpaymentintheamountofRMB80million.Asat31December2019,theCompanyhasmadepaymentsaccumulatedtoRMB140million.Theindustryfundhasobtainedalltherelatedlicensesandapprovaldocumentationsin2018,andalsostartedoperating.SincethecashflowsobtainedbytheCompanyfromtheinvestmentofthefundincludesboththecontractualcashflowssgeneratedbythebasicassetsduringtheinvestmentperiodandthecashflowsgeneratedbythedisposalofbasicassets,whichdoesnotmeettherequirementthatthecontractualcashflowsgeneratedbythefinancialassetsonaspecificdateshouldonlyincludethepaymentoftheprincipalandtheinterestbasedontheoutstandingprincipalamount.TheCompanyclassifiedtheindustrialfundinvestmentassetsasfinancialassetsmeasuredatfairvaluethroughprofitorloss,whicharepresentedasothernon-currentfinancialassets.
VNotestotheconsolidatedfinancialstatements(Continued)
12.Investmentproperties
Subsequentmeasurementunderthecostmodel:
2019
| Buildingsandconstructions | Landuserights | Total |
| Originalcost | ||||
| Openingbalance | 242,555,189.91 | 22,719,102.03 | 265,274,291.94 | |
| Purchase | - | - | - | |
| Transferfromfixedassets | 1,255,443.18 | - | 1,255,443.18 | |
| Transfertointangibleassets | - | - | - | |
| Transfertofixedassets | (200,000.00) | - | (200,000.00) |
| Closingbalance | 243,610,633.09 | 22,719,102.03 | 266,329,735.12 |
| Accumulateddepreciationandamortization | ||||
| Openingbalance | (111,131,166.21) | (7,948,629.76) | (119,079,795.97) | |
| Provision | (6,473,856.29) | (239,943.63) | (6,713,799.92) | |
| Transferfromfixedassets | (395,846.48) | - | (395,846.48) | |
| Transfertointangibleassets | - | - | - | |
| Transfertofixedassets | 60,065.55 | - | 60,065.55 |
| Closingbalance | (117,940,803.43) | (8,188,573.39) | (126,129,376.82) |
| Provisionforimpairment | ||||
| Openingbalance | (1,300,000.00) | - | (1,300,000.00) | |
| Closingbalance | (1,300,000.00) | - | (1,300,000.00) |
| Carryingamount | ||||
| Atendofyear | 124,369,829.66 | 14,530,528.64 | 138,900,358.30 | |
| Atbeginningofyear | 130,124,023.70 | 14,770,472.27 | 144,894,495.97 |
VNotestotheconsolidatedfinancialstatements(Continued)
12.Investmentproperties(Continued)
2018
| Buildingsandconstructions | Landuserights | Total | ||
| Originalcost | ||||
| Openingbalance | 245,932,518.64 | 23,370,084.72 | 269,302,603.36 | |
| Purchase | 45,481.13 | - | 45,481.13 | |
| Transferfromfixedassets | 5,087,242.78 | - | 5,087,242.78 | |
| Transfertointangibleassets | - | (650,982.69) | (650,982.69) | |
| Transfertofixedassets | (8,510,052.64) | - | (8,510,052.64) |
| Closingbalance | 242,555,189.91 | 22,719,102.03 | 265,274,291.94 |
| Accumulateddepreciationandamortization | ||||
| Openingbalance | (106,139,314.25) | (8,184,950.00) | (114,324,264.25) | |
| Provision | (7,035,240.17) | (75,098.69) | (7,110,338.86) | |
| Transferfromfixedassets | (1,480,401.05) | - | (1,480,401.05) | |
| Transfertointangibleassets | - | 311,418.93 | 311,418.93 | |
| Transfertofixedassets | 3,523,789.26 | - | 3,523,789.26 |
| Closingbalance | (111,131,166.21) | (7,948,629.76) | (119,079,795.97) |
| Provisionforimpairment | ||||
| Openingbalance | (1,300,000.00) | - | (1,300,000.00) | |
| Closingbalance | (1,300,000.00) | - | (1,300,000.00) |
| Carryingamount | ||||
| Atendofyear | 130,124,023.70 | 14,770,472.27 | 144,894,495.97 | |
| Atbeginningofyear | 138,493,204.39 | 15,185,134.72 | 153,678,339.11 |
VNotestotheconsolidatedfinancialstatements(Continued)
12.Investmentproperties(Continued)
During2019,depreciationandamortizationofinvestmentpropertieswereRMB6,713,799.92(2018:
RMB7,110,338.86).During2019,propertieswithacarryingamountofRMB859,596.70(originalvalue:
RMB1,255,443.18,accumulateddepreciation:RMB395,846.48)wereleasedouttoathirdpartyintheformofoperatingleases.Sincethedateofchangeinpurpose,andtheyhavebeentransferredfromfixedassetstoinvestmentproperties.During2019,apropertywithacarryingamountofRMB139,934.45(originalvalue:RMB200,000.00,accumulateddepreciation:RMB60,065.55)wastransferredtoanowner-occupiedproperty.Fromthedateoftransfer,thepropertywasreclassifiedasfixedassets.Asat31December2019,therewerenoinvestmentpropertiesofwhichthecertificatesoftitlehavenotbeenobtained.
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets
| 31December2019 | 1January2019 | 31December2018 |
| Fixedassets | 612,599,944.11 | 594,067,973.91 | 607,933,827.67 | ||
| Disposaloffixedassets | - | - | - |
| 612,599,944.11 | 594,067,973.91 | 607,933,827.67 |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
| 2019 | ||||||
| Buildings | Machineryandequipment | MotorVehicles | Otherequipment | Leaseholdimprovements | 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 | 285,469.52 | 47,195,352.32 | 12,429,062.40 | 25,457,250.85 | 33,499,629.02 | 118,866,764.11 |
| Transferfromconstructioninprogress | - | 8,769,821.87 | - | 878,820.54 | - | 9,648,642.41 |
| Transferfrominvestmentproperties | 200,000.00 | - | - | - | - | 200,000.00 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | 196,365.43 | 365,001.36 | 322,978.10 | 608,679.42 | 1,493,024.31 |
| Transfertoinvestmentproperties | (1,255,443.18) | - | - | - | - | (1,255,443.18) |
| Disposalofsubsidiaries | - | - | (305,010.00) | (298,683.01) | (124,535.84) | (728,228.85) |
| Disposalorretirement | (3,842,383.00) | (2,628,608.89) | (15,067,365.95) | (6,001,398.49) | (14,065,013.84) | (41,604,770.17) |
| Closingbalance | 485,048,912.16 | 238,977,034.82 | 87,034,987.94 | 314,934,870.88 | 74,580,323.19 | 1,200,576,128.99 |
| Accumulateddepreciation | ||||||
| Openingbalance | (164,477,441.12) | (85,085,743.31) | (59,523,264.14) | (173,741,971.45) | (38,364,970.83) | (519,888,166.45) |
| Provision | (15,582,180.14) | (30,506,506.49) | (8,239,110.97) | (23,191,050.44) | (22,011,784.80) | (99,530,632.84) |
| Transferfrominvestmentproperties | (60,065.55) | - | - | - | - | (60,065.55) |
| Transfertoinvestmentproperties | 395,846.48 | - | - | - | - | 395,846.48 |
| Recoveredfromdisposalofsubsidiaries | - | - | 298,484.02 | 136,696.63 | 52,796.55 | 487,977.20 |
| Disposalorretirement | 182,520.72 | 2,154,833.53 | 11,185,794.58 | 4,445,889.85 | 12,649,817.60 | 30,618,856.28 |
| Closingbalance | (179,541,319.61) | (113,437,414.27) | (56,278,096.51) | (191,045,213.01) | (47,674,141.48) | (587,976,184.88) |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
| 2019(Continued) | ||||||
| Buildings | Machineryandequipment | MotorVehicles | Otherequipment | Leaseholdimprovements | Total |
| Provisionforimpairment | ||||||
| Openingbalance | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - |
| Carryingamount | ||||||
| Atendofyear | 305,507,592.55 | 125,539,620.55 | 30,756,891.43 | 123,889,657.87 | 26,906,181.71 | 612,599,944.11 |
| Atbeginningofyear | 325,183,827.70 | 100,358,362.78 | 30,090,035.99 | 122,139,153.84 | 16,296,593.60 | 594,067,973.91 |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
| 2018 | ||||||
| Buildings | Machineryandequipment | MotorVehicles | Otherequipment | Leaseholdimprovements | Total | |
| Originalcost | ||||||
| Openingbalance | 456,161,611.21 | 183,752,571.14 | 87,999,790.56 | 259,281,585.41 | 30,111,198.47 | 1,017,306,756.79 |
| Purchase | 33,284,634.30 | 23,347,438.62 | 10,265,993.33 | 41,281,602.46 | 24,790,021.29 | 132,969,690.00 |
| Transferfromconstructioninprogress | 416,909.49 | 3,060,420.86 | - | 2,286,152.37 | 6,595,411.97 | 12,358,894.69 |
| Transferfrominvestmentproperties | 8,510,052.64 | - | - | - | - | 8,510,052.64 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | - | 102,931.29 | 99,584.93 | 1,250.05 | 203,766.27 |
| Transfertoinvestmentproperties | (5,087,242.78) | - | - | - | - | (5,087,242.78) |
| Disposalofsubsidiaries | - | - | (151,443.00) | - | (244,344.76) | (395,787.76) |
| Disposalorretirement | (3,624,696.04) | (2,705,694.05) | (8,603,972.05) | (5,656,536.47) | (6,591,972.59) | (27,182,871.20) |
| Closingbalance | 489,661,268.82 | 207,454,736.57 | 89,613,300.13 | 297,292,388.70 | 54,661,564.43 | 1,138,683,258.65 |
| Accumulateddepreciation | ||||||
| Openingbalance | (149,119,755.22) | (73,601,067.33) | (59,221,772.87) | (154,689,144.23) | (28,964,583.12) | (465,596,322.77) |
| Provision | (15,341,234.41) | (22,747,402.07) | (7,596,679.69) | (23,835,198.48) | (15,155,803.18) | (84,676,317.83) |
| Transferfrominvestmentproperties | (3,523,789.26) | - | - | - | - | (3,523,789.26) |
| Transfertoinvestmentproperties | 1,480,401.05 | - | - | - | - | 1,480,401.05 |
| - | - | 151,443.00 | 3,826.90 | 235,829.86 | 391,099.76 | |
| Disposalorretirement | 2,026,936.72 | 1,706,685.96 | 7,143,745.42 | 4,778,544.36 | 5,519,585.61 | 21,175,498.07 |
| Closingbalance | (164,477,441.12) | (94,641,783.44) | (59,523,264.14) | (173,741,971.45) | (38,364,970.83) | (530,749,430.98) |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
| 2018(Continued) | ||||||
| Buildings | Machineryandequipment | MotorVehicles | Otherequipment | Leaseholdimprovements | Total |
| Provisionforimpairment | ||||||
| Openingbalance | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - |
| Carryingamount | ||||||
| Atendofyear | 325,183,827.70 | 112,812,953.13 | 30,090,035.99 | 123,550,417.25 | 16,296,593.60 | 607,933,827.67 |
| Atbeginningofyear | 307,041,855.99 | 110,151,503.81 | 28,778,017.69 | 104,592,441.18 | 1,146,615.35 | 551,710,434.02 |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Fixedassets(Continued)
Fixedassetsheldunderfinanceleasesarepresentedasfollows:
| 2018 | ||||
| Originalcost | Accumulateddepreciation | Provisionforimpairment | Carryingamount |
| Machinery | 22,010,632.48 | (9,556,042.13) | - | 12,454,590.35 |
| Otherequipment | 2,716,485.81 | (1,305,222.40) | - | 1,411,263.41 |
| 24,727,118.29 | (10,861,264.53) | - | 13,865,853.76 |
Asat31December2019and31December2018,theGrouphasnotownedanyfixedassetsforoperatingleases.Asat31December2019,thefixedassetsfallingtoaccomplishcertificationoftitlearepresentedasfollows:
| Bookvalue | Reasonfornotobtainingcertificationoftitle |
| Housesandbuildings | 28,356,440.00 | Asat31December2019,theCompanyhasnotyetobtainedthecertificationoftitleforNo.13JingxingNorthStreet,TiexiDistrict,Shenyang.Thetransferor,theState-ownedAssetsSupervisionandAdministrationCommission,wasstillprocessingthecaseandhadprovidedarelevantnotification. |
Asat31December2019and31December2018,therewerenofixedassetsthatweretemporarilyidle.
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress
| 31December2019 | 31December2018 |
| Constructioninprogress | 31,582,575.84 | 36,412,614.61 |
| 31December2019 | 31December2018 | ||||
| Carryingbalance | Impairment | Carryingamount | Carryingbalance | Impairment | Carryingamount |
| Warehouseimprovementproject | 1,232,957.94 | - | 1,232,957.94 | 806,272.40 | - | 806,272.40 |
| Newofficebuildingproject | 110,090.53 | - | 110,090.53 | 188,251.26 | - | 188,251.26 |
| Supplychainextensionproject | 8,081,340.80 | - | 8,081,340.80 | 12,617,953.89 | - | 12,617,953.89 |
| Softwareproject | 13,197,683.52 | - | 13,197,683.52 | 12,930,498.53 | - | 12,930,498.53 |
| Otherprojects | 8,960,503.05 | - | 8,960,503.05 | 9,869,638.53 | - | 9,869,638.53 |
| 31,582,575.84 | - | 31,582,575.84 | 36,412,614.61 | - | 36,412,614.61 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress(Continued)
Changesofsignificantconstructioninprogressin2019arepresentedasfollows:
| Projectname | Atbeginningoftheyear | Increase | Decrease | Atendofyear | Sourceoffunds | Proportionofinvestmenttobudget(%) | ||||
| Transferredtofixedassets | Transferredtointangibleassets | Transferredtolongtermprepaidexpense | Other | |||||||
| Warehouseimprovementproject | 806,272.40 | 3,859,186.68 | (1,143,477.76) | - | (2,289,023.38) | - | 1,232,957.94 | Self-raisedfunds | 67.37 | |
| Newofficebuildingproject | 188,251.26 | 110,090.53 | - | - | (188,251.26) | - | 110,090.53 | Self-raisedfunds | 43.33 | |
| Supplychainextensionproject | 12,617,953.89 | 8,728,170.28 | (8,459,732.15) | (4,245,282.90) | - | (559,768.32) | 8,081,340.80 | Self-raisedfunds | 71.99 | |
| Softwareproject | 12,930,498.53 | 13,216,765.17 | (45,432.50) | (12,904,147.68) | - | - | 13,197,683.52 | Self-raisedfunds | 99.98 | |
| Otherconstructionprojects | 9,869,638.53 | 446,074.08 | - | - | (1,355,209.56) | - | 8,960,503.05 | Self-raisedfunds | 5.37 |
| 36,412,614.61 | 26,360,286.74 | (9,648,642.41) | (17,149,430.58) | (3,832,484.20) | (559,768.32) | 31,582,575.84 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress(Continued)
Changesofsignificantconstructioninprogressin2019arepresentedasfollows:（Continued）Projectname
| Projectname | Budget | Progress(%) | Accumulatedamountofinterestcapitalized | Including:interestcapitalizedincurrentyear | Capitalizationrate(%) |
| Warehouseimprovementproject | 7,008,129.53 | 67.37 | - | - | - |
| Newofficebuildingproject | 688,251.26 | 43.33 | - | - | - |
| Supplychainextensionproject | 30,933,538.69 | 71.99 | - | - | - |
| Softwareproject | 26,151,831.20 | 99.98 | - | - | - |
| Otherconstructionprojects | 206,728,926.07 | 5.37 | - | - | - |
| - | - |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress(Continued)
Changesofsignificantconstructioninprogressin2018arepresentedasfollows:
| Projectname | Atbeginningoftheyear | Increase | Decrease | Atendofyear | Sourceoffunds | Proportionofinvestmenttobudget(%) | |||
| Transferredtofixedassets | Transferredtointangibleassets | Transferredtolongtermprepaidexpense | |||||||
| Warehouseimprovementproject | 1,009,314.93 | 9,284,604.35 | - | - | (9,487,646.88) | 806,272.40 | Self-raisedfunds | 65.94 | |
| Newofficebuildingproject | 765,882.63 | 146,970.43 | (724,601.80) | - | - | 188,251.26 | Self-raisedfunds | 100.00 | |
| Supplychainextensionproject | 8,193,935.70 | 16,374,550.40 | (11,634,292.89) | (316,239.32) | - | 12,617,953.89 | Self-raisedfunds | 66.56 | |
| Softwareproject | 3,926,271.33 | 9,004,227.20 | - | - | - | 12,930,498.53 | Self-raisedfunds | 54.98 | |
| Otherconstructionprojects | 9,051,854.40 | 1,508,407.48 | - | - | (690,623.35) | 9,869,638.53 | Self-raisedfunds | 5.23 |
| 22,947,258.99 | 36,318,759.86 | (12,358,894.69) | (316,239.32) | (10,178,270.23) | 36,412,614.61 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Constructioninprogress(Continued)
Changesofsignificantconstructioninprogressin2018arepresentedasfollows:(Continued)Projectname
| Projectname | Budget | Progress(%) | Accumulatedamountofinterestcapitalized | Including:interestcapitalizedincurrentyear | Capitalizationrate(%) |
| Warehouseimprovementproject | 15,616,610.85 | 65.94 | - | - | - |
| Newofficebuildingproject | 1,224,601.80 | 100.00 | - | - | - |
| Supplychainextensionproject | 52,673,236.26 | 65.56 | - | - | - |
| Softwareproject | 12,956,849.38 | 54.98 | - | - | - |
| Otherconstructionprojects | 207,178,844.09 | 5.23 | - | - | - |
| - | - |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Right-of-useassets
2019Housesandbuildings
| Housesandbuildings | Machinery,transportandofficeequipment | Others | Total |
| Cost | ||||
| Openingbalance | 1,817,160,059.39 | 14,379,897.19 | 2,418,809.35 | 1,833,958,765.93 |
| Increase | 814,925,685.77 | 90,197.76 | - | 815,015,883.53 |
| Disposal | (49,556,361.06) | - | - | (49,556,361.06) |
| Closingbalance | 2,582,529,384.10 | 14,470,094.95 | 2,418,809.35 | 2,599,418,288.40 |
| Accumulatedamortization | ||||
| Openingbalance | - | - | - | - |
| Accrual | (650,986,768.21) | (4,075,450.60) | (95,734.70) | (655,157,953.51) |
| Disposal | 11,200,798.12 | - | - | 11,200,798.12 |
| Closingbalance | (639,785,970.09) | (4,075,450.60) | (95,734.70) | (643,957,155.39) |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Right-of-useassets(Continued)
2019(Continued)
Housesandbuildings
| Housesandbuildings | Machinery,transportandofficeequipment | Others | Total |
| Provisionforimpairment | ||||
| Openingbalance | - | - | - | - |
| Closingbalance | - | - | - | - |
| Bookvalue | ||||
| Theendoftheyear | 1,942,743,414.01 | 10,394,644.35 | 2,323,074.65 | 1,955,461,133.01 |
| Thebeginningofyear | 1,817,160,059.39 | 14,379,897.19 | 2,418,809.35 | 1,833,958,765.93 |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Intangibleassets
| 31December2019 | 1January2019 | 31December2018 |
| Disposaloffixedassets | 319,946,727.04 | 318,693,082.72 | 319,207,126.15 |
| 319,946,727.04 | 318,693,082.72 | 319,207,126.15 |
| 2019 | Landuserights | Software | Trademarks | Favorableleases | Distributionnetwork | Franchis | 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 | - | 13,442,842.51 | - | - | - | - | 13,442,842.51 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | 888,462.22 | - | - | - | - | 888,462.22 |
| Transferfromconstructioninprogress | - | 17,149,430.58 | - | - | - | - | 17,149,430.58 |
| Closingbalance | 62,083,143.97 | 173,588,890.73 | 65,977,850.00 | 93,242,000.00 | 112,117,142.86 | 710,000.00 | 507,719,027.56 |
| 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 | (968,938.20) | (18,706,589.77) | - | (4,945,705.88) | (5,605,857.14) | - | (30,227,090.99) |
| Closingbalance | (28,858,577.16) | (86,980,153.49) | (196,850.16) | (24,728,529.24) | (46,298,190.47) | (710,000.00) | (187,772,300.52) |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Intangibleassets(Continued)
| 2019(Continued) | Landuserights | Software | Trademarks | Favorableleases | Distributionnetwork | Franchise | Total |
| Provisionforimpairment | |||||||
| Openingbalance | - | - | - | - | - | - | - |
| Disposalofsubsidiaries | - | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - | - |
| Carryingamount | |||||||
| Atendoftheyear | 33,224,566.81 | 86,608,737.24 | 65,780,999.84 | 68,513,470.76 | 65,818,952.39 | - | 319,946,727.04 |
| Atbeginningoftheyear | 34,193,505.01 | 73,834,591.70 | 65,780,999.84 | 73,459,176.64 | 71,424,809.53 | - | 318,693,082.72 |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Intangibleassets(Continued)
| 2018 | Landuserights | Software | Trademarks | Favorableleases | Distributionnetwork | Franchise | Total |
| Originalcost | |||||||
| Openingbalance | 60,481,989.28 | 126,128,809.36 | 65,977,850.00 | 93,242,000.00 | 112,117,142.86 | 710,000.00 | 458,657,791.50 |
| Purchase | 2,160,172.00 | 16,310,053.09 | - | - | - | - | 18,470,225.09 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | 7,754.51 | - | - | - | - | 7,754.51 |
| Transferfromconstructioninprogress | - | 316,239.32 | - | - | - | - | 316,239.32 |
| Transferfrominvestmentproperties | 650,982.69 | - | - | - | - | - | 650,982.69 |
| Disposal | (1,210,000.00) | - | - | - | - | - | (1,210,000.00) |
| Closingbalance | 62,083,143.97 | 142,762,856.28 | 65,977,850.00 | 93,242,000.00 | 112,117,142.86 | 710,000.00 | 476,892,993.11 |
| Accumulatedamortization | |||||||
| Openingbalance | (26,667,841.47) | (55,408,075.33) | (196,850.16) | (14,837,117.48) | (35,086,476.18) | (710,000.00) | (132,906,360.62) |
| Provision | (910,378.56) | (13,006,145.82) | - | (4,945,705.88) | (5,605,857.15) | - | (24,468,087.41) |
| Transferfrominvestmentproperties | (311,418.93) | - | - | - | - | - | (311,418.93) |
| Disposal | - | - | - | - | - | - | - |
| Closingbalance | (27,889,638.96) | (68,414,221.15) | (196,850.16) | (19,782,823.36) | (40,692,333.33) | (710,000.00) | (157,685,866.96) |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Intangibleassets(Continued)
| 2018(Continued) | Landuserights | Software | Trademarks | Favorableleases | Distributionnetwork | Franchise | Total |
| Provisionforimpairment | |||||||
| Openingbalance | - | - | - | - | - | - | - |
| Closingbalance | - | - | - | - | - | - | - |
| Carryingamount | |||||||
| Atendoftheyear | 34,193,505.01 | 74,348,635.13 | 65,780,999.84 | 73,459,176.64 | 71,424,809.53 | - | 319,207,126.15 |
| Atbeginningoftheyear | 33,814,147.81 | 70,720,734.03 | 65,780,999.84 | 78,404,882.52 | 77,030,666.68 | - | 325,751,430.88 |
Asat31December2019and31December2018,nointangibleassetswereformedthroughinternalresearchanddevelopment.Asat31December2019and31December2018,therewerenointangibleassetsofwhichthecertificatesoftitlehavenotbeenobtained.
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill
| 31December2019 | Openingbalance | Increase | Decreaseduringtheyear | Closingbalance | |
| Mergerofholdingsnotundercommoncontrol | Businesscombinationcombinationsnotundercommoncontrolr | ||||
PharmaceuticaldistributionJiangmenRenrenMedicalCo.,Ltd.(“SinopharmJiangmen”)
| JiangmenRenrenMedicalCo.,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 |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
| 31December2019(Continued) | Openingbalance | Increase | Decrease | Closingbalance | |
| Mergerofholdingsnotundercommoncontrol | Businesscombinationcombinationsnotundercommoncontrol | ||||
PharmaceuticalretailSinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd.(“HebeiLerentang”)
| SinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd.(“HebeiLerentang”) | 29,482,149.57 | - | - | - | 29,482,149.57 |
| XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd.(“XiaoyiWanmin”) | 15,866,680.00 | - | - | - | 15,866,680.00 |
| ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd.(“ShanxiWanmin”) | 65,025,000.00 | - | - | - | 65,025,000.00 |
| SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd.(“ForMePharmacyChainStore”) | 19,405,450.23 | - | - | - | 19,405,450.23 |
| SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,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 |
| GuodaShenyangTianyitangPharmacyChain | 1,687,942.92 | - | - | - | 1,687,942.92 |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd. | 11,598,341.12 | - | - | - | 11,598,341.12 |
| FujianGuodaPharmacyChainStoreCo.,Ltd. | 1,567,250.76 | - | - | - | 1,567,250.76 |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd. | 29,110,409.46 | - | - | - | 29,110,409.46 |
| SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.(“GuodaShenyang”) | 41,047,958.08 | - | - | - | 41,047,958.08 |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd. | 107,275,095.74 | - | - | - | 107,275,095.74 |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd. | 41,165,574.64 | - | - | - | 41,165,574.64 |
| QuanzhouGuodaPharmacyChainStoreCo.,Ltd.(“GuodaQuanzhou”) | 41,298,622.59 | - | - | - | 41,298,622.59 |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd. | 22,666,179.77 | - | - | - | 22,666,179.77 |
| GuodaNeimenggu | 70,485,777.00 | - | - | - | 70,485,777.00 |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd. | 77,350,000.00 | - | - | - | 77,350,000.00 |
| SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd. | 9,080,100.00 | - | - | - | 9,080,100.00 |
| ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.storeacquisition | 13,420,000.00 | - | - | - | 13,420,000.00 |
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited | 64,140,124.36 | - | - | - | 64,140,124.36 |
| GuodaTaishan | 26,826,120.55 | - | - | - | 26,826,120.55 |
| SinopharmGuodaTaiyuanTongxinliPharmacyCo.,Ltd.（TaiyuanTongxinli） | 2,818,647.85 | - | - | - | 2,818,647.85 |
| ChaoyangYongxingtangPharmacyChainStoreCo.,Ltd(“ChaoyangYongxingtang”)stores’acquisition | - | - | 25,973,399.17 | - | 25,973,399.17 |
| InnerMongoliaTongrenPharmacyChainStoreCo.,Ltd.(“InnerMongoliaTongren”)stores’acquisition | - | - | 13,494,000.00 | - | 13,494,000.00 |
| GuodaPu’er | - | 71,064,684.79 | - | - | 71,064,684.79 |
| 858,547,800.60 | 71,064,684.79 | 39,467,399.17 | - | 969,079,884.56 |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
| 31December2018 | Openingbalance | Increase | Decrease | Closingbalance | |
| Mergerofholdingsnotundercommoncontrol | Consolidationbymergerundercommoncontrol | Consolidationbymergerundercommoncontrol | |||
| Pharmaceuticaldistribution | |||||
| SinopharmJiangmen | 27,392,317.73 | - | - | - | 27,392,317.73 |
| SinopharmYanfeng | 16,868,644.87 | - | - | - | 16,868,644.87 |
| SinopharmZhaoqing | 2,594,341.53 | - | - | - | 2,594,341.53 |
| SinopharmShaoguan | 1,686,496.80 | - | - | - | 1,686,496.80 |
| SinopharmMeizhou | 1,610,819.66 | - | - | - | 1,610,819.66 |
| SinopharmHuizhou | 923,184.67 | - | - | - | 923,184.67 |
| SinopharmZhanjiang | 282,135.55 | - | - | - | 282,135.55 |
| 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 |
| SinopharmZhuhai | 6,772,561.47 | 6,772,561.47 | |||
| SinopharmMaoming | 66,417.07 | - | - | - | 66,417.07 |
| ForMeMedicines | 3,033,547.53 | - | - | - | 3,033,547.53 |
| Pharmaceuticalretail | |||||
| ShijiazhuangLerentangYikangPharmacyChainStoreCo.,Ltd. | 29,482,149.57 | - | (29,482,149.57) | ||
| HebeiLerentang | - | - | 29,482,149.57 | - | 29,482,149.57 |
| XiaoyiWanmin | 15,866,680.00 | - | - | - | 15,866,680.00 |
| ShanxiWanmin | 65,025,000.00 | - | - | - | 65,025,000.00 |
| ForMePharmacyChainStore | 19,405,450.23 | - | - | - | 19,405,450.23 |
| SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,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 |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd. | 11,598,341.12 | - | - | - | 11,598,341.12 |
| FujianGuodaPharmacyChainStoreCo.,Ltd. | 1,567,250.76 | - | - | - | 1,567,250.76 |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd. | 29,110,409.46 | - | - | - | 29,110,409.46 |
| GuodaShenyang | 41,047,958.08 | - | - | - | 41,047,958.08 |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd. | 107,275,095.74 | - | - | - | 107,275,095.74 |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd. | 41,165,574.64 | - | - | - | 41,165,574.64 |
| GuodaQuanzhou | 41,298,622.59 | - | - | - | 41,298,622.59 |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd. | 22,666,179.77 | - | - | - | 22,666,179.77 |
| GuodaNeimenggu | 70,485,777.00 | - | - | - | 70,485,777.00 |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd. | 77,350,000.00 | - | - | - | 77,350,000.00 |
| SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd. | 9,080,100.00 | - | - | - | 9,080,100.00 |
| ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.storeacquisition | 13,420,000.00 | - | - | - | 13,420,000.00 |
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited(“BeijingGoldenElephant”) | 63,546,507.81 | - | 593,616.55 | - | 64,140,124.36 |
| BeijingYangqiaoRongzhiGoldenElephantPharmacyCompanyLimited | 593,616.55 | - | - | (593,616.55) | - |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
| 31December2018(Continued) | Openingbalance | Increase | Decrease | Closingbalance | |
| Mergerofholdingsnotundercommoncontrol | Consolidationbymergerundercommoncontrol | Consolidationbymergerundercommoncontrol | |||
| Pharmaceuticalretail(Continued) | |||||
| GuodaTaishan | 26,826,120.55 | - | - | - | 26,826,120.55 |
| TaiyuanTongxinli | - | 2,818,647.85 | - | - | 2,818,647.85 |
| 855,729,152.75 | 2,818,647.85 | 30,075,766.12 | (30,075,766.12) | 858,547,800.60 |
Changesinprovisionforimpairmentofgoodwillarepresentedasfollows:
| 2019 | Openingbalance | Increase | Decrease | Closingbalance |
| Provision | Disposal |
| Pharmaceuticalretail | ||||
| GuodaQuanzhou | 25,000,000.00 | - | - | 25,000,000.00 |
| 2018 | Openingbalance | Increase | Decrease | Closingbalance |
| Provision | Disposal |
| Pharmaceuticalretail | ||||
| GuodaQuanzhou | 25,000,000.00 | - | - | 25,000,000.00 |
ThecarryingvalueofgoodwillisapportionedaccordingtotheproportionofeachCGUorCGUgroupatfairvalueofthetotalamountofgoodwillatfairvalue.Itisshownasfollows:
| 31December2019 | 31December2018 |
| Pharmaceuticaldistribution | 152,865,497.03 | 152,865,497.03 |
| Pharmaceuticalretail | 791,214,387.53 | 680,682,303.57 |
| 944,079,884.56 | 833,547,800.60 |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Goodwill(Continued)
TheGrouphadacquiredthemanagementrightof12storesofInnerMongoliaTongreninMarch2019,whichformedgoodwillamountingtoRMB13,494,000.RefertoNoteVI(1.2)formoredetails.TheGrouphadacquiredthemanagementrightof31storesofChaoyangYongxingtanginMay2019,whichformedgoodwillamountingtoRMB25,973,399.17.RefertoNoteVI(1.3)formoredetails.TheGrouphadacquired60%sharesofPu'erSongmaoJiantangPharmaceuticalCo.,Ltd.inNovember2019,whichformedgoodwillamountingtoRMB71,064,684.79.RefertoNoteVI(1.4)formoredetails.Therecoverableamountofanassetgrouporagroupofassetgroupsisdeterminedbasedonafinancialbudgetapprovedbymanagementcoveringafive-yearperiod.Thecashflowsbeyondthefive-yearperiodareextrapolatedusingtheinflationrate.Keyassumptionswereusedforthecalculationofthepresentvaluesoffuturecashflowprojectionsoftheassetgroupconsistingofpharmaceuticaldistributionandpharmaceuticalretailasof31December2019.Keyassumptionsmadebymanagementonprojectionsofcashflowsusedinimpairmenttestingaredescribedasfollows:
| Pharmaceuticaldistribution | Pharmaceuticalretail |
| Revenuegrowthrateinthebudgetperiod | 2.00%-40.00% | 1.41%-35.00% |
| Sustainablegrowthrate | 3.00% | 3.00% |
| Grossmargin | 3.70%-6.94% | 20.36%-41.22% |
| Discountrate | 12.40%-15.00% | 13.00%-15.00% |
Thebudgetedgrossmarginandtherevenuegrowthrateinthebudgetperiodaredeterminedbasedonthepastperformanceandexpectationformarketdevelopment.Thediscountratesusedarepre-taxdiscountratesafterreflectingspecificrisksoftherelevantassetgroups.Therecoverableamountoftheassetgroupconsistingofpharmaceuticaldistributionandpharmaceuticalretailwasdeterminedaccordingtothekeyassumptions.
VNotestotheconsolidatedfinancialstatements(Continued)
18.Long-termprepaidexpenses
| 2019 | Openingbalance | Additions | Amortization | Otherdecrease | Closingbalance |
| Fixedassetimprovementexpenditure | 249,458,261.87 | 121,956,819.11 | (86,002,425.40) | (2,970,454.66) | 282,442,200.92 |
| Acquisitionexpendituretoobtaintherighttooperate | 57,617,166.63 | 15,785,422.51 | (16,870,583.63) | - | 56,532,005.51 |
| Others | 4,253,277.96 | 28,371,430.56 | (5,099,503.83) | (37,272.11) | 27,487,932.58 |
| 311,328,706.46 | 166,113,672.18 | (107,972,512.86) | (3,007,726.77) | 366,462,139.01 |
| 2018 | Openingbalance | Increase | Amortization | Otherdecrease | Closingbalance |
| Fixedassetimprovementexpenditure | 199,209,837.80 | 123,968,928.79 | (72,027,492.28) | (1,693,012.44) | 249,458,261.87 |
| Acquisitionexpendituretoobtaintherighttooperate | 49,013,331.48 | 24,687,711.48 | (16,083,876.33) | - | 57,617,166.63 |
| Others | 4,023,881.51 | 1,973,696.15 | (1,744,299.70) | - | 4,253,277.96 |
| 252,247,050.79 | 150,630,336.42 | (89,855,668.31) | (1,693,012.44) | 311,328,706.46 |
VNotestotheconsolidatedfinancialstatements(Continued)
19.Deferredtaxassets/liabilities
Deferredtaxassetsanddeferredtaxliabilitiesbeforeoffsettingareasfollows:
31December2019
| 31December2019 | 31December2018 | |||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Deferredtaxassets | |||||
| Provisionforimpairmentofassets | 113,202,938.51 | 26,745,819.50 | 68,153,222.07 | 15,676,020.10 | |
| Accruedexpenses | 101,057,882.46 | 24,536,658.05 | 94,108,769.33 | 22,301,617.95 | |
| Effectofthenewleasestandard | 52,885,419.73 | 12,482,780.70 | - | - | |
| Deferredrevenue | 32,719,558.79 | 7,996,709.35 | 30,188,142.13 | 7,547,758.26 | |
| Deductibletaxloss | 30,789,517.62 | 7,536,230.76 | 77,791,621.20 | 19,311,837.06 | |
| Accruedpayroll | 11,868,705.75 | 2,454,711.04 | 64,598,625.74 | 15,656,015.32 | |
| Others | 22,161,103.74 | 4,560,780.36 | 6,238,492.18 | 1,467,765.00 |
| 364,685,126.60 | 86,313,689.76 | 341,078,872.65 | 81,961,013.69 |
| 31December2019 | 31December2018 | |||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Deferredtaxliabilities | |||||
| Fairvalueadjustmentforabusinesscombinationnotinvolvingenterprisesundercommoncontrol | 216,027,393.92 | 54,006,848.47 | 227,900,345.39 | 56,975,086.34 | |
| Changesinfairvalueoffinancialassetsthroughothercomprehensiveincome | 102,335,240.00 | 25,583,810.00 | - | - | |
| FixedassetlessthanRMB5milliondeductedatonce | 77,440,115.98 | 19,250,299.21 | 26,766,360.08 | 6,691,590.04 | |
| Changesinassetvaluationduetochangeincompanypolicy | 20,286,498.64 | 5,071,624.66 | 21,858,742.02 | 5,464,685.51 | |
| Others | 26,521,667.38 | 5,487,577.71 | 26,741,840.89 | 5,520,603.73 |
| 442,610,915.92 | 109,400,160.05 | 303,267,288.38 | 74,651,965.62 |
VNotestotheconsolidatedfinancialstatements(Continued)
19.Deferredtaxassets/liabilities(Continued)
Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachotherareasfollows:
31December2019
| 31December2019 | 31December2018 | |||
| Theamountofoffset | Deferredtaxassets/liabilities-net | Theamountofoffset | Deferredtaxassets/liabilities-net | |
| Deferredtaxassets | 25,682,673.77 | 60,631,015.99 | 7,046,803.74 | 74,914,209.95 |
| Deferredtaxliabilities | 25,682,673.77 | 83,717,486.28 | 7,046,803.74 | 67,605,161.88 |
Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognisedasdeferredtaxassetsarepresentedasfollows:
31December2019
| 31December2019 | 31December2018 |
| Deductibletemporarydifferences | 1,480,000.00 | 1,480,000.00 |
| Deductiblelosses(Note) | 49,106,535.92 | 29,391,422.33 |
| 50,586,535.92 | 30,871,422.33 |
Note:Forthoseloss-makingsubsidiaries,asitisnotconsideredprobablethattaxableprofits
willbeavailableagainstwhichthetaxlossescanbeutilized,theGrouphasnotrecogniseddeferredtaxassetsarisingfromaccumulatedlossesamountingtoRMB49,106,535.92whicharetaxdeductiblesunderthetaxlaw.Theaforesaidunrecogniseddeductiblelosseswillbeduein:
Theaforesaidunrecogniseddeductiblelosseswillbeduein:
31December2019
| 31December2019 | 31December2018 |
| 2019 | - | 2,864,062.85 |
| 2020 | 4,725,707.87 | 4,725,707.87 |
| 2021 | 2,563,056.08 | 2,563,056.08 |
| 2022 | 7,261,117.97 | 7,261,117.97 |
| 2023 | 11,977,477.56 | 11,977,477.56 |
| 2024 | 22,579,176.44 | - |
| 49,106,535.92 | 29,391,422.33 |
VNotestotheconsolidatedfinancialstatements(Continued)
20.Othernon-currentassets
| 31December2019 | 1January2019 | 31December2018 |
| Speciallyapprovedreservingmaterials | 55,550,834.89 | 47,576,273.75 | 47,576,273.75 |
| Prepaymentforprojectandequipment | 21,713,763.10 | 10,592,645.36 | 10,592,645.36 |
| Prepaymentforarentalfee | 90,372.40 | - | 14,196,944.60 |
| 77,354,970.39 | 58,168,919.11 | 72,365,863.71 |
21.Provisionforimpairmentofassets
| 1January2019 | Reversalofwrite-offinpreviousyears | Increases | Decreases | 31December2019 | ||
| Current | Increaseduetoreorganization | Reversal | Write-off | |||
| Provisionforbaddebts | 59,443,388.46 | 62,630.60 | 75,240,127.77 | 57,180.49 | (22,076,637.16) | (8,157,143.90) | 104,569,546.26 |
| Provisionforbaddebtsofaccountsreceivable | 39,521,434.74 | 22,080.00 | 25,098,772.50 | 56,980.49 | (20,246,309.59) | (3,823,540.02) | 40,629,418.12 |
| Provisionforbaddebtsofotherreceivables | 19,921,953.72 | 40,550.60 | 50,141,355.27 | 200.00 | (1,830,327.57) | (4,333,603.88) | 63,940,128.14 |
| Provisionforinventories | 8,313,195.29 | 5,356.03 | 4,362,375.48 | 139,294.62 | (3,110,765.80) | (1,403,955.27) | 8,305,500.35 |
| Impairmentofinvestmentproperties | 1,300,000.00 | - | - | - | - | - | 1,300,000.00 |
| Impairmentofgoodwill | 25,000,000.00 | - | - | - | - | - | 25,000,000.00 |
| Impairmentoflong-termequityinvestments | 396,638.32 | - | 1,857,279.52 | - | - | - | 2,253,917.84 |
| 94,453,222.07 | 67,986.63 | 81,459,782.77 | 196,475.11 | (25,187,402.96) | (9,561,099.17) | 141,428,964.45 |
VNotestotheconsolidatedfinancialstatements(Continued)
21.Provisionforimpairmentofassets(Continued)
| 1January2018 | Reversalofwrite-offinpreviousyears | Increases | Decreases | 31December2018 | ||
| Current | Increaseduetoreorganization | Reversal | Write-off | |||
| Provisionforbaddebts | 59,036,515.28 | 221,031.35 | 19,607,811.63 | 80,000.00 | (19,309,332.08) | (192,637.72) | 59,443,388.46 |
| Provisionforbaddebtsofaccountsreceivable | 43,925,465.41 | 221,031.35 | 12,467,357.34 | - | (16,899,781.64) | (192,637.72) | 39,521,434.74 |
| Provisionforbaddebtsofotherreceivables | 15,111,049.87 | - | 7,140,454.29 | 80,000.00 | (2,409,550.44) | - | 19,921,953.72 |
| Provisionforinventories | 6,840,110.55 | - | 5,422,984.90 | - | (2,678,379.54) | (1,271,520.62) | 8,313,195.29 |
| Impairmentofinvestmentproperties | 1,300,000.00 | - | - | - | - | - | 1,300,000.00 |
| Impairmentofgoodwill | 25,000,000.00 | - | - | - | - | - | 25,000,000.00 |
| Impairmentoflong-termequityinvestments | 396,638.32 | - | - | - | - | - | 396,638.32 |
| 92,573,264.15 | 221,031.35 | 25,030,796.53 | 80,000.00 | (21,987,711.62) | (1,464,158.34) | 94,453,222.07 |
22.Short-termborrowings
| 31December2019 | 31December2018 |
| Creditborrowings | 1,388,979,951.89 | 2,438,612,672.71 | |
| Discountednotes | 64,038,348.12 | 170,013,427.11 |
| 1,453,018,300.01 | 2,608,626,099.82 |
Asat31December2019,theannualinterestratefortheaboveborrowingswas4.44%(31December2018:4.65%).Asat31December2019and31December2018,therewerenoshort-termborrowingsoftheGroupthatwereoverduebutnotyetpaid.
VNotestotheconsolidatedfinancialstatements(Continued)
23.Notespayable
| 31December2019 | 31December2018 |
| Commercialacceptancebills | 40,343,723.78 | 13,843,479.73 | ||
| Bankacceptancebills | 5,515,353,833.75 | 3,402,912,202.07 |
| 5,555,697,557.53 | 3,416,755,681.80 |
At31December2019,thetotalamountofnotespayablethatwereduebutnotyetpaidwasnil(31December2018:nil).
24.AccountspayableAccountspayableareinterest-freeandwillbepaidnormallybetween1and6months.
| 31December2019 | 31December2018 |
| Paymentforgoods | 6,554,105,124.13 | 6,468,535,961.17 |
At31December2019,significantaccountspayableagedoveroneyearwasanalyzedbelow:
| Amount | Reason |
| Paymentforgoods | 331,837,741.84 | Notyetsettled |
25.Contractliabilities
| 31December2019 | 31December2018 |
| Contractliabilities | 302,650,567.97 | 255,590,612.37 |
Contractliabilitiesareadvancepaymentsreceived.Contractobligationsarenormallyperformed,andrevenueisrecognised,within6monthsofreceivingsuchadvancepaymentsbycustomers.
VNotestotheconsolidatedfinancialstatements(Continued)
26.Employeebenefitspayable
| 2019 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
| Short-termemployeebenefits | 226,152,409.27 | 2,005,462,891.39 | (1,980,782,154.51) | 250,833,146.15 |
| Post-employmentbenefits(definedcontributionplan) | 5,248,146.99 | 181,128,052.90 | (181,714,446.08) | 4,661,753.81 |
| Terminationbenefits | 465,851.14 | 1,431,023.12 | (1,564,052.56) | 332,821.70 |
| 231,866,407.40 | 2,188,021,967.41 | (2,164,060,653.15) | 255,827,721.66 |
| 2018 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
| Short-termemployeebenefits | 209,320,163.70 | 1,759,137,844.89 | (1,742,305,599.32) | 226,152,409.27 |
| Post-employmentbenefits(definedcontributionplan) | 5,596,277.12 | 176,477,341.94 | (176,825,472.07) | 5,248,146.99 |
| Terminationbenefits | 740,085.72 | 1,555,451.66 | (1,829,686.24) | 465,851.14 |
| 215,656,526.54 | 1,937,170,638.49 | (1,920,960,757.63) | 231,866,407.40 |
VNotestotheconsolidatedfinancialstatements(Continued)
26.Employeebenefitspayable(Continued)
Short-termemployeebenefits:
2019
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Salaries,bonuses,allowancesandgrants | 210,723,820.21 | 1,745,458,052.03 | (1,719,091,854.24) | 237,090,018.00 | |||
| Staffwelfare | 1,750,750.89 | 62,496,131.37 | (62,856,557.73) | 1,390,324.53 | |||
| Socialsecuritycontribution | 1,622,271.12 | 95,074,567.23 | (95,194,678.92) | 1,502,159.43 | |||
| Including:Medicalinsurance | 1,362,150.59 | 85,088,807.47 | (85,202,240.35) | 1,248,717.71 | |||
| Workinjuryinsurance | 30,755.69 | 2,904,043.69 | (2,906,528.63) | 28,270.75 | |||
| Maternityinsurance | 229,364.84 | 7,081,716.07 | (7,085,909.94) | 225,170.97 | |||
| Housingfunds | 1,063,993.02 | 70,390,806.56 | (70,062,809.27) | 1,391,990.31 | |||
| Laborunionfundsandemployeeeducationfunds | 9,956,772.12 | 30,048,327.90 | (31,605,806.94) | 8,399,293.08 | |||
| Othershort-termbenefits | 1,034,801.91 | 1,995,006.30 | (1,970,447.41) | 1,059,360.80 |
| 226,152,409.27 | 2,005,462,891.39 | (1,980,782,154.51) | 250,833,146.15 |
| 2018 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Salaries,bonuses,allowancesandgrants | 193,078,506.49 | 1,526,865,265.07 | (1,509,219,951.35) | 210,723,820.21 | |||
| Staffwelfare | 2,602,805.92 | 51,777,145.01 | (52,629,200.04) | 1,750,750.89 | |||
| Socialsecuritycontribution | 1,363,649.32 | 89,203,979.18 | (88,945,357.38) | 1,622,271.12 | |||
| Including:Medicalinsurance | 1,130,984.41 | 79,707,594.13 | (79,476,427.95) | 1,362,150.59 | |||
| Workinjuryinsurance | 10,541.55 | 3,335,240.34 | (3,315,026.20) | 30,755.69 | |||
| Maternityinsurance | 222,123.36 | 6,161,144.71 | (6,153,903.23) | 229,364.84 | |||
| Housingfunds | 929,089.33 | 59,408,331.39 | (59,273,427.70) | 1,063,993.02 | |||
| Laborunionfundsandemployeeeducationfunds | 10,178,562.87 | 28,172,099.55 | (28,393,890.30) | 9,956,772.12 | |||
| Othershort-termbenefits | 1,167,549.77 | 3,711,024.69 | (3,843,772.55) | 1,034,801.91 |
| 209,320,163.70 | 1,759,137,844.89 | (1,742,305,599.32) | 226,152,409.27 |
VNotestotheconsolidatedfinancialstatements(Continued)
26.Employeebenefitspayable(Continued)
Definedcontributionplan:
2019
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Basicpensioninsurance | 1,755,160.16 | 169,936,884.74 | (170,089,263.47) | 1,602,781.43 | |||
| Unemploymentinsurance | 122,350.65 | 5,168,661.43 | (5,210,052.28) | 80,959.80 | |||
| Contributiontoapensionfund | 3,370,636.18 | 6,022,506.73 | (6,415,130.33) | 2,978,012.58 |
| 5,248,146.99 | 181,128,052.90 | (181,714,446.08) | 4,661,753.81 |
| 2018 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Basicpensioninsurance | 1,739,623.34 | 166,757,467.61 | (166,741,930.79) | 1,755,160.16 | |||
| Unemploymentinsurance | 221,831.21 | 4,731,258.82 | (4,830,739.38) | 122,350.65 | |||
| Contributiontoapensionfund | 3,634,822.57 | 4,988,615.51 | (5,252,801.90) | 3,370,636.18 |
| 5,596,277.12 | 176,477,341.94 | (176,825,472.07) | 5,248,146.99 |
VNotestotheconsolidatedfinancialstatements(Continued)
26.Employeebenefitspayable(Continued)
Terminationbenefits:
2019
| 2019 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Retirementbenefitspayable–within1year(NoteV(34)) | 408,057.61 | 631,005.86 | (791,197.41) | 247,866.06 | |||
| Otherterminationbenefits(i) | 57,793.53 | 800,017.26 | (772,855.15) | 84,955.64 |
| 465,851.14 | 1,431,023.12 | (1,564,052.56) | 332,821.70 |
| 2018 | Atbeginningofyear | Increase | Decrease | Atendofyear |
| Retirementbenefitspayable–within1year(NoteV(34)) | 559,065.67 | 980,356.18 | (1,131,364.24) | 408,057.61 | |||
| Otherterminationbenefits(i) | 181,020.05 | 575,095.48 | (698,322.00) | 57,793.53 |
| 740,085.72 | 1,555,451.66 | (1,829,686.24) | 465,851.14 |
VNotestotheconsolidatedfinancialstatements(Continued)
27.Taxpayable
| 31December2019 | 31December2018 |
| CorporateIncometaxes | 127,549,708.68 | 115,226,820.39 | |
| Value-addedtax | 86,412,534.51 | 90,356,534.09 | |
| Citymaintenanceandconstructionsurtax | 6,746,231.85 | 6,854,426.95 | |
| Stampduty | 6,071,030.95 | 5,854,355.91 | |
| Waterconservancyfund | 5,488,930.64 | 5,421,280.43 | |
| Educationalsurcharge | 4,898,828.26 | 4,937,147.17 | |
| Individualincometax | 4,203,699.48 | 3,954,139.24 | |
| Propertytax | 532,454.30 | 1,123,276.37 | |
| Landusetax | 11,137.20 | 209,179.29 | |
| Others | 8,203,832.27 | 8,043,252.88 |
| 250,118,388.14 | 241,980,412.72 |
28.Otherpayables
| 31December2019 | 1January2019 | 31December2018 |
| Interestpayable | 23,632,632.90 | 10,894,278.99 | 10,894,278.99 | ||
| Dividendpayable | 6,389,320.96 | 6,389,320.96 | 6,389,320.96 | ||
| Otherpayables | 1,726,836,507.16 | 1,511,129,733.38 | 1,511,140,990.34 |
| 1,756,858,461.02 | 1,528,413,333.33 | 1,528,424,590.29 |
Interestpayable
| 31December2019 | 31December2018 |
| Factoringinterestonaccountsreceivable | 23,632,632.90 | 10,894,278.99 |
VNotestotheconsolidatedfinancialstatements(Continued)
28.Otherpayables(Continued)
Dividendpayable
| 31December2019 | 31December2018 |
| ShanghaiFosunPharmaceutical(Group)Co.,Ltd.(“FosunPharm”) | 4,835,511.58 | 4,835,511.58 | |
| DividendpayabletoZhangZhenfang | 1,389,639.31 | 1,389,639.31 | |
| MeiluoPharmaceuticalCo.,Ltd. | 164,170.07 | 164,170.07 |
| 6,389,320.96 | 6,389,320.96 |
Asat31December2019and31December2018,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid.Otherpayables
| 31December2019 | 1January2019 | 31December2018 |
| Payablesforfactoringprograms | 849,490,467.87 | 724,272,060.30 | 724,272,060.30 | ||
| Deposits | 422,017,144.86 | 334,821,325.72 | 334,821,325.72 | ||
| Accruedexpenses | 129,552,787.78 | 131,493,977.43 | 131,493,977.43 | ||
| Payablesarisingfromacquisitionofsubsidiaries | 72,193,635.62 | 78,702,980.00 | 78,702,980.00 | ||
| Payablesforconstructioninprogressandequipment | 55,430,961.14 | 79,380,923.99 | 79,380,923.99 | ||
| Equitysubscription | 46,023,136.00 | 10,000,000.00 | 10,000,000.00 | ||
| Payablestoindividuals | 29,757,769.47 | 22,730,210.22 | 22,730,210.22 | ||
| Payablesforrentals | 26,348,921.76 | 29,287,578.50 | 29,298,835.46 | ||
| Temporaryloans | 15,800,000.00 | 15,800,000.00 | 15,800,000.00 | ||
| Payablesforlandtransferpayments | 12,597,500.00 | 18,071,000.00 | 18,071,000.00 | ||
| Collectionofothers | 11,844,558.24 | 7,525,379.59 | 7,525,379.59 | ||
| Payablestorelatedparties | 9,028,812.08 | 5,436,532.76 | 5,436,532.76 | ||
| Others | 46,750,812.34 | 53,607,764.87 | 53,607,764.87 |
| 1,726,836,507.16 | 1,511,129,733.38 | 1,511,140,990.34 |
VNotestotheconsolidatedfinancialstatements(Continued)
28.Otherpayables(Continued)
At31December2019,significantotherpayablesover1yearareasfollows:
| Amountpayable | Reasonforoutstanding |
| Non-controllinginterestsinSouthPharma&TradeFuYuequnandother10naturalpersons | 54,722,980.00 | Paymentconditionsnotmet | |
| TaishanQunkangDrugstoreCo.,Ltd. | 13,860,000.00 | Paymentconditionsnotmet | |
| ShenyangTiexiDistrictState-ownedAssetsSupervisionandAdministrationBureau | 12,597,500.00 | Paymentconditionsnotmet | |
| LiuzhouShengliDrugstore | 9,195,734.90 | Paymentconditionsnotmet | |
| ShenzhenNo.1ConstructionEngineeringCo.,Ltd. | 8,605,625.20 | Paymentconditionsnotmet | |
| GuangxiZhongdingMedicineConsultingCo.,Ltd. | 6,836,433.21 | Paymentconditionsnotmet |
29.Non-currentliabilitiesduewithinoneyear
105,818,273.3131December2019
| 31December2019 | 1January2019 | 31December2018 |
| Long-termborrowingsduewithin1year | 31,638,984.25 | - | - | ||
| Long-termpayablesduewithin1year(NoteV(33)) | - | - | 5,861,324.37 | ||
| Leaseliabilitiesduewithin1year(NoteV(32)) | 569,788,109.37 | 538,430,817.03 | - |
| 601,427,093.62 | 538,430,817.03 | 5,861,324.37 |
30.Othercurrentliabilities
| 31December2019 | 31December2018 |
| OutputVATtoberecognised | 749,710.19 | 292,465.75 |
VNotestotheconsolidatedfinancialstatements(Continued)
31.Long-termborrowings
| 31December2019 | 31December2018 |
| Entrustedloans | - | 31,638,984.25 |
At31December2019,thetotalamountofremainingentrustedloansisRMB31,638,984.25(31December2018:RMB31,638,984.25).CNPGCentrustedSinopharmGroupFinanceCo.,Ltd.toprovidetheloan.Borrowingsduewithinoneyearhavebeenreclassifiedtonon-currentliabilitiesduewithinoneyear.At31December2019,theweightedaverageannualinterestrateoftheentrustedloanswas
4.04%(31December2018:4.04%).
32.Leaseliabilities
At31December2019,theweightedaverageannualinterestrateoftheentrustedloanswas
4.04%(31December2018:4.04%).31December2019
| 31December2019 | 1January2019 |
| Leasepayment | 1,918,972,963.90 | 1,803,679,783.76 | ||
| Unrecognisedfinancingexpenses | (166,777,769.45) | (157,711,546.81) | ||
| Less:Leaseliabilitiesduewithin1year(NoteV(29)) | 569,788,109.37 | 538,430,817.03 |
| 1,182,407,085.08 | 1,107,537,419.92 |
33.Long-termpayables
| 31December2019 | 1January2019 | 31December2018 |
| Long-termpayables | - | - | 3,763,978.52 | ||
| Payablesforspecificprojects | 800,000.00 | 800,000.00 | 800,000.00 |
| 800,000.00 | 800,000.00 | 4,563,978.52 |
Long-termpayables
| 31December2019 | 1January2019 | 31December2018 |
| Financeleasepayables | - | - | 9,625,302.89 | ||
| Less:Amountduewithinoneyear(NoteV(29)) | - | - | 5,861,324.37 |
| - | - | 3,763,978.52 |
VNotestotheconsolidatedfinancialstatements(Continued)
33.Long-termpayables(Continued)
Payablesforspecificprojects
| 2019 | |||||||
| Atbeginningofyear | Increase | Decrease | Atendofyear |
| Specialfundsgrantedbythegovernment | 800,000.00 | - | - | 800,000.00 |
| 2018 | |||||||
| Atbeginningofyear | Increase | Decrease | Atendofyear |
| Specialfundsgrantedbythegovernment | 800,000.00 | - | - | 800,000.00 |
Payablesforspecificprojectsareresearchfundingsgrantedbythegovernment,whicharedesignatedaspayablesforspecificprojectswhengranted.
34.Long-termemployeebenefitspayable
| 31December2019 | 31December2018 |
| Earlyretirementbenefitspayable | 1,680,866.06 | 2,458,057.61 | |
| Less:Retirementbenefitspayablewithin1year(NoteV(26)) | 247,866.06 | 408,057.61 |
| 1,433,000.00 | 2,050,000.00 |
| 31December2019 | 31December2018 |
| Discountrate | 3.25% | 3.50% | |
| Growthrateofwages | 6.00% | 6.00% |
Thetotalpost-employmentbenefitsrecognisedinprofitorlossofthecurrentyearareshownbelow:
2019
| 2019 | 2018 |
| Includedinadministrativeexpenses | (49,994.14) | 1,172,356.18 | |
| Includedinfinancecosts | 64,000.00 | 81,000.00 |
| 14,005.86 | 1,253,356.18 |
VNotestotheconsolidatedfinancialstatements(Continued)
35.Deferredincome
| 2019 | Openingbalance | Increase | Decrease | Closingbalance |
| Governmentgrants | 91,491,170.40 | 3,477,445.94 | (6,264,343.46) | 88,704,272.88 |
| 2018 | Openingbalance | Increase | Decrease | Closingbalance |
| Governmentgrants | 96,725,183.34 | - | (5,234,012.94) | 91,491,170.40 |
Asat31December2019,deferredincomefromgovernmentgrantsisasfollows:
Governmentgrantsprogram
| Governmentgrantsprogram | Openingbalance | Additionintheyear | Amountincludedinnon-operatingincomeintheyear | Amountincludedinotherincomeintheyear | Closingbalance | Assetrelated/incomerelated |
| Resettlementcompensation(Note) | 75,555,441.17 | - | (2,698,408.56) | - | 72,857,032.61 | Assetrelated |
| GuangxiLogisticsProject | 6,453,426.58 | - | - | (408,073.08) | 6,045,353.50 | Assetrelated |
| GuangzhouLogisticsstandardizationproject | 2,815,012.55 | - | - | (546,246.84) | 2,268,765.71 | Assetrelated |
| Comprehensiveexperimentalmodernserviceindustrysubsidies | 1,500,000.00 | - | - | (300,000.00) | 1,200,000.00 | Assetrelated |
| Sharedlogisticscenter(completed) | 252,058.35 | - | - | (18,800.40) | 233,257.95 | Assetrelated |
| Otherprojects | 4,915,231.75 | 3,477,445.94 | - | (2,292,814.58) | 6,099,863.11 | Asset/incomerelated |
| 91,491,170.40 | 3,477,445.94 | (2,698,408.56) | (3,565,934.90) | 88,704,272.88 |
VNotestotheconsolidatedfinancialstatements(Continued)
35.Deferredincome(Continued)
Asat31December2018,deferredincomefromgovernmentgrantsisasfollows:
Governmentgrantsprogram
| Governmentgrantsprogram | Openingbalance | Additionintheyear | Amountincludedinnon-operatingincomeintheyear | Amountincludedinotherincomesintheyear | Closingbalance | Assetrelated/incomerelated |
| Resettlementcompensation(Note) | 78,253,849.73 | - | (2,698,408.56) | - | 75,555,441.17 | Assetrelated |
| GuangxiLogisticsProject | 6,949,832.98 | - | - | (496,406.40) | 6,453,426.58 | Assetrelated |
| Guangzhoulogisticsstandardizationproject | 3,361,259.39 | - | - | (546,246.84) | 2,815,012.55 | Assetrelated |
| Comprehensiveexperimentalmodernserviceindustrysubsidies | 1,800,000.00 | - | - | (300,000.00) | 1,500,000.00 | Assetrelated |
| Sharedlogisticscenter(completed) | 270,858.75 | - | - | (18,800.40) | 252,058.35 | Assetrelated |
| Otherprojects | 6,089,382.49 | - | - | (1,174,150.74) | 4,915,231.75 | Asset/incomerelated |
| 96,725,183.34 | - | (2,698,408.56) | (2,535,604.38) | 91,491,170.40 |
VNotestotheconsolidatedfinancialstatements(Continued)
36.Othernon-currentliabilities
| 31December2019 | 31December2018 |
| Governmentalmedicalreservefunds | 46,723,743.31 | 45,427,343.31 | ||
| Productpromotionaccumulativepointsprogramme | 26,478,986.49 | 23,813,832.87 | ||
| Others | 53,785.13 | - |
| 73,256,514.93 | 69,241,176.18 |
37.Sharecapital
GovernmentalmedicalreservefundswerereceivedbytheGroupfromthenationalandlocalgovernmentsforpurchasingmedicalproducts(includingmedicines)requiredtorespondtoseriousdisasters,epidemicsandotheremergencies.TheProductpromotionaccumulativepointsprogrammereferstothoseproduct-originatedaccumulativepointsthatremainmorethanoneyearsurplusbeforetheexpirationdate.2019
| 2019 | Atbeginningoftheyear | Increaseduringthecurrentyear | Atendoftheyear | |||
| Issueofnewshare | Others | Subtotal | ||||
| Listedshareswithoutrestrictionoftrading: | ||||||
| -Ashares,listed | 307,744,355.00 | - | - | - | 307,744,355.00 | |
| -Bshares,listed | 54,884,475.00 | - | - | - | 54,884,475.00 | |
| Listedshareswithrestrictionoftrading: | ||||||
| -State-ownedlegalpersonshares | 60,380,743.00 | - | - | - | 60,380,743.00 | |
| -LegalpersonregisteredwithinChinashares | 5,114,297.00 | - | - | - | 5,114,297.00 | |
| -NaturalpersonregisteredwithinChinashares | 3,113.00 | - | - | - | 3,113.00 | |
| 428,126,983.00 | - | - | - | 428,126,983.00 |
| 2018 | Atbeginningoftheyear | Increaseduringthecurrentyear | Atendoftheyear | |||
| Issueofnewshare | Others | Subtotal | ||||
| Listedshareswithoutrestrictionoftrading: | ||||||
| -Ashares,listed | 307,744,355.00 | - | - | - | 307,744,355.00 | |
| -Bshares,listed | 54,885,600.00 | - | (1,125.00) | (1,125.00) | 54,884,475.00 | |
| Listedshareswithrestrictionoftrading: | ||||||
| -State-ownedlegalpersonshares | 60,380,743.00 | - | - | - | 60,380,743.00 | |
| -LegalpersonregisteredwithinChinashares | 5,114,297.00 | - | - | - | 5,114,297.00 | |
| -NaturalpersonregisteredwithinChinashares | 1,988.00 | - | 1,125.00 | 1,125.00 | 3,113.00 | |
| 428,126,983.00 | - | - | - | 428,126,983.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
38.Capitalsurplus
| 2019 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
| Sharepremium | 2,118,174,787.27 | - | - | 2,118,174,787.27 |
| Othercapitalsurplus- | ||||
| Significantreorganization | 1,173,907,763.19 | - | - | 1,173,907,763.19 |
| Transferofcapitalsurplusrecognisedunderthepreviousaccountingsystem | 2,650,322.00 | - | - | 2,650,322.00 |
| Otherchangesinequityofinvestedunitsundertheequitymethod(a) | (94,032,514.34) | 42,022,530.06 | - | (52,009,984.28) |
| Others(b) | 1,120,284,623.39 | - | - | 1,120,284,623.39 |
| 4,320,984,981.51 | 42,022,530.06 | - | 4,363,007,511.57 |
| 2018 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
| Sharepremium | 2,118,174,787.27 | - | - | 2,118,174,787.27 |
| Othercapitalsurplus- | ||||
| Significantreorganization | 1,173,907,763.19 | - | - | 1,173,907,763.19 |
| Transferofcapitalsurplusrecognisedunderthepreviousaccountingsystem | 2,650,322.00 | - | - | 2,650,322.00 |
| Otherchangesinequityofinvestedunitsundertheequitymethod(a) | (113,303,807.47) | 19,271,293.13 | - | (94,032,514.34) |
| - | 1,120,284,623.39 | - | 1,120,284,623.39 |
| 3,181,429,064.99 | 1,139,555,916.52 | - | 4,320,984,981.51 |
(a)TherewasanincreaseofRMB42,022,530.06inthecurrentyear’sothercapitalreservesofthe
investedentityandthiswasduetotheincreaseofthebookvalueofalong-termequityinvestmentoftheGroup’sassociatecompany,ShyndecPharma,whichresultedinacapitalsurplusofRMB42,022,530.06.TherewasanincreaseofRMB19,271,293.13inothercapitalreservesoftheinvestedentityin2018andthiswasduetothedecreaseofthebookvalueofalong-termequityinvestmentoftheGroup’sassociatecompany,ShyndecPharma,whichresultedinacapitalsurplusofRMB139,312.34.SincethesubsidiaryofShyndecPharmafailedtocompletetheValuationAdjustmentMechanism,ShyndecPharma’ssharesthattheGroupholdschanged,whichresultedinanincreaseofRMB19,410,605.47inthecapitalsurplus.
(b)TherewasanincreaseofRMB1,120,284,623.39inthecurrentyear’sothercapitalreservesandthiswasduetotheintroductionofastrategicinvestor,WalgreensBootsAlliance(HongKong)InvestmentsLimited,fromtheGroup’ssubsidiary,GuodaPharmacy.WBAinvestorincreasedcapitalbyRMB2,766,700,000.00,whichresultedinacapitalpremiumofRMB1,120,284,623.39.
VNotestotheconsolidatedfinancialstatements(Continued)
39.Othercomprehensiveincome
Accumulatedbalanceofothercomprehensiveincomeattributabletoshareholdersoftheparentcompanyintheconsolidatedbalancesheet
| 1January2019 | Increaseordecrease | 31December2019 |
| Changeinthefairvalueofotherequityinvestments | - | 46,050,708.96 | 46,050,708.96 |
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | - | (133,366.19) | (133,366.19) |
| - | 45,917,342.77 | 45,917,342.77 |
Thecurrentoccurrenceamountofothercomprehensiveincomeintheconsolidatedincomestatementisas
follows:
| Occurrenceamountbeforetax | Minus：Incometax | Attributabletoshareholdersofownersoftheparent | Attributabletonon-controllinginterests |
| Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss | |||||||
| Changeinthefairvalueofotherequityinvestments | 102,335,240.00 | 25,583,810.00 | 46,050,708.96 | 30,700,721.04 | |||
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||||||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | (133,366.19) | - | (133,366.19) | - |
| 102,201,873.81 | 25,583,810.00 | 45,917,342.77 | 30,700,721.04 |
VNotestotheconsolidatedfinancialstatements(Continued)
40.Surplusreserves
| 31December2019 | 31December2018 |
| Statutorysurplusreserves | 214,063,491.50 | 214,063,491.50 |
AccordingtotheprovisionsoftheCompanyLawandtheCompany’sarticlesofassociation,theCompanyappropriatesstatutorysurplusreservesat10%ofthenetprofit.Wheretheaccumulatedamountofsurplusreservesreaches50%ormoreoftheCompany’sregisteredcapital,additionalappropriationisnotneeded.Aftertheappropriationofstatutorysurplusreserves,theCompanymayappropriatediscretionarysurplusreserves.Whenapproved,thediscretionarysurplusreservescanbeusedtorecoveraccumulatedlossesorincreasesharecapital.TheaccumulatedamountofthestatutorysurplusreservesoftheGrouphasalreadyreached50%oftheregisteredcapital.AccordingtotheCompany’sarticlesofassociation,theGroupdidnotextractthesurplusreservesanymore.
41.Retainedearnings
| 31December2019 | 31December2018 |
| Retainedearningsattheendoftheprioryear | 6,655,257,147.27 | 5,572,952,806.39 |
| Add:Netprofitattributabletotheparent | 1,271,289,183.01 | 1,210,742,435.78 |
| Less:Withdrawalfromthesurplusreserves | - | - |
| Cashdividendspayableforordinaryshares(a) | 171,250,793.20 | 128,438,094.90 |
| Retainedearningsatendofyear | 7,755,295,537.08 | 6,655,257,147.27 |
| (a) | PursuanttotheresolutionoftheGeneralMeetingoftheShareholderson17May2019,theCompanypaidacashdividendofRMB4.00forevery10sharestoallshareholders.Thecashdividendwascalculatedonthebasisof428,126,983sharesinissue,withanaggregateamountofRMB171,250,793.20. |
VNotestotheconsolidatedfinancialstatements(Continued)
42.Operatingrevenueandcost
| 2019 | 2018 | ||
| Revenue | Cost | Revenue | Cost |
| Principaloperations | 51,672,871,710.12 | 46,245,490,002.68 | 42,778,939,792.90 | 37,991,076,562.19 |
| Otheroperations | 372,892,433.09 | 46,918,837.85 | 343,445,728.33 | 33,032,068.96 |
| 52,045,764,143.21 | 46,292,408,840.53 | 43,122,385,521.23 | 38,024,108,631.15 |
Revenueisasfollows:
2019
| 2019 | 2018 |
| Revenuefromcontractswithcustomers | 51,970,971,594.52 | 43,040,868,416.94 | |
| Rentals | 74,792,548.69 | 81,517,104.29 |
| 52,045,764,143.21 | 43,122,385,521.23 |
Disaggregationofrevenuefromcontractswithcustomersisasfollows:
2019
| 2019 | 2018 |
| Placeofbusiness | |||
| China | 51,970,971,594.52 | 43,040,868,416.94 |
| Typeofmajoractivities | |||
| Pharmaceuticaldistribution | 38,886,408,981.79 | 31,866,749,848.53 | |
| Retailpharmacy | 13,000,514,605.28 | 11,110,718,685.75 | |
| Others | 84,048,007.45 | 63,399,882.66 |
| 51,970,971,594.52 | 43,040,868,416.94 |
| Typeofmajorgoods | |||
| Pharmaceuticals | 48,181,069,748.36 | 40,634,670,075.31 | |
| Medicaldevicesanddisposables | 2,756,591,633.83 | 1,589,598,645.85 | |
| Diagnosticreagents | 692,370,435.53 | 548,790,740.10 | |
| Medicalequipments | 256,891,769.35 | 204,409,073.02 | |
| Others | 84,048,007.45 | 63,399,882.66 |
| 51,970,971,594.52 | 43,040,868,416.94 |
VNotestotheconsolidatedfinancialstatements(Continued)
42.Operatingrevenueandcost(Continued)
Disaggregationofrevenuefromcontractswithcustomersisasfollows:(Continued)2019
| 2019 | 2018 |
| Timingofrevenuerecognition | |||
| Atapointintime | |||
| Saleofgoods | 51,886,923,587.07 | 42,977,468,534.28 | |
| Overtime | |||
| Providingservices | 40,334,878.35 | 26,942,724.22 | |
| Storageandlogistics | 43,713,129.10 | 36,457,158.44 |
| 51,970,971,594.52 | 43,040,868,416.94 |
Revenuerecognisedthatwasincludedincontractliabilitiesatthebeginningoftheyear:
2019
| 2019 | 2018 |
| Saleofgoods | 255,590,612.37 | 216,938,239.32 |
TheGrouphasrecognisedcontractliabilitiesintotalofRMB302,650,567.97throughthesaleofgoodsandprovisionofservicesinthecurrentyear.TheexpectedrevenuerecognitiontimefortheGroup’scontractobligationsaboveisinyear2020.InformationabouttheGroup’sperformanceobligationsissummarisedbelow:
InformationabouttheGroup’sperformanceobligationsissummarisedbelow:
(1)
| (1) | Revenueisrecognisedwhencontrolofthegoodshastransferredandpaymentisgenerallyduewithin30to210daysfromdelivery; |
| (2) | Revenueisrecognisedintheservicedurationandthepaymentisgenerallyduewithin30to210dayssincetheserviceiscompleted. |
VNotestotheconsolidatedfinancialstatements(Continued)
43.Taxesandsurcharges
| 2019 | 2018 |
| Citymaintenanceandconstructiontax | 52,815,864.80 | 47,477,033.41 | |
| Educationalsurcharge | 37,750,316.05 | 32,650,733.37 | |
| Stampduty | 36,114,032.58 | 32,467,464.05 | |
| Propertytax | 7,420,032.75 | 6,961,154.31 | |
| Landtax | 1,021,455.29 | 830,516.37 | |
| River&embankmentmaintenancefee | 778,070.25 | 250,164.71 | |
| Vehicleandvesselusetax | 144,023.76 | 159,260.61 | |
| Others | 249,900.06 | 215,812.19 |
| 136,293,695.54 | 121,012,139.02 |
44.Sellingexpenses
| 2019 | 2018 |
| Employeebenefits | 1,600,018,824.19 | 1,388,569,241.35 | |
| Depreciationexpensesofright-of-useassets | 624,933,188.71 | - | |
| Rentalexpenses | 124,901,006.05 | 667,385,735.96 | |
| Amortizationoflong-termdeferredexpenses | 94,423,270.18 | 79,264,643.73 | |
| Transportationexpenses | 92,959,071.86 | 72,790,376.76 | |
| Technicalservicefee | 80,597,774.81 | 122,040,418.95 | |
| Depreciationexpensesoffixedassets | 69,824,366.45 | 57,211,707.70 | |
| Utilities | 66,594,129.68 | 58,460,806.07 | |
| Promotionandmarketingexpenses | 50,135,450.66 | 44,772,075.33 | |
| Officeallowance | 44,962,674.71 | 37,866,925.91 | |
| Entertainmentexpenses | 32,702,753.92 | 28,339,849.02 | |
| Propertymanagementfee | 29,632,095.50 | 26,325,349.03 | |
| Storageexpenses | 26,872,236.68 | 26,735,260.77 | |
| Repairingfees | 12,941,004.95 | 12,410,974.80 | |
| Conferenceexpenses | 11,996,153.12 | 9,254,374.47 | |
| Travelallowances | 9,773,557.45 | 9,659,289.87 | |
| Marketdevelopmentfee | 6,347,031.83 | 7,741,076.04 | |
| Others | 75,789,077.41 | 113,961,780.01 |
| 3,055,403,668.16 | 2,762,789,885.77 |
VNotestotheconsolidatedfinancialstatements(Continued)
45.Administrativeexpenses
| 2019 | 2018 |
| Employeebenefits | 577,208,734.38 | 540,166,368.56 | |
| Officeallowance | 29,676,021.12 | 25,785,743.03 | |
| Depreciationexpensesoffixedassets | 27,124,509.45 | 25,989,962.32 | |
| Depreciationexpensesofright-of-useassets | 22,873,594.08 | - | |
| Technicalservicefee | 20,634,230.67 | 17,309,623.25 | |
| Amortizationofintangibleassets | 19,679,232.79 | 16,833,469.40 | |
| Rentalexpenses | 16,718,745.74 | 34,452,292.21 | |
| Entertainmentexpenses | 15,897,238.79 | 15,124,722.99 | |
| Agencyservicefee | 15,872,236.21 | 19,335,780.45 | |
| Promotionandmarketingexpenses | 12,495,124.13 | 9,239,323.28 | |
| Amortizationoflong-termdeferredexpenses | 12,267,769.44 | 9,609,145.68 | |
| Travelallowance | 11,579,577.92 | 11,970,208.11 | |
| Vehiclemanagementexpenses | 7,770,897.50 | 9,508,891.07 | |
| Repairingfee | 6,592,921.58 | 4,726,047.17 | |
| Utilities | 5,930,248.65 | 5,740,238.76 | |
| Propertymanagementfee | 5,511,193.47 | 3,993,814.78 | |
| Others | 34,182,707.61 | 33,552,677.13 |
| 842,014,983.53 | 783,338,308.19 |
46.Financecosts
| 2019 | 2018 |
| Interestexpenses | 271,718,934.85 | 140,315,267.43 | |
| Less:Interestincome | 139,842,489.11 | 81,119,506.63 | |
| Cashdiscountfrompurchase | 43,252,757.88 | 42,424,361.51 | |
| Exchanges(loss)/gain | (390,756.61) | 325,611.60 | |
| Others | 31,740,023.54 | 34,393,009.70 |
| 119,972,954.79 | 51,490,020.59 |
Abreakdownforinterestincomeisasfollows:
| 2019 | 2018 |
| Cash | 139,842,489.11 | 81,119,506.63 |
VNotestotheconsolidatedfinancialstatements(Continued)
47.Otherincome
| 2019 | 2018 |
| Governmentgrantsrelatedtodailyoperatingactivities | 42,905,261.49 | 27,012,475.30 | |
| Taxationservicechargerefund | 508,168.93 | 1,445,926.01 |
| 43,413,430.42 | 28,458,401.31 |
| Governmentgrantsrelevanttodailyoperation： | ||||
| 2019 | 2018 | Relatedtoasset/income | ||
| Guangzhoulogisticsstandardizationproject | 546,246.84 | 546,246.84 | Relatedtoasset | |
| Guangxilogisticsproject | 408,073.08 | 496,406.40 | Relatedtoasset | |
| Grantsforacomprehensiveexperimentalunitofthemodernserviceindustry | 300,000.00 | 300,000.00 | Relatedtoasset | |
| Third-partymedicinemodernlogisticspublicinformationplatform | 18,800.40 | 18,800.40 | Relatedtoasset | |
| Others | 1,699,402.11 | 1,174,150.74 | Relatedtoasset | |
| 2,972,522.43 | 2,535,604.38 |
| Jobstablizationgrants | 8,704,495.35 | 2,371,741.63 | Relatedtoincome |
| Taxreturn | 7,944,738.61 | 9,153,184.19 | Relatedtoincome |
| Governmentsupportfunding | 6,302,515.34 | 2,632,800.00 | Relatedtoincome |
| VATreductionforsmall-scaletaxpayers | 6,159,608.34 | 449,851.78 | Relatedtoincome |
| Governmentgrantsformedicinereserveexpenses | 3,417,500.00 | 3,220,625.00 | Relatedtoincome |
| Enterpriseeconomyaward | 2,555,293.34 | 1,535,325.00 | Relatedtoincome |
| Economiccontributionaward | 300,000.00 | 150,000.00 | Relatedtoincome |
| Others | 4,548,588.08 | 4,963,343.32 | Relatedtoincome |
| 39,932,739.06 | 24,476,870.92 |
| 42,905,261.49 | 27,012,475.30 |
48.Investmentincome
| 2019 | 2018 |
| Long-termequityinvestmentincomeundertheequitymethod | 331,171,902.87 | 319,903,890.47 | |
| Investmentincomefromdisposaloflong-termequityinvestments | 919,446.05 | (526,137.60) | |
| Dividendincomefromotherequityinvestmentsthatarestillheld | 471,386.60 | 519,419.36 | |
| Investmentincomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (86,377,492.55) | (61,372,718.53) |
| 246,185,242.97 | 258,524,453.70 |
VNotestotheconsolidatedfinancialstatements(Continued)
49.Creditimpairmentlosses
| 2019 | 2018 |
| Impairmentlossonaccountsreceivable | 4,852,462.91 | (4,432,424.30) | |
| Impairmentlossonotherreceivables | 48,311,027.70 | 4,730,903.85 |
| 53,163,490.61 | 298,479.55 |
50.Impairmentlosses
| 2019 | 2018 |
| Provisionforinventories | 1,251,609.68 | 2,744,605.36 | |
| Long-termequityinvestmentprovision | 1,857,279.52 | - |
| 3,108,889.20 | 2,744,605.36 |
51.Gainondisposalofassets
| 2019 | 2018 |
| Gainondisposalofintangibleassets | - | 3,892,019.91 | |
| Gainondisposaloffixedassets | 688,411.84 | 3,500,527.65 | |
| Gainondisposalofright-of-useassets | 1,862,763.18 | - |
| 2,551,175.02 | 7,392,547.56 |
52.Non-operatingincome
| 2019 | 2018 |
| Gainfromwritingofftheunnecessarypayment | 16,601,380.58 | 5,000,021.34 | |
| Governmentgrantsirrelevanttodailyoperation | 5,015,608.56 | 2,698,408.56 | |
| Others | 3,969,927.00 | 5,016,923.61 |
| 25,586,916.14 | 12,715,353.51 |
Governmentgrantsareasfollows:
2019
| 2019 | 2018 | Relatedtoasset/income |
| ResettlementCompensationofGuangxiLogistics | 2,698,408.56 | 2,698,408.56 | Assetrelated |
| GuangxiLogistics’(“Watersupply,powersupply,heatingandpropertymanagement”)financialsubsidies | 2,317,200.00 | - | Incomerelated |
| 5,015,608.56 | 2,698,408.56 |
VNotestotheconsolidatedfinancialstatements(Continued)
53.Non-operatingexpenses
| 2019 | 2018 |
| Penaltyexpenses | 1,067,800.75 | 1,097,787.61 | |
| Donationexpenses | 450,000.00 | 449,466.05 | |
| Lossondamageinnon-currentassetsneededtobescrapped | 210,249.05 | 345,180.28 | |
| Others | 2,748,199.10 | 2,872,416.21 |
| 4,476,248.90 | 4,764,850.15 |
Thegovernmentgrants,whichareoffsetagainstthecarryingamountsoftherelatedassetsandexpensesassetoutbelow,arepresentedonanetbasis.
| 2019 | 2018 |
| Governmentgrantsrelatedtoassets | ||||
| Offsetagainstintangibleassets | - | 1,210,000.00 | ||
| Governmentgrantsrelatedtoincome | ||||
| Offsetagainstfinancecosts(Note) | 1,378,372.43 | 387,500.00 |
| 1,378,372.43 | 1,597,500.00 |
Note:In2019,theGroupreceivedtheloandiscountfundofRMB1,041,600.00fromanindustrialdevelopmentfundofFutianDevelopmentServiceCenterofShenzhen,GuangdongProvinceandtheloandiscountfundofRMB336,772.43fromthePharmaceuticalReserveMaterialsfundoftheDepartmentofFinanceofGuangxiZhuangAutonomousRegion.Accordingtotherelevantprovisionsof“CAS16”,theGroupwouldoffsettheabove-mentionedloandiscountfundwhichwasreceivedin2019againstthefinancecostsofthecurrentyear.Fordetailsofothergovernmentsubsidies,pleaserefertoNoteV(35&47)
VNotestotheconsolidatedfinancialstatements(Continued)
55.Expensesbynature
Theoperatingcosts,sellingexpensesandadministrativeexpensesareclassifiedbynatureandlistedasfollows:
2019
| 2019 | 2018 |
| Inventoriesoffinishedandwork-in-progressgoods/Costofinventories | 46,272,149,768.83 | 38,010,404,118.17 | |
| Employeebenefits | 2,184,975,042.37 | 1,937,354,409.70 | |
| Depreciationandamortization | 899,601,990.12 | 206,110,412.41 | |
| Rentalexpenses | 141,619,751.79 | 701,838,028.17 | |
| Technicalservicefee | 101,232,005.48 | 139,350,042.20 | |
| Transportationexpenses | 92,959,071.86 | 72,790,376.76 | |
| Utilities | 74,917,949.13 | 66,988,900.15 | |
| Officetelecomandinternetexpenses | 74,638,695.83 | 63,652,668.94 | |
| Promotionandmarketingexpenses | 68,977,606.62 | 61,752,474.65 | |
| Entertainmentexpenses | 48,599,992.71 | 43,464,572.01 | |
| Propertymanagementfee | 35,143,288.97 | 30,319,163.81 | |
| Travelallowance | 30,448,970.18 | 29,081,374.94 | |
| Storageexpenses | 26,872,236.68 | 26,735,260.77 | |
| Repairingfee | 19,533,926.53 | 17,137,021.97 | |
| Conferenceexpenses | 18,138,447.03 | 12,927,363.12 | |
| Agencyservicefee | 15,872,236.21 | 19,335,780.45 | |
| Others | 84,146,511.88 | 130,994,856.89 |
| 50,189,827,492.22 | 41,570,236,825.11 |
VNotestotheconsolidatedfinancialstatements(Continued)
56.Incometaxes
| 2019 | 2018 |
| Currentincometax | 367,807,504.00 | 330,119,712.81 | |
| Deferredincometax | 4,631,937.37 | 378,532.87 |
| 372,439,441.37 | 330,498,245.68 |
Thereconciliationofincometaxcalculatedbasedonapplicabletaxratesandtotalprofitpresentedintheconsolidatedfinancialstatementstotheincometaxesisshownbelow:
2019
| 2019 | 2018 |
| Profitbeforeincometaxes | 1,856,658,136.50 | 1,678,929,357.53 | |
| Incometaxescalculatedatapplicabletaxrates | 464,164,534.12 | 419,732,339.38 | |
| Lowertaxratesenactedbylocalauthorities | (28,039,776.17) | (26,400,897.47) | |
| Incomenotsubjecttotax | (82,792,975.72) | (80,379,054.34) | |
| Expensesnotdeductiblefortax | 16,311,566.26 | 12,549,148.66 | |
| Deductiblelossonunconfirmeddeferredtaxassetsatendoftheyear | 5,644,794.11 | 2,994,369.39 | |
| Utilizationofpreviouslyunrecognisedtaxlosses | 705,689.03 | 752,138.09 | |
| Adjustmentofincometaxexpenseofpreviousyears | (3,554,390.26) | 1,250,201.97 |
| Incometax | 372,439,441.37 | 330,498,245.68 |
57.Earningspershare
| 2019 | 2018 | |
| RMB/share | RMB/share |
| Basicearningspershare | ||||
| Continuingoperations | 2.97 | 2.83 | ||
| Dilutedearningspershare | ||||
| Continuingoperations | 2.97 | 2.83 |
ThebasicearningspersharearecalculatedbydividingtheconsolidatednetprofitofthecurrentyearattributabletotheordinaryshareholdersoftheCompanybytheadjustedweightedaveragenumberofordinarysharesoutstanding.Inyear2019,theCompanyhadnopotentialdilutiveordinarysharesandthedilutedearningspersharewerethesameasthebasicearningspershare.
VNotestotheconsolidatedfinancialstatements(Continued)
57.Earningspershare(Continued)
Thecalculationofbasicanddilutedearningspershareisasfollows:
| 2019 | 2018 |
| Earnings | 1,271,289,183.01 | 1,210,742,435.78 | |
| Consolidatednetprofitattributabletotheshareholdersoftheparent | 1,271,289,183.01 | 1,210,742,435.78 |
| Netprofitattributabletothecalculationofearningspershare | 1,271,289,183.01 | 1,210,742,435.78 |
| Shares | |||
| Adjustedweightedaveragenumberofordinarysharesoutstanding | 428,126,983.00 | 428,126,983.00 |
| Basicanddilutedearningspershare | 2.97 | 2.83 |
58.Notestoitemsinthecashflowstatement
Othercashreceiptsrelatingtooperatingactivities2019
| 2019 | 2018 |
| Interestincome | 139,464,471.82 | 79,501,556.12 | |
| Rentincome | 62,779,668.72 | 70,082,395.95 | |
| Governmentgrantsexcepttaxreturn | 31,971,665.11 | 15,323,686.73 | |
| Others | 506,514,549.70 | 514,689,083.24 |
| 740,730,355.35 | 679,596,722.04 |
Othercashpaymentsrelatingtooperatingactivities2019
| 2019 | 2018 |
| Rentalexpenses | 177,149,079.15 | 732,157,191.98 | |
| Advertisingexpenses | 74,638,695.83 | 61,752,474.65 | |
| Officeexpenses | 68,977,606.62 | 49,240,163.51 | |
| Entertainmentexpenses | 48,599,992.71 | 43,464,572.01 | |
| Bankcharges | 30,448,970.18 | 39,831,488.02 | |
| Travelexpenses | 29,123,133.47 | 29,081,374.94 | |
| Conferenceexpenses | 18,138,447.03 | 12,927,363.12 | |
| Others | 725,948,768.25 | 757,256,302.59 |
| 1,173,024,693.24 | 1,725,710,930.82 |
VNotestotheconsolidatedfinancialstatements(Continued)
58.Notestoitemsinthecashflowstatement(Continued)
Othercashreceiptsrelatingtoinvestingactivities2019
| 2019 | 2018 |
| Receivedentrustedloaninterests | 3,180,035.98 | 1,656,563.34 | |
| ReceiptsrelatingtoplantsandequipmentsofShyndecPharma’sPingshanbase | - | 51,695,586.01 | |
| Receivedentrustedloanpayments | - | 44,000,000.00 | |
| Others | 8,444.09 | 1,440,936.05 |
| 3,188,480.07 | 98,793,085.40 |
Othercashpaymentsrelatingtoinvestingactivities2019
| 2019 | 2018 |
| Expensepaymentof”Watersupply,powersupply,heatingandpropertymanagement” | 1,093,125.00 | - | |
| EntrustedborrowingspaidtoZhijunSuzhou | - | 44,000,000.00 | |
| Others | 1,504,625.74 | 37,042,904.53 |
| 2,597,750.74 | 81,042,904.53 |
Othercashreceiptsrelatingtofinancingactivities
2019
| 2019 | 2018 |
| Factoringpayablereceived | 114,349,993.77 | 335,542,301.71 | |
| Financingrestrictedmonetaryfundsreceived | 134,955,774.35 | 135,678,166.90 | |
| Others | - | 12,818,350.59 |
| 249,305,768.12 | 484,038,819.20 |
Othercashpaymentsrelatingtofinancingactivities2019
| 2019 | 2018 |
| Paymentoftheleaseprincipal | 708,869,138.96 | - | |
| Purchaseofequityofminorityshareholders | - | 54,722,980.00 | |
| Others | 9,803,690.92 | 29,752,802.06 |
| 718,672,829.88 | 84,475,782.06 |
VNotestotheconsolidatedfinancialstatements(Continued)
59.Supplementaryinformationofthecashflowstatement
(1)Supplementaryinformationofthecashflowstatement
Reconciliationofnetprofittocashflowsfromoperatingactivities2019
| 2019 | 2018 |
| Netprofit | 1,484,218,695.13 | 1,348,431,111.85 |
| Add:Provisionforassetimpairment | 56,272,379.81 | 3,043,084.91 |
| Depreciationoffixedassetsandinvestmentproperties | 106,244,432.76 | 91,786,656.69 |
| Depreciationofright-of-useassets | 655,157,953.51 | - |
| Amortizationofintangibleassets | 30,227,090.99 | 24,468,087.41 |
| Amortizationoflong-termprepaidexpenses | 107,972,512.86 | 89,855,668.31 |
| Gainsondisposaloffixedassets | (2,340,925.97) | (7,047,367.28) |
| Financecosts | 207,214,696.42 | 81,747,385.77 |
| Investmentincome | (246,185,242.97) | (258,524,453.70) |
| Increaseindeferredtaxassets | (4,532,447.06) | (2,488,130.63) |
| Increaseindeferredtaxliabilities | 9,164,384.43 | 2,768,712.60 |
| Increaseininventories | (524,154,050.42) | (608,950,788.81) |
| Increaseinoperatingreceivablesitems | (818,470,196.97) | (1,663,980,387.42) |
| Increaseinoperatingpayableitems | 1,059,506,443.67 | 2,296,682,476.23 |
| Increaseinrestrictedoperatingcashwithrestriction | (119,943,642.99) | (75,185,703.66) |
| Netcashgeneratedfromoperatingactivities | 2,000,352,083.20 | 1,322,606,352.27 |
Movementofcash2019
| 2019 | 2018 |
| Cashattheendofyear | 8,422,676,765.48 | 7,632,117,020.77 |
| Less:Cashatthebeginningofyear | 7,632,117,020.77 | 3,673,498,691.48 |
| Netincreaseincash | 790,559,744.71 | 3,958,618,329.29 |
VNotestotheconsolidatedfinancialstatements(Continued)
59.Supplementaryinformationofthecashflowstatement(Continued)
| (2) | Acquisitionanddisposalofsubsidiariesandotheroperatingunits |
| Acquisitionofsubsidiariesandotheroperatingunits | ||
| 2019 | 2018 |
| Priceofacquiringsubsidiariesandotheroperatingunits | 143,993,800.00 | 19,920,651.60 |
| Including:GuodaPu’er | 90,000,000.00 | - |
| GuodaPharmacyYongxingtangChainStore(Chaoyang)Co.,Ltd. | 30,000,000.00 | - |
| InnerMongoliaTongren | 17,320,000.00 | - |
| GuangzhouMedicine | 6,660,000.00 | - |
| GuodaPharmacy(Chaoyang)RenaiPharmacyCo.,Ltd.(“ChaoyangRenai”) | 13,800.00 | - |
| SinopharmGuangzhouHuaduCo.,Ltd.(“SinopharmHuadu”) | - | 16,380,000.00 |
| SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.(Formerlyas"ShanxiZhongaoPharmaceuticalCo.,Ltd.") | - | 450,651.60 |
| TaiyuanTongxinli | - | 3,090,000.00 |
| Cashandcashequivalentspaidforacquisitionsofsubsidiariesandotheroperatingunits | 106,262,760.00 | 19,920,651.60 |
| Including:GuodaPu’er | 54,000,000.00 | - |
| GuodaPharmacyYongxingtangChainStore(Chaoyang)Co.,Ltd. | 30,000,000.00 | - |
| InnerMongoliaTongren | 15,600,000.00 | - |
| GuangzhouMedicine | 6,660,000.00 | - |
| ChaoyangRenai | 2,760.00 | - |
| SinopharmHuadu | - | 16,380,000.00 |
| SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd. | - | 450,651.60 |
| TaiyuanTongxinli | - | 3,090,000.00 |
| Less:Cashandcashequivalentsheldbysubsidiariesandotheroperatingunitsattheacquisitiondate | 8,460,831.84 | 22,389,173.93 |
| Including:GuodaPu’er | 3,160,882.96 | - |
| GuangzhouMedicine | 4,477,124.50 | - |
| ChaoyangRenai | 822,824.38 | - |
| GuodaTaishan | - | 21,146,145.15 |
| ShanxiZhong’ao | - | 1,160,397.85 |
| TaiyuanTongxinli | - | 82,630.93 |
| Netcashoutflow/(inflow)onacquisitionofthesubsidiariesandotheroperatingunits | 97,801,928.16 | (2,468,522.33) |
VNotestotheconsolidatedfinancialstatements(Continued)
59.Supplementaryinformationofthecashflowstatement(Continued)
| (2) | Acquisitionanddisposalofsubsidiariesandotheroperatingunits(Continued) |
Disposalofsubsidiariesandotheroperatingunits2019
2019Priceofdisposingofsubsidiariesandotheroperatingunits
| Priceofdisposingofsubsidiariesandotheroperatingunits | 1,530,000.00 | |
| Including:QinhuangdaoGuodaPharmacyChainStoreCo.,Ltd. | 1,530,000.00 |
| Cashandcashequivalentsreceivedfordisposalsofsubsidiariesandotheroperatingunits | 1,530,000.00 |
| Less:Cashandcashequivalentsheldbyformersubsidiariesandotheroperatingunits | 738,535.24 | |
| Including:QinhuangdaoGuodaPharmacyChainStoreCo.,Ltd. | 738,535.24 |
| Netcashinflowondisposalofthesubsidiariesandotheroperatingunits | 791,464.76 |
| Cash | ||
| 2019 | 2018 | |
| Cashonhand | 5,077,406.65 | 5,587,191.18 |
| Bankdepositsondemand | 8,417,599,358.83 | 7,626,529,829.59 |
| Cashbalanceattheendoftheyear | 8,422,676,765.48 | 7,632,117,020.77 |
VNotestotheconsolidatedfinancialstatements(Continued)
60.Assetsunderrestrictedownershiporrighttouse
| 2019 | 2018 | Note |
| Cashandcashequivalents | 442,672,297.43 | 457,664,283.79 | Note1 |
| Notesreceivablethatwerediscounted | 64,038,348.12 | 170,013,427.11 | Note2 |
| Notesreceivablethatwereendorsed | - | 301,416.00 | Note3 |
| 506,710,645.55 | 627,979,126.90 |
Note1:At31December2019,theGrouphadbankacceptancebillsdeposits,depositsforlettersof
creditaswellasfixeddepositsornoticedepositsofRMB442,672,297.43(31December2018:
RMB457,664,283.79)(NoteV(1)).Note2:At31December2019,theGrouphadcommercialacceptancebillsreceivableof
RMB64,038,348.12,discountedbutnotpastdue(31December2018:RMB170,013,427.11)
(NoteV(2)).Note3:At31December2019,theGrouphadcommercialacceptancebillsreceivableofRMB0.00,
endorsedbutnotpastdue(31December2018:RMB301,416.00)(NoteV(2)).
61.Foreignmonetaryitems
| 31December2019 | 31December2018 | ||||
| Originalcurrency | Exchangerate | EquivalenttoRMB | Originalcurrency | Exchangerate | EquivalenttoRMB |
| Short-termborrowings | - | - | - | - | - | - |
| UnitedStatesdollar(Note) | - | - | - | 10,585,564.96 | 6.9579 | 73,653,234.88 |
| - | 73,653,234.88 |
Note:Accordingtoarelatedcontract,currencyexchangewillbesettledwiththeapplicablesaleexchangequotationonthedateonwhichrepaymentisdeducted.
VIChangesinthescopeofconsolidation
1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol
1.1AcquiringGuangzhouMedicine
Inthecurrentyear,theGroupacquireda70%stakeofGuangzhouSenmingyouhePharmaceuticalCo.,Ltd.forRMB6,660,000.00toconstituteabusinesscombinationinvolvingenterprisesnotundercommoncontrol.Aftertheacquisition,thecompanywasrenamedasSinopharmAccord(Guangzhou)MedicineCo.,Ltd.Theacquisitionwascompletedon31August2019.ThefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesandcontingentliabilitiesofGuangzhouMedicineontheacquisitiondatearepresentedasfollows:
| 31August2019 | 31August2019 |
| Fairvalue | Carryingamount |
| Cashandbankbalances | 4,477,124.50 | 4,477,124.50 | |
| Accountsreceivable | 7,222,433.73 | 7,222,433.73 | |
| Advancestosuppliers | 153,846.66 | 153,846.66 | |
| Otherreceivables | 74,747.62 | 74,747.62 | |
| Inventories | 1,625,509.09 | 1,625,509.09 | |
| Othercurrentassets | 127,418.79 | 127,418.79 | |
| Fixedassets | 86,346.76 | 86,346.76 | |
| Deferredtaxassets | 1,229.69 | 1,229.69 | |
| Accountspayable | 3,163,385.02 | 3,163,385.02 | |
| Contractliabilities | 12,208.44 | 12,208.44 | |
| Employeebenefitspayable | 219,425.04 | 219,425.04 | |
| Taxpayable | 24,756.76 | 24,756.76 | |
| Otherpayables | 834,595.87 | 834,595.87 |
| Netassets | 9,514,285.71 | 9,514,285.71 |
| Less:Non-controllinginterests | 2,854,285.71 | 2,854,285.71 |
| Netassetsacquired | 6,660,000.00 | 6,660,000.00 |
| Amountexceedingthecostofmergerrecognisedasprofitorlossinthecurrentperiod | - |
| 6,660,000.00 | (Note) |
Note:TheamountreferstothecashpaymentofRMB6,660,000.00thattheGrouppaidinacquisition.OperatingresultsandcashflowsofGuangzhouMedicinefortheperiodfromtheacquisitiondatetothe
endoftheyeararepresentedasfollows:
Periodfrom31August2019to
31December2019Operatingrevenue
| Operatingrevenue | 7,137,510.03 | |
| Netprofit | 156,140.70 | |
| Netcashflows | 2,293,658.52 |
VIChangesinscopeofconsolidation(Continued)
1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)
1.2Acquiringthemanagementrightof12storesofInnerMongoliaTongren
Inthecurrentyear,SinopharmHoldingGuodaPharmacyBayannurCo.,Ltd.,asubsidiaryoftheGroup,obtainedthemanagementrightof12storesofInnerMongoliaTongrenwithcashofRMB17,320,000.00.Theacquisitionwascompletedon31March2019.Thefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesaswellascontingentliabilitiesofthemanagementrightof12storesofInnerMongoliaTongrenontheacquisitiondatearepresentedasfollows:
| 31March2019 | 31March2019 |
| Fairvalue | Carryingamount |
| Fixedassets | 513,000.00 | 513,000.00 | |
| Intangibleassets | 106,800.00 | 106,800.00 | |
| Inventories | 3,206,200.00 | 3,206,200.00 |
| Netassets | 3,826,000.00 | 3,826,000.00 |
| Netassetsacquired | 3,826,000.00 | 3,826,000.00 |
| Goodwillarisingfromacquisition | 13,494,000.00 |
| 17,320,000.00 | (Note) |
Note:TheamountreferstothecashpaymentofRMB17,320,000.00theGrouppaidinacquisition.Operatingresultsandcashflowsofthemanagementrightof12storesofInnerMongoliaTongrenfortheperiodfromtheacquisitiondatetotheendoftheyeararepresentedasfollows:
Periodfrom31March2019to
31December2019Operatingrevenue
| Operatingrevenue | 21,959,113.73 | |
| Netprofit | 833,651.52 | |
| Netcashflows | (4,225,240.76) |
VIChangesinscopeofconsolidation(Continued)
1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)
1.3Acquiringthemanagementrightof31storesofChaoyangYongxingtang
Inthecurrentyear,GuodaYongxingtang,asubsidiaryoftheGroup,obtainedthemanagementrightof31storesofChaoyangYongxingtangwithcashofRMB30,000,000.00.Theacquisitionwascompletedon31May2019.Thefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesaswellascontingentliabilitiesofthemanagementrightof31storesofChaoyangYongxingtangontheacquisitiondatearepresentedasfollows:
| 31May2019 | 31May2019 |
| Fairvalue | Carryingamount |
| Inventories | 4,800,000.00 | 4,800,000.00 | |
| Fixedassets | 248,797.14 | 248,797.14 | |
| Intangibleassets | 17,126.97 | 17,126.97 | |
| Deferredtaxassets | 346,441.10 | 346,441.10 | |
| Othernon-currentliabilities | 1,385,764.38 | 1,385,764.38 |
| Netassets | 4,026,600.83 | 4,026,600.83 |
| Netassetsacquired | 4,026,600.83 | 4,026,600.83 |
| Goodwillarisingfromacquisition | 25,973,399.17 |
| 30,000,000.00 | (Note) |
Note:TheamountreferstothecashpaymentofRMB30,000,000.00theGrouppaidintheacquisition.Operatingresultsandcashflowsofthemanagementrightof31storesofChaoyangYongxingtangfortheperiodfromtheacquisitiondatetotheendoftheyeararepresentedasfollows:
Periodfrom31May2019to
31December2019Operatingrevenue
| Operatingrevenue | 44,268,861.28 | |
| Netprofit | 1,260,375.96 | |
| Netcashflows | (69,401.06) |
VIChangesinscopeofconsolidation(Continued)
1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)
1.4
AcquiringGuodaPu’er
Inthecurrentyear,GuodaPharmacy,asubsidiaryoftheGroup,acquired60%sharesofPu'erSongmaoJiantangPharmaceuticalCo.,Ltd.withcashofRMB90,000,000.00.Aftertheacquisition,thecompanywasrenamedasGuodaPharmacy(Pu’er)SongmaoCo.,Ltd.Theacquisitionwascompletedon30November2019.ThefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesandcontingentliabilitiesofGuodaPu’erontheacquisitiondatearepresentedasfollows:
| 30November2019 | 30November2019 |
| Fairvalue | Carryingamount |
| Cashandbankbalances | 3,160,882.96 | 3,160,882.96 | |
| Accountsreceivable | 11,146,573.20 | 11,146,573.20 | |
| Advancestosuppliers | 2,257,777.79 | 2,257,777.79 | |
| Otherreceivables | 16,020,033.25 | 16,020,033.25 | |
| Inventories | 30,951,227.65 | 30,951,227.65 | |
| Fixedassets | 598,797.73 | 598,797.73 | |
| Intangibleassets | 764,535.25 | 764,535.25 | |
| Long-termprepaidexpenses | 4,962,412.84 | 4,962,412.84 | |
| Deferredtaxassets | 42,970.32 | 42,970.32 | |
| Accountspayable | 25,863,250.94 | 25,863,250.94 | |
| Contractliabilities | 780,565.05 | 780,565.05 | |
| Employeebenefitspayable | 2,135,940.00 | 2,135,940.00 | |
| Taxpayable | 3,358,307.15 | 3,358,307.15 | |
| Otherpayables | 6,208,289.17 | 6,208,289.17 |
| Netassets | 31,558,858.68 | 31,558,858.68 |
| Less:Non-controllinginterests | 12,623,543.47 | 12,623,543.47 |
| Netassetsacquired | 18,935,315.21 | 18,935,315.21 |
| Goodwillarisingfromacquisition | 71,064,684.79 |
| 90,000,000.00 | (Note) |
Note:
TheamountreferstothecashpaymentofRMB90,000,000.00theGrouppaidinacquisition.OperatingresultsandcashflowsofGuodaPu’erfortheperiodfromtheacquisitiondatetotheendoftheyeararepresentedasfollows:
Periodfrom30November2019to
31December2019Operatingrevenue
| Operatingrevenue | 13,032,058.57 | |
| Netprofit | (227,234.08) | |
| Netcashflows | 2,228,990.37 |
VIChangesinscopeofconsolidation(Continued)
1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)
1.5
AcquiringChaoyangRenaiIn2019,GuodaShenyang,thesubsidiaryoftheGroup,acquired51%equityofChaoyangRenaifromChaoyangMingyangBusinessServiceCo.,Ltd.withRMB13,800.00andachievedthecontrollingstakeofChaoyangRenai.Theacquisitionwascompletedon31October2019.ThefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesandcontingentliabilitiesofChaoyangRenaiontheacquisitiondatearepresentedasfollows:
| 31October2019 | 31October2019 |
| Fairvalue | Carryingamount |
| Cashandbankbalances | 822,824.38 | 822,824.38 | |
| Accountsreceivable | 8,358.66 | 8,358.66 | |
| Advancestosuppliers | 77,059.76 | 77,059.76 | |
| Inventories | 1,318,528.38 | 1,318,528.38 | |
| Fixedassets | 46,082.68 | 46,082.68 | |
| Long-termprepaidexpenses | 95,977.68 | 95,977.68 | |
| Contractliabilities | 13,020.00 | 13,020.00 | |
| Accountspayable | 2,261,755.44 | 2,261,755.44 | |
| Employeebenefitspayable | 10,560.00 | 10,560.00 | |
| Taxpayable | 33,073.49 | 33,073.49 | |
| Otherpayables | 23,335.07 | 23,335.07 |
| Netassets | 27,087.54 | 27,087.54 |
| Less:Non-controllinginterests | 13,272.89 | 13,272.89 |
| Netassetsacquired | 13,814.65 | 13,814.65 |
| Amountexceedingthecostofmergerrecognisedasprofitorlossinthecurrentperiod | 14.65 |
| 13,800.00 | (Note) |
Note:TheamountreferstothecashpaymentofRMB13,800.00theGrouppaidinacquisition.OperatingresultsandcashflowsofChaoyangRenaifortheperiodfromtheacquisitiondatetotheendoftheyeararepresentedasfollows:
Periodfrom31October2019to
31December2019Operatingrevenue
| Operatingrevenue | 4,289,886.90 | |
| Netprofit | 71,324.46 | |
| Netcashflows | (270,002.50) |
VIChangesinscopeofconsolidation(Continued)
2.Disposalofsubsidiaries
| Placeofregistration | Businessnature | TotalshareholdingratiooftheGroup（%） | ProportionofvotingrightsownedbytheGroup（%） | Reasonfornolongerbeingasubsidiary |
| QinhuangdaoGuodaPharmacyChainStoreCo.,Ltd. | Qinhuangdao | Commercial | 51.00 | 51.00 | Transfer |
HebeiLerentang,asubsidiaryoftheGroup,signedanequitytransferagreementwithWengongtosellits51%equityinQinhuangdaoGuodaPharmacyChainStoreCo.,Ltd.forRMB1,530,000.00.Thedisposalwascompletedon1January2019.Therefore,from1January2019,theGroupwouldnolongerincludeQinhuangdaoGuodaPharmacyChainStoreCo.,Ltd.inthescopeofconsolidation.RelevantfinancialinformationofQinhuangdaoGuodaPharmacyChainStoreCo.,Ltd.islistedasfollows:
| 1January2019 | 31December2018 | |
| Carryingamount | Carryingamount |
| Currentassets | 2,846,730.64 | 2,846,730.64 | ||
| Non-currentassets | 916,984.74 | 916,984.74 | ||
| Currentliabilities | 2,561,667.49 | 2,561,667.49 | ||
| Non-currentliabilities | 4,883.28 | 4,883.28 |
| 1,197,164.61 | 1,197,164.61 |
| Less:Non-controllinginterests | 586,610.66 | 586,610.66 |
| Fairvalueofremainingequity | 610,553.95 | 610,553.95 |
| Disposalgainsandlosses | 919,446.05 |
| Disposalconsideration | 1,530,000.00 |
VIChangesinscopeofconsolidation(Continued)
3.Establishmentofsubsidiaries
| 31December2019Netassets | 2019Netprofit | |
| LiaoningGuodaPharmaceuticalCo.,Ltd.(a) | 24,028,617.28 | 4,028,617.28 |
| GuodaYongxingtang(b) | 33,260,375.96 | 1,260,375.96 |
| SinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.(c) | - | - |
| SinopharmAccordMedicialSupplyChain(Shenzhen)Co.,Ltd.(d) | 32,791,820.49 | (538,179.51) |
| SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.(e) | 3,800,554.06 | (1,199,445.94) |
PharmaceuticalCo.,Ltd.Asattheendof2019,paymenthasbeencompleted.
（b）On30April2019,theGroupandChaoyangBoweiConsultingServiceCo.,Ltd.(“Bowei
Consulting”)accumulativelyinvestedRMB19,380.00thousandandRMB18,620.00thousandtoestablishChaoyangYongxingtangrespectively.Aftertheestablishment,theGroupheld51%ofequityinterestinthecompany.Asattheendof2019,theGroupinvestedRMB16,320.00thousandandBoweiConsultinginvestedRMB15,680.00thousand.
（c）On26March2019,theGroupandZhanjiangGuangyiPharmaceuticalTechnology
DevelopmentCo.,Ltd.accumulativelyinvestedRMB300.00thousandandRMB200.00thousandtoestablishSinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld60%ofequityinterestinthecompany.Asattheendof2019,paymenthasnotbeencompletedyet.
（d）On21August2019,theGroupandShenzhenKetaiMedicialScienceandTechnologyCo.,Ltd.
accumulativelyinvestedRMB19,998.00thousandandRMB13,332.00thousandtoestablishSinopharmAccordMedicialSupplyChain(Shenzhen)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld60%ofequityinterestinthecompany.Asattheendof2019,paymenthasbeencompleted.
（e）On14August2019,theGroupandHeyuanMairuiTradingCo.,Ltd.accumulativelyinvested
RMB3,500.00thousandandRMB1,500.00thousandtosetupSinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld70%ofequityinterestinthecompany.Asattheendof2019,paymenthasbeencompleted.
VIChangesinscopeofconsolidation(Continued)
4.Cancellationofsubsidiary
| Principalplaceofbusiness | Placeofestablishment | Registeredcapital(RMB‘0,000) | Natureofbusiness | Shareholding(%) | Reasonfornolongerbeingasubsidiary | |
| Direct | Indirect | |||||
| BeijingJinxiangFuxingTechnologyCo.,Ltd. | Beijing | Beijing | 100.00 | Commercial | - | 80.00 | Cancellationofcompany |
| SanheLixinJinxiangPharmacyCo.,Ltd.(a) | Langfang | Langfang | 1.00 | Commercial | - | 100.00 | Cancellationofcompany |
approved,yettheproceduresforindustrialandcommercialcancellationwerestillprocessing.Asofthedateofthefinancialstatements,theproceduresforindustrialandcommercialcancellationhavenotbeencompleted.
VIIInterestsinotherentities
1.Interestsinsubsidiaries
ThesubsidiariesoftheGroup
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB0.000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| SinopharmGuilin | Guilin | Guilin | Commercial | 2,000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmBaise | Baise | Baise | Commercial | 3,500.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingZhongshanCo.,Ltd. | Zhongshan | Zhongshan | Commercial | 3,000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmGuigang | Guigang | Guigang | Commercial | 2,000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmBeihai | Beihai | Beihai | Commercial | 1,500.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingGuangzhouMedicalTreatment | Guangzhou | Guangzhou | Commercial | 2,000.00 | - | 51.00% | 51.00% | Establishment |
| ShenzhenJianminPharmaceuticalCo.,Ltd.(“SinopharmJianmin") | Shenzhen | Shenzhen | Commercial | 2,000.00 | 100.00% | - | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd.(“SinopharmTraditional&HerbalMedicine") | Shenzhen | Shenzhen | Commercial | 1,500.00 | 100.00% | - | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingShenzhenLogisticsCo.,Ltd.(“ShenzhenLogistics") | Shenzhen | Shenzhen | Services | 500.00 | 100.00% | - | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuangzhou | Guangzhou | Guangzhou | Commercial | 355,325.00 | 100.00% | - | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuangdongHengxingCo.,Ltd.(“SinopharmHengxing") | Guangzhou | Guangzhou | Commercial | 9,600.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmYulin | Yulin | Yulin | Commercial | 1,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1. | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB0.000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| SinopharmLiuzhou | Liuzhou | Liuzhou | Commercial | 2,053.06 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangdongHuixinInvestmentCo.,Ltd.(“HuixinInvestment”) | Guangzhou | Guangzhou | Services | 500.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingFoshanCo.,Ltd.(“SinopharmFoshan") | Foshan | Foshan | Commercial | 4,100.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuangdongYuexingCo.,Ltd.(“SinopharmYuexing”) | Guangzhou | Guangzhou | Commercial | 23,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuangdongLogisticsCo.,Ltd.(“GuangdongLogistic”) | Guangzhou | Guangzhou | Services | 1,300.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuangxi | Nanning | Nanning | Commercial | 52,141.00 | 100.00% | - | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangxiLogistic | Nanning | Nanning | Services | 710.07.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmWuzhou | Wuzhou | Wuzhou | Commercial | 1,000.00 | - | 99.90% | 99.90% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmDongguan | Dongguan | Dongguan | Commercial | 7,300.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmZhanjiang | Zhanjiang | Zhanjiang | Commercial | 13,100.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmYanfeng | Shenzhen | Shenzhen | Commercial | 3,000.00 | 51.00% | - | 51.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmMeizhou | Meizhou | Meizhou | Commercial | 4,800.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| SinopharmHuizhou | Huizhou | Huizhou | Commercial | 3,800.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmZhaoqing | Zhaoqing | Zhaoqing | Commercial | 4,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmJiangmen(a) | Jiangmen | Jiangmen | Commercial | 6,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmShaoguan | Shaoguan | Shaoguan | Commercial | 360.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingShantouCo.,Ltd.("SinopharmShantou” | Shantou | Shantou | Commercial | 2,100.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| FoshanNanhaiMedicineCo.,Ltd. | Foshan | Foshan | Commercial | 7,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FoshanNanhaiUptodate&SpecialMedicinesCo.,Ltd. | Foshan | Foshan | Commercial | 4,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FoshanNanhaiMedicineCo.,Ltd. | Foshan | Foshan | Commercial | 4,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangdongUptodate&SpecialMedicines | Guangzhou | Guangzhou | Commercial | 5,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SouthPharma&Trade | Guangzhou | Guangzhou | Commercial | 3,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmZhuhai | Zhuhai | Zhuhai | Commercial | 3,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmMaoming | Maoming | Maoming | Commercial | 200.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGuangzhouMedicalTechnologyCo.,Ltd. | Guangzhou | Guangzhou | Commercial | 588.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmHoldingGuangzhouMedicalSupplyChainServiceCo.,Ltd.(b) | Guangzhou | Guangzhou | Commercial | 2,000.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmHoldingHeyuanCo.,Ltd. | Heyuan | Heyuan | Commercial | 1,340.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| GuodaPharmacy | Shanghai | Shanghai | Commercial | 168,333.00 | 60.00% | - | 60.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuodaShanghai | Shanghai | Shanghai | Commercial | 3,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| BeijingGuodaPharmacyChainStoreCo.,Ltd. | Beijing | Beijing | Commercial | 1,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| TianjinGuodaPharmacyChainStoreCo.,Ltd. | Tianjin | Tianjin | Commercial | 1,000.00 | - | 80.00% | 80.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuangxiGuodaPharmacyConsultingChainStoreCo.,Ltd. | Nanning | Nanning | Commercial | 300.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyGuangdongCo.,Ltd. | Shenzhen | Shenzhen | Commercial | 5,000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuodaPharmacyGuangxiChainCo.,Ltd. | Liuzhou | Liuzhou | Commercial | 200.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ZhejiangGuodaPharmacyCo.,Ltd. | Hangzhou | Hangzhou | Commercial | 1,500.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd. | Yangzhou | Yangzhou | Commercial | 4,400.00 | - | 93.68% | 93.68% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| NingxiaGuodaPharmacyChainStoreCo.,Ltd. | Yinchuan | Yinchuan | Commercial | 7,000.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd. | Nanjing | Nanjing | Commercial | 800.00 | - | 60.00% | 60.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd. | Linyi | Linyi | Commercial | 2,900.00 | - | 55.00% | 55.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuodaShenyang(c) | Shenyang | Shenyang | Commercial | 5,000.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| FujianGuodaPharmacyChainStoreCo.,Ltd. | Xiamen | Xiamen | Commercial | 3,750.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| AnhuiGuodaPharmacyChainStoreCo.,Ltd. | Hefei | Hefei | Commercial | 1,000.00 | - | 60.00% | 60.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuodaQuanzhou | Quanzhou | Quanzhou | Commercial | 2,000.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiWanmin | Taiyuan | Taiyuan | Commercial | 2,000.00 | - | 85.00% | 85.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd. | Hengyang | Hengyang | Commercial | 2,000.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd. | Liyang | Liyang | Commercial | 2,500.00 | - | 80.00% | 80.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd. | Pingdingshan | Pingdingshan | Commercial | 1,500.00 | - | 60.00% | 60.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| GuodaInnerMongolia | Hohhot | Hohhot | Commercial | 5,000.00 | - | 96.70% | 96.70% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| HebeiLerentang | Shijiazhuang | Shijiazhuang | Commercial | 3,500.00 | - | 60.00% | 60.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd. | Jiangmen | Jiangmen | Commercial | 2,400.00 | - | 65.00% | 65.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd. | Taiyuan | Taiyuan | Commercial | 1,000.00 | - | 80.00% | 80.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| XinjiangNew&SpecialMedicines | Urumqi | Urumqi | Commercial | 612.24 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ForMeMedicines | Shanghai | Shanghai | Commercial | 6,655.00 | - | 97.00% | 97.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ForMePharmacyChainStore | Shanghai | Shanghai | Commercial | 5,000.00 | - | 99.76% | 99.76% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited | Beijing | Beijing | Commercial | 4,222.22 | - | 53.13% | 53.13% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiTongfengPharmacyLogisticsCo.,Ltd. | Taiyuan | Taiyuan | Commercial | 500.00. | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ChangzhiGuodaWanminPharmacyChainStoreCo.,Ltd. | Changzhi | Changzhi | Commercial | 320.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanxiGuodaWanminClinicManagementChainCo.,Ltd. | Taiyuan | Taiyuan | Medicalservices | 120.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 100.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ZhejiangIntlmedicinePharmacyDongshanCo.,Ltd. | Hangzhou | Hangzhou | Commercial | 50.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaDongshengPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 50.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmGuodaDrugStore(Shenzhen)ChainCo.,Ltd. | Shenzhen | Shenzhen | Commercial | 1,080.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyGuangzhouChainCo.,Ltd. | Guangzhou | Guangzhou | Commercial | 200.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodongChineseTraditionalMedicineClinicCo.,Ltd. | Shanghai | Shanghai | Medicalclinic | 20.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiGuodaDongxinPharmacyChainStoreCo.,Ltd. | Shanghai | Shanghai | Commercial | 30.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| ShanghaiYutaitangChineseTraditionalMedicineClinicCo.,Ltd. | Shanghai | Shanghai | Commercial | 100.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SanheLiyangGoldenElephantPharmacyCo.,Ltd. | Langfang | Langfang | Commercial | 1.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd. | Xiaoyi | Xiaoyi | Commercial | 622.22 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingGuodaPharmacyHulunBuirCo.,Ltd. | HulunBuir | HulunBuir | Commercial | 1000.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| ShanghaiForMeXuhuiPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 25.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmHoldingUlanqabCo.,Ltd. | Ulanqab | Ulanqab | Commercial | 500.00 | - | 60.00% | 60.00% | Establishment |
| GuodaTaishan. | Taishan | Taishan | Commercial | 990.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| SinopharmLerentangShijiazhuangPharmaceuticalCo.,Ltd. | Shijiazhuang | Shijiazhuang | Commercial | 200.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesundercommoncontrol |
| VII. | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| SinopharmHoldingGuodaDrugStoreManchuriaCo.,Ltd. | Manchuria | Manchuria | Commercial | 50.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmGuodaDrugStoreAnshanChainCo.,Ltd. | Anshan | Anshan | Commercial | 600.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmHoldingGuodaYongshengDrugStore（Shanghai）Co.,Ltd. | Shanghai | Shanghai | Commercial | 80.00 | - | 55.00% | 55.00% | Establishment |
| SinopharmHoldingFoshanMedicalConsumablesSupplyChainCo.,Ltd. | Foshan | Foshan | Commercial | 800.00 | - | 70.00% | 70.00% | Establishment |
| SinopharmHoldingMedicalSupplyChainService(Guangxi)Co.,Ltd. | Nanning | Nanning | Commercial | 2000.00 | - | 30.60% | 30.60% | Establishment |
| ShanghaiGuodaHaohaiPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 80.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmHoldingBaiyiPharmacyGuangxiCo.,Ltd. | Nanning | Nanning | Commercial | 200.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmHoldingHezhouCo.,Ltd. | Hezhou | Hezhou | Commercial | 1000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingGuodaPharmacyZhengzhouChainStoreCo.,Ltd | Zhengzhou | Zhengzhou | Commercial | 2000.00 | - | 60.00% | 60.00% | Establishment |
| ShanghaiGuodaRuijingPharmacyCo.,Ltd. | Shanghai | Shanghai | Commercial | 80.00 | - | 55.00% | 55.00% | Establishment |
| FujianGuodaPharmaceuticalCo.,Ltd. | Xiamen | Xiamen | Commercial | 1500.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingQinzhouCo.,Ltd. | Qinzhou | Qinzhou | Commercial | 1000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingHechiCo.,Ltd. | Hechi | Hechi | Commercial | 1000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHuadu | Guangzhou | Guangzhou | Commercial | 1000.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.(d) | Taiyuan | Taiyuan | Commercial | 1000.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| TaiyuanTongxinli | Taiyuan | Taiyuan | Commercial | 560.00 | - | 100.00% | 100.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| VII. | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)
Subsidiaries
| Subsidiaries | Principalplaceofbusiness | Placeofestablishment | Natureofbusiness | Registeredcapital(RMB‘0,000) | Shareholding | Votingproportion | Waysofacquisition | |
| Direct | Indirect | |||||||
| SinopharmHoldingGuodaPharmacyBayannurCo.,Ltd.(e) | Bayannur | Bayannur | Commercial | 2,000.00 | - | 80.00% | 80.00% | Establishment |
| InnerMongoliaGuodaPharmaceuticalCo.,Ltd.(f) | Hohhot | Hohhot | Commercial | 2,000.00 | - | 100.00% | 100.00% | Establishment |
| GuodaYongxingtang.(g) | Chaoyang | Chaoyang | Commercial | 3,800.00 | - | 51.00% | 51.00% | Establishment |
| SinopharmAccordMedicialSupplyChain(Shenzhen)Co.,Ltd.(h) | Shenzhen | Shenzhen | Commercial | 3,333.00 | 60.00% | - | 60.00% | Establishment |
| SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.(i) | Heyuan | Heyuan | Commercial | 500.00 | - | 70.00% | 70.00% | Establishment |
| LiaoningGuodaPharmaceuticalCo.,Ltd.(j) | Shenyang | Shenyang | Commercial | 2,000.00 | - | 100.00% | 100.00% | Establishment |
| SinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.(k) | Zhanjiang | Zhanjiang | Commercial | 50.00 | - | 60.00% | 60.00% | Establishment |
| GuangzhouMedicine(l) | Guangzhou | Guangzhou | Commercial | 200.00 | - | 70.00% | 70.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| ChaoyangRenai(m) | Chaoyang | Chaoyang | Commercial | 50.00 | - | 51.00% | 51.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| GuodaPu’er(n) | Pu’er | Pu’er | Commercial | 500.00 | - | 60.00% | 60.00% | Businesscombinationsinvolvingentitiesnotundercommoncontrol |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
| ThesubsidiariesoftheGroup(Continued) | |
| (a) | On13March2019,SinopharmJiangmenwasrenamedas“SinopharmHolding(Jiangmen)Co.,Ltd. |
| (b) | On26July2019,theregisteredcapitalofSinopharmGuangzhouMedicalSupplyChainServiceCo.,Ltd.waschangedfromRMB3,200.00thousandtoRMB20,000.00thousand.Afterthechange,theGroupsubscribedRMB10,200.00thousandofregisteredcapita;GuorunMedicialSupplyChainService(Shanghai)Co.,Ltd.subscribedRMB8,000.00thousandofregisteredcapital;andGuangzhouMedicalUnionSupplyChainInvestmentPartnershipLPsubscribedRMB1,800thousandofregisteredcapital.Asattheendof2019,paymenthasbeencompleted. |
| (c) | Accordingtotheresolutionofthefirstshareholders'meetingin2019,itwasagreedtoconvertRMB32,000.00thousandoftheundistributedprofitsofSinopharmHoldingShenyangChainCo.,Ltd.asof31December2017intoregisteredcapitalaccordingtotheshareholdingratioofshareholders.Theindustrialandcommercialchangewascompletedon8July2019.TheregisteredcapitalofSinopharmShenyangwaschangedfromRMB18,000.00thousandtoRMB50,000.00thousand.Afterthechange,theGroupsubscribedRMB25,500.00thousandofregisteredcapital;ShenzhenJiufengInvestmentCo.,Ltd.subscribedRMB20,500.00thousandofregisteredcapital;andShenyangPharmaceuticalCo.,Ltd.subscribedRMB4,000.00thousandofregisteredcapital.Afterthechange,theshareholdingratiooftheGrouptoGuodaShenyangremainsunchanged. |
| (d) | On1February2019,ShanxiZhong’aoPharmaceuticalCo.,Ltd.wasrenamedas“SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.” |
| (e) | On5November2018,theGroupandHohhotManshengyuanTradingCo.,Ltd.accumulativelyinvestedRMB16,000.00thousandandRMB4,000.00thousandtosetupSinopharmHoldingGuodaPharmacyBayannurCo.,Ltd.,respectively.Aftertheestablishment,theGroupheld80%ofequityinterestinthecompany.Asattheendof2019,paymenthasbeencompleted. |
(f)On17September2018,theGroupinvestedRMB20,000.00thousandtosetupInnerMongoliaGuodaPharmaceuticalCo.,Ltd.Asattheendof2019,paymenthasbeencompleted.
| (g) | On30April2019,theGroupandBoweiConsultingaccumulativelyinvestedRMB19,380.00thousandandRMB18,620.00thousandtoestablishChaoyangYongxingtang,respectively.Aftertheestablishment,theGroupheld51%ofequityinterestinthecompany.Asattheendof2019,theGroupinvestedRMB16,320.00thousandandBoweiConsultinginvestedRMB15,680.00thousand. |
| (h) | On21August2019,theGroupandShenzhenKetaiMedicialScienceandTechnologyCo.,Ltd.accumulativelyinvestedRMB19,998.00thousandandRMB13,332.00thousandtoestablishSinopharmAccordMedicialSupplyChain(Shenzhen)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld60%ofequityinterestinthecompany.Asattheendof2019,paymenthasbeencompleted. |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
ThesubsidiariesoftheGroup(Continued)(i)
| (i) | On14August2019,theGroupandHeyuanMairuiTradingCo.,Ltd.accumulativelyinvestedRMB3,500.00thousandandRMB1,500.00thousandtoestablishSinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld70%ofequityinterestinthecompany.Asattheendof2019,paymenthasbeencompleted. |
| (j) | On13August2019,theGroupinvestedRMB20,000.00thousandtosetupLiaoningGuodaPharmaceuticalCo.,Ltd.Asattheendof2019,paymenthasbeencompleted. |
| (k) | On26March2019,theGroupandZhanjiangGuangyiPharmaceuticalTechnologyDevelopmentCo.,Ltd.accumulativelyinvestedRMB300.00thousandandRMB200.00thousandtoestablishSinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.,respectively.Aftertheestablishment,theGroupheld60%ofequityinterestinthecompany.Asattheendof2019,paymenthasnotbeencompletedyet. |
| (l) | On17June2019,theGroupacquireda70%stakeofGuangzhouSenmingyouhePharmaceuticalCo.,Ltd.forRMB6,660.00thousandtoconstituteabusinesscombinationinvolvingenterprisesnotundercommoncontrol.Aftercompletingtheacquisition,thecompanywasrenamedasSinopharmAccord(Guangzhou)MedicineCo.,Ltd.Theacquisitionwascompletedon31August2019.Sincethen,theGroupincludedGuangzhouMedicineinthescopeofconsolidation. |
| (m) | On22October2019,theGroupacquired51%equityofChaoyangRenaifromChaoyangMingyangBusinessServiceCo.,Ltd.withRMB13,800.00andobtainedthecontrollingstakeofChaoyangRenai,constitutingabusinesscombinationinvolvingenterprisesnotundercommoncontrol.Theacquisitionwascompletedon31October2019.Sincethen,theGroupincludedChaoyangRenaiinthescopeofconsolidation. |
| (n) | On1December2019,theGroupacquired60%sharesofPu'erSongmaoJiantangPharmaceuticalCo.,Ltd.withRMB90,000,000.00.Aftercompletingtheacquisition,thecompanywasrenamedasGuodaPharmacy(Pu’er)SongmaoCo.,Ltd.Theacquisitionwascompletedon30November2019.Sincethen,theGroupincludedGuodaPu’erinthescopeofconsolidation. |
| VII | Interestsinotherentities(Continued) |
| 1． | Interestsinsubsidiaries(Continued) |
DetailsoftheGroup’ssubsidiariesthathavematerialnon-controllinginterestsaresetoutbelow:
2019
| Percentageofequityinterestheldbynon-controllinginterests | Profitforthisyearattributabletonon-controllinginterests | Dividendpaidtonon-controllinginterests | Accumulatedbalancesofnon-controllinginterestsatthedateofthebalancesheet |
| GuodaPharmacy | 40.00% | 98,483,012.12 | 33,647,705.09 | 1,812,816,542.62 |
Themajorfinancialinformationofthesubsidiariesinthetableaboveisstatedbelow.Theseamountsarebeforeelimination:
GuodaPharmacy2019
2019Currentassets
| Currentassets | 7,653,548,590.59 | |
| Non-currentassets | 3,520,209,007.35 |
| Totalassets | 11,173,757,597.94 |
| Currentliabilities | 5,107,687,171.29 | |
| Non-currentliabilities | 1,073,060,666.37 |
| Totalliabilities | 6,180,747,837.66 |
| Operatingrevenue | 12,753,608,498.70 | |
| Netprofit | 311,908,115.16 | |
| Totalcomprehensiveincome | 388,659,545.16 |
| Netcashflowsfromoperatingactivities | 1,342,032,291.80 |
VIIInterestsinotherentities(Continued)
2.Interestsinassociates
| Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Shareholding(%) | Accounting | ||
| Direct | Indirect | |||||
| Associates | ||||||
| MainLuckPharmaceutical | Shenzhen | Shenzhen | Manufacturing | 35.19 | - | Equity |
| ZhijunSuzhou | Suzhou | Suzhou | Manufacturing | 33.00 | - | Equity |
| ZhijunMedicine | Shenzhen | Shenzhen | Manufacturing | 49.00 | - | Equity |
| ZhijunTrade | Shenzhen | Shenzhen | Commercial | 49.00 | - | Equity |
| ZhijunPingshan | Shenzhen | Shenzhen | Manufacturing | 49.00 | - | Equity |
| ShyndecPharma | Shanghai | Shanghai | Manufacturing | 16.28 | - | Equity |
| ShanghaiDingqun | Shanghai | Shanghai | Businessservices | 2.53 | - | Equity |
| ShanghaiBeiyi | Shanghai | Shanghai | Commercial | - | 26.00 | Equity |
| ShanghaiLiyi | Shanghai | Shanghai | Commercial | - | 35.00 | Equity |
| GuangdongJienuo | Guangzhou | Guangzhou | Commercial | - | 29.00 | Equity |
| DongyuanAccord | Heyuan | Heyuan | Commercial | - | 45.00 | Equity |
| ShanghaiRenbei | Shanghai | Shanghai | Commercial | - | 30.00 | Equity |
| GuangdongJianhui | Zhanjiang | Zhanjiang | Commercial | - | 10.00 | Equity |
ShyndecPharmaandZhijunMedicineareimportantassociatesoftheGroupandareengagedintheproductionaswellassaleofpharmaceuticalproducts.TheGroupadoptedtheequitymethodforShyndecPharmaandZhijunMedicine.
VIIInterestsinotherentities(Continued)
2.Interestsinassociates(Continued)
ThefollowingtableillustratesthesummarisedfinancialinformationinrespectofShyndecPharma:
| 2019 | 2018 |
| Currentassets | 9,676,372,530.32 | 8,470,191,403.19 | |
| Non-currentassets | 7,962,091,231.68 | 7,993,673,189.70 |
| Totalassets | 17,638,463,762.00 | 16,463,864,592.89 |
| Currentliabilities | 6,491,804,082.54 | 6,568,480,863.79 | |
| Non-currentliabilities | 1,943,465,618.97 | 1,452,099,931.65 |
| Totalliabilities | 8,435,269,701.51 | 8,020,580,795.44 |
| Non-controllinginterests | 1,615,724,166.23 | 1,637,029,480.44 | |
| Shareholders’equityattributabletoshareholdersoftheparentcompany | 7,587,469,894.26 | 6,806,254,317.01 |
| Group’sshareofnetassetsbyproportionofownershipinterests | 1,235,240,098.79 | 1,098,566,852.51 |
| Carryingamountoftheinvestment | 1,235,240,098.79 | 1,098,566,852.51 |
| Operatingrevenue | 12,199,106,725.48 | 11,320,781,393.69 | |
| Incometaxes | 144,388,214.81 | 223,956,645.87 | |
| Netprofit | 928,467,067.03 | 1,069,979,572.65 | |
| Totalcomprehensiveincome | 927,647,864.36 | 1,069,979,572.65 | |
| Dividendreceived | 16,714,220.15 | 8,448,213.90 |
VIIInterestsinotherentities(Continued)
2.Interestsinassociates(Continued)
ThefollowingtableillustratesthesummarisedfinancialinformationinrespectofZhijunMedicine:
| 2019 | 2018 |
| Currentassets | 1,295,003,085.13 | 1,111,485,098.64 | |
| Non-currentassets | 273,684,959.60 | 298,610,691.12 |
| Totalassets | 1,568,688,044.73 | 1,410,095,789.76 |
| Currentliabilities | 734,280,688.66 | 659,931,220.07 | |
| Non-currentliabilities | 16,900,060.78 | 24,953,965.28 |
| Totalliabilities | 751,180,749.44 | 684,885,185.35 |
| Shareholders’equityattributabletoshareholdersoftheparentcompany | 817,507,295.29 | 725,210,604.41 |
| Group’sshareofnetassetsbyproportionofownershipinterests | 400,578,574.68 | 355,353,196.15 |
| Carryingamountoftheinvestment | 400,578,574.68 | 355,353,196.15 |
| Operatingrevenue | 1,888,143,854.90 | 1,762,587,352.62 | |
| Incometaxes | 34,538,098.81 | 36,760,959.44 | |
| Netprofit | 217,216,618.96 | 249,839,856.17 | |
| Totalcomprehensiveincome | 217,216,618.96 | 249,839,856.17 | |
| Dividendreceived | 61,210,764.76 | 58,111,254.57 |
VIIIRisksrelatedtofinancialinstruments
1.Classificationoffinancialinstruments
Thecarryingamountsofeachcategoryoffinancialinstrumentsasatthedateoffinancialpositionareasfollows:
2019Financialassets
| Financialassets | Financialassetsatfairvaluethroughprofitorloss | Financialassetsatamortisedcost | Financialassetsatfairvaluethroughothercomprehensiveincome | Total | |
| Mandatorilyrequired | Mandatorilyrequired | Designated | |||
| Cashandcashequivalents | - | 8,882,334,845.79 | - | - | 8,882,334,845.79 |
| Notesreceivable | - | 793,301,688.64 | - | - | 793,301,688.64 |
| Accountsreceivable | - | 10,617,981,893.52 | - | - | 10,617,981,893.52 |
| Receivablefinancing | - | - | 446,342,588.46 | - | 446,342,588.46 |
| Otherreceivables | - | 477,988,244.98 | - | - | 477,988,244.98 |
| Othernon-currentfinancialassets | 140,000,000.00 | - | - | - | 140,000,000.00 |
| Otherequityinstrumentinvestment | - | - | - | 116,021,000.00 | 116,021,000.00 |
| 140,000,000.00 | 20,771,606,672.93 | 446,342,588.46 | 116,021,000.00 | 21,473,970,261.39 |
| Financialliabilities | Financialliabilitiesatamortisedcost |
| Short-termborrowings | 1,453,018,300.01 | |
| Notespayable | 5,555,697,557.53 | |
| Accountspayable | 6,554,105,124.13 | |
| Otherpayables | 1,756,858,461.02 | |
| Non-currentliabilitiesduewithin1year | 601,427,093.62 | |
| Leaseliabilities | 1,182,407,085.08 |
VIIIRisksrelatedtofinancialinstruments(Continued)
1.Classificationoffinancialinstruments(Continued)
2018
Financialassets
| Financialassets | Financialassetsatfairvaluethroughprofitorloss | Financialassetsatamortisedcost | Financialassetsatfairvaluethroughothercomprehensiveincome | Total | |
| Mandatorilyrequired | Mandatorilyrequired | Designated | |||
| Cashandcashequivalents | - | 8,096,158,013.24 | - | - | 8,096,158,013.24 |
| 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 | - | 637,116,650.64 | - | - | 637,116,650.64 |
| Othernon-currentfinancialassets | 140,000,000.00 | - | - | - | 140,000,000.00 |
| Otherequityinstrumentinvestment | - | - | - | 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 |
| Financialliabilities | Financialliabilitiesatamortisedcost |
| Short-termborrowings | 2,608,626,099.82 | |
| Notespayable | 3,416,755,681.80 | |
| Accountspayable | 6,468,535,961.17 | |
| Otherpayables | 1,528,424,590.29 | |
| Non-currentliabilitiesduewithin1year | 5,861,324.37 | |
| Long-termborrowings | 31,638,984.25 | |
| Long-termpayables | 3,763,978.52 |
VIIIRisksrelatedtofinancialinstruments(Continued)
2.Transferoffinancialassets
TransferredfinancialassetsthatarenotderecognisedintheirentiretyAsat31December2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettleaccountspayableduetosuchsuppliersofRMB0.00(31December2018:RMB301,416.00).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At31December2019,thecarryingvaluethereofwasRMB64,038,348.12(31December2018:RMB170,013,427.11).Intheopinionofthedirectors,theGrouphasretainedthesubstantialrisksandrewards,whichincludedefaultrisksrelatingtosuchEndorsedBills,andaccordingly,itcontinuedtorecognizethefullcarryingamountsoftheEndorsedBillsandtheassociatedaccountspayablesettled.SubsequenttotheEndorsement,theGroupdidnotretainanyrightsoftheuseoftheEndorsedBills,includingthesales,transferorpledgeoftheEndorsedBillstoanyotherthirdparties.Asat31December2019,thetotalcarryingvalueofaccountspayablesettledbytheGroupwasRMB64,038,348.12(31December2018:RMB170,314,843.11).
VIIIRisksrelatedtofinancialinstruments(Continued)
2.Transferoffinancialassets(Continued)
TransferredfinancialassetsthatarederecognisedintheirentiretyinwhichcontinuinginvolvementexistsAsat31December2019,theGrouphadendorsedcommercialbillsreceivable(the"EndorsedBills")tocertainofitssuppliersinordertosettleaccountspayableduetosuchsuppliersofRMB867,007,837.74(31December2018:RMB568,118,674.84).Duringtheyear,theGroupoperatedanumberofdiscountingbusinessthroughseveralbanksinChina.At31December2019,thecarryingvaluethereofwasRMB1,413,116,120.20(31December2018:
RMB705,143,849.35).Thederecognisedbillshadamaturityof1to12monthsattheendofthereportingperiod.InaccordancewiththeLawofNegotiableInstruments,theholdersofthederecognisedbillshavearightofrecourseagainsttheGroupiftheacceptingbanksdefault(the“ContinuingInvolvement”).Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsrelatingtothederecognisedbills.Accordingly,ithasderecognisedthefullcarryingamountsofthederecognisedbillsandtheassociatedaccountspayable.ThemaximumexposuretolossfromtheGroup'sContinuingInvolvementinthederecognisedbillsandtheundiscountedcashflowstorepurchasethesederecognisedbillsisequaltotheircarryingamounts.Intheopinionofthedirectors,thefairvaluesoftheGroup’sContinuingInvolvementinthederecognisedbillsarenotsignificant.During2019,theGrouphasnotrecognisedanygainorlossonthedateoftransfer.NogainorlosswasrecognisedfromderecognisedfinancialassetsinwhichtheContinuingInvolvementexists,bothduringtheyearorcumulatively.During2019,theGrouphasnotrecognisedanygainorlossonthedateoftransferofthederecognisedbills.NogainsorlosseswererecognisedfromtheContinuingInvolvement,bothduringtheyearorcumulatively.Aspartofitsnormalbusiness,theGroupenteredintoanaccountsreceivablefactoringwithoutrecoursewithbanksandtransferredcertainaccountsreceivabletobanks.Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsunderthearrangement.Accordingly,ithasderecognisedthefullcarryingamountsoftheassociatedaccountsreceivable.TheoriginalcarryingvalueofthederecognisedaccountsreceivabletransferredundertheArrangementthathavenotbeensettledasat31December2019amountedtoRMB1,525,687,080.99(31December2018:RMB827,745,640.19).
VIIIRisksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments
ThemainrisksarisingfromtheGroup'sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk(includingcurrencyriskandinterestraterisk).TheGroup'sprincipalfinancialinstrumentscomprisecashandbankbalances,equityinvestments,debtinvestments,borrowings,notesreceivable,accountsreceivable,notespayableandaccountspayable.RisksthatrelatedtothesefinancialinstrumentsandtheGroup'sriskmanagementstrategiesforreducingtheserisksareasfollows.TheCompany’sboardofdirectorsisresponsibleforplanningandestablishingtheriskmanagementframeworkoftheGroup,formulatingriskmanagementpoliciesandrelatedguidelinesoftheGroupandsupervisingtheimplementationofriskmanagementmeasures.TheGrouphasalreadydevelopedriskmanagementpoliciestoidentifyandanalysetherisksfacedbytheGroup,whichhaveclearlyidentifiedspecificrisks,coveringalotofaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheGroupregularlyassessesthemarketenvironmentandchangesintheGroup’sbusinessactivitiestodeterminewhetherornottoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheGroupshallbeconductedbytheoperationandmanagementdepartmentaccordingtothepolicyapprovedbytheCompany’smanagement.Theoperationandmanagementdepartmentidentifies,evaluatesandavoidsrelatedrisksbymeansofclosecooperationwithotherbusinessunitsoftheGroup.Toavoidtheriskconcentratingonasingleindustry,aspecificareaoraspecificcounterparty,theGroupspreadsfinancialinstrumentsriskwithdiversifiedinvestmentsandbusinessportfolio.CreditriskTheGrouponlytradeswithrecognisedandcreditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivablebalancesaremonitoredonanongoingbasisandtheGroup’sexposuretobaddebtsisnotsignificant.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecialapprovalofthecreditcontroldepartmentoftheGroup.Sincecashandbankbalances,bankacceptancebillsreceivableandderivativefinancialinstrumentsareplacedinthewell-establishedbankswithhighcreditratings,thecreditriskofthesefinancialinstrumentsislower.TheotherfinancialinstrumentsoftheGroupincludecashandbankbalancesandotherreceivables.Thecreditriskofthesefinancialassetsresultsfromdefaultofcounterparty.Themaximumcreditexposureequalstothebookvalueoftheseinstruments.
VIIIRisksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)
Creditrisk(Continued)ThemaximumexposuretocreditriskoftheGroupateachbalancesheetdateisthetotalamountchargedtothecustomerslesstheamountoftheimpairmentprovision.SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Creditrisksaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.TherearenosignificantconcentrationsofcreditriskwithintheGroupasthecustomerbasesoftheGroup’saccountsreceivablearewidelydispersedindifferentsectorsandindustries.TheGroupdoesnotholdanycollateralorothercreditenhancementsoveritsaccountsreceivablebalancesDeterminationofsignificantincreaseincreditriskAteachreportingdate,theGroupdetermineswhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition.Whendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort.Thisincludesbothquantitativeandqualitativeinformationanalysis,basedontheGroup’shistoricalexperienceandinformedcreditassessmentandincludingforward-lookinginformation.Inordertodeterminethechangeofexpecteddefaultriskduringthefinancialinstrument’sentirelifetime,theGroupcomparesthedefaultriskoffinancialinstrumentonthebalancesheetdateandontheinitialrecognitiondatebasedonsinglefinancialinstrumentorfinancialinstrumentportfoliowithsimilardefaultrisk.TheGroupdeterminesthatthecreditriskoffinancialassetshassignificantlyincreasedwhenoneormorequantitativeorqualitativecriteriaaremet:
(1)Quantitativecriteriaaremainlyprobabilityofdefaultincreasingmorethanagiven%since
initialrecognition;
(2)Qualitativecriteriaaremainlysignificantdetrimentalchangesintheborrower’soperatingorfinancialconditionsandearlywarningcustomerlists.
(3)Theuppercriterionisabove30daysoftheborrowersdefault(includingprincipalandinterests).
Definitionofcredit-impairedfinancialassets
Inassessingwhetherafinancialassetiscredit-impaired,theGroupconsidersbothquantitative
andqualitativeinformationinlinewithinternalcreditriskmanagement.TheGroupassesses
whetherafinancialassetiscredit-impairedbyconsideringthefollowingfactors:
(1)Significantfinancialdifficultyoftheborrowerorissuer;
(2)Abreachofcontractsuchasadefaultorpastdueevent;
(3)Thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtotheborrower’sfinancialdifficulty,havinggrantedtotheborrowerconcession(s)thatthelender(s)wouldnototherwiseconsider;
(4)Itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;
(5)Thedisappearanceofanactivemarketforsecuritybecauseoffinancialdifficulties;and
(6)Financialassetspurchasedorsourcedatlargediscountsindicatingthatcreditlosseshaveoccurred.
VIIIRisksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)
Creditrisk(Continued)Theimpairmentoffinancialassetsmaynotbenecessarilyduetoasingledisparateevent.Thecombinedeffectsofmultipleeventsmayresultinfinancialassetsbeingcredit-impaired.ParameteroftheexpectedcreditlossmodelBasedonwhetherthereisasignificantincreaseincreditriskandwhetherthefinancialassetsarecredit-impaired,theGrouprecognizesimpairmentallowancefordifferentassetsusingeither12-monthexpectedcreditlossesorlifetimeexpectedcreditlosses.ThemeasurementoftheECLmodelisafunctionoftheprobabilityofdefault,thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)andtheexposureatdefault.TheGroupestablishesthemodelbyconsideringthequantitativeanalysisofhistoricalstatisticssuchasthecounterpartyrating,theguaranteemethod,thecollateralcategory,therepaymentmethod,andalsoforward-lookinginformation.Definitions:
(1)Theprobabilityofdefaultistheprobabilitythatthedebtorwillnotbeabletomeetits
repaymentobligationswithinthefollowing12monthsorthroughouttheremainingduration.Toreflectthemacro-economicenvironmentconditions,theGroup’sassessmentoftheprobabilityofdefaultisbasedonthecalculationoftheECLmodeladjustedbyforward-lookinginformation.
(2)Thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)referstothe
Group'sexpectationoftheextentofthelossofdefaultriskexposure.Thelossgivendefaultvariesdependingonthetypeofcounterparty,thewayandpriorityofrecourse,andthetypeofcollateral.Thelossgivendefaultisthepercentageoftheriskexposurelossatthetimeofdefault,calculatedonthebasisofthenext12monthsortheentireduration.
(3)TheexposureatdefaultreferstotheamountthattheGroupshouldrepayintheeventof
defaultinthenext12monthsorthroughouttheremainingperiod.BoththeassessmentofasignificantincreaseincreditriskandthecalculationoftheECLinvolveforward-lookinginformation.TheGrouprecognizeskeyeconomicratiosthatinfluencecreditriskandtheECLbyhistoricaldataanalysis.Asat31December2019,therewasnoevidenceofasignificantincreaseincreditrisk(31December2018:nil).
VIIIRisksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)
LiquidityriskThematurityanalysisoftheGroup'sfinancialliabilitiesasattheendofthereportingperiod,basedonthecontractualundiscountedcashflows,isasfollows:
| 31December2019 | ||||||||
| Within1year | 1to2years | 2to5years | Above5years | Total | ||||
| Short-termborrowings | 1,473,390,678.14 | - | - | - | 1,473,390,678.14 | |||||
| Notespayable | 5,555,697,557.53 | - | - | - | 5,555,697,557.53 | |||||
| Accountspayable | 6,554,105,124.13 | - | - | - | 6,554,105,124.13 | |||||
| Otherpayables | 1,756,858,461.02 | - | - | - | 1,756,858,461.02 | |||||
| Non-currentliabilitiesduewithin1year | 681,949,685.82 | - | - | - | 681,949,685.82 | |||||
| Leaseliabilities | - | 495,038,444.79 | 638,255,984.49 | 135,810,836.52 | 1,269,105,265.80 |
| 16,022,001,506.64 | 495,038,444.79 | 638,255,984.49 | 135,810,836.52 | 17,291,106,772.44 |
VIIIRisksrelatedtofinancialinstruments(Continued)
3.Risksoffinancialinstruments(Continued)
Liquidityrisk(Continued)ThematurityanalysisoftheGroup'sfinancialliabilitiesasattheendofthereportingperiod,basedonthecontractualundiscountedcashflows,isasfollows:
| 31December2018 | ||||||||
| Within1year | 1to2years | 2to5years | Above5years | Total | ||||
| Short-termborrowings | 2,641,685,285.81 | - | - | - | 2,641,685,285.81 | |||||
| Notespayable | 3,416,755,681.80 | - | - | - | 3,416,755,681.80 | |||||
| Accountspayable | 6,468,535,961.17 | - | - | - | 6,468,535,961.17 | |||||
| Otherpayables | 1,528,424,590.29 | - | - | - | 1,528,424,590.29 | |||||
| Non-currentliabilitiesduewithin1year | 9,930,322.41 | - | - | - | 9,930,322.41 | |||||
| Long-termpayables | - | 4,424,279.85 | 563,159.02 | - | 4,987,438.87 | |||||
| Long-termborrowings | - | 32,897,114.17 | - | - | 32,897,114.17 |
| 14,065,331,841.48 | 37,321,394.02 | 563,159.02 | - | 14,103,216,394.52 |
VIIIRisksrelatedtofinancialinstruments(Continued)
MarketriskInterestrateriskTheGroup'sinterestrateriskarisesfromlong-termborrowingsfrombanks.FinancialliabilitiesissuedatfloatingratesexposetheGrouptocashflowinterestraterisk.FinancialliabilitiesissuedatfixedratesexposetheGrouptofairvalueinterestraterisk.TheGroupdeterminestherelativeproportionsofitsfixedrateandfloatingratecontractsdependingontheprevailingmarketconditions.Asat31December2019,ifthefloatinginterestratesofthelong-terminterest-bearingborrowingsincreasedordecreasedby50basepoints,whileotherfactorsdidnotchange,theGroup’snetincomewoulddecreaseorincreasebyRMB40,471.31(31December2018:ifthefloatinginterestratesofthelong-terminterest-bearingborrowingsincreasedordecreasedby50basepoints,whileotherfactorsdidnotchange,theGroup’snetincomewouldincreaseordecreasebyRMB118,500.00).TheGroup’sfinancedepartmentatitsheadquarterscontinuouslymonitorstheinterestratepositionoftheGroup.IncreasesininterestrateswillincreasethecostofnewborrowingsandtheinterestexpenseswithrespecttotheGroup’soutstandingfloatingrateborrowingsand,therefore,couldhaveamaterialadverseeffectontheGroup’sfinancialposition.TheGroup’smanagementlayerwouldmakeadjustmentswithreferencetothelatestmarketconditionswhichareinterestrateswapagreementstomitigateitsexposuretointerestraterisk.During2019and2018,theGrouphadnotenteredintoanyinterestrateswapagreements.Fortheyearended31December2019,theGrouphadlong-terminterest-bearingborrowingswithfloatinginterestratesamountingtoRMB31,600,000.00(31December2018:
RMB31,600,000.00).CurrencyriskTheGroup’smajoroperationalactivitiesarecarriedoutinMainlandChinaandamajorityofthetransactionsaredenominatedinRMB.TheGroupisexposedtoforeignexchangeriskarisingfromtherecognisedassetsandliabilitiesaswellasfuturetransactions(denominatedinforeigncurrencies,primarilywithrespecttoUnitedStatesdollarsandHongKongdollars).TheGroup’sfinancedepartmentatitsheadquartersisresponsibleformonitoringtheamountsofassetsandliabilities,andtransactionsdenominatedinforeigncurrenciesaimatmitigatingthepotentialforeignexchangerisktoalargeextent.
VIIIRisksrelatedtofinancialinstruments(Continued)
4.Capitalmanagement
TheCompany’sprimaryobjectiveformanagingcapitalistoensurethatitmaintainsastrongcreditratingandahealthycapitalratioinordertosupportitsbusiness,bringshareholdersinvestingreturnsandbenefitrelatedparties.Managementalsoaimstomaintainacapitalstructurethatensuresthatthelowestcostofcapitalisavailabletotheentity.Managementadjuststhecapitalstructurethroughadjustingdividendpaymentstoshareholders,returningcapitaltoshareholders,issuingnewsharesorsellingassetstoreducedebts.TheGroup’stotalcapitalisthetotalshareholders’equityinthebalancesheet.TheGroupdoesnotadoptanassetratioasacompulsoryfactortogoverncapitalinvestment.ThegearingratiosoftheGroupasattheendofthereportingperiodswereasfollows:
| 2019 | 2018 |
| Gearingratio | 54.18% | 51.93% |
IXDisclosureoffairvalue
1.Assetsandliabilitiesatfairvalue
2019
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Continuousmeasurementoffairvalue | |||||
| Receivablefinancing | - | 446,342,588.46 | - | 446,342,588.46 | |
| Otherinvestmentinequityinstruments | - | 116,021,000.00 | - | 116,021,000.00 | |
| Othernon-currentfinancialassets | - | - | 140,000,000.00 | 140,000,000.00 |
| - | 562,363,588.46 | 140,000,000.00 | 702,363,588.46 |
2018
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Continuousmeasurementoffairvalue | |||||
| Receivablefinancing | - | 567,775,275.40 | - | 567,775,275.40 | |
| Otherinvestmentinequityinstruments | - | 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 |
IXDisclosureoffairvalue(Continued)
2.Assetsandliabilitiesdisclosedatfairvalue
2018
| Inputappliedinthemeasurementoffairvalue | |||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total |
| Level1 | Level2 | Level3 | |
| Long-termborrowings | - | 31,638,984.25 | - | 31,638,984.25 |
IXDisclosureoffairvalue(Continued)
3.Estimationoffairvalue
ThefollowingarethebookvalueandfairvalueoffinancialinstrumentsoftheGroup,excludingthosethathaveimmaterialdifferenceinbookvalueandfairvalue:
| Carryingamount | Fairvalue | ||
| 31December2019 | 31December2018 | 31December2019 | 31December2018 |
| Financialliabilities | ||||
| Long-termborrowings | - | 31,638,984.25 | - | 31,638,984.25 |
Managementhasassessedthatthefairvaluesofcashandcashequivalents,notesreceivable,accountsreceivable,receivablefinancing,otherreceivables,short-termborrowings,notespayable,accountspayable,otherpayables,non-currentliabilitiesduewithin1yearaswellasothershort-termfinancialassetsandliabilities.Duetotheshortremainingmaturitiesoftheseinstruments,thefairvalueapproximatedtothecarryingamount.ThefinancialcontrolleroftheGrouptakestheresponsibilitytoformulatepoliciesandproceduresrelatedtofinancialinstrumentfairvaluemeasurementsanddirectlyreportstotheCFOandtheauditcommittee.Oneachbalancesheetdate,thefinancialdepartmentanalysesthevariationofthefairvalueoffinancialinstrumentsanddeterminestheinputsapplicabletovaluation.ThevaluationisrequiredtobeapprovedbytheCFO.Thefairvaluesoffinancialassetsandliabilitiesaretheamountsatwhichtheinstrumentcouldbeexchangedordebtscouldbesettledinanarm’slengthtransactionbetweenknowledgeableandwillingparties,otherthaninaforcedorliquidationsale.Thefollowingmethodsandassumptionswereusedtoestimatethefairvalues.Thefairvaluesofshort-termandlong-termborrowings,andlong-termpayableshavebeencalculatedbydiscountingtheexpectedfuturecashflowsusingmarketratesofreturncurrentlyavailableforotherfinancialinstrumentswithsimilarterms,creditriskandremainingmaturities.Asat31December2019,theGroup’sownnon-performanceriskforshort-termandlong-termborrowingswasassessedtobeinsignificant.Foranequityinstrumentoflistedentities,themarketpriceisusedtodeterminefairvalue.Foranequityinstrumentofnon-listedentities,therecentequitytransactionconsiderationorthemarketcomparablecompanymodelisusedtoestimatefairvalue.TheGroupbelievesthattheestimatedfairvaluebythevaluationmethodisrational,andalsothemostsufficientvalueatthebalancesheetdate.
4.Unobservableinputs
Othernon-currentfinancialassetswerethefundsharesofQiruiPortInvestmentCenterLPofNingboMeishanBondedPortsubscribedbytheGroup.Forthedeterminationofthefairvalueoftheinvestment,afterreferringtothenetassetsofQiruiPortInvestmentCenterLPofNingboMeishanBondedPorton31December2019,whichhasimplementedthenewfinancialinstrumentstandards,theresultwascalculatedanddeterminedaccordingtothefundshareproportionownedbythecompany.Afinancialinstrumentthatismeasuredatfairvaluewithmeasurementoflevel3isinsensitivetoreasonablefluctuationoftheunobservableinputs.
IXDisclosureoffairvalue(Continued)5．TransfersbetweenlevelsoffairvaluemeasurementDuringtheyear,therewerenotransfersoffairvaluemeasurementsbetweenLevel1andLevel2.XRelatedpartyrelationshipsandtransactions
1.Parent
| Registeredaddress | Natureofbusiness | Sharecapital(RMB’0,000) | ProportionofownershipinterestintheCompany | ProportionofvotingpowerintheCompany |
| SinopharmGroup | Shanghai | Industrialinvestmentholding,trusteeofapharmaceuticalenterprise,assetreorganization,distributionandretailofmedicinesandpharmaceuticalproducts,etc. | 297,165.62 | 56.06% | 56.06% |
TheultimatecontrollingpartyoftheCompanyisCNPGC.
2.Subsidiaries
RefertoNoteVII(1)fordetailsofsubsidiaries.
3.Associates
RefertoNoteVII(2)fordetailsofassociates.
4.Otherrelatedparties
RelatedpartyrelationshipsSinopharmGroupFinanceCo.,Ltd.
| SinopharmGroupFinanceCo.,Ltd. | ControlledbyCNPGC |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| HuayiPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ShandongLuYaPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | ControlledbyCNPGC |
| WinteamPharmaceuticalGroupLtd. | ControlledbyCNPGC |
| FoshanDezhongPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | ControlledbyCNPGC |
| ChengduRongshengPharmacyCo.,Ltd. | ControlledbyCNPGC |
| LanzhouBiotechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsBeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | ControlledbyCNPGC |
| ShanghaiShangshengBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| ShantouJinshiPowderInjectionCo.,Ltd. | ControlledbyCNPGC |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupZhonglianPharmaceuticalGroupCo.,Ltd. | ControlledbyCNPGC |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | ControlledbyCNPGC |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| ChinaNationalPharmaceuticalForeignTradeCorporation | ControlledbyCNPGC |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | ControlledbyCNPGC |
| SinopharmYixinPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | ControlledbyCNPGC |
| SinopharmWuhanbloodproductsCo.,Ltd. | ControlledbyCNPGC |
| FujianChengtianJinlingPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | ControlledbyCNPGC |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | ControlledbyCNPGC |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | ControlledbyCNPGC |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | ControlledbyCNPGC |
| SinopharmFengliaoxingPharmacy(Foshan)Co.,Ltd | ControlledbyCNPGC |
| FoshanSouthernFengliaoxingMedicialHospitalCo.,Ltd | ControlledbyCNPGC |
| SinopharmIndustryInvestmentCo.,Ltd. | ControlledbyCNPGC |
| SinopharmBeijingHuamiaoPharmaceuticalCo.,Ltd. | ControlledbyCNPGC |
| SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstitute | ControlledbyCNPGC |
| ChinaNationalofTraditional&HerbalMedicineCo.,Ltd. | ControlledbyCNPGC |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | AssociateofCNPGC |
| ShanghaiSinoMedMedicineCo.,Ltd. | AssociateofCNPGC |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsSinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd.
| SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| ChangchunChangshengGenePharmaceuticalCo.,Ltd. | AssociateofCNPGC |
| SinopharmHoldingTianjinCo.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupLinfenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupSouthwestMedicineCo.,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 |
| SinopharmHoldingShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHolding(Hubei)MedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupMedicineLogisticCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHunanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYongzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChangdeCo.,Ltd. | ControlledbySinopharmGroup |
| ChinaNationalMedicinesCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmProspectDentech(Beijing)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsSinopharmHoldingBeijingHuahongCo.,Ltd.
| SinopharmHoldingBeijingHuahongCo.,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 |
| SinopharmHoldingPu’erCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYunnanDongchangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHainanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFujianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingPutianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZhangzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingQuanzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXiamenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFuzhouMedicialDeviceCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingNingxiaCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiangxiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTongliaoCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingUlanqabCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingBayannurCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingHulunBuirCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsSinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJilinCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTonghuaCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiangsuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYangzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | ControlledbySinopharmGroup |
| 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 |
| SinopharmLerentangHebeiMedicialInstrumentSupplyChainManagementCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmLerentangHebeiPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangXingtaiMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLuzhouMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingDalianHechengCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsSinopharmHoldingChangshaCo.,Ltd.
| SinopharmHoldingChangshaCo.,Ltd. | ControlledbySinopharmGroup |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | ControlledbySinopharmGroup |
| ChinaNationalMedicialDeviceShandongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLiaoningMedicialDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmShanxiMedicialDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmShanghaiMedicineDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHealthcareManagementCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingHunanMedicialDevelopmentCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiRunheMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHuixinQingyuan(Beijing)TechnologyDevelopmentCo.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiInternationalPharmaceuticalTradeCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiJinzhongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYantaiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHainanHongyiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGuizhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingOrdosCo.,Ltd. | ControlledbySinopharmGroup |
| ShanghaiMeitaiMedicalInstrumentsCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangQinhuangdaoMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangTangshanMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| Sinopharm(Guangzhou)MedicialDeviceCo.,Ltd | ControlledbySinopharmGroup |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | ControlledbySinopharmGroup |
| SinopharmHoldingTianjinNorthMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| Sinopharm(Hubei)HankouPharmacyLtd. | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiHongyuanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiaozuoCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingWuhuCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
RelatedpartyrelationshipsSinopharmHoldingLiaochengCo.,Ltd.
| SinopharmHoldingLiaochengCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingYunnanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHongheCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChuxiongCo.,Ltd. | ControlledbySinopharmGroup |
| YuxiSinopharmMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuanaiJikunPharmacy(Haikou)Co.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingGansuCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLongyanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNingdeCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingFuzhouCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingAnshunCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingTongrenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZunyiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingQianxi'nanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJilinChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSipingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingWenzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChongqingCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingZhenjiangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNantongCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHuaianCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmLerentangShijiazhuangMedicialManagementCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmLerentangBaodingHongkangMedicialChainStoreCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingQinghaiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingChongqingTaiminMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingChengduCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
| Companyname | Relatedpartyrelationships |
| SinopharmHoldingDeyangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | ControlledbySinopharmGroup |
| ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmNanpingMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLianruiXinxiang(Beijing)MedicialInstrumentCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingAnhuiMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingChangxingZhuanyePharmacy(Haikou)Co.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHuangshiCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingXinxiangCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingLiu'anCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingSuzhouCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingJiningCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNanpingNewforceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingNanchangChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangHengshuiMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmLerentangBaodingMedicineCo.,Ltd. | ControlledbySinopharmGroup |
| FujianSinopharmMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingHunanWeianChainStoreCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmJienuoMedicalTreatmentServiceCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmGuangdongMedicalEquipmentSupplyChainCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHebeiMedicalInstrumentCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmAnhuiMedicialDeviceCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd. | ControlledbySinopharmGroup |
| ChinaNationalPharmaceuticalGroupShanghaiCo.,Ltd. | ControlledbySinopharmGroup |
| XinjiangBaitongPropertyServiceCo.,Ltd. | ControlledbySinopharmGroup |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | ControlledbySinopharmGroup |
| SinopharmHoldingGuizhouYitongMedicineCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmHoldingHubeiBokangCo.,Ltd | ControlledbySinopharmGroup |
| SinopharmLerentangChengdeMedicineCo.,Ltd. | ControlledbySinopharmGroup |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
| CompanyName | Relatedpartyrelationships |
| SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd. | ControlledbySinopharmGroup |
| YichangHumanwellPharmaceuticalCo.,Ltd. | AssociateofSinopharmGroup |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | AssociateofSinopharmGroup |
| SinopharmHealthOnlineCo.,Ltd. | AssociateofSinopharmGroup |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | AssociateofSinopharmGroup |
| SinopharmPharmacy(Shanghai)Co.,Ltd. | AssociateofSinopharmGroup |
| SinopharmHoldingPharmacy(Nanchang)Co.,Ltd. | AssociateofSinopharmGroup |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | AssociateofSinopharmGroup |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | SubsidiaryofMainLuckPharmaceutical |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| SichuanHexinPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| GuilinSouthpharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| TibetYaoyouMedicinesCo.,Ltd. | SubsidiaryofFosunPharm |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiTransfusionTechnologyCo.,Ltd. | SubsidiaryofFosunPharm |
| JiangsuWanbangPharmaceuticalMarketing&DistributionCo.,Ltd. | SubsidiaryofFosunPharm |
| JinzhouAhonPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| HunanDongtingPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| SuzhouEryePharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | SubsidiaryofFosunPharm |
| JinzhouAhonPharmaceuticalCo.,Ltd | SubsidiaryofFosunPharm |
| JiangxiEryeMedicineMarketingCo.,Ltd. | SubsidiaryofFosunPharm |
| ChengduListPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShanghaiFoshionDentalTechnologyCo.,Ltd. | SubsidiaryofFosunPharm |
| FoshanChanchengDistrictCentralHospital | SubsidiaryofFosunPharm |
| FoshanChanyixingMedicineDevelopmentCoLtd. | SubsidiaryofFosunPharm |
| FoshanChanchengPharmaceuticalCo.,Ltd. | SubsidiaryofFosunPharm |
| ShenzhenQiandaMedicalBeautyClinic | SubsidiaryofFosunPharm |
| ShenzhenHengShengHospital | SubsidiaryofFosunPharm |
| FoshanShundeDistrictLecongSupplyandMarketinggroupShunketangMedicineCo.,Ltd. | SubsidiaryofFosunPharm |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HenanWanxitangPharmacyCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ShenzhenKetaiMedicialScienceandTechnologyCo.,Ltd | Non-controllinginterestofasubsidiary |
| Pu'erSongmaoJiantangPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ZhangZhenfang | Non-controllinginterestofasubsidiary |
XRelatedpartyrelationshipsandtransactions(Continued)
4.Otherrelatedparties(Continued)
| CompanyName | Relatedpartyrelationships |
| ShenyangPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HeyuanMairuiTradingCo.,Ltd. | Non-controllinginterestofasubsidiary |
| LinyiMedicalGroupCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HunanMinshengtangInvestmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| ShenzhenJiufengInvestmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| LerentangInvestmentGroupCo.,Ltd. | Non-controllinginterestofasubsidiary |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | Non-controllinginterestofasubsidiary |
| HangzhouXihuBusinessGroupCorporation | Non-controllinginterestofasubsidiary |
| SinopharmGuodaTaishanQunkangPharmacyChainStoreCo.,Ltd. | Non-controllinginterestofasubsidiary |
| NanjingYuanguangTradingCo.,Ltd. | Controlledbynon-controllinginterestofasubsidiary |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | Controlledbynon-controllinginterestofasubsidiary |
| TaishanXiangranhuiTradeCo.,Ltd. | Controlledbynon-controllinginterestofasubsidiary |
| GuHaiqun | Non-controllinginterestofasubsidiary |
| GuJinhua | Controllerofnon-controllinginterestofasubsidiary |
| WangYang | Familymemberofthenon-controllingshareholderofasubsidiary |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties
(1)Relatedpartytransactions–goodsandservices
Purchaseofgoodsandreceivingofservicesfromrelatedparties
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 123,317.05 | 102,842.49 |
| ChinaNationalMedicinesCo.,Ltd. | 57,097.31 | 47,447.25 |
| SinopharmGroupShanxiCo.,Ltd. | 41,636.50 | 30,206.49 |
| SinopharmHoldingShanxiCo.,Ltd. | 26,368.40 | 17,803.27 |
| JiangsuWanbangPharmacyMarketingCo.,Ltd. | 17,941.86 | 10,590.47 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 16,472.43 | 15,730.42 |
| SinopharmGroupCo.,Ltd. | 15,594.72 | 15,674.01 |
| SinopharmHoldingShenyangCo.,Ltd. | 14,095.03 | 12,615.36 |
| LanzhouBiologicalTechnologyDevelopmentCo.,Ltd. | 11,345.94 | 1,380.00 |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | 11,023.65 | 13,492.91 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 10,419.25 | 7,968.25 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 6,740.08 | 3,765.52 |
| SinopharmHoldingYangzhouCo.,Ltd. | 5,874.74 | 5,080.96 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 5,552.61 | 5,425.64 |
| SinopharmHoldingLunanCo.,Ltd. | 5,350.49 | 7,867.79 |
| SinopharmHoldingHubeiCo.,Ltd. | 5,006.89 | - |
| SinopharmHoldingBeijingCo.,Ltd. | 4,803.76 | 4,166.01 |
| JinzhouAhonPharmaceuticalCo.,Ltd. | 4,750.43 | 4,655.26 |
| TibetYaoyouMedicinesCo.,Ltd. | 4,374.73 | 1,863.03 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 4,362.84 | 17,772.72 |
| WinteamPharmaceuticalGroupLtd. | 3,691.04 | 3,425.51 |
| MainLuckPharmaceutical | 3,598.25 | 3,664.44 |
| SinopharmHoldingFujianCo.,Ltd. | 3,544.64 | 2,235.91 |
| JiangxiEryeMedicineMarketingCo.,Ltd. | 3,504.34 | 636.00 |
| SinopharmHoldingHenanCo.,Ltd. | 3,209.58 | 1,345.69 |
| ZhijunPingshan | 3,014.17 | 1,485.99 |
| SinopharmHoldingLerentangPharmaceuticalCo.,Ltd. | 2,864.87 | 3,425.05 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| SinopharmHoldingPingdingshanCo.,Ltd. | 2,799.59 | 2,966.11 |
| ZhijunPharmaceutical | 2,741.69 | 1,550.59 |
| SinopharmHoldingJiangsuCo.,Ltd. | 2,694.29 | 2,478.08 |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 2,572.82 | 961.00 |
| ChengduRongshengPharmacyCo.,Ltd. | 2,557.70 | 1,544.99 |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 2,197.12 | 2,360.76 |
| SinopharmHoldingXiamenCo.,Ltd. | 2,192.31 | 1,641.68 |
| ShyndecPharma | 2,186.24 | 545.56 |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 1,701.08 | 542.65 |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | 1,685.38 | 1,927.59 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 1,644.77 | 1,374.70 |
| YichangHumanwellPharmaceuticalCo.,Ltd. | 1,612.15 | 988.76 |
| SinopharmHoldingChangzhouCo.,Ltd. | 1,488.55 | 519.14 |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | 1,483.80 | 809.96 |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 1,455.99 | 958.22 |
| SinopharmHoldingShandongCo.,Ltd. | 1,419.51 | 382.90 |
| SinopharmHoldingNingxiaCo.,Ltd. | 1,417.91 | 1,303.98 |
| SinopharmHealthOnlineCo.,Ltd. | 1,404.59 | 1,269.85 |
| SinopharmHoldingHunanCo.,Ltd. | 1,175.61 | 2,753.14 |
| ShanghaiShangshengBiologicalProductsCo.,Ltd. | 1,174.87 | 1,225.55 |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 1,172.51 | 1,376.71 |
| SuzhouEryePharmaceuticalCo.,Ltd. | 1,134.34 | 2,097.57 |
| SichuanHexinPharmaceuticalCo.,Ltd. | 1,074.53 | 808.33 |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 969.83 | 575.07 |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | 823.16 | 1,063.26 |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | 758.69 | 492.19 |
| SinopharmHoldingWuxiCo.,Ltd. | 684.26 | 501.02 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | 672.74 | - |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | 655.09 | 42.10 |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 618.72 | 459.70 |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | 617.30 | 216.02 |
| SinopharmHoldingTongliaoCo.,Ltd. | 607.65 | 172.34 |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | 600.73 | 815.71 |
| ShantouJinshiPowderInjectionCo.,Ltd. | 566.36 | 374.45 |
| SinopharmHoldingJinanCo.,Ltd. | 543.59 | 618.89 |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 542.01 | 353.38 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | 492.73 | 220.67 |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | 490.16 | 399.79 |
| SinopharmHoldingFuzhouCo.,Ltd. | 477.04 | 843.89 |
| SinopharmHoldingJinzhouCo.,Ltd. | 458.60 | 386.83 |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 445.40 | 324.11 |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | 436.90 | 5.76 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 372.99 | 289.84 |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 362.48 | 134.98 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | 360.87 | 344.11 |
| SinopharmHoldingBeijingHuahongCo.,Ltd. | 356.68 | 650.29 |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | 341.21 | 295.73 |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 326.60 | 1,094.70 |
| SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd. | 310.35 | 153.65 |
| SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd. | 298.06 | - |
| SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd | 293.73 | - |
| SinopharmHuixinQingyuan(Beijing)TechnologyDevelopmentCo.,Ltd. | 281.25 | - |
| SinopharmHoldingYanchengCo.,Ltd. | 280.58 | 248.87 |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd. | 266.12 | 89.28 |
| HunanDongtingPharmaceuticalCo.,Ltd. | 266.01 | 91.25 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | 249.68 | 116.31 |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 245.00 | 115.92 |
| ShanghaiBeiyi | 227.23 | 249.14 |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | 224.74 | 107.14 |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | 224.12 | 356.58 |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | 193.12 | 81.80 |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | 189.92 | 142.34 |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 183.22 | 66.32 |
| SinopharmHoldingHulunBuirCo.,Ltd. | 177.50 | 134.06 |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | 173.96 | 113.90 |
| SinopharmHoldingTianjinCo.,Ltd. | 173.87 | 163.00 |
| SinopharmHoldingChangshaCo.,Ltd. | 169.02 | 73.39 |
| SinopharmHealthcareManagementCo.,Ltd | 167.58 | - |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | 167.27 | 160.50 |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | 163.79 | 118.51 |
| SinopharmHoldingDalianCo.,Ltd. | 158.66 | 146.37 |
| SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd | 151.95 | - |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | 145.69 | 205.84 |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | 144.75 | 33.25 |
| SinopharmHoldingLianyungangCo.,Ltd. | 143.93 | 98.55 |
| SinopharmHoldingPutianCo.,Ltd. | 138.62 | 173.77 |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 126.38 | 92.62 |
| SinopharmGroupZhonglianPharmaceuticalGroupCo.,Ltd. | 123.00 | 107.89 |
| SinopharmHoldingAnhuiCo.,Ltd. | 108.09 | 125.53 |
| ShanghaiInternationalPharmaceuticalTradeCo.,Ltd. | 104.78 | - |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | 104.57 | - |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | 103.81 | 57.34 |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 93.16 | 265.31 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)
Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| FujianChengtianJinlingPharmaceuticalCo.,Ltd. | 87.34 | 60.62 |
| GuilinSouthpharmaceuticalCo.,Ltd. | 82.38 | 61.69 |
| SinopharmHoldingSuzhouCo.,Ltd. | 82.16 | 1,123.00 |
| ShanghaiTransfusionTechnologyCo.,Ltd. | 80.09 | - |
| SinopharmHoldingQuanzhouCo.,Ltd. | 80.05 | 79.67 |
| SinopharmWuhanbloodproductsCo.,Ltd. | 76.80 | 17.04 |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | 73.28 | 204.05 |
| SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd. | 71.46 | 5.23 |
| SinopharmHoldingHainanCo.,Ltd. | 55.64 | 24.14 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | 50.64 | 34.82 |
| SinopharmHoldingBayannurCo.,Ltd | 48.83 | - |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | 40.26 | 33.6 |
| SinopharmHoldingYunnanDongchangMedicineCo.,Ltd. | 39.91 | - |
| ChinaNationalMedicialDeviceShandongCo.,Ltd.. | 34.06 | - |
| SinopharmHoldingDalianHechengCo.,Ltd. | 30.60 | 33.17 |
| SinopharmHoldingZhejiangCo.,Ltd. | 30.09 | 44.13 |
| SinopharmHoldingDezhouCo.,Ltd. | 25.26 | 36.03 |
| SinopharmHoldingHunanMedicialDevelopmentCo.,Ltd | 24.49 | - |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | 19.94 | 28.64 |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 19.48 | 290.93 |
| JinzhouAhonPharmaceuticalCo.,Ltd | 18.99 | - |
| SinopharmHoldingChangdeCo.,Ltd. | 18.04 | - |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | 16.63 | 9.08 |
| SinopharmHolding(Hubei)MedicineCo.,Ltd | 15.20 | - |
| FoshanDezhongPharmaceuticalCo.,Ltd. | 14.19 | - |
| SinopharmLiaoningMedicialDeviceCo.,Ltd. | 11.50 | - |
| SinopharmHoldingShanxiCo.,Ltd. | 11.19 | 32.67 |
| SinopharmHoldingTaizhouCo.,Ltd. | 8.89 | 16.31 |
| ShanghaiSinoMedMedicineCo.,Ltd. | 8.57 | 31.93 |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | 7.50 | 2.72 |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | 6.17 | 8.20 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| SinopharmHoldingFuzhouMedicialDeviceCo.,Ltd | 4.07 | - |
| SinopharmHoldingPu’erCo.,Ltd. | 3.98 | - |
| SinopharmHoldingJiangxiCo.,Ltd. | 3.80 | - |
| SinopharmHoldingShanxiRunheMedicineCo.,Ltd | 3.65 | - |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | 3.54 | 11.88 |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | 2.91 | 17.44 |
| SinopharmHoldingUlanqabCo.,Ltd. | 2.91 | 35.33 |
| SinopharmLerentangXingtaiMedicineCo.,Ltd | 2.64 | - |
| SinopharmHoldingRizhaoCo.,Ltd. | 2.20 | 24.76 |
| SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd. | 1.70 | 15.28 |
| SinopharmLerentangHebeiMedicialInstrumentSupplyChainManagementCo.,Ltd. | 1.60 | - |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | 1.32 | 2.42 |
| SinopharmHoldingJilinCo.,Ltd. | 1.32 | - |
| SinopharmGroupLinfenCo.,Ltd. | 1.28 | - |
| SinopharmHoldingLuzhouMedicineCo.,Ltd | 1.01 | - |
| SinopharmHoldingTonghuaCo.,Ltd. | 0.37 | - |
| GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd. | 0.16 | - |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | 0.10 | 0.26 |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | - | 8,556.00 |
| Sinopharm(Guangzhou)MedicialDeviceCo.,Ltd. | - | 1,732.81 |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 1,523.54 |
| JiangsuLianhuanPharmaceuticalCo.,Ltd. | - | 538.61 |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | - | 179.93 |
| SinopharmHoldingShanxiJinzhongCo.,Ltd. | - | 179.83 |
| ShanghaiMeitaiMedicalInstrumentsCo.,Ltd. | - | 166.41 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)
| 2019 | 2018 | |
| (RMB’0,000) | (RMB’0,000) | |
| JingfukangPharmaceuticalGroupCo.,Ltd. | - | 144.26 |
| SinopharmHoldingYantaiCo.,Ltd. | - | 130.34 |
| SinopharmLerentangQinhuangdaoMedicineCo.,Ltd. | - | 91.62 |
| HenanWanxitangPharmacyCo.,Ltd. | - | 13.03 |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | - | 12.86 |
| QinghaiPharmaceuticalFactoryCo.,Ltd. | - | 12.51 |
| SinopharmHoldingGuizhouCo.,Ltd. | - | 7.37 |
| SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd. | - | 5.32 |
| SinopharmLerentangTangshanMedicineCo.,Ltd. | - | 4.76 |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | - | 3.29 |
| SinopharmHoldingHainanHongyiCo.,Ltd. | - | 3.15 |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | - | 2.86 |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | - | 1.61 |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | - | 0.71 |
| ZhijunSuzhou | - | 0.30 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | - | 0.24 |
| ZhijunTrade | - | 0.03 |
| SinopharmHoldingOrdosCo.,Ltd. | - | (1.38) |
| SinopharmHoldingYongzhouCo.,Ltd. | (0.01) | 3.72 |
| SinopharmProspectDentech(Beijing)Co.,Ltd. | (0.19) | 1.04 |
| SinopharmHoldingZhangzhouCo.,Ltd. | (0.41) | 1.2 |
| SinopharmGroupChengduXinlibangBiologicalProductsCo.,Ltd. | (0.95) | - |
| SinopharmShanxiMedicialDeviceCo.,Ltd. | (10.59) | - |
| HuayiPharmaceuticalCo.,Ltd. | (12.24) | 159.06 |
| ChengduListPharmaceuticalCo.,Ltd. | (174.98) | - |
| 477,727.07 | 405,277.59 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices
| 2019(RMB’0,000) | 2018(RMB’0,000) | |
| SinopharmGroupCo.,Ltd. | 20,583.75 | 13,127.67 |
| ShanghaiBeiyi | 11,534.81 | 9,917.50 |
| FoshanChanchengPharmaceuticalCo.,Ltd. | 11,126.10 | 8,713.35 |
| SinopharmHoldingHainanCo.,Ltd. | 10,176.88 | 6,157.07 |
| SinopharmHoldingHainanHongyiCo.,Ltd. | 3,239.54 | 4,734.71 |
| SinopharmHoldingBeijingHuahongCo.,Ltd. | 2,824.47 | 1,921.41 |
| SinopharmHoldingWenzhouCo.,Ltd. | 2,806.78 | 2,052.01 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 2,466.59 | 1,903.16 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 2,279.09 | 2,069.07 |
| ShenzhenHengShengHosital | 2,231.25 | 1,711.70 |
| SinopharmHoldingBeijingCo.,Ltd. | 2,202.63 | 1,441.53 |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 1,912.47 | 2,234.24 |
| SinopharmHoldingHenanCo.,Ltd. | 1,868.25 | 1,684.79 |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 1,836.41 | 1,952.87 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 1,772.13 | 1,596.99 |
| SinopharmHoldingNantongCo.,Ltd. | 1,555.67 | 1,608.96 |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | 1,459.24 | 1,225.58 |
| SinopharmHoldingShandongCo.,Ltd. | 1,431.16 | 1,078.15 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | 1,257.31 | 1,545.73 |
| ChinaNationalMedicinesCo.,Ltd. | 1,203.24 | 1,023.03 |
| FoshanChanchengDistrictCentralHospital | 1,191.82 | 947.72 |
| SinopharmHoldingHubeiCo.,Ltd. | 1,141.98 | 518.05 |
| SinopharmHoldingYangzhouCo.,Ltd. | 871.14 | 725.68 |
| SinopharmHoldingShanxiCo.,Ltd. | 840.82 | 190.23 |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 749.28 | 411.91 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 744.15 | 2,222.76 |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 698.54 | 323.19 |
| FoshanChanyixingMedicineDevelopmentCoLtd. | 679.73 | 432.38 |
| SinopharmHoldingAnhuiCo.,Ltd. | 616.25 | 255.38 |
| SinopharmHoldingYunnanCo.,Ltd. | 569.20 | 770.29 |
| SinopharmHoldingXuzhouCo.,Ltd. | 559.72 | 3.39 |
| SinopharmGroupShanxiCo.,Ltd. | 556.63 | 580.44 |
| ShenzhenKetaiMedicialScienceandTechnologyCo.,Ltd | 511.68 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)
| 2019(RMB’0,000) | 2018(RMB’0,000) | |
| SinopharmHoldingJinzhouCo.,Ltd. | 507.86 | - |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 472.19 | 740.10 |
| SinopharmHoldingTianjinCo.,Ltd. | 436.58 | 208.79 |
| SinopharmHoldingJilinCo.,Ltd. | 388.85 | 432.10 |
| SinopharmHoldingFujianCo.,Ltd. | 376.37 | 302.61 |
| ShanghaiLiyi | 321.81 | 343.80 |
| SinopharmHoldingShenyangCo.,Ltd. | 302.88 | 79.41 |
| SinopharmHoldingHunanCo.,Ltd. | 293.58 | 253.22 |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | 290.65 | (1.44) |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | 290.33 | 1,657.77 |
| SinopharmHoldingAnhuiMedicineCo.,Ltd | 284.08 | - |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 265.68 | 68.89 |
| SinopharmHoldingDalianCo.,Ltd. | 264.99 | 242.63 |
| ZhijunMedicine | 263.83 | 186.77 |
| SinopharmHoldingDalianHechengCo.,Ltd. | 182.43 | 77.07 |
| YuxiSinopharmMedicineCo.,Ltd. | 153.82 | 157.01 |
| SinopharmHoldingNingxiaCo.,Ltd. | 132.74 | 71.31 |
| SinopharmHoldingYanchengCo.,Ltd. | 125.78 | - |
| SinopharmHoldingGansuCo.,Ltd. | 119.62 | 214.52 |
| SinopharmHoldingLianyungangCo.,Ltd. | 115.23 | - |
| SinopharmHoldingWuhuCo.,Ltd. | 113.26 | 40.22 |
| SinopharmHoldingJiangxiCo.,Ltd. | 97.36 | 69.07 |
| SinopharmHoldingHongheCo.,Ltd. | 85.55 | 13.47 |
| SinopharmHoldingShanxiCo.,Ltd. | 81.90 | 72.08 |
| SinopharmHoldingWuxiCo.,Ltd. | 79.86 | 84.68 |
| SinopharmHoldingJiaozuoCo.,Ltd. | 70.26 | 24.79 |
| SinopharmHoldingChengduCo.,Ltd. | 69.53 | 97.59 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 64.87 | 29.70 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 63.81 | 65.21 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices
| 2019(RMB’0,000) | 2018(RMB’0,000) | |
| SinopharmHoldingTianjinNorthMedicineCo.,Ltd. | 63.64 | 26.69 |
| SinopharmHoldingTongrenCo.,Ltd. | 61.49 | 16.66 |
| ShenzhenQiandaMedicalBeautyClinic | 61.44 | 17.73 |
| ZhijunTrade | 57.14 | 57.14 |
| SinopharmHoldingQinghaiCo.,Ltd. | 57.04 | 41.59 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 53.62 | 85.74 |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | 52.21 | 0.97 |
| SinopharmHoldingGuizhouCo.,Ltd. | 47.90 | 236.34 |
| SinopharmHoldingJiangsuCo.,Ltd. | 36.65 | - |
| SinopharmHoldingFuzhouCo.,Ltd. | 30.12 | 5.08 |
| SinopharmLianruiXinxiang(Beijing)MedicialInstrumentCo.,Ltd | 28.78 | - |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | 28.72 | 2.26 |
| SinopharmHoldingChangzhouCo.,Ltd. | 28.41 | 43.58 |
| SinopharmHoldingChongqingCo.,Ltd. | 26.53 | 28.21 |
| SinopharmHoldingPharmacy(Nanchang)Co.,Ltd. | 25.50 | - |
| SinopharmHoldingTaizhouCo.,Ltd. | 25.38 | - |
| SinopharmHoldingHubeiHongyuanCo.,Ltd. | 24.17 | 18.54 |
| SinopharmHoldingChongqingTaiminMedicineCo.,Ltd | 23.35 | - |
| SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd. | 21.31 | 19.15 |
| Sinopharm(Hubei)HankouPharmacyLtd. | 19.53 | - |
| ZhijunPingshan | 18.55 | 45.82 |
| SinopharmHoldingHunanWeianChainStoreCo.,Ltd. | 18.50 | - |
| SinopharmHoldingZunyiCo.,Ltd. | 17.76 | 35.43 |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | 17.57 | 10.65 |
| FoshanSouthernFengliaoxingMedicialHospitalCo.,Ltd | 17.34 | - |
| SinopharmFengliaoxingPharmacy(Foshan)Co.,Ltd | 16.26 | - |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | 15.59 | - |
| SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd. | 15.54 | 3.16 |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | 15.47 | 6.65 |
| SinopharmHoldingUlanqabCo.,Ltd. | 14.51 | 27.10 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices
| 2019(RMB’0,000) | 2018(RMB’0,000) | |
| SinopharmHoldingJilinChainStoreCo.,Ltd. | 14.03 | 18.32 |
| SinopharmGuangdongMedicalEquipmentSupplyChainCo.,Ltd. | 13.91 | - |
| SinopharmLerentangBaodingHongkangMedicialChainStoreCo.,Ltd | 10.99 | - |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 10.27 | - |
| SinopharmHoldingLongyanCo.,Ltd. | 10.11 | 9.09 |
| SinopharmHoldingAnshunCo.,Ltd. | 8.77 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 8.67 | 40.59 |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | 8.55 | 8.01 |
| SinopharmHoldingChuxiongCo.,Ltd. | 8.51 | 3.84 |
| ShanghaiFoshionDentalTechnologyCo.,Ltd. | 7.98 | - |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | 7.94 | 1.03 |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | 7.68 | 1.24 |
| DongyuanAccord | 6.62 | - |
| SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd | 4.85 | - |
| SinopharmHoldingLiaochengCo.,Ltd. | 3.72 | 2.60 |
| SinopharmHoldingDeyangCo.,Ltd. | 3.68 | - |
| SinopharmJienuoMedicalTreatmentServiceCo.,Ltd. | 3.50 | - |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | 2.07 | - |
| SinopharmHoldingQuanzhouCo.,Ltd. | 2.06 | (0.86) |
| SinopharmHoldingQianxi’nanCo.,Ltd. | 2.02 | - |
| SinopharmNanpingMedicalInstrumentCo.,Ltd. | 2.00 | 0.93 |
| SinopharmHoldingPutianCo.,Ltd. | 1.97 | 15.06 |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | 1.51 | - |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | 1.39 | 1,736.10 |
| ChinaNationalScientificInstruments&MaterialsImp/ExpShenzhenCo.,Ltd. | 1.05 | 0.63 |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | 1.01 | 0.15 |
| SinopharmHoldingSipingCo.,Ltd. | 1.00 | 5.65 |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | 0.87 | 1.07 |
| SinopharmHoldingZhenjiangCo.,Ltd. | 0.84 | - |
| SinopharmHoldingHuaianCo.,Ltd. | 0.71 | 12.87 |
| SinopharmHoldingChangxingZhuanyePharmacy(Haikou)Co.,Ltd. | 0.51 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(1)Relatedpartytransactions–goodsandservices(Continued)Saleofgoodsandrenderingofservices
| 2019(RMB’0,000) | 2018(RMB’0,000) | |
| SinopharmHoldingFuzhouCo.,Ltd | 0.46 | - |
| SinopharmPharmacy(Shanghai)Co.,Ltd. | 0.37 | - |
| SinopharmJienuoMedicalTreatmentServiceCo.,Ltd. | 0.36 | 10.38 |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | 0.28 | 0.01 |
| SinopharmLerentangShijiazhuangMedicialManagementCo.,Ltd | 0.27 | - |
| SinopharmGuanaiJikunPharmacy(Haikou)Co.,Ltd | 0.09 | - |
| SinopharmHoldingZhejiangCo.,Ltd. | - | 92.13 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | - | 35.21 |
| SinopharmHoldingYongzhouCo.,Ltd. | - | 28.54 |
| SinopharmHoldingNanpingNewforceCo.,Ltd. | - | 16.91 |
| SinopharmHoldingLiu'anCo.,Ltd. | - | 12.84 |
| SinopharmHoldingSuzhouCo.,Ltd. | - | 12.84 |
| SinopharmHoldingXinxiangCo.,Ltd. | - | 7.76 |
| SinopharmHoldingHuangshiCo.,Ltd. | - | 4.52 |
| SinopharmHoldingHulunBuirCo.,Ltd. | - | 3.79 |
| SinopharmHoldingJiningCo.,Ltd. | - | 1.90 |
| FujianSinopharmMedicalInstrumentCo.,Ltd. | - | 1.84 |
| SinopharmLerentangBaodingMedicineCo.,Ltd. | - | 1.30 |
| SinopharmLerentangHengshuiMedicineCo.,Ltd. | - | 1.21 |
| FoshanShundeDistrictLecongSupplyandMarketingGroupShunketangMedicineCo.,Ltd. | - | 1.14 |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | - | 1.12 |
| SinopharmHoldingNanchangChainStoreCo.,Ltd. | - | 0.54 |
| WinteamPharmaceuticalGroupLtd. | - | 0.20 |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 0.11 |
| JiangsuWanbangPharmaceuticalMarketing&DistributionCo.,Ltd. | - | 0.09 |
| SinopharmHoldingLunanCo.,Ltd. | - | (12.68) |
| SinopharmHoldingNingdeCo.,Ltd. | (2.04) | 23.88 |
| SinopharmHoldingChangshaCo.,Ltd. | (2.20) | - |
| 102,910.81 | 83,442.70 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(2)Relatedpartyassettrusteeship
2018Typeofanassetunder
trusteeship
| Typeofanassetundertrusteeship | Beginningdateoftrusteeship | Endingdateoftrusteeship | Pricingbasisfortrusteeshipincome | Trusteeshipincomerecognised(RMB‘0,000) |
| NingboMeishanbondedportareaQilingequityinvestmentcenterLP | Otherassetundertrusteeship | 15June2018 | 31December2020 | Trusteeshipagreement | 51.69 |
(3)Relatedpartytransactions-leases
AsthelessorTypeofassetsunderleases
| Typeofassetsunderleases | Incomefromleasesin2019(RMB‘0,000) | Incomefromleasesin2018(RMB‘0,000) |
| ZhijunPharmaceutical | Building | 191.43 | 120.76 |
| ZhijunTrade | Building | 57.14 | 57.14 |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited. | Building | 18.50 | 17.01 |
| ChinaNationalMedicinesCo.,Ltd. | Building | 4.80 | 4.57 |
| 271.87 | 199.48 |
| Asthelessee | ||||
| Typeofassetsunderleases | Expensesfromleasesin2019(RMB‘0,000) | Expensesfromleasesin2018(RMB‘0,000) |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | Building | 1,011.23 | 1,092.38 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Equipment | 750.00 | 750.00 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | Building | 723.73 | 732.78 |
| ChinaNationalPharmaceuticalGroupShanghaiCo.,Ltd. | Building | 719.72 | 747.27 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | Building | 708.00 | 708.00 |
| LerentangInvestmentGroupCo.,Ltd. | Building | 644.81 | 540.00 |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | Building | 638.56 | - |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | Building | 479.06 | 481.11 |
| SinopharmHoldingYangzhouCo.,Ltd. | Building | 372.57 | 372.57 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(3)Relatedpartytransactions–leases(continued)
Asthelessee(continued)Typeofassetsunderleases
| Typeofassetsunderleases | Expensesfromleasesin2019(RMB‘0,000) | Expensesfromleasesin2018(RMB‘0,000) | |
| Pu'erSongmaoJiantangPharmaceuticalCo.,Ltd. | Building | 198.48 | - |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | Building | 189.75 | 193.15 |
| LinyiMedicalGroupCo.,Ltd. | Building | 184.81 | 384.50 |
| NanjingYuanguangTradingCo.,Ltd. | Building | 149.91 | 169.97 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | Building | 97.47 | 94.03 |
| TaishanXiangranhuiTradeCo.,Ltd. | Building | 81.76 | 91.13 |
| ZhangZhenfang | Building | 80.50 | 80.50 |
| HunanMinshengtangInvestmentCo.,Ltd. | Building | 53.12 | 453.25 |
| WangYang | Building | 52.57 | 52.57 |
| SinopharmHoldingBeijingCo.,Ltd. | Building | 49.52 | 52.46 |
| SinopharmHoldingKashiNew&SpecialDrugsCo.,Ltd. | Building | 48.54 | 46.94 |
| ShenyangPharmaceuticalCo.,Ltd. | Building | 47.62 | 762.69 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | Building | 46.13 | 36.85 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | Building | 38.86 | 24.71 |
| GuJinhua | Building | 35.76 | 35.76 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | Building | 31.54 | 30.84 |
| ChinaNationalMedicinesCo.,Ltd. | Building | 28.57 | 30.38 |
| HangzhouXihuBusinessGroupCorporation | Building | 27.89 | 26.56 |
| SinopharmHoldingRizhaoCo.,Ltd. | Building | 20.00 | - |
| ShenzhenJiufengInvestmentCo.,Ltd. | Building | 20.00 | 25.59 |
| GuHaiqun | Building | 19.04 | 17.45 |
| SinopharmGuodaTaishanQunkangPharmacyChainStoreCo.,Ltd. | Equipment | 13.74 | 14.85 |
| ZhijunPingshan | Building | 4.24 | - |
| SinopharmHoldingFujianCo.,Ltd. | Building | 1.30 | 1.31 |
| SinopharmGroupShanxiCo.,Ltd. | Building | - | 62.74 |
| XinjiangBaitongPropertyServiceCo.,Ltd. | Building | - | 10.82 |
| SinopharmGroupCo.,Ltd. | Building | - | 6.54 |
| 7,568.80 | 8,129.70 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(4)Relatedpartytransactions-guaranteesTheGrouphasnorelatedpartyguaranteesnotyetfulfilledthisyearandin2018.
(5)Relatedpartytransactions–borrowingsandlendings
Borrowings
| 2019 | Category | Amount(RMB‘0,000) | Inception | Maturity |
| SinopharmGroupFinanceCo.,Ltd. | Discountoncommercialacceptancebills | 38,966.99 | 24January2019-23July2019 | 28February2019-30November2019 |
| SinopharmGroupFinanceCo.,Ltd. | Short-termborrowings | 11,750.24 | 17April2019-24December2019 | 17July2019-24June2020 |
| SinopharmGroupFinanceCo.,Ltd. | Discountonbankacceptancebills | 4,394.67 | 14August2019-21November2019 | 24December2019-30March2020 |
| CNPGC | Long-termborrowings | 3,160.00 | 24May2017 | 24May2020 |
58,271.902018
| 2018 | Category | Amount(RMB‘0,000) | Inception | Maturity |
| SinopharmGroupFinanceCo.,Ltd. | Discountoncommercialacceptancebills | 56,552.71 | 6February2018-21December2018 | 25March2018-31May2019 |
| SinopharmGroupFinanceCo.,Ltd. | Discountonbankacceptancebills | 12,435.12 | 23May2018-29November2018 | 12June2018-12May2019 |
| CNPGC | Long-termborrowings | 3,160.00 | 24May2017 | 24May2020 |
| GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd. | Short-termborrowings | 320.00 | 27June2018 | 18October2018 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(5)Relatedpartytransactions–borrowingsandlendings(Continued)Lendings
| 2018 | Category | Amount(RMB‘0,000) | Inception | Maturity |
| ZhijunSuzhou | EntrustedLoan | 4,400.00 | 26January2018 | 25January2019 |
(6)Relatedpartyassettransfer
| Typeoftransaction | 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmGroupCo.,Ltd. | Purchaseofanintangibleasset | 233.64 | - |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | Purchaseofanintangibleasset | 67.33 | 28.30 |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | Purchaseofafixedasset | 43.94 | 43.07 |
| SinopharmHoldingTianjingCo.,Ltd. | Purchaseofafixedasset | 4.11 | - |
| 349.02 | 71.37 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
(7)Otherrelatedpartytransactions
Remunerationforkeymanagementpersonnel
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| 1,733.89 | 1,211.25 |
Interestexpense
Category
| Category | 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmGroupFinanceCo.,Ltd. | Paymentofnotesdiscountedinterest | 359.52 | 649.32 |
| SinopharmGroupFinanceCo.,Ltd. | Paymentofloaninterest | 144.38 | - |
| CNPGC | Paymentofloaninterest | 129.36 | 129.36 |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | Paymentoffinanceleasinginterest | - | 114.13 |
| GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd. | Interestonshort-termborrowings | - | 5.07 |
| 633.26 | 897.88 |
InterestincomeCategory
| Category | 2019(RMB‘0,000) | 2018(RMB‘0,000) | |
| ZhijunSuzhou | Entrustedloaninterestincome | 341.43 | 324.69 |
| SinopharmGroupFinanceCo.,Ltd. | Depositinterestincome | 17.92 | 57.27 |
| 359.35 | 381.96 |
Accountsreceivablefactoringwithoutrecourse
2019(RMB‘0,000)
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Accountsreceivablefactoring | Terminatedrecognitionloss | Accountsreceivablefactoring | Terminatedrecognitionloss | |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | 5,407.82 | 128.67 | 21,436.14 | 273.04 |
| SinopharmGroupFinanceCo.,Ltd. | 3,888.97 | 53.12 | - | - |
| 9,296.79 | 181.79 | 21,436.14 | 273.04 |
XRelatedpartyrelationshipsandtransactions(Continued)
5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)
Notes(ExpressedinRMB‘0,000):
(1)Relatedpartytransactions-saleofgoodsandrenderingofservices
(a)Duringthecurrentyear,theGrouppurchasedgoodsfromrelatedpartiesatthemarketpriceamountingto
RMB474,211.74(2018:RMB402,230.16).
(b)Duringthecurrentyear,therelatedpartiesrenderedservicestotheGroupatthemarketpriceamountingto
RMB3,515.33(2018:RMB3,047.43).
(c)Duringthecurrentyear,theGroupsoldgoodstorelatedpartiesatthemarketpriceamountingto
RMB101,678.35(2018:RMB82,255.02).
(d)Duringthecurrentyear,theGrouprenderedservicestorelatedpartiesatthemarketpriceamountingto
RMB1,232.46(2018:RMB1,187.68).
(2)Assettrusteeship
Duringthecurrentyear,theGrouphadnotrusteeshipincome(In2018,NingboMeishanbondedportareaQilingequityinvestmentcenterLPentrustedpartofitsrightofdailyoperationfortheGroupinthetargetCompany,JilinTianhePharmaceuticalTechnologyCo.,Ltd.TheGroupconfirmedthetrusteeshipincomeofRMB51.69accordingtothetrusteeshipagreement.
(3)Relatedpartytransactions-leases
(a)Duringthecurrentyear,theGroupleasedbuildingsandequipmenttorelatedpartiesandrecognisedincomeof
RMB271.87(2018:RMB199.48)accordingtotheagreements.
(b)Duringthecurrentyear,theGroupleasedbuildingsandequipmentfromrelatedpartiesandanexpenseof
RMB7,568.80(2018:RMB8,129.70)wasincurredaccordingtothelease.
(4)Relatedpartytransactions-guarantees
(a)TheGrouphadnorelatedpartyguaranteesthatarenotyetcompletedthisyearandin2018.
(5)Relatedpartytransactions-borrowings
(a)Duringthecurrentyear,theGroupborrowedRMB58,271.90atannualinterestratesrangingfrom3.00%to
4.57%fromrelatedparties(2018:RMB72,467.83atratesrangingfrom3.70%to5.40%).
(b)Duringthecurrentyear,theGrouphasnotlentcapitaltorelatedparties(2018:RMB4,400torelatedpartiesat
anannualinterestrateof8.00%).
(6)Relatedpartytransactions-assettransfer
(a)Duringthecurrentyear,theGrouppurchasedlong-termassetsfromrelatedpartiesatanegotiatedprice
amountingtoRMB349.02(2018:RMB71.37).
(b)Duringthecurrentyear,theGrouphasnotsoldanylong-termassetstorelatedparties(2018:nil).
(7)Othermajorrelatedpartytransactions
(a)Duringthecurrentyear,theGroupincurredemoluments(includingthosepaidincash,inkindandinother
forms)forkeymanagementpersonnelwithanamountofRMB1,733.89(2018:RMB1,211.25).
(b)Duringthecurrentyear,theGrouphaspaidborrowinginterest,entrustedloaninterest,etc.torelatedpartiesin
theamountofRMB633.26(2018:RMB897.88)
(c)Duringthecurrentyear,theGrouphasreceiveddepositinterestfromrelatedpartiesintheamountofRMB
359.35(2018:RMB381.96).
(d)Duringthecurrentyear,theGroupfactoredasmallportionofaccountsreceivableatamortisedcosttorelated
parties.TheamountofaccountsreceivablederecognisedwasRMB9,296.79(2018:RMB21,436.14),amountoflossrecognisedthroughInvestmentincomewasRMB181.79(2018:RMB273.04).
XRelatedpartyrelationshipsandtransactions(Continued)
6.CommitmentsbetweentheGroupandrelatedparties
Aslessee
2019(RMB‘0,000)
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| ChinaNationalPharmaceuticalGroupShanghaiCo.,Ltd. | 753.01 | 4,552.56 |
| BeijingHuafangInvestmentCo.,Ltd. | 31.10 | - |
| ShenyangPharmaceuticalCo.,Ltd. | - | 3,250.00 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | - | 1,433.00 |
| LinyiMedicalGroupCo.,Ltd. | - | 880.35 |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | - | 854.72 |
| SinopharmHoldingYangzhouCo.,Ltd. | - | 782.40 |
| HunanMinshengtangInvestmentCo.,Ltd. | - | 699.98 |
| LerentangInvestmentGroupCo.,Ltd. | - | 677.00 |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | - | 505.16 |
| NanjingYuanguangTradingCo.,Ltd. | - | 297.00 |
| TaishanXiangranhuiTradeCo.,Ltd. | - | 270.41 |
| GuJinhua | - | 257.05 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | - | 234.47 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | - | 161.25 |
| SinopharmGroupCo.,Ltd. | - | 121.29 |
| SinopharmHoldingBeijingCo.,Ltd. | - | 120.00 |
| GuHaiqun | - | 87.81 |
| ZhangZhenfang | - | 80.50 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | - | 71.22 |
| ChinaNationalMedicinesCo.,Ltd. | - | 63.00 |
| HangzhouXihuBusinessGroupCorporation | - | 60.04 |
| WangYang | - | 55.20 |
| ShenzhenJiufengInvestmentCo.,Ltd. | - | 55.00 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | - | 48.44 |
| SinopharmGuodaTaishanQunkangPharmacyChainStoreCo.,Ltd. | - | 43.42 |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | - | 41.23 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | - | 13.78 |
| XinjiangBaitongPropertyServiceCo.,Ltd. | - | 9.66 |
| SinopharmHoldingFujianCo.,Ltd. | - | 1.38 |
| 784.11 | 15,727.32 |
Note:Thecommitmentsdisclosedarerelatedtotheleasecontractssignedbutnotyetexecutedinthecurrentyear,andall
oftheoperatingleasecontractsweredisclosedin2018.
XRelatedpartyrelationshipsandtransactions(Continued)
6.CommitmentsbetweentheGroupandrelatedparties(Continued)
Aslessor
2019(RMB‘0,000)
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| ZhijunMedicine | 111.67 | 111.67 |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited. | 36.43 | 56.08 |
| ZhijunTrade | 28.57 | 28.57 |
| ChinaNationalMedicinesCorporationLtd. | 5.04 | - |
| 181.71 | 196.32 |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties
| Accountsreceivable | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| FoshanChanchengPharmaceuticalCo.,Ltd. | 4,259.62 | 25.95 | 3,988.81 | 23.50 |
| SinopharmGroupCo.,Ltd. | 4,017.25 | - | 3,226.31 | - |
| ShanghaiBeiyi | 2,719.44 | - | 1,196.65 | - |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 806.41 | - | 537.29 | - |
| SinopharmHoldingHainanCo.,Ltd. | 591.60 | 0.01 | 660.76 | - |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 407.83 | - | 383.93 | - |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 407.77 | - | 314.32 | - |
| SinopharmHealthOnlineCo.,Ltd. | 389.02 | - | 654.36 | - |
| FoshanChanchengDistrictCentralHospital | 369.18 | 2.32 | 244.04 | 1.28 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 365.89 | - | 398.65 | - |
| SinopharmHoldingHainanHongyiCo.,Ltd. | 346.42 | - | 537.01 | - |
| ShenzhenHengShengHosital | 333.52 | - | 267.49 | - |
| SinopharmHoldingBeijingCo.,Ltd. | 295.06 | - | 88.88 | - |
| SinopharmHoldingBeijingHuahongCo.,Ltd. | 287.61 | - | 400.96 | - |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 208.53 | - | 16.46 | - |
| FoshanChanyixingMedicineDevelopmentCoLtd. | 198.36 | 0.58 | 174.38 | 0.94 |
| SinopharmGroupDistributionCo.,Ltd. | 184.95 | - | - | - |
| SinopharmHoldingHubeiCo.,Ltd. | 156.04 | - | 6.83 | - |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | 155.84 | - | 108.19 | - |
| SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd. | 134.91 | - | 98.65 | - |
| SinopharmHoldingHenanCo.,Ltd. | 119.01 | - | 103.63 | - |
| ChinaNationalMedicinesCo.,Ltd. | 98.51 | - | 145.42 | - |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 97.06 | - | 88.45 | - |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 90.87 | - | 117.86 | - |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 88.77 | - | 170.43 | - |
| SinopharmHoldingYangzhouCo.,Ltd. | 84.19 | - | 54.03 | - |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 79.76 | - | 77.25 | - |
| SinopharmHoldingWenzhouCo.,Ltd. | 69.96 | - | 126.16 | - |
| SinopharmGroupShanxiCo.,Ltd. | 63.27 | - | 102.87 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Accountsreceivable(continued) | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| SinopharmHoldingJilinCo.,Ltd. | 60.01 | - | 149.97 | - |
| SinopharmHoldingTianjinCo.,Ltd. | 57.49 | - | 20.04 | - |
| SinopharmHoldingShandongCo.,Ltd. | 53.33 | - | 21.10 | - |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | 34.19 | - | 509.09 | - |
| SinopharmHoldingShanxiCo.,Ltd. | 33.02 | - | 6.84 | - |
| SinopharmHoldingYunnanCo.,Ltd. | 29.88 | - | 2.77 | - |
| SinopharmHoldingHunanCo.,Ltd. | 28.14 | - | 56.93 | - |
| SinopharmHoldingDalianCo.,Ltd. | 26.64 | - | 14.43 | - |
| YuxiSinopharmMedicineCo.,Ltd. | 25.55 | - | 18.25 | - |
| SinopharmHoldingXuzhouCo.,Ltd. | 25.26 | - | 3.49 | - |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 24.99 | - | 1.75 | - |
| SinopharmHoldingDalianHechengCo.,Ltd. | 15.65 | - | 12.67 | - |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 13.52 | - | 9.02 | - |
| SinopharmHoldingQinghaiCo.,Ltd. | 8.80 | - | 9.63 | - |
| SinopharmLerentangChengdeMedicineCo.,Ltd. | 8.06 | - | - | - |
| SinopharmHoldingChangzhouCo.,Ltd. | 6.69 | - | - | - |
| SinopharmHoldingAnhuiMedicineCo.,Ltd | 6.68 | - | - | - |
| SinopharmHoldingUlanqabCo.,Ltd. | 6.39 | - | - | - |
| SinopharmHoldingFuzhouCo.,Ltd. | 6.36 | - | - | - |
| ShanghaiLiyi | 5.89 | - | 7.64 | - |
| SinopharmGroupTianjinNorthCo.,Ltd. | 5.20 | - | 9.14 | - |
| SinopharmHoldingChengduCo.,Ltd. | 5.00 | - | - | - |
| SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd. | 4.54 | - | 0.13 | - |
| FoshanSouthernFengliaoxingMedicialHospitalCo.,Ltd | 4.26 | - | - | - |
| SinopharmHoldingJiangxiCo.,Ltd. | 3.84 | - | - | - |
| SinopharmHoldingJiangsuCo.,Ltd. | 3.50 | - | - | - |
| SinopharmHoldingNantongCo.,Ltd. | 2.46 | - | 6.65 | - |
| SinopharmLerentangTangshanMedicineCo.,Ltd. | 1.68 | - | - | - |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | 0.95 | - | - | - |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Accountsreceivable(continued) | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| SinopharmHoldingNingdeCo.,Ltd. | 0.76 | - | - | - |
| SinopharmHoldingHongheCo.,Ltd. | 0.61 | - | - | - |
| SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd | 0.59 | - | - | - |
| SinopharmFengliaoxingMedicalHospitalCo.,Ltd. | 0.45 | - | 1.68 | 0.01 |
| SinopharmHoldingZunyiCo.,Ltd. | 0.31 | - | - | - |
| SinopharmPharmacy(Shanghai)Co.,Ltd. | 0.21 | - | - | - |
| ZhijunMedicine | 0.15 | - | 0.11 | - |
| SinopharmLerentangShijiazhuangMedicialManagementCo.,Ltd | 0.11 | - | - | - |
| SinopharmGroupFengliaoxingTraditionalChineseMedicalCenterFoshanNanhaiCo.,Ltd. | 0.05 | - | 0.07 | - |
| SinopharmHoldingAnhuiCo.,Ltd. | - | - | 22.14 | - |
| SinopharmHoldingGansuCo.,Ltd. | - | - | 17.69 | - |
| SinopharmHoldingWuxiCo.,Ltd. | - | - | 15.76 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | - | - | 14.46 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd. | - | - | 13.97 | - |
| SinopharmHoldingShenyangCo.,Ltd. | - | - | 12.31 | - |
| SinopharmJienuoMedicalTreatmentServiceCo.,Ltd. | - | - | 12.04 | - |
| HubeiMedicalGroupCo.,Ltd. | - | - | 6.20 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 5.85 | - |
| SinopharmHoldingHeilongjiangCo.,Ltd. | - | - | 5.00 | - |
| ZhijunPingshan | - | - | 3.96 | - |
| SinopharmHoldingGuizhouCo.,Ltd. | - | - | 1.60 | - |
| SinopharmMedicalInstrumentFoshanCo.,Ltd. | - | - | 1.19 | - |
| SinopharmXinxiangChainStoreCo.,Ltd. | - | - | 0.21 | - |
| SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd. | - | - | 0.15 | - |
| 17,937.86 | 28.86 | 15,284.00 | 25.73 |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Notesreceivable | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| SinopharmHoldingHainanCo.,Ltd. | 2373.10 | - | 1,203.54 | - |
| SinopharmHoldingHenanCo.,Ltd. | 198.39 | - | 103.26 | - |
| SinopharmHoldingHainanHongyiCo.,Ltd. | 190.14 | - | 1,023.45 | - |
| SinopharmHoldingShandongCo.,Ltd. | 175.46 | - | 124.17 | - |
| SinopharmHoldingNantongCo.,Ltd. | 161.00 | - | - | - |
| SinopharmHoldingGuizhouYitongMedicineCo.,Ltd | 143.28 | - | - | - |
| ZhijunSuzhou | 97.39 | - | - | - |
| SinopharmHoldingShanxiCo.,Ltd. | 61.78 | - | 107.79 | - |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 50.00 | - | - | - |
| SinopharmHoldingYunnanCo.,Ltd. | 19.22 | - | - | - |
| SinopharmHoldingHubeiBokangCo.,Ltd | 18.35 | - | - | - |
| SinopharmHoldingYanchengCo.,Ltd. | 13.42 | - | - | - |
| SinopharmHoldingShanxiCo.,Ltd. | 11.47 | - | - | - |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 8.86 | - | 114.84 | - |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | - | - | 20,245.61 | - |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | - | - | 314.44 | - |
| SinopharmHoldingShenyangCo.,Ltd. | - | - | 42.25 | - |
| SinopharmHoldingFujianCo.,Ltd. | - | - | 40.00 | - |
| SinopharmHoldingAnhuiCo.,Ltd. | - | - | 39.01 | - |
| SinopharmHoldingShanxiCo.,Ltd. | - | - | 35.95 | - |
| SinopharmHoldingJilinCo.,Ltd. | - | - | 27.41 | - |
| SinopharmHoldingChengduCo.,Ltd. | - | - | 20.13 | - |
| SinopharmHoldingNingxiaCo.,Ltd. | - | - | 17.66 | - |
| SinopharmHoldingGansuCo.,Ltd. | - | - | 16.32 | - |
| 3,521.86 | - | 23,475.83 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Otherreceivables | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| ZhijunSuzhou | 4,536.03 | 4,536.03 | 4,584.66 | - |
| Pu'erSongmaoJiantangPharmaceuticalCo.,Ltd. | 688.68 | - | - | - |
| SinopharmHoldingFujianCo.,Ltd. | 276.08 | - | 0.55 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 173.71 | - | 249.42 | - |
| HenanWanxitangPharmacyCo.,Ltd. | 104.31 | - | 109.90 | - |
| ShyndecPharma | 98.39 | - | 791.34 | - |
| ShanghaiDingqun | 83.49 | - | - | - |
| ZhijunPharmaceutical | 22.27 | 0.06 | 10.98 | 0.06 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 10.00 | - | 10.00 | - |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 4.85 | - | 4.85 | - |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd | 2.87 | - | - | - |
| ZhijunTrade | 2.54 | - | - | - |
| SinopharmGuangdongMedicalEquipmentSupplyChainCo.,Ltd. | 2.31 | - | - | - |
| ZhijunPingshan | 1.85 | - | - | - |
| SinopharmGroupZhonglianPharmaceuticalGroupCo.,Ltd. | 0.50 | 0.10 | 0.50 | 0.10 |
| SinopharmHealthOnlineCo.,Ltd. | - | - | 8.18 | - |
| SinopharmHoldingJiaozuoCo.,Ltd. | - | - | 3.02 | - |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | - | - | 1.87 | - |
| 6,007.88 | 4,536.19 | 5,775.27 | 0.16 |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Advancestosuppliers | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| SinopharmHoldingShanxiCo.,Ltd. | 334.72 | - | 333.03 | - |
| JiangxiEryeMedicineMarketingCo.,Ltd. | 278.64 | - | 72.98 | - |
| SinopharmGroupCo.,Ltd. | 148.66 | - | 230.83 | - |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 120.47 | - | - | - |
| ShyndecPharma | 75.85 | - | 5.78 | - |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 74.25 | - | 93.13 | - |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 59.98 | - | 0.18 | - |
| ChengduRongshengPharmacyCo.,Ltd. | 55.54 | - | 141.66 | - |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 49.97 | - | 0.01 | - |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | 39.96 | - | - | - |
| ChinaNationalMedicinesCo.,Ltd. | 20.49 | - | 7.88 | - |
| ShantouJinshiPowderInjectionCo.,Ltd. | 13.80 | - | - | - |
| SinopharmHoldingBeijingCo.,Ltd. | 13.00 | - | 12.38 | - |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 10.22 | - | 4.56 | - |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 9.75 | - | 4.87 | - |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | 9.53 | - | 7.89 | - |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | 8.25 | - | 1.57 | - |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 7.20 | - | - | - |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 6.58 | - | 22.72 | - |
| GuilinSouthpharmaceuticalCo.,Ltd. | 5.42 | - | 1.10 | - |
| SuzhouEryePharmaceuticalCo.,Ltd. | 3.31 | - | - | - |
| ZhijunMedicine | 2.98 | - | 13.94 | - |
| ShanghaiTongyuInformationTechnologyCo.,Ltd. | 2.35 | - | - | - |
| SinopharmHoldingHunanCo.,Ltd. | 1.70 | - | - | - |
| WinteamPharmaceuticalGroupLtd. | 1.40 | - | 0.93 | - |
| SinopharmHoldingChengduCo.,Ltd. | 1.32 | - | - | - |
| XinjiangBaitongPropertyServiceCo.,Ltd. | 1.31 | - | 1.69 | - |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 1.14 | - | 0.14 | - |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | 0.55 | - | - | - |
| SinopharmHoldingHubeiCo.,Ltd. | 0.47 | - | - | - |
| SinopharmHoldingYangzhouCo.,Ltd. | 0.13 | - | - | - |
| LanzhouBiologicalTechnologyDevelopmentCo.,Ltd. | 0.06 | - | - | - |
| JinzhouAhonPharmaceuticalCo.,Ltd. | 0.02 | - | 1.65 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
7.Amountsduefromrelatedparties(Continued)
| Advancestosuppliers(continued) | ||||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) | |||
| Amount | Provisionforbaddebts | Amount | Provisionforbaddebts | |
| SinopharmGroupShanxiCo.,Ltd. | - | - | 389.10 | - |
| HunanMinshengtangInvestmentCo.,Ltd. | - | - | 334.93 | - |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | - | - | 164.33 | - |
| LinyiMedicalGroupCo.,Ltd. | - | - | 77.54 | - |
| SinopharmHoldingShanxiLvliangCo.,Ltd. | - | - | 66.00 | - |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | - | - | 60.94 | - |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | - | - | 53.60 | - |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | - | - | 34.68 | - |
| SinopharmXinjiangKorlaPharmaceuticalCo.,Ltd. | - | - | 28.25 | - |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | - | - | 23.72 | - |
| NanjingYuanguangTradingCo.,Ltd. | - | - | 16.97 | - |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | - | - | 10.35 | - |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | - | - | 4.54 | - |
| TaishanXiangranhuiTradeCo.,Ltd. | - | - | 3.95 | - |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | - | - | 0.12 | - |
| SinopharmHoldingFujianCo.,Ltd. | - | - | 0.02 | - |
| 1,359.02 | - | 2,227.96 | - |
| Othernon-currentassets | 2019 | 2018 | ||
| (RMB‘0,000) | (RMB‘0,000) |
| HunanMinshengtangInvestmentCo.,Ltd. | - | 351.92 |
Amountsduefromrelatedpartiesareinterest-freeandunsecuredwithnofixedtermonrepayment,exceptthatnotesreceivablefromrelatedpartieshavefixedtermsofrepayment,andentrustedloansfromrelatedpartieshavefixedtermsofrepaymentwithinterest.
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties
| Accountspayable | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 6,621.91 | 10,426.28 |
| ChinaNationalMedicinesCo.,Ltd. | 4,001.77 | 4,835.29 |
| FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd. | 3,172.37 | 1,047.00 |
| JiangsuWanbangPharmaceuticalMarketing&DistributionCo.,Ltd. | 2,401.57 | 1,503.86 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 1,716.24 | 1,825.99 |
| SinopharmHoldingHubeiCo.,Ltd. | 1,384.40 | - |
| SinopharmGroupCo.,Ltd. | 1,281.99 | 1,373.23 |
| SinopharmGroupShanxiCo.,Ltd. | 853.24 | 94.51 |
| SinopharmLerentangHebeiPharmaceuticalCo.,Ltd. | 818.88 | 840.23 |
| ZhijunPingshan | 661.86 | 355.05 |
| SinopharmHoldingYangzhouCo.,Ltd. | 645.32 | 763.04 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 600.41 | 350.68 |
| SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd. | 595.17 | 91.72 |
| SinopharmHoldingPingdingshanCo.,Ltd. | 531.68 | 360.33 |
| ShenzhenMainLuckPharmaceuticalCo.,Ltd. | 528.48 | 856.57 |
| SinopharmHoldingJiangsuCo.,Ltd. | 485.71 | 674.53 |
| WinteamPharmaceuticalGroupLtd. | 431.46 | 629.45 |
| ZhijunMedicine | 401.24 | 292.21 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 399.74 | 222.59 |
| JinzhouAhonPharmaceuticalCo.,Ltd. | 388.56 | 242.29 |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | 386.97 | 18.37 |
| SinopharmHoldingFujianCo.,Ltd. | 343.43 | 448.46 |
| SinopharmHoldingBeijingCo.,Ltd. | 339.70 | 747.80 |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 327.92 | 151.90 |
| SinopharmHoldingChangzhouCo.,Ltd. | 320.14 | 148.46 |
| SinopharmHoldingHenanCo.,Ltd. | 297.06 | 144.12 |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 280.99 | 421.91 |
| ChinaOtsukaPharmaceuticalCo.,Ltd. | 259.84 | 157.17 |
| SinopharmHoldingNingxiaCo.,Ltd. | 235.44 | 300.77 |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 234.13 | 96.69 |
| SinopharmHoldingShenyangCo.,Ltd. | 225.70 | 401.60 |
| SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd. | 197.89 | 79.54 |
| SichuanHexinPharmaceuticalCo.,Ltd. | 180.11 | 45.45 |
| SinopharmHuixinQingyuan(Beijing)TechnologyDevelopmentCo.,Ltd.. | 156.56 | - |
| SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd. | 149.40 | - |
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Accountspayable(continued) | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingXiamenCo.,Ltd. | 140.81 | 171.08 |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 140.07 | 105.07 |
| YichangHumanwellPharmaceuticalCo.,Ltd. | 125.17 | 193.61 |
| SinopharmHoldingWuxiCo.,Ltd. | 123.56 | 49.27 |
| SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd. | 120.95 | 175.52 |
| SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd | 119.03 | - |
| ShyndecPharma | 105.98 | 51.15 |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 102.14 | 54.91 |
| TibetYaoyouMedicinesCo.,Ltd. | 99.85 | 834.66 |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 99.82 | 17.59 |
| SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd | 86.55 | - |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | 84.89 | 125.43 |
| SinopharmGroupZhonglianPharmaceuticalGroupCo.,Ltd. | 83.70 | 56.05 |
| SinopharmHoldingJinzhouCo.,Ltd. | 82.23 | 53.10 |
| SinopharmHoldingYunnanDongchangMedicineCo.,Ltd. | 81.10 | - |
| ShanghaiChaohuiPharmaceuticalCo.,Ltd. | 80.74 | 31.18 |
| SinopharmHoldingFuzhouCo.,Ltd. | 80.22 | 32.87 |
| HunanDongtingPharmaceuticalCo.,Ltd. | 77.36 | 26.54 |
| ChinaNationalPharmaceuticalIndustryCo.,Ltd. | 73.60 | 36.38 |
| SinopharmChuanKangPharmaceuticalCo.,Ltd. | 73.57 | 47.25 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | 71.19 | 92.21 |
| SinopharmHoldingYanchengCo.,Ltd. | 68.89 | 19.02 |
| SinopharmGroupGuoruiMedicineCo.,Ltd. | 66.14 | 105.71 |
| FujianChengtianJinlingPharmaceuticalCo.,Ltd. | 63.97 | 50.56 |
| SuzhouEryePharmaceuticalCo.,Ltd. | 62.30 | 27.83 |
| SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd. | 60.68 | 16.55 |
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 56.16 | 37.08 |
| SinopharmHoldingTongliaoCo.,Ltd. | 54.07 | 87.26 |
| SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd. | 50.24 | 113.38 |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | 49.04 | 0.06 |
| PudongNewAreaofShanghaiPharmaceuticalMedicineLtd. | 47.39 | 9.15 |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | 46.41 | 39.89 |
| SinopharmGroupYibinPharmaceuticalsCo.,Ltd. | 46.18 | 15.00 |
| JiangsuHuanghePharmaceuticalCo.,Ltd. | 43.37 | 26.12 |
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Accountspayable(continued) | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingHulunBuirCo.,Ltd. | 42.89 | 36.44 |
| ShanghaiTransfusionTechnologyCo.,Ltd. | 39.66 | 35.21 |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 37.96 | 34.28 |
| ShanghaiInternationalPharmaceuticalTradeCo.,Ltd. | 37.46 | - |
| SinopharmHoldingBeijingHuahongCo.,Ltd. | 36.10 | 149.86 |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 33.47 | 16.52 |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | 31.51 | 119.18 |
| SinopharmHoldingChangshaCo.,Ltd. | 28.83 | - |
| SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd. | 28.59 | 21.3 |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | 26.04 | 29.76 |
| ShanghaiMerroPharmaceuticalCo.,Ltd. | 23.04 | 9.03 |
| SinopharmHoldingPutianCo.,Ltd. | 22.54 | 0.71 |
| SinopharmShantouJinshiPharmaceuticalCo.,Ltd. | 22.48 | 10.27 |
| HuayiPharmaceuticalCo.,Ltd. | 22.41 | 96.14 |
| SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd. | 21.99 | 8.45 |
| ChinaNationalMedicialDeviceShandongCo.,Ltd. | 21.62 | - |
| JinzhouAhonPharmaceuticalCo.,Ltd | 21.46 | - |
| SinopharmHoldingShandongCo.,Ltd. | 20.77 | 1.09 |
| ChengduRongshengPharmacyCo.,Ltd. | 20.30 | 194.73 |
| SinopharmHoldingPu’erCo.,Ltd. | 17.98 | - |
| ChengduListPharmaceuticalCo.,Ltd. | 17.89 | - |
| SinopharmHoldingDezhouCo.,Ltd. | 17.22 | 23.36 |
| SinopharmHoldingBayannurCo.,Ltd | 16.95 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 16.45 | 308.04 |
| SinopharmHoldingLianyungangCo.,Ltd. | 15.62 | 27.61 |
| SinopharmHoldingAnhuiCo.,Ltd. | 14.98 | 1.86 |
| SinopharmHoldingDalianCo.,Ltd. | 13.72 | 18.25 |
| SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd. | 13.25 | 35.07 |
| SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd. | 13.17 | 5.59 |
| ShantouJinshiPowderInjectionCo.,Ltd. | 12.45 | 24.54 |
| SinopharmLiaoningMedicialDeviceCo.,Ltd. | 11.99 | - |
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Accountspayable(continued) | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingHunanMedicialDevelopmentCo.,Ltd | 11.85 | - |
| SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd. | 11.62 | 5.02 |
| TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup | 9.22 | 9.71 |
| FoshanDezhongPharmaceuticalCo.,Ltd. | 7.38 | 9.88 |
| SinopharmHoldingJinanCo.,Ltd. | 5.82 | 18.93 |
| SinopharmHoldingTaizhouCo.,Ltd. | 5.55 | 9.95 |
| SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd. | 5.31 | 2.72 |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 5.28 | 5.28 |
| HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd. | 4.74 | 25.51 |
| SinopharmHoldingShanxiRunheMedicineCo.,Ltd. | 4.03 | - |
| SinopharmHoldingJiangxiCo.,Ltd. | 3.80 | - |
| SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd. | 3.48 | 10.24 |
| SinopharmHoldingUlanqabCo.,Ltd. | 3.38 | 6.12 |
| SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd. | 3.31 | 2.55 |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | 3.10 | - |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | 3.10 | 5.71 |
| SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd. | 2.32 | 2.05 |
| SinopharmShanghaiMedicineDeviceCo.,Ltd. | 1.65 | 1.66 |
| SinopharmHoldingDalianHechengCo.,Ltd. | 1.61 | - |
| SinopharmHoldingQuanzhouCo.,Ltd. | 1.60 | 6.29 |
| SinopharmHoldingSuzhouCo.,Ltd. | 1.37 | 187.18 |
| SinopharmHoldingShanxiCo.,Ltd. | 1.27 | - |
| SinopharmHoldingTianjinCo.,Ltd. | 1.20 | 1.56 |
| SinopharmWuhanbloodproductsCo.,Ltd. | 1.16 | 17.04 |
| SinopharmIndustryInvestmentCo.,Ltd. | 1.13 | - |
| SinopharmHebeiMedicalInstrumentCo.,Ltd. | 1.05 | - |
| SinopharmHoldingLunanCo.,Ltd. | 0.76 | 7.16 |
| SinopharmHoldingRizhaoCo.,Ltd. | 0.63 | 1.02 |
| SinopharmAnhuiMedicialDeviceCo.,Ltd. | 0.52 | - |
| SinopharmHoldingTonghuaCo.,Ltd. | 0.42 | - |
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Accountspayable(continued) | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd. | 0.39 | - |
| ChangchunChangshengGenePharmaceuticalCo.,Ltd. | 0.30 | 0.15 |
| SinopharmHoldingShanxiJinchengCo.,Ltd. | 0.21 | 0.38 |
| SinopharmHoldingOrdosCo.,Ltd. | 0.18 | 0.18 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 0.12 | - |
| GuilinSouthpharmaceuticalCo.,Ltd. | 0.12 | 0.12 |
| SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd. | 0.11 | 0.11 |
| SinopharmHoldingZhangzhouCo.,Ltd. | 0.10 | 0.55 |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 0.09 | 12.29 |
| SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd. | 0.07 | 0.01 |
| ZhijunTrade | 0.05 | 0.05 |
| SinopharmHoldingLiaochengCo.,Ltd. | 0.02 | 1.62 |
| ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd. | 0.01 | 0.01 |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | 0.01 | 0.01 |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 630.92 |
| HenanWanxitangPharmacyCo.,Ltd. | - | 205.36 |
| JiangsuLianhuanPharmaceuticalCo.,Ltd. | - | 132.13 |
| BeijingHuamiaoPharmaceuticalCo.,Ltd. | - | 37.21 |
| JiangxiEryeMedicineMarketingCo.,Ltd. | - | 26.26 |
| SinopharmGroupSouthwestMedicineCo.,Ltd. | - | 19.50 |
| JingfukangPharmaceuticalGroupCo.,Ltd. | - | 18.44 |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | - | 18.00 |
| SinopharmHoldingShanxiZhidekangMedicineCo.,Ltd. | - | 14.00 |
| ShanghaiSinoMedMedicineCo.,Ltd. | - | 9.26 |
| SichuanJiangyouzhongbafuziTechnologyDevelopmentCo.,Ltd. | - | 8.00 |
| SinopharmHoldingHainanCo.,Ltd. | - | 7.27 |
| SinopharmShanXiRuifulaiPharmaceuticalCo.,Ltd. | - | 6.31 |
| SinopharmHoldingZhejiangCo.,Ltd. | - | 5.85 |
| QinghaiPharmaceuticalFactoryCo.,Ltd. | - | 3.30 |
| SinopharmHoldingYongzhouCo.,Ltd. | - | 1.99 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | - | 0.97 |
| SinopharmHoldingHunanCo.,Ltd. | - | 0.77 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | - | 0.27 |
| SinopharmProspectDentech(Beijing)Co.,Ltd. | - | 0.15 |
| 35,454.88 | 35,352.88 |
XRelatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Notespayable | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 14,738.71 | 23,006.74 |
| SinopharmHoldingShenyangCo.,Ltd. | 9,431.86 | 7,689.40 |
| SinopharmGroupShanxiCo.,Ltd. | 8,709.55 | 6,792.66 |
| SinopharmLe-Ren-TangMedicineCo.,Ltd. | 8,149.93 | 2,207.62 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | 4,165.56 | 1,388.77 |
| ChinaNationalMedicinesCo.,Ltd. | 4,009.35 | 2,665.46 |
| JiangsuWanbangPharmaceuticalMarketing&DistributionCo.,Ltd. | 3,110.02 | 481.74 |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 2,990.22 | 2,045.98 |
| SinopharmHoldingShanxiCo.,Ltd. | 2,620.38 | 1,834.00 |
| LanzhouBiologicalTechnologyDevelopmentCo.,Ltd. | 1,794.00 | 300.00 |
| SinopharmHoldingFujianCo.,Ltd. | 1,208.06 | 701.10 |
| SinopharmHoldingLunanCo.,Ltd. | 1,065.84 | 859.63 |
| SinopharmLerentangHebeiPharmaceuticalCo.,Ltd. | 704.76 | 1,465.05 |
| SinopharmHoldingXiamenCo.,Ltd. | 578.10 | 536.20 |
| SinopharmLerentangShijiazhuangMedicineCo.,Ltd. | 559.81 | 814.83 |
| ShenzhenWanweiMedicineTradingCo.,Ltd. | 514.88 | 240.24 |
| ChongqingYaoyouPharmaceuticalCo.,Ltd. | 437.16 | 553.83 |
| SinopharmHoldingHunanCo.,Ltd. | 340.61 | 311.41 |
| MainLuckPharmaceutical | 236.09 | 287.74 |
| SinopharmHoldingJinzhouCo.,Ltd. | 231.53 | 161.13 |
| ChengduRongshengPharmacyCo.,Ltd. | 202.50 | 267.35 |
| SinopharmHoldingChangzhouCo.,Ltd. | 202.00 | - |
| SinopharmHoldingNingxiaCo.,Ltd. | 150.00 | 141.38 |
| YichangHumanwellPharmaceuticalCo.,Ltd. | 131.34 | - |
| ZhijunMedicine | 108.71 | 32.57 |
| SinopharmHuixinQingyuan(Beijing)TechnologyDevelopmentCo.,Ltd.. | 103.36 | - |
| SinopharmHoldingDalianCo.,Ltd. | 99.20 | 95.02 |
| SinopharmHoldingJinanCo.,Ltd. | 95.00 | 188.00 |
| GuizhouTongjitangPharmaceuticalCo.,Ltd. | 83.30 | - |
| SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd. | 67.87 | 35.66 |
| SinopharmHoldingYanchengCo.,Ltd. | 54.43 | - |
| ZhijunPingshan | 52.97 | - |
XRelatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Notespayable(continued) | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| GuangdongMedi-WorldPharmaceuticalCo.,Ltd. | 42.88 | - |
| AnhuiJingfangPharmaceuticalCo.,Ltd. | 34.95 | - |
| JiangsuFuxingPharmaceuticalTradingCo.,Ltd | 32.05 | - |
| ShanghaiTransfusionTechnologyCo.,Ltd. | 31.19 | 50.30 |
| SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd. | 26.74 | - |
| SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd. | 21.90 | 100.00 |
| ShenyangHongqiPharmaceuticalCo.,Ltd. | 21.13 | 60.22 |
| SinopharmWuhanbloodproductsCo.,Ltd. | 19.64 | - |
| SinopharmHoldingChangshaCo.,Ltd. | 17.16 | - |
| SinopharmGroupRongshengPharmaceuticalCo.,Ltd. | 16.92 | 22.33 |
| BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd. | 14.04 | - |
| SinopharmHoldingFengliaoxing(Foshan)Traditional&HerbalMedicineCo.,Ltd. | 11.90 | 32.03 |
| FoshanDezhongPharmaceuticalCo.,Ltd. | 10.84 | - |
| SinopharmYixinPharmaceuticalCo.,Ltd. | 10.75 | 39.41 |
| SinopharmHoldingHeilongjiangCo.,Ltd. | 4.66 | 3.13 |
| SinopharmHoldingQuanzhouCo.,Ltd. | 4.51 | 17.09 |
| SinopharmLerentangHebeiMedicialInstrumentSupplyChainManagementCo.,Ltd | 0.82 | - |
| LanzhouInstituteofBiologicalProductsCo.,Ltd. | - | 623.62 |
| SinopharmHoldingShanxiInstrumentBranchCo.,Ltd. | - | 198.12 |
| ChinaOTSUKAPharmaceuticalCo.,Ltd. | - | 179.36 |
| SinopharmGroupCo.,Ltd. | - | 118.36 |
| SinopharmHoldingYangzhouCo.,Ltd. | - | 62.65 |
| SinopharmHoldingPutianCo.,Ltd. | - | 61.45 |
| SinopharmGroupGuizhouBloodProductsCo.,Ltd. | - | 53.60 |
| JiangsuLianhuanPharmaceuticalCo.,Ltd. | - | 52.21 |
| ShyndecPharma | - | 47.58 |
| ChongqingHaisimanPharmaceuticalCo.,Ltd. | - | 27.57 |
| JingfukangPharmaceuticalGroupCo.,Ltd. | - | 15.11 |
| WinteamPharmaceuticalGroupLtd. | - | 11.13 |
| FujianChengtianJinlingPharmaceuticalCo.,Ltd. | - | 10.06 |
| 67,269.18 | 56,888.84 |
XRelatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Otherpayables | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| ShanghaiDingqun | 1,000.00 | 1,000.00 |
| SinopharmGroupMedicineLogisticCo.,Ltd. | 575.57 | 227.83 |
| SinopharmChongqingPharmaceuticalandMedicalIndustryDesignInstitute | 517.32 | 594.30 |
| SinopharmGroupCo.,Ltd. | 449.76 | 370.64 |
| SinopharmHoldingYangzhouCo.,Ltd. | 372.57 | - |
| ZhangZhenfang | 311.50 | 231.00 |
| SinopharmHealthOnlineCo.,Ltd. | 300.83 | - |
| SinopharmGroupShanghaiCo.,Ltd. | 166.04 | 166.04 |
| ChinaNationalofTraditional&HerbalMedicineCo.,Ltd. | 130.00 | 130.00 |
| ShanghaiBeiyi | 35.79 | 56.62 |
| FoshanChanchengDistrictCentralHospital | 26.50 | - |
| SinopharmHoldingTianjinBinhaiPharmaceuticalCo.,Ltd. | 24.18 | 33.98 |
| SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited | 10.22 | 3.00 |
| SinopharmHoldingSubMarketingCenterCo.,Ltd. | 3.82 | 3.78 |
| ChinaNationalPharmaceuticalLogisticsCo.,Ltd. | 2.08 | 1.03 |
| SinopharmGroupMedicineLogisticCo.,Ltd.GuangzhouBranch | 2.00 | 1.87 |
| ShandongLuYaPharmaceuticalCo.,Ltd. | 1.00 | - |
| GuJinhua | 0.21 | - |
| SinopharmHolding(China)FinancingLeaseCo.,Ltd. | - | 442.50 |
| ShenyangPharmaceuticalCo.,Ltd. | - | 441.92 |
| PingdingshanPushengPharmaceuticalCo.,Ltd. | - | 124.64 |
| HeyuanMairuiTradingCo.,Ltd. | - | 67.24 |
| ShyndecPharma | - | 32.80 |
| LinyiMedicalGroupCo.,Ltd. | - | 5.14 |
| SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd. | - | 4.18 |
| 3,929.39 | 3,938.51 |
X.Relatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Contractliabilities | ||
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmHoldingNantongCo.,Ltd. | 32.00 | 14.32 |
| SinopharmHoldingYunnanCo.,Ltd. | 10.52 | 1.19 |
| SinopharmHoldingWenzhouCo.,Ltd. | 5.78 | - |
| SinopharmHoldingGuizhouCo.,Ltd. | 4.70 | - |
| SinopharmHoldingHubeiHongyuanCo.,Ltd. | 2.52 | - |
| SinopharmHoldingGansuCo.,Ltd. | 2.25 | - |
| SinopharmHoldingHulunBuirCo.,Ltd. | 2.12 | 2.12 |
| SinopharmHoldingQuanzhouCo.,Ltd. | 1.91 | 1.01 |
| SinopharmGroupGuangdongMedicineDeviceCo.,Ltd. | 1.04 | 0.16 |
| SinopharmHoldingHunanCo.,Ltd. | 0.83 | 8.78 |
| SinopharmGroupGuangxiMedicalEquipmentCo.,Ltd. | 0.54 | - |
| ChinaNationalPharmaceuticalForeignTradeCorporation | 0.12 | 0.15 |
| SinopharmHoldingChengduCo.,Ltd. | 0.09 | 0.09 |
| SinopharmHoldingChongqingCo.,Ltd. | 0.08 | 0.08 |
| SinopharmHoldingGuizhouMedicalEquimentCo.,Ltd. | 0.06 | - |
| SinopharmGuangdongMedicalExaminationCo.,Ltd. | 0.06 | - |
| SinopharmHoldingInnerMongoliaCo.,Ltd. | 0.01 | 2.30 |
| SinopharmSichuanPharmaceuticalCo.,Ltd. | - | 112.31 |
| SinopharmHealthOnlineCo.,Ltd. | - | 41.61 |
| SinopharmHoldingHunanWeianChainStoreCo.,Ltd. | - | 6.73 |
| SinopharmHoldingJiangxiCo.,Ltd. | - | 3.43 |
| SinopharmZhuhaiMedicalInstrumentCo.,Ltd. | - | 0.37 |
| SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd. | - | 0.01 |
| 64.63 | 194.66 |
XRelatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| Entrustedborrowings | ||
| SinopharmGroup(Note) | 3,163.90 | 3,163.90 |
| Short-termborrowings | ||
| SinopharmGroupFinanceCo.,Ltd. | 3,999.39 | 12,242.64 |
| Othernon-currentliabilities | ||
| SinopharmGroup | 3,506.17 | 3,506.17 |
| Long-termpayables | |||
| 2018 | |||
| Amount | Include:within1year | ||
| (RMB‘0,000) | (RMB‘0,000) | ||
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | 962.53 | 586.13 |
XRelatedpartyrelationshipsandtransactions(Continued)
8.Amountsduetorelatedparties(Continued)
| Leaseliabilities | ||
| 2019 | ||
| Amount | Include:within1year | |
| (RMB‘0,000) | (RMB‘0,000) | |
| BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd. | 4,166.45 | 859.66 |
| Pu'erSongmaoJiantangPharmaceuticalCo.,Ltd. | 1,724.74 | 131.26 |
| LerentangInvestmentGroupCo.,Ltd. | 1,242.27 | 607.73 |
| LinyiMedicalGroupCo.,Ltd. | 634.73 | 155.06 |
| GuangdongJiyuantangDevelopmentCo.,Ltd. | 493.39 | 184.80 |
| SinopharmHolding(China)FinanceLeasingCo.,Ltd. | 386.17 | 234.82 |
| SinopharmHoldingYangzhouCo.,Ltd. | 366.61 | 366.61 |
| TaishanXiangranhuiTradeCo.,Ltd. | 217.40 | 40.55 |
| GuJinhua | 195.64 | 28.29 |
| ShenyangPharmaceuticalCo.,Ltd. | 148.19 | 43.77 |
| SinopharmXinjiangPharmaceuticalCo.,Ltd. | 74.19 | 36.29 |
| SinopharmGroupCo.,Ltd. | 67.47 | 50.24 |
| SinopharmHoldingBeijingCo.,Ltd. | 63.37 | 50.28 |
| GuHaiqun | 60.51 | 17.71 |
| ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd. | 55.28 | 55.28 |
| ZhijunPingshan | 42.44 | 8.56 |
| BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd. | 35.70 | 35.70 |
| SinopharmHoldingRizhaoCo.,Ltd. | 29.51 | 19.58 |
| ChinaNationalMedicinesCo.,Ltd. | 28.11 | 28.11 |
| ShenzhenJiufengInvestmentCo.,Ltd. | 19.29 | 19.29 |
| 10,051.46 | 2,973.59 |
Otherpayablesareinterest-freeandunsecuredwithnofixedtermonrepayment,expectthatrelatedpartiesborrowings,long-termpayables,leaseliabilitieswithfixedtermsofrepaymentwithinterest,andnotespayabletorelatedpartieshavefixedtermsofrepayment.
9.Cashdepositwitharelatedparty
| 2019(RMB‘0,000) | 2018(RMB‘0,000) |
| SinopharmGroupFinanceCo.,Ltd. | 54.90 | 212.54 |
Inyears2019and2018,theinterestratesforthedepositrangedfrom0.35%to1.15%abovethebenchmarkinterestrate.
XICommitmentsandcontingencies
1.Commitments
| (1) | Capitalcommitments |
| Capitalexpenditurescontractedforatthebalancesheetdatebutnotrecognisedinthebalancesheetareanalysedasfollows: | ||
| 31December2019 | 31December2018 | |
| (RMB‘0,000) | (RMB‘0,000) | |
| Capitalcommitments | 42.16 | 42.16 |
| Investmentcommitments(Note) | 6,000.00 | 6,000.00 |
| 6,042.16 | 6,042.16 |
Note:AccordingtotheSinopharmHoldingdocument[SinopharmZongtou[2017]No.97],theCompanycansubscribefundsharesfromNingboMeishanbondedportareaQilingequityinvestmentcenterLPwithRMB200.00milliontoindirectlysubscribetotheindustryfund.Theinvestorscontributeyearbyyearinbatch.Thefundmanagerwillsendoutpaymentnotificationtoinvestorsaccordingtotheactualprogressoftheproject.30%ofpaymentwaspaidin2017,amountingtoRMB60.00million,and40%ofpaymentwaspaidin2018,amountingtoRMB80.00million.TheremainingpaymentamountisRMB60.00million.(2)
| (2) | Operatingleasecommitments |
Thefutureminimumleasepaymentsdueunderthesignedirrevocableoperatingleasecontractsaresummarizedasfollows:
31December2018
| 31December2018 |
| (RMB‘0,000) |
| Within1year | 43,365.94 | |
| 1to2years | 37,635.38 | |
| 2to3years | 31,071.82 | |
| Over3years | 37,142.17 |
149,215.31
2.Contingencies
Asofthebalancesheetdate,nocontingenciesoftheGroupwererequiredtodisclose.
XIIEventsafterthebalancesheetdate
1.PursuanttotheresolutionoftheGeneralMeetingoftheShareholderson20April2020,the
CompanypaidacashdividendofRMB6.00forevery10sharestoallshareholders,whichiscalculatedonthebasisof428,126,983sharesinissue,withanaggregateamountofRMB256,876,189.80.Thisresolutionhadyettobeapprovedbytheshareholders’meeting.
2.Sincethenovelcoronavirusepidemicbegan,theGroup,asacentral,provincialandmunicipal
drugreserveunit,hasbeenactivelyrespondingandstrictlyimplementingtheprovisionsandrequirementsofthepartiesandgovernmentatalllevelsforthepreventionandcontrolofthevirusepidemicandestablishedtheemergencyleadinggroupsandworkinggroups.TheGroupworkedcloselywiththelocalgovernmentandarrangedtheemergencyepidemicpreventionmaterialdispatchandstrengthenedthestorageandcontroloftheepidemicpreventiontoensurethequalityandsafetyofmaterials,demonstratinganimportantresponsibilityofacentralenterpriseinthesociety.Affectedbytheepidemicandrelevantpreventionmeasures,theoperationprogressofpharmaceuticaldistributionandretailstoresoftheGroupwillbeinfluencedtosomeextentinthefirstquarterof2020.TheGroupwillcontinuetopaycloseattentiontothetrendoftheepidemic,promotethebusinesstransformationofthecompany,acceleratethedevelopmentofnewbusinessformsandnewmodels,acceleratethelayoutofe-commerceandinnovationmodels,continuouslyimprovethemarketshareofthecompany,andstrivetotakemultiplemeasurestominimizetheimpactoftheepidemic.TheGroupbelievesthattherelevantbusinesswillgraduallyresumewiththenovelcoronavirusepidemicundercontrolbydegreesandsocialproductionandoperationreturningtonormal.
3.On16December2019,GuodaPharmacy,asubsidiaryoftheCompany,signedtheStock
TransferAgreementwithSinopharmGroup,whichwasapprovedbyshareholdersintheThirdExtraordinaryGeneralMeetingon13November2019.TheagreementstatesthatGuodaPharmacypurchased75%ofthestockofPudongNewAreaofShanghaiPharmaceuticalMedicineLtd.,awholly-ownedsubsidiaryofSinopharmGroup,withatotalpaymentnomorethanRMB163,115,049.98.PudongNewAreaofShanghaiPharmaceuticalMedicineLtd.completedindustrialandcommercialchangeregistrationproceduresandstockdeliveryon2January2020andpaidthestockpurchasepriceon14January2020.Thebusinesscombinationaboveconstitutesabusinesscombinationunderthesamecontrol.
4.On20December2019,theCompanysignedtheStockTransferAgreementwithNingbo
MeishanBondedPortAreaQilingEquityInvestmentCenterLPandGuodaPharmacy,asubsidiaryoftheCompany,whichwasapprovedbyshareholdersintheThirdExtraordinaryGeneralMeetingon13November2019.TheagreementstatesthatGuodaPharmacypurchased100%ofthestockofShanghaiDingqunand85%ofthestockofSinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.heldbyNingboMeishanBondedPortAreaQilingEquityInvestmentCenterLPandtheCompany,withatotalpaymentnomorethanRMB93,424,000.00.ShanghaiDingquncompletedindustrialandcommercialchangeregistrationproceduresandstockdeliveryon7January2020andpaidthestockpurchasepriceon21Janurary2020.
XIIIOthersignificantevents
1.Segmentreporting
OperatingsegmentsFormanagementpurposes,theGroupisorganizedintobusinessunitsbasedonitsproductsandservicesandhasthreereportableoperatingsegmentsasfollows:
a)TheHeadOffice,whichismainlyengagedintheinvestmentandmanagementofbusinesses;b)Pharmaceuticaldistributionsegment,whichismainlyengagedinthedistributionofmedicine
andpharmaceuticalproductstocustomers;c)Retailpharmacysegment,whichisthemanagementoftheoperationofGuodaPharmacy;ManagementmonitorstheresultsoftheGroup’soperatingsegmentsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonreportablesegmentprofit,whichismeasuredconsistentlywiththeGroup’sprofitbeforetax.Inter-segmentsalesandtransfersaretransactedwithreferencetothesellingpricesusedinthetransactionscarriedoutwiththirdpartiesatthethenprevailingmarketprices.
XIIIOthersignificantevents(Continued)
1.Segmentreporting(Continued)
Operatingsegments(Continued)2019:
| HeadOffice | Pharmaceuticaldistribution | RetailPharmacy | Eliminationbetweensegments | Total |
| Operatingrevenue | 9,665,928.48 | 40,013,926,107.78 | 12,753,608,498.70 | (731,436,391.75) | 52,045,764,143.21 |
| Including:Revenuefromexternalcustomers | 8,006,007.92 | 39,285,482,715.53 | 12,752,275,419.76 | - | 52,045,764,143.21 |
| Revenuefrominter-segmenttransactions | 1,659,920.56 | 728,443,392.25 | 1,333,078.94 | (731,436,391.75) | - |
| Interestincome | 108,928,333.91 | 39,346,397.17 | 87,140,329.14 | (95,572,571.11) | 139,842,489.11 |
| Interestexpense | (26,665,774.48) | (274,477,177.66) | (66,199,054.41) | 95,623,071.70 | (271,718,934.85) |
| Incomefrominvestmentsinassociates | 332,334,692.76 | (2,233,828.42) | 1,071,038.53 | - | 331,171,902.87 |
| Impairmentlosses | (1,857,279.52) | (332,209.46) | (1,583,819.14) | - | (3,108,889.20) |
| Creditimpairmentlosses | (45,382,201.36) | (5,137,165.27) | (2,644,123.98) | - | (53,163,490.61) |
| Depreciationandamortization | (1,519,764.30) | (143,163,527.20) | (754,918,698.62) | - | (899,601,990.12) |
| Grossprofit | 1,134,658,290.00 | 1,110,966,580.04 | 422,922,043.99 | (811,888,777.53) | 1,856,658,136.50 |
| Incometaxes | 3,069,276.24 | (264,494,788.78) | (111,013,928.83) | - | (372,439,441.37) |
| Netprofit | 1,137,727,566.24 | 846,471,791.26 | 311,908,115.16 | (811,888,777.53) | 1,484,218,695.13 |
| Totalassets | 12,874,025,306.77 | 20,332,642,113.61 | 11,173,757,597.94 | (10,859,815,894.65) | 33,520,609,123.67 |
| Totalliabilities | (2,822,975,182.11) | (14,417,324,193.49) | (6,180,747,837.66) | 5,260,275,929.82 | (18,160,771,283.44) |
| Long-termequityinvestmentsinassociates | 2,084,079,098.25 | 8,308,327.77 | 12,726,984.86 | - | 2,105,114,410.88 |
| Accrualofothernon-currentassetsexceptlong-termequityinvestments | 6,535,138.34 | 251,618,667.14 | 1,951,712,055.41 | (1,116,517.76) | 2,208,749,343.13 |
XIIIOthersignificantevents(Continued)
1.Segmentreporting(Continued)
Operatingsegments(Continued)2018:
| HeadOffice | Pharmaceuticaldistribution | RetailPharmacy | Eliminationbetweensegments | Total |
| Operatingrevenue | 9,273,843.07 | 32,757,389,882.07 | 10,878,025,717.94 | (522,303,921.85) | 43,122,385,521.23 |
| Including:Revenuefromexternalcustomers | 7,639,065.85 | 32,237,174,455.73 | 10,877,571,999.65 | - | 43,122,385,521.23 |
| Revenuefrominter-segmenttransactions | 1,634,777.22 | 520,215,426.34 | 453,718.29 | (522,303,921.85) | - |
| Interestincome | 86,156,915.62 | 36,903,104.11 | 42,112,312.72 | (84,052,825.82) | 81,119,506.63 |
| Interestexpense | (24,418,425.35) | (199,412,357.32) | (537,310.58) | 84,052,825.82 | (140,315,267.43) |
| Investmentincome | 319,909,375.15 | (1,700,728.31) | 1,695,243.63 | - | 319,903,890.47 |
| Impairmentlosses | - | (2,029,159.28) | (715,446.08) | - | (2,744,605.36) |
| Creditimpairmentlosses | 3,348.72 | 903,349.81 | (1,205,178.08) | - | (298,479.55) |
| Depreciationandamortization | (1,214,260.43) | (70,320,317.76) | (134,575,834.22) | - | (206,110,412.41) |
| Grossprofit | 693,877,930.80 | 935,088,852.44 | 410,585,068.82 | (360,622,494.53) | 1,678,929,357.53 |
| Incometaxes | (2,797,055.83) | (218,867,690.72) | (108,833,499.13) | - | (330,498,245.68) |
| Netprofit | 691,080,874.97 | 716,221,161.72 | 301,751,569.69 | (360,622,494.53) | 1,348,431,111.85 |
| Totalassets | 11,206,677,509.70 | 18,246,104,939.73 | 9,035,418,275.87 | (9,557,900,205.33) | 28,930,300,519.97 |
| Totalliabilities | (2,203,816,484.92) | (12,743,275,454.62) | (4,059,201,016.82) | 3,981,768,929.44 | (15,024,524,026.92) |
| Long-termequityinvestmentsinassociates | 1,861,606,283.58 | 6,802,156.19 | 11,985,346.33 | - | 1,880,393,786.10 |
| Accrualofothernon-currentassetsexceptlong-termequityinvestments | 78,652,882.95 | 34,828,145.45 | 68,564,604.37 | - | 182,045,632.77 |
XIIIOthersignificantevents(Continued)
2.Leases
(1)AslessorTheGrouphasenteredintooperatingleasesonsomeofitshousesandbuildings,andtheleasetermis1yearto10years.Allleasesincludeaclausetoenablerevisionoftherentalchargeonanannualbasisaccordingtoprevailingmarketconditions.In2019,therentalincomerecognisedbytheGrouponthosehousesandbuildingswasRMB74,792,548.69,fordetailsofwhich,pleaserefertoNoteV(42).DetailsoftheunderlyinghousesandbuildingsaredisclosedinNoteV(12)Investmentproperties.OperatingleasesTheprofitorlossrelatingtooperatingleasesisasfollows:
2019Leaseincome
| Leaseincome | 74,792,548.69 |
| Including:Incomerelatingtovariableleasepaymentsnotincludedintheleasereceivable | - |
Thefutureminimumleasereceivablesdueunderthesignedirrevocableoperatingleasecontractsaresummarizedasfollows:
2019Within1year,inclusive
| Within1year,inclusive | 45,076,135.68 | |
| 1to2years,inclusive | 26,381,198.72 | |
| 2to3years,inclusive | 18,340,448.75 | |
| 3to4years,inclusive | 15,209,886.01 | |
| 4to5years,inclusive | 11,051,502.87 | |
| Over5years | 32,191,270.04 |
XIIIOthersignificantevents(Continued)
2.Leases(Continued)
(2)Aslessee
2019Interestexpenseonleaseliabilities
| Interestexpenseonleaseliabilities | 74,483,788.01 |
| Expensesrelatingtoshort-termleasesaccountedforapplyingpracticalexpedients | 140,444,264.35 |
| Expensesrelatingtoleasesoflow-valueassetsaccountedforapplyingpracticalexpedients(otherthanshort-termleases) | 324,213.61 |
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities | 851,273.83 |
| Incomefromsubleasingright-of-useassets | 34,838,940.81 |
| Totalcashoutflowforleases | 861,946,336.21 |
TheGrouphasleasecontractsforvariousitemsofhousesandbuildings,machinery,vehiclesandotherequipmentusedinitsoperations.Leasesofhousesandbuildingsandmachinerygenerallyhaveleasetermsof1yearto6years,whilethoseofvehiclesandotherequipmentgenerallyhaveleasetermsof1yearto2years.Thereareseveralleasecontractsthatincludeextensionandterminationoptionsandvariableleasepayments.Referto“Potentialfuturecashoutflowsnotincludedinthemeasurementofleaseliabilities”fortheimpactofclausesrelatingtovariableleasepaymentsonfuturepotentialcashoutflows.ThepotentialfuturecashoutflowsthattheGroupdoesnotincludeinthemeasurementofleaseliabilitiesmainlyarisefromvariableleasepayments,extensionandterminationoptionsinleasecontracts,residualvalueguarantees,andriskexposuressuchasleasesthathavebeenpromisedbutnotyetcommenced.VariableleasepaymentsSomeofthepropertyleaseswithintheGroupcontainvariableleasepaymentclausesthatarelinkedtosalesgeneratedfromtheunderlyingstore.Theseclausesareused,whenpossible,inordertomatchleasepaymentswithstoresgeneratinghighercashflows.Leasepaymentsandclausesfor2019aresummarisedasfollows:
| Stores | Fixedpayments | Variablepayments | Totalpayments | |
| Fixedpaymentsonly | 4,612 | 743,508,117.38 | - | 743,508,117.38 |
| Variablepayments | 8 | 1,513,349.01 | 851,273.83 | 2,364,622.84 |
A20%increaseinsalesacrossallstoresintheGroupwouldbeexpectedtoincreasetotalleasepaymentsbyapproximately0.12%.
XIIIOthersignificantevents(Continued)
2.Leases(Continued)
(2)Aslessee(Continued)LeasesthathavebeenpromisedbutnotyetcommencedTheleasesthattheGrouphaspromisedbuthavenotyetcommencedareexpectedtohavefuturecashoutflowsasfollows:
2019Within1year,inclusive
| Within1year,inclusive | 29,127,042.16 |
| 1to2years,inclusive | 19,572,477.03 |
| 2to3years,inclusive | 12,051,712.29 |
| Over3years | 12,969,470.09 |
Financeleases(Onlyapplicableto2018)
Financeleases:At31December2018,thebalanceoftheunrecognisedfinancechargewas
RMB840,006.58,whichwasamortisedusingtheeffectiveinterestratemethodovereach
reportingperiodwithintheleaseterm.Accordingtotheleasesenteredintowiththelessors,the
minimumleasepaymentsundernon-cancellableleasesarepresentedasfollows:
73,720,701.57
2018
2018Within1year,inclusive
| Within1year,inclusive | 7,304,197.88 | |
| 1to2years,inclusive | 4,424,279.85 | |
| 2to3years,inclusive | 563,159.02 | |
| Over3years | - |
XIIIOthersignificantevents(Continued)
2.Leases(Continued)
(2)Aslessee(Continued)SignificantoperatingleasesThefutureminimumleasepaymentsdueunderthesignedirrevocableoperatingleasecontractsaresummarizedasfollows:
2018RMB‘0,000Within1year,inclusive
| Within1year,inclusive | 43,365.94 |
| 1to2years,inclusive | 37,635.38 |
| 2to3years,inclusive | 31,071.82 |
| Over3years | 37,142.17 |
Otherinformationrelatingtoleases
Forright-of-useassets,refertoNoteV(15);forpracticalexpedientsofshort-termleasesand
leasesoflow-valueassets,refertoNoteIII(29);andforleaseliabilities,refertoNoteV(32).
XIVNotestokeyitemsofthecompanyfinancialstatements
1.Notesreceivable
| 31December2019 | 31December2018 |
| Commercialacceptancebills | 14,900,068.42 | 34,154,774.75 |
Asat31December2019and31December2018,nonotesreceivablewerepledged.Asat31December2019and31December2018,nonotesreceivableendorsedordiscountedbytheGrouptootherpartieswerenotyetdueatthebalancesheetdate.
Asat31December2019and31December2018,nonotesreceivableendorsedordiscountedbytheGrouptootherpartieswerenotyetdueatthebalancesheetdate.Asat31December2019and31December2018,nonotesreceivablewereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydate.
2.Accountsreceivable
Asat31December2019and31December2018,nonotesreceivablewereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydate.Thecreditperiodforaccountsreceivablenormallyrangesfrom0to90days.Accountsreceivableareinterest-free.
Thecreditperiodforaccountsreceivablenormallyrangesfrom0to90days.Accountsreceivableareinterest-free.Theagingofaccountsreceivableandtherelatedprovisionforbaddebtsareanalysedbelow:
Theagingofaccountsreceivableandtherelatedprovisionforbaddebtsareanalysedbelow:
31December2019
| 31December2019 | 31December2018 |
| Within1year | 571,867,829.15 | 631,236,593.94 |
| 1to2years | 11,250.20 | - |
| Less:Provisionforbaddebts | 334,294.70 | - |
| 571,544,784.65 | 631,236,593.94 |
Changesinprovisionforbaddebtsarepresentedasfollows:
Openingbalance
| Openingbalance | Increasesintheyear | Writtenoffintheyear | Closingbalance |
| 2019 | - | 334,294.70 | - | 334,294.70 |
| 2018 | 117,320.70 | - | (117,320.70) | - |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Accountsreceivable(Continued)
Thecarryingamountofaccountsreceivablethataffectedthechangesinprovisionthisyearisasfollows:
31December2019
| 31December2019 | ||||
| Carryingamount | Baddebtprovisions | |||
| Amount | Proportion | Amount | Proportion | |
| Itemsforwhichprovisionforbaddebtsisrecognisedseparately | 10,352,439.53 | 1.81% | (334,294.70) | 3.23% | ||
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 561,526,639.82 | 98.19% | - | 0.00% |
| 571,879,079.35 | 100.00% | (334,294.70) | 0.06% |
| 31December2018 | ||||
| Carryingamount | Baddebtprovisions | |||
| Amount | Proportion | Amount | Proportion | |
| Itemsforwhichprovisionforbaddebtsisrecognisedseparately | 17,846,941.30 | 2.83% | - | 0.00% | ||
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 613,389,652.64 | 97.17% | - | 0.00% |
| 631,236,593.94 | 100.00% | - | 0.00% |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Accountsreceivable(Continued)
At31December2019,accountsreceivablethatareindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | ExpectedCreditLossRate | Assessmentforimpairment |
| ReceivablesfromsubsidiariesoftheGroup | 10,018,144.83 | - | 0.00% | Internalrelatedparties,withlower-tierrecoveryrisk. | |
| ClientA | 323,044.50 | (323,044.50) | 100.00% | Debtorhadmismanagement,subjecttoseriousfinancialdifficulties,andtheexpectedrecoverabilityisverylow. | |
| ClientB | 11,250.20 | (112,50.20) | 100.00% | Debtorhadmismanagement,subjecttoseriousfinancialdifficulties,andtheexpectedrecoverabilityisverylow. |
| 10,352,439.53 | (334,294.70) |
At31December2018,accountsreceivablethatareindividuallyassessedforprovisionsarepresentedasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | Expectedcreditlossrate | Assessmentforimpairment |
| ReceivablesfromsubsidiariesoftheGroup | 17,846,941.30 | - | 0.00% | Internalrelatedparties,withlower-tierrecoveryrisk. |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
2.Accountsreceivable(Continued)
TheaccountsreceivableforwhichtheCompanyrecognisedprovisionforbaddebtsusingtheaginganalysismethodarepresentedasfollows:
31December2019
| 31December2019 | 31December2018 | |||||
| Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | |
| Within1year | 561,526,639.82 | 0.00% | - | 613,389,652.64 | 0.00% | - |
Thebaddebtprovisionamountforaccountsreceivablein2019wasRMB334,294.70(2018:nil),withtherecoveredorreversedamountofnil(2018:nil).Thewrite-offamountofaccountsreceivablein2019wasnil(2018:RMB117,320.70).
Theactualaccountsreceivablewrittenoffin2018areanalysedasfollows:
Nature
| Nature | Amount | Reason | Fulfiledwrite-offprocedures | Occuredbytransactionsbetweenrelatedparties |
| ClientA | Paymentforgoods | 116,855.40 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
| ClientB | Paymentforgoods | 465.30 | Non-recoverable | Thewrite-offprocedureshavebeenfulfilledinaccordancewiththeinternalrulesandregulations. | No |
In2019,theCompanyfactoredaportionofaccountsreceivableatamortisedcosttofinancialinstitutions.TheamountofaccountsreceivablederecognisedisRMB463,579,520.41(2018:RMB145,129,500.06),andtheamountoflossrecognisedthroughinvestmentincomeisRMB4,379,465.57(2018:RMB1,688,557.15).
117,320.70Asat31December2019,thetopfiveaccountsreceivablebycustomerareasfollows:
Asat31December2019,thetopfiveaccountsreceivablebycustomerareasfollows:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Top1Accountreceivable | 27,056,423.78 | - | 4.73% | |
| Top2Accountreceivable | 21,481,852.34 | - | 3.76% | |
| Top3Accountreceivable | 20,318,623.30 | - | 3.55% | |
| Top4Accountreceivable | 18,059,973.06 | - | 3.16% | |
| Top5Accountreceivable | 16,434,645.35 | - | 2.87% |
| 103,351,517.83 | - | 18.07% |
Asat31December2018,thetopfiveaccountsreceivablebycustomerareasfollows:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
| Top1Accountreceivable | 56,790,226.23 | - | 9.00% | |
| Top2Accountreceivable | 49,842,887.24 | - | 7.90% | |
| Top3Accountreceivable | 48,119,276.57 | - | 7.62% | |
| Top4Accountreceivable | 39,009,115.37 | - | 6.18% | |
| Top5Accountreceivable | 25,049,643.33 | - | 3.97% |
| 218,811,148.74 | - | 34.67% |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
3.Receivablesfinancing
| 31December2019 | 31December2018 |
| Bankacceptancebills | 30,194,682.11 | 29,716,205.64 |
Asat31December2019and31December2018,noreceivablesfinancingwerepledged.RceivablesfinancingendorsedordiscountedbytheCompanytootherpartieswhichwerenotyetdueat31December2019and31December2018isasfollows:
RceivablesfinancingendorsedordiscountedbytheCompanytootherpartieswhichwerenotyetdueat31December2019and31December2018isasfollows:
31December2019
| 31December2019 | 31December2018 | |||
| Derecognised | Notderecognised | Derecognised | Notderecognised | |
| Bankacceptancebills | 47,476,793.43 | - | 47,235,156.38 | - |
4.Otherreceivables
Dividendreceivable
Asat31December2019and31December2018,noreceivablesfinancingwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydate.
31December2019
| 31December2019 | 31December2018 |
| ShanghaiDingqun | 834,914.61 | - |
| 31December2019 | 31December2018 |
| Dividendreceivable | 834,914.61 | - | |
| Otherreceivables | 1,928,106,680.77 | 1,538,283,800.17 |
| 1,928,941,595.38 | 1,538,283,800.17 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
4.Otherreceivables(Continued)
OtherreceivablesTheagingofotherreceivablesisanalysedbelow:
Theagingofotherreceivablesisanalysedbelow:
31December2019
| 31December2019 | 31December2018 |
| Within1year | 1,927,753,257.85 | 1,530,024,652.29 | |
| 1to2years | 44,499,674.36 | 8,167,507.65 | |
| 2to3years | 1,177,951.87 | 67,906.60 | |
| Over3years | 9,080,643.69 | 9,034,035.21 |
| Less:Provisionforbaddebts | 54,404,847.00 | 9,010,301.58 |
| 1,928,106,680.77 | 1,538,283,800.17 |
Theotherreceivablesbycategoryarelistedbelow:
31December2019
| 31December2019 | 31December2018 |
| Amountsduefromsubsidiaries | 1,913,299,778.33 | 1,469,192,387.91 | |
| Receivableofequitytransactions | 8,980,000.00 | 8,980,000.00 | |
| Deposit | 840,318.90 | 1,449,978.94 | |
| Others | 59,391,430.54 | 67,671,734.90 |
| Less:Provisionforbaddebts | 54,404,847.00 | 9,010,301.58 |
| 1,928,106,680.77 | 1,538,283,800.17 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
4.Otherreceivables(Continued)
Changesinbaddebtprovisionforthe12-monthexpectedcreditlossesandlifetimeexpectedcreditlossesonotherreceivablesareasfollows:
Stage112-monthexpectedcreditlosses
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
| Balanceat1January2019 | - | 30,301.58 | 8,980,000.00 | 9,010,301.58 |
| Balanceat1January2019duringtheperiod | - | - | - | - |
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionsduringtheperiod | - | 35,375.27 | 45,360,333.35 | 45,395,708.62 |
| Reversalduringtheperiod | - | (1,163.20) | - | (1,163.20) |
| Write-backduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | - | - | - |
| Other | - | - | - | - |
| Balanceat31December2019 | - | 64,513.65 | 54,340,333.35 | 54,404,847.00 |
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
| Balanceat1January2018 | - | 20,286.35 | 9,973,703.95 | 9,993,990.30 |
| Balanceat1January2018duringtheperiod | - | - | - | - |
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionsduringtheperiod | - | 14,505.33 | 14,505.33 | |
| Reversalduringtheperiod | - | (4,490.10) | (993,703.95) | (998,194.05) |
| Write-backduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | - | - | - |
| Other | - | - | - | - |
| Balanceat31December2018 | - | 30,301.58 | 8,980,000.00 | 9,010,301.58 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
4.Otherreceivables(Continued)
Thebaddebtprovisionamountforotherreceivablesin2019wasRMB45,395,708.62(2018:RMB14,505.33),withtherecoveredorreversedamountofRMB1,163.20(2018:RMB998,194.05).Thewrite-offamountofotherreceivablesin2019wasnil(2018:nil).
Asat31December2019,theaccumulatedtopfiveotherreceivablesareanalysedbelow:
Nature
| Nature | Amount | Aging | %ofthetotalotherreceivable | Baddebtprovision |
| SinopharmGuangzhou | Entrustedloans | 450,000,000.00 | Within1year | 22.70% | - |
| SinopharmGuangxi | Entrustedloans | 356,000,000.00 | Within1year | 17.96% | - |
| SinopharmDongguan | Entrustedloans | 161,000,000.00 | Within1year | 8.12% | - |
| SinopharmZhangjiang | Entrustedloans | 117,000,000.00 | Within1year | 5.90% | - |
| SinopharmMeizhou | Entrustedloans | 76,700,000.00 | Within1year | 3.87% | - |
| 1,160,700,000.00 | 58.55% | - |
Asat31December2018,theaccumulatedtopfiveotherreceivablesareanalysedbelow:
Nature
| Nature | Amount | Aging | %ofthetotalotherreceivables | Baddebtprovision |
| SinopharmGuangxi | Entrustedloans | 201,000,000.00 | Within1year | 12.99% | - |
| SinopharmYuexing | Entrustedloans | 190,700,000.00 | Within1year | 12.32% | - |
| SinopharmDongguan | Entrustedloans | 131,000,000.00 | Within1year | 8.47% | - |
| SinopharmZhangjiang | Entrustedloans | 124,000,000.00 | Within1year | 8.01% | - |
| SinopharmMeizhou | Entrustedloans | 76,700,000.00 | Within1year | 4.96% | - |
| 723,400,000,00 | 46.75% | - |
5.Long-termequityinvestments
| 31December2019 | 31December2018 |
| Investmentsinsubsidiaries(a) | 5,614,677,427.58 | 5,594,679,427.58 | |
| Investmentsinassociates(b) | 2,124,009,098.25 | 1,878,157,264.66 |
| 7,738,686,525.83 | 7,472,836,692.24 |
| Less:Provisionforimpairmentoflong-termequityinvestments | 39,930,000.00 | 39,930,000.00 |
| 7,698,756,525.83 | 7,432,906,692.24 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
5.Long-termequityinvestments(Continued)
| (a) | Subsidiaries |
| Originalinvestmentcost | 1January2019 | Increases/(decrease)ininvestmentcost | 31December2019 | Equityinterestheld(%) | Votingrightsheld(%) |
| SinopharmJianming | 45,054,911.04 | 60,054,911.04 | - | 60,054,911.04 | 100.00 | 100.00 | ||||
| SinopharmShenzhenMaterial | 5,400,000.00 | 15,450,875.93 | - | 15,450,875.93 | 100.00 | 100.00 | ||||
| ShenzhenLogistics | 900,000.00 | 5,019,062.68 | - | 5,019,062.68 | 100.00 | 100.00 | ||||
| SinopharmGuangzhou | 58,283,114.68 | 3,588,689,716.80 | - | 3,588,689,716.80 | 100.00 | 100.00 | ||||
| SinopharmGuangxi | 33,048,985.28 | 525,456,951.07 | - | 525,456,951.07 | 100.00 | 100.00 | ||||
| SinopharmYanfeng | 38,207,800.00 | 38,207,800.00 | - | 38,207,800.00 | 51.00 | 51.00 | ||||
| GuodaPharmacy | 1,361,800,110.06 | 1,361,800,110.06 | - | 1,361,800,110.06 | 60.00 | 60.00 | ||||
| SinopharmAccordMedicialSupplyChain(Shenzhen)Co.,Ltd. | 19,998,000.00 | - | 19,998,000.00 | 19,998,000.00 | 60.00 | 60.00 |
| 5,594,679,427.58 | 19,998,000.00 | 5,614,677,427.58 |
| (b) | Associates |
| Changesintheyear | |||||||
| Atbeginningoftheyear(Carryingamount) | Investment | Profitorlossundertheequitymethod | Othercomprehensiveincome | Otherchangesinequity | Cashdividendorprofitsdeclared | Atendoftheyear(Bookvalue) | Amountofprovisionforimpairment |
| MainLuckPharmaceutical | 265,316,653.68 | - | 87,216,213.59 | - | - | (58,063,500.00) | 294,469,367.27 | - | |
| ZhijunSuzhou | 39,930,000.00 | - | - | - | - | - | - | 39,930,000.00 | |
| ZhijunMedicine | 355,353,196.15 | - | 106,436,143.29 | - | - | (61,210,764.76) | 400,578,574.68 | - | |
| ZhijunTrade | 8,730,994.87 | - | 2,318,103.99 | - | - | (773,841.25) | 10,275,257.61 | - | |
| ZhijunPingshan | 86,292,927.33 | - | 46,881,613.08 | - | - | (12,296,521.67) | 120,878,018.74 | - | |
| ShyndecPharma | 1,098,566,852.51 | - | 111,498,302.56 | (133,366.19) | 42,022,530.06 | (16,714,220.15) | 1,235,240,098.79 | - | |
| ShanghaiDingqun | 23,966,640.12 | - | (493,944.35) | - | - | (834,914.61) | 22,637,781.16 | - | |
| - | |||||||||
| 1,878,157,264.66 | - | 353,856,432.16 | (133,366.19) | 42,022,530.06 | (149,893,762.44) | 2,084,079,098.25 | 39,930,000.00 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
6.Operatingrevenueandcost
| 2019 | 2018 | |||
| Revenue | Cost | Revenue | Cost | |
| Principaloperations | 4,084,112,471.45 | 3,901,326,725.78 | 3,462,663,349.53 | 3,306,117,780.86 | |
| Otheroperations | 24,286,547.89 | 14,708,846.74 | 18,783,527.40 | 11,450,860.13 |
| 4,108,399,019.34 | 3,916,035,572.52 | 3,481,446,876.93 | 3,317,568,640.99 |
Revenueisasfollows:
2019
| 2019 | 2018 |
| Revenuefromcontractswithcustomers | 4,098,679,263.40 | 3,472,580,407.28 | |
| Rentals | 9,719,755.94 | 8,866,469.65 |
| 4,108,399,019.34 | 3,481,446,876.93 |
Disaggregationofrevenuefromcontractswithcustomersisasfollows:
2019
| 2019 | 2018 |
| Placeofbusiness | |||
| China | 4,098,679,263.40 | 3,472,580,407.28 |
| Typeofmajoractivities | |||
| Pharmaceuticaldistribution | 4,084,112,471.45 | 3,462,663,349.53 | |
| Others | 14,566,791.95 | 9,917,057.75 |
| 4,098,679,263.40 | 3,472,580,407.28 |
| Typeofmajorgoods | |||
| Pharmaceuticals | 3,936,812,220.01 | 3,368,695,671.79 | |
| Medicaldevicesanddisposables | 129,344,291.79 | 74,841,882.41 | |
| Diagnosticreagents | 17,704,322.48 | 11,294,169.92 | |
| Medicalequipments | 251,637.17 | 7,831,625.41 | |
| Others | 14,566,791.95 | 9,917,057.75 |
| 4,098,679,263.40 | 3,472,580,407.28 |
| Timingofrevenuerecognition | |||
| Atapointintime | |||
| Saleofgoods | 4,084,112,471.45 | 3,462,663,349.53 | |
| Overtime | |||
| Providingservices | 14,566,791.95 | 9,917,057.75 |
| 4,098,679,263.40 | 3,472,580,407.28 |
XIVNotestokeyitemsofthecompanyfinancialstatements(Continued)
6.Operatingrevenueandcost(Continued)
Revenuerecognisedthatwasincludedincontractliabilitiesatthebeginningoftheyearisasfollows:
2019
| 2019 | 2018 |
| Saleofgoods | 4,182,083.40 | 1,912,503.90 |
TheCompanyhasrecognisedcontractliabilitiesintotalofRMB7,293,184.46throughthesaleofgoodsandprovisionofservicesinthecurrentyear.TheexpectedrevenuerecognitiontimefortheCompany’scontractobligationsaboveisinyear2020.InformationabouttheCompany’sperformanceobligationsissummarisedbelow:
InformationabouttheCompany’sperformanceobligationsissummarisedbelow:
(1)
| (1) | Revenueisrecognisedwhencontrolofthegoodshastransferredandpaymentisgenerallyduewithin30to210daysfromdelivery; |
| (2) | Revenueisrecognisedintheservicedurationandthepaymentisgenerallyduewithin30to210dayssincetheserviceiscompleted. |
7.Investmentincome
| 2019 | 2018 |
| Gainonlong-termequityinvestmentsunderthecostmethod | 809,260,600.24 | 361,514,454.31 | |
| Gainonlong-termequityinvestmentsundertheequitymethod | 353,856,432.16 | 342,730,085.14 | |
| Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (4,379,465.57) | (1,688,557.15) |
| 1,158,737,566.83 | 702,555,982.30 |
Supplementaryinformationtofinancialstatements
1.Scheduleofnon-recurringprofitorloss
Amountfor2019Gainsandlossesondisposalofnon-currentassets,includingwrite-offofanaccruedassetimpairment
| Gainsandlossesondisposalofnon-currentassets,includingwrite-offofanaccruedassetimpairment | 2,340,925.97 | |
| Governmentgrantsrecognisedintheincomestatementforthecurrentyear,exceptforthosecloselyrelatedtotheordinaryoperationoftheCompanywhichtheGroupenjoyedconstantlyaccordingtotheallotmentstandardsorquantitativecriteriaofthecountry | 49,299,242.48 | |
| Theinvestmentcostofanenterprisetoacquireasubsidiary,anassociateandajointventure,whichislessthanprofitsderivedfromthefairvalueoftheidentifiablenetassetsoftheinvestedunitwheninvesting | 14.65 | |
| Reversalofbaddebtprovisionforaccountsreceivablethatweretestedforimpairmentindividually | 1,310,345.38 | |
| Profitorlossfromoutwardentrustedloans | 3,460,037.16 | |
| Non-operatingincomeandexpensesotherthantheaforesaiditems | 17,179,002.78 | |
| Other | 508,168.93 |
74,097,737.35Impactonincometax
| Impactonincometax | (17,317,723.70) | |
| Impactonnon-controllinginterestsaftertax | (12,256,102.61) |
Basisforpreparationofthedetailedlistofnon-recurringprofitorlossitems:
UndertherequirementsinExplanatoryannouncementNo.1oninformationdisclosurebycompaniesofferingsecuritiestothepublic–non-recurringprofitorloss(2008)(“ExplanatoryannouncementNo.1”)fromtheCSRC,non-recurringprofitorlossreferstothosearisingfromtransactionsandeventsthatarenotdirectlyrelevanttoordinarybusiness,orthatarerelevanttoordinarybusiness,butaresoextraordinarythatwouldhaveaninfluenceonusersoffinancialstatementsinmakingproperjudgementsontheperformanceandprofitabilityofanenterprise.
Supplementaryinformationtofinancialstatements(Continued)
2.Returnonequity(“ROE”)andearningspershare(“EPS”)
| 2019 | WeightedaverageROE(%) | BasicEPS(RMB) |
| (Note1) |
| Netprofitattributabletotheordinaryshareholdersoftheparent | 10.43 | 2.97 |
| Netprofitafterdeductingnon-recurringprofitorlossattributabletotheCompany’sordinaryshareholdersoftheparent | 10.06 | 2.87 |
| 2018 | WeightedaverageROE(%) | BasicEPS(RMB) |
| (Note1) |
| Netprofitattributabletotheordinaryshareholdersoftheparent | 11.56 | 2.83 |
| Netprofitafterdeductingnon-recurringprofitorlossattributabletotheordinaryshareholdersoftheparent | 11.22 | 2.75 |
Theabove-mentionedreturnonnetassetsandearningspersharewerecalculatedaccordingtotheInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingofSecuritiesNo.9–CalculationandDisclosureofReturnonNetAssetsandEarningsPerShare(revision2010)issuedbytheCSRC.Note1:Therewerenopotentialdilutiveordinarysharesfortheyearended31December2019(2018:
Nil),andhence,nopresentationofdilutedEPSwereprovided.
SectionXIII.DocumentsAvailableforReference
1.AccountingStatementscarriedwiththesignatureandsealsoflegalrepresentative,chieffinancialofficerandpersoninchargeofaccounting;
2.OriginalauditingreportwithsealoftheCPAandsignature&sealoftheregistrationaccountant;
3.OriginaltextofalldocumentsoftheCompanyaswellasmanuscriptoftheannouncementdisclosedinreportingperiodonSecuritiesTimes,ChinaSecuritiesJournalandHongKongCommercialDailyappointedbytheCSRC;
4.OriginaltextoftheannualreportwithsignatureoftheChairman;
5.ThePlaceWherethedocumentplaced:OfficeofSecretariatoftheBoardofDirectors,SinopharmAccordBldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen
ChinaNationalAccordMedicinesCorporationLtd
Legalrepresentative:LinZhaoxiong
22April2020