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一致B:2021年半年度财务报告(英文版) 下载公告
公告日期:2021-08-17

Section IX Financial ReportingReport of the AuditorsConsolidated financial statements for the six months ended 30 June 2021 haven’tbeen audited.

CONSOLIDATED BALANCE SHEET

As at 30 June 2021

(Expressed in Renminbi Yuan)

ASSETSNote V30 June 202131 December 2020
Current assets
Cash and bank balances15,876,638,427.565,998,204,295.87
Notes receivable2606,070,192.39622,115,477.04
Accounts receivable317,761,176,449.2513,799,971,014.22
Receivable financing4345,906,887.551,404,987,700.38
Advances to suppliers5615,602,916.31480,313,574.71
Other receivables6662,274,841.26535,228,747.69
Incl: Dividend receivable--
Inventories77,219,658,618.626,285,010,674.46
Contract Assets817,066,105.5315,177,731.64
Other current assets9101,585,930.05121,082,863.45
Total current assets33,205,980,368.5229,262,092,079.46
Non-current assets
Long-term equity investments102,427,605,792.212,287,019,627.99
Other equity instrument investment1199,488,340.2899,488,340.28
Other non-current financial assets12117,974,908.51120,972,350.24
Investment properties13123,389,130.71127,444,379.94
Fixed assets14840,386,519.64854,191,083.27
Construction in progress1564,636,735.9346,631,190.23
Right-of-use assets162,523,874,174.712,356,952,392.99
Intangible assets17751,492,524.18734,345,179.40
Goodwill182,932,001,316.632,747,375,281.11
Long-term prepaid expenses19523,192,988.98457,705,276.09
Deferred tax assets2096,595,749.3392,118,767.81
Other non-current assets21484,259,854.32408,197,522.84
Total non-current assets10,984,898,035.4310,332,441,392.19
Total assets44,190,878,403.9539,594,533,471.65

The accompanying notes form an integral part of these financial statements

CONSOLIDATED BALANCE SHEET (Continued)

As at 30 June 2021

(Expressed in Renminbi Yuan)

LIABILITIES AND EQUITYNote V30 June 202131 December 2020
Current liabilities
Short-term borrowings224,632,933,904.391,612,187,020.12
Notes payable236,780,425,089.177,520,165,274.69
Accounts payable249,642,504,836.507,697,451,142.50
Receipts in advance2514,868,097.9712,352,466.64
Contract liabilities26316,827,151.78368,600,357.14
Employee benefits payable27242,205,983.09357,212,047.10
Tax payable28298,201,588.13316,867,149.16
Other payables291,531,899,017.871,599,166,881.14
Non-current liabilities due within one year30798,170,618.10748,732,059.89
Other current liabilities3122,432,447.9724,787,078.55
Total current liabilities24,280,468,734.9720,257,521,476.93
Non-current liabilities
Long-term borrowings3261,633,794.4431,637,173.89
Lease liabilities331,361,131,352.801,303,054,163.90
Long-term payables346,938,189.006,938,189.00
Long-term employee benefits payable351,262,000.001,319,000.00
Provisions3668,663,166.7968,808,166.79
Deferred income3791,315,333.8989,843,583.37
Deferred tax liabilities20200,498,143.67205,921,408.66
Other non-current liabilities38630,839,755.01740,862,989.59
Total non-current liabilities2,422,281,735.602,448,384,675.20
Total liabilities26,702,750,470.5722,705,906,152.13

The accompanying notes form an integral part of these financial statements

CONSOLIDATED BALANCE SHEET (Continued)

As at 30 June 2021

(Expressed in Renminbi Yuan)

LIABILITIES AND EQUITYNote V30 June 202131 December 2020
Equity
Share capital39428,126,983.00428,126,983.00
Capital surplus404,372,043,185.434,372,504,053.72
Other comprehensive income4138,547,872.6238,483,017.72
Surplus reserve42214,063,491.50214,063,491.50
Retained earnings439,294,088,533.248,895,145,106.39
Total equity attributable to owners of the parent14,346,870,065.7913,948,322,652.33
Non-controlling interests3,141,257,867.592,940,304,667.19
Total equity17,488,127,933.3816,888,627,319.52
Total liabilities and equity44,190,878,403.9539,594,533,471.65

The accompanying notes form an integral part of these financial statements

The financial statements have been signed by:

Legal representative: Financial controller: Head of Accounting Department:

CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note VFor the six months ended 30 June 2021For the six months ended 30 June 2020
Operating revenue4433,163,091,887.3927,169,940,188.52
Less: Operating costs4429,216,837,201.0723,971,029,719.44
Taxes and surcharges4575,989,854.5869,505,309.32
Selling expenses462,307,485,529.771,728,738,818.60
Administrative expenses47492,536,936.71443,287,144.92
Finance costs48107,243,003.1565,313,829.62
Incling: Interest expense147,057,897.99133,350,510.68
Interest income38,758,729.7865,512,550.22
Add: Interest expense4947,249,616.2635,855,298.32
Investment income50156,587,066.32105,206,349.26
Incling: Investment income from associates157,696,397.81133,604,904.16
Income from the derecognition of financial assets measured at amortised cost(7,039,046.60)(33,507,102.64)
Credit impairment losses51(28,664,985.44)(21,580,231.52)
Impairment losses52(416,915.26)(1,743,888.30)
Gain on disposal of assets53(588,799.55)4,305,324.80
Operating profits1,137,165,344.441,014,108,219.18
Add: Non-operating income5412,493,320.445,219,980.22
Less: Non-operating expenses553,237,951.353,008,892.52
Total profit1,146,420,713.531,016,319,306.88
Less: Income tax expenses56238,426,259.04210,106,764.35
Net profit907,994,454.49806,212,542.53
Net Profit from continuing operations907,994,454.49806,212,542.53
Net profit attributable to owners of the parent741,445,013.25643,451,580.59
Profit or loss of non-controlling interests166,549,441.24162,760,961.94

CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note VFor the six months ended 30 June 2021For the six months ended 30 June 2020
Other comprehensive income, net of tax64,854.90122,186.89
Other comprehensive income, net of tax, attributable to owners of the parent64,854.90122,186.89
Other comprehensive income that will be reclassified to profit or loss64,854.90122,186.89
Other comprehensive income using the equity method that will be reclassified to profit or loss64,854.90122,186.89
Total comprehensive income908,059,309.39806,334,729,42
Incl: Total comprehensive income attributable to owners of the parent741,509,868.15643,573,767.48
Total comprehensive income attributable to non-controlling interests166,549,441.24162,760,961.94
Earnings per share
Basic earnings per share1.731.50
Diluted earnings per share1.731.50

The accompanying notes form an integral part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2021Attributable to owners of the parent
Share capitalCapital surplusOther comprehensive incomeSurplus reservesRetained earningsSubtotalNon-controlling interestsTotal equity
I. Balance at end of prior year428,126,983.004,372,504,053.7238,483,017.72214,063,491.508,895,145,106.3913,948,322,652.332,940,304,667.1916,888,627,319.52
Add: Business combination involving entities under common control---
II. Balance at beginning of year428,126,983.004,372,504,053.7238,483,017.72214,063,491.508,895,145,106.3913,948,322,652.332,940,304,667.1916,888,627,319.52
III. Changes for the year-(460,868.29)64,854.90-398,943,426.85398,547,413.46200,953,200.40599,500,613.86
(1) Total comprehensive income--64,854.90-741,445,013.25741,509,868.15166,549,441.24908,059,309.39
(2) Owners’ contributions and reduction in capital-(460,868.29)--(460,868.29)58,773,146.3858,312,278.09
1. Capital contributions by owners------15,680,000.0015,680,000.00
2. Others-(460,868.29)--(460,868.29)43,093,146.3842,632,278.09
(3) Profit distribution---(342,501,586.40)-(342,501,586.40)(24,369,387.22)(366,870,973.62)
1.Distribution to equity owners---(342,501,586.40)-(342,501,586.40)(24,369,387.22)(366,870,973.62)
IV. Balance at end of year428,126,983.004,372,043,185.4338,547,872.62214,063,491.509,294,088,533.2414,346,870,065.793,141,257,867.5917,488,127,933.38

The accompanying notes form an integral part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2020Attributable to owners of the parent
Share capitalCapital surplusOther comprehensive incomeSurplus reservesRetained earningsSubtotalNon-controlling interestsTotal equity
I. Balance at end of prior year428,126,983.004,363,007,511.5745,917,342.77214,063,491.507,755,295,537.0812,806,410,865.922,553,426,974.3115,359,837,840.23
Add: Business combination involving entities under common control-107,759,447.87--(3,029,877.91)104,729,569.96109,412,866.52214,142,436.48
II. Balance at beginning of year428,126,983.004,470,766,959.4445,917,342.77214,063,491.507,752,265,659.1712,911,140,435.882,662,839,840.8315,573,980,276.71
III. Changes for the year-(97,854,894.55)122,186.89-386,575,390.79288,842,683.13154,985,375.48443,828,058.61
(1) Total comprehensive income--122,186.89-643,451,580.59643,573,767.48162,760,961.94806,334,729.42
(2) Owners’ contributions and reduction in capital-(97,854,894.55)--(97,854,894.55)10,931,276.73(86,923,617.82)
1. Capital contributions by owners------
2. Others-(97,854,894.55)--(97,854,894.55)10,931,276.73-(86,923,617.82)
(3) Profit distribution----(256,876,189.80)(256,876,189.80)(18,706,863.19)(275,583,052.99)
1.Distribution to equity owners----(256,876,189.80)(256,876,189.80)(18,706,863.19)(275,583,052.99)
IV. Balance at end of year428,126,983.004,372,912,064.8946,039,529.66214,063,491.508,138,841,049.9613,199,983,119.012,817,825,216.3116,017,808,335.32

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note VFor the six months ended 30 June 2021For the six months ended 30 June 2020
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the rendering of services32,800,434,055.1227,735,103,033.02
Receipts of taxes and surcharges refunds9,380,253.278,145,306.66
Other cash receipts relating to operating activities57368,590,875.46707,202,110.00
Total cash inflows from operating activities33,178,405,183.8528,450,450,449.68
Cash payments for goods and services28,541,885,459.3524,305,374,637.56
Cash payments to and on behalf of employees1,708,255,657.441,278,474,969.40
Payments of all types of taxes and surcharges766,110,586.13724,722,540.88
Other cash payments relating to operating activities57932,780,197.36703,674,258.49
Total cash outflows from operating activities31,949,031,900.2827,012,246,406.33
Net cash flows from operating activities581,229,373,283.571,438,204,043.35
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments2,997,441.7319,027,649.76
Cash receipts from returns on investments22,643,935.3184,166,102.10
Net cash received from disposal of fixed assets, intangible assets and other long-term assets537,887.384,352,536.98
Other cash receipts relating to investing activities5754,984.6022,040,000.00
Total cash inflows from investing activities26,234,249.02129,586,288.84

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note VFor the six months ended 30 June 2021For the six months ended 30 June 2020
2.CASH FLOWS FROM INVESTING ACTIVITIES (Continued)
Cash payments to acquire fixed assets, intangible assets and other long-term assets145,820,319.98116,186,214.91
Cash payments for investments70,724,113.0020,545,399.15
Net cash payments for acquisition of subsidiaries and other business units100,950,637.41659,201,491.65
Other cash payments relating to investing activities--
Total cash outflows from investing activities317,495,070.39795,933,105.71
Net cash flows from investing activities(291,260,821.37)(666,346,816.87)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others15,680,000.00-
Incl: Cash receipts from capital contributions from non-controlling interests of subsidiaries15,680,000.00-
Cash receipts from borrowings915,684,894.52589,920,037.57
Other cash receipts relating to financing activities57104,090,555.62334,349,840.06
Total cash inflows from financing activities1,035,455,450.14924,269,877.63
Cash repayments for debts511,076,477.58284,200,000.00
Cash payments for distribution of dividends or profit and interest expenses492,345,229.08432,276,651.88
Incl: Dividends or profit paid to non-controlling shareholders of subsidiaries22,846,959.8210,890,773.58
Other cash payments relating to financing activities57838,045,248.871,405,111,664.26
Total cash outflows from financing activities1,841,466,955.532,121,588,316.14
Net cash flows from financing activities(806,011,505.39)(1,197,318,438.51)

The accompanying notes form an integral part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note VFor the six months ended 30 June 2021For the six months ended 30 June 2020
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS392,002.63(47,935.97)
5.NET INCREASE/ DECREASE IN CASH AND CASH EQUIVALENTS58132,492,959.44(425,509,148.00)
Add: Cash and cash equivalents at beginning of the year5,405,113,257.998,426,071,170.16
6.CASH AND CASH EQUIVALENTS AT END OF YEAR585,537,606,217.438,000,562,022.16

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET

As at 30 June 2021

(Expressed in Renminbi Yuan)

ASSETSNote XIV30 June 202131 December 2020
Current assets
Cash and bank balances3,365,069,497.523,020,909,473.71
Notes receivable64,759,826.0130,984,449.44
Accounts receivable1701,273,128.58609,575,301.13
Receivables financing2,436,398.0130,248,631.32
Advances to suppliers4,566,924.776,722,204.59
Other receivables23,467,427,719.163,562,309,346.07
Inventories189,783,318.68172,275,777.63
Current Assets103,944.56139,154.54
Other current assets39,482.3839,482.38
Total current assets7,795,460,239.677,433,203,820.81
Non-current assets
Long-term equity investments38,014,254,485.097,873,668,245.16
Other non-current financial assets117,974,908.51120,972,350.24
Investment properties1,436,098.781,452,132.04
Fixed assets12,027,831.9813,279,902.76
Right-of-use assets4,581,076.345,142,755.88
Intangible assets5,801,168.944,622,268.00
Long-term prepaid expenses4,189,589.434,335,802.92
Deferred tax assets9,245,324.819,025,057.52
Other non-current assets36,250,241.8412,967,715.50
Total non-current assets8,205,760,725.728,045,466,230.02
Total assets16,001,220,965.3915,478,670,050.83

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET (Continued)

As at 30 June 2021

(Expressed in Renminbi Yuan)

LIABILITIES AND SHAREHOLDERS’ EQUITY30 June 202131 December 2020
Current liabilities
Short-term borrowings878,608,520.99157,892,942.24
Notes payable393,434,370.38756,364,719.49
Accounts payable507,406,947.28407,275,713.49
Contract liabilities8,566,647.981,807,562.61
Employee benefits payable34,107,984.2236,672,344.48
Tax payables16,253,302.5613,975,905.04
Other payables2,720,704,209.773,167,152,583.28
Non-current liabilities due within one year1,078,862.941,056,120.58
Other current liabilities1,434,414.00636,200.63
Total current liabilities4,561,595,260.124,542,834,091.84
Non-current liabilities
Long-term borrowings31,633,794.4431,637,173.89
Lease liabilities3,909,950.014,455,967.97
Long-term payables800,000.00800,000.00
Deferred income603,137.94827,658.18
Other non-current liabilities22,866,538.5811,042.52
Total non-current liabilities59,813,420.9737,731,842.56
Total liabilities4,621,408,681.094,580,565,934.40

The accompanying notes form an integral part of these financial statements

COMPANY BALANCE SHEET (Continued)

As at 30 June 2021

(Expressed in Renminbi Yuan)

LIABILITIES AND SHAREHOLDERS’ EQUITY30 June 202131 December 2020
Shareholders’ equity
Share capital428,126,983.00428,126,983.00
Capital surplus4,467,530,563.304,467,991,431.59
Other comprehensive income(63,178.42)(128,033.32)
Surplus reserve214,063,491.50214,063,491.50
Retained earnings6,270,154,424.925,788,050,243.66
Total shareholders’ equity11,379,812,284.3010,898,104,116.43
Total liabilities and shareholders’ equity16,001,220,965.3915,478,670,050.83

The accompanying notes form an integral part of these financial statements

COMPANY INCOME STATEMENT

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

Note XIVFor the six months ended 30 June 2021For the six months ended 30 June 2020
Operating revenue42,078,370,123.361,772,487,363.56
Less: Operating costs41,991,420,311.801,689,564,062.24
Taxes and surcharges2,488,284.742,582,640.86
Selling expenses35,959,501.7331,376,377.04
Administrative expenses46,619,035.0943,060,479.75
Finance costs(55,486,414.78)(43,838,117.34)
Incl: Interest expense27,864,903.2821,928,061.34
Interest income83,409,776.8666,569,319.85
Add: Other incomes1,931,159.58629,921.47
Investment income5780,364,601.71749,633,760.78
Incl: Investment income from associates157,696,473.52133,549,495.38
Income from the derecognition of financial assets measured at amortised cost(221,815.32)(1,526,968.25)
Credit impairment losses(123,032.41)(976,022.96)
Impairment losses(281,770.77)(242,731.87)
Gain on disposal of assets80,996.38-
Operating profits839,341,359.27798,786,848.43
Add: Non-operating income408,885.121,596.77
Less: Non-operating expenses-52,122.72
Total profit839,750,244.39798,736,322.48
Less: Income tax expenses15,144,476.739,645,280.09
Net profit824,605,767.66789,091,042.39
Profit or loss from continuing operations824,605,767.66789,091,042.39
Other comprehensive income, net of tax64,854.90122,186.89
Other comprehensive income that will be reclassified to profit or loss64,854.90122,186.89
Other comprehensive income using the equity method that will be reclassified to profit or loss64,854.90122,186.89
Total comprehensive income824,670,622.56789,213,229.28

The accompanying notes form an integral part of these financial statements

COMPANY STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2021Share capitalCapital surplusOther comprehensive incomeSurplus reserveRetained earningsTotal equity
I. Balance at end of prior year428,126,983.004,467,991,431.59(128,033.32)214,063,491.505,788,050,243.6610,898,104,116.43
II. Changes for the year-(460,868.29)64,854.90-482,104,181.26481,708,167.87
(1) Total comprehensive income--64,854.90-824,605,767.66824,670,622.56
(2) Owners’ contributions and reduction in capital-(460,868.29)---(460,868.29)
1.Others-(460,868.29)---(460,868.29)
(3) Profit distribution----(342,501,586.40)(342,501,586.40)
1. Distribution to owners----(342,501,586.40)(342,501,586.40)
III. Balance at end of year428,126,983.004,467,530,563.30(63,178.42)214,063,491.506,270,154,424.9211,379,812,284.30

The accompanying notes form an integral part of these financial statements

COMPANY STATEMENT OF CHANGES IN EQUITY (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2020Share capitalCapital surplusOther comprehensive incomeSurplus reserveRetained earningsTotal equity
I. Balance at end of prior year428,126,983.004,468,385,307.32(133,366.19)214,063,491.504,996,184,257.3410,106,626,672.97
II. Changes for the year-14,135.44122,186.89-532,214,852.59532,351,174.92
(1) Total comprehensive income--122,186.89-789,091,042.39789,213,229.28
(2) Owners’ contributions and reduction in capital-14,135.44---14,135.44
1.Others-14,135.44---14,135.44
(3) Profit distribution----(256,876,189.80)(256,876,189.80)
1. Distribution to owners----(256,876,189.80)(256,876,189.80)
III. Balance at end of year428,126,983.004,468,399,442.76(11,179.30)214,063,491.505,528,399,109.9310,638,977,847.89

The accompanying notes form an integral part of these financial statements

COMPANY CASH FLOW STATEMENT

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2021For the six months ended 30 June 2020
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the rendering of services2,051,451,080.041,959,922,054.30
Other cash receipts relating to operating activities31,548,087.0356,400,693.21
Total cash inflows from operating activities2,082,999,167.072,016,322,747.51
Cash payments for goods and services1,882,952,590.621,808,113,785.36
Cash payments to and on behalf of employees61,431,053.3756,731,764.12
Payments of all types of taxes and surcharges36,319,473.8234,728,524.87
Other cash payments relating to operating activities11,443,446.2236,411,653.42
Total cash outflows from operating activities1,992,146,564.031,935,985,727.77
Net cash flows from operating activities90,852,603.0480,337,019.74
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments2,997,441.7332,664,096.76
Cash receipts from returns on investments214,065,210.12252,042,116.93
Net cash received from disposal of fixed assets, intangible assets and other long-term assets339,163.00-
Other cash receipts relating to investing activities2,324,825,373.521,575,127,297.73
Total cash inflows from investing activities2,542,227,188.371,859,833,511.42
Cash payments for acquisition of fixed assets, intangible assets and other long-term assets2,302,398.2310,386,641.64
Other cash payments relating to investing activities2,155,040,000.001,309,671,874.11
Total cash outflows from investing activities2,157,342,398.231,320,058,515.75
Net cash flows from investing activities384,884,790.14539,774,995.67

The accompanying notes form an integral part of these financial statements

COMPANY CASH FLOW STATEMENT (Continued)

For the six months ended 30 June 2021

(Expressed in Renminbi Yuan)

For the six months ended 30 June 2021For the six months ended 30 June 2020
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings280,000,000.0032,264,821.52
Other cash receipts relating to financing activities18,653,623,031.3316,113,679,647.75
Total cash inflows from financing activities18,933,623,031.3316,145,944,469.27
Cash repayments for debts30,164,821.5243,700,000.00
Cash payments for distribution of dividends or profit and interest expenses363,151,913.01272,655,694.83
Other cash receipts relating to financing activities18,673,121,608.9915,582,101,156.66
Total cash outflows from financing activities19,066,438,343.5215,898,456,851.49
Net cash flows from financing activities(132,815,312.19)247,487,617.78
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS392,002.63(47,935.97)
5. NET INCREASE IN CASH AND CASH EQUIVALENTS343,314,083.62867,551,697.22
Add: Cash and cash equivalents at beginning of the year3,020,909,473.712,894,333,956.38
6. CASH AND CASH EQUIVALENTS AT END OF YEAR3,364,223,557.333,761,885,653.60

The accompanying notes form an integral part of these financial statements

Notes to financial statementsFor the six months ended 30 June 2021

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

I Profile of the Company

(1) Historical development and basic information

As approved by the People’s Government of Shenzhen (SFBF (1993) No.356), China National AccordMedicines Corporation Ltd. (hereinafter referred to as the “the Company”), formerly known as ShenzhenHealth Mineral Water Corp., Ltd., was registered as a joint stock liability limited company on 1 February1993 through stock transformation. In March 1993, with the approval from the Shenzhen Branch of thePeople’s Bank of China, the Company issued 30 million A shares (including 16.5 million public shares,

3.5 million employee shares and 10 million corporation shares) and 20 million B shares. After thisissuance, the Company’s share capital was RMB105 million. Through convert capital surplus into sharecapital, bonus issues and issuance of shares for years, the share capital of the Company increased toRMB428.13 million as at 30 June 2021

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

I Profile of the Company (Continued)

(1) Historical development and basic information (Continued)

The Company acquired the companies under common control, including Sinopharm Holding GuodaDrugstore Co., Ltd. (“Guoda Drugstore”), Foshan Nanhai Medicine Group Co., Ltd. (“Foshan Nanhai”),Guangdong South Pharmaceutical Foreign Trade Co., Ltd. (“South Pharma & Trade”) and GuangdongDong Fang Uptodate & Special Medicines Co., Ltd. (“Guangdong Uptodate & Special Medicines”) byissuing shares and raised supporting funds by issuing shares to Ping An Asset Management Co., Ltd.to acquire the non-controlling interest of South Pharma & Trade. The above transactions werecompleted on 31 December 2016, and the relevant shares were successfully issued and listed on 5January 2017. Afterwards, the total number of shares of the Company increased to 428,126,983.As of 30 June 2021, the total share capital was RMB428.13 million.

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

I Profile of the Company (Continued)

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

Pharmaceutical Group Corporation (“CNPGC”) , respectively.

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

on 13 August 2021.

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

consolidation scope are shown in Note VI.

II Basis of preparation

The financial statements were prepared in accordance with the Basic Standard and specific standardsof Accounting Standards for Business Enterprises issued by the Ministry of Finance and the specificaccounting standards, application guidance, interpretation and other relevant regulations issued oramended thereafter (hereafter collectively referred to as “Accounting Standards for BusinessEnterprises” or “CAS”).

These financial statements are prepared on a going concern basis. Except for certain financialinstruments, the financial statements have been prepared using the historical cost as the principle ofmeasurement. Where assets are impaired, provisions for asset impairment are made in accordancewith the relevant requirements.

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

III Summary of significant accounting policies and accounting estimates

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

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

The financial statements of the Company for the year ended 30 June 2021 are in compliance withAccounting Standards for Business Enterprises, and truly and completely present the financial positionof the Group and the Company as of 30 June 2021 and the operating results, cash flows and otherinformation for the six months ended 30 June 2021 of the Group and the Company.

(2) Accounting year

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

(3) Business cycle

The Company’s operating cycle is 12 months.

(4) Functional currency

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

(5) Business combinations

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

(a) Business combinations involving enterprises under common control

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(5) Business combinations (Continued)

(b) Business combinations involving enterprises not under common control

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

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

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

Where the business combination not involving enterprises under common control is achieved in stages,the acquirer’s previously held equity interests in the acquiree are remeasured at the fair value on theacquisition date, with the difference between the fair value and carrying amount recognised asinvestment income for the current period. If the acquirer’s previously held equity interests of theacquiree involve other comprehensive income (“OCI”) under the equity method, the accountingtreatment is conducted on the same basis as would have been required if the investee had directlydisposed of the related assets or liabilities, and the changes in shareholders’ equity other than net profitor loss, OCI and profit distributions are charged to profit or loss for the current period on the acquisitiondate. For financial assets at fair value through OCI held before the acquisition date, changes in fairvalue that were accumulated through OCI will transfer to retained earnings.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(6) Preparation of consolidated financial statements

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

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

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

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(7) Cash and cash equivalents

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

(8) Foreign currency transactions and foreign currency translation

The Group translates foreign currency transactions into its functional currency.

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

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

(9) Financial instruments

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

Recognition and derecognition

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(9) Financial instruments (Continued)

Recognition and derecognition (Continued)

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

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

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

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

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

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

Classification and measurement of financial assets

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(9) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

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

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

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(9) Financial instruments (Continued)

Classification and measurement of financial assets (Continued)

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

Classification and measurement of financial liabilities

The Group’s financial liabilities are, on initial recognition, classified into financial liabilities at fair valuethrough profit or loss, other financial liabilities or derivatives designated as effective hedginginstruments. For financial liabilities at fair value through profit or loss, relevant transaction costs aredirectly recognised in profit or loss, and transaction costs relating to other financial liabilities areincluded in the initial recognition amounts.

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

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

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

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

(2) The formal written document of the risk management or investment strategy has stated that the

portfolio of financial instruments is managed, evaluated and reported to key managers on thebasis of fair value.

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

(4) Mixed instruments contain embedded derivatives that need to be split but cannot be measuredseparately at the time of acquisition or on subsequent balance sheet days.

When an enterprise designates a financial liability as a financial liability at fair value through profit orloss, it cannot be reclassified as other financial liabilities; nor can other financial liabilities be re-designated as financial liabilities at fair value through profit or loss after initial recognition.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(9) Financial instruments (Continued)

Classification and measurement of financial liabilities (Continued)

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

Impairment of financial assets

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

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

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

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

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

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

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

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

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(9) Financial instruments (Continued)

Offsetting of financial instruments

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

Transfer of financial assets

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

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

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

(10) Notes receivables

For details of the method for determining the expected credit loss of notes receivable, please refer toNote V (9) “Financial instruments - Impairment of financial instruments”.

(11) Accounts receivables

For details of the method for determining the expected credit loss of accounts receivable, please referto Note V (9) “Financial instruments - Impairment of financial instruments”.

(12) Receivable financing

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

For details of the method for determining the expected credit loss of receivables financing, please referto Note V (9) “Financial instruments - Impairment of financial instruments”.

(13) Other receivables

For details of the method for determining the expected credit losses of other receivables, please refer toNote V (9) “Financial instruments - Impairment of financial instruments”.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(14) Inventories

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

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

The Group adopts the perpetual inventory system.

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

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

(15) Contract assets

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

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

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

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

(16) Assets relating to contract cost

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

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

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(16) Assets relating to contract cost (Continued)

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

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

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

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

performance obligations in the future; and

(3) the costs are expected to be recovered.

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

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

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

goods or services to which the asset relates; less

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

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

(17) Long-term equity investments

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

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(17) Long-term equity investments (Continued)

A long-term equity investment is initially measured at its initial investment cost on acquisition. For long-term equity investments arising from business combination involving enterprises under common control,the initial investment cost shall be the share of the carrying amount of equity of the acquiree in theconsolidated financial statements of the ultimate controlling party as at the combination date. Thedifference between the initial investment cost and book value of consideration of combination isadjusted to capital reserves, and to retained earnings if capital reserves is insufficient. Othercomprehensive income recognised before the combination date is accounted for on the same basis aswould have been required if the investee had directly disposed of the related assets or liabilities. Equitypreviously recognised resulting from the investee’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss. Equity which still involves along-term investment after disposal is reclassified to profit or loss on a pro-rata basis and equity whichswiches to a financial instrument after disposal is fully reclassified to profit or loss. For long-term equityinvestments arising from business combination involving enterprises not under common control, theinvestment cost shall be the combination cost. (For a business combination achieved in stages, theinitial investment cost is determined as the sum of the carrying amount of equity of the acquiree and theadditional investment costs on the combination date.) The combination cost involves the assets paid bythe acquirer, liabilities incurred and the fair value of equity securities. Other comprehensive incomesrecognised using the equity method before the combination date is accounted for on the same basis aswould have been required if the investee had directly disposed of the related assets or liabilities. Equitypreviously recognised resulting from the investee’s equity changes other than profit or loss, othercomprehensive income and profit distribution is reclassified to profit or loss. Equity which still involves along-term investment after disposal is reclassified to profit or loss on a pro-rata basis and equity whichswiches to a financial instrument after disposal is fully reclassified to profit or loss. The accumulatedchanges in the fair value of financial assets at fair value through other comprehensive income isreclassified to retained earnings when adopting the cost method. Depending on the way of acquisitionof long-term equity investments, the initial investment cost is determined as follows: For long-termequity investments acquired by way of cash payment, the initial investment cost includes all directlyassociated expenses, applicable taxes and fees, and other necessary expenses. For long-term equityinvestments acquired by way of issuing equity securities, the initial investment cost includes the fairvalue of equity securities. For long-term equity investments acquired by way of the swap of non-monetary assets, the initial investment cost shall be determined in accordance with “ASBE No. 7 —Swap of Non-monetary Assets.” For long-term equity investments acquired by way of debt restructuring,the initial investment cost shall be determined in accordance with “ASBE No. 12 — Debt Restructuring.”

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(17) Long-term equity investments (Continued)

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(18) Investment properties

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

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

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

Estimated useful livesEstimated residual valueAnnual depreciation (amortization) rates
Buildings and Constructions5-35 years0-5%2.71-19.00%
Land use rights40-50 years or No fixed useful life-2.00-2.50%

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

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

(19) Fixed assets

Recognition criteriaA fixed asset is recognised only when the economic benefits associated with the asset will probablyflow into the Group and the cost of the asset can be measured reliably. Subsequent expendituresincurred for a fixed asset that meets the recognition criteria shall be included in the cost of the fixedasset, and the carrying amount of the component of the fixed asset that is replaced shall bederecognised. Otherwise, such expenditures are recognised in profit or loss as incurred. Fixed assetsare initially measured at cost, by taking into account the effect of any asset retirement obligations. Thecost of a purchased fixed asset comprises the purchase price, relevant taxes and any directlyattributable expenditure for bringing the asset to working condition for its intended use. The Groupreviews the useful life and estimated net residual value of a fixed asset and the depreciation methodapplied at least at each year end, and make adjustments if necessary.

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(19) Fixed assets (Continued)

Depreciation method

Estimated useful lives Estimated residual value Annual depreciationrates

Buildings and constructtions 10-40 years 3-5% 2.38-9.70%Machinery andequipment 5-14 years 3-5% 6.79-19.40%Motor vehicles 3-10 years 5% 9.50-31.67%Office equipments 3-10 years 5% 9.50-31.67%Electronic equipments 3-10 years 0-5% 9.50-33.33%

(20) Construction in progress

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

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

(21) Borrowing costs

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

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

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

(1) expenditures for the asset have been incurred;

(2) borrowing costs have been incurred; and

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

sale have been undertaken.

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(21) Borrowing costs (Continued)

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

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

amount of interest eligible for capitalisation is the actual interest costs incurred on thatborrowing for the period less any bank interest earned from depositing the borrowed fundsbefore being used on the asset or any investment income on the temporary investment of thosefunds; or

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

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

Capitalisation of borrowing costs is suspended during periods in which the acquisition, construction orproduction of a qualifying asset is suspended abnormally by activities other than those necessary to getthe asset ready for its intended use or sale, when the suspension is for a continuous period of morethan 3 months. Borrowing costs incurred during these periods are recognised as an expense in profit orloss until the acquisition, construction or production is resumed.

(22) Right-of-use assets

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

At the commencement date of the lease, the Group recognises a right-of-use asset. The cost of theright-of-use asset comprises: (i) the amount of the initial measurement of the lease liability; (ii) anylease payments made at or before the commencement date of the lease less any lease incentivesreceived; (iii) any initial direct cost incurred; and (iv) an estimate of costs incurred by the lessee indismantling and removing the underlying asset, restoring the site on which it is located or restoring theunderlying asset to the condition required by the terms and conditions of the lease. The right-of-useassets are depreciated on a straight-line basis subsequently by the Group. If the Group is reasonablycertain that the ownership of the underlying asset will be transferred to the Group at the end of thelease term, the Group depreciates the asset from the commencement date to the end of the useful lifeof the asset. Otherwise, the Group depreciates the assets from the commencement date to the earlierof the end of the useful life of the asset or the end of the lease term.

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(23) Intangible assets

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

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

The useful lives of the intangible assets are as follows:

CategoriesUseful lives
Land use rightsBetween the approved useful period and the Company’s operating period
Software3-10 years
Trademarks and Brand use rights10 years or No fixed life
Distribution network10-20 years
Franchising rights10 years
Favorable leases16-20 years

Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings, suchas plants that are developed and constructed by the Group, and relevant land use rights are accountedfor as fixed assets and intangible assets, respectively. Payments for the land and buildings purchasedare allocated between the land use rights and the buildings; they are accounted for as fixed assets ifthey cannot be reasonably allocated.

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(23) Intangible assets (Continued)

Internal research and development project

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

Development costs previously recognised as expenses are not recognised as an asset in a subsequentperiod. Capitalized expenditure on the development phase is presented as development costs in thebalance sheet and transferred to intangible assets at the date that the asset is ready for its intendeduse.

(24) Impairment of long-term assets

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

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

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

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

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

(25) Long-term prepaid expenses

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

(26) Contract liabilities

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(27) Employee benefits

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

Short-term employee benefits

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

Post-employment benefits (defined contribution plans)

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

Post-employment benefits (defined benefit plans)

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(27) Employee benefits (Continued)

Termination benefits

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

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

The change of termination benefits’ actuarial assumptions and difference incurred by theadjustment of welfare standards are recognised in profit or loss as incurred.

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

Other long term employee benefits

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

(28) Lease liability

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(29) Provisions

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

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

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

obligation; and

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

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

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

(30) Share-based payments

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(30) Share-based payments (Continued)

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

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(31) Revenue recognition

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

Contracts for sale of goods

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

Service Contracts

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

Variable consideration

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

Consideration payable to customers

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(31) Revenue recognition (Continued)

Return clauses

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

Significant financing component

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

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

Warranty clauses

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

Reward points program

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(31) Revenue recognition (Continued)

Principal responsible person/proxy

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

(32) Government grants

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

Government grants related to assets refer to government assets which are granted to enterprises forthe long-term assets formed by acquisition, construction or in other manners. Government grantsrelated to income refer to government grants other than those related to assets.

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

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

(33) Income tax

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

Current tax liabilities or assets arising from the current and prior periods at the amount expected to bepaid by the Group or returned by the tax authority calculated according to related tax laws.Deferred tax is provided using the balance sheet liability method, on all temporary differences at thebalance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the tax bases and the carrying amounts of the items, which have a taxbase according to related tax laws but are not recognised as assets and liabilities.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(33) Income tax (Continued)

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

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

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

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

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

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

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

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

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

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

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

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

Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legallyenforceable right to set off current tax assets and current tax liabilities, and the deferred tax assets anddeferred tax liabilities relate to income taxes levied by the same taxation authority on either the sametaxable entity or different taxable entities which intend either to settle current tax liabilities and assets ona net basis, or to realise the assets and settle the liabilities simultaneously, in each future period inwhich significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(34) Lease

Identification of leases

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

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

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

resources that are readily available to the lessee; and

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

underlying assets in the contract.

Separating lease components and non-lease components

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

Assessment of the lease term

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

As leasee

The accounting treatment of the Group as lease please refer to Note.III.22 and Note III.28.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(34) Leases(Continued)

Lease modifications

Lease modification is a change in the scope of a lease, or the consideration for a lease, that was notpart of the original terms and conditions of the lease, for example, adding or terminating the right to useone or more underlying assets, or extending or shortening the contractual lease term.

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

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

underlying assets; and

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

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

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

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

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

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

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

Short-term leases and leases of low-value assets

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(34) Leases(Continued)

Rent concessions under COVID-19

For rent reductions, such as rent reductions, deferred payments, etc., directly caused by the COVID-19epidemic, the Group and the lessor have reached an existing lease contract, and meet the followingconditions at the same time, the Group adopts a simplified method for leases:

(1) The lease consideration after the concession is reduced or basically unchanged from that before theconcession;

(2) The concession is only for the amount of lease payments payable before June 30, 2022;

(3) After comprehensively considering qualitative and quantitative factors, it is determined that there areno major changes in other terms and conditions of the lease.

The Group does not evaluate whether there is a lease change, and continues to calculate the interestexpense of the lease liability based on the same discount rate as before the reduction and included inthe current profit and loss, and continues to depreciate the right-of-use asset in the same way as beforethe reduction. For rent reduction or exemption, the Group regards the reduced rent as a variable leasepayment. When a concession agreement is reached to release the original rent payment obligation, theundiscounted cash amount will be used to offset the relevant asset costs or expenses, and the leaseliability will be adjusted accordingly ; For the delayed payment of rent, the Group will offset the leaseliability confirmed in the previous period when the actual payment is made.

As lessor

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

As lessor of an operating lease

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(35) Other significant accounting policies and accounting estimates

1) Medical reserve funds and specially approved reserving materials

Medical reserve funds refer to the funds appropriated by the State for the reserve of materialsfor specified purposes to cope with major disasters, epidemic situations, first aid and otheremergencies, etc. Specially approved reserving materials refer to the medical commoditiesrequired by the government to deal with emergencies such as epidemic situations, first aid andlocal common diseases. According to the regulations of CNPGC, the Group, as an enterpriseundertaking the task of specially approved reserving materials reserve, obtains the medicalreserve funds provided by the PRC government, which appropriated to the local governmentand CNPGC. The medical reserve funds received via those parties are recognised as othernon-current liabilities. In the meantime, the Government of Guangdong Province and GuangxiProvince designated Sinopharm Holding Guangzhou Co., Ltd. (“Sinopharm Guangzhou”) andits subsidiaries, Sinopharm Holding Guangxi Co., Ltd. (“Sinopharm Guangxi”) and itssubsidiaries to undertake the storage, allocation and supply of pharmaceutical commoditiesrequired by major disasters, epidemic situations, first aid and other emergencies as well aslocal common diseases in Guangdong and Guangxi Zhuang Autonomous Region. According tothe reserve plan (variety and quantity) of the local government and CNPGC, the Groupreserves the corresponding specially approved reserving materials, implements dynamicmanagement and recognises them as other non-current assets.

2) Dividend distribution

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

3) Fair value measurement

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

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

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

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(35) Other significant accounting policies and accounting estimates (Continued)

3) Fair value measurement (Continued)

The fair value hierarchy in which an asset or liability is measured or disclosed in the financialstatements at fair value will be determined on the basis of the lowest level of input which is significantfor the fair value measurement as a whole. Input at the first level represents unadjusted quoted prices inan active market for the acquisition of the same asset or liability on the measurement date. Input at thesecond level represents directly or indirectly observable assets or liabilities apart from input at the firstlevel. Input at the third level represents unobservable input for the asset or liability.

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

4) Segment information

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

An operating segment is a component of the Group that satisfies all of the following conditions: (1) thecomponent is able to earn revenues and incur expenses from its ordinary activities; (2) the component’soperating results are regularly reviewed by the Group’s management to make decisions aboutresources to be allocated to the segment and to assess its performance, and (3) for which theinformation on financial position, operating results and cash flows is available to the Group. If two ormore operating segments have similar economic characteristics and satisfy certain conditions, they areaggregated into one single operating segment.

5) Significant accounting judgements and estimates

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

Judgements

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(35) Other significant accounting policies and accounting estimates (Continued)

5) Significant accounting judgements and estimates(Continued)

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

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

Estimation uncertainty

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(34) Other significant accounting policies and accounting estimates (Continued)

5) Significant accounting judgements and estimates(Continued)

Estimation uncertainty (Continued)

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

Impairment of goodwillThe Group determines whether goodwill is impaired at least on an annual basis. This requires anestimation of the present value of the future cash flows expected to be derived from the asset groups(sets of asset groups) to which the goodwill is allocated. Estimating the present value requires theGroup to make an estimate of the expected future cash flows from the asset groups (sets of assetgroups) and also to choose a suitable discount rate in order to calculate the present value of those cashflows. Further details are included in Note V.18.

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

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

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

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

(34) Other significant accounting policies and accounting estimates (Continued)

5) Significant accounting judgements and estimates(Continued)

Estimation uncertainty (Continued)

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

(34) Other significant accounting policies and accounting estimates (Continued)

5) Significant accounting judgements and estimates(Continued)

Estimation uncertainty (Continued)

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

IV Taxation

1. Main categories and rates of taxes:

CategoriesTax baseTax rate
Value added tax (“VAT”)Taxable value added amount (Tax payable is calculated by using the taxable sales amount multiplied by the effective tax rate less deductible VAT input of the current period)1%, 3%, 5%, 6%, 9%, 13%
City maintenance and construction taxAmount of VAT5% or 7%
Corporate income tax (“CIT”)Taxable income15%, 20% or 25%
Educational surchargeAmount of VAT3%
Local educational surchargeAmount of VAT2%

2. Tax preferences

In 2021, according to the "Announcement of the Ministry of Finance and the State Administration ofTaxation and the National Development and Reform Commission on the Continuation of theEnterprise Income Tax Policy for the Western Development" (Announcement No. 23, 2020 of theMinistry of Finance and the State Administration of Taxation and the National Development andReform Commission) and the "Announcement on the Continuation of the Enterprise Income TaxPolicy for the Western Development" (Ministry of Finance Announcement No. 23 of 2020), thecompany’s subsidiaries that can enjoy the preferential corporate income tax rate of 15% for theencouraged industries in the western region include: Sinopharm Holding Guangxi Co.,Ltd.( Sinopharm Guangxi), Sinopharm Holding Guangxi Logistics Co., Ltd. (“Sinopharm GuangxiLogistics”), Sinopharm Holding Liuzhou Co., Ltd. (“Sinopharm Liuzhou”) , Sinopharm HoldingBeihai Co., Ltd. (“Sinopharm Beihai”), Sinopharm Holding Guilin Co., Ltd. (“Sinopharm Guilin”),Sinopharm Holding Guigang Co., Ltd. (“Sinopharm Guigang”), Sinopharm Holding Yulin Co., Ltd.(“Sinopharm Yulin”), Sinopharm Holding Baise Co., Ltd. (“Sinopharm Baise”), Sinopharm HoldingWuzhou Co., Ltd. (“Sinopharm Wuzhou”), Sinopharm Holding Qinzhou Co., Ltd. (“SinopharmQinzhou”), Sinopharm Holding Hezhou Co., Ltd. (“Sinopharm Hezhou”), Sinopharm HoldingGuangxi Medical Supply Chain Service Co., Ltd.(“Sinopharm Guangxi Supply Chain”), SinopharmHolding Xinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & SpecialMedicines”), Sinopharm Holding Guoda Inner Mongolia Pharmacy Chain Store Co., Ltd.(“InnerMongolia Guoda”), Sinopharm Holding Guoda Hulun Buir Pharmacy Chain Store Co., Ltd.(“InnerMongolia Hulun Buir Guoda”), Inner Mongolia Guoda Medicine Co., Ltd.(“Inner Mongolia GuodaMedicine”), Ningxia Guoda Pharmacy Chain Store Co., Ltd.(“Ningxia Guoda”), Sinopharm HoldingGuoda Guangxi Pharmacy Chain Store Co., Ltd.(“Guangxi Guoda”), Guoda Pharmacy (Pu’er)Songmao Co., Ltd.(“Guoda Pu’er Songmao”) and Sinopharm Holding Guoda Drug StoreManchuria Co., Ltd.(“Manchuria Guoda”).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

IV Taxation (Continued)

2. Tax preferences (Continued)

Tax preferences(Continued)

In 2021, according to the “Notice on the Implementation of Inclusive Tax Reduction and ExemptionPolicies for Small and Micro Enterprises” (Cai Shui [2019] No.13) and the “Announcement of theMinistry of Finance and the State Administration of Taxation on the Implementation of PreferentialIncome Tax Policies for Small and Micro Enterprises and Individual Business" ( Announcement No.12 of 2021 of the Ministry of Finance and the State Administration of Taxation), subsidiaries of theCompany listed below qualified for the conditions of small low-profit enterprises, which themonomer taxable income of these subsidiaries does not exceed RMB3 million. Hence, for theportion of annual taxable income not exceeding RMB1 million, it shall be included in the taxableincome by 12.5%, and enterprise income tax shall be paid at the rate of 20%; for the portion ofannual taxable income exceeding RMB1 million but not exceeding RMB3 million, it shall beincluded in the taxable income by 50%, and enterprise income tax shall be paid at the rate of 20%.The Company’s subsidiaries which qualified for the conditions of small low-profit enterprisesincluding Shanghai Guoda Dongsheng Pharmacy Co., Ltd.(“Shanghai Dongsheng Guoda”),Shanghai Guoda Haohai Pharmacy Co., Ltd.(“Shanghai Haohai Guoda”), Shanghai Guoda RuijingPharmacy Co., Ltd.(Shanghai Ruijing Guoda”), Shanghai Guoda Dongxin Pharmacy Co.,Ltd.(“Shanghai Dongxin Guoda”), Sinopharm Guoda Yongsheng Pharmacy (Shanghai) Co.,Ltd.(Shanghai Yongsheng Guoda”), Zhejiang Sinopharm Pharmacy Dongshan Pharmacy Co.,Ltd.(“Zhejiang Dongshan Guoda”), Sinopharm Holding Guoda Pharmacy Guangzhou Chain Co.,Ltd.(“Guoda Guangzhou Chain”), Taishan Sinopharm Holding Guoda Qunkang Pharmacy ChainStore Co., Ltd. (“Taishan Qunkang”), Sinopharm Holding Guoda Pharmacy Yongxingtang ChainStore (Chaoyang) Co., Ltd.(”Guoda Yongxingtang”), Liaoning Guoda Medicine Co., Ltd.(“LiaoningMedicine”), Changzhi Guoda Wanmin Pharmacy Chain Store Co., Ltd.(“Changzhi Wanmin”),Sinopharm Holding Guoda Pharmacy Bayannur Co., Ltd. (“Bayannur”), Sinopharm Holding GuodaPharmacy Ulanqab Co., Ltd.(“Inner Mongolia Wulan Guoda”), Sinopharm Holding Baiyi PharmacyGuangxi Co., Ltd.(“Sinopharm Baiyi Pharmacy”), Sinopharm Accord (Guangzhou) Medicine Co.,Ltd.(“Guangzhou Medicine”), Shanghai ForMe Xuhui Pharmacy Co., Ltd.(“ForMe Xuhui”), BeijingGolden Elephant Guoxing Pharmaceutical Co., Ltd.(“Golden Elephant Guoxing”), Jilin Yihe DrugStore Co., Ltd.(“Jilin Yihe”), Guangxi Guoda Pharmaceutical Consulting Chain Co., Ltd.(“GuangxiConsulting”), Liaoning Guoda Health Pharmacy Co., Ltd.(“Liaoning Health Pharmacy”), LiaoningGuoda Pharmacy Chain Co., Ltd.(“Liaoning Guoda Pharmacy”), Yanji Xianghe Medicine Co.,Ltd.(“Yanji Xianghe”), Inner Mongolia Chengda Fangyuan Medicine Co., Ltd.(“Inner MongoliaChengda Fangyuan Medicine”) and Jilin Chengda Fangyuan Medicine Co., Ltd.(“Jilin ChengdaFangyuan Medicine”).

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements

1. Cash and bank balances

30 June 202131 December 2020
Cash on hand4,898,795.546,707,125.90
Cash at banks5,533,553,362.085,398,406,132.09
Cash and cash equivalent5,532,707,421.895,398,406,132.09
Undue interest receivable(Note 1)845,940.19-
Other monetary funds (Note 2)338,186,269.94593,091,037.88
5,876,638,427.565,998,204,295.87
Note 1: Current deposits earn interest at the rate based on current deposit interest rates. Maturities of short-term time deposits range from 1 month to 6 months depending on the fund arrangements of the Group, and the deposits earn interest at the respective deposit rates. The maturities of bank notice deposits are 7 days depending on the fund arrangement of the Group, and the deposits earn interest at the respective deposit rates. Note 2: Other monetary funds at 30 June 2021 include: Deposits for bank acceptance bills RMB236,042,026.02 (31 December 2020: RMB492,734,978.75), freezing of funds RMB67,280,993.60 (December 31, 2020: RMB66,956,993.60), Medical reserve funds RMB27,515,383.35 (December 31, 2020: RMB27,465,331.50), fixed deposit RMB3,193,851.81 (December 31,2020:RMB3,167,718.14), and other deposits RMB4,154,015.16 (December 31,2020: RMB2,766,015.89).

2. Notes receivable

The notes receivable by category
30 June 202131 December 2020
Commercial acceptance bills606,070,192.39622,115,477.04

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

2. Notes receivable(Continued)

The carrying amount of notes receivable that affected the changes in provision this year is as follows:
30 June 202131 December 2020
Carrying amountBad debt provisionsBook ValueCarrying amountBad debt provisionsBook Value
AmountProportionAmountProportionAmountProportionAmountProportion
Items for which provision for bad debts is recognised individually10,301,666.471.70%585,955.985.69%9,715,710.4927,634,855.484.43%1,479,520.325.35%26,155,335.16
Items for which provision for bad debts is recognised by group (credit risk characteristics)596,354,481.9098.30%--596,354,481.90595,960,141.8895.57%--595,960,141.88
606,656,148.37100.00%585,955.980.10%606,070,192.39623,594,997.36100.00%1,479,520.320.24%622,115,477.04

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

2. Notes receivable(Continued)

On 30 June 2021, notes receivable that are individually assessed for provisions are as follows:
Carrying amountBad debt provisionExpected credit loss rateAssessment for impairment
Client A723,189.592,972.460.41%The drawer has historical credit defaults; the notes receivable are expected to be at risk of collection.
Client B9,578,476.88582,983.526.09%The drawer has historical credit defaults; the notes receivable are expected to be at risk of collection.
10,301,666.47585,955.98
Provision for bad debts in the current period as follows:
Current change amount
Opening balanceProvisionReversal in the yearWrite-off in the yearOthersClosing balance
Individual provision for bad debts1,479,520.32-(893,564.34)--585,955.98
1,479,520.32-(893,564.34)--585,955.98
Receivables financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2021 are as follows:
30 June 2021
DerecognisedNot derecognised
Commercial acceptance bills-125,089.80
At the end of the period, the company transferred the acceptance notes to accounts receivable due to the drawer's failure to perform the contract:
Amount transferred to accounts receivable at the end of the period
Commercial acceptance bills2,090,087.17

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

3. Accounts receivable

(1) The accounts receivable by category
30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying valueGross carrying amountProvision for bad debtGross carrying value
AmountProportionAmountProportionAmountProportionAmountProportion
Items for which provision for bad debt is recognized separately1,017,692,611.965.69%(29,993,339.31)2.95%987,699,272.65674,370,776.754.85%(29,223,931.45)4.33%645,146,845.30
Inculdes:
Items for which provision for bad debt is recognized by group16,864,163,256.2194.31%(90,686,079.61)0.54%16,773,477,176.6013,218,113,690.6095.15%(63,289,521.68)0.48%13,154,824,168.92
Includes:
17,881,855,868.17100.00%(120,679,418.92)0.67%17,761,176,449.2513,892,484,467.35100.00%(92,513,453.13)0.67%13,799,971,014.22

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category
Accounts receivable that are individually assessed for provisions
30 June 2021
Carrying amountBad debt provisionProportionAssessment for impairment
Receivable of medical insurance514,818,583.40(6,606,210.91)1.28%The receivable of medical insurance has lower-tier default risk.
Client A11,559,178.29(11,559,178.29)100.00%Debtor had irregular operations of subject to serious financial difficulties and related to multiple lawsuits, is with lower-tier recoverability.
Client B2,447,976.74(2,447,976.74)100.00%Debtor had irregular operations of subject to serious financial difficulties, and has been placed on a national list of defaulters, with highly risk of going bankruptcy or financial restructuring.
Client C2,365,253.03(2,365,253.03)100.00%Debtor had irregular operations of subject to serious financial difficulties, and has been placed on a national list of defaulters, with highly risk of going bankruptcy or financial restructuring.
Others486,501,620.50(7,014,720.34)1.44%Part of the receivable takes longer than usual to recover, and has risk of recoverability.
1,017,692,611.96(29,993,339.31)-
Provision for bad debts by portfolio:
30 June 2021
Carrying amountBad debt provisionAccrual proportion
Combination by credit risk characteristics16,864,163,256.2190,686,079.610.54%
Provision for bad debts of accounts receivable according to the general model of expected credit loss
30 June 2021
Estimated default amountExpected credit loss in entire lifetimeExpected credit loss rate
Within 1 year16,312,880,752.43(40,974,307.84)0.25%
1 to 2 years511,922,099.65(34,341,536.99)6.71%
2 to 3 years27,850,847.18(7,831,498.28)28.12%
Over 3 years11,509,556.95(7,538,736.50)65.50%
16,864,163,256.21(90,686,079.61)0.54%

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(1) The accounts receivable by category (Continued)
The aging analysis of accounts receivables
30 June 2021
Within 1 year17,299,413,843.64
1 to 2 years515,740,902.78
2 to 3 years36,094,871.65
Over 3 years30,606,250.10
17,881,855,868.17

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

Bad debt provision for the current period

Opening balanceAmount changes in current periodClosing balance
IncreasesReversalwrite-offIncreases in merger
Accounts receivable bad debt provision92,513,453.1338,699,564.83(10,675,833.06)(35,935.36)178,169.38120,679,418.92
Important recovered or reversed items of provision for individually assessed bad debts from January to June 2021 are listed below:
Recovered or reversed amountMethod of recovery or reversion
Client A62,252.15Payment collection
Client B25,278.00Payment collection
Client C19,152.28Payment collection
106,682.43

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

3. Accounts receivable (Continued)

(3)Accounts receivable actually written off in the current period

ProjectWrite off amount
Client A35,935.36
35,935.36

(4) The top five accounts receivable analysed by customer

Amount% of the total accounts receivableBad debt provision amount
Top 1 Account receivable250,098,236.841.40%(920,455.72)
Top 2 Account receivable248,454,363.201.39%(1,958,560.00)
Top 3 Account receivable209,855,263.241.17%(1,432,489.42)
Top 4 Account receivable184,205,023.091.03%(1,592,971.29)
Top 5 Account receivable161,208,692.820.90%(426,533.84)
1,053,821,579.195.89%(6,331,010.27)

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

From January to June 2021, the Group factored a small portion of accounts receivable at amortised cost to financial institutions. The amount of accounts receivable derecognised was RMB1,045,150,904.52 (January to June 2020: RMB2,756,648,565.22), and the amount of loss recognised through Investment income was RMB7,039,046.60 (January to June 2020: RMB33,507,102.64).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

4. Receivable financing

30 June 202131 December 2020
Bank acceptance bills345,906,887.551,404,987,700.38
Receivable financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2021
30 June 2021
DerecognisedNot Derecognised
Bank acceptance bills1,841,760,515.5620,070,999.69

5. Advances to suppliers

(1)The aging of advances to suppliers
30 June 202131 December 2020
Amount% of total balanceAmount% of total balance
Within 1 year611,349,475.0999.31%480,215,111.4299.98%
1 to 2 years4,253,441.220.69%42,225.290.01%
2 to 3 years--56,238.000.01%
615,602,916.31100.00%480,313,574.71100.00%
The illustration of the reasons why advance payments with a more than one-year aging while the amounts are significant not settled in time: Nil.
(2)The top five advances to suppliers by customer on 30 June 2021
AmountProportion of total balance
Total amount of top five advances to suppliers217,538,246.1335.34%

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

6. Other receivables

30 June 202131 December 2020
Other receivables662,274,841.26535,228,747.69
(1) Other receivables
(a) Category of other receivables by nature
30 June 202131 December 2020
Deposits294,986,764.47287,130,364.44
Receivable of price reduction compensation and purchasing rebates141,495,787.0285,263,225.16
Receivable of the pharmaceutical electronic trading platform49,995,673.2060,267,511.03
Entrusted borrowings46,334,222.2446,334,222.24
Petty cash advance to employees52,673,098.7022,994,684.93
Receivable of equity transactions8,980,000.008,980,000.00
Receivable due from related parties23,094,951.862,867,594.20
Others115,368,379.0590,580,362.96
732,928,876.54604,417,964.96
(b) Changes in bad debt provision
Stage 1Stage 2Stage 3
Bad debtExpected credit losses over the next 12 monthsEntire lifetime expected credit losses(No credit impairment occurred)Entire lifetime expected credit losses(Credit impairment occurred)Total
Balance at 1 January 2021-7,305,149.9061,884,067.3769,189,217.27
Balance at 1 January 2021 during the period
Provisions during the period-2,441,341.87171,144.992,612,486.86
Reversal during the period-(1,146,204.24)(1,464.61)(1,147,668.85)
Balance at 30 June 2021-8,600,287.5362,053,747.7570,654,035.28

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

6. Other receivables (Continued)

The aging analysis of other receivables was as follows:

30 June 2021
Within 1 year592,791,636.86
1 to 2 years57,692,718.34
2 to 3 years11,332,912.33
Over 3 years71,111,609.01
732,928,876.54
(c) Changes in bad debt provision, recovery or reverse
Provision for bad debts in the current period as follows:
Current change amount
Opening balanceProvisionReversal in the yearWrite-off in the yearOtherClosing balance
Provision for impairment of other receivables69,189,217.272,612,486.86(1,147,668.85)--70,654,035.28
69,189,217.272,612,486.86(1,147,668.85)--70,654,035.28
(d) The top 5 parties that owed the largest amounts of other receivable balances
NatureAmountAge% of total amountProvision of bad debt
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd. (Note1)Entrusted borrowings46,334,222.24Over 3 years6.32%46,334,222.24
Guangdong Pharmaceutical electronic trading platformPharmaceutical trading platform repayment not yet cleared36,837,497.58Within 1 year5.03%-
Shenzhen Administration of social insurance fundDeposit20,029,963.00Within 1 year2.73%-
TCM-Integrated Cancer Center of Southern Medical UniversityDeposit of logistics extension services project20,000,000.00Over 3 years2.73%-
Bayer Healthcare Co.Ltd.Purchase rebates receivable and price reduction compensation16,117,671.62Within 1 year2.20%-
139,319,354.4419.01%46,334,222.24

Note1:Due to the poor management of Zhijun Suzhou, the solvency decreased and the credit risk increased. Based on theprinciple of prudence, the group fully accrued the bad debt provision for the entrusted loan of RMB 46,334,222.24.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

7. Inventories

(1)Inventories by category
30 June 202131 December 2020
Book valueProvision for declines in value of inventories and impairment of contract performance costsNet book valueBook valueProvision for declines in value of inventories or impairment of contract performance costsNet book value
Raw materials890,219.51-890,219.511,959,948.73-1,959,948.73
Work in progress133,216.20-133,216.20244,341.19-244,341.19
Finished goods7,228,118,772.03(12,979,519.90)7,215,139,252.136,292,866,195.61(12,997,334.35)6,279,868,861.26
Low cost consumables3,495,930.78-3,495,930.782,937,523.28-2,937,523.28
7,232,638,138.52(12,979,519.90)7,219,658,618.626,298,008,008.81(12,997,334.35)6,285,010,674.46
(2)Provision for declines in value of inventories and impairment of contract performance costs
31 December 2020IncreasesDecreases30 June 2021
ProvisionAddition due to combinationReversal or write-offOthers
Finished goods12,997,334.355,022,800.14314,857.50(4,704,443.43)(651,028.66)12,979,519.90

In 2021, due to the recovery of the value of some inventories, the provision for falling price was RMB 4,704,443.43 (2020: RMB 1,975,512.44), and the provision for falling price of inventories was RMB651,028.66 (2020: RMB 1,458,197.19).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

8. Contract assets

9.31 December 202131 December 2020
Book ValueProvisionNet Book ValueBook ValueProvisionNet Book Value
Medical devices and equipment guarantee funds17,144,247.2578,141.7217,066,105.5315,195,530.95-17,799.3115,177,731.64-
The Group sells medical devices and equipment to customers and provides relevant installation services, which constitutes a single performance obligation. After the delivery of medical devices and equipment by the Group and acceptance by customers, the control rights of goods are transferred. The Group recognises the relevant income and transfers part of the contract consideration to receivables, and the other parts are formed as contract assets. After the equipment is installed and the agreed warranty period ends, the contract assets will form an unconditional right of collection and be transferred into receivables.

An aging analysis of contract assets with provision for impairment are as follows:

30 June 2021
Estimated default amountExpected credit loss in entire lifetimeExpected credit loss rate
Within 1 year17,144,247.2578,141.720.46%

Changes in provision for contract assets are presented as follows:

30 June 2021
ProjectProvision in current periodReversal in current periodwrite offfReason
Provision for impairment of contract assets60,622.700(280.29)-Provision for bad debts of contract assets shall be made according to expected credit losses

9. Other current assets

30 June 202131 December 2020
Input VAT to be credited95,822,907.79114,251,111.76
Corporate income tax to be deducted5,264,487.905,981,268.15
Others498,534.36850,483.54
101,585,930.05121,082,863.45

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

10. Long-term equity investments

Investee31 December 2020Changes in current period30 June 2021Provision for impairment
Profit of loss under equity methodOther comprehensive income adjustmentOther changes in equityCash dividend declared by investee
Associates
Shenzhen Main Luck Pharmaceutical Inc. (“Main Luck Pharmaceutical”)(a)322,696,745.8734,596,706.61---357,293,452.48-
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. (“Shanghai Beiyi”)(b)11,190,188.07749,788.76---11,939,976.83-
Shanghai Liyi Pharmacy Co., Ltd. (“Shanghai Liyi”) (c)1,147,948.30----1,147,948.30-
Shanghai Renbei Pharmacy Co., Ltd. (“Shanghai Renbei”)(d)2,465,103.92----2,465,103.92-
Dongyuan Accord Pharmaceutical Chain Co., Ltd. (“Dongyuan Accord”)(e)-----396,638.32
Sinopharm Jienuo Medical Treatment Service Guangdong Co., Ltd. (“Guangdong Jienuo”)(f)5,225,570.12(749,864.47)---4,475,705.65-
Guangdong Jianhui Construction Investment Management Co., Ltd. (“Guangdong Jianhui”) (g)8,000,000.00----8,000,000.00-
Zhijun Suzhou(h)-----1,857,279.52
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. (“Sinopharm Zhijun”)(i)425,557,825.1128,056,303.69---453,614,128.80-
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. (“Zhijun Trade”) (i)10,408,675.1864,801.68---10,473,476.86-
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. (“Zhijun Pingshan”) (i)176,566,795.9025,603,869.60---202,170,665.50-
Shanghai Shyndec Pharmaceutical Co.,Ltd, (“Sinopharm Shyndec”) (i)1,323,760,775.5269,374,791.9464,854.90(460,868.29)(16,714,220.20)1,376,025,333.87-
2,287,019,627.99157,696,397.8164,854.90(460,868.29)(16,714,220.20)2,427,605,792.212,253,917.84

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

10. Long-term equity investments (Continued)

(a) On 4 July 1990, the Group jointly established Main Luck Pharmaceutical with MercianKabushiki Kaisha and Main Life Co., Ltd., subscribing 35.19%, 34.15% and 30.66% of shareholdings,respectively. According to the Articles of Association, the board of directors of Main LuckPharmaceutical consisted of six directors, of which two were appointed by the Group, accounting for

33.33% of voting rights. Therefore, the Group had significant influence over Main Luck Pharmaceutical,and thus, it was considered as an associate of the Group.

(b) On 26 July 1994, the Group jointly established Shanghai Beiyi with Shanghai Beiyi (Group) Co.,Ltd. and eight natural persons including Fuchun Zhu, with the share percentages being 26%, 26% and48%, respectively. According to the Articles of Association, the board of directors of Shanghai Beiyiconsisted of seven directors, of which two were appointed by the Group, accounting for 28.57% ofvoting rights. Therefore, the Group had significant influence over Shanghai Beiyi, and thus, it wasconsidered as an associate of the Group.

(c) On 25 November 2003, the Group jointly established Shanghai Liyi with Shanghai PudongDistrict Central Hospital and Shanghai Liyi, with the share percentages being 35%, 35% and 30%,respectively. According to the Articles of Association, the board of directors of Shanghai Liyi consistedof five directors, of which two were appointed by the Group, accounting for 40.00% of voting rights.Therefore, the Group had significant influence over Shanghai Liyi, and thus, it was considered as anassociate of the Group.

(d) On 5 March 2019, the Group acquired 30% shares of Shanghai Renbei. According to theArticles of Association, the board of directors of Shanghai Renbei was composed of three directors, oneof whom was appointed by the Group, accounting for 33.33% of voting rights. Therefore, the Group hassignificant influence over Shanghai Renbei, and thus, it is considered as an associate of the Group.

(e) In 2007, Dongyuan Accord, an associate of the Group, operated in poor conditions and itsfuture operation would be significantly uncertain, so the Group made a full provision for impairment ofthe long-term equity investment on it.

(f) On 23 February 2016, the Group jointly established Guangdong Jienuo with Sinopharm JienuoMedical Treatment Service Co., Ltd. and Guangzhou Jinluo Investment Development Co., Ltd., with theshare percentages being 29%, 51% and 20%, respectively. According to the Articles of Association, theboard of directors of Guangdong Jienuo was composed of five directors, one of whom was appointedby the Group, accounting for 20% of voting rights. Therefore, the Group has significant influence overGuangdong Jienuo, and thus, it is considered as an associate of the Group. On 25 July 2019, theGroup, together with the current shareholders, Sinopharm Jienuo Medical Treatment Service Co., Ltd.and Foshan Jiejianchengfeng Medical Equipment Co., Ltd., increased the capital of Guangdong Jienuoby 29%, 51% and 20% according to the shareholding ratio respectively, and the total amount of theincreased capital was RMB6 million.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

10. Long-term equity investments (Continued)

(g) On 23 November 2018, the Group jointly established Guangdong Jianhui with GuangdongConstruction Engineering Group Co., Ltd., Suixi People's Hospital and Guangdong Jianke ArchitecturalDesign Institute Co., Ltd., with the share percentages being 10%, 79.90%, 10% and 0.10%, respectively.The registered capital of the company was RMB20,000 thousand. On 22 March 2019, the Groupcompleted the investment of RMB2,000 thousand. According to the Articles of Association, the board ofdirectors of Guangdong Jianhui was composed of five directors, one of whom was appointed by theGroup, accounting for 20% of voting rights. Therefore, the Group has significant influence overGuangdong Jianhui, and thus, it is considered as an associate of the Group. On 30 March 2020, theGroup made an additional investment of RMB6 million in Guangdong Jianhui according to theshareholding ratio.

(h) The Group disposed of its 67% equity interest of Zhijun Suzhou in April 2016. After the disposal,the Group held a 33% equity interest of Zhijun Suzhou. According to the Articles of Association, theboard of directors of Zhijun Suzhou was composed of five directors, one of whom was appointed by theGroup, accounting for 20% of voting rights. As a result, the Group has significant influence over ZhijunSuzhou, and thus, it is considered as an associate of the Group. In 2019, on account ofmismanagement, there was significant uncertainty in the future operation of the Group's affiliatedenterprise, Zhijun Suzhou. Thus, the Group made full provision for impairment of the long-term equityinvestment in Zhijun Suzhou.

(i) The Group subscribed 15.56% of new issued shares of Sinopharm Shyndec, a related party, bytransferring the productive assets in Pingshan base and its 51% equity interest of three pharmaceuticalcompanies (Sinopharm Zhijun, Zhijun Trade, Zhijun Pingshan) of the Group in 2016, respectively. Afterthe completion of the reorganization, Shyndec Pharma holds a 51% equity interest of each of the threepharmaceutical companies, and the Group holds a 49% equity interest of each of the threepharmaceutical companies, and they have significant influence over the three pharmaceuticalcompanies.

At the same time, after the completion of the reorganization, the Group holds a 15.56% equity interestof Sinopharm Shyndec. Since Sinopharm Shyndec acquired the shares of subsidiaries with share-based payment in previous years, as at 30 June 2021, the Group held a 16.28% equity interest ofSinopharm Shyndec. Sinopharm Shyndec set up a board of directors that was responsible for theshareholders' meeting, with a total of nine members, among which, one was appointed by the Group.Each director shall represent one vote for resolutions of the board, accounting for 11.11% of the votingrights. The Group has significant influence over Sinopharm Shyndec. The above three pharmaceuticalcompanies and Sinopharm Shyndec are considered as associates of the Group.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

11. Other equity instrument investment

30 June 202131 December 2020
Sinopharm Health Online Co., Ltd.67,056,227.4067,056,227.40
Sinopharm Guoda Hubei Co., Ltd.18,279,788.5918,279,788.59
Shanghai Guoda Shuguang Pharmacy Co., Ltd.8,242,076.028,242,076.02
Shanghai Guoren Pharmacy Co., Ltd.5,493,260.455,493,260.45
Hunan Zhongbai Pharmaceutical Investment Co., Ltd.416,987.82416,987.82
99,488,340.2899,488,340.28

单位:元

Recognized dividend incomeAccumulated profitsAccumulated LossAmount transferred from other comprehensive income to retained earningsReasons designated to be measured at fair value with changes included in other comprehensive incomeReasons for transfer of other comprehensive income to retained earnings
Sinopharm Health Online Co., Ltd.-55,056,227.40--Non tradable equity instruments
Sinopharm Guoda Hubei Co., Ltd.2,280,159.5017,279,788.59--Non tradable equity instruments
Shanghai Guoda Shuguang Pharmacy Co., Ltd.50,000.007,971,316.02--Non tradable equity instruments
Shanghai Guoren Pharmacy Co., Ltd.-5,393,260.45--Non tradable equity instruments
Hunan Zhongbai Pharmaceutical Investment Co., Ltd.-101,987.82--Non tradable equity instruments
2,330,159.5085,802,580.28--

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

12. Other non-current financial assets

30 June 202131 December 2020
Financial asset measured at fair value through current profit or loss117,974,908.51120,972,350.24
On June 30, 2021, the balance of other non-current financial assets was the fair value of the share of Sinopharm CICC Medical Industry Fund (referred to as “the Industry Fund”) subscribed by the Company. The Group's 21st meeting of the 7th Board of Directors held on January 6, 2017 reviewed and approved the proposal of the Company to subscribe for the industry fund and related party transactions. As a limited partner of the Industry Fund, the Company plans to invest RMB200 million to subscribe for the share of the Industrial Fund, which will be paid in three phases.The Industrial Fund obtained the relevant licenses as well as approvals and started operating in 2018. As of December 31, 2019, the Company had paid a total of RMB 140 million.In June 2020,The Company received the withdraw fund of this project’s principal of RMB19,027,649.76 from Qirui Port Investment Center LP of Ningbo Meishan Bonded Port. In January 2021,The Company received the withdraw fund of this project’s principal of RMB2,997,441.73 from Qirui Port Investment Center LP of Ningbo Meishan Bonded Port. Since the cash flow obtained by the Company from the investment of the Industry Fund includes both the contractual cash flow generated by the underlying assets during the investment period and the cash flow of the disposal of the underlying assets, the contractual cash flow that does not satisfy the financial assets generated on a specific date is only the payment of interest on the basis of the outstanding principal amount, therefore, the Company classifies the investment of the Industry Fund into financial assets measured at fair value through profit or loss and presented as other non-current financial assets.

.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

13. Investment properties

Subsequent measurement under the cost model:

Buildings and constructionsLand use rightTotal
Original cost
Opening balance225,645,845.7820,988,818.44246,634,664.22
Increase amount in current period1,137,337.42-1,137,337.42
Purchase---
Transfer from inventories\fixed assets\construction in progress1,137,337.42-1,137,337.42
Decrease amount in current period(3,881,175.93)(841,319.61)(4,722,495.54)
Transfer to intangible assets-(841,319.61)(841,319.61)
Transfer to fixed assets(3,881,175.93)-(3,881,175.93)
Closing balance222,902,007.2720,147,498.83243,049,506.10
Accumulated depreciation and amortization
Opening balance(109,976,379.20)7,913,905.08(117,890,284.28)
Increase amount in current period(3,206,808.84)(88,519.70)(3,295,328.54)
Provision(2,810,737.39)(88,519.70)(2,899,257.09)
Transfer from fixed assets(396,071.45)-(396,071.45)
Decrease amount in current period2,589,746.83235,490.602,825,237.43
Transfer to intangible assets-235,490.60235,490.60
Transfer to fixed assets2,589,746.83-2,589,746.83
Closing balance(110,593,441.21)7,766,934.18(118,360,375.39)
Provision for impairment
Opening balance and Closing balance(1,300,000.00)-(1,300,000.00)
Carrying amount
At end of the period111,008,566.0612,380,564.65123,389,130.71
At beginning of the period114,369,466.5813,074,913.36127,444,379.94

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

14. Fixed assets

30 June 202131 December 2020
Fixed assets840,386,519.64854,191,083.27
(1)Condition of fixed assets
Buildings and constructionsMachinery and equipmentMotor vehiclesOffice equipmentsElectronic equipmentsTotal
Original cost
Opening balance704,639,396.43305,450,662.6496,751,717.47365,642,213.00121,068,984.001,593,552,973.54
Increase amount in current period4,138,624.7014,781,603.5010,636,685.3316,626,307.1725,827,199.0472,010,419.74
Purchase257,448.7712,411,677.509,041,665.5514,689,654.3523,670,703.5560,071,149.72
Transfer from construction in progress-2,194,159.00---2,194,159.00
Transfer from Investment properties3,881,175.93----3,881,175.93
Business combinations-175,767.001,595,019.781,936,652.822,156,495.495,863,935.09
Decrease amount in current period(1,371,000.42)(568,600.21)(2,932,878.73)(2,953,830.43)(4,389,640.59)(12,215,950.38)
Transfer to investment properties(1,137,337.42)----(1,137,337.42)
Disposal or retirement(233,663.00)(568,600.21)(2,932,878.73)(2,953,830.43)(4,389,640.59)(11,078,612.96)
Closing balance707,407,020.71319,663,665.93104,455,524.07379,314,689.74142,506,542.451,653,347,442.90

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

14. Fixed assets (Continued)

(1) Condition of fixed assets (Continued)
BuildingsMachinery and equipmentMotor vehiclesOffice equipmentsElectronic equipmentsTotal
Accumulated depreciation
Opening balance(238,423,991.05)(148,242,155.24)(58,335,271.31)(216,568,139.60)(77,792,333.07)(739,361,890.27)
Increase amount in current period(16,424,080.50)(26,413,396.62)(4,758,056.66)(16,722,112.14)(16,673,703.93)(80,991,349.85)
Provision(13,834,333.67)(26,413,396.62)(4,758,056.66)(16,722,112.14)(16,673,703.93)(78,401,603.02)
Transfer from Investment properties(2,589,746.83)----(2,589,746.83)
Decrease amount in current period418,887.13427,677.742,364,303.931,555,286.722,626,161.347,392,316.86
Disposal or retirement22,815.68427,677.742,364,303.931,555,286.722,626,161.346,996,245.41
Transfer to investment properties396,071.45----396,071.45
Closing balance(254,429,184.42)(174,227,874.12)(60,729,024.04)(231,734,965.02)(91,839,875.66)(812,960,923.26
Carrying amount
At end of period452,977,836.29145,435,791.8143,726,500.03147,579,724.7250,666,666.79840,386,519.64
At beginning of the period466,215,405.38157,208,507.4038,416,446.16149,074,073.4043,276,650.93854,191,083.27

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

14. Fixed assets (Continued)

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

Book valueReason for not obtaining certification of title
Buildings and constructions25,199,513.22As at 30 June 2021, the Company has not yet obtained the certification of title for No.13 Jingxing North Street, Tiexi District, Shenyang. The transferor, the State-owned Assets Supervision and Administration Commission, was still processing the case and had provided a relevant notification.
Buildings and constructions40,072,822.06As at 30 June 2021, the Company has not yet obtained the certification of title for No.53 Nanshizhong Street, Tiexi District, Shenyang. The transferor, the State-owned Assets Supervision and Administration Commission, was still processing the case and had provided a relevant notification.
Buildings and constructions536,550.04As at 30 June 2021, the construction area is greater than the approved area, the Group can not handle the housing property right certificate located at 31 Yihe Street, Kaiyuan in Tieling City, Kaiyuan City Planning Bureau had provided a construction project completion planning acceptance certificate.
Buildings and constructions119,844.81On 30 June 2021, due to the need for self-use storage, the Group has built its own simple warehouse located at 2 Baiyu Road, Sujiatun District, Shenyang. The Group is unable to obtain a home title certificate for the property there. .

15. Construction in progress

30 June 202131 December 2020
Construction in progress64,636,735.9346,631,190.23
(1)Condition of construction in progress
30 June 202131 December 2020
Carrying balanceImpairmentCarrying amountCarrying balanceImpairmentCarrying amount
Warehouse improvement project6,015,123.20-6,015,123.202,357,739.84-2,357,739.84
New office building project2,449,885.09-2,449,885.092,654,403.71-2,654,403.71
Supply chain extension project14,289,469.53-14,289,469.5312,248,729.81-12,248,729.81
Software project28,344,537.25-28,344,537.2519,443,779.83-19,443,779.83
Other construction projects13,537,720.86-13,537,720.869,926,537.04-9,926,537.04
64,636,735.93-64,636,735.9346,631,190.23-46,631,190.23

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

15. Construction in progress (Continued)

(2)Changes of significant construction in progress in current period
Project nameBudgetOpening balanceIncreaseDecreaseClosing balanceProportion of investment to budgetSource of funds
Transferred to fixed assetsTransferred to Long-term prepaid expenses
Warehouse improvement project13,241,063.702,357,739.849,311,593.332,194,159.003,460,050.976,015,123.2093.08%Own capital
New office building Project3,600,282.072,654,403.71--204,518.622,449,885.0910.54%Own capital
Supply chain extension project24,311,152.0012,248,729.812,040,739.72--14,289,469.5358.22%Own capital
Software project113,000,000.0019,443,779.838,900,757.42--28,344,537.2525.08%Own capital
Other construction projects225,408,891.749,926,537.0420,559,244.54-16,948,060.7213,537,720.8613.17%Own capital
379,561,389.5146,631,190.2340,812,335.012,194,159.0020,612,630.3164,636,735.93

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

16. Right-of-use assets

Buildings and constructionsMachinery, transport and office equipmentOthersTotal
Original cost
Opening balance3,642,726,568.576,617,052.552,418,809.353,651,762,430.47
Increase amount in current period722,812,718.72255,241.57-723,067,960.29
Incl: Business combinations not under common control41,709,665.65--41,709,665.65
Decrease amount in current period(269,712,235.31)(1,389,315.12)-(271,101,550.43)
Disposal(269,712,235.31)(1,389,315.12)-(271,101,550.43)
Closing balance4,095,827,051.985,482,979.002,418,809.354,103,728,840.33
Accumulated depreciation
Opening balance1,289,526,014.835,092,290.96191,731.691,294,810,037.48
Increase amount in current period493,418,631.21166,716.1647,473.92493,632,821.29
Provision493,418,631.21166,716.1647,473.92493,632,821.29
Decrease amount in current period(207,845,002.04)(743,191.11)-(208,588,193.15)
Disposal(207,845,002.04)(743,191.11)-(208,588,193.15)
Closing balance1,575,099,644.004,515,816.01239,205.611,579,854,665.62
Carrying amount
At end of the period2,520,727,407.98967,162.992,179,603.742,523,874,174.71
At beginning of the period2,353,200,553.741,524,761.592,227,077.662,356,952,392.99

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

17. Intangible assets

Land use rightsSoftwareTrademarks and brands use rightsFavorable leasesDistribution networkFranchiseTotal
Original cost
Opening balance88,694,377.76198,298,230.20282,036,925.12127,486,000.00283,573,678.24710,000.00980,799,211.32
Increase amount in current period841,319.616,604,973.4640,440,000.00---47,886,293.07
Purchases-6,383,557.95----6,383,557.95
Business combinations not under common control-221,415.5140,440,000.00---40,661,415.51
Transfer from investment properties841,319.61-----841,319.61
-
Closing balance89,535,697.37204,903,203.66322,476,925.12127,486,000.00283,573,678.24710,000.001,028,685,504.39
-
Accumulated amortization
Opening balance(30,664,860.97)(111,160,831.01)(5,060,783.81)(37,878,526.79)(60,979,029.34)(710,000.00)(246,454,031.92)
Increase amount in current period(1,129,159.45)(11,528,055.72)(6,550,848.51)(3,542,977.94)(7,987,906.67)-(30,738,948.29)
Provision(893,668.85)(11,528,055.72)(6,550,848.51)(3,542,977.94)(7,987,906.67)-(30,503,457.69)
Transfer from investment properties(235,490.60)-----(235,490.60)
Closing balance(31,794,020.42)(122,688,886.73)(11,611,632.32)(41,421,504.73)(68,966,936.01)(710,000.00)(277,192,980.21)

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

17. Intangible assets (Continued)

Land use rightsSoftwareTrademarks and brands use rightsFavorable leasesDistribution networkFranchiseTotal
Provision for impairment
Opening balance-------
Closing balance-------
Carrying amount
At end of the year57,741,676.9582,214,316.93310,865,292.8086,064,495.27214,606,742.23-751,492,524.18
-
At beginning of the year58,029,516.7987,137,399.19276,976,141.3189,607,473.21222,594,648.90-734,345,179.40

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

18. Goodwill

(1) Original Book Value of goodwill

Names of the investee or matters of forming goodwillOpening balanceIncrease during this periodDecrease during this periodClosing balance
Merger of holdings not under common controlBusiness combinations not under common control
Sinopharm Holding (Jiangmen) Medical Co., Ltd. (“Sinopharm Jiangmen”)27,392,317.73---27,392,317.73
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. (“Sinopharm Yanfeng”)16,868,644.87---16,868,644.87
Sinopharm Holding Zhaoqing Co., Ltd. (“Sinopharm Zhaoqing”)2,594,341.53---2,594,341.53
Sinopharm Holding Shaoguan Co., Ltd. (“Sinopharm Shaoguan”)1,686,496.80---1,686,496.80
Sinopharm Holding Meizhou Co., Ltd. (“Sinopharm Meizhou”)1,610,819.66---1,610,819.66
Sinopharm Holding Huizhou Co., Ltd. (“Sinopharm Huizhou”)923,184.67---923,184.67
Sinopharm Holding Zhanjiang Co., Ltd. (“Sinopharm Zhanjiang”)282,135.55---282,135.55
Sinopharm Holding Dongguan Co., Ltd. (“Sinopharm Dongguan”)1,499.02---1,499.02
South Pharma & Trade2,755,680.62---2,755,680.62
Foshan Nanhai88,877,850.51---88,877,850.51
Sinopharm Holding Zhuhai Co., Ltd.(“Sinopharm Zhuhai”)6,772,561.476,772,561.47
Sinopharm Holding Maoming Co., Ltd.(“Sinopharm Maoming”)66,417.07---66,417.07
Sinopharm Holding Guoda ForMe Medicines (Shanghai) Co., Ltd. (“ForMe Medicines’’)3,033,547.53---3,033,547.53
Sinopharm Hebei Lerentang Pharmacy Chain Store Co., Ltd.(“Hebei Lerentang”)29,482,149.57---29,482,149.57
Xiaoyi Guoda Wanmin Baicaotang Pharmacy Chain Store Co., Ltd. (“Xiaoyi Wanmin”)15,866,680.00---15,866,680.00
Shanxi Guoda Wanmin Pharmacy Chain Store Co., Ltd. (“Shanxi Guoda Wanmin”)65,025,000.00---65,025,000.00
Sinopharm Holding Guoda ForMe Pharmacy Chain Store Co., Ltd. (“ForMe Pharmacy Chain Store”)19,405,450.23---19,405,450.23
Sinopharm Holding Guoda Pharmacy Chain Store Shanghai Co., Ltd.(“Shanghai Guoda”)5,028,638.00---5,028,638.00
Sinopharm Holding Guoda Yangzhou Dadesheng Pharmacy Chain Store Co., Ltd.(“Yangzhou Guoda”)7,979,000.00---7,979,000.00
Zhejiang Guoda Pharmacy Co., Ltd.(“Zhejiang Guoda”)3,045,183.85---3,045,183.85
Sinopharm Holding Guoda Nanjing Pharmacy Chain Store Co., Ltd.(“Nanjing Guoda”)11,598,341.12---11,598,341.12
Fujian Guoda Pharmacy Chain Store Co., Ltd.(“Fujian Chain”)1,567,250.76---1,567,250.76
Sinopharm Holding Guoda Shandong Pharmacy Chain Store Co., Ltd.(“Shandong Guoda”)29,110,409.46---29,110,409.46
Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co., Ltd. (“Shenyang Guoda”)41,047,958.08---41,047,958.08
Liyang Guoda People Pharmacy Chain Store Co., Ltd.(“Liyang Guoda”)107,275,095.74---107,275,095.74

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

18. Goodwill (Continued)

(1) Original Book Value of goodwill (Continued)

Names of the investee or matters of forming goodwillOpening balanceIncrease during this periodDecrease during this periodClosing balance
Merger of holdings not under common controlBusiness combinations not under common control
Sinopharm Holding Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd.(“Hunan Guoda”)41,165,574.64---41,165,574.64
Quanzhou Guoda Pharmacy Chain Store Co., Ltd. (“Quanzhou Guoda”)41,298,622.59---41,298,622.59
Sinopharm Holding Guoda Henan Pharmacy Chain Store Co., Ltd.(“Henan Guoda”)22,666,179.77---22,666,179.77
Guoda Neimenggu70,485,777.00---70,485,777.00
Sinopharm Guoda Pharmacy Jiangmen Chain Co., Ltd.(“Jiangmen Guoda”)77,350,000.00---77,350,000.00
Sinopharm Holding Guoda Shanxi Yiyuan Pharmacy Chain Store Co., Ltd.(“Shanxi Guoda Yiyuan”)9,080,100.00---9,080,100.00
Shenzhen Guanganli Pharmacy Chain Store Co., Ltd. ‘s Store Acquisition13,420,000.00---13,420,000.00
Beijing Golden Elephant Pharmacy Medicine Chain Company Limited(“Beijing Golden Elephant”)64,140,124.36---64,140,124.36
Guoda Taishan26,826,120.55---26,826,120.55
Taiyuan Tongxinli Pharmacy Co., Ltd. (“Taiyuan Tongxinli”)2,818,647.85---2,818,647.85
Sinopharm Holding Guoda Yongxingtang Pharmacy Chain Store (Chaoyang) Co., Ltd (“Chaoyang Yongxingtang”)25,973,399.17---25,973,399.17
Neimenggu Tongren Big Pharmacy Chain Co., Ltd. store acquisition.13,494,000.00---13,494,000.00
Guoda Pu’er71,064,684.79---71,064,684.79
Shanghai Pudong New Area Pharmaceuticals Co., Ltd.(“Pudong Pharmaceuticals”)65,978,042.6165,978,042.61
Shanghai Dingqun Enterprise Management Consulting Co., Ltd.520,836,246.17---520,836,246.17
Cheng Dafang Pharmaceutical Group Co., Ltd1,182,443,676.11---1,182,443,676.11
Liaoning Xianzhen Pharmaceutical Chain Co., Ltd.34,037,431.66---34,037,431.66
Yunnan Guoda Disheng pharmacy chain Co., Ltd (“Disheng Chain”)(Note 1)-152,157,935.52--152,157,935.52
China Pharmaceutical Holdings Nantong Puji Pharmacy Chain Co., Ltd. store acquisition (Note 2)--11,498,100.00-11,498,100.00
Shanxi Huimin Kangwei Big Pharmacy Chain Co., Ltd. store acquisition (Note 3)--20,970,000.00-20,970,000.00
2,772,375,281.11152,157,935.5232,468,100.002,957,001,316.63

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

18. Goodwill (Continued)

(2) Provision of impairment loss

Names of the investee or matters of forming goodwillOpening balanceIncreaseDecreaseClosing balance
Guoda Quanzhou25,000,000.00--25,000,000.00

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

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

The carrying value of goodwill is apportioned according to the proportion of each asset group or combination of asset groups atfair value of the total amount of goodwill at fair value. It is shown as follows:

30 June 202131 December 2020
Pharmaceutical distribution152,865,497.03152,865,497.03
Pharmaceutical retail2,779,135,819.602,594,509,784.08
2,932,001,316.632,747,375,281.11

The recoverable amount of asset group and combination of asset groups is calculated based on the five-year period budgetapproved by the management while using the cash flow forecast method. The cash flows beyond the five-year period areextrapolated using the inflation rate.

Key assumptions were used for the calculation of the present values of future cash flow projections of asset group andcombination of asset groups consisting of pharmaceutical distribution and pharmaceutical retail as of 30 June 2021. Keyassumptions made by management on projections of cash flows used in impairment testing are described as follows:

Pharmaceutical distributionPharmaceutical retail
Revenue growth rate in the budget period1.79%-16.00%2.67%-16.43%
Sustainable growth rate3.00%3.00%
Gross margin3.56%-6.40%12.40%-50.58%
Discount rate12.40%-15.00%13.00%-15.00%

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

18. Goodwill (Continued)

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

Impact of goodwill impairment test

Other declarations

Note 1:The Group acquired a 70% stake in Yunnan Guoda Disheng Pharmaceutical Chain Co., Ltd. inMarch 2021, and after the acquisition, it formed goodwill of RMB152,157,935.52, the calculationprocess of which is detailed in Notes VI-1.

Note 2:The Group acquired 15 direct stores of Nantong Puji Pharmacy Chain Co., Ltd. in March 2021,and after the acquisition, it formed goodwill of RMB11,498,100.00, the calculation process of which isdetailed in Notes VI-1.

Note 3:The Group acquired 32 direct stores of Shanxi Huimin Kangwei Pharmaceutical Chain Co., Ltd.in February 2021, and after the acquisition was completed, it formed goodwill of RMB20,970,000.00,the calculation process of which is detailed in Notes VI-1

19. Long-term prepaid expenses

Opening balanceAdditionsAmortizationOther decreaseClosing balance
Fixed asset improvement expenditure336,895,157.1373,939,831.4563,049,121.271,789,848.54345,996,018.77
Acquisition expenditure to obtain the right to operate95,802,321.9570,780,659.8610,579,442.60-156,003,539.21
Others25,007,797.011,655,150.465,469,516.47-21,193,431.00
457,705,276.09146,375,641.7779,098,080.341,789,848.54523,192,988.98

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

20. Deferred tax assets/liabilities

(1)Deferred tax assets before offseting
30 June 202131 December 2020
Deductible temporary differencesDeferred tax assetsDeductible temporary differencesDeferred tax assets
Provision for impairment of assets196,487,679.4346,536,628.81170,577,875.5640,697,280.41
Deductible tax loss32,245,677.798,061,419.4630,798,485.937,699,621.49
Impact of lease criteria109,849,225.1227,234,338.9393,685,083.0922,420,179.23
Accrued expenses108,024,144.5725,409,713.77113,445,282.3626,095,709.73
Member bonus points61,049,011.9914,722,901.7559,179,220.9814,575,814.61
Accrued payroll45,855,424.2210,861,893.4447,280,390.0811,210,512.95
Others20,119,732.624,832,303.9721,096,550.784,641,850.41
573,630,895.74137,659,200.13536,062,888.78127,340,968.83
(2)Deferred tax liabilities before offseting
30 June 202131 December 2020
Taxable temporary differencesDeferred tax liabilitiesTaxable temporary differencesDeferred tax liabilities
Fair value adjustment for business combination not involving enterprises under common control716,667,762.07179,197,391.85713,703,864.68178,425,966.17
Changes in fair value of financial assets through other comprehensive income85,802,580.2821,450,645.0785,802,580.2821,450,645.07
One-time deduction for fixed assets under five million yuan123,264,042.4330,816,010.64126,722,799.3131,679,099.86
Division restructuring assets to assess value-added differences16,029,854.964,007,463.7417,160,546.404,290,136.60
Others28,333,035.976,090,083.1725,205,927.865,297,761.98
970,097,275.71241,561,594.47968,595,718.53241,143,609.68

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

20. Deferred tax assets/liabilities (Continued)

(3)Deferred tax assets and liabilities are presented after being offset against each other:
30 June 202131 December 2020-
Deferred tax assets/liabilities -NetTemporary differences after set-offDeferred tax assets/liabilities - NetTemporary differences after set-off
Deferred tax assets41,063,450.8096,595,749.3335,222,201.0292,118,767.81
Deferred tax liabilities41,063,450.80200,498,143.6735,222,201.02205,921,408.66
(4)The deductible temporary differences and deductible losses that were not recognized as deferred tax assets are presented as follows:
30 June 202131 December 2020
Deductible temporary differences11,920,797.799,435,555.39
Deductible loss61,373,403.2561,373,403.25
73,294,201.0470,808,958.64
(5)The aforesaid unrecognized deductible losses will due:
30 June 202131 December 2020
20212,563,056.082,563,056.08
20227,261,117.977,261,117.97
202311,977,477.5611,977,477.56
202422,579,176.4422,579,176.44
202516,992,575.2016,992,575.20
61,373,403.2561,373,403.25

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

21. Other non-current assets

30 June 202131 December 2020
Carrying balanceImpairmentCarrying amountCarrying balanceImpairmentCarrying amount
Physical assets reserve specifically authorized331,870,456.97-331,870,456.97260,590,932.98-260,590,932.98
Security deposit100,326,250.00(70,000.00)100,256,250.00114,186,431.57-114,186,431.57
Prepayment for project and equipment40,757,628.00-40,757,628.0024,809,091.30-24,809,091.30
Contract assets8,238,308.92(120,404.87)8,117,904.057,081,263.45(82,188.73)6,999,074.72
Other3,257,615.30-3,257,615.301,611,992.27-1,611,992.27
484,450,259.19(190,404.87)484,259,854.32408,279,711.57(82,188.73)408,197,522.84

22. Short-term borrowings

30 June 202131 December 2020
Credit borrowings4,632,933,904.391,612,187,020.12
At 30 June 2021, the annual interest rate for the above borrowings was 2.28%( (31 December 2020:3.49%)). At 30 June 2021 and 31 December 2020, there were no short-term borrowings of the Group that were overdue but not yet paid.

23. Notes payable

30 June 202131 December 2020
Commercial acceptance bills93,061,594.9456,360,197.69
Bank acceptance bills6,687,363,494.237,463,805,077.00
6,780,425,089.177,520,165,274.69

At 30 June 2021, the total amount of notes payable that were due but not yet paid was nil (31 December 2020:nil).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

24. Accounts payable

30 June 202131 December 2020
Payment for goods9,642,504,836.507,697,451,142.50

At 30 June 2021, significant accounts payable aged over one year was analyzed below:

AmountReason
Payment for goods429,971,551.39Has not been settled

At 30 June 2021, accounts payable aged over one year, mainly the unsettled payment for goods, was RMB429,971,551.39 (31December 2020: RMB398,772,102.49).

25. Receipts in advance

30 June 202131 December 2020
Advanced lease payment14,868,097.9712,352,466.64

26. Contract liabilities

30 June 202131 December 2020
Contract liabilities316,827,151.78368,600,357.14

The ending balance of contract liabilities is the advance payments received by the Group. After the Group receives the advancepayments by the customer for the sales of goods, it will generally perform the performance obligation and recognise the revenuewithin about 6 months.

27. Employee benefits payable

31 December 2020IncreaseDecrease30 June 2021
Short-term employee benefits (1)347,602,975.861,442,005,710.811,554,869,193.60234,739,493.07
Post-employment benefits (defined contribution plan) (2)9,216,204.49135,235,733.49137,243,137.067,208,800.92
Termination benefits392,866.75560,719.50695,897.15257,689.10
357,212,047.101,577,802,163.801,692,808,227.81242,205,983.09

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

27. Employee benefits payable(Continued)

(1)Short-term employee benefits
31 December 2020IncreaseDecrease30 June 2021
Salaries, bonuses, allowances and grants330,233,181.611,259,235,407.051,376,555,529.89212,913,058.77
Staff welfare1,469,381.0732,807,596.6733,096,433.741,180,544.00
Social security contribution2,194,328.5274,031,911.0874,006,336.502,219,903.10
Incl: Medical insurance1,531,693.9568,900,758.2568,513,264.141,919,188.06
Work injury insurance84,285.352,846,079.322,857,214.9773,149.70
Maternity insurance578,349.222,285,073.512,635,857.39227,565.34
Housing funds1,650,393.1952,281,928.0652,197,609.561,734,711.69
Labor union funds and employee education funds11,183,869.7022,386,728.9220,702,330.3412,868,268.28
Other short-term benefits871,821.771,262,139.03(1,689,046.43)3,823,007.23
347,602,975.861,442,005,710.811,554,869,193.60234,739,493.07
(2)Defined contribution plan
31 December 2020IncreaseDecrease30 June 2021
Basic pension insurance3,593,380.27128,854,477.21127,826,836.984,621,020.50
Unemployment insurance106,718.123,965,369.333,905,028.02167,059.43
Contribution to pension fund5,516,106.102,415,886.955,511,272.062,420,720.99
9,216,204.49135,235,733.49137,243,137.067,208,800.92
Note:For the half year of 2021, the Group provided other termination benefits for severing labor relations of RMB406,814.34. For the half year of 2020, the Group provided other termination benefits for severing labor relations of RMB155,676.56.Other termination benefits that were reversed for there was no need to pay for severing labor relations were nil.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

28. Tax payable

30 June 202131 December 2020
Value-added tax75,280,000.02102,586,862.95
Corporate Income taxes182,236,074.48173,016,908.47
Individual income tax7,083,305.636,790,402.61
City maintenance and construction surtax6,333,456.106,993,947.17
Stamp duty7,697,463.218,243,076.57
Water conservancy fund5,572,222.755,586,926.64
Educational surcharge5,131,997.405,254,608.43
Property tax1,300,695.62664,697.78
Land use tax148,696.0454,028.60
Others7,417,676.887,675,689.94
298,201,588.13316,867,149.16

29. Other payables

30 June 202131 December 2020
Interest payable16,255,309.7535,572,620.82
Dividend payable7,911,748.366,389,320.96
Other payables1,507,731,959.761,557,204,939.36
1,531,899,017.871,599,166,881.14
(1) Interest payable
30 June 202131 December 2020
Factoring interest on accounts receivable16,255,309.7535,572,620.82

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

29. Other payables(Continued)

(2) Dividend payable
30 June 202131 December 2020
Shanghai Fosun Pharmaceutical (Group) Co., Ltd.4,835,511.584,835,511.58
Dividend payable to Zhang Zhenfang1,389,639.311,389,639.31
Meiluo Pharmaceutical Co., Ltd.164,170.07164,170.07
Longfeng Du526,506.14-
Dong Wang336,202.71-
Haiming Liu177,616.53-
Guozhu Tang69,777.92-
Xiancheng Liu88,808.27-
Shaojun Yan44,404.13-
Haiyu Liu38,060.69-
Qinghua Wang126,868.95-
Zhancheng Liang114,182.06-
7,911,748.366,389,320.96

At 30 June 2021 and 31 December 2020, the Group had no significant dividend aged more than one year and not yet paid.

(3) Other payables
30 June 202131 December 2020
Deposit484,838,817.90472,800,624.92
Payables for factoring programs325,153,045.22576,523,284.81
Accrued expenses210,959,892.77213,950,722.34
Equity payables207,199,828.2538,702,372.01
Payables for rentals95,120,391.9168,417,303.16
Payables for construction in progress and equipment44,723,287.8940,898,589.59
Payables to individuals26,098,245.6025,869,320.67
Collection of others20,055,565.0519,119,286.19
Payables for land transfer payments12,597,500.0012,597,500.00
Temporary loans11,198,533.0011,017,981.51
Payables to related parties5,138,862.345,093,263.36
Others64,647,989.8372,214,690.80
1,507,731,959.761,557,204,939.36

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

29. Other payables(Continued)

At 30 June 2021, significant other payables over 1 year are:

Amount payableReason for outstanding
Equity payable36,000,000.00Payment conditions not met
Deposits37,744,837.63Payment conditions not met
Accrued expenses6,223,452.82Payment conditions not met
Payables for land transfer payments12,597,500.00Payment conditions not met
92,565,790.45

30. Non-current liabilities due within 1 year

30 June 202131 December 2020
Lease liabilities due within 1 year798,170,618.10748,732,059.89

31. Other current liabilities

30 June 202131 December 2020
Pre-collected VAT20,997,225.6124,142,106.09
Output VAT to be recognized1,435,222.36644,972.46
22,432,447.9724,787,078.55

32. Long-term borrowings

31 December 202131 December 2020
Credit loan30,000,000.00-
Entrusted loans31,633,794.4431,637,173.89-
61,633,794.4431,637,173.89
At 30 June 2021, the total amount of remaining entrusted loans was RMB31,633,794.44 (31 December 2020: RMB31,637,173.89)., which was the loan from Sinopharm Group Finance Co., Ltd entrusted by CNPGC to the group, the weighted average annual interest rate of the entrusted loans was 3.34%(31 December 2020: 3.41%).
At 30 June 2021, the balance of credit borrowings was RMB30,000,000.00 (31 December 2020: None). The annual interest rate on this credit loan is 4.05% (31 December 2020 : None).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

33. Lease liabilities

30 June 202131 December 2020
Lease payment2,159,301,970.902,051,786,223.79
Less: Lease liabilities due within 1 year798,170,618.10748,732,059.89
1,361,131,352.801,303,054,163.90

34. Long-term payables

30 June 202131 December 2020
Payables for specific projects6,938,189.006,938,189.00

Payables for specific projects:

31 December 2020IncreaseDecrease30 June 2021Reasons of derred income
Special funds granted by government (1)800,000.00--800,000.00Funds granted by government
Medical reserve funds (2)6,138,189.00--6,138,189.00
6,938,189.00--6,938,189.00

(1) The specific payables are research funds allocated by government departments and are accounted for the specific payableaccount at the time of allocation.

(2)The medical reserve funds were allocated by the Liaoning Province Department of Finance to Liaoning Chengda Fangyuanpharmaceutical chain Co., Ltd which was incorporated into the consolidation in 2020.

35. Long-term employee benefits payable

30 June 202131 December 2020
Early retirement benefits payable1,262,000.001,319,000.00

36. Provisions

30 June 202131 December 2020
Pending litigation or arbitration (1)68,663,166.7968,808,166.79
(1) Four companies with Zhang Peng as the actual controller signed several contracts with Shenyang Branch of Bank of Dalian Co., Ltd. (“the Bank”) in previous years, which agreed that the above companies would transfer their creditor's rights of accounts receivable of Liaoning Chengda Fangyuan Pharmaceutical Co., Ltd. to the Bank, and the Bank would conduct factoring business for the above companies in accordance with the agreement. As the four companies failed to pay the relevant amount to the Bank, the Bank filed a lawsuit to the People’s Court, requesting Liaoning Chengda Fangyuan Pharmaceutical Co., Ltd. and its parent company, CDFY, to assume the corresponding legal responsibilities. Liaoning Chengda Fangyuan Pharmaceutical Co., Ltd. confirmed its estimated liabilities based on the progress of the case before being included in the scope of consolidation of Sinopharm Group Accord Pharmaceutical Co., Ltd.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

37. Deferred income

Opening balanceIncreaseDecreaseClosing balanceReasons of deferred income
Government grants89,610,262.617,520,212.935,962,539.8491,167,935.70Government grant
VAT Additional deduction233,320.76835,816.61921,739.18147,398.19VAT additional deduction
89,843,583.378,356,029.546,884,279.0291,315,333.89
As at 30 June 2021, deferred income from government grants are as follows:
Government grants programOpening balanceAdditionAmount included in non-operating incomeAmount included in other incomeOffset cost amount in current periodClosing balanceAsset related/ income related
Resettlement Compensation (Note)70,158,624.05-1,349,204.28--68,809,419.77Asset related
Funds for the construction of a modern supply chain system in the central circulation field in 20184,353,019.547,450,000.00-2,143,819.53-9,659,200.01-Asset related
Logistics project Nanning Economic Development Zone construction support fund4,846,565.87--93,203.22-4,753,362.65Asset related
Guangzhou logistics standardization pilot project1,722,518.87--273,123.42-1,449,395.45Asset related
Shenyang Tiexi Government housing subsidies1,325,001.32--40,561.32-1,284,440.00Asset related
Other projects7,204,532.9670,212.93-2,037,129.4525,498.625,212,117.82Asset/Income related
Note: Due to the implementation of urban planning for old town reconstruction in Nanning, the operating center of Guangxi Logistics which was located in Longteng Road District, Nanning City, was to be reconstructed in another place. According to the agreement signed between Guangxi Logistics and the real estate developer in May 2012, Guangxi Logistics would obtain a compensation of RMB120,250,000.00, including cash of RMB50,000,000.00 and a property in construction equal to value of RMB70,250,000.00. Cash compensation of RMB50,000,000.00 was received in May 2012. In 2015, construction properties with a value of RMB70,250,000.00 were built and delivered, and had been recognised as investment properties. The compensation relating to the capital expenditure in the reconstruction of the new logistic center in another place, amounting to RMB93,320,000.00, was recognised as deferred revenue, and would be amortized and recognised in the income statement within the expected useful lives using the straight-line method, and the other cash compensation, of which the amount approximates to RMB26,930,000.00, was recognised in the income statement in 2012.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

38. Other non-current liabilities

30 June 202131 December 2020
Governmental medical reserve funds (1)600,009,111.26711,029,182.37
Product promotion accumulative points programme (2)30,824,503.2229,815,911.17
Other6,140.5317,896.05
630,839,755.01740,862,989.59
(1) Governmental medical reserve funds are the funds received from the national and local governments for purchasing reserve medical supplies. (2) The Product promotion accumulative points programme refers to those product-originated accumulative points that remain more than one year surplus before the expiration date.

39. Share capital

Movement during the current year
31 December 2020Issue of new shareOthersSubtotal30 June 2021
Shares428,126,983.00---428,126,983.00

40. Capital surplus

31 December 2020IncreaseDecrease30 June 2021
Share premium2,118,174,787.27--2,118,174,787.27
Other capital surplus2,254,329,266.45-(460,868.29)2,253,868,398.16
4,372,504,053.72-(460,868.29)4,372,043,185.43
Changes in other equity of Shyndec Pharma, an associate of the group, reduce the book value of long-term equity investment and include it in the capital reserve of RMB -460,868.29.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

41. Other comprehensive income

Amounts changes in current period
31 December 2020Occurrence amount before taxAttributable to shareholders of owners of the parent30 June 2021
Other comprehensive income items which will not be reclassified subsequently to profit or loss38,611,051.04--38,611,051.04
Incl: Change in the fair value of other equity investments38,611,051.04--38,611,051.04
Other comprehensive income that may be reclassified to profit or loss(128,033.32)64,854.9064,854.90(63,178.42)
Incl: Other comprehensive income using the equity method that may be reclassified to profit or loss(128,033.32)64,854.9064,854.90(63,178.42)
38,483,017.7264,854.9064,854.9038,547,872.62

42. Surplus reserve

31 December 2020IncreaseDecrease30 June 2021
Statutory surplus reserves214,063,491.50--214,063,491.50

43. Retained earnings

30 June 202131 December 2020
Retained earnings at beginning of year before retrospective adjustment and restatement8,895,145,106.397,755,295,537.08
The retrospective adjustment and restatement-(3,029,877.91)
Retained earnings at beginning of year after retrospective adjustment and restatement8,895,145,106.397,752,265,659.17
Add: Net profit attributable to the parent741,445,013.251,401,892,593.23
Less: Dividend payable on common stock342,501,586.40256,876,189.80
Other-2,136,956.21
Retained earnings on June 30, 20209,294,088,533.248,895,145,106.39

Adjust the details of undistributed profits at the beginning of the period:

1) . due to the retroactive adjustment of the accounting standards for business enterprises and its relevant new provisions, theundistributed profit at the beginning of the period was affected by 0.00 yuan.

2) . due to the change of accounting policy, the undistributed profit at the beginning of the period is 0.00 yuan.

3) . due to the correction of major accounting errors, the undistributed profit at the beginning of the period was affected by 0.00yuan.

4) . the change of consolidation scope caused by the same control affects the undistributed profit at the beginning of the period by

0.00 yuan.

5) . the total of other adjustments affects the undistributed profit at the beginning of the period by 0.0

V Notes to the consolidated financial statements (Continued)

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

44. Operating revenue and cost

For the six months ended 30 June 2021For the six months ended 30 June 2020
RevenueCostRevenueCost
Principal operations32,841,264,479.5629,156,249,513.9626,944,450,698.0323,953,267,481.54
Other operations321,827,407.8360,587,687.11225,489,490.4917,762,237.90
33,163,091,887.3929,216,837,201.0727,169,940,188.5223,971,029,719.44
ClassificationHead OfficePharmaceutical distributionPharmaceutical retailElimination between segmentsTotal
By product
Incl:
Pharmaceuticals-19,828,394,853.8510,676,855,504.22(499,204,175.96)30,006,046,182.11
Medical devices and disposables-2,076,206,193.67134,724,521.61-2,210,930,715.28
Diagnostic reagents-515,191,908.40--515,191,908.40
Medical equipments-278,181,437.86--278,181,437.86
Others4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
By area
Incl:
China4,532,508.3722,809,753,652.9310,811,580,025.83(505,142,474.51)33,120,723,712.62
By types of activity
Incl:
Pharmaceutical distribution-21,697,696,043.601,958,602,731.53(499,204,175.96)23,157,094,599.17
Retail pharmacy-1,000,278,350.188,852,977,294.30-9,853,255,644.48
Others4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
By contract duration
Incl:
At a point in time-22,697,974,393.7810,811,580,025.83(499,204,175.96)33,010,350,243.65
Over time4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
4,532,508.3722,809,753,652.9310,811,580,025.83(505,142,474.51)33,120,723,712.62

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

44. Operating revenue and cost (Continued)

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

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

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

completed.

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

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilledis RMB316,827,151.78, which is expected to be recognized within 1 year.

Revenue is as follows:
For the six month ended 30 June 2021For the six month ended 30 June 2020
Revenue from contracts with customers33,120,723,712.6227,139,718,273.17
Rentals42,368,174.7730,221,915.35
33,163,091,887.3927,169,940,188.52

45. Tax and surcharges

For the six month ended 30 June 2021For the six month ended 30 June 2020
City maintenance and construction tax27,877,507.4628,121,494.67
Educational surcharge20,257,170.1520,311,577.25
Property tax4,224,163.722,492,284.79
Land tax768,836.09317,162.91
Vehicle and vessel use tax85,991.9672,575.73
Stamp duty21,497,447.3717,140,178.76
Others1,278,737.831,050,035.21
75,989,854.5869,505,309.32

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

46. Selling expenses

For the six month ended 30 June 2021For the six month ended 30 June 2020
Employees payroll and welfare benefits1,197,067,119.97904,925,594.87
Depreciation expenses of right-of-use assets479,540,503.22387,380,924.52
Rental expenses117,046,188.5260,573,717.68
Technical service fee84,303,596.2145,620,729.98
Amortization of long-term deferred expenses69,802,526.3752,138,560.36
Depreciation expenses56,762,708.3043,808,801.59
Transportation charges52,564,735.7651,095,840.37
Utilities39,863,463.7334,081,779.59
Office allowances35,013,829.0027,895,774.76
Storage expenses25,614,256.0918,300,237.30
Promotion and marketing expenses18,804,920.9915,399,693.56
Property management fee16,975,156.9715,659,321.63
Entertainment expenses14,061,877.539,358,003.62
Market development fee8,168,582.424,517,975.19
Repairing fees7,118,061.327,147,598.96
Travel allowances2,939,453.781,845,288.42
Conference expenses525,946.12292,483.51
Others81,312,603.4748,696,492.69
2,307,485,529.771,728,738,818.60

47. Administrative expenses

For the six month ended 30 June 2021For the six month ended 30 June 2020
Employees payroll and welfare benefits360,049,901.79325,153,640.16
Depreciation expenses17,675,510.9016,351,496.61
Rental expenses16,196,265.775,390,672.79
Office allowances14,281,405.1912,677,148.40
Depreciation expenses of right-of-use assets12,957,819.9410,925,364.40
Amortization of intangible assets11,402,009.798,991,474.97
Amortization of long-term deferred expenses8,283,676.966,808,445.06
Entertainment expenses7,342,000.004,596,522.19
Technical service fee6,691,393.4911,527,561.19
Property management fee4,749,071.863,089,556.70
Vehicle management expenses3,659,483.253,169,051.19
Travel allowances3,444,399.911,822,634.84
Utilities3,107,684.091,919,161.42
Repairing fees2,852,529.462,898,331.91
Agency service fee2,841,366.733,411,279.41
Promotion and marketing expenses304,402.822,180,552.03
Others16,698,014.7622,374,251.65
492,536,936.71443,287,144.92

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

48. Finance costs

For the six month ended 30 June 2021For the six month ended 30 June 2020
Interest expenses147,057,897.99133,350,510.68
Less: Interest income38,758,729.7865,512,550.22
Cash discount18,968,417.8120,153,456.44
Exchanges gain/(loss)(415,927.10)47,935.97
Others18,328,179.8517,581,389.63
107,243,003.1565,313,829.62

A breakdown for interest income is as follows:

For the six month ended 30 June 2021For the six month ended 30 June 2020
Cash38,758,729.7865,512,550.22

49.

Other incomes

For the six month ended 30 June 2021For the six month ended 30 June 2020
Government grants related to daily operating activities33,966,095.0125,786,877.95
VAT reduction for small-scale taxpayers11,566,085.358,383,678.31
VAT additional deduction929,058.98864,634.59
Taxation service charge refund788,376.92820,107.47
47,249,616.2635,855,298.32

50. Investment income

For the six month ended 30 June 2021For the six month ended 30 June 2020
Long-term equity investment income under the equity method157,696,397.81133,604,904.16
Dividend income from other equity investments that are still held2,330,159.50-
Investment income from financial assets at fair value through profit or loss3,599,555.614,109,881.90
Investment income from the derecognition of financial assets measured at amortised cost(7,039,046.60)(33,507,102.64)
Others998,665.84
156,587,066.32105,206,349.26

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

51. Credit impairment losses

For the six month ended 30 June 2021For the six month ended 30 June 2020
Impairment loss of other receivables(1,464,818.01)(1,401,731.20)
Impairment loss of accounts receivable(28,023,731.77)(20,178,500.32)
Impairment loss of notes receivables893,564.34-
Impairment loss of other non-current financial assets(70,000.00)-
(28,664,985.44)(21,580,231.52)

52.

Impairment losses

For the six month ended 30 June 2021For the six month ended 30 June 2020
Loss from write-down of inventories(318,356.71)(1,743,888.30)
Loss from impairment of contract assets( 60,342.41)-
Loss from impairment of other non-current assets( 38,216.14)-
( 416,915.26)(1,743,888.30)

53. Gain on disposal of assets

For the six month ended 30 June 2021For the six month ended 30 June 2020
Gain on disposal of right-of-use assets(505,084.56)3,971,813.20
Gain on disposal of fixed assets(83,714.99)333,511.60
(588,799.55)4,305,324.80

54. Non-operating income

For the six month ended 30 June 2021For the six month ended 30 June 2020Amount classified as non-recurring profit or loss
Government grants1,349,204.281,349,204.281,349,204.28
Gain on disposal of non-current assets60,184.802,171.0160,184.80
Gain from writing off the unnecessary payment7,298,605.35199,266.477,298,605.35
Others3,785,326.013,669,338.463,789,726.01
12,493,320.445,219,980.2212,493,320.44

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

54. Non-operating income(Continued)

Government grants included in current period profit or loss:

Project NameGovernment DepartmentReasons for Government grantsTypeAffects the profit or loss of this yearSpecial subsidyFor the six months ended 30 June 2021For the six months ended 30 June 2020Related to asset/income
Resettlement Compensation of No. 7 Zhongyao RoadNanning Economic & Technological Development Area Management CommitteeSubsidySubsidies from local government for support policies such as attracting investmentYesNo1,349,204.281,349,204.28Asset related

55. Non-operating expenses

For the six month ended 30 June 2021For the six month ended 30 June 2020Amount classified as non-recurring profit or loss
Donation expenses158,990.50527,677.41158,990.50
Losses arising from damage and obsolescence of non-current assets273,414.36373,790.44273,414.36
Penalty expenses1,220,928.37467,582.501,220,928.37
Others1,584,618.121,639,842.171,584,618.12
3,237,951.353,008,892.523,237,951.35

56. Income tax expenses

For the six month ended 30 June 2021For the six month ended 30 June 2020
Current income tax248,326,505.55213,477,221.94
Deferred income tax(9,900,246.51)(3,370,457.59)
238,426,259.04210,106,764.35
The reconciliation from income tax calculated based on applicable tax rates and total profit presented in the consolidated financial statements to the income taxes is listed below:
For the six month ended 30 June 2021
Profit before income tax1,146,420,713.53
Tax at the applicable tax rate286,605,178.38
Effect of different tax rates for some subsidiaries(27,341,828.05)
Adjustments in respect of current tax of previous periods9,250,796.99
Income not subject to tax(39,424,099.45)
Expenses not deductible for tax5,188,447.29
Unrecognised deductible temporary differences and tax losses4,147,763.88
Income tax238,426,259.04

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

57. Notes to items in the cashflow statement

(1)Other cash receipts relating to operating activities
For the six months ended 30 June 2021For the six months ended 30 June 2020
Received the special emergency reserve fund-330,000,000.00
Rent income42,368,174.7730,221,915.35
Interest income38,758,729.7865,499,031.75
Received other government grants except tax refund35,612,619.0328,018,379.40
Others251,851,351.88253,462,783.50
368,590,875.46707,202,110.00
(2)Other cash payments relating to operating activities
For the six months ended 30 June 2021For the six months ended 30 June 2020
Rental expenses133,233,956.7065,964,390.47
Transportation charges52,564,735.7651,095,840.37
Office expenses49,295,234.1940,572,923.16
Utilities42,971,147.8236,000,941.01
Storage expenses25,614,256.0918,300,237.30
Entertainment expenses21,403,877.5313,954,525.81
Advertising expenses19,109,323.8117,580,245.59
Travel expenses6,383,853.693,667,923.26
Others582,203,811.77456,537,231.52
932,780,197.36703,674,258.49
(3)Other cash receipts relating to investing activities
For the six months ended 30 June 2021For the six months ended 30 June 2020
Received from capital pool(1)-22,000,000.00
Others54,984.6040,000.00
54,984.6022,040,000.00

(1) Pudong Pharmaceuticals, a subsidiary of the merger of enterprises under the common control of Guoda Pharmacy in2020, and recovered the funds originally collected to the cash pool in the same period in 2020.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

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

(4)Other cash receipts relating to financing activities
For the six months ended 30 June 2021For the six months ended 30 June 2020
Received loan provided by minority shareholders69,150,000.00149,900,000.00
Financing restricted monetary funds received34,940,555.62128,449,840.06
Received loan provided by Sinmpharm-56,000,000.00
104,090,555.62334,349,840.06
(5)Other cash payments relating to financing activities
For the six months ended 30 June 2021For the six months ended 30 June 2020
Lease payment536,275,009.28466,492,796.45
Bank factoring payable251,370,239.59281,994,828.44
Repayment of the loan provided by minority shareholders50,400,000.00304,000,000.00
Investment fund of Shanghai Pudong Pharmaceuticals-163,115,049.98
Repayment of the loan provided by Sinmpharm-114,000,000.00
Purchase of equity of minority shareholders-52,309,117.11
Others-23,199,872.28
838,045,248.871,405,111,664.26

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

58. Supplementary information of cashflow statement

(1)Reconciliation of net profit to cash flows from operating activities
For the six month ended 30 June 2021For the six month ended 30 June 2020
Net profit907,994,454.49806,212,542.53
Add: Provisions for asset impairment29,081,900.7023,324,119.82
Depreciation of fixed assets78,401,603.0261,147,847.16
Depreciation of right-of-use assets493,632,821.29388,208,804.99
Amortization of intangible assets30,503,457.6922,955,311.98
Amortization of long-term prepaid expenses79,098,080.3451,031,038.60
Gains/(losses) on disposal of fixed assets, intangible assets and other long-term assets588,799.55(4,658,628.06)
Losse from obsolescence of non-current assets213,229.56371,619.43
Finance expenses126,395,365.24124,862,298.31
Investment losses(156,587,066.32)(105,206,349.26)
(Increase)/decrease in deferred tax assets(10,036,816.58)(1,027,041.92)
(Decrease)/increase in deferred tax liabilities417,984.79(2,343,415.67)
Decrease in inventories(868,988,935.78)(85,043,215.49)
Increase in operating receivables items(3,060,847,945.57)(2,023,296,252.84)
(Decrease)/increase in operating payable items3,561,205,596.30(133,395,115.40)
Others18,300,754.852,315,060,479.17
Net cash generated from operating activities1,229,373,283.571,438,204,043.35

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

58. Supplementary information of cashflow statement (Continued)

(2)Movement of cash
For the six months ended 30 June 2021For the six months ended 30 June 2020
Cash at the end of the period5,537,606,217.438,000,562,022.16
Less: Cash at the beginning of the period5,405,113,257.998,426,071,170.16
Net increase in cash132,492,959.44(425,509,148.00)
(3)
For the six months ended 30 June 2021
Cash and cash equivalents paid for acquisitions of subsidiaries and other operating units129,668,139.12
Incl: Yunnan Guoda Disheng Pharmaceutical Co., Ltd.(“Disheng Pharmaceutical)14,130,000.00
Disheng Chain.71,400,000.00
32 directly-operated stores of Shanxi Huimingkangwei Pharmaceutical Chain Co., Ltd.30,000,000.00
15 directly-operated stores of Sinopharm Holding Nantong Puji Pharmacy Chain Co., Ltd.14,138,139.12
Less: Cash and cash equivalents held by subsidiaries and other operating units at the acquisition date28,717,501.71
Incl: Disheng Pharmaceutical7,723,702.95
Disheng Chain Co., Ltd.20,993,798.76
Net cash outflow/(inflow) on acquisition of the subsidiaries and other operating units100,950,637.41
(4)Cash and cash equivalent
30 June 202131 December 2020
Cash5,537,606,217.435,405,113,257.99
Inclue: Cash on hand4,898,795.546,707,125.90
Bank deposits on demand5,532,707,421.895,398,406,132.09
Ending banlance cash and cash equivalent5,537,606,217.435,405,113,257.99

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

59. Assets under restricted ownership or right of use

Book valueReasons
Cash and cash equivalents338,186,269.94Note 1
Endorsed notes receivable and receivable financing20,196,089.49Note 2
358,382,359.43

Note 1: As at 30 June 2021, the the Group’s cash and cash equivalents with a book value of RMB 338,186,269.94(December 31, 2020: RMB 593,091,037.88) are mainly deposits for bank acceptance bills, freezing of funds and medicalreserve funds, etc.Note 2: As at 30 June 2021, the Group had receivables financing of RMB 20,070,999.69 and notes receivable ofRMB125,089.80, endorsed but not due (31 December 2020: receivables financing of RMB 23,843,867.66 and notesreceivable of RMB 4,095,283.92)

60. Government grants

TypeAmountItems of financial statementsThe amount recorded into profit or loss for the current period
Tax return12,016,071.91Other income12,016,071.91
Stabilitation allowances11,572,570.54Other income/ Deferred income11,572,570.54
Construction fund of the modern supply chain system in the central circulation field in 20182,143,819.51Other income/ Deferred income2,143,819.51
Subsidies from food and strategic reserves administration of Guangdong province1,946,573.87Other income1,946,573.87
Medical Reserve Subsidies from Shenzhen municipal health commission1,437,149.37Other income1,437,149.37
Government support fund1,361,117.00Other income1,361,117.00
Resettlement Compensation of No. 7 Zhongyu Road1,349,204.28Non-operating income /Deferred income1,349,204.28
Enterprise Economic Reward733,317.46Other income /Deferred income733,317.46
Government grants for COVID-19422,595.35Other income422,595.35
VAT reduction or exemption for self-employment retired soldiers300,870.00Other income300,870.00
Guangzhou logistics standardization pilot project allowance273,123.42Other income /Deferred income273,123.42

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

V Notes to the consolidated financial statements (Continued)

60 Government grants (Continued)

TypeAmountItems of financial statementsThe amount recorded into profit or loss for the current period
Special funds for industrial transformation and upgrading in dualized integration projects224,520.24Other income /Deferred income224,520.24
Rent subsidy from Guangzhou High-tech Industrial Development Zone216,700.85Other income216,700.85
Service Industry Enterprise Market Development Subsidy Project in Nanning200,000.00Other income200,000.00
Subsidy fund for medicine reserve in Foshan150,000.00Other income150,000.00
Comprehensive experimental modern service industry subsidies150,000.00Other income /Deferred income150,000.00
Logistics project construction support fund from Nanning economic development committee93,203.22Other income /Deferred income93,203.22
Funds for the logistics information platform project of the pharmaceutical storage centre71,428.56Other income /Deferred income71,428.56
Guangzhou special subsidy for commerce and trade circulation industry50,000.04Other income /Deferred income50,000.04
Special Fund for the construction of Enterprise Research and development Institutions in Guangzhou44,705.94Other income /Deferred income44,705.94
House purchase subsidy from the government of Tiexi District, Shenyang40,561.32Other income /Deferred income40,561.32
Subsidy for industrialization application project of pharmaceutical cold chain patent incubator from Guangzhou liwan district12,499.98Other income /Deferred income12,499.98
Medical intelligent supply chain e-commerce service platform technology project subsidy from Guangzhou liwan district9,861.24Other income /Deferred income9,861.24
Other government grants543,447.58Other income/Finance costs/Administrative /Selling expenses /Deferred income543,447.58

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VI. Changes in scope of consolidation

1. Business combination not involving enterprises under common control

1.1 Acquiring Disheng Pharmaceutical. And Disheng chain

AcquireeThe date of acquiring the rightAcquistion cost of the rightProportion of rights owned by the GroupMethods of acquisition the rightAcquisition dateThe basis for determining the date of purchaseIncome earned from the acquisition date to 30 June 2021Net profit earned from the acquisition date to 30 June 2021
Disheng Pharmaceutical (a)15 March 202114,130,000.0070.00%Acquisition15 March 2021The purchaser actually acquires control over the acquired company88,507,060.89964,797.79
Disheng chain Co., Ltd. (b)15 March 2021238,000,000.0070.00%Acquisition15 March 2021The purchaser actually acquires control over the acquired company116,656,427.7112,161,419.65

Additional clarification:

(a) Guoda Pharmacy, a subsidiary of the Company, acquired 70% shares of Disheng Pharmaceutical from Xishuangbanna Disheng Pharmaceutical Co., Ltd by RMB14,130,000.00. The acquisition wascompleted on 15 March 2021.(b) Guoda Pharmacy, a subsidiary of the Company, acquired 70% shares of Disheng chain from Xishuangbanna Disheng Pharmaceutical Co., Ltd by RMB 238,000,000.00. The acquisition wascompleted on 15 March 2021.

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

VI. Changes in scope of consolidation(Continued)

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

1.2 Acquisition costs and goodwill arising from acquisition

Acquisition costsDisheng PharmaceuticalDisheng chain
Cash14,130,000.00238,000,000.00
Acquisition costs14,130,000.00238,000,000.00
Less: the fair values of acquired identifiable net assets14,708,610.4185,842,064.48
Goodwill arising from acquisition/Acquisition costs exceeding the fair values of acquired identifiable net assets(578,610.41)152,157,935.52

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VI. Changes in scope of consolidation (Continued)

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

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

Disheng PharmaceuticalDisheng chain
Fair valueCarrying amountFair valueCarrying amount
Cash and bank balances7,723,702.957,723,702.9520,993,798.7620,993,798.76
Accounts receivable30,471,781.2430,471,781.2423,414,107.1823,414,107.18
Inventories19,829,957.3219,829,957.3245,829,051.0645,829,051.06
Fixed assets1,335,373.901,335,373.902,000,261.192,000,261.19
Intangible assets--40,661,415.51221,415.51
Advances to suppliers2,318,717.102,318,717.1091,212.9491,212.94
Other receivables2,129,844.692,129,844.693,414,254.843,414,254.84
Other current assets5,329,820.935,329,820.934,627,358.054,627,358.05
Long-term prepaid expenses724,925.12724,925.127,783,811.557,783,811.55
Right-of-use assets--41,047,873.2941,047,873.29
Deferred tax assets31,947.5931,947.59249,467.13249,467.13
Accounts payable47,041,828.7047,041,828.7013,321,430.5013,321,430.50
Deferred tax liabilities--6,066,000.00-
Contract liabilities123,430.92123,430.921,818,156.151,818,156.15
Employee benefits payable490,428.65490,428.655,316,750.155,316,750.15
Tax payable408,921.64408,921.645,707,308.605,707,308.60
Other payables819,160.34819,160.347,477,165.097,477,165.09
Non-current liabilities due within one year--15,482,505.3215,482,505.32
Lease liabilities--12,291,775.0012,291,775.00
Net assets21,012,300.5921,012,300.59122,631,520.6988,257,520.69
Less: equity of minority shareholders6,303,690.186,303,690.1836,789,456.2126,477,256.21
Net assets acquired14,708,610.4114,708,610.4185,842,064.4861,780,264.48

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

It is recognized according to the appraisal.

VI. Changes in scope of consolidation (Continued)

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

2. Others

2.1 Acquisition of the management right of 15 directly-managed stores of Sinopharm holding

Nantong Puji pharmacy chain Co., Ltd.( hereafter referd as

“Nantong Puji”)

Yangzhou Guoda, a subsidiary of the Company, obtained 15 directly-managed stores of Nantong Puji with cash of RMB14,138,139.12. The acquisition date is determined as 2 March 2021. After the acquisition, goodwill of RMB 11,498,100.00 wasformed.The fair values and carrying amounts of identifiable assets and liabilities of 15 directly-managed stores of Nantong Puji on theacquisition date are presented as follows:

Nantong Puji2 March 20212 March 2021
Fair valueCarrying amount
Fixed assets788,300.00788,300.00
Inventories1,751,439.121,751,439.12
Long-term prepaid expenses100,300.00100,300.00
Total2,640,039.122,640,039.12
Price paid14,138,139.1214,138,139.12
Goodwill arising from acquisition11,498,100.0011,498,100.00

Operating results and cash flows of 15 directly-managed stores of Nantong Puji for the period from the acquisition date to the endof the June are presented as follows:

2 March 2021 to 30 June 2021
Operating revenue7,016,410.53
Net profit303,795.13
cash flows from operating activities871,784.36

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VI. Changes in scope of consolidation (Continued)

2. Others (Continued)

2.2 Acquisition of the management right of 32 directly-managed stores of Shanxi Huimin Kangwei

pharmacy chain Co., Ltd.(

hereafter referd as “Shanxi Huimin Kangwei pharmacy”)

Guoda Wanmin Huimin Kangwei pharmacy Luliang Co., Ltd.(hereafter referd as “Huimin Lvliang”), a subsidiary of the Company,obtained 32 directly-managed stores of Shanxi Huimin Kangwei pharmacy with cash of RMB 30,000,000.00. The acquisition dateis determined as 8 February 2021. After the acquisition, goodwill of RMB 20,970,000.00 was formed.The fair values and carrying amounts of identifiable assets and liabilities of 32 directly-managed stores of Shanxi Huimin Kangweipharmacy on the acquisition date are presented as follows:

Shanxi Huimin Kangwei pharmacy8 February 20218 February 2021
Fair valueCarrying amount
Fixed assets1,740,000.001,740,000.00
Inventories7,290,000.007,290,000.00
Total9,030,000.009,030,000.00
Price paid30,000,000.0030,000,000.00
Goodwill arising from acquisition20,970,000.0020,970,000.00

Operating results and cash flows of 32 directly-managed stores of Shanxi Huimin Kangwei pharmacy for the period from theacquisition date to the end of the June are presented as follows:

8 February 2021 to 30 June 2021
Operating revenue15,240,595.69
Net profit292,600.01
cash flows from operating activities209,519.17

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VII Interests in other entities

1. Interests in in subsidiaries

(1)The composition of the Group:
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Sinopharm GuilinGuilinGuilinCommercial-100.00%Establishment
Sinopharm BaiseBaiseBaiseCommercial-100.00%Establishment
Sinopharm Holding Zhongshan Co., Ltd.ZhongshanZhongshanCommercial-100.00%Establishment
Sinopharm GuigangGuigangGuigangCommercial-100.00%Establishment
Sinopharm BeihaiBeihaiBeihaiCommercial-100.00%Establishment
Sinopharm Holding Guangzhou Medical TreatmentGuangzhouGuangzhouCommercial-51.00%Establishment
Sinopharm Holding Shenzhen Jianmin Co., Ltd.(hereafter refered as"Sinopharm Shenzhen Jianmin")ShenzhenShenzhenCommercial100.00%-Business combinations involving entities under common control
Sinopharm Holding Shenzhen Traditional & Herbal Medicine Co., Ltd. (hereafter referd as “Sinopharm Traditional & Herbal Medicine")ShenzhenShenzhenCommercial100.00%-Business combinations involving entities under common control
Sinopharm Holding Shenzhen Logistics Co., Ltd. (hereafter refered as“Sinopharm Shenzhen Logistics")ShenzhenShenzhenServices100.00%-Business combinations involving entities under common control
Sinopharm GuangzhouGuangzhouGuangzhouCommercial100.00%-Business combinations involving entities under common control
Sinopharm Holding Guangdong Hengxing Co., Ltd.GuangzhouGuangzhouCommercial-100.00%Business combinations involving entities under common control
Sinopharm YulinYulinYulinCommercial-100.00%Business combinations involving entities under common control

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Sinopharm LiuzhouLiuzhouLiuzhouCommercial-51.00%Business combinations involving entities under common control
Guangdong Huixin Investment Co., Ltd.GuangzhouGuangzhouService100.00%Business combinations involving entities under common control
Sinopharm Holding Foshan Co., Ltd.FoshanFoshanCommercial100.00%Business combinations involving entities under common control
Sinopharm Holding Guangdong Yuexing Co., Ltd. (hereafter refered as“Sinopharm Guangdong Yuexing”)GuangzhouGuangzhouCommercial100.00%Business combinations involving entities under common control
Sinopharm Holding Guangdong Logistics Co., Ltd.GuangzhouGuangzhouService100.00%Business combinations involving entities under common control
Sinopharm GuangxiNanningNanningCommercial100.00%Business combinations involving entities under common control
Guangxi LogisticNanningNanningService100.00%Business combinations involving entities under common control
Sinopharm WuzhouWuzhouWuzhouCommercial99.90%Business combinations involving entities under common control
Sinopharm DongguanDongguanDongguanCommercial100.00%Business combinations involving entities not under common control
Sinopharm ZhanjiangZhanjiangZhanjiangCommercial100.00%Business combinations involving entities not under common control
Sinopharm YanfengShenzhenShenzhenCommercial51.00%Business combinations involving entities not under common control
Sinopharm MeizhouMeizhouMeizhouCommercial100.00%Business combinations involving entities not under common control
Sinopharm HuizhouHuizhouHuizhouCommercial100.00%Business combinations involving entities not under common control
Sinopharm ZhaoqingZhaoqingZhaoqingCommercial-100.00%Business combinations involving entities not under common control
Sinopharm JiangmenJiangmenJiangmenCommercial-100.00%Business combinations involving entities not under common control
Sinopharm ShaoguanShaoguanShaoguanCommercial-70.00%Business combinations involving entities not under common control
Sinopharm Holding Shantou Co., LtdShantouShantouCommercial-100.00%Business combinations involving entities not under common control
Foshan NanhaiFoshanFoshanCommercial-100.00%Business combinations involving entities under common control
Foshan Nanhai Uptodate & Special Medicines Co., Ltd.FoshanFoshanCommercial-100.00%Business combinations involving entities under common control
Foshan Nanhai Medicine Co., Ltd.FoshanFoshanCommercial-100.00%Business combinations involving entities under common control
Sinopharm Holding Guangdong Dong Fang Uptodate & Special Medicines Co., Ltd. (a)GuangzhouGuangzhouCommercial-100.00%Business combinations involving entities under common control
South Pharma & TradeGuangzhouGuangzhouCommercial-100.00%Business combinations involving entities under common control
Sinopharm ZhuhaiZhuhaiZhuhaiCommercial-100.00%Business combinations involving entities not under common control
Sinopharm MaomingMaomingMaomingCommercial-100.00%Business combinations involving entities not under common control

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Sinopharm Holding GZ Medical Technology Co., Ltd.GuangzhouGuangzhouCommercial-51.00%Establishment
Sinopharm Holding GZ Medical Supply Chain Service Co., Ltd.GuangzhouGuangzhouCommercial-51.00%Establishment
Sinopharm Holding Heyuan Co., Ltd.HeyuanHeyuanCommercial-70.00%Business combinations involving entities not under common control
Guoda PharmacyShanghaiShanghaiCommercial60.00%-Business combinations involving entities under common control
Shanghai Guoda.ShanghaiShanghaiCommercial-100.00%Business combinations involving entities under common control
Beijing Guoda Pharmacy Chain Store Co., Ltd.BeijingBeijingCommercial-100.00%Business combinations involving entities under common control
Tianjin Guoda Pharmacy Chain Store Co., Ltd.TianjinTianjinCommercial-80.00%Business combinations involving entities under common control
Guangxi ConsultingNanningNanningCommercial-100.00%Business combinations involving entities under common control
Sinopharm Holding Guoda Pharmacy Guangdong Co., Ltd.ShenzhenShenzhenCommercial-100.00%Business combinations involving entities under common control
Guangxi GuodaLiuzhouLiuzhouCommercial-100.00%Business combinations involving entities under common control
Zhejiang GuodaHangzhouHangzhouCommercial-100.00%Business combinations involving entities under common control
Yangzhou GuodaYangzhouYangzhouCommercial-93.68%Business combinations involving entities under common control
Ningxia GuodaYinchuanYinchuanCommercial-70.00%Business combinations involving entities under common control
Nanjing GuodaNanjingNanjingCommercial-60.00%Business combinations involving entities under common control
Shandong GuodaLinyiLinyiCommercial-55.00%Business combinations involving entities under common control
Shenyang GuodaShenyangShenyangCommercial-51.00%Business combinations involving entities under common control
Fujian ChainXiamenXiamenCommercial-100.00%Business combinations involving entities under common control
Anhui Guoda Pharmacy Chain Store Co., Ltd.HefeiHefeiCommercial-60.00%Business combinations involving entities under common control
Quanzhou GuodaQuanzhouQuanzhouCommercial-51.00%Business combinations involving entities under common control
Shanxi Guoda WanminTaiyuanTaiyuanCommercial-85.00%Business combinations involving entities under common control
Hunan GuodaHengyangHengyangCommercial-51.00%Business combinations involving entities under common control
Liyang GuodaLiyangLiyangCommercial-80.00%Business combinations involving entities under common control
Henan GuodaPingdingshanPingdingshanCommercial-60.00%Business combinations involving entities under common control
Inner Mongolia GuodaHohhotHohhotCommercial-96.70%Business combinations involving entities under common control
Hebei LerentangShijiazhuangShijiazhuangCommercial-60.00%Business combinations involving entities under common control

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Jiangmen GuodaJiangmenJiangmenCommercial-65.00%Business combinations involving entities under common control
Shanxi Guoda YiyuanTaiyuanTaiyuanCommercial-80.00%Business combinations involving entities under common control
Xinjiang GuodaUrumqiUrumqiCommercial-51.00%Business combinations involving entities under common control
ForMe MedicinesShanghaiShanghaiCommercial-97.00%Business combinations involving entities under common control
Shanghai ForMe YiXing Pharmacy Chain Store Co., Ltd.ShanghaiShanghaiCommercial-99.76%Business combinations involving entities under common control
Beijing Golden ElephantBeijingBeijingCommercial-53.13%Business combinations involving entities under common control
Shanxi Tongfeng Pharmacy Logistics Co., Ltd.TaiyuanTaiyuanCommercial-100.00%Business combinations involving entities under common control
Changzhi WanminChangzhiChangzhiCommercial-51.00%Business combinations involving entities under common control
Shanxi Guoda Wanmin Clinic Management Chain Co., Ltd.TaiyuanTaiyuanMedical services-100.00%Business combinations involving entities under common control
Shanghai Guoda Shanghong Qibao Pharmacy Co., Ltd.ShanghaiShanghaiCommercial-51.00%Business combinations involving entities under common control
Zhejiang Intlmedicine Pharmacy Dongshan Co., Ltd.HangzhouHangzhouCommercial-51.00%Business combinations involving entities under common control
Shanghai Dongsheng GuodaShanghaiShanghaiCommercial-100.00%Business combinations involving entities under common control
Sinopharm Guoda Drug Store (Shenzhen) Chain Co., Ltd.ShenzhenShenzhenCommercial-100.00%Business combinations involving entities under common control
Guoda Guangzhou ChainGuangzhouGuangzhouCommercial-100.00%Business combinations involving entities under common control
Shanghai Guodong Chinese Traditional Medicine Clinic Co., Ltd.ShanghaiShanghaiMedical clinic-100.00%Business combinations involving entities under common control
Shanghai Guoda Dongxin Pharmacy Chain Store Co., Ltd.ShanghaiShanghaiCommercial-100.00%Business combinations involving entities under common control
Shanghai Yutaitang Chinese Traditional Medicine Clinic Co., Ltd.ShanghaiShanghaiCommercial-100.00%Business combinations involving entities under common control
Sanhe Liyang Golden Elephant Pharmacy Co., Ltd.LangfangLangfangCommercial-100.00%Business combinations involving entities under common control
Xiaoyi WanminXiaoyiXiaoyiCommercial-70.00%Business combinations involving entities under common control
Inner Mongolia Hulun Buir GuodaHulun BuirHulun BuirCommercial-51.00%Business combinations involving entities under common control
ForMe XuhuiShanghaiShanghaiCommercial-100.00%Business combinations involving entities under common control
Inner Mongolia Ulanqab Guoda.UlanqabUlanqabCommercial-60.00%Establishment
Taishan GuodaTaishanTaishanCommercial-70.00%Business combinations involving entities under common control
Sinopharm Lerentang Shijiazhuang PharmaceuticalShijiazhuangShijiazhuangCommercial-100.00%Business combinations involving entities under common control
Manchuria GuodaManchuriaManchuriaCommercial-51.00%Establishment
Sinopharm Guoda Drug Store Anshan Chain Co., Ltd.AnshanAnshanCommercial-51.00%Establishment

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Sinopharm Holding Guoda Yongsheng Drug Store (Shanghai) Co., Ltd.ShanghaiShanghaiCommercial-55.00%Establishment
Sinopharm Holding Foshan Medical Consumables Supply Chain Co., Ltd.FoshanFoshanCommercial-70.00%Establishment
Sinopharm Guangxi Supply ChainNanningNanningCommercial-30.60%Establishment
Shanghai Haohai GuodaShanghaiShanghaiCommercial-51.00%Establishment
Sinopharm Baiyi PharmacyNanningNanningCommercial-51.00%Establishment
Sinopharm HezhouHezhouHezhouCommercial-100.00%Establishment
Sinopharm Holding National Pharmacy Zhengzhou Chain Co., Ltd.ZhengzhouZhengzhouCommercial-60.00%Establishment
Shanghai Ruijing GuodaShanghaiShanghaiCommercial-55.00%Establishment
Fujian Guoda Pharmaceutical Co., Ltd.XiamenXiamenCommercial-100.00%Establishment
Sinopharm QinzhouQinzhouQinzhouCommercial-100.00%Establishment
Sinopharm HechiHechiHechiCommercial-100.00%Establishment
Sinopharm Holding Guangzhou Huadu Co., Ltd.GuangzhouGuangzhouCommercial-70.00%Business combinations involving entities not under common control
Sinopharm Holding Guoda Shanxi Pharmaceutical Co., Ltd.TaiyuanTaiyuanCommercial-100.00%Business combinations involving entities not under common control
Taiyuan Tongxinli Guoda Pharmacy Co., Ltd.TaiyuanTaiyuanCommercial-100.00%Business combinations involving entities not under common control
BayannaoerBayannaoerBayannaoerCommercial-80.00%Establishment
Guoda Inner Mongolia PharmaceuticalHohhotHohhotCommercial-100.00%Establishment
Sinopharm Holding Guoda Yongxingtang Chain (Chaoyang) Co., Ltd.ChaoyangChaoyangCommercial-51.00%Establishment
Sinopharm Accord Medical Devices (Shenzhen) Co., Ltd(b)(“Accord Devices”)ShenzhenShenzhenCommercial60.00%Establishment
Sinopharm Holding Guozhi Pharmacy (Heyuan) Co., Ltd.HeyuanHeyuanCommercial70.00%Establishment
Liaoning Guoda Pharmaceutical Co., Ltd.ShenyangShenyangCommercial100.00%Establishment
Sinopharm Holding Guangyi Health Management (Zhanjiang) Co., Ltd.ZhanjiangZhanjiangCommercial60.00%Establishment
Guangzhou MedicineGuangzhouGuangzhouCommercial70.00%Business combinations involving entities not under common control
Guoda pharmacy(Chaoyang) Renai Co., Ltd.ChaoyangChaoyangCommercial51.00%Business combinations involving entities not under common control
Guoda Pu’er SongmaoPuerPuerCommercial60.00%Business combinations involving entities not under common control
Shanghai DingqunShanghaiShanghaiMedical services100.00%Business combinations involving entities not under common control
Sinopharm Holding Tianhe Jilin Pharmaceutical Co., Ltd.ChangchunChangchunCommercial85.00%Business combinations involving entities not under common control
Jilin YiheChangchunChangchunCommercial100.00%Business combinations involving entities not under common control
Jilin Donglong Medical Logistis distribution Co., Ltd.ChangchunChangchunCommercial100.00%Business combinations involving entities not under common control
Yushu Dinghe Medical Technology Co., Ltd.ChangchunChangchunCommercial51.00%Business combinations involving entities not under common control

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Guoda pharmacy Jilin Co., Ltd. (c)ChangchunChangchunCommercial100.00%Business combinations involving entities not under common control
Yanji Xianghe Medical Co., Ltd.YanjiYanjiCommercial51.00%Business combinations involving entities not under common control
Pudong PharmaceuticalsShanghaiShanghaiCommercial75.00%Business combinations involving entities under common control
Shanghai Yanghetang Pharmaceutical Chain Management Co., Ltd.ShanghaiShanghaiCommercial100.00%Business combinations involving entities under common control
Shanghai Pudong Yanghetang TCM Clinic Co., Ltd.ShanghaiShanghaiCommercial100.00%Business combinations involving entities under common control
Guoda Pharmacy (Rizhao) Co., Ltd.RizhaoRizhaoCommercial100.00%Establishment
Liaoning Health PharmacyShenyangShenyangCommercial100.00%Establishment
Beijing Jinxiang Guoxing pharmaceutical chain Co., Ltd.BeijingBeijingCommercial100.00%Business combinations involving entities not under common control
Sinopharm Accord (Yangjiang) Medicine Co., Ltd.YangjiangYangjiangCommercial70.00%Business combinations involving entities not under common control
Liaoning Guoda pharmacyDalianDalianCommercial100.00%Establishment
Liaoning Huludao Guoda pharmacy Co., Ltd(d)HuludaoHuludaoCommercial100.00%Establishment
Jinzhong Yuci Guoda Wanmin clinic Co., LtdJinzhongJinzhongCommercial100.00%Establishment
Guoda Jianfeng (Jiangmen) pharmaceutical chain Co., LtdJiangmenJiangmenCommercial51.00%Establishment
Chengda Fangyuan Pharmaceutical Group Co., LtdShenyangShenyangCommercial100.00%Business combinations involving entities not under common control
Shandong Chengda Fangyuan pharmaceutical chain Co., LtdQingdaoQingdaoCommercial100.00%Business combinations involving entities not under common control
Liaoning Chengda Fangyuan pharmaceutical chain Co., LtdShenyangShenyangCommercial100.00%Business combinations involving entities not under common control
Liaoning Zhicheng Xingda advertising media Co., LtdBenxiBenxiMedical services100.00%Business combinations involving entities not under common control
Chengda Fangyuan (Liaoning) new drug special drug chain Co., LtdShenyangShenyangCommercial80.00%Business combinations involving entities not under common control
Liaoning Chengda Fangyuan vocational and technical training schoolShenyangShenyangMedical services100.00%Business combinations involving entities not under common control

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)
(1)The composition of the Group (Continued):
SubsidiariesPrincipal place of businessPlace of incorporationNature of businessShareholdingWays of acquisition
DirectIndirect
Liaoning Chengda Fangyuan Pharmaceutical Co., LtdShenyangShenyangCommercial100.00%Business combinations involving entities not under common control
Dalian Zhengda Pharmaceutical Co., LtdDalianDalianCommercial100.00%Business combinations involving entities not under common control
Hebei Chengda Fangyuan pharmaceutical chain Co., LtdQnghuangdaoQnghuangdaoCommercial100.00%Business combinations involving entities not under common control
Liaoning Chengda Fangyuan Pharmaceutical Logistics Co., LtdShenyangShenyangMedical services100.00%Business combinations involving entities not under common control
Liaoning Chengda Fangyuan Logistics Co., LtdShenyangShenyangMedical services100.00%Business combinations involving entities not under common control
Jilin Chengda Fangyuan Pharmaceutical Co., LtdChangchunChangchunCommercial80.00%Business combinations involving entities not under common contro
Jilin Chengda Fangyuan pharmaceutical chain Co., LtdChangchunChangchunCommercial99.00%Business combinations involving entities not under common contro
Inner Mongolia Chengda Fangyuan MedicineChifengChifengCommercial70.00%Business combinations involving entities not under common contro
Inner Mongolia Chengda Fangyuan pharmaceutical chain Co., LtdChifengChifengCommercial99.00%Business combinations involving entities not under common contro
Huimin Luliang (e)LvliangLvliangCommercial51.00%Establishment
Disheng Pharmaceutical (f)XishuangbannaXishuangbannaCommercial70.00%Business combinations involving entities not under common contro
Disheng chain (g)XishuangbannaXishuangbannaCommercial70.00%Business combinations involving entities not under common contro

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

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

Description of shareholding ratio in subsidiaries different from voting ratio:

On January 4, 2018, the group, Guorun medical supply chain service (Shanghai) Co., Ltd. (hereafter referred to as "Guorunmedical") and Guangxi deyiyuan Medical Investment Center (limited partnership) jointly funded the establishment of Sinopharmholding medical supply chain service (Guangxi) Co., Ltd., with contributions of RMB 6.12 million, RMB 5.88 million and RMB 8million respectively. Guorun medical entrusts its voting right to the company, and the company holds 60% of the voting right ofSinopharm holding medical supply chain services (Guangxi) Co., Ltd.

a. On 20 April 2021, Guangdong Dong Fang Uptodate & Special Medicines Co., Ltd. was renamed as Sinopharm HoldingGuangdong Dong Fang Uptodate & Special Medicines Co., Ltd.

b. On 12 July 2021, Sinopharm Accord Medical Supply Chain (Shenzhen) Co., Ltd. was renamed as Sinopharm AccordMedical Devices (Shenzhen) Co., Ltd.

c. On 5 July 2021, Guoda pharmacy Jilin Co., Ltd. has completed the industrial and commercial cancellation, and the

cancellation announcement period is from June 10, 2021 to June 30, 2021.

d. On 14 December 2020, the Group invested RMB1,000.00 thousand to set up Liaoning Huludao Guoda pharmacy Co., Ltd.

As at 30 June 2021, RMB500.00 thousand was paid.

e. On 28 December 2020, the Group and Wenshui Weikang Trading Co., Ltd. invested RMB16,320.00 thousand and

RMB15,680.00 thousand to set up Guoda Wanmin Huimin Kangwei pharmacy Luliang Co., Ltd, the group holds 51% of itsequity. As at 30 June 2021, payment has been completed.

f. On 15 March 2021, the Group acquired 70% equity in Disheng Pharmaceutica from Xishuangbanna Disheng Pharmaceutical

Co., Ltd. for RMB14,130.00 thousand, which formed a business combination not involving enterprises under common control.The acquisition was completed on 15 March 2021 and was included in the scope of consolidation.

g. On 15 March 2021, the Group acquired 70% equity in Disheng chain from Xishuangbanna Disheng Pharmaceutical Co.,Ltd.

for RMB238,000.00 thousand, which formed a business combination not involving enterprises under common control. Theacquisition was completed on 15 March 2021 and was included in the scope of consolidation.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIIInterests in other entities (Continued)
1.Interests in subsidiaries (Continued)

(2) Important non-wholly owned subsidiary

SubsidiariesMinority shareholding ratioProfit or loss attributable to minority shareholders in the current periodDispatch of dividends to minority shareholders in the current periodMinority shareholders' equity
Guoda Pharmacy40.00%79,549,416.99-2,028,470,458.01

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

Subsidiaries30 June 202131 December 2020
Current assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilitiesCurrent assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal liabilities
Guoda Pharmacy9,335,400,322.927,008,855,001.2116,344,255,324.139,037,608,731.161,459,822,617.0810,497,431,348.248,886,545,970.796,570,327,751.0415,456,873,721.838,541,421,518.151,375,989,559.149,917,411,077.29
SubsidiariesFor the six months ended 30 June 2021For the six months ended 30 June 2020
Operating revenueNet profitTotal comprehensive incomeCash flow from operating activitiesOperating revenueNet profitTotal comprehensive incomeCash flow from operating activities
Guoda Pharmacy10,841,326,194.08263,262,365.37263,262,365.37786,526,215.878,613,020,309.15248,037,573.90248,037,573.90470,794,143.55

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

VII. Interests in other entities (Continued)

2. Interests in associates

Principal place of businessPlace of incorporationNature of businessShareholding(%)Accounting
DirectIndirect
Associates
Main Luck PharmaceuticalShenzhenShenzhenManufacturing35.19%-Equity
Zhijun SuzhouSuzhouSuzhouManufacturing33.00%-Equity
Sinopharm ZhijunShenzhenShenzhenManufacturing49.00%-Equity
Zhijun TradeShenzhenShenzhenCommercial49.00%-Equity
Zhijun PingshanShenzhenShenzhenManufacturing49.00%-Equity
Sinopharm ShyndecShanghaiShanghaiBusiness service industry16.28%-Equity
Shanghai BeiyiShanghaiShanghaiCommercial-26.00%Equity
Shanghai LiyiShanghaiShanghaiCommercial-35.00%Equity
Guangdong JienuoGuangzhouGuangzhouCommercial-29.00%Equity
Dongyuan accordHeyuanHeyuanCommercial-45.00%Equity
Shanghai RenbeiShanghaiShanghaiCommercial-30.00%Equity
Guangdong JianhuiZhanjiangZhanjiangPublic-Private-Partnership-10.00%Equity

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

According to the articles of association of Guangdong Jianhui company, the board of directors is composed of five directors,one of whom is appointed by the company, accounting for 20% of the voting rights. Therefore, the group has a significantimpact on Guangdong Jianhui, which is an associate of the group.

Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the votingrights but not having significant influence:

Sinopharm Shyndec has established a board of directors, which is responsible to the shareholders' meeting. It has ninemembers, of which the group appoints one director. The resolution of the board of directors is one person, one vote,accounting for 11.11% of its voting rights. The Group has a significant influence on Sinopharm Shyndec.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VII. Interests in other entities (Continued)

2. Interests in associates (Continued)

Main financial information of important associates:

30 June 2021/ For the six months ended 30 June 20211 January 2020/ For the six months ended 30 June 2020
Sinopharm ShyndecZhijun MedicineMain Luck PharmaceuticalSinopharm ShyndecZhijun MedicineMain Luck Pharmaceutical
Current assets11,543,472,621.581,310,424,165.501,150,192,274.2410,162,475,190.651,176,812,039.371,076,146,345.00
Non-current assets8,262,496,257.36241,317,313.08120,177,914.288,087,979,595.07238,613,242.87124,495,504.04
Total assets19,805,968,878.941,551,741,478.581,270,370,188.5218,250,454,785.721,415,425,282.241,200,641,849.04
Current liabilities7,742,313,859.56621,599,563.08246,923,526.166,194,362,158.11541,117,019.88275,509,215.17
Non-current liabilities1,879,414,378.304,398,795.458,120,000.002,236,726,740.995,822,904.958,120,000.00
Total liabilities9,621,728,237.86625,998,358.53255,043,526.168,431,088,899.10546,939,924.83283,629,215.17
Non-controlling interests1,731,996,575.52--1,688,157,191.81--
Shareholders’ equity attributable to shareholders of the parent8,452,244,065.56925,743,120.051,015,326,662.368,131,208,694.81868,485,357.41917,012,633.87
Portion of net assets calculated by shareholding ratio1,376,025,333.87453,614,128.80357,293,452.481,323,760,775.52425,557,825.11322,696,745.87
Carrying value of equity investment in joint ventures1,376,025,333.87453,614,128.80357,293,452.481,323,760,775.52425,557,825.11322,696,745.87
Operating revenue7,632,136,688.61746,410,222.02476,292,028.696,211,855,587.54659,730,341.51475,122,136.41
Net profit541,049,057.9257,257,762.6498,308,111.37427,914,866.0435,512,234.8898,199,603.82
Total comprehensive income541,447,429.5357,257,762.6498,308,111.37428,665,399.7535,512,234.8898,199,603.82
Dividends received from joint ventures this period16,714,220.20--16,714,220.20-63,342,000.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VII. Interests in other entities (Continued)

2. Interests in associates (Continued)

Summary financial information of unimportant joint ventures and associated enterprises:

Excess losses incurred by joint ventures or associates:

Accumulated unrecognized losses in the previous periodUnrecognized loss in the current period (or net profit shared in the current period)Accumulated unrecognized losses at the end of the period
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd(11,193,619.06)-(11,193,619.06)

On 11 May 2021, the court ruled that Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd. was bankrupt and

designated the local government as the bankruptcy administrator. At present, it is in the stage of creditor's rightdeclaration.

30 June 2021/ For the six months ended 30 June 20211 January 2020/ For the six months ended 30 June 2020
associated enterprises:
Carrying value of equity investment240,672,877.06215,004,281.49
Net profit25,668,595.5728,478,625.69
Total comprehensive income25,668,595.5728,478,625.69

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments

1. Classification of financial instruments

30 June 2021:

Financial assetsFinancial assets at fair value through profit or lossFinancial assets at amortised costFinancial assets at fair value through other comprehensive incomeTotal
Mandatorily requiredMandatorily requiredDesignated
Cash and bank balances-5,876,638,427.56--5,876,638,427.56
Notes receivable-606,070,192.39--606,070,192.39
Accounts receivable-17,761,176,449.25--17,761,176,449.25
Receivable financing--345,906,887.55-345,906,887.55
Other receivables-661,339,404.62--661,339,404.62
Other non-current financial assets117,974,908.51---117,974,908.51
Other equity instrument investment---99,488,340.2899,488,340.28
117,974,908.5124,905,224,473.82345,906,887.5599,488,340.2825,468,594,610.16
Financial liabilitiesFinancial liabilities at amortised cost
Short-term borrowings4,632,933,904.39
Notes payable6,780,425,089.17
Accounts payable9,642,504,836.50
Other payables1,530,963,581.23
Non-current liabilities due within 1 year798,170,618.10
Lease liabilities1,361,131,352.80
Long-term borrowings61,633,794.44
24,807,763,176.63

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

1. Classification of financial instruments (Continued)

31 December 2021:

Financial assetsFinancial assets at fair value through profit or lossFinancial assets at amortised costFinancial assets at fair value through other comprehensive incomeTotal
Mandatorily requiredMandatorily requiredDesignated
Cash and bank balances-5,998,204,295.87--5,998,204,295.87
Notes receivable-622,115,477.04--622,115,477.04
Accounts receivable-13,799,971,014.22--13,799,971,014.22
Receivable financing--1,404,987,700.38-1,404,987,700.38
Other receivables-535,228,747.69--535,228,747.69
Other non-current financial assets120,972,350.24---120,972,350.24
Other equity instrument investment---99,488,340.2899,488,340.28
120,972,350.2420,955,519,534.821,404,987,700.3899,488,340.2822,580,967,925.72
Financial liabilitiesFinancial liabilities at amortised cost
Short-term borrowings1,612,187,020.12
Notes payable7,520,165,274.69
Accounts payable7,697,451,142.50
Other payables1,599,166,881.14
Non-current liabilities due within 1 year748,732,059.89
Lease liabilities1,303,054,163.90
Long-term borrowings31,637,173.89
20,512,393,716.13

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

2. Transfer of financial assets

Transferred financial assets that are not derecognised in their entirety

As at 30 June 2021, the Group had endorsed commercial acceptance bills (the "Endorsed Bills")with a carrying amount of RMB125,089.80 (30 June 2020: 4,095,283.92) to certain of itssuppliers to settle accounts payable due to such suppliers and the Group had endorsed bankacceptance bills with a carrying amount of RMB20,070,999.69 (30 June 2020: 23,843,867.66)to certain of its suppliers to settle accounts payable due to such suppliers. In the opinion of theGroup, the Group has retained substantially all the risks and rewards, which include defaultrisks relating to such Endorsed Bills and Discounted Bills. Accordingly, it continued to recognisethe full carrying amounts of those Bills and the associated accounts payable settled.Subsequent to the Endorsement and Discount, the Group did not retain any rights on the use ofthose Bills, including the sale, transfer or pledge of those Bills to any other third parties.

As at 30 June 2021, the total carrying value of accounts payable settled by the Group wasRMB20,196,089.49 (31 December 2020: RMB27,939,151.58).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

2. Transfer of financial assets (Continued)

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

As at 30 June 2021, the Group had endorsed bank acceptance bills (the "Endorsed Bills") witha carrying amount of RMB754,753,155.51 (31 December 2020: RMB1,283,369,787.75) tocertain of its suppliers to settle accounts payable due to such suppliers. As at 30 June 2021,the Group had discounted bank acceptance bills (the "Discounted Bills") with a carrying amountof RMB1,067,286,554.94 (31 December 2020: RMB330,472,883.05) to banks. As at 30 June2021, those Bills had a maturity of 1 to 12 months at the end of the reporting period. Inaccordance with the Law of Negotiable Instruments, the holders of the derecognised bills havea right of recourse against the Group if the accepting banks default (the "ContinuingInvolvement"). In the opinion of the Group, the Group has transferred substantially all risks andrewards relating to those Bills. Accordingly, it has derecognised the full carrying amounts ofthose Bills and the associated accounts payable. The maximum exposure to loss from theGroup's Continuing Involvement in the derecognised bills and the undiscounted cash flows torepurchase these derecognised bills is equal to their carrying amounts. In the opinion of theGroup, the fair values of the Group’s Continuing Involvement in the derecognised bills are notsignificant.

During 2021, the Group has not recognised any gain or loss on the date of transfer. No gain orloss was recognised from derecognised financial assets in which the Continuing Involvementexists, both during the year or cumulatively.

During 2021, the Group has not recognised any gain or loss on the date of transfer of thederecognised bills. No gains or losses were recognised from the Continuing Involvement, bothduring the year or cumulatively.

As part of its normal business, the Group entered into an accounts receivable factoring withoutrecourse with banks and transferred certain accounts receivable to banks. In the opinion of thedirectors, the Group has transferred substantially all risks and rewards under the arrangement.Accordingly, it has derecognised the full carrying amounts of the associated accountsreceivable. The original carrying value of the derecognised accounts receivable transferredunder the Arrangement that have not been settled as at 30 June 2021 amounted toRMB695,181,891.24 (31 December 2020: RMB1,409,768,709.18).

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments

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

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

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

Credit risk

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

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

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

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

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

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

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

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

Definition of credit-impaired financial assets

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

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

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

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

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

(3) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s

financial difficulty, having granted to the borrower concession(s) that the lender(s) would not

otherwise consider;

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

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

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Credit risk (Continued)

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

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

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

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

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

Both the assessment of a significant increase in credit risk and the calculation of the ECL involveforward-looking information. The Group recognises key economic ratios that influence credit riskand the ECL by historical data analysis.

As at 30 June 2021, there was no evidence of a significant increase in credit risk.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk

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

30 June 2021
Within 1 year1 to 2 years2 to 5 yearsAbove 5 yearsTotal
Short-term borrowings4,709,466,709.01---4,709,466,709.01
Long-term borrowings-2,431,600.0062,818,460.27-65,250,060.27
Notes payable6,780,425,089.17---6,780,425,089.17
Accounts payable9,642,504,836.50---9,642,504,836.50
Other payables1,530,963,581.23---1,530,963,581.23
Non-current liabilities due within 1 year875,756,920.06---875,756,920.06
Lease liabilities-647,956,518.10715,415,984.3196,740,307.761,460,112,810.17
23,539,117,135.97650,388,118.10778,234,444.5896,740,307.7625,064,480,006.41

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Liquidity risk (Continued)

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

31 December 2020
Within 1 year1 to 2 years2 to 5 yearsAbove 5 yearsTotal
Short-term borrowings1,630,237,831.47---1,630,237,831.47
Long-term borrowings-1,216,600.0032,313,062.78-33,529,662.78
Notes payable7,520,165,274.69---7,520,165,274.69
Accounts payable7,697,451,142.50---7,697,451,142.50
Other payables1,599,166,881.14---1,599,166,881.14
Non-current liabilities due within 1 year866,553,230.12---866,553,230.12
Lease liabilities-607,074,838.58682,420,061.0586,860,654.771,376,355,554.40
19,313,574,359.92608,291,438.58714,733,123.8386,860,654.7720,723,459,577.10

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

3. Risks of financial instruments (Continued)

Market risk

Interest rate risk

The Group's interest rate risk arises from long-term borrowings from banks. Financial liabilitiesissued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issuedat fixed rates expose the Group to fair value interest rate risk. The Group determines the relativeproportions of its fixed rate and floating rate contracts depending on the prevailing marketconditions. As at 30 June 2021, if the floating interest rates of the long-term interest-bearingborrowings increased or decreased by 50 base points, while other factors did not change, theGroup’s net income would decrease or increase by RMB59,087.67 (31 December 2020: if thefloating interest rates of the long-term interest-bearing borrowings increased or decreased by 50base points, while other factors did not change, the Group’s net income would increase ordecrease by RMB97,072.60).

The Group’s finance department at its headquarters continuously monitors the interest rateposition of the Group. Increases in interest rates will increase the cost of new borrowings and theinterest expenses with respect to the Group’s outstanding floating rate borrowings and, therefore,could have a material adverse effect on the Group’s financial position. The Group’s managementlayer would make adjustments with reference to the latest market conditions which are interestrate swap agreements to mitigate its exposure to interest rate risk. During 2021 and 2020, theGroup had not entered into any interest rate swap agreements.

For the year ended 30 June 2021, the Group has long-term interest-bearing borrowings withfloating interest rates amounting to RMB31,600,000.00 (31 December 2020: RMB31,600,000.00).And long-term interest-bearing borrowings with fixed interest rates amounting toRMB30,000,000.00 (31 December 2020: nil).

Currency risk

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

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

VIII Risks related to financial instruments (Continued)

4. Capital management

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

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

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

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

30 June 202131 December 2020
Gearing ratio60.43%57.35%

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

IX. Disclosure of fair value

1. Assets and liabilities at fair value

30 June 2021:

Input applied in the measurement of fair value
Quoted prices in active marketsSignificant observable inputsSignificant unobservable inputsTotal
Level 1Level 2Level 3
Continuous measurement of fair value
Receivable financing-345,906,887.55-345,906,887.55
Other investment in equity instruments-99,488,340.28-99,488,340.28
Other non-current financial assets--117,974,908.51117,974,908.51
-445,395,227.83117,974,908.51563,370,136.34

31 December 2020

Input applied in the measurement of fair value
Quoted prices in active marketsSignificant observable inputsSignificant unobservable inputsTotal
Level 1Level 2Level 3
Continuous measurement of fair value
Receivable financing-1,404,987,700.38-1,404,987,700.38
Other investment in equity instruments-99,488,340.28-99,488,340.28
Other non-current financial assets--120,972,350.24120,972,350.24
-1,504,476,040.66120,972,350.241,625,448,390.90

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

IX. Disclosure of fair value(Continued)

2. Assets and liabilities disclosed at fair value

30 June 2021:

Input applied in the measurement of fair value
Quoted prices in active marketsSignificant observable inputsSignificant unobservable inputsTotal
Level 1Level 2Level 3
Long-term borrowings-61,633,794.44-61,633,794.44

3. Estimation of fair value

The following are the book value and fair value of financial instruments of the Group, excluding those that haveimmaterial difference in book value and fair value:

Carrying amountFair value
30 June 202131 December 202030 June 202131 December 2020
Financial liabilities----
Long-term borrowings61,633,794.4431,637,173.8961,633,794.4431,637,173.89

Management has assessed that the fair values of cash and cash equivalents, trade receivables, receivablefinancing, other receivables, short-term borrowings, notes payable, trade payables, other payables, non-currentliabilities due within 1 year as well as other short-term financial assets and liabilities. Due to the short remainingmaturities of these instruments, the fair value approximated to the carrying amount.

The financial controller of the Group takes the responsibility to formulate policies and procedures related tofinancial instrument fair value measurements and directly reports to the CFO and the audit committee. On eachbalance sheet date, the financial department analyses the variation of the fair value of financial instruments anddetermines the inputs applicable to valuation. The valuation is required to be approved by the CFO.

The fair values of financial assets and liabilities are the amounts at which the instrument could be exchanged ordebts could be settled in an arm’s length transaction between knowledgeable and willing parties, other than in aforced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

The fair values of short-term and long-term borrowings, and long-term payables have been calculated bydiscounting the expected future cash flows using market rates of return currently available for other financialinstruments with similar terms, credit risk and remaining maturities. As at 30 June 2021, the Group’s own non-performance risk for short-term and long-term borrowings was assessed to be insignificant.

For an equity instrument of listed entities, the market price is used to determine fair value. For an equity instrumentof non-listed entities, the recent equity transaction consideration or the market comparable company model is usedto estimate fair value. The Group believes that the estimated fair value by the valuation method is rational, and alsothe most sufficient value at the balance sheet date.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

IX. Disclosure of fair value(Continued)

4. Unobservable inputs

Other non-current financial assets were the fund shares of Qirui Port Investment Center LP of Ningbo MeishanBonded Port subscribed by the Group. For the determination of the fair value of the investment, after referring tothe net assets of Qirui Port Investment Center LP of Ningbo Meishan Bonded Port on 30 June 2021, which hasimplemented the new financial instrument standards, the result was calculated and determined according to thefund share proportion owned by the company.

A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonablefluctuation of the unobservable inputs.

5. Transfers between levels of fair value measurement

At 30 June 2021 and 31 December 2020, there were no transfers of fair value measurements between Level 1 andLevel 2.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions

1. Parent

Parent’s nameRegistered addressNature of businessShare capitalProportion of ownership interest in the CompanyProportion of voting power in the Company
Sinopharm Group Co., Ltd.ShanghaiIndustrial investment holding, trustee of a pharmaceutical enterprise, assets reorganization, distribution and retail of medicines and pharmaceutical products, etc.3,120,656,191.0056.06%56.06%

The ultimate controlling party of the Company is CNPGC.

2. Subsidiaries

Refer to Note VII 1 for details of subsidiaries.

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

3. Associates

Refer to Note VII 2 for details of associates.

The situation of other joint ventures or associates that have related party transactions with thecompany during the current period or the balance of the related party transactions with the companyin the previous period is as follows:

Please refer to Note X 5 for details.

4. Other related parties

Company nameRelated party relationships
Lanzhou Biotechnology Development Co., Ltd.Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.Controlled by CNPGC
China National Pharmaceutical Foreign Trade CorporationControlled by CNPGC
Sinopharm Yixin Pharmaceutical Co., Ltd.Controlled by CNPGC
Foshan Winteam Pharmaceutical Group Ltd.Controlled by CNPGC
Southwest Pharmaceutical Co., Ltd.Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co., Ltd.Controlled by CNPGC
Taiji Group Chongqing Fuling Pharmaceutical Co., Ltd.Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.Controlled by CNPGC
Taiji Group Chongqing Tongjunge Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.Controlled by CNPGC
Shanghai Shangsheng Biological Products Co., Ltd.Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd.Controlled by CNPGC
China National Pharmaceutical Industry Co., Ltd.Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.Controlled by CNPGC

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm ChuanKang Pharmaceutical Co., Ltd.Controlled by CNPGC
Huayi Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Weiqida Pharmaceutical Co., Ltd.Controlled by CNPGC
Chengdu Institute of Biological Products Co., Ltd.Controlled by CNPGC
Sinopharm Group Yibin Pharmaceuticals Co., Ltd.Controlled by CNPGC
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd.Controlled by CNPGC
Wuhan Zhongsheng Yujin Biological Medicine Co., Ltd.Controlled by CNPGC
Shantou Jinshi Powder Injection Co., Ltd.Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Wuhan Blood Products Co., Ltd.Controlled by CNPGC
Taiji GroupControlled by CNPGC
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd.Controlled by CNPGC
Sinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd.Controlled by CNPGC
Taiji Group Zhejiang Dongfang Pharmaceutical Co., Ltd.Controlled by CNPGC
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Sanyi Medicine (Wuhu) Co., Ltd.Controlled by CNPGC
Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd.Controlled by CNPGC
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd.Controlled by CNPGC
Shanghai Zeno Biotechnology Co., Ltd.Controlled by CNPGC
Sinopharm Guangdong Global Pharmaceutical Co., Ltd.Controlled by CNPGC
Fujian Chentian Jinling Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Foreign Trade (Beijing) Co., Ltd.Controlled by CNPGC
Foshan Chengnan Fengliaoxing Medical Hospital Co., Ltd.Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co., Ltd.Controlled by CNPGC
Chongqing Tongjunge Co., Ltd.Controlled by CNPGC
Sichuan Taiji Pharmacy Chain Co., Ltd.Controlled by CNPGC
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd.Controlled by CNPGC
China Sinopharm International CorporationControlled by CNPGC
Guangdong Yifang Pharmaceutical Co., Ltd.Controlled by CNPGC

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.Controlled by CNPGC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd.Controlled by CNPGC
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd.Controlled by CNPGC
Sinopharm Group Financial Co., Ltd.Controlled by CNPGC
Innostar Biotechnology Nantong Co., LtdControlled by CNPGC
Hubei Sinopharm Zhonglian Medicine Co., Ltd.Controlled by CNPGC
Taiji Group Gansu Tianshui Xihuang Ejiao Co., Ltd.Controlled by CNPGC
Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd.Controlled by CNPGC
China National of Traditional & Herbal Medicine Co., Ltd.Controlled by CNPGC
Sinopharm Holding Sub Marketing Center Co., Ltd.Controlled by Sinopharm Group
China National Medicines Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Henan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Pingdingshan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.Controlled by Sinopharm Group
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anshan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Jiankun (Beijing) Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Shanghai International Pharmaceutical Trade Co., Ltd.Controlled by Sinopharm Group
China National Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd.Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Fuzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anhui Huaning Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Benxi Co., Ltd.Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holdings Beijing Huahong co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanghai Biomedicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Chifeng Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Pu’er Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hubei Likang Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd.Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Bayannur Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Changsha Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Yili Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Kunming Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Changde Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Ordos Co., Ltd.Controlled by Sinopharm Group
Sinopharm Inner Mongolia Medical Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd.Controlled by Sinopharm Group
China National Medical Device (Hui Zhou) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Linfen Co., Ltd.Controlled by Sinopharm Group
Sinopharm Device (Guangdong) Medical Technology Co., Ltd.Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co., Ltd.Controlled by Sinopharm Group
Sinopharm Shenzhen Medicine Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd.Controlled by Sinopharm Group
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd.Controlled by Sinopharm Group
Sinopharm Medical Instrument (Hainan) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Wuhan Hongshen Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm (Dalian) Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Linyi Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Hebei Medical Instrument Co., Ltd.Controlled by Sinopharm Group
Liaoning Pilot Free Trade Zone China Medical Device Technology Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jinzhong Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Med-Tech Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shiyan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Lianyungang Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Baotou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Dezhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co., Ltd.Controlled by Sinopharm Group
China Medical Equipment Shandong Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Guang’an Co., Ltd..Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd.Controlled by Sinopharm Group
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd.Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co., Ltd.Controlled by Sinopharm Group
Sinopharm Pharmaceutical Logistics Co., Ltd.Controlled by Sinopharm Group
Sinopharm Logistics Beijing Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co., Ltd.Controlled by Sinopharm Group
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Trading Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shangqiu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anshun Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Tongren Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Guizhou (Zunyi) Medical Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Cangzhou Medicine Co., Ltd.Controlled by Sinopharm Group
Shanghai Shengxin Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Baise Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Honghe Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Xingtai Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Chuxiong Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medical Management Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd.Controlled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Chengde Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Guangxi Medical Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Handan Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Wuhan Guoda Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Professional Pharmacy (Hainan) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company LimitedControlled by Sinopharm Group
Sinopharm Holding Ningde Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Dalian Special Drugs Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Medical Devices Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding (Shandong) Medicine Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Professional Pharmacy Songyuan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Medical Instrument (Jiangmen) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Zhuhai Medical Instrument Co., Ltd.Controlled by Sinopharm Group
Yuxi Sinopharm Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Hunan Prov. Medical Equipment Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Qianxi’nan Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Kunming Pharmacy Co., Ltd.Controlled by Sinopharm Group
Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Lerentang Langfang Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Zhenjiang Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medical Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Hejin Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jilin Chain Store Co., Ltd.Controlled by Sinopharm Group
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd.Controlled by Sinopharm Group
Sinopharm Medical Instrument Guangxi Medical Technology Co., Ltd.Controlled by Sinopharm Group
Sinopharm Medical Instrument (Foshan) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Device (Guangdong) Medical Technology Co., Ltd.Controlled by Sinopharm Group
Sinopharm Group Shanghai Co., Ltd.Controlled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Guizhou Yitong Medicine Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Shanxi Linfen Co., Ltd.Controlled by Sinopharm Group

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Jilin Medicine Device Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd.Controlled by Sinopharm Group
Sinopharm Chemical Reagent Co., Ltd.Controlled by Sinopharm Group
Sinopharm Holding Huaian Co., Ltd.Controlled by Sinopharm Group
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd.Associate of CNPGC
Sinopharm Group Shanxi Ruifulai Co., Ltd.Associate of CNPGC
SINO-TCM Shanghai Medicine & Medicinal Materials Co., Ltd.Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co., Ltd.Associate of CNPGC
Yichang Humanwell Pharmaceutical Co., Ltd.Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.Associate of Sinopharm Group
Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd.Associate of Sinopharm Group
Sinopharm Holding Chuangke Yuanzhe Medical Technology (Shanghai) Co., Ltd.Associate of Sinopharm Group
Sinopharm Health Online Co., Ltd.Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co., Ltd.Associate of Sinopharm Group
Sinopharm Holding (China) Financing Lease Co., Ltd.Associate of Sinopharm Group
Sinopharm Nutraceuticals (Shanghai) Co., Ltd.Associate of Sinopharm Group
Sinopharm Anhui Great Health Industry Co., Ltd.Associate of Sinopharm Group
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.Minority shareholders of a subsidiary
Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd.Minority shareholders of a subsidiary
Lerentang Investment Group Co., Ltd.Minority shareholders of a subsidiary
Shenyang Pharmaceutical Co., Ltd.Minority shareholders of a subsidiary
Hunan Minshengtang Biotechnology Co., Ltd.Minority shareholders of a subsidiary
Guangdong Jiyuantang Development Co., Ltd.Minority shareholders of a subsidiary
Xishuangbanna Disheng Pharmaceutical Co., Ltd.Minority shareholders of a subsidiary
Beijing Huafang Investment Co., Ltd.Minority shareholders of a subsidiary
Gu HaiqunMinority shareholders of a subsidiary
Shenzhen Jiufeng Investment Co., Ltd.Minority shareholders of a subsidiary
Zhang HaiyanMinority shareholders of a subsidiary
Taishan Qunkang Pharmacy Co., Ltd.Minority shareholders of a subsidiary
Pu'er Songmao Medicine Group Co., Ltd.Minority shareholders of a subsidiary

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

4. Other related parties (Continued)

Company nameRelated party relationships
Hangzhou Xihu District Commercial Co., Ltd.Minority shareholders of a subsidiary
Jilin Province Yihe Investment Consulting Co., Ltd.Minority shareholders of a subsidiary
Du LongfengMinority shareholders of a subsidiary
Li HuichunMinority shareholders of a subsidiary
Zhang ZhenfangMinority shareholders of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co., Ltd.Minority shareholders of a subsidiary
Xiong XinyuanMinority shareholders of a subsidiary
Shenyang Shengdiou Trading Co., Ltd.Minority shareholders of a subsidiary
Shanghai Baizhong Business Development (Group) Co., Ltd.Minority shareholders of a subsidiary
Zhang YechuanFamily members of the actual controller of minority shareholders of a subsidiary
Wang YangFamily members of the actual controller of minority shareholders of a subsidiary
Li FangThe actual controller of minority shareholders of a subsidiary
Gu JinhuaThe actual controller of minority shareholders of a subsidiary
Nanjing Yuanguang Trading Co., Ltd.Companies owned by minority shareholders of a subsidiary
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.Companies owned by minority shareholders of a subsidiary
Taishan Xiangranhui Trade Co., Ltd.Companies owned by minority shareholders of a subsidiary
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd.Companies owned by minority shareholders of a subsidiary
Shenzhen Wanwei Medicine Trading Co., Ltd.Subsidiary of Main Luck Pharmaceutical
Jiangsu Wanbang Pharmacy Marketing Co., Ltd.Subsidiary of Fosun Pharm
Chongqing Yaoyou Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Shanghai Henlius Biopharmaceuticals Co., Ltd.Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co., Ltd.Subsidiary of Fosun Pharm
Jinzhou Avanc Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co., Ltd.Subsidiary of Fosun Pharm
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited CompanySubsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Other related parties (Continued)

Company nameRelated party relationships
GlaxoSmithKline Pharmaceuticals (Suzhou) Co., Ltd.Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co., Ltd.Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Guilin Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Jinzhou Avanc Medicine Co., Ltd.Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Hunan Yaoyou Medicines Co., Ltd.Subsidiary of Fosun Pharm
Suzhou Laishi Transfusion EquipmentSubsidiary of Fosun Pharm
Chengdu List Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Shenzhen Hengsheng HospitalSubsidiary of Fosun Pharm
Foshan Chancheng Central Hospital Co., Ltd.Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co., Ltd.Subsidiary of Fosun Pharm
Shenzhen Chindex Medical Beauty ClinicSubsidiary of Fosun Pharm
Lecong Supply and Market Group Shunketang Medicine Co., Ltd.Subsidiary of Fosun Pharm
Chindex Shanghai International Trading Co., Ltd.Subsidiary of Fosun Pharm
Dalian Yalifeng Biopharmaceutical Co., Ltd.Subsidiary of Fosun Pharm
Chindex Shanghai International Trading Co., Ltd.Subsidiary of Fosun Pharm
Naton Biotechnology (Beijing) Co., Ltd.Subsidiary of Fosun Naton

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties

(1) Related party transactions - goods and services

Purchase of goods and receiving of services from related parties

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Holding Sub Marketing Center Co., Ltd.Purchase of goods567,957,995.488,910,000,000.00NO548,051,256.56
China National Medicines Co., Ltd.Purchase of goods378,976,943.17NO309,588,426.46
Sinopharm Holding Shanxi Co., Ltd.Purchase of goods291,169,816.86NO302,659,086.81
Sinopharm Holding Shenyang Co., Ltd.Purchase of goods218,687,438.90NO91,252,243.44
Sinopharm Lerentang Medicine Co., Ltd.Purchase of goods212,774,916.08NO144,033,107.71
Sinopharm Holding Shanxi Co., Ltd.Purchase of goods204,598,556.55NO168,218,597.08
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.Purchase of goods132,068,068.87NO76,699,225.00
Sinopharm Group Co., Ltd.Purchase of goods130,357,912.20NO101,625,946.62
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.Purchase of goods83,397,212.70NO60,511,824.27
Jiangsu Wanbang Pharmacy Marketing Co., Ltd.Purchase of goods80,954,984.16NO97,184,029.57
Lanzhou Biotechnology Development Co., Ltd.Purchase of goods68,090,371.68NO48,840,600.00
Sinopharm Holding Yangzhou Co., Ltd.Purchase of goods51,592,777.55NO38,126,655.70
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.Purchase of goods45,696,541.00NO34,152,784.08
Sinopharm Holding Lunan Co., Ltd.Purchase of goods40,999,864.55NO26,448,807.82
Sinopharm Holding Inner Mongolia Co., Ltd.Purchase of goods40,632,946.46NO35,570,487.58
Chongqing Yaoyou Pharmaceutical Co., Ltd.Purchase of goods37,011,667.64NO26,949,678.43
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd.Purchase of goods36,421,939.26NO82,302.92
China National Pharmaceutical Foreign Trade CorporationPurchase of goods31,428,461.51NO8,156,658.48
Sinopharm Holding Jilin Co., Ltd.Purchase of goods30,157,192.13NO11,181,666.83
Sinopharm Yixin Pharmaceutical Co., Ltd.Purchase of goods28,345,022.18NO8,249,563.42

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Shanghai Henlius Biopharmaceuticals Co., Ltd.Purchase of goods26,663,502.358,910,000,000.00NO-
Sinopharm Holding Fujian Co., Ltd.Purchase of goods26,242,880.93NO21,032,808.12
Main Luck PharmaceuticalPurchase of goods25,917,861.73NO16,716,318.29
Foshan Winteam Pharmaceutical Group Ltd.Purchase of goods23,659,412.81NO11,624,754.37
Sinopharm Holding Henan Co., Ltd.Purchase of goods22,693,352.04NO22,896,338.50
Sinopharm Holding Shandong Co., Ltd.Purchase of goods22,619,090.27NO9,870,222.38
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd.Purchase of goods19,472,073.81NO16,213,399.66
Sinopharm Group Guangdong Medicine Device Co., Ltd.Purchase of goods19,340,530.98NO-
Southwest Pharmaceutical Co., Ltd.Purchase of goods17,542,194.64NO-
Sinopharm Holding Beijing Co., Ltd.Purchase of goods17,360,821.15NO32,520,572.80
Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd.Purchase of goods17,310,598.75NO-
Sinopharm Holding Jiangsu Co., Ltd.Purchase of goods16,730,745.30NO10,137,097.99
Sinopharm Holding Tongliao Co., Ltd.Purchase of goods16,039,594.19NO5,810,230.35
Sinopharm ZhijunPurchase of goods15,931,558.84NO12,126,208.66
Sinopharm Group Guorui Medicine Co., Ltd.Purchase of goods15,180,518.65NO2,675,445.41
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.Purchase of goods14,889,163.04NO4,168,839.16
Chengdu Rongsheng Pharmacy Co., Ltd.Purchase of goods14,584,099.03NO8,518,290.00
Tibet Yaoyou Medicines Co.,Ltd.Purchase of goods14,011,950.98NO10,576,537.72
Sinopharm Holding Hunan Co., Ltd.Purchase of goods13,204,231.22NO8,970,281.71

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Shenzhen Wanwei Medicine Trading Co., Ltd.Purchase of goods13,151,952.248,910,000,000.00NO11,467,474.49
Yichang Humanwell Pharmaceutical Co., Ltd.Purchase of goods12,457,905.62NO7,649,748.62
Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.Purchase of goods12,051,455.59NO3,507,017.31
Sinopharm Holding Pingdingshan Co., Ltd.Purchase of goods11,979,529.78NO15,984,508.75
Sinopharm Holding Xiamen Co., Ltd.Purchase of goods11,957,608.14NO8,217,598.96
Jinzhou Avanc Pharmaceutical Co., Ltd.Purchase of goods11,829,570.34NO7,185,929.54
China Otsuka Pharmaceutical Co., Ltd.Purchase of goods11,763,554.47NO6,256,674.56
Zhijun PingshanPurchase of goods10,838,947.13NO11,851,634.26
Sinopharm Holding Changzhou Co., Ltd.Purchase of goods10,160,654.93NO11,126,503.85
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.Purchase of goods9,851,650.37NO5,872,922.23
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.Purchase of goods9,697,409.23NO7,471,038.17
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd.Purchase of goods9,191,104.74NO989,799.95
Sinopharm Holding Jinzhou Co., Ltd.Purchase of goods8,931,064.40NO3,117,332.78
Shanghai Chaohui Pharmaceutical Co., Ltd.Purchase of goods7,770,056.47NO3,912,114.41
Sinopharm Holding Ningxia Co., Ltd.Purchase of goods7,527,437.99NO12,243,904.08
Sinopharm Holding Anshan Co., Ltd.Purchase of goods7,386,999.04NO584,206.98
Sinopharm Group Shanxi Medical Devices Co., Ltd.Purchase of goods6,568,011.43NO4,980,871.81
Jiangxi Erye Medicine Marketing Co., Ltd.Purchase of goods6,315,288.30NO6,456,636.49
Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co., Ltd.Purchase of goods6,180,889.71NO7,522,898.44

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd.Purchase of goods5,932,515.368,910,000,000.00NO2,481,349.10
Sinopharm Holding Jinan Co., Ltd.Purchase of goods5,593,031.01NO3,208,390.44
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.Purchase of goods5,438,916.55NO4,606,542.22
Taiji Group Chongqing Fuling Pharmaceutical Co., Ltd.Purchase of goods5,323,305.69NO-
Sinopharm Jiankun (Beijing) Medicine Co., Ltd.Purchase of goods4,529,929.13NO1,444,828.32
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.Purchase of goods4,477,305.68NO1,124,358.11
Sinopharm Advanced (Shanghai) Medicine Device Co., Ltd.Purchase of goods4,359,697.01NO649,215.02
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.Purchase of goods4,230,984.00NO1,450,504.18
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.Purchase of goods4,051,307.75NO2,283,462.26
Taiji Group Chongqing Tongjunge Pharmaceutical Co., Ltd.Purchase of goods3,955,453.47NO-
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.Purchase of goods3,765,974.30NO2,745,736.27
Shanghai Shangsheng Biological Products Co., Ltd.Purchase of goods3,748,316.28NO1,506,116.50
Sinopharm Holding Chuangke Medicial Technology (Guangxi) Co., Ltd.Purchase of goods3,741,777.16NO796,460.19
Shanghai International Pharmaceutical Trade Co., Ltd.Purchase of goods3,215,831.81NO3,897,527.05
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd.Purchase of goods2,917,177.22NO1,911,884.91

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
China National Medical Device Co., Ltd.Purchase of goods2,866,958.608,910,000,000.00NO26,548.67
Sinopharm Holding Heilongjiang Co., Ltd.Purchase of goods2,700,433.59NO2,533,432.31
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd.Purchase of goods2,654,950.93NO-
Sichuan Hexin Pharmaceutical Co., Ltd.Purchase of goods3,903,635.62NO2,257,987.38
Sinopharm Holding Wuxi Co., Ltd.Purchase of goods2,439,252.13NO8,550,202.41
Sinopharm Holding Hulun Buir Co., Ltd.Purchase of goods2,425,267.22NO1,564,568.11
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd.Purchase of goods2,350,922.70NO907,465.81
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.Purchase of goods2,321,886.33NO(550,607.22)
Sinopharm Group Southwest Medicine Co., Ltd.Purchase of goods2,313,721.29NO372,966.72
Sinopharm Holding Tianjin Co., Ltd.Purchase of goods2,113,934.18NO2,168,770.41
Suzhou Erye Pharmaceutical Limited CompanyPurchase of goods1,942,102.86NO1,489,545.90
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.Purchase of goods1,922,967.49NO160,565.02
Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.Purchase of goods1,801,633.72NO2,704,084.84
Hunan Dongting Pharmaceutical Co., Ltd.Purchase of goods1,673,060.75NO1,885,047.92
China National Pharmaceutical Industry Co., Ltd.Purchase of goods1,658,893.69NO1,509,682.80
Sinopharm Holding Dalian Co., Ltd.Purchase of goods1,618,603.64NO1,450,198.00
Sinopharm Liaoning Medical Equipment Co., Ltd.Purchase of goods1,610,762.20NO3,970,884.24

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.Purchase of goods1,591,292.218,910,000,000.00NO34,820,929.08
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.Purchase of goods1,553,305.70NO506,283.18
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd.Purchase of goods1,537,349.20NO2,381,688.57
Sinopharm Holding Yancheng Co., Ltd.Purchase of goods1,355,193.79NO1,623,042.70
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.Purchase of goods1,342,043.34NO2,616,939.67
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd.Purchase of goods1,312,782.80NO6,570,287.55
Sinopharm Chuankang Pharmaceutical Co., Ltd.Purchase of goods1,292,333.10NO1,699,176.97
Huayi Pharmaceutical Co., Ltd.Purchase of goods1,266,831.84NO176,144.72
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., LtdPurchase of goods1,156,691.29NO-
Sinopharm Holding Fuzhou Co., Ltd.Purchase of goods1,152,589.16NO2,117,865.83
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.Purchase of goods1,017,142.82NO1,717,968.13
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.Purchase of goods984,816.68NO2,391,565.82
Sinopharm Holding Yunnan Co., Ltd.Purchase of goods805,065.42NO143,973.45
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd.Purchase of goods781,581.70NO1,077,980.94
Sinopharm Holding Anhui Huaning Medicine Co., Ltd.Purchase of goods781,575.58NO1,434,252.18
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.Purchase of goods773,057.14NO627,174.03

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.Purchase of goods753,274.358,910,000,000.00NO1,300,658.82
Sinopharm Holding Nantong Co., Ltd.Purchase of goods697,002.20NO-
Sinopharm Weiqida Pharmaceutical Co., Ltd.Purchase of goods690,157.52NO668,790.52
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.Purchase of goods682,560.86NO414,430.28
Shanghai Transfusion Technology Co., Ltd.Purchase of goods667,699.12NO712,212.39
Sinopharm Holding Quanzhou Co., Ltd.Purchase of goods662,423.54NO880,856.56
Shenyang Hongqi Pharmaceutical Co., Ltd.Purchase of goods653,104.18NO359,010.73
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.Purchase of goods607,344.52NO132,136.11
Chengdu Institute of Biological Products Co.,Ltd.Purchase of goods562,767.00NO475,738.80
Sinopharm Holding Benxi Co., Ltd.Purchase of goods559,188.59NO-
Shanghai Merro Pharmaceutical Co., Ltd.Purchase of goods542,162.94NO749,178.23
Sinopharm Group Yibin Pharmaceuticals Co., Ltd.Purchase of goods536,821.03NO433,524.84
Sinopharm holdings Hubei Co., Ltd.Purchase of goods531,440.87NO58,060,607.87
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd.Purchase of goods497,209.07NO-
Guilin Pharmaceutical Co., Ltd.Purchase of goods491,568.15NO351,228.30
Sinopharm holdings Beijing Huahong Co., Ltd.Purchase of goods471,946.23NO2,856,735.70
Sinopharm Holding Shanghai Biomedicine Co., Ltd.Purchase of goods408,296.15NO282,209.74
Sinopharm Group Shanxi Ruifulai Co., Ltd.Purchase of goods404,922.04NO-
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.Purchase of goods371,264.92NO1,209,038.66

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2010
Wuhan Zhongsheng Yujin Biological Medicine Co., Ltd.Purchase of goods354,016.008,910,000,000.00NO-
Shantou Jinshi Powder Injection Co., Ltd.Purchase of goods351,589.74NO300,803.34
Sinopharm Holding Chifeng Co., Ltd.Purchase of goods347,527.93NO-
Sinopharm Xinjiang Pharmaceutical Co., Ltd.Purchase of goods341,818.02NO368,206.57
Sinopharm Holding Zhejiang Co., Ltd.Purchase of goods317,534.11NO194,238.02
Sinopharm Holding Puer Co., Ltd.Purchase of goods296,085.02NO446,396.77
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.Purchase of goods295,539.81NO2,181,662.15
Sinopharm Wuhan Blood Products Co., Ltd.Purchase of goods281,200.00NO24,800.00
Jinzhou Avanc Medicine Co., Ltd.Purchase of goods265,412.37NO2,780,545.99
Sinopharm Holding Hubei Likang Pharmaceutical Co., Ltd.Purchase of goods260,747.00NO-
Sinopharm Holding Hainan Hongyi Co., Ltd.Purchase of goods258,280.38NO17,043.48
Sinopharm Holding Putian Co., Ltd.Purchase of goods257,643.78NO466,764.43
Sinopharm Sichuan Pharmaceutical Co., Ltd.Purchase of goods253,894.16NO144,648.00
Sinopharm Holding Bayannur Co., Ltd.Purchase of goods234,878.49NO667,045.83
Sinopharm Holding Anhui Co., Ltd.Purchase of goods180,725.82NO2,398,623.06
Taiji GroupPurchase of goods166,678.24NO-
Jiangsu Huanghe Pharmaceutical Co., Ltd.Purchase of goods162,782.30NO-
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd.Purchase of goods142,201.82NO-
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd.Purchase of goods136,860.13NO157,222.35

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
The Fourth Pharmaceutical Co., Ltd. of Zhonglian GroupPurchase of goods124,447.868,910,000,000.00NO(1,875.00)
Hunan Yaoyou Medicines Co., Ltd.Purchase of goods121,513.28NO-
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.Purchase of goods110,206.77NO42,957.42
Sinopharm Holding Nanping Newforce Co., LtdPurchase of goods105,027.03NO122,980.30
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd.Purchase of goods101,222.21NO56,646.03
Sinopharm Holding Changsha Co., Ltd.Purchase of goods84,558.36NO1,783,867.44
Taiji Group Zhejiang Dongfang Pharmaceutical Co., Ltd.Purchase of goods79,709.72NO-
Sinopharm Holding Xinjiang Special Drugs Yili Pharmaceutical Co., Ltd.Purchase of goods68,861.47NO-
Sinopharm Holding Kunming Co., Ltd.Purchase of goods58,396.46NO-
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd.Purchase of goods48,842.47NO-
Sinopharm Holding Changde Co., Ltd.Purchase of goods48,318.59NO-
Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd.Purchase of goods37,095.80NO46,347.42
Sinopharm ShyndecPurchase of goods36,180.53NO9,493,936.28
Sinopharm Holding Ordos Co., Ltd.Purchase of goods35,001.77NO-
Sinopharm Inner Mongolia Medical Equipment Co., Ltd.Purchase of goods35,000.88NO-
Sinopharm Jingfang (Anhui) Pharmaceutical Co., Ltd.Purchase of goods20,306.19NO766,468.52
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd.Purchase of goods18,751.86NO-
Sinopharm Holding Dalian Hecheng Co., Ltd.Purchase of goods17,404.47NO48,749.02

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Holding Hainan Co., Ltd.Purchase of goods13,042.998,910,000,000.00NO111,398.23
Sinopharm Medical Instrument (Huizhou) Co., Ltd.Purchase of goods10,618.77NO-
Sinopharm Group Medicine Logistic Co., Ltd.Purchase of goods9,450.54NO11,161.53
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd.Purchase of goods9,380.53NO32,964.60
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.Purchase of goods9,026.54NO9,026.54
Sinopharm Group Linfen Co., Ltd.Purchase of goods8,257.25NO107,014.36
Sinopharm Device (Guangdong) Medical Technology Co., Ltd.Purchase of goods6,578.33NO52,672.56
Sinopharm Liaoning Medical Equipment Co., Ltd.Purchase of goods4,424.78NO-
Sinopharm Holding Zhangzhou Co., Ltd.Purchase of goods2,835.40NO73,228.32
Sinopharm Holding Yangzhou Biological Products Co., Ltd.Purchase of goods1,850.00NO49,400.00
Suzhou Laishi Transfusion EquipmentPurchase of goods1,019.47NO-
Naton Biotechnology (Beijing) Co., Ltd.Purchase of goods63.72NO-
Sinopharm Shenzhen Medicine Device Co., Ltd.Purchase of goods-NO4,689,458.43
Shanghai Zeno Biotechnology Co., Ltd.Purchase of goods-NO4,424,779.00
Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd.Purchase of goods-NO3,749,173.52
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.Purchase of goods-NO3,716,814.16
Sinopharm Holding Chongqing Co., Ltd.Purchase of goods-NO3,106,188.00
Sinopharm Medical Instrument Hainan Co., Ltd.Purchase of goods-NO2,109,734.51

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Holding Wuhan Hongshen Medicine Co., Ltd.Purchase of goods-8,910,000,000.00NO1,415,929.21
Sinopharm (Dalian) Medicial Device Co., Ltd.Purchase of goods-NO928,255.76
Sinopharm Holding Chuangke Yuanzhe Medicial Technology (Shanghai) Co., Ltd.Purchase of goods-NO672,566.40
Sinopharm Holding Linyi Medicial Device Co., Ltd.Purchase of goods-NO633,769.93
Sinopharm Hebei Medical Instrument Co., Ltd.Purchase of goods-NO607,424.77
Sinopharm Guangdong Global Pharmaceutical Co., Ltd.Purchase of goods-NO581,499.90
Liaoning Pilot Free Trade Zone China Medical Device Technology Co., Ltd.Purchase of goods-NO260,176.99
Chengdu List Pharmaceutical Co.,Ltd.Purchase of goods-NO204,849.56
Fujian Chentian Jinling Pharmaceutical Co., Ltd.Purchase of goods-NO138,669.72
Sinopharm Holding Shanxi Jinzhong Co., Ltd.Purchase of goods-NO119,470.72
Sinopharm Holding Shanxi Runhe Medicine Co., Ltd.Purchase of goods-NO93,171.55
Sinopharm Group Med-Tech Co., Ltd.Purchase of goods-NO92,920.35
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.Purchase of goods-NO53,734.51
Sinopharm Holding Rizhao Co., Ltd.Purchase of goods-NO34,498.69
Sinopharm Holding Jiangxi Co., Ltd.Purchase of goods-NO28,244.60
Sinopharm Holding Chengdu Pharmaceutical Co., Ltd.Purchase of goods-NO11,307.62
Sinopharm Holding Shiyan Co., Ltd.Purchase of goods-NO2,088.50
Sinopharm Holding Ulanqab Co., Ltd.Purchase of goods-NO2,043.91

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Holding Shanxi Jincheng Co., Ltd.Purchase of goods-8,910,000,000.00NO171.81
Sinopharm Holding Lianyungang Co., Ltd.Purchase of goods-NO(478.47)
Chongqing Haisiman Pharmaceutical Co., Ltd.Purchase of goods-NO(3,514.34)
SINO-TCM Shanghai Medicine&Medicinal Materials Co., Ltd.Purchase of goods-NO(10,888.69)
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd.Purchase of goods-NO(191,787.19)
Sinopharm Holding Baotou Co., Ltd.Purchase of goods(88.50)NO126,066.66
Sinopharm Group Shanghai Medicine Device Co., Ltd.Purchase of goods(209.96)NO308,584.08
Sinopharm Holding Dezhou Co., Ltd.Purchase of goods(223.18)NO108,484.59
Sinopharm Holding Taizhou Co., Ltd.Purchase of goods(350.45)NO81,224.26
China Medical Equipment Shandong Co., Ltd.Purchase of goods(2,177.00)NO14,427.65
Sinopharm Holding Guang’an Co., Ltd.Purchase of goods(6,594.69)NO-
Sinopharm Group Medicine Logistic Co., Ltd.Storage and transport cost, information system access fee9,631,686.3380,000,000.00NO8,264,849.06
Sinopharm GroupConsulting service fee2,269,577.44NO-
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.Consulting service fee658,831.86NO-
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.Storage and transport cost; Consulting service fee518,400.00NO-
Shanghai Tongyu Information Technology Co., Ltd.Consulting service fee, information system access fee476,169.82NO187,905.67

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Purchase of goods and receiving of services from related parties (Continued)

Related partyType of transactionFor the six months ended 30 June 2021Approved trading quotawhether the transaction limit is exceededFor the six months ended 30 June 2020
Sinopharm Foreign Trade(Beijing) Co., Ltd.Equipment maintenance fee141,592.9280,000,000.00NO-
Sinopharm Holding Henan Co., Ltd.Consulting service fee106,046.95NO-
China National Pharmaceutical Foreign Trade CorporationEquipment maintenance fee68,938.05NO-
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd.Information system access fee49,056.60NO12,264.15
Sinopharm Group Guangdong Medicine Device Co., Ltd.Operation service fee34,651.32NO-
Xinjiang Baitong Property Service Co., Ltd.Property fee1,150.44NO-
Sinopharm Holding Jilin Co., Ltd.Consulting service fee109.23NO-
Sinopharm Health Online Co., Ltd.Consulting service fee-NO7,008,590.59
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.Consulting service fee-NO1,492,677.11
Sinopharm Pharmaceutical Logistics Co., Ltd.Storage and transport cost; Consulting service fee-NO93,635.83
Sinopharm Logistics Beijing Co., Ltd.Storage and transport cost; Consulting service fee-NO54,060.78

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm GroupSale of goods139,234,971.54110,426,213.05
Foshan Chancheng Pharmaceutical Co., Ltd.Sale of goods68,883,280.0049,079,098.20
Sinopharm Holding Hainan Co., Ltd.Sale of goods56,647,385.5560,158,578.46
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.Sale of goods51,633,689.1061,896,587.65
Sinopharm Lerentang Medicine Co., Ltd.Sale of goods30,299,085.6122,566,166.73
Sinopharm Holding Beijing Co., Ltd.Sale of goods20,211,375.9812,909,717.52
Sinopharm Holding Hainan Hongyi Co., Ltd.Sale of goods19,732,331.4313,367,342.74
Sinopharm Holding Wenzhou Co., Ltd.Sale of goods16,294,606.3414,794,703.17
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.Sale of goods15,169,815.6310,455,648.05
Sinopharm Holding Shandong Co., Ltd.Sale of goods14,001,108.696,925,017.46
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd.Sale of goods13,521,643.141,075,458.43
Shenzhen Hengsheng HospitalSale of goods13,376,757.2510,629,421.43
Sinopharm Holding Henan Co., Ltd.Sale of goods12,870,576.339,642,957.94
Foshan Chancheng Central Hospital Co., Ltd.Sale of goods12,092,528.877,665,327.44
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.Sale of goods10,239,238.4910,679,779.77
Sinopharm holdings Beijing Huahong Co., Ltd.Sale of goods10,138,011.455,763,714.05
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.Sale of goods8,887,736.051,587,426.88
Sinopharm Holding Nantong Co., Ltd.Sale of goods8,373,035.187,861,952.62
Sinopharm Holding Jinzhou Co., Ltd.Sale of goods7,182,756.9272,477.87
Sinopharm Holding Sub Marketing Center Co., Ltd.Sale of goods6,713,774.055,584,808.87
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd.Sale of goods6,709,036.12784,084.53
Sinopharm Holding Shanxi Co., Ltd.Sale of goods6,114,523.082,812,873.37

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.Sale of goods5,801,373.684,803,387.32
Sinopharm Holding Hubei Co., Ltd.Sale of goods5,725,139.4118,913,611.09
Sinopharm Holding Yangzhou Co., Ltd.Sale of goods5,243,275.793,233,686.62
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd.Sale of goods4,540,492.3118,101.77
Foshan Chanyixing Medicine Development Co Ltd.Sale of goods4,356,266.823,705,867.85
Sinopharm Lerentang Tangshan Medicine Co., Ltd.Sale of goods3,561,044.84661,960.55
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd.Sale of goods3,311,038.77-
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.Sale of goods3,187,482.23492,572.13
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.Sale of goods2,986,283.703,680,499.78
Sinopharm Holding Jilin Co., Ltd.Sale of goods2,942,030.471,599,917.79
Sinopharm Holding Tianjin Co., Ltd.Sale of goods2,941,625.351,822,107.93
Shanghai Merro Pharmaceutical Co., Ltd.Sale of goods2,858,507.183,312,398.44
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., LtdSale of goods2,637,455.3516,467.26
Sinopharm Holding Shanxi Co., Ltd.Sale of goods2,569,451.463,053,010.35
Sinopharm Holding Guizhou Medical Device Co., Ltd.Sale of goods2,506,974.27255,175.71
Sinopharm Lerentang Baoding Trading Co., Ltd.Sale of goods2,386,692.15-
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.Sale of goods2,371,766.361,716,599.10
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.Sale of goods2,280,410.621,724,205.31
Sinopharm Sichuan Pharmaceutical Co., Ltd.Sale of goods2,270,896.315,574,204.53
Sinopharm Holding Yunnan Co., Ltd.Sale of goods2,197,412.021,875,892.22
Sinopharm Holding Hunan Co., Ltd.Sale of goods2,170,058.361,594,378.72

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Holding Shanxi Co., Ltd.Sale of goods1,759,444.55190,595.28
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.Sale of goods1,732,284.482,349,651.28
Sinopharm Holding Anhui Co., Ltd.Sale of goods1,714,909.943,490,356.70
Sinopharm Group Southwest Medicine Co., Ltd.Sale of goods1,686,783.921,891,076.22
Sinopharm Lerentang Hengshui Medicine Co., Ltd.Sale of goods1,541,096.39158,792.13
Sinopharm Holding Dalian Co., Ltd.Sale of goods1,505,999.431,320,364.57
Shanghai Guoda Lingyun Pharmacy Co., Ltd.Sale of goods1,444,193.49786,887.13
Sinopharm Holding Anshan Co., Ltd.Sale of goods1,410,135.08-
China National Medicines Co., Ltd.Sale of goods1,269,341.132,178,096.79
Sinopharm Holding Jiangxi Co., Ltd.Sale of goods1,230,819.17499,633.43
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.Sale of goods1,164,258.24-
Sinopharm Holding Anhui Pharmaceutical Co., Ltd.Sale of goods1,152,047.45693,361.90
Sinopharm Holding Xuzhou Co., Ltd.Sale of goods1,108,631.541,271,612.79
Shanghai Liyi Pharmacy Co.,LtdSale of goods1,102,980.44690,837.84
Sinopharm Holding Shangqiu Co., Ltd.Sale of goods1,039,646.02-
Sinopharm Holding Fujian Co., Ltd.Sale of goods992,070.4351,109,674.50
Sinopharm Holding Gansu Co., Ltd.Sale of goods863,189.43662,808.94
Sinopharm Holding Guizhou Co., Ltd.Sale of goods836,038.24749,381.57
Sinopharm Holding Ningxia Co., Ltd.Sale of goods766,385.82607,397.50
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd.Sale of goods675,555.69174,838.95
Sinopharm Holding Wuxi Co., Ltd.Sale of goods651,490.72545,114.34
Sinopharm Holding Anshun Co., Ltd.Sale of goods637,336.24626,960.18
Sinopharm Holding Tongren Co., Ltd.Sale of goods608,054.18347,824.70

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.Sale of goods585,023.94477,391.38
Sinopharm Holding Guizhou (Zunyi) Medical Equiment Co., Ltd.Sale of goods551,323.97722,382.88
Sinopharm Holding Jiangsu Co., Ltd.Sale of goods526,573.72578,180.26
Sinopharm Holding Zunyi Co., Ltd.Sale of goods497,385.521,078,617.62
Sinopharm Holding Wuhu Co., Ltd.Sale of goods483,333.34421,019.02
Sinopharm Lerentang Cangzhou Medicine Co., Ltd.Sale of goods441,107.9727,143.36
Sinopharm Holding Dalian Hecheng Co., Ltd.Sale of goods440,610.0739,122.93
Shenzhen Chindex Medical Beauty ClinicSale of goods388,613.6797,277.83
Sinopharm Holding Shanghai Biomedicine Co., Ltd.Sale of goods367,752.21282,212.28
Shanghai Shengxin Pharmacy Co., Ltd.Sale of goods352,446.68-
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd.Sale of goods352,417.43107,256.67
Sinopharm Lerentang Tangshan Medicine Co., Ltd.Sale of goods330,239.40-
Sinopharm Baise Device Co., Ltd.Sale of goods328,663.72102,654.87
Sinopharm Holding Shanxi Pharmacy Co., Ltd.Sale of goods274,021.65-
Sinopharm Holding Qinghai Co., Ltd.Sale of goods262,068.06253,282.77
Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd.Sale of goods253,856.26-
Sinopharm Holding Honghe Co., Ltd.Sale of goods233,627.39411,978.99
Sinopharm Lerentang Xingtai Medicine Co., Ltd.Sale of goods224,344.53178,966.16
Sinopharm Holding Jiaozuo Co., Ltd.Sale of goods220,106.10183,421.75
Sinopharm Holding Anhui Pharmaceutical Chain Co., Ltd.Sale of goods190,577.18-
Sinopharm Holding Chuxiong Co., Ltd.Sale of goods185,415.9483,585.92
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd.Sale of goods175,046.0279,064.60

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd.Sale of goods169,490.2455,743.09
Sinopharm Holding Tianjin North Medicine Co., Ltd.Sale of goods165,577.13237,608.84
Sinopharm Holding Chongqing Co., Ltd.Sale of goods157,390.7198,396.45
Sinopharm Holding Inner Mongolia Co., Ltd.Sale of goods150,193.67159,586.47
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd.Sale of goods143,767.71-
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd.Sale of goods135,104.038,730.28
Sinopharm Guangdong Medical Examination Co., Ltd.Sale of goods134,910.79163,965.18
Foshan Chengnan Fengliaoxing Medicial Hospital Co., Ltd.Sale of goods134,895.1387,322.13
Sinopharm Holding Benxi Co., Ltd.Sale of goods134,235.92-
Sinopharm Lerentang Chengde Medicine Co., Ltd.Sale of goods129,707.7563,193.63
Sinopharm Fengliaoxing Medical Hospital Co., Ltd.Sale of goods123,210.3875,159.98
Sinopharm Holding Pingdingshan Co., Ltd.Sale of goods121,061.94-
Sinopharm Group Guangxi Medical Device Co., Ltd.Sale of goods110,309.74113,097.35
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.Sale of goods107,351.54-
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd.Sale of goods107,011.95-
Sinopharm Holding Fuzhou Co., Ltd.Sale of goods93,210.07131,345.42
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd.Sale of goods88,799.0355,538.93
Sinopharm Holding Longyan Co., Ltd.Sale of goods87,410.6357,138.07
Sinopharm Holding Hubei Hongyuan Co., Ltd.Sale of goods74,265.48133,587.47
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd.Sale of goods70,346.3716,276.77

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Lerentang Handan Medicine Co., Ltd.Sale of goods69,991.2818,101.77
Sinopharm Holding Wuhan Guoda Pharmacy Co., Ltd.Sale of goods66,101.95-
Sinopharm Lerentang Baoding Medicine Co., Ltd.Sale of goods57,943.9332,999.89
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd.Sale of goods55,499.7084,353.70
Sinopharm ZhijunSale of goods54,493.273,922.08
Sinopharm Group Guangdong Medicine Device Co., Ltd.Sale of goods48,348.508,494.51
Sinopharm Holding Professional Pharmacy (Hainan) Co., Ltd.Sale of goods40,146.37-
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd.Sale of goods35,758.1441,262.69
Sinopharm Holding Putian Co., Ltd.Sale of goods26,888.4953,777.00
Sinopharm Holding Yancheng Co., Ltd.Sale of goods25,340.97556,583.59
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.Sale of goods25,022.4511,412.30
Sinopharm Holding Changzhou Co., Ltd.Sale of goods21,218.05110,397.17
Chongqing Tongjunge Co., Ltd.Sale of goods19,289.52-
Sichuan Taiji Pharmacy Chain Co., Ltd.Sale of goods18,141.59-
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.Sale of goods16,629.615,383.97
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd.Sale of goods14,607.528,438.69
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company LimitedSale of goods13,825.24-
Sinopharm Holding Ningde Co., Ltd.Sale of goods10,083.1930,249.56
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd.Sale of goods6,978.3212,993.87
Sinopharm Holding Taizhou Co., Ltd.Sale of goods5,834.8768,810.53

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd.Sale of goods4,862.18-
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd.Sale of goods3,939.202,261.97
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.Sale of goods2,902.6534,988.29
Sinopharm Holding Dalian Special Drugs Pharmaceutical Co., Ltd.Sale of goods2,831.86-
Sinopharm Group Shanxi Medical Devices Co., Ltd.Sale of goods2,795.57-
Sinopharm Holding (Shandong) Medicine Device Co., Ltd.Sale of goods2,492.03-
Sinopharm Holding Professional Pharmacy Songyuan Co., Ltd.Sale of goods1,231.86-
Sinopharm Medical Instrument (Jiangmen) Co., Ltd.Sale of goods884.96-
Sinopharm Holding Shenyang Co., Ltd.Sale of goods839.6592,078.76
Sinopharm Holding Xinyu Co., Ltd.Sale of goods632.94-
Lecong Supply and Market Group Shunketang Medicine Co., Ltd.Sale of goods58.41-
Sinopharm Holding Tongliao Co., Ltd.Sale of goods45.14-
Sinopharm Holding Suzhou Co., Ltd.Sale of goods3.54-
Sinopharm Zhuhai Medical Instrument Co., Ltd.Sale of goods-7,446,238.57
Chindex International Trading (Shanghai) Co., Ltd.Sale of goods-3,037,167.60
China Sinopharm International CorporationSale of goods-2,988,690.22
Sinopharm Holding Quanzhou Co., Ltd.Sale of goods-1,628,615.99
Zhijun PingshanSale of goods-297,706.43
Dongyuan AccordSale of goods-230,559.29
Yuxi Sinopharm Medicine Co., Ltd.Sale of goods-226,147.04
Foshan Chancheng District Shiwan Town Chengnan Community Health Service CenterSale of goods-207,388.60

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Hunan Prov. Medical Equipment Co., Ltd.Sale of goods-142,300.88
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd.Sale of goods-84,955.75
Sinopharm Holding Qianxi’nan Co., Ltd.Sale of goods-47,058.57
Sinopharm Holding Fuzhou Co., Ltd.Sale of goods-36,927.44
Guangdong Yifang Pharmaceutical Co., Ltd.Sale of goods-27,079.65
Sinopharm Holding Kunming Pharmacy Co., Ltd.Sale of goods-26,664.78
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.Sale of goods-25,300.89
Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd.Sale of goods-17,838.67
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.Sale of goods-12,682.56
Sinopharm Lerentang Langfang Medicine Co., Ltd.Sale of goods-7,323.36
Main Luck PharmaceuticalSale of goods-6,610.62
Sinopharm Holding Xiamen Co., Ltd.Sale of goods-5,889.38
Sinopharm Holding Zhenjiang Co., Ltd.Sale of goods-5,614.16
Guangdong JienuoSale of goods-2,657.08
Sinopharm Medical Instrument (Hainan) Co., Ltd.Sale of goods-1,805.31
Sinopharm Holding Guizhou Medicial Chain Co., Ltd.Sale of goods-1,340.53
Sinopharm Holding Shanxi Hejin Pharmaceutical Co., Ltd.Sale of goods-1,187.61
Sinopharm Holding Ulanqab Co., Ltd.Sale of goods-(555.14)
Sinopharm Holding Jilin Chain Store Co., Ltd.Sale of goods-(16,556.17)
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd.Sale of goods-(26,464.91)
Sinopharm Holding Chengdu Co., Ltd.Sale of goods(20,800.88)238,592.93

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Group Medicine Logistic Co., Ltd.Transport and storage income4,729,519.503,176,727.67
China National Medicines Co., Ltd.Sublease income, transport and storage income1,658,616.643,116,205.52
Sinopharm ZhijunSublease income, canteen income1,299,722.861,250,273.36
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd.Consulting service income498,556.3182,325.73
Sinopharm Holding Sub Marketing Center Co., Ltd.Consulting service income404,513.641,253,573.97
Guangdong JienuoTransport and storage income252,229.35-
Zhijun TradeSublease income157,142.88285,714.30
Sinopharm Medical Instrument Guangxi Medical Technology Co., Ltd.SPD service income135,813.29-
Sinopharm Baise Device Co., Ltd.SPD service income104,923.15-
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company LimitedSublease income102,102.4997,240.50
Sinopharm Medical Instrument (Foshan) Co., Ltd.SPD service income89,941.38-
Zhijun PingshanTransport and storage income83,186.24129,797.90
Sinopharm Group Southwest Medicine Co., Ltd.Transport and storage income79,480.00-
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., LtBusiness promotion income51,415.10-
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.Business promotion income50,471.71-
Sinopharm Holding Shanxi Co., Ltd.Business promotion income31,886.791,886.79

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(1) Related party transactions - goods and services (Continued)

Sale of goods and rendering of services (Continued)

Related PartyType of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Holding Jilin Co., Ltd.Transport and storage income26,000.00-
Sinopharm Group Guangxi Medical Device Co., Ltd.SPD service income25,173.94-
Sinopharm Device (Guangdong) Medical Technology Co., Ltd.SPD service income19,777.54-
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.Business promotion income15,377.36-
Sinopharm Holding Shenyang Co., Ltd.Consulting service income2,452.83-
Sinopharm Group Guangdong Medicine Device Co., Ltd.Consulting service income1,523.21-
Sinopharm Medical Instrument (Huizhou) Co., Ltd.Consulting service income173.96-
Sinopharm Holding Hubei Co., Ltd.Transport and storage income-81,773.22
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.Consulting service income-17,169.81
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.Consulting service income-2.64

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(2) Related party transactions - leases

(a) As the lessor
Type of assets under leasesIncome from leases For the six months ended 30 June 2021Income from leases For the six months ended 30 June 2020
Sinopharm ZhijunBuilding957,142.86957,142.86
Zhijun TradeBuilding157,142.88285,714.30
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company LimitedBuilding102,102.4997,240.50
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.Building66,666.66-
China National Medicines Co., Ltd.Building52,554.8652,554.86
(b) As the lessee
Type of assets under leasesExpense from leases For the six months ended 30 June 2021Expense from leases For the six months ended 30 June 2020
Hunan Minshengtang Biotechnology Co., Ltd.Building7,317,209.70-
Sinopharm GroupBuilding5,406,057.00-
Sinopharm Group Medicine Logistic Co., Ltd.Equipment3,749,999.993,750,000.00
Sinopharm Group Medicine Logistic Co., Ltd.Building3,539,999.993,540,000.00
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.Building5,536,320.755,296,226.44
Lerentang Investment Group Co., Ltd.Building4,361,467.883,224,047.60
Shenyang Pharmaceutical Co., Ltd.Building3,543,964.783,571,428.61
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.Building2,748,595.473,786,173.34
Sinopharm Holding Yangzhou Co., Ltd.Building1,866,023.82-
Nanjing Yuanguang Trading Co., Ltd.Building1,077,247.291,923,809.52
Guangdong Jiyuantang Development Co., Ltd.Building921,180.26978,504.36
Sinopharm Holding Shanxi Jincheng Co., Ltd.Building600,000.00-
Sinopharm Group Shanghai Co., Ltd.Building586,365.002,031,905.96
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.Building508,827.42478,984.74
Xishuangbanna Disheng Pharmaceutical Co., Ltd.Building405,799.98-
Sinopharm Holding (China) Financing Lease Co., Ltd.Building360,000.00-
Taishan Xiangranhui Trade Co., Ltd.Equipment462,670.01389,625.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(2) Related party transactions - leases(Continued)

(b) As the lessee(Continued)
Type of assets under leasesExpense from leases For the six months ended 30 June 2021Expense from leases For the six months ended 30 June 2020
Zhang YechuanBuilding333,046.64-
Wang YangBuilding312,305.70295,868.56
Li FangBuilding269,047.62254,761.90
Sinopharm Holding Beijing Co., Ltd.Building272,400.00-
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd.Building257,389.00-
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.Building242,857.14181,428.58
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.Building216,191.74-
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd.Building215,968.52-
Gu JinhuaBuilding187,740.00178,800.00
Sinopharm Xinjiang Pharmaceutical Co., Ltd.Building177,233.88-
Beijing Huafang Investment Co., Ltd.Building119,004.08120,934.28
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd.Building118,025.28-
Gu HaiqunBuilding104,099.0499,143.81
Shenzhen Jiufeng Investment Co., Ltd.Building92,279.59-
Zhang HaiyanBuilding85,714.26-
Zhijun PingshanBuilding50,917.44-
Zhang GuitangBuilding49,714.26
Taishan Qunkang Pharmacy Co., Ltd.Equipment11,258.41-
Sinopharm Holding (China) Financing Lease Co., Ltd.Building-2,971,727.14
Pu'er Songmao Medicine Group Co., Ltd.Building-1,984,761.90
Sinopharm Holding Rizhao Co., Ltd.Building-436,785.87
Hangzhou Xihu District Commercial Co., Ltd.Building-146,438.10
China National Medicines Co., Ltd.Building-142,857.14
Taishan Qunkang Pharmacy Co., Ltd.Building-70,850.46

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.71,629,923.5725 February 202125 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.54,707,698.1025 February 202125 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.94,787,926.586 May 20216 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.50,462,024.8317 May 202117 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.48,621,724.2326 February 202126 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.47,123,809.1130 April 202130 October 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.30,698,840.9629 January 202129 July 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.13,237,656.5529 January 202129 April 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.41,035,658.405 February 20215 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.36,462,587.6610 May 202130 June 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.19,867,578.9919 May 202119 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.15,663,049.5219 May 202119 September 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.34,614,169.1330 June 202130 December 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.33,675,870.8726 May 202126 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.26,570,964.0010 February 202110 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.19,998,663.8820 May 202120 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.5,650,549.8820 May 202127 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.25,471,272.1331 May 202131 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.25,123,710.363 June 20213 September 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.24,991,580.4023 June 202123 September 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.24,272,643.768 February 20218 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.22,224,875.9128 January 202128 April 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.20,712,214.947 May 20217 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.20,341,265.014 February 20214 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.19,215,568.9224 February 202124 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.18,756,773.3922 February 202122 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.17,331,983.8515 April 202130 June 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.9,569,134.1417 June 202129 October 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.6,424,446.5217 June 20218 October 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.15,853,329.2425 May 202127 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.12,201,711.111 April 202130 June 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.11,497,531.0112 May 202112 August 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.8,830,838.4009 June 202108 October 2021Short-term borrowings

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.8,222,169.287 February 20217 May 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.5,876,451.1927 April 202130 June 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.5,042,535.1725 June 202125 December 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.4,283,314.8610 June 202110 September 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.4,060,815.2318 June 202126 October 2021Short-term borrowings
Sinopharm Group Finance Co., Ltd.44,296,134.9020 January 202129 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.36,495,375.7020 January 202129 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.20,957,120.7820 January 20215 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.13,865,920.4420 January 202123 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.12,428,990.0020 January 202117 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.10,882,062.5320 January 202123 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.10,214,229.9720 January 202124 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.10,000,000.0020 January 20216 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.9,565,723.9020 January 202130 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.7,799,879.1920 January 20217 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.7,590,732.6320 January 202116 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.7,042,747.9520 January 20217 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,537,002.7820 January 202112 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,026,702.2020 January 202114 July 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.4,926,793.3620 January 202126 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,907,195.6220 January 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,506,000.0020 January 202127 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,888,241.6320 January 202125 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,398,007.7920 January 202130 September 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,058,953.5620 January 202128 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,740,000.0020 January 20213 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,396,451.4020 January 202127 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,200,000.0020 January 202128 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.0020 January 20216 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,822,498.0720 January 202131 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,448,834.1120 January 202123 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,157,784.9420 January 202130 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,108,342.3720 January 202114 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,017,440.0020 January 20214 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,000,000.0020 January 20219 February 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.54,801,891.6513 January 202128 May 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.38,986,447.0313 January 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.30,000,000.0013 January 202127 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.22,265,381.7813 January 202123 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.19,674,402.1613 January 202125 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,835,167.4813 January 202129 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,783,483.5913 January 202121 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,519,239.8013 January 202119 November 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,471,900.8013 January 202111 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,164,873.9913 January 20215 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,858,045.6213 January 20218 September 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.0013 January 202128 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,523,993.3413 January 20217 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,500,000.0013 January 202119 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,292,152.3713 January 202112 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.18,680,231.5917 May 202126 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.15,883,376.8817 May 202127 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.14,286,605.2817 May 202128 July 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.13,480,000.0017 May 202125 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,796,478.5217 May 202110 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,273,537.3517 May 202130 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,378,924.2017 May 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,960,609.7517 May 202123 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,703,388.4917 May 202122 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,595,598.8217 May 202129 October 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,182,401.5917 May 20213 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,008,800.0017 May 202111 November 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,700,944.9117 May 202129 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,488,466.5717 May 20217 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,361,657.3017 May 20218 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,038,005.1217 May 202110 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,035,276.7217 May 20212 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.997,255.8817 May 202116 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.616,725.8217 May 202122 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.561,672.8017 May 202114 July 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.10,459,326.969 February 202125 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.9,152,110.079 February 202127 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.7,677,033.259 February 202129 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,880,000.009 February 202126 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,659,793.429 February 202128 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,000,000.009 February 202122 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,262,169.909 February 202124 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,168,433.409 February 202130 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.009 February 202121 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.009 February 202120 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,958,612.599 February 202122 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,741,698.809 February 202130 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,602,467.589 February 202124 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,065,088.909 February 202128 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.900,094.079 February 202125 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.848,393.169 February 20212 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.753,663.529 February 20214 March 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.710,000.009 February 202111 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.637,104.409 February 202125 March 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.564,197.269 February 202114 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.500,000.009 February 202113 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.500,000.009 February 202116 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.25,075,659.7620 February 202125 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.8,060,000.0020 February 202126 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.6,309,241.3620 February 202127 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.5,467,954.9020 February 202127 April 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,358,800.9020 February 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,873,122.0020 February 20215 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,500,000.0020 February 202128 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.18,000,000.0022 February 202122 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.17,139,076.5522 February 202128 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,013,193.0022 February 202125 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,337,172.5722 February 202124 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,211,874.0022 February 20215 July 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.14,670,958.744 March 202122 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.5,617,316.394 March 202129 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.5,321,515.084 March 202125 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,147,744.224 March 202126 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,044,614.594 March 202128 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,900,000.004 March 202124 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,189,149.824 March 202123 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.371,529.554 March 202124 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.13,008,065.855 March 202127 November 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.4,593,633.895 March 202131 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,274,404.525 March 202127 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.3,000,000.005 March 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,275,132.935 March 202126 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,812,568.885 March 202120 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,642,356.605 March 202118 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,638,360.005 March 202125 January 2022Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,379,729.575 March 202123 July 2021Discount on bank acceptance bill

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Sinopharm Group Finance Co., Ltd.1,000,000.005 March 202126 May 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.883,068.005 March 20215 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.751,251.305 March 20219 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.10,000,000.0020 April 202124 September 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.9,055,204.0720 April 202122 August 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.5,819,577.0020 April 202124 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.5,000,000.0020 April 202113 October 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.0020 April 202130 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.1,370,000.0020 April 202126 June 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.23,539,009.3229 April 202127 July 2021Discount on bank acceptance bill
Sinopharm Group Finance Co., Ltd.2,000,000.0029 April 202121 July 2021Discount on bank acceptance bill
Jilin Province Yihe Investment Consulting Co., Ltd.33,000,000.0022 April 202121 April 2022Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.1,500,000.0022 April 202120 August 2021Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.1,500,000.0022 April 202121 October 2021Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.9,900,000.0014 May 202113 May 2022Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.4,500,000.0030 March 202129 March 2022Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.1,500,000.0030 March 202129 September 2021Short-term borrowings

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(3) Related party transactions - Financing (Continued)

Related PartyAmountInception DateMaturity DateNote
Borrow from
Jilin Province Yihe Investment Consulting Co., Ltd.4,500,000.0021 June 202120 June 2022Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.4,500,000.0019 April 202118 June 2021Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.4,500,000.0015 January 202114 April 2022Short-term borrowings
Jilin Province Yihe Investment Consulting Co., Ltd.3,750,000.0018 May 202117 May 2022Short-term borrowings

(4) Related party asset transfer

Related partyTypes of transactionFor the six months ended 30 June 2021For the six months ended 30 June 2020
Shanghai Tongyu Information Technology Co., Ltd.Purchase of an intangible asset161,045.25-
Shanghai Tongyu Information Technology Co., Ltd.Purchase of a construction in progress103,797.89-

(5) Remuneration for key management personnel

For the six months ended 30 June 2021For the six months ended 30 June 2020
Remuneration for key management personnel3,729,169.004,375,318.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

5. Major transactions between the Group and its related parties (Continued)

(6) Other related party transactions

Interest expense
Related partyTypes of transactionsFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Group Finance Co., Ltd.Payment of notes discount interest8,036,560.443,199,207.88
Sinopharm Group Finance Co., Ltd.Payment of finance companies loan interest5,933,752.641,882,094.57
Jilin Yihe Investment Consulting Co., LtdPayment of entrusted loan interest1,289,047.50-
China Pharmaceutical Group Co., LtdPayment of entrusted loan interest611,679.44513,884.11
Sinopharm Group Finance Co., Ltd.Payment of related parties loan interest-1,311,742.70
Sinopharm Holding Co., LtdPayment of entrusted loan interest-1,035,984.12
Sinopharm Holding (China) Financing Lease Co., Ltd.Payment of related parties loan interest-44,007.71
15,871,040.027,986,921.09
Interest income
Related partyTypes of transactionsFor the six months ended 30 June 2021For the six months ended 30 June 2020
Sinopharm Group Finance Co., Ltd.Deposit interest190,537.1717,036.24
190,537.1717,036.24

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties

(1). Accounts Receivable

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Group59,684,699.84-51,044,738.77-
Accounts receivableFoshan Chancheng Pharmaceutical Co., Ltd.55,897,388.44382,518.2050,457,076.93331,221.14
Accounts receivableSinopharm Lerentang Medicine Co., Ltd.17,212,247.23-11,339,926.55-
Accounts receivableSinopharm Health Online Co., Ltd.16,591,484.79-5,961,622.28-
Accounts receivableSinopharm Holding Hainan Co., Ltd.16,079,241.71-9,263,188.55-
Accounts receivableShanghai Beiyi12,620,973.07-26,066,542.88-
Accounts receivableHandan Sinopharm Lerentang Pharmacy Chain Co., Ltd.9,594,611.38-832,391.06-
Accounts receivableSinopharm Holding Beijing Co., Ltd.8,097,092.09-9,329,174.72-
Accounts receivableFoshan Chancheng Central Hospital Co., Ltd.7,747,869.2150,335.536,199,898.1738,953.63
Accounts receivableSinopharm Holding Hainan Hongyi Co., Ltd.6,678,714.03-5,347,075.47-
Accounts receivableShenzhen Hengsheng Hospital6,589,721.27-5,376,978.17-
Accounts receivableSinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.4,880,354.02-4,380,633.00-
Accounts receivableSinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd.4,540,010.19-3,464,166.50-
Accounts receivableBeijing Golden Elephant Fosun Pharmaceutical Co., Ltd.4,289,053.68-4,397,286.71-
Accounts receivableSinopharm Holding Henan Co., Ltd.4,139,688.62-2,144,155.36-
Accounts receivableSinopharm Holding Wenzhou Co., Ltd.4,048,268.69-3,142,596.82-
Accounts receivableSinopharm Holding Donghong Medical (Shanghai) Co., Ltd.3,834,188.90-2,049,971.85-
Accounts receivableSinopharm Holdings Beijing Huahong co., Ltd.3,673,535.53-1,811,083.32-
Accounts receivableSinopharm Holding Shandong Co., Ltd.2,831,043.88-76,095.93-
Accounts receivableSinopharm Holding Shanxi Co., Ltd.2,816,264.17-771,816.12-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Holding Jilin Co., Ltd.2,528,223.55-208,589.40-
Accounts receivableFoshan Chanyixing Medicine Development Co., Ltd.2,509,939.1713,136.363,445,722.9517,975.48
Accounts receivableSinopharm Holding Sub Marketing Center Co., Ltd.2,432,642.59-2,237,094.40-
Accounts receivableSinopharm Holding Nantong Co., Ltd.2,304,018.16-62,224.62-
Accounts receivableSinopharm Lerentang Baoding Trading Co., Ltd.2,035,819.17-1,645,313.00-
Accounts receivableSinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd.1,997,891.99-943,539.89-
Accounts receivableSinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd.1,889,841.32-1,067,964.98-
Accounts receivableSinopharm Lerentang Tangshan Medicine Co., Ltd.1,860,045.69-997,312.62-
Accounts receivableSinopharm Holding Shanxi Co., Ltd.1,846,421.01-94,929.87-
Accounts receivableSinopharm Holding Hubei Co., Ltd.1,554,241.15-1,252,860.26-
Accounts receivableSinopharm Holding Yangzhou Co., Ltd.1,462,063.19-1,092,414.55-
Accounts receivableSinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd.1,401,228.87-1,294,279.54-
Accounts receivableHutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.1,348,814.00-1,814,506.00-
Accounts receivableSinopharm Holding Dalian Co., Ltd.1,183,889.64-657,906.20-
Accounts receivableShanghai Merro Pharmaceutical Co., Ltd.1,127,455.20-1,648,042.00-
Accounts receivableSinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.1,125,141.84-1,337,124.28-
Accounts receivableSinopharm Holding Shanxi Co., Ltd.1,009,330.58-63,447.29-
Accounts receivableSinopharm Holding Tianjin Co., Ltd.837,878.00-568,733.37-
Accounts receivableShanghai Guoda Lingyun Pharmacy Co., Ltd.824,587.38-664,836.26-
Accounts receivableSinopharm Holding Anhui Pharmaceutical Co., Ltd.790,661.48-225,394.20-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Holding Hunan Co., Ltd.665,593.65-476,299.62-
Accounts receivableSinopharm Holding Wuxi Co., Ltd.648,747.00-129,862.00-
Accounts receivableSinopharm Lerentang Hengshui Medicine Co., Ltd.627,902.87-1,197,573.36-
Accounts receivableSinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.623,234.72-1,385,097.14-
Accounts receivableSinopharm Lerentang Xingtai Pharmaceutical Co., Ltd.577,711.40-82,171.75-
Accounts receivableSinopharm Sichuan Pharmaceutical Co., Ltd.510,242.85-1,437,709.48-
Accounts receivableSinopharm Holding Xuzhou Co., Ltd.483,736.52-227,353.60-
Accounts receivableSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.482,610.48-1,257,499.80-
Accounts receivableSinopharm Holding Yunnan Co., Ltd.425,758.31-139,122.62-
Accounts receivableChina National Medicines Co., Ltd.409,622.43-333,566.22-
Accounts receivableSinopharm Holding Gansu Co., Ltd.396,351.02-14,543.96-
Accounts receivableSinopharm Holding Anhui Co., Ltd.387,196.36-74,455.49-
Accounts receivableSinopharm Holding Jinzhou Co., Ltd.376,206.03-587,192.90-
Accounts receivableSinopharm Holding Anshan Co., Ltd.341,765.32-81,120.00-
Accounts receivableSinopharm Group Southwest Medicine Co., Ltd.339,980.82-192,876.72-
Accounts receivableSinopharm Holding Jiangxi Co., Ltd.327,835.60-114,697.32-
Accounts receivableSinopharm Holding Ningxia Co., Ltd.240,560.00-50,448.00-
Accounts receivableSinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.237,868.93-921,543.58-
Accounts receivableSinopharm Holding Shanghai Biomedicine Co., Ltd.207,780.00-169,080.04-
Accounts receivableSinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.200,134.47-120,058.61-
Accounts receivableSinopharm Holding Shanxi Pharmacy Co., Ltd.161,494.00---
Accounts receivableSinopharm Holding Guizhou Co., Ltd.145,406.38-79,571.94-

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Lerentang Shijiazhuang Medicine Co., Ltd.140,111.40-62,413.00-
Accounts receivableSinopharm Lerentang Qinhuangdao Medicine Co., Ltd.139,548.04-10,333.92-
Accounts receivableSinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.130,741.00---
Accounts receivableSinopharm Holding Jiangsu Co., Ltd.122,527.35-138,015.90-
Accounts receivableSinopharm Lerentang Tangshan Medicine Co., Ltd.112,190.04---
Accounts receivableSinopharm Holding Fujian Co., Ltd.106,344.00-258,264.00-
Accounts receivableShanghai Liyi106,314.44-237,727.36-
Accounts receivableSinopharm Lerentang Langfang Pharmaceutical Co., Ltd.100,342.90-102,413.00-
Accounts receivableSinopharm Holding Dalian Hecheng Co., Ltd.99,164.02-16,766.22-
Accounts receivableSinopharm Medical Instrument (Foshan) Co., Ltd.95,337.86---
Accounts receivableSinopharm Holding Qinghai Co., Ltd.83,207.22-57,312.76-
Accounts receivableSinopharm Lerentang Zhangjiakou Medicine Co., Ltd.71,875.21---
Accounts receivableSinopharm Holding Wuhan Guoda Pharmacy Co., Ltd.68,085.00---
Accounts receivableSinopharm Lerentang Chengde Medicine Co., Ltd.65,785.14---
Accounts receivableSinopharm Holding Chuxiong Co., Ltd.61,759.70---
Accounts receivableSinopharm Holding Honghe Co., Ltd.55,179.48---
Accounts receivableSinopharm Holding Benxi Co., Ltd.52,679.28---
Accounts receivableSinopharm Zhijun50,503.75-41,533.50-
Accounts receivableSinopharm Holding Professional Pharmacy (Hainan) Co., Ltd.45,365.40---
Accounts receivableSinopharm Holding Inner Mongolia Co., Ltd.45,137.28-16.00-
Accounts receivableShanghai Shengxin Pharmacy Co., Ltd.42,289.16-217,507.20-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Medical Instrument Guangxi Medical Technology Co., Ltd.42,276.91---
Accounts receivableSinopharm Lerentang Zhangjiakou Medicine Co., Ltd.40,042.75---
Accounts receivableSinopharm Lerentang Shijiazhuang Medical Management Co., Ltd.38,872.60-74,424.44-
Accounts receivableSinopharm Lerentang Handan Medicine Co., Ltd.37,771.71-11,012.40-
Accounts receivableSinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd.37,491.28-470,726.50-
Accounts receivableSinopharm Holding Anshun Co., Ltd.37,206.55-20,656.00-
Accounts receivableSinopharm Lerentang Baoding Medicine Co., Ltd.35,216.00-13,056.35-
Accounts receivableSinopharm Lerentang Cangzhou Medicine Co., Ltd.30,282.41-39,136.40-
Accounts receivableFoshan Chengnan Fengliaoxing Medical Hospital Co., Ltd.28,152.703.5337,151.7410.36
Accounts receivableSinopharm Group Guangxi Medical Device Co., Ltd.26,684.38---
Accounts receivableSinopharm Holding Tianjin North Medicine Co., Ltd.25,316.96-68,180.00-
Accounts receivableSinopharm Holding Fuzhou Co., Ltd.24,627.20-88.00-
Accounts receivableSinopharm Fengliaoxing Medical Hospital Co., Ltd.18,658.86164.1515,505.90131.93
Accounts receivableSinopharm Holding Zunyi Co., Ltd.17,159.10---
Accounts receivableSinopharm Lerentang Xintai Medicine Co., Ltd.12,579.33-34,154.44-
Accounts receivableSinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd.11,282.50-3,560.10-
Accounts receivableSinopharm Holding Chengdu Co., Ltd.10,563.41-34,068.41-
Accounts receivableSinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd.6,667.50---

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Accounts receivableSinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd.4,415.33-1,491.33-
Accounts receivableSinopharm Group Shanxi Medical Devices Co., Ltd.3,159.00---
Accounts receivableSinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd.3,081.60-5,602.42-
Accounts receivableShanghai Henlius Biopharmaceuticals Co., Ltd.1,798.00---
Accounts receivableSinopharm Medical Instrument (Jiangmen) Co., Ltd.1,000.00---
Accounts receivableSinopharm Holding Pharmacy (Shanghai) Co., Ltd.768.70---
Accounts receivableSinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd.56.740.57916.629.17
Accounts receivableSinopharm Holding Tongliao Co., Ltd.9.60---
Accounts receivableChina National Pharmaceutical Foreign Trade Corporation--299,402.99-
Accounts receivableFoshan Chancheng District Shiwan Town Chengnan Community Health Service Center--160,285.82396.20
Accounts receivableSinopharm Holding Yancheng Co., Ltd.--65,635.20-
Accounts receivableSinopharm Holding Changzhou Co., Ltd.--14,975.52-
Accounts receivableJiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd.--3,652.00-
Accounts receivableSinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.--3,456.00-
Accounts receivableSinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd.--2,301.60-
Accounts receivableSinopharm Holding Shenyang Co., Ltd.--440.00-

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Note receivableSinopharm Holding Hainan Co., Ltd.7,790,377.25-48,549,280.19-
Note receivableSinopharm Holding Hainan Hongyi Co., Ltd.3,648,399.46-9,445,722.78-
Note receivableSinopharm Holding Beijing Co., Ltd.2,752,320.00-2,795,361.96-
Note receivableSinopharm Holding Shanxi Co., Ltd.927,668.77-650,373.76-
Note receivableInnostar Biotechnology Nantong Co., Ltd15,550.30---
Note receivableSinopharm Holding Shandong Co., Ltd.--1,355,084.16-
Note receivableSinopharm Lerentang Medicine Co., Ltd.--909,517.66-
Note receivableSinopharm Holding Zunyi Co., Ltd.--803,004.11-
Note receivableSinopharm Holding Guizhou Yitong Medicine Co., Ltd.--357,540.60-
Note receivableSinopharm Holding Anshan Co., Ltd.--313,535.20-
Note receivableSinopharm Holding Jinzhou Co., Ltd.--300,000.00-
Note receivableSinopharm Holding Gansu Co., Ltd.--175,281.40-
Note receivableSinopharm Holding Guizhou Co., Ltd.--158,268.10-
Note receivableSinopharm Holding Anhui Co., Ltd.--140,856.05-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Other receivableZhijun Suzhou46,334,222.2446,334,222.2446,334,222.24Zhijun Suzhou
Other receivableXishuangbanna Disheng Pharmaceutical Co., Ltd.16,046,032.95---
Other receivableSinopharm Group Medicine Logistic Co., Ltd.3,662,451.54-2,559,772.89-
Other receivableJiangsu Wanbang Pharmacy Marketing Co., Ltd.1,106,077.40-220,000.00-
Other receivableSinopharm Shyndec983,940.00-983,940.00-
Other receivableSinopharm Holding (China) Financing Lease Co., Ltd.938,513.78-570,000.00-
Other receivableSinopharm Holding Fujian Co., Ltd.753,015.80-1,158,302.52-
Other receivableSinopharm Zhijun421,976.49-204,351.29-
Other receivableSinopharm Holding Sub Marketing Center Co., Ltd.414,904.45---
Other receivableSinopharm Holding Shanghai Biomedicine Co., Ltd.400,000.00-400,000.00-
Other receivableSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.398,842.11---
Other receivableGuangdong Jienuo274,930.00---
Other receivableDalian Yalifeng Biopharmaceutical Co., Ltd.180,900.74-1.00-
Other receivableSinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.170,025.29-7,174.98-
Other receivableSinopharm Holding Inner Mongolia Co., Ltd.142,500.00-256,500.00-
Other receivableSinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd.58,582.65---

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Other receivableZhijun Pingshan41,684.00-18,500.00-
Other receivableZhijun Trade31,573.40-10,779.42-
Other receivableZhang Haiyan30,000.00-30,000.00-
Other receivableInnostar Biotechnology Nantong Co., Ltd15,550.30---
Other receivableSinopharm Medical Instrument Guangxi Medical Technology Co., Ltd.12,276.81---
Other receivableChina National Scientific Instruments & Materials I&E Shenzhen Co., Ltd.10,036.80---
Other receivableSinopharm Group Guangxi Medical Device Co., Ltd.3,060.93---
Other receivableSinopharm Group Guangdong Medicine Device Co., Ltd.1,000.00-60.00-
Other receivableChina National Medical Device (Hui Zhou) Co., Ltd.184.40---
Other receivableDu Longfeng--2,057,281.04-
Other receivableLi Huichun--2,057,281.04-
Other receivableSinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.--48,493.16-
Other receivableSinopharm Guangdong Medicine Device Supply Chain Co., Ltd.--17,397.44-
Other receivableSinopharm Zhonglian Pharmaceutical Group Co., Ltd.--5,000.001,000.00
Other receivableXinjiang Baitong Property Service Co., Ltd.--1,300.00-

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Advances to suppliersSouthwest Pharmaceutical Co., Ltd.2,675,229.26---
Advances to suppliersNanjing Yuanguang Trading Co., Ltd.1,170,978.86---
Advances to suppliersSichuan Hexin Pharmaceutical Co., Ltd.710,539.19---
Advances to suppliersShanghai Shyndec Pharmaceutical Marketing Co., Ltd.440,791.78-475,673.07-
Advances to suppliersSinopharm Group Guorui Medicine Co., Ltd.264,040.41-307,838.82-
Advances to suppliersTaiji Group Chongqing Fuling Pharmaceutical Co., Ltd.249,048.67---
Advances to suppliersHunan Dongting Pharmaceutical Co., Ltd.166,924.76-176,257.86-
Advances to suppliersChina National Pharmaceutical Industry Co., Ltd.149,990.40---
Advances to suppliersShanghai Tongyu Information Technology Co., Ltd.132,743.36---
Advances to suppliersSinopharm Holding Hubei Co., Ltd.127,076.65---
Advances to suppliersSinopharm Holdings Beijing Huahong co., Ltd.104,156.85-10,984.33-
Advances to suppliersSuzhou Erye Pharmaceutical Limited Company91,135.03-121,669.23-
Advances to suppliersSinopharm Weiqida Pharmaceutical Co., Ltd.81,416.71---
Advances to suppliersChongqing Yaoyou Pharmaceutical Co., Ltd.55,637.49-408,984.97-
Advances to suppliersSinopharm Holding Sub Marketing Center Co., Ltd.45,683.18-44,662.50-
Advances to suppliersSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.34,469.49---
Advances to suppliersHunan Yaoyou Medicines Co., Ltd.26,721.82---
Advances to suppliersSinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.21,057.70-137,280.00-
Advances to suppliersSinopharm Yixin Pharmaceutical Co., Ltd.20,757.00---

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Advances to suppliersTaiji Group Chongqing Tongjunge Pharmaceutical Co., Ltd.14,901.57---
Advances to suppliersFoshan Winteam Pharmaceutical Group Ltd.13,972.00---
Advances to suppliersTaiji Group Gansu Tianshui Xihuang Ejiao Co., Ltd.13,648.00---
Advances to suppliersHubei Sinopharm Zhonglian Medicine Co., Ltd.13,529.23-13,529.23-
Advances to suppliersTaishan Xiangranhui Trade Co., Ltd.13,150.03---
Advances to suppliersSinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.8,956.01-8,956.01-
Advances to suppliersSinopharm Guangdong Global Pharmaceutical Co., Ltd.4,708.38---
Advances to suppliersSinopharm Group Rongsheng Pharmaceutical Co., Ltd.2,833.81-12,393.12-
Advances to suppliersSinopharm Holding Dalian Hecheng Co., Ltd.2,444.10---
Advances to suppliersSinopharm Holding Shanxi Jincheng Co., Ltd.1,837.72---
Advances to suppliersZhang haiyan714.29---
Advances to suppliersSinopharm Group594.95-59,577.44-
Advances to suppliersShanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.457.48---
Advances to suppliersSinopharm Shyndec61.20-84.97-
Advances to suppliersSinopharm Holding Hubei Likang Pharmaceutical Co., Ltd.35.08---
Advances to suppliersSinopharm Lerentang Hebei Medicine Co., Ltd.0.01-0.01-
Advances to suppliersSinopharm Holding Shanxi Co., Ltd.--17,747,100.00-
Advances to suppliersSinopharm Group Guangxi Medical Device Co., Ltd.--1,850,000.00-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(1). Accounts Receivable (Continued)

ItemRelated Party30 June 202131 December 2020
Gross carrying amountProvision for bad debtGross carrying amountProvision for bad debt
Advances to suppliersFresenius Kabi Huarui Pharmaceuticals Co., Ltd.--260,846.15-
Advances to suppliersChengdu Rongsheng Pharmacy Co., Ltd.--217,055.13-
Advances to suppliersLanzhou Biotechnology Development Co., Ltd.--180,000.00-
Advances to suppliersSinopharm Shantou Jinshi Pharmaceutical Co., Ltd.--79,332.33-
Advances to suppliersGuilin Pharmaceutical Co., Ltd.--74,560.00-
Advances to suppliersSinopharm Zhijun--41,928.00-
Advances to suppliersJiangsu Wanbang Pharmacy Marketing Co., Ltd.--28,796.22-
Advances to suppliersSinopharm Holding Beijing Co., Ltd.--14,878.90-
Advances to suppliersJinzhou Avanc Pharmaceutical Co., Ltd.--8,351.85-
Advances to suppliersSinopharm Holding Changsha Co., Ltd.--4,476.56-
Advances to suppliersSinopharm Device (Guangdong) Medical Technology Co., Ltd.--4,021.05-
Advances to suppliersSinopharm Group Yibin Pharmaceuticals Co., Ltd.--1,377.08-
Advances to suppliersSinopharm Holding Yancheng Co., Ltd.--703.62-
Advances to suppliersFosun Pharmaceutical Distribution Jiangsu Co., Ltd.--81.08-
Advances to suppliersSinopharm Holding Nanping Newforce Co., Ltd--20.46-
Advances to suppliersSinopharm Holding Xinye (Hubei) Medicine Co., Ltd.--3.40-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Holding Sub Marketing Center Co., Ltd.136,420,774.52100,597,889.85
Accounts PayableChina National Medicines Co., Ltd.94,328,048.0453,510,089.86
Accounts PayableSinopharm Lerentang Medicine Co., Ltd.92,347,900.63-
Accounts PayableSinopharm Holding Shanxi Co., Ltd.79,515,178.718,706,339.43
Accounts PayableSinopharm Holding Shanxi Co., Ltd.50,047,053.30698,931.88
Accounts PayableSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.46,826,354.9544,967,413.32
Accounts PayableFresenius Kabi Huarui Pharmaceuticals Co., Ltd.46,680,139.2731,372,881.57
Accounts PayableSinopharm Holding Shenyang Co., Ltd.42,512,516.2417,044,758.52
Accounts PayableSinopharm Group Co., Ltd.38,594,822.4930,169,144.90
Accounts PayableJiangsu Wanbang Pharmacy Marketing Co., Ltd.23,252,792.6514,299,613.79
Accounts PayableLanzhou Biotechnology Development Co., Ltd.17,238,914.69-
Accounts PayableSinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.15,460,751.556,926,143.50
Accounts PayableSinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.15,071,393.3813,211,593.60
Accounts PayableSinopharm Yixin Pharmaceutical Co., Ltd.12,922,894.165,223,703.27
Accounts payableSinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.12,538,440.6611,917,795.97
Accounts PayableSinopharm Holding Jilin Co., Ltd.12,238,802.764,774,676.38
Accounts PayableSinopharm Holding Lunan Co., Ltd.10,975,399.71-
Accounts PayableChongqing Yaoyou Pharmaceutical Co., Ltd.10,259,242.113,319,845.70
Accounts PayableSinopharm Holding Tongliao Co., Ltd.9,464,045.96802,269.56
Accounts PayableShanghai Henlius Biopharmaceuticals Co., Ltd.9,349,231.903,489,402.52
Accounts PayableSinopharm Holding Yangzhou Co., Ltd.9,270,870.656,056,767.80
Accounts PayableSinopharm Holding Fujian Co., Ltd.8,787,141.125,306,468.57
Accounts PayableMain Luck Pharmaceutical8,563,894.255,586,186.27

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd.8,116,781.924,873,657.16
Accounts PayableSinopharm Holding Inner Mongolia Co., Ltd.7,811,861.152,761,321.64
Accounts PayableSinopharm Lerentang Shijiazhuang Medicine Co., Ltd.7,687,260.653,588,817.09
Accounts PayableSinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd.7,418,455.793,753,212.37
Accounts PayableSinopharm Holding Jiangsu Co., Ltd.6,986,215.826,211,219.22
Accounts PayableSinopharm Group Shanxi Medical Devices Co., Ltd.6,366,021.316,105,947.86
Accounts PayableSinopharm Holding Shandong Co., Ltd.6,124,476.27793,417.76
Accounts PayableYunnan Sinopharm Holding Dongchang Medicine Co., Ltd.5,922,302.361,660,475.22
Accounts PayableFoshan Winteam Pharmaceutical Group Ltd.5,488,616.175,032,327.78
Accounts PayableSinopharm Holding Hunan Co., Ltd.4,923,319.80407,092.81
Accounts PayableShenzhen Wanwei Medicine Trading Co., Ltd.4,869,268.33883,982.13
Accounts PayableSinopharm Holding Beijing Co., Ltd.4,868,848.382,391,873.73
Accounts PayableHutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd.4,559,628.22626,104.94
Accounts PayableYichang Humanwell Pharmaceutical Co., Ltd.4,470,996.08702,352.60
Accounts PayableJinzhou Avanc Pharmaceutical Co., Ltd.4,411,339.824,977,249.88
Accounts PayableSinopharm Holding Henan Co., Ltd.4,396,344.313,206,888.96
Accounts PayableZhijun Pingshan4,272,258.253,854,209.10
Accounts PayableChina Otsuka Pharmaceutical Co., Ltd.3,739,214.152,677,852.24
Accounts PayableSinopharm Holding Xiamen Co., Ltd.3,388,026.93551,570.55
Accounts PayableChina National Pharmaceutical Foreign Trade Corporation3,183,468.891,264,206.58
Accounts PayableSinopharm Holding Ningxia Co., Ltd.3,139,723.502,414,511.01
Accounts PayableSinopharm Holding Jinzhou Co., Ltd.3,002,980.961,176,931.82
Accounts PayableSinopharm Holding Changzhou Co., Ltd.2,986,094.334,061,240.62

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableTibet Yaoyou Medicines Co., Ltd.2,766,861.565,599,734.54
Accounts PayableSinopharm Zhijun2,752,553.262,204,850.71
Accounts PayableTaiji Group Chongqing Lingling Pharmaceutical Factory Co., Ltd2,678,260.95-
Accounts PayableSinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.2,635,957.972,029,331.09
Accounts PayableSinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.2,503,237.00206,174.46
Accounts PayableSinopharm Holding Pingdingshan Co., Ltd.2,334,135.943,110,222.71
Accounts PayableSinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd.2,297,132.341,402,636.20
Accounts PayableShanghai International Pharmaceutical Trade Co., Ltd.2,268,132.842,140,826.76
Accounts PayableTaiji Group Chongqing Junge Pharmaceutical Co., Ltd2,209,845.30-
Accounts PayableSinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.2,169,689.831,345,750.22
Accounts PayableSinopharm Advanced (Shanghai) Medical Device Co., Ltd.2,018,301.45474.35
Accounts PayableSinopharm Holding Anshan Co., Ltd.1,921,040.94210,514.52
Accounts PayableSinopharm Holding Hulun Buir Co., Ltd.1,723,560.47862,728.46
Accounts PayableSinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd.1,664,002.071,179,431.76
Accounts PayableSinopharm Jiankun (Beijing) Medicine Co., Ltd.1,558,885.49236,040.00
Accounts PayableSinopharm Zhonglian Pharmaceutical Group Co., Ltd.1,528,102.51450,506.71
Accounts PayableSinopharm Holding Wuxi Co., Ltd.1,475,312.09839,716.25
Accounts PayableSinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd.1,406,460.001,315,880.00
Accounts PayableFosun Pharmaceutical Distribution Jiangsu Co., Ltd.1,396,404.211,404,453.04

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Holding Jinan Co., Ltd.1,378,772.685,044.24
Accounts PayableSinopharm Liaoning Medical Equipment Co., Ltd.1,332,215.59801,190.96
Accounts PayableBeijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd.1,210,637.01275,637.01
Accounts PayableSinopharm Holding Donghong Medical (Shanghai) Co., Ltd.1,191,544.83189,625.02
Accounts PayableShanghai Shyndec Pharmaceutical Marketing Co., Ltd.1,120,294.141,198,963.22
Accounts PayableSinopharm Group, Southwest Pharmaceutical Co., Ltd.889,435.22-
Accounts PayableSinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd.878,317.601,495,702.47
Accounts PayableSinopharm Group Guorui Medicine Co., Ltd.847,231.991,029,635.96
Accounts PayableJinzhou Avanc Medicine Co., Ltd.774,228.852,251,486.36
Accounts PayableSinopharm Luya (Shandong) Pharmaceutical Co., Ltd.717,286.311,728,265.11
Accounts PayableSinopharm Holding Heilongjiang Co., Ltd.709,357.70811,310.59
Accounts PayableSinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.702,647.457,414.31
Accounts PayableSinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd.661,183.36560,063.40
Accounts PayableSinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd.651,582.93659,567.18
Accounts PayableBeijing Golden Elephant Fosun Pharmaceutical Co., Ltd.641,043.63714,642.68
Accounts PayableFujian Chentian Jinling Pharmaceutical Co., Ltd.639,896.10639,896.10
Accounts PayableHuayi Pharmaceutical Co., Ltd.622,400.00110,159.29
Accounts PayableChina National Pharmaceutical Industry Co., Ltd.563,196.30614,940.77

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSouthwest Pharmaceutical Co., Ltd498,114.40-
Accounts PayableSinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.483,577.38763,894.30
Accounts PayableSinopharm ChuanKang Pharmaceutical Co., Ltd.483,468.40228,071.04
Accounts PayableYunnan Tianjiang Yifang Pharmaceutical Co., Ltd.475,579.30792,663.67
Accounts PayableShanghai Transfusion Technology Co., Ltd.452,700.00301,800.00
Accounts PayableSinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd.451,033.67553,653.19
Accounts PayableJiangxi Erye Medicine Marketing Co., Ltd.437,250.19134,268.38
Accounts PayableSichuan Hexin Pharmaceutical Co., Ltd.414,600.001,164,727.22
Accounts PayableSinopharm Holdings Chuangke Medical Technology (Guangxi) Co., Ltd405,660.80-
Accounts PayableSinopharm Holdings Benxi Co., LTD356,397.10-
Accounts PayableSinopharm Holding Tianjin Co., Ltd.352,357.2395,084.93
Accounts PayableSinopharm Holding Yancheng Co., Ltd.344,929.57-
Accounts PayableSinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.338,359.74390,349.10
Accounts PayableSinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd.337,497.87126,985.40
Accounts PayableHunan Dongting Pharmaceutical Co., Ltd.335,196.57667,433.56
Accounts PayableJiangsu Huanghe Pharmaceutical Co., Ltd.334,470.96229,932.46
Accounts PayableSuzhou Erye Pharmaceutical Limited Company332,911.50350,413.20
Accounts PayableSinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd.325,253.73355,710.50
Accounts PayableSinopharm Holding Hubei Co., Ltd.325,147.65706,495.38

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Holding Fuzhou Co., Ltd.294,318.62655,028.77
Accounts PayableSinopharm Holding Anhui Huaning Medicine Co., Ltd.292,609.10248,701.04
Accounts PayableGlaxoSmithKline Pharmaceuticals (Suzhou) Co., Ltd.286,776.33156,960.48
Accounts PayableTaiji Group Sichuan Mianyang Pharmaceutical Co., Ltd284,788.67-
Accounts PayableSinopharm Group Yibin Pharmaceuticals Co., Ltd.281,130.03286,441.67
Accounts PayableSinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd.280,247.31347,738.10
Accounts PayableSinopharm Holding Pu’er Co., Ltd.267,364.71126,457.83
Accounts PayableSinopharm Holding Dalian Co., Ltd.260,998.30372,970.88
Accounts PayableSinopharm Group Rongsheng Pharmaceutical Co., Ltd.246,191.00412,372.07
Accounts PayableShanghai Merro Pharmaceutical Co., Ltd.243,184.50196,678.40
Accounts PayableSinopharm Holding Yunnan Co., Ltd.239,684.27128,094.48
Accounts PayableSinopharm Holding Shanghai Biomedicine Co., Ltd.198,359.00182,202.00
Accounts PayableSinopharm Xinjiang Pharmaceutical Co., Ltd.191,183.7394,780.05
Accounts PayableSinopharm Shanxi ruifulai Pharmaceutical Co., Ltd163,015.43-
Accounts PayableSinopharm Holding Putian Co., Ltd.160,656.67224,611.58
Accounts PayableShanghai Shangsheng Biological Products Co., Ltd.153,756.00194,400.00
Accounts PayableSichuan Jiangyou Zhongba Fuzi Technology Development Co., Ltd148,143.06-
Accounts PayableChengdu Institute of Biological Products Co., Ltd.140,400.00374,400.00
Accounts PayableSinopharm Holdings Beijing Huahong co., Ltd.139,337.7068,274.07

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Holding Hunan Pharmaceutical Development Co., Ltd.136,890.18105,438.07
Accounts PayableSinopharm Holding Shanxi Mingdikang Medicine Co., Ltd.113,139.8147,953.27
Accounts PayableSinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd.106,718.02106,918.61
Accounts PayableChengdu Rongsheng Pharmacy Co., Ltd.100,794.89100,000.02
Accounts PayableSinopharm Holding Zhejiang Co., Ltd.100,418.0230,316.89
Accounts PayableSinopharm Holding Bayannur Co., Ltd.96,966.4069,930.10
Accounts PayableWuhan Zhongsheng Yujin biomedical Co., Ltd88,504.00-
Accounts PayableSinopharm Shantou Jinshi Pharmaceutical Co., Ltd.88,254.41135,961.28
Accounts PayableSinopharm Holding Quanzhou Co., Ltd.81,315.39203,348.93
Accounts PayableShanghai Chaohui Pharmaceutical Co., Ltd.77,054.611,020,709.97
Accounts PayableSinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd.76,448.3484.48
Accounts PayableSinopharm holding Xinte Yili Pharmaceutical Co., Ltd68,861.47-
Accounts PayableShenyang Hongqi Pharmaceutical Co., Ltd.65,372.23165,983.07
Accounts PayableSinopharm Holding Nantong Co., Ltd61,946.90-
Accounts PayableShantou Jinshi Powder Injection Co., Ltd.61,662.0072,590.24
Accounts PayableSinopharm Device (Guangdong) Medical Technology Co., Ltd.58,450.5076,078.94
Accounts PayableTaiji Group Ltd47,123.91-
Accounts PayableSinopharm Holding Chifeng Co., Ltd46,663.80-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm Inner Mongolia Medical Instrument Co., Ltd39,551.00-
Accounts PayableSinopharm Holding Nanping New Power Co., Ltd38,961.61-
Accounts PayableSinopharm Holding Dezhou Co., Ltd.37,534.0245,750.41
Accounts PayableSinopharm Sanyi Medicine (Wuhu) Co., Ltd.35,199.9426,646.40
Accounts PayableSinopharm Holding Anhui Co., Ltd.34,219.90-
Accounts PayableSinopharm Holding Changzhou Medical Logistics Center Co., Ltd.32,872.4932,872.49
Accounts PayableSinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd.32,814.6959,773.89
Accounts PayableSinopharm holding Shanxi Linfen Co., Ltd31,242.18-
Accounts PayableShanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd.30,432.2831,024.85
Accounts PayableSinopharm Holding Changsha Co., Ltd.30,339.75-
Accounts PayableTaiji Group Zhejiang Dongfang Pharmaceutical Co., Ltd30,277.66-
Accounts PayableSinopharm Beijing Huamiao Pharmaceutical Co., Ltd.26,862.15131,751.68
Accounts PayableSinopharm Guangdong Global Pharmaceutical Co., Ltd.25,018.2528,464.87
Accounts PayableSinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd.19,500.56147,224.95
Accounts PayableChongqing Haisiman Pharmaceutical Co., Ltd.18,488.8218,488.82
Accounts PayableSinopharm Holding Ulanqab Co., Ltd.16,092.2036,092.20
Accounts PayableSinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd.15,958.8410,858.84
Accounts PayableSinopharm Holding Taizhou Co., Ltd.11,239.8717,598.01

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableChina National Medical Device (Hui Zhou) Co., Ltd.8,950.00805.31
Accounts PayableChina Medical Equipment Shandong Co., Ltd.7,303.3629,843.36
Accounts PayableSinopharm Holding Changsha Gaoxin Medicine Co., Ltd.5,825.0012,900.00
Accounts PayableSinopharm holding Hainan Hongyi Co., Ltd4,960.00-
Accounts PayableChangchun Changsheng Gene Pharmaceutical Co., Ltd.3,017.253,807.25
Accounts PayableSinopharm Holding Yangzhou Biological Products Co., Ltd.2,378.07149,183.90
Accounts PayableSinopharm holding Xinye (Hubei) Pharmaceutical Co., Ltd2,170.00-
Accounts PayableSinopharm Holding Ordos Co., Ltd.1,771.201,771.20
Accounts PayableSinopharm Nutraceuticals (Shanghai) Co., Ltd.1,461.551,461.56
Accounts PayableSinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd.1,244.765,453.55
Accounts PayableSinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd.1,113.852,229.36
Accounts PayableSinopharm holding Guang'an Co., Ltd857.31-
Accounts PayableGuilin Pharmaceutical Co., Ltd.627.25627.25
Accounts PayableSinopharm Anhui Great Health Industry Co., Ltd504.00-
Accounts PayableSinopharm Holding Zhangzhou Co., Ltd.468.002,119.78
Accounts PayableSinopharm Holding Liaocheng Co., Ltd.174.00174.00
Accounts PayableSinopharm Fengliaoxing (Foshan) Medicines Co., Ltd.127.72127.72
Accounts PayableChengdu List Pharmaceutical Co., Ltd.72.891,756.39
Accounts PayableNatong Biotechnology (Beijing) Co., Ltd63.72-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Accounts PayableSinopharm holding Jilin Medical Instrument Co., Ltd47.5047.50
Accounts PayableSinopharm holding Chongqing Co., Ltd45.00-
Accounts PayableSinopharm Shyndec15.61612.78
Accounts PayableSinopharm Holding Suzhou Co., Ltd.13.0913.09
Accounts PayableSinopharm Holding Linfen Co., Ltd5.005.30
Accounts PayableSinopharm Holding Xinyu Co., Ltd0.010.01
Accounts PayableSinopharm Group Guangxi Medical Device Co., Ltd.-1,637,168.14
Accounts PayableSinopharm Holding Shanxi Jinzhong Co., Ltd.-304,455.20
Accounts PayableSinopharm Holding Baotou Co., Ltd.-16,443.00
Accounts PayableSinopharm Holding Dalian Hecheng Co., Ltd.-3,169.55
Accounts PayableSinopharm Holding Shanxi Jincheng Co., Ltd.-2,233.33
Accounts PayableSinopharm Group Shanghai Medicine Device Co., Ltd.-209.96

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Notes PayableSinopharm Lerentang Medicine Co., Ltd.178,726,114.00133,513,118.91
Notes PayableSinopharm Holding Sub Marketing Center Co., Ltd.98,532,398.98145,007,748.49
Notes PayableSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.86,581,666.4034,904,620.08
Notes PayableChina National Medicines Co., Ltd.46,854,819.6921,240,547.39
Notes PayableSinopharm Holding Shanxi Co., Ltd.37,255,237.8796,475,832.70
Notes PayableSinopharm Holding Shanxi Co., Ltd.29,956,295.04147,484,839.36
Notes PayableSinopharm Holding Shenyang Co., Ltd.27,343,806.5523,666,333.81
Notes PayableJiangsu Wanbang Pharmacy Marketing Co., Ltd.19,093,642.8042,481,785.07
Notes PayableSinopharm Holding Lunan Co., Ltd.15,322,762.004,500,000.00
Notes PayableSinopharm Holding Yangzhou Co., Ltd.13,766,896.934,300,000.00
Notes PayableChengdu Rongsheng Pharmacy Co., Ltd.12,003,000.0010,368,750.00
Notes PayableSinopharm Holding Inner Mongolia Co., Ltd.11,789,525.0120,429,758.48
Notes PayableSinopharm Holding Fujian Co., Ltd.9,086,169.4315,606,964.31
Notes PayableSinopharm Holding Tongliao Co., Ltd.8,146,891.51-
Notes PayableSinopharm Holding Jilin Co., Ltd.7,870,548.03430,080.28
Notes PayableSinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd.7,734,939.355,681,012.75

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Notes PayableLanzhou Biotechnology Development Co., Ltd6,720,000.0034,920,000.00
Notes PayableSinopharm Holding Xiamen Co., Ltd.6,189,287.863,173,200.37
Notes PayableChongqing Yaoyou Pharmaceutical Co., Ltd.5,683,557.402,693,445.70
Notes PayableSinopharm Holding Pingdingshan Co., Ltd.5,644,930.053,000,000.00
Notes PayableSinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd.5,339,586.091,978,218.04
Notes PayableSinopharm Holding Henan Co., Ltd.4,804,061.33-
Notes PayableSinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd.4,226,969.982,840,425.46
Notes PayableSinopharm Group3,360,257.3915,665,754.04
Notes PayableSinopharm Holding Hunan Co., Ltd.3,296,556.25769,724.44
Notes PayableFoshan Winteam Pharmaceutical Group Ltd.2,988,970.441,047,709.72
Notes PayableMain Luck Pharmaceutical2,505,357.141,274,104.80
Notes PayableSinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd.2,400,044.484,755,780.00
Notes PayableChina Otsuka Pharmaceutical Co., Ltd.1,571,497.602,321,674.00
Notes PayableSinopharm Holding Hulun Buir Co., Ltd.1,278,836.38-
Notes PayableSinopharm Holding Ningxia Co., Ltd.1,268,500.302,139,620.00
Notes PayableSinopharm Jiankun (Beijing) Medicine Co., Ltd.1,213,920.001,911,680.00
Notes PayableSinopharm Holding Dalian Co., Ltd.1,180,305.761,269,329.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Notes PayableSinopharm Holding Jinan Co., Ltd.1,107,000.00650,000.00
Notes PayableSinopharm Holding Heilongjiang Co., Ltd.1,031,283.29-
Notes PayableSinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd.913,177.021,777,689.35
Notes PayableSinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd.865,606.40715,196.92
Notes PayableShanghai Shyndec Pharmaceutical Marketing Co., Ltd.743,698.80267,514.80
Notes PayableFosun Pharmaceutical Distribution Jiangsu Co., Ltd.740,537.68754,075.83
Notes PayableJinzhou Avanc Medicine Co., Ltd.609,930.00655,110.00
Notes PayableSinopharm Holding Yancheng Co., Ltd.563,801.29967,264.56
Notes PayableShenzhen Wanwei Medicine Trading Co., Ltd.521,432.00597,769.76
Notes PayableSinopharm Zhijun471,834.29636,206.80
Notes PayableTaiji Group Chongqing Lingling Pharmaceutical Factory Co., Ltd427,400.50-
Notes PayableShanghai Transfusion Technology Co., Ltd.402,400.00251,500.00
Notes PayableSinopharm Zhonglian Pharmaceutical Group Co., Ltd.330,347.20116,747.00
Notes PayableSinopharm Wuhan Blood Products Co., Ltd.281,200.00420,000.00
Notes PayableWuhan Zhongsheng Jin Biopharmaceutical Co., Ltd265,512.00-
Notes PayableSinopharm Holding Bayannur Co., Ltd.221,930.30-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Notes PayableSinopharm Holding Quanzhou Co., Ltd.212,549.381,347,279.74
Notes PayableSinopharm Holding Anshan Co., Ltd.199,777.7563,415.75
Notes PayableSinopharm Group Rongsheng Pharmaceutical Co., Ltd.112,420.00278,588.10
Notes PayableSinopharm Holding Nanping New Power Co., Ltd97,439.62100,557.27
Notes PayableSinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd.50,000.00-
Notes PayableSinopharm Holding Changsha Co., Ltd.46,237.8429,765.60
Notes PayableSinopharm Yixin Pharmaceutical Co., Ltd.-14,416,290.57
Notes PayableSinopharm Lerentang Shijiazhuang Medicine Co., Ltd.-2,946,186.04
Notes PayableSinopharm Holding Tianjin Co., Ltd.-2,365,453.12
Notes PayableChina Medical Devices Co., Ltd-1,743,360.00
Notes PayableSinopharm Group Shanxi Medical Devices Co., Ltd.-1,431,000.00
Notes PayableSinopharm Holding Jinzhou Co., Ltd.-1,222,139.83
Notes PayableSinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd.-564,116.00
Notes PayableSinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd.-537,224.53
Notes PayableSinopharm Holding Shanxi Jinzhong Co., Ltd.-102,211.00
Notes PayableFujian Chentian Jinling Pharmaceutical Co., Ltd.-71,204.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Other PayableSinopharm Group5,313,664.014,146,496.53
Other PayableNational Pharmaceutical Group Pharmaceutical Logistics Co., Ltd4,715,402.442,825,718.21
Other PayableZhenfang Zhang4,322,499.973,919,999.95
Other PayableChina Pharmaceutical Group Shanghai Co., Ltd1,660,431.383,619,450.06
Other PayableChina Traditional Chinese Medicine Co., Ltd1,300,000.001,300,000.00
Other PayableSinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd.518,400.00165,906.00
Other PayableNational Pharmaceutical Health Online Co., Ltd414,492.64185,980.18
Other PayableShanghai North Wing Guoda Pharmaceutical Co., Ltd286,498.20364,905.28
Other PayableSinopharm Holdings (Tianjin Binhai) Pharmaceutical Co., Ltd241,760.00-
Other PayableShanghai Tongyu Information Technology Co., Ltd180,338.49249,892.49
Other PayableSinopharm holding Hunan Wei'an pharmacy chain Co., Ltd104,625.76104,626.65
Other PayableSinopharm Holdings Beijing Huahong co., Ltd.104,156.84-
Other PayableSinopharm Holding Sub Marketing Center Co., Ltd.37,817.3837,871.38
Other PayableZhijun Pingshan25,458.72-
Other PayableFoshan Winteam Pharmaceutical Group Ltd.7,280.00-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Other PayableSinopharm Group Chemical Reagent Co., Ltd6,980.00-
Other PayableJiangsu Wanbang Pharmacy Marketing Co., Ltd.2,800.00-
Other PayableFresenius Kabi Huarui Pharmaceuticals Co., Ltd.6.286.28
Other PayablePingdingshan Pusheng Pharmaceutical Co., Ltd-515,857.96
Other PayableSinopharm Holding Yangzhou Co., Ltd.-372,571.40
Other PayableFujian Chentian Jinling Pharmaceutical Co., Ltd.-50,000.00
Other PayableSinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.22,401.28
Other PayableHaiyan Zhang-1,422.03
Other PayableChengdu Institute of Biological Products Co., Ltd.-327.60
Other PayableSinopharm Guangdong Global Pharmaceutical Co., Ltd.-126.63
Other PayableShenzhen Wanwei Medicine Trading Co., Ltd.-123.46

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Contract liabilitySinopharm lerentang Qinhuangdao Pharmaceutical Co., Ltd72,666.9097,625.80
Contract liabilitySinopharm Holding Shenyang Co., Ltd.64,281.7264,395.72
Contract liabilitySinopharm Holding Yunnan Co., Ltd.64,039.40186,666.45
Contract liabilitySinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.50,924.30-
Contract liabilitySinopharm Holding Qianxinan Co., Ltd30,905.31-
Contract liabilitySinopharm Holding Wuhu Co., Ltd30,384.0030,384.00
Contract liabilitySinopharm lerentang Cangzhou Pharmaceutical Co., Ltd25,691.0025,691.00
Contract liabilitySinopharm Holding Hulun Buir Co., Ltd.21,177.2521,177.25
Contract liabilitySinopharm Holding Gansu Co., Ltd21,960.0021,960.00
Contract liabilitySinopharm Group Guizhou (Zunyi) Medical Instrument Co., Ltd5,743.36-
Contract liabilitySinopharm lerentang Shijiazhuang medical management Co., Ltd5,134.40-
Contract liabilitySinopharm Holding Guizhou medical device Co., Ltd2,929.381,140.71
Contract liabilitySinopharm lerentang Tangshan Pharmaceutical Co., Ltd1,734.36-
Contract liabilityJiangmen Xinhui Jianfeng Pharmaceutical Co., Ltd1,368.00-
Contract liabilitySinopharm Holding Chongqing Co., Ltd755.623,523.35
Contract liabilitySinopharm Instrument Guizhou Qiannan Co., Ltd524.51-

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

6. Amounts due from/to related parties (Continued)

(2). Accounts Payable (Continued)

ItemRelated Party30 June 202131 December 2020
Contract liabilitySinopharm Holding Tongren Co., Ltd438.00-
Contract liabilitySinopharm Holding Inner Mongolia Co., Ltd.83.6083.60
Contract liabilitySinopharm holding (Shandong) medical device Co., Ltd64.00-
Contract liabilitySinopharm Holding Huai'an Co., Ltd19.4019.40
Contract liabilitySinopharm Holding Nantong Co., Ltd-1,074,470.38
Contract liabilityQianda international trade (Shanghai) Co., Ltd-783,640.00
Contract liabilitySinopharm Holding Anhui Co., Ltd.-154,870.80
Contract liabilitySinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd.-98,901.00
Contract liabilitySinopharm Lerentang Medicine Co., Ltd.-40,366.72
Contract liabilitySinopharm Holding Jilin Co., Ltd.-23,017.49
Contract liabilitySinopharm Holding Shaanxi Co., Ltd-14,791.76
Contract liabilitySinopharm lerentang Chengde Pharmaceutical Co., Ltd-10,976.96
Contract liabilitySinopharm lerentang Hengshui Pharmaceutical Co., Ltd-10,276.41
Contract liabilitySinopharm Holding Taizhou Co., Ltd.-6,593.40
Contract liabilityDongyuan Accord-855.00
Contract liabilitySinopharm Holding Jiangxi Co., Ltd.-190.98

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

7. Commitments of Related Party

Lease commitmentRent-out

Related Party30 June 202131 December 2020
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.199,999.99266,666.66
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited85,085.99187,187.99

Rent-in

Related Party30 June 202131 December 2020
Sinopharm Holding Yangzhou Co., Ltd.16,794,214.3819,560,000.00
Zhang Yechuan8,910,988.615,777,181.67
Sinopharm Group Medicine Logistic Co., Ltd.7,290,000.00-
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.7,208,388.457,717,215.87
Shenyang Pharmaceutical Co., Ltd.7,142,857.142,976,190.55
Sinopharm Group6,631,429.92-
Lerentang Investment Group Co., Ltd.5,617,201.8210,178,669.70
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd.2,748,595.47-
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd.2,723,965.983,974,949.26
Xiong xinyuan2,582,102.83-
Guangdong Jiyuantang Development Co., Ltd.1,990,209.483,180,113.86
Li Fang1,906,800.002,179,200.00
Sinopharm Holding Beijing Co., Ltd.1,557,142.84123,809.52
Shenyang Shengdiou Trading Co., Ltd.1,499,269.22-
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.1,385,714.261,628,571.40
Sinopharm Holding Shanxi Jincheng Co., Ltd1,200,000.00-
Wang Yang936,917.10-
Zhang Zhenfang805,000.00805,000.00
Nanjing Yuanguang Trading Co., Ltd.750,000.00571,488.75

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

7. Commitments of Related Party (Continued)

Lease commitment (Continued)Rent-in (Continued)

Related Party30 June 202131 December 2020
Taishan Xiangranhui Trade Co., Ltd.479,468.57843,949.00
Zhang Haiyan451,530.48537,244.90
Sinopharm Holding (China) Financing Lease Co., Ltd.415,363.22870,588.42
Sinopharm Xinjiang Pharmaceutical Co., Ltd.388,571.43777,142.86
Gu Jinhua344,190.00378,609.00
Gu Haiqun342,774.31446,873.35
Zhijun Pingshan313,990.88364,908.32
Zhang Guitang240,285.59-
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd.216,191.74-
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd.215,968.52-
Shanghai Baizhong Business Development (Group) Co., Ltd.151,568.54-
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd.118,025.28-
Beijing Huafang Investment Co., Ltd.91,428.57345,908.56
Hunan Minshengtang Investment Co., Ltd.-1,097,581.46
Shenzhen Jiufeng Investment Co., Ltd.-166,666.67
Pu'er Songmao Medicine Group Co., Ltd.-37,335.24
Taishan Qunkang Pharmacy Co., Ltd.-11,258.41

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

8. Others

Related Party30 June 202131 December 2020
Short-term Borrowing
Sinopharm Group Finance Co., Ltd.581,796,571.4614,338,732.53
Entrusted loan
CNPGC (1)31,633,794.4431,637,173.89
Jilin Province Yihe Investment Consulting Co., Ltd. (2)75,450,000.0056,700,000.00
(1) CNPGC entrusted Sinopharm Group Finance Co., Ltd. with this borrowing to the Group. The entrusted borrowing includes the principal of RMB31,600.00 thousand and the outstanding interest receivable of RMB33.79 thousand.
(2) The loan is a bank loan entrusted by Jilin Yihe Investment Consulting Co., Ltd. to the group.
Other non-current liabilities
Sinopharm Group Co., Ltd.35,061,743.3135,061,743.31
Cash deposite within a related party
Sinopharm Group Finance Co., Ltd.1,636,830.68101,779,861.57
For the six months ended 30 June 2021, the annual interest rates of the above deposits are 0.35% to 1.15%. (In year 2020, the annual interest rates of the above deposits are 0.35% to 1.89%.)
Lease liability
Sinopharm Holding Yangzhou Co., Ltd.15,391,588.00
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd.6,252,122.186,628,838.10
Lerentang Investment Group Co., Ltd.5,489,599.526,112,542.74
Zhang Yechuan4,527,961.175,201,907.68
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd.3,243,616.533,434,525.25
Xiong Xinyuan2,582,102.832,873,340.76
Guangdong Jiyuantang Development Co., Ltd.1,743,569.883,085,854.50
Shenyang Shengdiou Trading Co., Ltd.1,499,269.221,468,641.78
Sinopharm Holding Beijing Co., Ltd.1,494,302.29130,936.97
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd.1,313,142.67
Li Fang1,293,405.86
Wang Yang936,917.10
Sinopharm Holding Shanxi Jincheng Co., Ltd.587,475.03
Zhang Haiyan427,589.17503,526.40
Sinopharm Xinjiang Pharmaceutical Co., Ltd.387,110.55378,950.29

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

X. Related party relationships and transactions (Continued)

8. Others (Continued)

Related Party30 June 202131 December 2020
Lease liability(Continued)
Gu Haiqun331,772.12427,942.87
Zhijun Pingshan294,545.87338,800.77
Zhang Guitang228,947.93
Beijing Huafang Investment Co., Ltd.216,830.68336,640.65
Shanghai Baizhong Business Development (Group) Co., Ltd.151,568.54300,058.00
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd.116,951.13
Sinopharm Holding (China) Financing Lease Co., Ltd.91,512.93388,839.95
Sinopharm Group172,342.31
Pu'er Songmao Medicine Group Co., Ltd.37,330.98
Total48,601,901.2031,821,020.00

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XI Commitments and contingencies

1. Commitments

(1)Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognized in balance sheet are analyzed as follows:
30 June 202131 December 2020
RMB‘0,000RMB‘0,000
Buildings, machinery and equipment42.1642.16

2. Contingencies

As of the balance sheet date, there were no contingencies that the Group was required to disclose.

XII Other significant events

1. Segment reporting

Operating segments

For management purposes, the Group is organized into business units based on its products and services and hasthree reportable operating segments as follows:

(1) The Head Office, which is mainly engaged in the investment and management of businesses;

(2) Pharmaceutical distribution segment, which is mainly engaged in the distribution of medicine and pharmaceuticalproducts to customers;

(3) Retail pharmacy segment, which is the management of the operation of Guoda Pharmacy.

Management monitors the results of the Group’s operating segments separately for the purpose of making decisionsabout resource allocation and performance assessment. Segment performance is evaluated based on reportablesegment profit, which is measured consistently with the Group’s profit before tax.

Inter-segment sales and transfers are transacted with reference to the selling prices used in the transactions carried outwith third parties at the then prevailing market prices.

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

XII Other significant events (Continued)

1. Segment reporting (Continued)

Operating segments (Continued)

Operating segment information as at and for the semi year ended

Head OfficePharmaceutical distributionPharmaceutical retailElimination between segmentsTotal
Principal operations income-22,714,878,520.8310,625,590,134.69(499,204,175.96)32,841,264,479.56
Principal cost of sales-(21,415,481,154.82)(8,237,771,652.36)497,003,293.22(29,156,249,513.96)
Income from investments in associates157,696,473.52(749,864.47)749,788.76-157,696,397.81
Net profit804,194,136.76462,450,144.61263,262,365.37(621,912,192.25)907,994,454.49
Total assets14,935,672,415.1125,483,335,796.4416,344,255,324.13(12,572,385,131.73)44,190,878,403.95
Total liabilities(3,580,219,319.14)(19,600,657,390.32)(10,497,431,348.24)6,975,557,587.13(26,702,750,470.57)

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements

1. Accounts receivable

The accounts receivable by category are analyzed below:
30 June 202131 December 2020
Gross carrying amountProvision for bad debtBook valueGross carrying amountProvision for bad debtBook value
AmountProportionAmountProportionAmountProportionAmountProportion
Items for which provision for bad debt is recognised separately25,150,432.163.58%(334,294.70)1.33%24,816,137.4618,549,524.823.04%(334,294.70)1.80%18,215,230.12
Items for which provision for bad debt is recognized by group (credit risk characteristics)676,458,655.1296.42%(1,664.00)-676,456,991.12591,360,071.0196.96%--591,360,071.01
701,609,087.28100.00%(335,958.70)0.05%701,273,128.58609,909,595.83100.00%(334,294.70)0.05%609,575,301.13

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

At 30 June 2021, accounts receivable that are individually assessed for provisions are as follows:
Debtor’s nameCarrying amountBad debt provisionRateAssessment for impairment
Receivables from subsidiaries of the Group24,816,137.46--Internal related parties, with lower-tier recovery risk
Client A323,044.50(323,044.50)100.00%Debtor had mismanagement, subject to serious financial difficulties, and the expected recoverability is very low
Client B11,250.20(11,250.20)100.00%Debtor had mismanagement, subject to serious financial difficulties, and the expected recoverability is very low
25,150,432.16(334,294.70)
Provision for bad debts of accounts receivable according to the general model of expected credit loss:
30 June 2021
Estimated default amountExpected credit loss in entire lifetimeExpected credit loss rate
Within 1 year676,425,237.12--
1 to 2 years33,418.00(1,664.00)4.98%
676,458,655.12(1,664.00)-
The accounts receivable for which the Company recognised provision for bad debts using the aging analysis method are presented as follows:
30 June 2021
Within 1 year701,241,374.58
1 to 2 years33,418.00
2 to 3 years--334,294.70
-701,609,087.28

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements(Continued)

1. Accounts receivable (Continued)

Bad debt provision for the current period as follows:

Opening balanceIncreases during the periodReversal during the periodWrite-off during the periodOtherClosing balance
Bad debt provision334,294.701,664.00---335,958.70
As at 30 June 2021, the top five accounts receivable by customer are as follows:
Amount% of the total accounts receivableBad debt provision amount
Top 1 Account receivable75,221,487.6810.72%-
Top 2 Account receivable40,139,214.965.72%-
Top 3 Account receivable39,234,570.325.59%-
Top 4 Account receivable24,895,974.533.55%-
Top 5 Account receivable24,378,296.973.47%-
203,869,544.4629.05%-

Accounts receivable derecognised due to transfer of financial assets was as follows:

From January to June 2021, the Company factored a small portion of accounts receivable at amortised cost to financialinstitutions. The amount of accounts receivable derecognised was RMB 26,097,254.38 (from January to June 2020:

RMB156,689,648.43), and the amount of loss recognised through Investment income was RMB 221,815.32 (from Januaryto June 2020: RMB1,526,968.25).

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

2. Other receivables

30 June 202131 December 2020
Other receivables3,467,427,719.163,562,309,346.07
Category of other receivables by nature is as follows:
Nature30 June 202131 December 2020
Amounts due from subsidiaries3,442,240,233.023,539,822,609.73
Receivable of equity transactions8,980,000.008,980,000.00
Deposit331,867.02343,834.42
Others71,367,604.2768,533,518.66
3,522,919,704.313,617,679,962.81

Changes in bad debt provision for the 12-month expected credit losses and lifetime expected credit losses on otherreceivables are as follows:

Stage 1Stage 2Stage 3
Bad debtExpected credit losses over the next 12 monthsEntire lifetime expected credit losses(No credit impairment occurred)Entire lifetime expected credit losses(Credit impairment occurred)Total
Balance at 1 January 2021-56,394.5055,314,222.2455,370,616.74
Balance at 1 January 2021 during the period
Provisions during the period-4,709.88127,901.60132,611.48
Reversal during the period-(11,243.07)-(11,243.07)
Balance at 30 June 2021-49,861.3155,442,123.8455,491,985.15

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

2. Other receivables (Continued)

The aging analysis of other receivables was as follows:

30 June 2021
Within 1 year3,465,946,636.42
1 to 2 years2,490,521.42
2 to 3 years436,281.36
Over 3 years54,046,265.11
Total3,522,919,704.31

Bad debt provision for the current period as follows:

Opening balanceIncreases during the periedReversal during the periodWrite-off during the periodOtherClosing balance
Bad debt provision55,370,616.74132,611.48(11,243.07)--55,491,985.15
As at 30 June 2021,the accumulated top five other receivables are analysed below:
NatureAmountAge% of total amountBad debt provision
Sinopharm GuangzhouEntrusted borrowings950,965,833.42Within 1 year26.99%-
Sinopharm GuangxiEntrusted borrowings566,090,705.45Within 1 year16.07%-
South Pharma & TradeEntrusted borrowings200,193,333.25Within 1 year5.68%-
Sinopharm Guangdong YuexingEntrusted borrowings173,834,848.77Within 1 year4.93%-
Sinopharm DongguanEntrusted borrowings161,153,558.44Within 1 year4.57%-
2,052,238,279.3358.24%-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

3. Long-term equity investments

30 June 202131 December 2020
Original valueBad debt provisionCarrying amountOriginal valueBad debt provisionCarrying amount
Investments in subsidiaries5,614,677,427.58-5,614,677,427.585,614,677,427.58-5,614,677,427.58
Investments in associates2,439,507,057.5139,930,000.002,399,577,057.512,298,920,817.5839,930,000.002,258,990,817.58
8,054,184,485.0939,930,000.008,014,254,485.097,913,598,245.1639,930,000.007,873,668,245.16
(1)Subsidiaries
31 December 2020IncreasesDecrease30 June 2021Amount of provision for impairment
Sinopharm Shenzhen Jianmin60,054,911.04--60,054,911.04-
Sinopharm Shenzhen Material15,450,875.93--15,450,875.93-
Sinopharm Shenzhen Logistics5,019,062.68--5,019,062.68-
Sinopharm Guangzhou3,588,689,716.80--3,588,689,716.80-
Sinopharm Guangxi525,456,951.07--525,456,951.07-
Sinopharm Yanfeng38,207,800.00--38,207,800.00-
Guoda Pharmacy1,361,800,110.06--1,361,800,110.06-
Accord Devices19,998,000.00--19,998,000.00-
--
5,614,677,427.58--5,614,677,427.58-

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

3. Long-term equity investments (Continued)

(2)Associates
Changes in the period
Opening balanceProfit or loss under the equity methodAdjustment in other comprehensive incomeOther changes in equityCash dividend or profits declaredClosing balanceProvision of impairment
Main Luck Pharmaceutical322,696,745.8734,596,706.61---357,293,452.48-
Zhijun Suzhou------39,930,000.00
Sinopharm Zhijun425,557,825.1128,056,303.69---453,614,128.80-
Zhijun Trade10,408,675.1864,801.68---10,473,476.86-
Zhijun Pingshan176,566,795.9025,603,869.60---202,170,665.50-
Sinopharm Shyndec1,323,760,775.5269,374,791.9464,854.90(460,868.29)(16,714,220.20)1,376,025,333.87-
2,258,990,817.58157,696,473.5264,854.90(460,868.29)(16,714,220.20)2,399,577,057.5139,930,000.00

Notes to financial statements (Continued)

For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

4. Operating revenue and cost

For the six months ended 30 June 2021For the six months ended 30 June 2020
RevenueCostRevenueCost
Principal operations2,062,334,204.151,982,274,379.601,750,454,957.661,679,162,910.91
Other operations16,035,919.219,145,932.2022,032,405.9010,401,151.33
2,078,370,123.361,991,420,311.801,772,487,363.561,689,564,062.24
ClassificationFor the six months ended 30 June 2021
By product
Include:
Pharmaceuticals1,971,490,771.22
Medical devices and disposables86,143,203.37
Diagnostic reagents4,700,229.56
Other11,402,530.41
By area
Include:
China2,073,736,734.56
By major activities
Include:
Pharmaceutical distribution2,062,334,204.15
Others11,402,530.41
By contract duration
Include:
At a point in time2,062,334,204.15
Overtime11,402,530.41
2,073,736,734.56

Notes to financial statements (Continued)For the six months ended 30 June 2021

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

XIII Notes to key items of the company financial statements (Continued)

4. Operating revenue and cost (Continued)

Information about the Company’s obligations is as follows:

(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 days from delivery;
(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service is completed.

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

The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled isRMB 8,566,647.98, which is expected to be recognized within 1 year.

Revenue is as follows:
30 June 202130 June 2020
Revenue from contracts with customers2,073,736,734.561,768,294,423.43
Rentals4,633,388.804,192,940.13
2,078,370,123.361,772,487,363.56

5. Investment income

For the six months ended 30 June 2021For the six months ended 30 June 2020
Gain on long-term equity investments under the cost method619,290,387.90612,502,685.91
Gain on long-term equity investments under the equity method157,696,473.52133,549,495.38
Income from the derecognition of financial assets measured at amortised cost measured at amortised cost(221,815.32)(1,526,968.25)
? Dividends from other financial assets3,599,555.614,109,881.90
? Others-998,665.84
780,364,601.71749,633,760.78

Supplementary information to financial statements

For the six months ended 30 June 2021

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

XIV Supplementary information to financial statements

1. Schedule of non-recurring profit or loss

Amount for 30 June 2021Illustration
Gains and losses from disposal of non-current assets(802,029.11)Mainly probability of gain and losses from the end of lease
Government grants recognized in income statement for the current year, except for those closely related to the ordinary operation of the Company which the Group enjoyed constantly according to the allotment standards or quantitative criteria of the country35,363,341.68Mainly probability of exemption and other government grants for special purpose and finance Discount
The investment cost of an enterprise to acquire a subsidiary, an associate and a joint venture, which is less than profits derived from the fair value of the identifiable net assets of the invested unit when investing578,610.41
Reversal of bad debt provision for accounts receivable and contract assets that were tested for impairment individually88,994.76
Non-operating income and expenses other than the aforesaid items7,540,783.96Mainly probability of the non operating income generated from the write off of funds that do not need to be paid in the current period
Other1,717,435.90
Less:Impact of income tax12,962,326.01
Impact of non-controlling interests after tax11,034,206.56
20,490,605.03
Basis for preparation of detailed list of non-recurring profit or loss items: The Group's recognition of non-recurring profit or loss items is in accordance with the provisions of Explanatory announcement No.1 on information disclosure by companies offering securities to the public - non-recurring profit or loss.

Appendix(Continued)For the six months ended 30 June 2021

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

XIV Supplementary information to financial statements (Continued)

2. Return on equity (“ROE”) and earnings per share (“EPS”)

Weighted average ROE (%)Basic EPS (RMB/Share)
Basic EPS (RMB/Share)Diluted EPS (RMB/Share)
Net profit attributable to ordinary shareholders of the parent5.22%1.731.73
Net profit after deducting non-recurring profit or loss attributable to the Company’s ordinary shareholders of the parent5.08%1.681.68

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