China National Accord Medicines Corporation Ltd.
Semi-Annual Report 2022
August 2022
Section I. Important Notice, Contents and InterpretationBoard of Directors, Supervisory Committee, all directors, supervisors and seniorexecutives of China National Accord Medicines Corporation Ltd. (hereinafterreferred to as the Company) hereby confirm that there are no any fictitiousstatements, misleading statements, or important omissions carried in this report,and shall take all responsibilities, individual and/or joint, for the reality,accuracy and completion of the whole contents.
Lin Zhaoxiong, Principal of the Company, Gu Guolin, person in charger ofaccounting works and Wang Ying, person in charge of accounting organ(accounting principal) hereby confirm that the Financial Report of Semi-Annual Report 2022 is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
Contents
Section I. Important Notice, Contents and Interpretation ................................................................. 1
Section II Company Profile and Main Financial Indexes ...... 4
Section III Management Discussion and Analysis ...... 8
Section IV Corporate Governance ...... 34
Section V Environmental and Social Responsibility ...... 35
Section VI. Important Events ........................................................................................................ 39
Section VII. Changes in Shares and Particulars about Shareholders ............................................... 79
Section VIII. Preferred Stock ........................................................................................................ 85
Section IX. Corporate Bonds ......................................................................................................... 86
Section X. Financial Report .......................................................................................................... 87
Documents Available for Reference
I.The financial statements carried with the signature and seals of legal representative, person in charger of accounting works andperson in charge of accounting organ;II.Original text of all documents of the Company as well as the manuscript of the announcement disclosed in the reporting period onJuchao Website.III. Text of the Semi-Annual Report 2022 bearing the signature of the legal representative.
Interpretation
Items | Refers to | Contents |
Listed Company, Company, the Company, Sinopharm Accord, the Group | Refers to | China National Accord Medicines Corporation Ltd. |
SINOPHARM | Refers to | China National Pharmaceutical Group Corporation |
Sinopharm Holding | Refers to | Sinopharm Group Co., Ltd.; controlling shareholder of the Company |
Company Law | Refers to | Company Law of the People’s Republic of China |
Securities Law | Refers to | Securities Law of the People’s Republic of China |
Yuan, 10 thousand Yuan, 100 million Yuan | Refers to | RMB, RMB 10 thousand, RMB 100 million |
Abbreviation of the enterprises | Refers to | |
Sinopharm Holding Guangzhou | Refers to | Sinopharm Holding Guangzhou Co., Ltd. |
Guoda Drugstore | Refers to | Sinopharm Holding Guoda Drugstore Co., Ltd. |
Sinopharm Holding Guangxi | Refers to | Sinopharm Holding Guangxi Co., Ltd. |
China National Zhijun | Refers to | China National Zhijun (Shenzhen) Pharmaceutical Co., Ltd. |
Zhijun Pharmacy Trade | Refers to | Shenzhen Zhijun Pharmacy Trade Co., Ltd. |
Zhijun Pingshan | Refers to | China National Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. |
Main Luck Pharmaceuticals | Refers to | Shenzhen Main Luck Pharmaceuticals Inc. |
Section II Company Profile and Main Financial IndexesI. Company profile
Short form of the stock | Sinopharm Accord, Accord B | Stock code | 000028, 200028 |
Stock exchange for listing | Shenzhen Stock Exchange | ||
Name of the Company (in Chinese) | 国药集团一致药业股份有限公司 | ||
Short form of the Company (in Chinese if applicable) | 国药一致 | ||
Foreign name of the Company (if applicable) | China National Accord Medicines Corporation Ltd. | ||
Short form of foreign name of the Company (if applicable) | Sinopharm Accord | ||
Legal representative | Lin Zhaoxiong |
II. Person/Way to contact
Secretary of the Board | Securities affairs representative | |
Name | Chen Changbing | Wang Zhaoyu |
Contact add. | Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen, Guangdong Province | Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen, Guangdong Province |
Tel. | +(86)755 25875222 | +(86)755 25875222 |
Fax. | +(86)755 25195435 | +(86)755 25195435 |
gyyzinvestor@sinopharm.com | gyyz0028@sinopharm.com |
III.Others
1.Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period ornot
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,found more details in Annual Report 2021.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparationplace for semi-annual report have no change in reporting period, found more details in Annual Report 2021.
3. Other relevant information
Whether other relevant information have changed during the reporting period
□ Applicable √ Not applicable
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √No
Current period | Same period of last year | Increase/decrease in this report y-o-y (+,-) | |
Operating revenue (RMB) | 36,128,910,049.98 | 33,163,091,887.39 | 8.94% |
Net profit attributable to shareholders of the listed Company (RMB) | 674,215,912.93 | 741,445,013.25 | -9.07% |
Net profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses (RMB) | 652,857,302.76 | 720,954,408.22 | -9.45% |
Net cash flow arising from operating activities (RMB) | 1,041,664,059.17 | 1,229,373,283.57 | -15.27% |
Basic earnings per share (RMB/Share) | 1.57 | 1.73 | -9.25% |
Diluted earnings per share (RMB/Share) | 1.57 | 1.73 | -9.25% |
Weighted average ROE | 4.44% | 5.22% | 0.78 percentage points down |
End of current period | End of last period | Increase/decrease in this report-end over that of last period-end (+,-) | |
Total assets (RMB) | 45,968,980,824.57 | 42,783,682,431.81 | 7.45% |
Net assets attributable to shareholder of listed Company (RMB) | 15,342,295,205.24 | 14,924,938,052.50 | 2.80% |
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (InternationalAccounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS (InternationalAccounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
2. Difference of the net profit and net assets disclosed in financial report, under both foreign accountingrules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules orChinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item | Amount | Note |
Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 2,572,259.70 | Gains from disposal of the right-of-use assets arising from store surrenders during the Period |
Governmental subsidy reckoned into current gains/losses (while closely related with the normal business of the Company, the government subsidy that accord with the provision of national policies and are continuously enjoyed in line with a certain standard quota or quantity are excluded) | 33,357,845.59 | Various special subsidies received in the Period |
Switch back of provision for depreciation of account receivable that individually tested for impairment | 3,151,359.86 | |
Other non-operating income and expenditure except for the aforementioned items | 1,435,887.44 | The non-operating income arising from the written off amount that does not need to be paid during the period |
Other gains/losses satisfy a definition of extraordinary gains/losses | 2,574,793.60 | |
Less: Impact on income tax | 10,195,412.45 | |
Impact on minority shareholders’ equity (post- | 11,538,123.57 |
tax) | ||
Total | 21,358,610.17 |
Details of other gains/losses satisfy a definition of extraordinary gains/losses :
□ Applicable √ Not applicable
There are no other gains/losses items that satisfy the definition of extraordinary gains/losses in the Company.
Explain the items defined as extraordinary profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
□ Applicable √ Not applicable
There are no items defined as extraordinary profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in Q&AAnnouncement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
Section III Management Discussion and Analysis
I. Main businesses of the company in the reporting periodThe Company shall comply with the “retailing industries” of Shenzhen Stock Exchange Self-Regulatory Guidelines for ListedCompanies No.3 - Disclosure of Industry Information
(i) Main business of the Company includes pharmaceutical distribution and pharmaceutical retail, specifically asfollows:
1.In the field of pharmaceutical distribution, the Company mainly based in Guangdong & Guangxi, leading in thescale of pharmaceutical distribution in the two regions.
As of June 30, 2022, there were 1,060 secondary & tertiary medical institutions; 7,106 grass-roots medical clientsand 4,819 retail terminal customers (chain pharmacies, single stores, and self-pay pharmacy in hospitals). Interms of distribution, Guangdong and Guangxi regions have subdivided the format markets, pharmaceuticaldistribution and apparatus consumables, retail direct sales and retail diagnosis and treatment, medical instrumentlinkage, retail development, and the entire industry business maintains a leading position in the industry;innovative business continues to develop new customer cooperation models and become a medical supply chainmanagement solution and service providers; improve national logistics planning and construction, provide third-party logistics professional services, and create leading logistics and supply chain service capabilities. Throughcontinuous integration of distribution and logistics, deep penetration into the terminal market and improving thestepwise distribution network. To build an intelligent supply chain, committed to become the pharmaceutical andhealth products & service provider with the most influential, the highest shares, the most comprehensive variety,the best service and the fastest distribution in South China.
2. In the pharmaceutical retail field, Guoda Drugstore is a leading pharmaceutical retailer in sales scalethroughout the countryBy the end of June 2022, Guoda Drugstore has operated 9,137 stores, covering 20 provinces, autonomous regionsand municipalities, which has formed a drugstore networks covering eastern and northern China, southern coastalcities, and gradually expanded into northeast, central plains and inland cities, the sales scale of which has maintainthe leading within industry; Guoda drugstore, the business of which were mainly relying on social retaildrugstores, has been putting great attention on the development of professional service system with medicalresources as core competitiveness, building a group of stores with commercial activities, which are able to provideretails and therapy services of “5+X” that integrating medical service and health-care products sales and cooperatewith hospitals; at the same time, the Company has been vigorously developing new business, exploring and
expanding new sales channels, improving pharmacy service capacity, being dedicated to transit from a traditionalmedical retail into an innovative service enterprise. By means of conventional products retail management,improving major brands and exploring business cooperation with supplier, accelerating the establishment andimprovement of DTP business and continuation of health care service system, Guoda has built industry-leadingprofessional service ability.
(ii) Business models
1.Business of distribution
(1)Procurement model
In terms of procurement, the company has established a procurement mechanism of "front end -- back end"division of labor and cooperation, which effectively reduces the procurement cost. The "front end" is thepurchasing department, which, according to business needs, looks for supply of goods, establishes first-runvarieties, compares prices and conducts business negotiations on product quality requirements, lead time, supplyprice and payment terms, in addition, effectively manages suppliers, including supplier qualification, servicequality, integrity degree, etc., establishes supplier files, and organizes supplier evaluations. The "back end" is thesupply chain department, which is responsible for integrating supply chain resources, grasping supply chaininformation as a whole, realizing professional division of labor, promoting integrated management, creatingintegrated service background, assisting the "front end" business, and completing daily purchase contracts andorders.
(2) Sales model
In terms of sales model, the company has carried out transformation and innovation according to the "one bodyand two wings" strategy of distribution sector.
For traditional business, the distribution implements the business model of "network submersion" in southernChina, and is the main channel supplier of drugs in Guangdong and Guangxi, and has achieved full coverage ofthe national pharmaceutical market. At the same time, we will build special businesses such as equipment,medical beauty, medical care and health, TCM decoction pieces and import, and vigorously expand the endmarkets such as basic-level medical institutions and private hospitals to improve product supply guarantee andbasic-level network coverage capability.
The retail direct selling business undertakes the company’s "integration of wholesale and retail" strategy, promotesthe national retail terminal layout, and deeply develops in southern China and radiated across the country based onthe national top one hundred + professional DTP drugstores, project centralized procurement, the third terminalagents and other distribution networks.
Meanwhile, the company provides customers with one-stop overall solutions and diversified value-added servicesand innovative services; 1) Promote the implementation of medical service innovation model through hospital
supply chain project, equipment SPD, regional distribution, regional medical services (inspection, disinfection),and outsourcing and acceptance of prescriptions prescription dispensing and undertaking, etc.. The subsidiariesSinopharm Holding Guangzhou Medical Technology Co., Ltd., Sinopharm Holding Guangzhou MedicalManagement Co., Ltd., and Sinopharm Holding Guangzhou Medical Supply Chain Service Co., Ltd. have carriedout effective business expansion and practice on professional service products such as medical equipment lifecycle management, reagent consumables and disinfection business. 2) In terms of third-party logistics business,we undertake the warehousing, distribution and other value-added services for third-party customers such aspharmaceutical equipment manufacturers, pharmaceutical equipment business, centers for disease control, vaccinemanufacturers, etc., and provide professional third-party logistics solutions for integrated businesses such as third-party bonded logistics to national warehousing, distribution and logistics services.
(3) Logistics and distribution model
After long-term development and accumulation, the logistics center has established a complete modernpharmaceutical logistics service system, and integrated warehousing and distribution and intelligent supply chainservice abilities. The served customers include upstream and downstream clients of distribution and operationheadquarters, third-party logistics customers include innovative pharmaceutical companies, disease controlcustomers, pharmaceutical equipment manufacturers and commercial companies, vaccine manufacturers, etc. Thedistribution scope covers the whole country. Distribution terminals include direct selling customers of hospitals,basic-level medical customers, small social medical customers, commercial customers, retail direct sellingcustomers, centers for disease control, individuals, etc. Relying on the national logistics resources of SinopharmHolding and combined with the resources of carriers, the logistics center has achieved full coverage of nationalurban and rural medical logistics. The company's logistics products mainly include warehousing inspectionservices, storage services, delivery services, insurance and supply chain optimization and other value-addedservices; as well as delivery services in medial transportation cities, special car services for medicines, medialexpress delivery services, supply chain optimization and other value-added services.
2. Retail business
(1) Procurement model
The procurement model of Guoda Drugstore is divided into centralized procurement and local procurement. Theprocurement model of centralized procurement can be divided into unified signing separate purchasing andunified signing unified purchasing. For unified signing separate purchasing, the headquarters uniformly signstripartite contract (headquarters, regional company and supplier), and the regional company directly purchasesfrom supplier. For unified signing unified purchasing, the headquarters and supplier sign the contracts, theheadquarters centralizedly gathers the goods and then distributes to regional company for sales. The procurementmodel of local procurement is that the regional company directly signs contracts with supplier, and purchases andsells by itself.
(2) Sales model
The retail business of Guoda Drugstore is mainly carried out in the form of chain operation, including company-owned stores and franchised stores. By the end of June 2022, there were 9,137 store in total, including7,581directly owned stores, 1,556 franchised stores, covering 20 provincial-level markets; main business of theCompany including Chinese patent drugs and generic medicines, traditional Chinese medicine decoction pieces,medical equipment, health food, healthy food and supplies, etc.. In terms of business model, it actively promotesonline to offline Internet + medicine, and explores "5+X" retail and diagnosis and treatment innovative storescombining traditional Chinese medicine, Western medicine, rehabilitation and physiotherapy services. At the sametime, it continuously optimizes the slow disease diagnosis and treatment and member management new model,now there are nearly 24 million active members, establishes health records for customers with chronic disease,follow up and pay close attention in a long term, and cooperates with top ranked suppliers at home and abroad,constantly enhances professional pharmaceutical affairs service ability, provide quality health products andservices for the majority of the people, and fulfills the social responsibility of a state-owned enterprise.
(3) Logistics and distribution model
The logistics and warehousing management model of the headquarters and subsidiaries of Guoda Drugstore hastwo main types, the first is self-operated logistics model, namely the subsidiaries rent warehouses for thewarehousing and distribution services of stores and external customers, the second is the model to entrust statecontrol system for logistics distribution, namely the subsidiaries entrust the local state control system for storageand transportation based on factors such as cost or resource sharing. There are three modes of transportation, i.e.self-operated distribution, entrusting a third party for transportation, and mixed transportation management - self-operated + entrusted mode.
Operation of the retail stores during the reporting period:
1. As of June 2022, Guoda Drugstore has 7581 direct-sale stores, sales revenue amounted to 8.64 billion yuan; andhas 1556 franchised stores, the distribution revenue amounted as 607 million yuan.
Region | Direct-sale store | Franchised outlet | ||
Numbers | Sales revenue (in 10 thousand Yuan) | Numbers | Distribution revenue (in 10 thousand Yuan) |
North
North | 4,867 | 535,664 | 676 | 28,309 |
East China | 1,120 | 129,569 | 602 | 26,310 |
South China
South China | 563 | 78,112 | 130 | 3,266 |
Central China | 324 | 28,474 | 141 | 2,758 |
Northwest | 366 | 64,855 | 7 | 86 |
Southwest
Southwest | 341 | 27,114 | 0 | 0 |
Total | 7,581 | 863,789 | 1,556 | 60,729 |
Note: North: Liaoning, Shanxi, Inner Mongolia, Beijing, Tianjin, Hebei, Jiling;East China: Shanghai, Jiangsu, Anhui, Shandong, Fujian, Zhejiang;South China: Guangdong, Guangxi;Central China: Henan, Hunan;Northwest: Ningxia, Xinjiang;Southwest: Yunnan
(1) There were 437 new direct-sale stores opened and 113 closed in first half of 2022, a net increase of 324 stores.
Region | Direct-sale store | |
Number of store increased | Total area (square meters) | |
North | 299 | 28,419 |
East China | 59 | 6,867 |
South China
South China | 18 | 1,867 |
Central China | 21 | 2,405 |
Northwest
Northwest | 24 | 2,282 |
Southwest | 16 | 2,342 |
Total | 437 | 44,182 |
(2) Medical insurance qualification of the stores
As of June 30, 2022, the Company has 7,581 chain stores with directly selling, and 6,891 pharmacy stores obtainedthe qualification of “Designated retail pharmacies of medical insurance”, representing 91% of the total number ofdirectly operated pharmacies.
Region | Number of stores | Stores obtained the qualification of “Designated retail pharmacies of medical insurance” | Ratio in total pharmacies in regions |
North | 4,867 | 4,496 | 92% |
East China
East China | 1,120 | 893 | 80% |
South China | 563 | 538 | 96% |
Central China | 324 | 302 | 93% |
Northwest | 366 | 331 | 90% |
Southwest
Southwest | 341 | 331 | 97% |
Total | 7,581 | 6,891 | 91% |
2.Change of main selling index
Year | Per customer transaction (RMB) | Proportion of prescription drugs | Proportion of medical insurance sales in direct-sale stores | Proportion of the direct member sales | Proportion of transaction times of direct members |
2021 | 90 | 54% | 41% | 70% | 64% |
First half of 2022 | 101 | 55% | 44% | 73% | 65% |
(1) Classify according to region
Region | Amount of sales growth (tax-free, in 10 thousand yuan) | Gross margin | Net profit ratio |
North | 25,246 | 26% | 1.4% |
East China | -10,258 | 29% | 0.7% |
South China
South China | 1,870 | 23% | 1.1% |
Central China | -275 | 27% | 1.3% |
Northwest | 16,058 | 13% | 1.4% |
Southwest
Southwest | 5,100 | 41% | 4.7% |
(2) Operating efficiency of direct-sale stores during the reporting period
Region | Number of stores | Operating area of the stores (square meters) | Daily average efficiency (tax-included, Yuan/Square Meters) | Rental efficiency (tax-included, annual sales volume/rental) |
North | 4,867 | 598,274 | 55 | 15 |
East China | 1,120 | 131,278 | 64 | 16 |
South China
South China | 563 | 64,683 | 74 | 18 |
Central China | 324 | 36,158 | 49 | 15 |
Northwest | 366 | 40,212 | 102 | 30 |
Southwest | 341 | 41,750 | 37 | 16 |
Note: Daily average efficiency=Average daily operating income/Operating area of the stores;Average daily operating revenue=Operating revenue (tax-included) of the store in the Year/Operating days of store in the Year.Rental efficiency=Annual sales volume/Yearly rental
3.Top 10 stores in terms of operating revenue
The cumulative operating revenue from top 10 stores takes 7.8% in Guoda Drugstore’s overall operating revenue.
Name of the store | Address | Date of opening | Building area(m2) | Operation mode | Property ownership |
Hebei Lerentang HQ | Shijiazhuang | 2010/9/16 | 1206 | Directly operated | Rental properties |
Head store of Guoda in Inner Mongolia | Hohhot | 2003/3/18 | 1290.35 | Directly operated | Rental properties |
Yi Yuan Zongli Store | Taiyuan | 2002/9/27 | 821.8 | Directly operated | Rental properties |
Jiangsu Yangzhou Baiyulan Store | Yangzhou | 1991/9/1 | 970 | Directly operated | Rental properties |
Yi Yuan Er Yuan Store | Taiyuan | 2011/2/14 | 629.9 | Directly operated | Rental properties |
Inner Mongolia Hailaer Er Store | Hulunbeier | 2015/6/1 | 195 | Directly operated | Rental properties |
Buxin Village Store in Shenzhen | Shenzhen | 2017/4/1 | 337 | Directly operated | Rental properties |
Beijing Xidan Golden Elephant | Beijing | 1997/5/3 | 773.16 | Directly operated | Rental properties |
No. 36 store of Urumqi-Xinjiang New Special Pharmaceutical Chain Co., Ltd. | Urumqi | 2018/8/7 | 112 | Directly operated | Rental properties |
Xiamen New Special Drugstore | Xiamen | 2005/3/30 | 132.9 | Directly operated | Rental properties |
4.Structure of the category at retail terminal
Category | First half of 2022 | 2021 |
Rx Drug | 55% | 54% |
OTC | 25% | 25% |
Household health products | 7% | 6% |
Health care products | 4% | 4% |
TCM | 4% | 4% |
Proportion of other categories | 3% | 4% |
Personal care | 1% | 1% |
Convenience food | 1% | 1% |
Total | 100% | 100% |
5. Purchasing and supplies
Goods suppliers of Guoda Drugstore are mainly external suppliers and assist affiliated enterprise ofSINOPHARM and private brands. Top five suppliers in the first half of 2022:
Ranking | Purchase amount (tax included) (10 thousand yuan) | Procurement ratio |
No.1
No.1 | 41,303.0 | 5.1% |
No.2 | 35,731.1 | 4.4% |
No.3 | 28,619.7 | 3.6% |
No.4 | 21,401.1 | 2.7% |
No.5
No.5 | 16,167.1 | 2.0% |
6. Member management and service business
The company has improved the operating efficiency by optimizing the product structure. In the first half of 2022,
direct sales of members accounted for 73%, the unit price of member customers was 113 yuan, a year-on-yearincrease of 13.2%, and the unit price of total customers was 101 yuan, a year-on-year increase of 10.6%. The maindifference between members and non-members lies in the recognition of the brand and the differentiation on thetype of merchandise purchased.
7. Warehousing and logistics during the reporting period
Logistics system of Guoda Drugstore is constantly improving. By the end of June 2022, Guoda Drugstore has a
total of 36 logistic centers/distribution centers in 20 provinces (including 9 commissioned logistics and 27 ownedlogistics) and owns warehousing of 180,000 square meters nationwide; of which, 1,460 square meters for coldstorage with 3,824 cubic meters in volume, which are used for storage and circulation of normal temperature,shady and cool, and refrigerated products, guaranteed the commodity distribution for all customers; owns 162logistic vehicles in the country and 23 vehicles for refrigeration; Number of the logistics workforce nationwidefrom Guoda was 1,284.
8. Undertake prescription outflow and chronic disease management
With the continuous deepening of the national pharmaceutical reform, the basis of the model of realizing the highadded value of medicine with doctors' labor has been collapsed through impacts of policies such as volume-basedprocurement, centralized bidding, and dual-channel, and prescription outflow has gradually become a trend. Infirst half of 2022, the overall prescription drug sales was 53 million yuan with tax included(DTP included), up
7.4% on a y-o-y basis.
In order to better undertake the prescription outflow, it is necessary to strengthen professional service capacity andestablish chronic disease management team. Guoda Drugstore organized weekly online learning for diabetesspecialists and hypertension specialists, covering 27 regions as of June 2022, and trained 3,069 diabetes specialistsand 3,028 hypertension specialists. A total of 1.19 million members of diabetes and 1.21 million members ofhypertension have been recorded, and the sales of diabetes and hypertension products increased by 17.5% and
7.2% on a year-on-year basis. The ability to undertake outflow of prescriptions and chronic disease managementare increasing in size gradually.II. Core competitiveness analysis
1. Strong network coverage and layout
Relying on the perfect distribution network and variety resources, Sinopharm Accord has unified the wholesaleand retail resources. The Company owns complete drug distribution network, sales of all forms have achieved asteady growth.
(1) There were 27 prefecture-level cities in Guangdong and Guangdong fully cover medical institutions at alllevels, small social medical institutions, and retail chain single-store terminals; in terms of retail diagnosis andtreatment, DTP and hospital-side pharmacies (Sinopharm Holding Drugstore) reaching 133;
(2) Guoda Drugstore has 9,137 retail stores and chain network spans 20 provinces and autonomous regions,covering more than 150 cities in China.
2. Abundant variety resources
After years of hard work, the Company’s distribution business has accumulated rich variety resources in
pharmaceuticals, consumables and other fields, and established extensive cooperative relations with thousands ofdomestic manufacturers and commercial enterprises, and established stable business relationships with hundredsof import and joint ventures, the overall operating product regulations exceed 55,000.
Guoda Drugstore operates more than 160,000 merchandises. With its relatively comprehensive purchasingnetwork and years of experience in commodity management, Guoda Drugstore has established a merchandisesystem with wide coverage, high professionalization, and rich varieties.
3. Complete logistics and distribution system
In terms of distribution, warehousing and transportation network, the logistics center has more than 180,000square meters of warehouse space in Guangdong and Guangxi; 5 logistics centers, 22 distribution centers, and 2transfer station have formed a stepped logistics distribution network. Relying on Sinopharm Holding's nationallogistics resources and combined with the carrier resources, we have achieved full coverage of national urban andrural medical logistics. In terms of informatization and automation, it has a modern logistics management system,including WMS warehouse management system, TMS intelligent dispatching system, logistics visualizationsystem, AGV goods-to-person system, mechanical arm and five-sided scanning code instrument, to realize thedigitalization and intelligentization of logistics, and continuously improve the efficiency and quality of logisticsservices. In terms of operation management, it has implemented unified standardized operation norms andmanagement, and implemented integrated quality management system, integrated information management,integrated operation management. It has implemented unified planning, unified deployment, and unifiedmanagement for logistics resources management.
Guoda Drugstore owns a nationwide modern logistics and distribution system, and the logistics warehouses arelocated in 20 provinces, has 36 large-and-small logistics warehouses, covering an area of more than 180,000square meters in total. The headquarters logistics management is responsible for the logistics warehousesmanagement of all the subsidiary in the country, makes planning and construction for the logistics network, andcollects and analyzes the information of each warehouse, it is the highest logistics management organization. Theheadquarters logistics provides the main line distribution of the collectively purchased commodities to eachwarehouse, and the subsidiaries’ logistics of each region provides all commodity distribution to local stores andexternal customers. The companies with wholesale qualifications can also do wholesale distribution betweenwarehouses.
4. Advantages of stores with medical insurance resources and dual channel
As of June 30, 2022, in terms of distribution and retail, 46 pharmacies in 25 cities in Guangdong and Guangxihave obtained the qualification of "dual-channel" pharmacy. In terms of pharmaceutical retail, number of theGuoda Drugstore with direct medical insurance amounted to 6891, sales with tax-included from direct medicalinsurance store was 8.79 billion yuan, a y-o-y growth of 9%. Sales with medical insurance in direct stores
amounted to 4.1 billion yuan with tax included, up 18% from a year earlier. There were 176 stores with dual-channel and has a cumulative sales of 1.7 billion yuan.
5. The advantages of Compliance
The Company had a big lead under an increasingly stringent regulatory environment for the reason that it has keptemphasizing legalization and compliance in the process of operation and management.
6. The Sinopharm brand with unique influential
Brand of the Company and distribution, industry child-brand and controlling shareholder and actual controller’sbrand come down in one continuous line, depending on powerful force of central enterprises, the Company’spopularity and influence are prominent day by day in the industry.
III. Main business analysisOverviewWhether disclosed the same main business that the Company mainly engaged during the reporting period
□Yes √No
In the first half of 2022, under the influence of factors such as the frequent outbreaks of the COVID pandemic andthe centralized procurement policy, the company cumulatively achieved operating revenue of 36.129 billion yuan,an increase of 8.94% on a year-on-year basis;and net profit attributable to shareholders of listed companies was674 million yuan, a year-on-year decrease of 9.07%.
In the first half of 2022, Sinopharm Accord's distribution business held up under the pressure, improved qualityand efficiency, and achieved double growth in scale and profitability: the cumulative operating revenue reached
25.458 billion yuan, an increase of 11.54% on a year-on-year basis, of which the hospital direct sales revenue was
15.634 billion yuan, a year-on-year increase of 8.59%, the direct sales revenue of other medical institutions (basic-level medical institutions + small private hospitals) was 2.337 billion yuan, a year-on-year increase of 34.82%,and the retail direct sales (chain + single store) revenue was 2.590 billion yuan, a year-on-year decrease of
11.36%; the retail diagnosis and treatment business income was 1.203 billion yuan, a year-on-year increase of
25.29%. Sinopharm Accord’s distribution business achieved a net profit of 529 million yuan in the first half of2022, with a year-on-year increase of 14.34%.
In the first half of 2022, Guoda Drugstore achieved growth in scale after the test of the pandemic, but the speed-upand efficiency improvement was not as good as expected. Its cumulative operating revenue reached 11.149 billionyuan, a year-on-year increase of 2.84%, among them, direct non-DTP revenue was 6.641 billion yuan, a year-on-year increase of 5.24%; direct DTP revenue was 1.495 billion yuan, a year-on-year increase of 14.66%; O2O
revenue was 418 million yuan, a year-on-year increase of 68.50%; franchised store distribution revenue was 614million yuan, a year-on-year decrease of 5.92%; B2C revenue was 129 million yuan, a year-on-year increase of
17.00%. In the first half of 2022, Guoda Drugstore achieved a net profit of 141 million yuan, a year-on-yeardecrease of 46.41%. Guoda Drugstore achieved a net profit attributable to the parent company of 97 million yuan ,a year-on-year decrease of 51.37%.
In the first half of 2022, the company's accumulated investment income in associates was 99 million yuan, a year-on-year decrease of 37.30%.
(i)Macro environment and industry environmentIn the first half of 2022, China's GDP increased by 2.5% on a year-on-year basis, showing a trend of stabilizationand recovery in general, successfully stabilizing the macroeconomic market, especially in the second quarter, theeconomy withstood the pressure and achieved positive growth. On May 31, 2022, the State Council issued theNotice of the State Council on Printing and Distributing the Package Policies and Measures to Solidly Stabilizethe Economy, including the Package Policy Measures to Solidly Stabilize the Economy, a total of 33 measures insix aspects. The introduction of package policies to stabilize the economy one after another not only increased thestrength of bailout guarantees but also further released the policy effect.
In the first half of 2022, the market structure has been adjusted, and the industry has entered a new round ofrestructuring. From January to May 2022, the pharmaceutical industry launched a number of industry supervisionand guiding policy documents. In May, the State Council issued the Key Tasks for Deepening the Reform of theMedical and Health System in 2022, which continued to deepen the linkage reform of medical care, medicalinsurance and medicine. The pharmaceutical industry has presented the following characteristics:
1. Normalization of volume purchases
In 2021, the country carried out three batches of centralized procurement of drugs, with an average price reductionof 52%; in mid-July 2022, the company has completed the seventh batch of national centralized procurement,involving 60 kinds of drugs, and the average price of the drugs to be selected is reduced by 48%, and it isexpected to reduce drug expenditure by 18.5 billion yuan per year. In the second half of the year, it is expectedthat the seventh batch of volume purchases will have a certain impact on the company's revenue and gross profit.
2. The terminal market size is recovering
Affected by the pandemic and policies, the terminal market size has not recovered to the level before thepandemic (2019). The data showed that by the end of 2021, the sales volume of medicines in three major terminalmarkets (Menet), the sales volume of PDB sample hospitals, and the sales volume of the IQVIA hundred-bedhospital had not yet recovered to the level of 2019.
(ii) Fight against the pandemic and ensure the development2022 is the most difficult year since the pandemic. Facing the overall pressure of pandemic prevention and controland economic development across the country, Sinopharm Accord takes the "14th Five-Year Plan" strategy as thegoal, with inspection and reform as the starting point, its 40,000 employees focus on gathering strength, facedifficulties, greatly show the responsibility of a central enterprise in pandemic prevention and control, andpractice the work ideas of "stabilizing growth, adjusting structure, promoting innovation, strengtheningtechnology, and preventing risks", overcome difficulties and ensure development.
Sinopharm Accord, as the designated reserve unit for medicines and devices of the central and local governments,resolutely implements the relevant deployment requirements of the Party Central Committee, SASAC,Sinopharm, and Sinopharm Holding, adheres to fighting against the pandemic while guaranteeing the supply,guarantees the medications of the masses, exerts perseverance and responsibility, and fights on multiple fronts,coordinates across the board, takes the initiative to attack, sticks to responsibilities, and goes all out to completevarious anti-pandemic tasks.
(iii) Distribution focuses on one body and two wings to increase share, promote transformation, and strengthencompetitive advantages
1. Center on integrated management and control, focus on operational quality improvementComprehensively carry out integrated empowerment, including:
Integrated policy guidelines: Carry out preliminary policy and variety guidance for various tasks such as thewhole drug network transfer channel and the provincial centralized procurement plan, and promote thesubsidiaries to respond to market changes. Integrated linkage: Subsidiaries carry out supplier activities and specialinvestment attraction meetings. Device integration: Promote the integration of devices in Guangzhou, Foshan andShenzhen, hold a series of conferences on device suppliers and brands around product development, improve themanagement requirements for direct distribution business, refine the common problems of SPD projects and forma landing plan, and organize seminars on remote acceptance of device consignment business. Integration ofdecoction pieces: Tender for decoction pieces in hospitals of various sizes, jointly develop the market inGuangdong and Guangxi, and promote the introduction of 66 varieties of traditional Chinese medicine into thecatalogue of integrated wholesale and retail. Industry and financial management middle office: Complete thelaunch of 30 enterprises in Guangzhou and Shenzhen, run through all links of the supply chain via the receivablesand payables, integrate upstream and downstream information data, and realize the integration of industry andfinancial data.
2. Traditional business
(1) Break through varieties and increase gross profit
Traditional Chinese Medicine decoction pieces business: Expand key markets, focus on developing Chinesetraditional Chinese medicine series varieties and Zhongzhi Pobi decoction pieces, and achieve cooperation in 18varieties with Guoda Drugstore. Create device features: Expand high-margin device projects and develop antigenreagents. Expand medical beauty varieties: Sign cooperation with MERZ, one of the three major global medicalbeauty brand suppliers, and introduce characteristic suppliers such as Haijieshi, Kadulan, and crescel.
(2) Actively seize the policy, centralized procurement, and platform opportunitiesProvincial centralized procurement: 44 generic names are selected, and three quotas of exclusive distribution. Thesixth batch of national procurement: 91 product specifications are selected, and the distribution rate is 100%.quanyaowang platform switching: point distribution of 869 product specifications.
(3) Accelerate the cooperation between hospitals and manufacturers, and deepen the networkIt has won the distribution rights of some hospitals, as well as the centralized procurement and distribution rightsof Ozempic and Insulin. At the same time, it has successfully cooperated with manufacturers such as Janssen andHessen.
3. Retail direct sales
Promote management improvement: Build an assessment system for commercial sales centers and strengthencredit management of e-commerce customers.
Chaining of member stores: As of the end of June, there were 1,267 member stores in total, with an online rate of96% and a year-on-year increase of 76% in sales. Continue to give full play to the advantages of e-commerceB2B, the online rate is 91%, a year-on-year increase of 5%. Carry out refined management in terms of commodityinventory, promotion, variety planning, etc. through the analysis and review of the products on sale; improveonline rate through category promotion and other methods.
4. Retail diagnosis and treatment
The company continues to promote the network layout, it has 133 pharmacies in Guangdong and Guangxi, and thenumber of stores increased by 13 in the first half of the year. It actively promotes the "dual channel" project ofmedical insurance, and has obtained a total of 46 "dual channel" qualified stores in Guangdong and Guangxi,covering 25 cities; makes layout for prescription circulation projects, there are 46 designated pharmacies, and 5new designated pharmacies; promotes online marketing, of which the micro mall increases online varieties,driving the unit price of customers to increase by 33% on a year-on-year basis; Xiaoyao Assistant helps retainhigh-value customers and increase the repurchase rate.
5. Build the core competitiveness of innovative business
Actively promote the pilot program of the unique identification traceability platform for medical devices in
Shenzhen;Explore the expansion and implementation of SPD solutions in orthopedic smart warehouses andmaster data platforms; Third-party logistics: In the first half of 2022, the company developed 12 new customersand 3 disease control businesses; Launch a pilot B2C business for retail pharmacies. As of June, 373 orders weredelivered;From January to June 2022, the innovative business cumulatively achieved actual performance of 1.36billion yuan, with a year-on-year increase of 60%.
(iv) Guoda Drugstore focuses on strategy, consolidates existing business scale, and explores innovative businessdevelopment
By the end of June, there were 9,137 stores nationwide, including 7,581 directly-operated stores (including 757stores near the hospitals), and 1,556 franchised stores.
1. Give full play to the functions of the headquarters, focus on key points, manage overall planning, pay attentionto implementation, and coordinate the solutions to the pandemic.
(1) Organizational guarantee:
Formulate the Pandemic Prevention and Control Work Plan and Emergency Response Plan, and activelyimplement the three-level prevention and control system of "headquarters, regional companies, and stores".
(2) Employee security:
In response to the government's requirement that pharmacies open as many as possible, more than 200 stores inShanghai remained open during the pandemic period, and the store staff overcame difficulties and stuck to theirposts.
(3) Business response:
Logistics: Actively ensure the arrival of goods from suppliers, and the trunk lines of 35 warehouses throughout thecountry guarantee the distribution of materials during the pandemic, and assist in cross-regional coordinateddistribution.
Procurement: Introduce epidemic prevention materials, increase the procurement and the variety of medicines,disinfectants and epidemic prevention supplies, etc., so as to meet the pandemic prevention needs of thegovernment, enterprises and citizens.
Innovation: Launch the "drug help registration platform" and the "cloud pharmacy" service, providing more than2,200 varieties to residents in quarantine at home.
Quality: Strictly control the quality, strengthen the qualification control of the suppliers of epidemic prevention
materials, and strictly implement the local supervision requirements.
2. Improvement of profitability
From February to June 2022, due to the impact of the pandemic, Guoda Drugstore temporarily closed 2,193pharmacies nationwide due to the pandemic prevention. However, Guoda Drugstore has overcame manydifficulties and continued to carry out profitability improvement projects.
(1) Category improvement
Carry out strategies such as cooperating with key manufacturers and creating pharmacy theme marketing activitiesto boost the sales of key categories and increased gross profit. By the end of June, the sales and gross profit ofmedical devices, Chinese herbal decoction pieces, and health food had achieved varying degrees of growth.
(2) Special gross profit project
Mainly focus on the promotion of TOP varieties and categories with high gross profit, the rational control ofdiscount rates, and the optimization of procurement costs. Affected by the pandemic, under the pressure of thedecline in the gross profit of the four products with high gross profit, the overall gross profit margin of direct salesand conventional products increased by 0.7%.
(3) Own brand
In the first half of 2022, the sales of own brands exceeded 330 million yuan, and the proportion increased from
2.1% to 3%. Continued to increase efforts to develop new products, and developed 34 new products in the firsthalf of the year, and strengthened the promotion of OEM products in the wholesale and retail integration projectof Sinopharm Holding.
3. Continuously promote innovative business around the model of "medical + medicine + insurance"The sales of innovative business (B2C+O2O+ commercial insurance) reached 1.22 billion yuan in the first half ofthe year, a year-on-year increase of nearly 40% .
(1) Internet hospital: In the first half of the year, it successfully completed the business connection with JialongInternet Hospital, and officially realized the prescription consultation service on the online and offline platforms inApril.
(2) Create a new e-commerce platform: Cooperate with Alibaba to carry out online cooperation, make full use ofAlibaba's basic capabilities and products, and build a global traffic platform. E-commerce business maintainsrapid growth, O2O network layout covers more than 7,000 stores nationwide, the sales has increased by 69% on ayear-on-year basis; B2C sales has increased by 17% on a year-on-year basis.
(3) Promote the diversified development of commercial insurance business: In addition to the traditionalcommercial insurance business, introduce new channels such as Fosun Yaoxingfu, Zhiling Health, Fosun DTPcommercial insurance business, Dashao Yiyao DTP commercial insurance, and Ali Haoyaobao chronic diseasebusiness, the commercial insurance business has increased by nearly 30% on a year-on-year basis.
4. Membership and chronic disease management
(1) Professional ability improvement
Guoda Drugstore has 6,411 professional licensed pharmacists. In the first half of the year, it organized more than108 full-staff training, including more than 24 professional chronic disease trainings.
(2) Special promotion of member management
After the project was launched, there have been significant improvements in membership development,membership repurchase, and daily membership management. The number of new valid cards has increased by550,000, and the membership conversion rate has increased from 13.1% to 17.8%, a year-on-year increase of
4.7%; member transactions increased by 3.8% on a year-on-year basis; membership sales accounted for 75.2%, ayear-on-year increase of 4.7%.
(3) Digital management platform
The functions of the Yiyouhui platform have been improved, and the stability of the membership system formember statistical reports and detailed reports has been increased; the healthy community platform has developeda number of new functions for employee assistants to strengthen the in-depth integration of the long-term welfaresystem and the healthy community; 131 new projects have been added, covering diseases the healthy communitiescover.
Y-o-y changes of main financial data
In RMB
Item | Current period | Same period of last year | Y-o-y increase/decrease | Reasons for changes |
Operating revenue | 36,128,910,049.98 | 33,163,091,887.39 | 8.94% | No major changes |
Operating costs | 31,939,019,815.60 | 29,216,837,201.07 | 9.32% | No major changes |
Selling expenses | 2,486,484,440.79 | 2,307,485,529.77 | 7.76% | No major changes |
Administration expenses | 509,456,947.82 | 492,536,936.71 | 3.44% | No major changes |
Finance costs | 111,202,147.99 | 107,243,003.15 | 3.69% | No major changes |
Income tax expenses | 239,786,355.07 | 238,426,259.04 | 0.57% | No major changes |
Net cash flows from | 1,041,664,059.17 | 1,229,373,283.57 | -15.27% | No major changes |
operating activities | ||||
Net cash flows from investing activities | -115,517,028.39 | -291,260,821.37 | 60.34% | Increase 60.34% y-o-y, mainly because in the same period of last year, the amount of subsidiary acquisition was paid by subsidiary Guoda Drugstore while there was no such amount occurred in current Period |
Net cash flows from financing activities | -379,713,873.41 | -806,011,505.39 | 52.89% | Increase 52.89% y-o-y, mainly because the factoring business recovery and repayment difference increased from a year earlier |
Net increase in cash and cash equivalent | 545,237,700.28 | 132,492,959.44 | 311.52% | Increase 311.52% y-o-y, mainly because the factoring business recovery and repayment difference increased from a year earlier |
Investment income | 48,938,159.28 | 156,587,066.32 | -68.75% | Decrease 68.75% y-o-y, mainly because performance from the associates declined in the Period, the investment earnings decreased correspondingly, and the factoring of non-recourse account receivable increased in the Period, than the corresponding recognized interest and handling fees growth on a y-o-y basis |
Credit impairment losses | -44,249,830.99 | -28,664,985.44 | 54.37% | Increase 54.37% y-o-y, mainly because sales expanded than the ending receivables increased compared with the same period of previous year; meanwhile, affected by the COVID-19, medical funding delayed and the tighter financial operation from hospital had a certain impact on the receivable collection, turnover days of receivable increased than the corresponding provision for bad debts increased |
Impairment losses | -6,498,659.33 | -416,915.26 | 1,458.75% | Increase 1,458.75% y-o-y, mainly due to the provision for decline in value of inventory increased on a y-o-y basis in the Period |
Non-operating income | 4,356,528.39 | 12,493,320.44 | -65.13% | Decrease 65.13% y-o-y, mainly due to the y-o-y declined in the underwriting payable not required to be paid |
Major changes on profit composition or profit resources in reporting period:
No major changes on profit composition or profit resources occurred in reporting period.
Constitution of operating revenue
In RMB
Item | Current period | Same period last year | Increase/decrease y-o-y(+,-) | ||
Content | Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | |
Total operating revenue | 36,128,910,049.98 | 100% | 33,163,091,887.39 | 100% | 8.94% |
According to industries | |||||
Pharmaceutical distribution | 25,227,919,794.98 | 69.83% | 23,157,094,599.17 | 69.83% | 8.94% |
Retail pharmacy | 10,677,550,882.20 | 29.55% | 9,853,255,644.48 | 29.71% | 8.37% |
Other | 223,439,372.80 | 0.62% | 152,741,643.74 | 0.46% | 46.29% |
According to products | |||||
Pharmaceuticals | 30,698,480,800.79 | 84.97% | 30,006,046,182.11 | 90.48% | 2.31% |
Medical devices and disposables | 4,480,376,992.11 | 12.40% | 2,210,930,715.28 | 6.67% | 102.65% |
Diagnostic reagents | 595,036,742.79 | 1.65% | 515,191,908.40 | 1.55% | 15.50% |
Medical equipment | 131,576,141.49 | 0.36% | 278,181,437.86 | 0.84% | -52.70% |
Other | 223,439,372.80 | 0.62% | 152,741,643.74 | 0.46% | 46.29% |
According to region | |||||
China | 36,128,910,049.98 | 100.00% | 33,163,091,887.39 | 100.00% | 8.94% |
Industries, products, or regions accounting for over 10% of the company’s operating revenue or operating profit
√Applicable □ Not applicable
In RMB
Item | Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue y-o-y | Increase/decrease of operating cost y-o-y | Increase/decrease of gross profit ratio y-o-y |
According to industries | ||||||
Pharmaceutical distribution | 25,227,919,794.98 | 23,756,573,733.61 | 5.83% | 8.94% | 9.17% | -0.20% |
Retail pharmacy | 10,677,550,882.20 | 8,035,630,171.27 | 24.74% | 8.37% | 9.24% | -0.61% |
According to products | ||||||
Pharmaceuticals | 30,698,480,800.79 | 27,113,470,088.77 | 11.68% | 2.31% | 3.07% | -0.65% |
Medical devices and disposables | 4,480,376,992.11 | 3,998,991,122.04 | 10.74% | 102.65% | 94.36% | 3.80% |
According to region | ||||||
China | 36,128,910,049.98 | 31,939,019,815.60 | 11.60% | 8.94% | 9.32% | -0.30% |
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based onlatest one year’s scope of period-end
□Applicable √Not applicable
Reasons for the above 30% changes in relevant data on a y-o-y basis
√Applicable □Not applicable
1. Revenue from other business in this period increased by 46.29% compared with the same period of last year, mainly due to theincrease in revenue from drug warehousing and delivery service .
2. Revenue from medical devices and disposables increased 102.65% over that of last period, mainly due to the implementation ofdevelopment strategy, business structure adjustment and vigorous promotion of the innovative business development.
3. Revenue from medical equipment decreased by 52.70% compared to the same period of last year, mainly because undertake lessequipment bidding projects in the Period, than the sales declined from a year earlier.
IV. Analysis of the non-main business
□ Applicable √ Not applicable
V.Analysis of assets and liabilities
1. Major changes of assets composition
In RMB
Item | End of current period | End of last year | Ratio changes | Notes of major changes | ||
Amount | Ratio in total assets | Amount | Ratio in total assets | |||
Cash and bank balances | 5,573,558,436.74 | 12.12% | 5,126,159,080.94 | 11.98% | 0.14% | No major changes |
Accounts receivable | 19,066,131,973.48 | 41.48% | 15,964,603,345.91 | 37.31% | 4.17% | No major changes |
Contract assets | 28,169,112.57 | 0.06% | 29,061,159.52 | 0.07% | -0.01% | No major changes |
Inventories | 7,905,185,600.35 | 17.20% | 7,621,541,595.08 | 17.81% | -0.61% | No major changes |
Investment properties | 111,752,949.23 | 0.24% | 113,981,497.23 | 0.27% | -0.03% | No major changes |
Long-term | 2,471,624,418.24 | 5.38% | 2,459,832,546.74 | 5.75% | -0.37% | No major changes |
equity investment | ||||||
Fixed assets | 835,798,833.09 | 1.82% | 868,626,258.43 | 2.03% | -0.21% | No major changes |
Construction in process | 34,400,409.22 | 0.07% | 49,849,506.70 | 0.12% | -0.05% | No major changes |
Right-of-use assets | 2,628,310,313.99 | 5.72% | 2,575,240,340.00 | 6.02% | -0.30% | No major changes |
Short-term borrowings | 3,099,020,701.18 | 6.74% | 1,930,467,146.38 | 4.51% | 2.23% | No major changes |
Contract liabilities | 446,665,021.01 | 0.97% | 431,303,231.37 | 1.01% | -0.04% | No major changes |
Long-term borrowings | 62,633,794.44 | 0.14% | 71,637,173.89 | 0.17% | -0.03% | No major changes |
Lease liabilities | 1,391,474,612.88 | 3.03% | 1,375,427,877.28 | 3.21% | -0.18% | No major changes |
2.Main foreign assets
□Applicable √Not applicable
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
Item | Opening amount | Gain/loss of changes in fair value | Cumulative changes of fair value reckoned into equity | Impairment accrual in the Period | Amount purchased in the Period | Amount sold in the Period | Other changes | Ending amount |
Financial assets | ||||||||
Other equity instrument investment | 62,488,312.99 | 62,488,312.99 | ||||||
Other non-current financial assets | 135,974,908.51 | 135,974,908.51 | ||||||
Receivable financing | 1,027,226,940.21 | -395,125,578.06 | 632,101,362.15 | |||||
Total of above | 1,225,690,161.71 | -395,125,578.06 | 830,564,583.65 | |||||
Financial liability |
Content of other changes
1. In the receivable financing , other changes were caused by changes in bank acceptance bills held in the current period.
Whether the measurement attribute for main assets of the Company have changed significantly in the reporting period
□Yes √No
4. Assets right restriction till end of reporting period
Item | 2022-6-30 | 2021-12-31 | Note |
Cash and bank balances | 294,808,514.11 | 392,646,858.59 | (1) |
Note receivable that have been endorsed and are outstanding at the balance sheet date | 11,080,505.71 | 31,886,681.19 | (2) |
Total | 305,889,019.82 | 424,533,539.78 |
(1) on 30 June 2022, the Company has monetary funds with book value of 294,808,514.11 Yuan(on 31 December 2021:
392,646,858.59 Yuan), mainly includes the deposits of bank acceptance bill, special reserve funds and other restricted monetaryfunds (Note 7(1) of the Section X Financial Report )
(2) on 30 June 2022, the Company has note receivable with a book value of 11,080,505.71 Yuan (on 31 December 2021:
31,886,681.19 yuan note receivable), which has endorsed but not yet due. (Note 7(4) of the Section X Financial Report )
VI. Investment
1. Overall situation
√Applicable □ Not applicable
(1) During the reporting period, the new subsidiary established by the Company Sinopharm Holding ChongzuoCo., Ltd. (80%).
(2) During the reporting period, capital contributed for new enterprises in 2021 Guoda Drugstore (Heze) Co., Ltd.(51%) and Hunan Guoda Drugstore Medicine Co., ltd. (100%) are completed.
(3) During the reporting period, the Company completed the capital contribution to equity participation enterprisein 2021- Jialong (Hainan) Health Management Group(25%).
(4) During the reporting period, the Company completed the capital increase for the following enterprises:
Sinopharm Holding (Jiangmen) Co., Ltd. (100%), Sinopharm Holding Foshan Co., Ltd. (100%), SinopharmHolding Shantou Co., Ltd. (100%), Sinopharm Holding Zhaoqing Co., Ltd. (100%), Sinopharm HoldingGuangdong Logistics Co., Ltd. (100%), Sinopharm Holding Dongguan Co., Ltd. (100%), Sinopharm HoldingHuizhou Co., Ltd. (100%), Sinopharm Holding Zhongshan Co., Ltd. (100%), Sinopharm Holding Zhuhai Co., Ltd.
(100%), Foshan Nanhai New Special Pharmacy Co., Ltd. (100%), Foshan Nanhai Medicine Co., Ltd. (100%),Sinopharm Holding Guangdong Dongfang Nes Special Drugs Co., Ltd. (100%), Guangdong South MedicineForeign Trade Co., Ltd (100%) and Sinopharm Accord (Guangzhou) Medicine Co., Ltd. (70%), after capitalincreased, the shareholding remains unchanged.For specific investment, please refer to note (8) and (9) of the Section X. Financial Report.
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
5. Application of raised proceeds
□ Applicable √ Not applicable
The Company had no application of raised proceeds in the reporting period.VII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
There are no major assets sell in the period
2. Sales of major equity
□ Applicable √ Not applicable
VIII. Analysis of main holding Company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company name | Type | Main business | Register capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
Sinopharm Holding Guangzhou Co., Ltd. | Subsidiary | "Sales of drugs, medical apparatus and instruments, cargo transport, storage, loading and unloading, glass wares, cosmetics and daily merchandise; other business services, other professional consultation, various goods agency and for self-operation, import & export of technology, houses leasing" | 3,553,249,393.17 | 19,896,024,676.06 | 5,004,393,535.94 | 19,281,023,226.47 | 479,348,211.68 | 358,154,686.53 |
Guoda Drugstore (note 1) | Subsidiary | "Chinese traditional patent medicine, chemical preparations, antibiotics, bio-chemical medicine, biological medicine, diagnosis medicine, biological medicine with features of | 1,683,333,333.00 | 16,345,199,365.21 | 5,792,754,642.96 | 11,149,016,465.15 | 208,960,648.74 | 141,089,231.46 |
treatment and diagnosis, shaped packing food, chemical products, and various commodity and technique hold by self-support and agency as well as import & export of technology" | ||||||||
Sinopharm Holding Guangxi Co., Ltd. | Subsidiary | "Retail and distribution in respect of pharmaceutical products and medical apparatus and instruments, wholesale and retails of health products" | 521,407,965.79 | 5,846,522,596.64 | 1,320,931,744.29 | 4,093,443,029.71 | 107,100,367.86 | 92,461,344.32 |
Particular about subsidiaries obtained or disposed in report period
√Applicable □ Not applicable
Company | The method of obtaining and handling subsidiaries during the report period | The influence to the whole production and performance |
Sinopharm Holding Chongzuo Co., Ltd. | Newly established | Enlarge the distribution layout of medicine in local and has no major impact on the performance of the Company |
Notes of main holding Company and stock-jointly companiesNote 1: subsidiary Guoda Drugstore has a net profit decreased by 46.41% compared with the same period of last year, mainlybecause since 2022, the COVID-19 spreads locally, store’s customer traffic declined and the slow growth in sales; meanwhile, newstores that directly operated in 2021 and first half of 2022 have large investment in pre-phase, benefits are not yet apparent, the profitmargin shrinks.
IX. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
X. Risks and countermeasures
1. Risk of industry policy changes
The reform of the medical insurance, medical care and medicine continues to deepen. In recent years, relevantpolicies have been issued frequently, and the business environment of the pharmaceutical industry has undergonemajor changes. Affected by policies such as the accelerated expansion of centralized procurement with volume,the two-invoice system, and zero markup, the circulation link has been reduced, and drug prices have continued todecrease significantly. Decline, the company's profit margin is facing the risk of a further decrease. The constantlyupgrading supervision, the promulgation of the new Drug Administration Law, and the implementation of the"four strictest" put forward higher requirements for the compliant operation of pharmaceutical companies, and thepharmaceutical distribution industry is facing increasing uncertainty compliance risks. The company will respondto the impact of industry policies by transforming and upgrading its business structure, exploring new profitmodels, and improving its risk management and control capabilities.
2. Management risk of the continuous expansion of Guoda Drugstore’s marketing networkGuoda Drugstore's marketing network has maintained a steady growth trend in recent years by constantly openingnew stores and mergers and acquisitions. The expansion of the sales area and the increase in the number of storeshave put pressure on the store location, distribution, cash management, marketing and human resourcemanagement of Guoda Drugstore. The company will strengthen management and construction in the links ofcommodity procurement, logistics distribution, and sales, and formulate corresponding management measures foreach link to ensure unified standards and management quality for store expansion, and at the same time, it willstrengthen the integration and control of newly acquired stores.
3. Risk of intensified market competition
The competent department encourages leading pharmaceutical retail chains to become bigger and stronger. It ismentioned in the Guiding Opinions of the Ministry of Commerce on Promoting the High-quality Development ofthe Drug Circulation Industry During the "14th Five-Year Plan" Period that 5-10 specialized and diversified drugretail chain enterprises with a value of over 50 billion yuan shall be cultivated and formed by 2025. With thecontinuous introduction of corresponding policies by the state to encourage the integration of the pharmaceuticalretail industry, major pharmaceutical retail companies in the industry have been accelerating the pace of mergersand acquisitions, continuing to expand their marketing networks, improving the construction of logistics centers,innovating business and profit models, and constantly increasing their sales scale and comprehensive strength. Atthe same time, with the upgrading of consumption and the gradual opening of the market, strong distributioncompanies have also entered the domestic pharmaceutical distribution market through various means, and industry
competition has further intensified. In addition, cross-border competitors with Internet genes have quicklypenetrated into the company's traditional business areas, bringing new challenges to the company's business model.
The company will continue to integrate existing resources, deepen the strategic development initiatives withwholesale-retail integration as the core, and deeply give play to the synergies, directly face the terminal patientsand consumers through complementary varieties, capital collaboration, supply chain collaboration, andinternational promotion, at the same time, it will realize brand globalization by capital operation, and continuouslyincrease investment in scientific and technological innovation, and actively respond to cross-border competition.
4.The COVID-19 pandemic continues to affect.
Although the COVID-19 pandemic has been effectively brought under control in China, there are still sporadicoutbreaks. In case of an outbreak within the company's business area, the decline of outpatient visits andoutpatient drug consumption will still have a significant impact on the company's business within the current strictprevention and control measures.
5. The risk of goodwill impairments
On 30 June 2022, the book value of goodwill in consolidate financial statement listed as 2,775,645,585.32 Yuan,and distributed to the assets group of distribution business and retail business. In accordance with the AccountingStandards for Business Enterprises, the Company carried out annual impairment test for the goodwill. Impairmentof goodwill will released on the Note 5(31) and Note 7(28) listed under the Section X. Financial Report
Section IV Corporate GovernanceI. In the report period, the Company held annual shareholders’ general meeting andextraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
Session of meeting | Type | Ratio of investor participation | Date of meeting | Date of disclosure | Resolutions |
Annual General Meeting of 2021 | AGM | 62.60% | 2022-04-22 | 2022-04-22 | Juchao Website—(http://www.cninfo.com.cn) "Resolution Notice of AGM of 2021 No.: 2022-19 |
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Changes of directors, supervisors and senior executives
√Applicable □ Not applicable
Name | Title | Type | Date | Reasons |
Lin Min | Chairman | Be elected | 2022-04-11 | Mr. Lin Min was elected as the Chairman of 9th BOD of the Company by the Board, and Mr. Li ceased to be the deputy GM of the Company for work arrangement |
III. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
IV. Implementation of the Company’s stock incentive plan, employee stock ownership plan orother employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
Section V Environmental and Social Responsibility
1. Major environment protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
□ Yes √No
voluntary disclosure
Company /subsidiary | Name of Major Pollutants and Particular Pollutants | Emission Method | Quantity of Discharge Outlet | Distribution of Discharge Outlet | Emission Concentration | Executed Pollutant Discharge Standards | Total Emissions | Approved Total Emissions | Excessive Discharge |
Main Luck Pharmaceuticals | COD | Tube Discharge | 1 | Discharge Outlet of Waste Water | 10mg/L | Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB21908-2008 | 0.01 tons/year | 0.06 tons/year | N/A |
Main Luck Pharmaceuticals | Ammonia Nitrogen | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.5mg/L | Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB21908-2008 | 0.0005 tons/year | 0.01 tons/year | N/A |
Main Luck Pharmaceuticals | Phosphate | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.05mg/l | Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB21908-2008 | 0.00005 tons/year | 0.0005 tons/year | N/A |
Main Luck Pharmaceuticals | BOD | Tube Discharge | 1 | Discharge Outlet of Waste Water | 3mg/L | Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB21908-2008 | 0.003 tons/year | 0.015 tons/year | N/A |
Main Luck Pharmaceuticals | SS | Tube Discharge | 1 | Discharge Outlet of Waste Water | 2mg/L | Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and | 0.002 tons/year | 0.03 tons/year | N/A |
Formulation Category -GB21908-2008 | |||||||||
China National Zhijun | COD | Tube Discharge | 1 | Discharge Outlet of Waste Water | 19.667㎎/L | Table-2 in “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB 21908-2008” | 0.59081 tons/year | 5.3874 tons/year | N/A |
China National Zhijun | Ammonia Nitrogen | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.0734㎎/L | Table-2 in “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB 21908-2008” | 0.02228 tons/year | 0.8979 tons/year | N/A |
China National Zhijun | Total phosphorus | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.02㎎/L | Table-2 in “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category -GB 21908-2008” | 0.00049 tons/year | N/A | N/A |
Zhijun Pingshan | COD | Tube Discharge | 1 | Discharge Outlet of Waste Water | 16.67㎎/L | The stricter one between “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category (GB 21908-2008)” and “Environmental Quality Standards for Surface Water ” (GB3838-2002) for Class IV water (Ammonia Nitrogen up to Class V) | 0.491 tons/year | 2.628 tons/year | N/A |
Zhijun Pingshan | Ammonia Nitrogen | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.102㎎/L | The stricter one between “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category (GB 21908-2008)” and | 0.003 tons/year | 0.1752 tons/year | N/A |
“Environmental Quality Standards for Surface Water ” (GB3838-2002) for Class IV water (Ammonia Nitrogen up to Class V) | |||||||||
Zhijun Pingshan | Total phosphorus | Tube Discharge | 1 | Discharge Outlet of Waste Water | 0.038㎎/L | The stricter one between “Discharge Standards of Water Pollutants for Pharmaceutical industry Mixing/Compounding and Formulation Category (GB 21908-2008)” and “Environmental Quality Standards for Surface Water ” (GB3838-2002) for Class IV water (Ammonia Nitrogen up to Class V) | 0.0011 tons/year | 0.02628 tons/year | N/A |
Construction and operation of pollution prevention and control facilitiesAt present, the above-mentioned environmental pollution key monitoring units in which the Company has a shareholding haveestablished pollution prevention and control facilities for waste water. In the daily management process, enterprises establishmanagement procedures and operating instructions for environmental protection facilities, and ensure the normal and compliantoperation of anti-pollution facilities through system implementation and responsibility implementation. All enterprises arecontinuously investing funds and stepping up the transformation and improvement of pollution prevention and control facilities toensure the stable operation of pollution prevention facilities and improve the disposal capacity of environmental protection facilities.
Environmental impact assessment of construction projects and other environmental protection administrative licensesAt present, the projects of all key monitoring units have carried out environmental impact assessments and obtained approvals. Theprojects to be built also carry out the relevant administrative review procedures according to the “three simultaneous” requirementsof the environmental protection facilities of the construction project.
Emergency plan for environmental emergenciesAt present, the above-mentioned environmental pollution key monitoring units in which the Company has a shareholding haveformulated the Emergency Plan for Environmental Emergencies and reported them according to the regulatory requirements of thelocal regulatory authorities. According to the management requirements of the emergency plan, the key units regularly carry outemergency plan drills to further provide the enterprises’ emergency response capability.
Environmental self-monitoring schemeAt present, the above-mentioned environmental pollution key monitoring units in which the Company has a shareholding haveestablished environmental self-detection scheme and plan, and implemented self-inspection, third-party detection and othermonitoring methods according to the government requirements. Relevant monitoring data and reports have been archived and saved.
Administrative penalties due to the environmental issues during the reporting periodN/A
Other environmental information that should be disclosedThe above two companies are joint stock companies of the Company. The Company and its holding subsidiaries are not listed as keypollutant discharge units announced by the environmental protection department.
Relevant information on environment protectionN/A
II. Social responsibilityThe Company has not yet carried out the poverty alleviation and rural revitalization works
Section VI. Important EventsI. Undertakings that the actual controller, shareholders, related party, buyers and theCompany have fulfilled during the reporting period and have not yet fulfilled by the end ofreporting period
□ Applicable √ Not applicable
No undertakings that the actual controller, shareholders, related party, buyers and the Company have fulfilled during the reportingperiod and have not yet fulfilled by the end of the periodII. Non-operational fund occupation from controlling shareholders and its related party
√Applicable □ Not applicable
In 10 thousand yuan
Shareholder or related party | Type of association | Occupation time | Cause of occurrence | Opening amount | New amount occupied during the Period | Total amount pay back in the Period | Ending amount | Balance as of the disclosure date of the semi-annual report | Expected repayment method | Expected amount repaid | Expected repayment time (month) |
China National Zhijun (Suzhou) Pharmaceutical Co., Ltd. | Other | January 2018 - present | Entrusted loans | 4,633.42 | 4,633.42 | 4,633.42 | Other | ||||
Total | 4,633.42 | 4,633.42 | 4,633.42 | -- | -- | ||||||
Proportion of total ending value to the latest audited net assets | 0.31% | ||||||||||
Relevant decision-making procedures | The 29th session of 7th BOD deliberated and approved the “Proposal on Continuing to Provided Entrusted Loans to China National Zhijun (Suzhou) Pharmaceutical Co., Ltd.” on January 26, 2018 |
Cause of new non-operational fund occupation by controlling shareholders and its related parties in current period, responsible person and explanation on proposed measures by the Board | Not applicable |
Cause of failure to repaid the non-operation occupied funds, accountability and explanation on proposed measures by the Board | The amount of China National Zhijun (Suzhou) Pharmaceutical Co., Ltd is the overdue collection of entrusted loans. On May 11, 2021, China National Zhijun (Suzhou) Pharmaceutical Co., Ltd is ruled bankruptcy by the Court, and the local government was appointed as the bankruptcy administrator. At present the case is in the stage of declaration of creditor’s rights, the Company have accrual the bad debt provision in total for the entrusted loans out of principle of prudence. |
III. External guarantee out of the regulations
□ Applicable √ Not applicable
No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPAWhether the financial report of semi-annual report has been audited
□Yes √No
The semi-annual report of the Company is unaudited.V. Explanation from Board of Directors and Supervisory Committee for “Non-standard auditreport” that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the BOD on the previous year’s “non-standard audit report”
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization occurred during the reporting period.
VIII. LitigationMajor litigation and arbitration
□ Applicable √ Not applicable
No major litigation and arbitration occurred in the Period.
Other litigation
√ Applicable □Not applicable
As of June 30, 2022, there were 42 economic contract disputes with routine operation concerned and a total of 95.6918 million yuaninvolved; 2 cases of private lending disputes with 129.2364 million yuan involved; 6 disputes in intellectual property cases with
15.335 million yuan involved; 9 labor disputes with 1.6209 million yuan; 3 property rights disputes with 1.3421 million yuaninvolved; 2 personal injury dispute with 516800 yuan involved; 1 criminal case with 11.5634 million yuan involved and 1administrative review with 1.2237 million yuan involved.
Totaling 66 cases in the above cases, involving a total of 256.5301 million yuan without accrual liability resulted, and the cases willnot have any impact on the normal operation of the Company.IX. Penalty and rectification
□ Applicable √ Not applicable
X. Integrity of the company and its controlling shareholders and actual controllers
□ Applicable √ Not applicable
XI. Major related party transaction
1. Day-to-day related party transaction
□ Applicable √ Not applicable
There were no major day-to-day related party transactions during the reporting period
2. Related party transactions of assets acquisition and sold
□ Applicable √ Not applicable
No related party transactions of assets acquisition and sold occurred during the reporting period
3. Related party transactions of mutual investment outside
□ Applicable √ Not applicable
No related party transactions of mutual investment outside occurred during the reporting period.
4. Contact of related party credit and debt
□ Applicable √ Not applicable
The Company had no contact of related party credit and debt in the reporting period.
5. Contact with the related finance companies
√ Applicable □ Not applicable
Deposit business
Related party | Relationship | Maximum daily deposit limit (in 10 thousand yuan) | Deposit interest rate range | Opening balance (in 10 thousand yuan) | Amount for the Period | Ending Balance (10 thousand yuan) | |
Total deposit amount for the Period (10 thousand yuan) | The total amount withdrawn in the Period (10 thousand yuan) | ||||||
China National Finance Corporation Ltd | The same ultimate controlling shareholder | 30,000.00 | 0.35% (1.15% for the amount over 50000 by agreement ) | 197.44 | 144,161.28 | 144,158.52 | 200.20 |
Loan business
Related party | Relationship | Loan line (10 thousand yuan) | Loan interest rate range | Opening Balance (10 thousand yuan) | Amount for the Period | Ending Balance (10 thousand yuan) | |
Total loan amount for the Period (10 thousand yuan) | Total repayment amount for the Period (10 thousand yuan) | ||||||
China National Finance Corporation Ltd | The same ultimate controlling shareholder | 120,000.00 | 3.2%-3.5% | 9,227.37 | 130,167.47 | 67,659.20 | 71,735.64 |
Credit extension or other financial business
Related party | Relationship | Type of business | Total amount ( 10 thousand yuan) | Actual amount ( 10 thousand yuan) |
China National Finance Corporation Ltd | The same ultimate controlling shareholder | Credit | 120,000.00 | 71,735.64 |
China National Finance Corporation Ltd | The same ultimate controlling shareholder | Bank acceptance bill discount | 24,987.19 | 16,127.59 |
China National Finance Corporation Ltd | The same ultimate controlling shareholder | Entrusted loan | 3,160.00 | 3,160.00 |
6. Transactions between the finance company controlled by the Company and related parties
□ Applicable √ Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the Company andrelated parties
7. Other major related transactions
□ Applicable √ Not applicable
No other major related party transactions occurred in the period.XII. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
√Applicable □ Not applicable
On December 30, 2021, subsidiary of the Company Guoda Drugstore or the controlling subsidiary of GuodaDrugstore entered into the Equity Custody Agreement with Sinopharm Holding Hubei Co., Ltd. (hereinafterreferred to as Sinopharm Holding Hubei), Sinopharm Holding Huzhou Co., Ltd., Sinopharm Holding HuangshiCo., Ltd., Sinopharm Holding Jinhua Co., Ltd and Sinopharm Holding Lishui Co., Ltd. Respectively. Start of thecustody is from January 1, 2022 and the underlying equity are:
1. the 49% equity of Sinopharm Holding Hubei Guoda Drugstore Co., Ltd held by Sinopharm Holding Hubei Co.,Ltd.;
2. the 98% equity of Huzhou Muhanzhai Medicine Chain Co., Ltd held by Sinopharm Holding Huzhou Co., Ltd.;
3.the 100% equity of Sinopharm Holding Huangshi Guoda Drugstore Chain Co., Ltd held by Sinopharm HoldingHuangshi Co., Ltd.;
4.the 100% equity of Jinghua Sinopharm Pharmacy Chain Co., Ltd held by Sinopharm Holding Jinghua Co., Ltd.;
5.the 100% equity of Lishui Sinopharm Pharmacy Chain Co., Ltd held by Sinopharm Holding Lishui Co., Ltd.;
On February 14, 2022, subsidiary of the Company Guoda Drugstore entered into the Equity Custody Agreementwith Sinopharm Holding, 19.8477% equity of Sinopharm Health On-line Co., Ltd are custody by GuodaDrugstore.
On June 27, 2022, subsidiary of the Company Guoda Drugstore entered into the Equity Custody Agreement withSinopharm Holding Hubei, 100% equity of Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd are custodyby Guoda Drugstore. Found more in the 13. Explanation on other important events under the Section VIImportant Event
(2) Contract
□ Applicable √ Not applicable
No contract occurred during the reporting period
(3) Leasing
□ Applicable √ Not applicable
No leasing occurred during the reporting period
2. Material guarantees
√Applicable □Not applicable
In 10 thousand yuan
Particulars about the external guarantee of the Company and the subsidiaries (Barring the guarantee for subsidiaries) | ||||||||||
Name of the Company | Related Annou | Guarantee limit | Actual date of happenin | Actual guarantee limit | Guarantee type | Collateral (if | Counter-guarantee situation | Guarantee term | Implemented (Y/N) | Guarantee for related |
guaranteed | ncement disclosure date | g | applicable) | (if applicable) | party (Y/N) | |||||
Not applicable | ||||||||||
Guarantee between the Company and the subsidiaries | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter-guarantee situation (if applicable) | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
Sinopharm Holding Guangzhou Co., Ltd. | 2022-03-30 | 30,000 | 2022-05-20 | 30,000 | Joint liability assurance | 2022.05.20-2023.05.20 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2022-03-30 | 40,000 | 2022-05-10 | 40,000 | Joint liability assurance | 2022.05.10-2023.02.10 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2021-04-02 | 50,000 | 2021-12-27 | 20,771.97 | Joint liability assurance | 2021.12.27-2022.12.26 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2022-03-30 | 68,000 | 2022-05-20 | 44,366.45 | Joint liability assurance | 2022.05.20-2023.05.20 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-19 | 4,245.06 | Joint liability assurance | 2022.05.19-2023.05.18 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2021-04-02 | 20,000 | 2021-10-20 | 8,741.96 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Guangzhou Co., Ltd. | 2021-04-02 | 42,000 | 2021-09-23 | 16,139.06 | Joint liability assurance | 2021.09.23-2022.09.23 | N | Y |
Sinopharm Holding Guangdong Yuexing Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-20 | 2,598.31 | Joint liability assurance | 2022.05.20-2023.05.20 | N | Y | ||
Sinopharm Holding Guangdong Yuexing Co., Ltd. | 2021-04-02 | 12,000 | 2021-10-20 | 4,762.46 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Guangdong Yuexing Co., Ltd. | 2022-03-30 | 15,000 | 2022-05-06 | 14,041.21 | Joint liability assurance | 2022.05.06-2023.02.10 | N | Y | ||
Sinopharm Holding Guangdong Yuexing Co., Ltd. | 2021-04-02 | 3,000 | 2021-12-01 | Joint liability assurance | 2021.12.01-2022.11.30 | N | Y | |||
Sinopharm Holding Guangdong Hengxing Co., Ltd. | 2021-04-02 | 15,000 | 2021-10-22 | 6,202.96 | Joint liability assurance | 2021.10.22-2022.10.22 | N | Y | ||
Sinopharm Holding Guangdong Hengxing Co., Ltd. | 2021-04-02 | 3,000 | 2021-04-28 | 582.53 | Joint liability assurance | 2021.04.28-2022.04.27 | N | Y | ||
Sinopharm Holding Foshan Co., Ltd. | 2021-04-02 | 500 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Sinopharm Holding Foshan Co., Ltd. | 2022-03-30 | 1,000 | 2022-04-01 | 437.65 | Joint liability assurance | 2022.04.01-2023.04.01 | N | Y | ||
Sinopharm Holding Foshan | 2021-04-02 | 2,500 | 2022-03-21 | Joint liability assurance | 2022.03.21-2023.03. | N | Y |
Co., Ltd. | 20 | |||||||||
Sinopharm Holding Zhaoqing Co., Ltd. | 2021-04-02 | 2,500 | 2021-10-20 | 213.33 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Zhaoqing Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-31 | Joint liability assurance | 2022.05.31-2023.05.08 | N | Y | |||
Guangdong Nanfang Pharmaceutical Foreign Trade Co., Ltd. | 2021-04-02 | 19,500 | 2021-07-01 | 4,950.1 | Joint liability assurance | 2021.07.01-2022.06.30 | N | Y | ||
Guangdong Nanfang Pharmaceutical Foreign Trade Co., Ltd. | 2021-04-02 | 15,000 | 2021-10-13 | 10,379.21 | Joint liability assurance | 2021.10.13-2022.10.12 | N | Y | ||
Guangdong Nanfang Pharmaceutical Foreign Trade Co., Ltd. | 2021-04-02 | 10,000 | 2021-12-05 | 6,672.45 | Joint liability assurance | 2021.12.05-2022.11.18 | N | Y | ||
Foshan Nanhai Medicine Co., Ltd. | 2021-04-02 | 1,500 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Foshan Nanhai Medicine Co., Ltd. | 2022-03-30 | 9,000 | 2022-04-01 | 6,181.67 | Joint liability assurance | 2022.04.01-2023.04.01 | N | Y | ||
Foshan Nanhai Medicine Co., Ltd. | 2021-04-02 | 6,000 | 2022-03-21 | 1,218.72 | Joint liability assurance | 2022.03.21-2023.03.20 | N | Y | ||
Foshan | 2021- | 2,500 | 2021-09- | Joint | 2021.09. | N |
Nanhai Medicine Co., Ltd. | 04-02 | 10 | liability assurance | 10-2022.09.10 | ||||||
Foshan Nanhai Medicine Co., Ltd. | 2022-03-30 | 6,000 | 2022-05-26 | 3,832.35 | Joint liability assurance | 2022.05.26-2023.05.08 | N | Y | ||
Foshan Nanhai Uptodate & Special Medicines Co. Ltd. | 2021-04-02 | 2,000 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Foshan Nanhai Uptodate & Special Medicines Co. Ltd. | 2022-03-30 | 9,000 | 2022-04-01 | 7,989.55 | Joint liability assurance | 2022.04.01-2023.04.01 | N | Y | ||
Foshan Nanhai Uptodate & Special Medicines Co. Ltd. | 2021-04-02 | 6,000 | 2022-03-21 | Joint liability assurance | 2022.03.21-2023.03.20 | N | Y | |||
Foshan Nanhai Uptodate & Special Medicines Co. Ltd. | 2021-04-02 | 2,500 | 2021-09-10 | Joint liability assurance | 2021.09.10-2022.09.10 | N | ||||
Foshan Nanhai Uptodate & Special Medicines Co. Ltd. | 2022-03-30 | 6,000 | 2022-05-27 | 1,471.63 | Joint liability assurance | 2022.05.27-2023.05.08 | N | Y | ||
Sinopharm Holding (Jiangmen) Co., Ltd. | 2021-04-02 | 1,500 | 2021-10-20 | 937.33 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding | 2021-04-02 | 4,000 | 2021-05-31 | 1,045.59 | Joint liability | 2021.05.31- | N | Y |
(Jiangmen) Co., Ltd. | assurance | 2022.05.31 | ||||||||
Sinopharm Holding (Jiangmen) Co., Ltd. | 2022-03-30 | 7,000 | 2022-05-30 | 5,456.76 | Joint liability assurance | 2022.05.30-2023.05.08 | N | Y | ||
Sinopharm Holding (Jiangmen) Co., Ltd. | 2021-04-02 | 1,500 | 2022-01-10 | Joint liability assurance | 2022.01.10-2023.01.09 | N | Y | |||
Sinopharm Holding Meizhou Co., Ltd. | 2021-04-02 | 1,000 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Sinopharm Holding Meizhou Co., Ltd. | 2022-03-30 | 7,000 | 2022-05-31 | 3,097.87 | Joint liability assurance | 2022.05.31-2023.05.08 | N | Y | ||
Sinopharm Holding Zhongshan Co., Ltd. | 2021-04-02 | 1,000 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Sinopharm Holding Zhongshan Co., Ltd. | 2021-04-02 | 2,000 | 2021-08-17 | 1,000 | Joint liability assurance | 2021.08.17-2022.08.16 | N | Y | ||
Sinopharm Holding Zhongshan Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-23 | 1,000 | Joint liability assurance | 2022.05.23-2023.05.08 | N | Y | ||
Sinopharm Holding Shantou Co., Ltd. | 2021-04-02 | 500 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Sinopharm Holding Shantou Co., Ltd. | 2022-03-30 | 4,000 | 2022-05-31 | 2,893.14 | Joint liability assurance | 2022.05.31-2023.05.08 | N | Y | ||
Sinopharm Holding Huizhou Co., Ltd. | 2021-04-02 | 1,000 | 2021-10-20 | 25.63 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm | 2022- | 5,000 | 2022-05- | 2,078.36 | Joint | 2022.05. | N | Y |
Holding Huizhou Co., Ltd. | 03-30 | 26 | liability assurance | 26-2023.05.08 | ||||||
Sinopharm Holding Zhanjiang Co., Ltd. | 2021-04-02 | 2,000 | 2021-10-20 | 81.1 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Zhanjiang Co., Ltd. | 2021-04-02 | 5,000 | 2021-10-25 | 1,080.91 | Joint liability assurance | 2021.10.25-2022.10.24 | N | Y | ||
Sinopharm Holding Zhanjiang Co., Ltd. | 2021-04-02 | 8,000 | 2021-05-19 | 155.73 | Joint liability assurance | 2021.05.19-2022.05.19 | N | Y | ||
Sinopharm Holding Zhuhai Co., Ltd. | 2021-04-02 | 1,000 | 2021-10-20 | 1,000 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Zhuhai Co., Ltd. | 2021-04-02 | 3,000 | 2021-07-08 | 2,790 | Joint liability assurance | 2021.07.08-2022.07.07 | N | Y | ||
Sinopharm Holding Zhuhai Co., Ltd. | 2022-03-30 | 10,000 | 2022-05-26 | 4,720.43 | Joint liability assurance | 2022.05.26-2023.05.08 | N | Y | ||
Sinopharm Holding Dongguan Co., Ltd. | 2021-04-02 | 2,000 | 2021-10-20 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | |||
Sinopharm Holding Dongguan Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-31 | 4,458.81 | Joint liability assurance | 2022.05.31-2023.05.08 | N | Y | ||
Sinopharm Holding Dongguan Co., Ltd. | 2022-03-30 | 5,000 | 2022-06-02 | Joint liability assurance | 2022.06.02-2023.06.02 | N | Y | |||
Sinopharm Holding Guangdong | 2021-04-02 | 10,000 | 2021-05-10 | 5,382.85 | Joint liability assurance | 2021.05.10-2022.05.09 | N | Y |
Dongfang New Special Medicine Co., Ltd. | ||||||||||
Sinopharm Holding Guangdong Dongfang New Special Medicine Co., Ltd. | 2021-04-02 | 9,000 | 2021-10-13 | 6,526.06 | Joint liability assurance | 2021.10.13-2022.10.12 | N | Y | ||
Sinopharm Holding Guangdong Dongfang New Special Medicine Co., Ltd. | 2021-04-02 | 4,000 | 2021-10-20 | 1,337.29 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Guangdong Dongfang New Special Medicine Co., Ltd. | 2021-04-02 | 3,000 | 2021-07-13 | 1,110.41 | Joint liability assurance | 2021.07.13-2022.07.12 | N | Y | ||
Sinopharm Holding Guangdong Dongfang New Special Medicine Co., Ltd. | 2022-03-30 | 10,000 | 2022-06-01 | 2,351.27 | Joint liability assurance | 2022.06.01-2023.05.31 | N | Y | ||
Sinopharm Holding | 2021-04-02 | 2,500 | 2021-08-19 | 1,705.41 | Joint liability | 2021.08.19- | N | Y |
Guangdong Dongfang New Special Medicine Co., Ltd. | assurance | 2022.08.18 | ||||||||
Sinopharm Holding Guangdong Dongfang New Special Medicine Co., Ltd. | 2022-03-30 | 6,000 | 2022-05-26 | 3,983.56 | Joint liability assurance | 2022.05.26-2023.05.08 | N | Y | ||
Sinopharm Holding Shaoguan Co., Ltd. | 2021-04-02 | 1,000 | 2021-10-20 | 1,000 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.10.20-2022.10.19 | N | Y | |
Sinopharm Holding Shaoguan Co., Ltd. | 2022-03-30 | 4,000 | 2022-05-26 | 3,459.52 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.05.26-2023.05.08 | N | Y | |
Sinopharm | 2022- | 6,500 | 2022-05- | 3,017.33 | Joint | 2022.05. | N | Y |
Holding Maoming Co., Ltd. | 03-30 | 26 | liability assurance | 26-2023.05.08 | ||||||
Sinopharm Holding Maoming Co., Ltd. | 2021-04-02 | 500 | 2022-01-10 | Joint liability assurance | 2022.01.10-2023.01.09 | N | Y | |||
Sinopharm Holding Guangzhou Huadu Co., Ltd. | 2021-04-02 | 3,000 | 2021-10-22 | 2,768.98 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.10.22-2022.10.22 | N | Y | |
Sinopharm Holding Heyuan Co., Ltd. | 2022-03-30 | 7,000 | 2022-05-27 | 2,669 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.05.27-2023.05.08 | N | Y | |
Sinopharm Holding Foshan Medical Supplies Supply Chain Co., Ltd. | 2021-04-02 | 1,000 | 2022-03-21 | 201.21 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered | 2022.03.21-2023.03.20 | N | Y |
their equity pledges | ||||||||||
Sinopharm Accord (Yangjiang) Medicine Co., Ltd. | 2022-03-30 | 5,000 | 2022-05-27 | 1,938.18 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.05.27-2023.05.08 | N | Y | |
Sinopharm Accord (Yangjiang) Medicine Co., Ltd. | 2022-03-30 | 2,000 | 2022-05-07 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.05.07-2023.04.19 | N | Y | ||
Sinopharm Holding Guangxi Co., Ltd. | 2021-04-02 | 16,000 | 2021-10-20 | 9,066.19 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Guangxi Co., Ltd. | 2021-04-02 | 25,000 | 2021-06-28 | 6,285.46 | Joint liability assurance | 2021.06.28-2022.06.28 | N | Y | ||
Sinopharm Holding Guangxi Co., Ltd. | 2022-03-30 | 30,000 | 2022-05-25 | 19,988.67 | Joint liability assurance | 2022.05.25-2023.04.26 | N | Y | ||
Sinopharm Holding | 2021-04-02 | 10,000 | 2021-12-31 | 5,000 | Joint liability | 2021.12.31- | N | Y |
Guangxi Co., Ltd. | assurance | 2022.12.30 | ||||||||
Sinopharm Holding Guangxi Co., Ltd. | 2021-04-02 | 15,000 | 2021-08-27 | 9,462.89 | Joint liability assurance | 2021.08.27-2022.08.26 | N | Y | ||
Sinopharm Holding Guangxi Co., Ltd. | 2021-04-02 | 10,000 | 2021-09-03 | 1,546.91 | Joint liability assurance | 2021.09.03-2022.06.30 | N | Y | ||
Sinopharm Holding Guangxi Co., Ltd. | 2022-03-30 | 22,500 | 2022-05-20 | 12,743.79 | Joint liability assurance | 2022.05.20-2023.05.20 | N | Y | ||
Sinopharm Holding Liuzhou Co., Ltd. | 2021-04-02 | 5,000 | 2021-10-20 | 4,865.23 | Joint liability assurance | The minority shareholders have signed the counter-guarantee contract | 2021.10.20-2022.10.19 | N | Y | |
Sinopharm Holding Liuzhou Co., Ltd. | 2021-04-02 | 10,000 | 2021-07-21 | 34 | Joint liability assurance | The minority shareholders have signed the counter-guarantee contract | 2021.07.21-2022.07.20 | N | Y | |
Sinopharm Holding Liuzhou Co., Ltd. | 2021-04-02 | 5,000 | 2021-09-29 | 2,199.53 | Joint liability assurance | The minority shareholders have signed the counter-guarantee contract | 2021.09.29-2022.07.01 | N | Y | |
Sinopharm Holding | 2021-04-02 | 2,000 | 2022-03-25 | 2,000 | Joint liability | 2022.03.25- | N | Y |
Guigang Co., Ltd. | assurance | 2023.03.21 | ||||||||
Sinopharm Holding Guigang Co., Ltd. | 2022-03-30 | 3,000 | 2022-06-20 | 3,000 | Joint liability assurance | 2022.06.20-2023.06.19 | N | Y | ||
Sinopharm Holding Guilin Co., Ltd. | 2022-03-30 | 2,000 | 2022-06-20 | 1,000 | Joint liability assurance | 2022.06.20-2023.06.19 | N | Y | ||
Sinopharm Holding Wuzhou Co., Ltd. | 2022-03-30 | 3,000 | 2022-06-22 | 3,000 | Joint liability assurance | 2022.06.22-2023.06.22 | N | Y | ||
Sinopharm Holding Baise Co., Ltd. | 2022-03-30 | 3,000 | 2022-06-20 | 3,000 | Joint liability assurance | 2022.06.20-2023.06.19 | N | Y | ||
Sinopharm Holding Baise Co., Ltd. | 2022-03-30 | 2,000 | 2022-05-18 | 1,500 | Joint liability assurance | 2022.05.18-2023.05.18 | N | Y | ||
Sinopharm Holding Yulin Co., ltd. | 2022-03-30 | 3,000 | 2022-06-20 | 3,000 | Joint liability assurance | 2022.06.20-2023.06.19 | N | Y | ||
Sinopharm Holding Yulin Co., ltd. | 2022-03-30 | 2,000 | 2022-06-21 | 2,000 | Joint liability assurance | 2022.06.21-2023.06.21 | N | Y | ||
Sinopharm Holding Beihai Co., Ltd. | 2022-03-30 | 2,000 | 2022-03-30 | 1,200 | Joint liability assurance | 2022.03.30-2023.03.29 | N | Y | ||
Sinopharm Holding Beihai Co., Ltd. | 2022-03-30 | 2,500 | 2022-06-20 | 1,000 | Joint liability assurance | 2022.06.20-2023.06.19 | N | Y | ||
Sinopharm Holding Medical Supply Chain | 2021-04-02 | 706 | 2021-08-20 | Joint liability assurance | The minority shareholders have signed | 2021.08.20-2022.08.19 | N | Y |
Service (Guangxi) Co., ltd. | the equity pledge contract and registered their equity pledges | |||||||||
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. | 2021-04-02 | 4,000 | 2021-10-20 | 160 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.10.20-2022.10.19 | N | Y | |
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. | 2021-04-02 | 8,000 | 4,000 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.10.26-2022.10.11 | N | Y | ||
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. | 2021-04-02 | 4,000 | 2021-12-01 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and | 2021.12.01-2022.11.30 | N | Y |
registered their equity pledges | ||||||||||
Sinopharm Holding Shenzhen Jianmin Co., ltd. | 2021-04-02 | 3,000 | 2021-10-20 | 1,218.6 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Holding Shenzhen Jianmin Co., ltd. | 2021-04-02 | 2,000 | 2021-12-08 | 508.68 | Joint liability assurance | 2021.12.08-2022.11.18 | N | Y | ||
Sinopharm Holding Shenzhen Jianmin Co., ltd. | 2021-04-02 | 1,000 | 2021-12-01 | Joint liability assurance | 2021.12.01-2022.11.30 | N | Y | |||
Sinopharm Holding Shenzhen Medicinal Materials Co., Ltd. | 2021-04-02 | 500 | 2021-10-20 | 33.82 | Joint liability assurance | 2021.10.20-2022.10.19 | N | Y | ||
Sinopharm Accord Medical Devices (Shenzhen) Co., Ltd. | 2021-04-02 | 3,000 | 2021-10-20 | 1,047 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.10.20-2022.10.19 | N | Y | |
Sinopharm Accord Medical Devices (Shenzhen) | 2022-03-30 | 10,000 | 2022-06-14 | 7,719.74 | Joint liability assurance | The minority shareholders have signed | 2022.06.14-2023.05.08 | N | Y |
Co., Ltd. | the equity pledge contract and registered their equity pledges | |||||||||
Sinopharm Accord Medical Devices (Shenzhen) Co., Ltd. | 2021-04-02 | 1,000 | 2022-01-10 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.01.10-2023.01.09 | N | Y | ||
Total amount of approving guarantee for subsidiaries in report period (B1) | 393,000 | Total amount of actual occurred guarantee for subsidiaries in report period (B2) | 722,781.38 | |||||||
Total amount of approved guarantee for subsidiaries at the end of reporting period (B3) | 780,706 | Total balance of actual guarantee for subsidiaries at the end of reporting period (B4) | 411,651.87 | |||||||
Guarantees of subsidiaries to subsidiaries | ||||||||||
Name of the Company guaranteed | Related Announcement disclosure date | Guarantee limit | Actual date of happening | Actual guarantee limit | Guarantee type | Collateral (if applicable) | Counter-guarantee situation (if applicable) | Guarantee term | Implemented (Y/N) | Guarantee for related party (Y/N) |
Shanxi Guoda Wanmin Pharmacy | 2021-04-02 | 3,600 | 2021-07-15 | Joint liability assurance | The minority shareholders have | 2021.07.15-2022.07.15 | N | Y |
Chain Co., Ltd. | signed the equity pledge contract and registered their equity pledges | |||||||||
Shanxi Guoda Wanmin Pharmacy Chain Co., Ltd. | 2021-04-02 | 3,600 | 2021-12-22 | 3,600 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.22-2022.12.21 | N | Y | |
Shanxi Guoda Wanmin Pharmacy Chain Co., Ltd. | 2021-04-02 | 7,200 | 2021-11-02 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | ||
Ningxia Guoda Drugstore Chain Co., Ltd. | 2021-04-02 | 1,200 | 2021-12-24 | 657.6 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Ningxia Guoda Drugstore | 2021-04-02 | 2,400 | 2021-09-06 | 1,077.6 | Joint liability assurance | 2021.09.06-2022.09. | N | Y |
Chain Co., Ltd. | 06 | |||||||||
Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd. | 2021-04-02 | 1,800 | 2021-11-02 | 840.02 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd. | 2021-04-02 | 1,200 | 2021-12-24 | 535.85 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y | |
Hunan Guoda Minshengtang Pharmacy Chain Co., Ltd. | 2022-03-30 | 1,800 | 2022-06-15 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.15-2023.05.19 | N | Y | ||
Sinopharm Holding | 2021-04-02 | 1,200 | 2021-11-02 | 1,199.94 | Joint liability | 2021.11.02- | N | Y |
Guoda Drugstore Yangzhou Dadesheng Chain Co., Ltd. | assurance | 2022.11.01 | ||||||||
Sinopharm Holding Guoda Drugstore Yangzhou Dadesheng Chain Co., Ltd. | 2021-04-02 | 1,200 | 2021-12-24 | 626.83 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Sinopharm Holding Guoda Drugstore Xinjiang New Special Medicine Chain Co., Ltd. | 2021-04-02 | 3,000 | 2021-12-06 | 2,826.58 | Joint liability assurance | 2021.12.06-2022.12.06 | N | Y | ||
Sinopharm Holding Guoda Drugstore Xinjiang New Special Medicine Chain Co., Ltd. | 2022-03-30 | 12,000 | 2022-06-27 | 4,817.53 | Joint liability assurance | 2022.06.27-2023.05.19 | N | Y | ||
Sinopharm Holding Guoda Drugstore Shenyang Chain Co., Ltd. | 2022-03-30 | 18,000 | 2022-06-15 | 17,098.86 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and | 2022.06.15-2023.05.19 | N | Y |
registered their equity pledges | ||||||||||
Sinopharm Holding Guoda Drugstore Shenyang Chain Co., Ltd. | 2021-04-02 | 15,000 | 2021-11-02 | 2,763.7 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Sinopharm Holding Guoda Drugstore Shenyang Chain Co., Ltd. | 2021-04-02 | 6,000 | 2021-12-24 | 5,993.78 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y | |
Sinopharm Holding Guoda Drugstore Shenyang Chain Co., Ltd. | 2021-04-02 | 6,000 | 2021-12-16 | 3,833.84 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.16-2022.12.16 | N | Y |
Sinopharm Holding Guoda Drugstore Shanghai Chain Co., ltd. | 2021-04-02 | 2,400 | 2021-06-20 | 2,005.76 | Joint liability assurance | 2021.06.20-2022.06.20 | N | Y | ||
Sinopharm Holding Guoda Drugstore Shanghai Chain Co., ltd. | 2021-04-02 | 3,000 | 2021-07-09 | 1,635.78 | Joint liability assurance | 2021.07.09-2022.05.24 | N | Y | ||
Sinopharm Holding Guoda Drugstore Shanghai Chain Co., ltd. | 2021-04-02 | 2,400 | 2021-07-16 | Joint liability assurance | 2021.07.16—2022.07.16 | N | Y | |||
Sinopharm Holding Guoda Drugstore Shanxi Yiyuan Chain Co., ltd. | 2021-04-02 | 9,000 | 2021-11-02 | 4,920.27 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Sinopharm Holding Guoda Drugstore Shanxi Yiyuan Chain Co., ltd. | 2021-04-02 | 5,040 | 2021-05-06 | 1,215.64 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and | 2021.05.06-2022.05.05 | N | Y |
registered their equity pledges | ||||||||||
Sinopharm Holding Guoda Drugstore Shanxi Yiyuan Chain Co., ltd. | 2021-04-02 | 5,400 | 2021-12-06 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.06-2022.12.05 | N | Y | ||
Sinopharm Holding Guoda Drugstore Shanxi Yiyuan Chain Co., ltd. | 2021-04-02 | 3,000 | 2021-11-08 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.08-2022.11.07 | N | Y | ||
Sinopharm Holding Guoda Drugstore Inner Mongolia Co., Ltd. | 2021-04-02 | 4,800 | 2021-12-24 | 2,975.23 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y |
Sinopharm Holding Guoda Drugstore Inner Mongolia Co., Ltd. | 2021-04-02 | 6,000 | 2021-11-02 | 2,849.83 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Sinopharm Holding Guoda Drugstore Inner Mongolia Co., Ltd. | 2021-04-02 | 1,800 | 2021-11-04 | 770.55 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.04-2022.11.03 | N | Y | |
Sinopharm Holding Guoda Drugstore Inner Mongolia Co., Ltd. | 2021-04-02 | 1,800 | 2021-07-22 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.07.22-2022.07.22 | N | Y | ||
Sinopharm Holding Guoda Drugstore | 2022-03-30 | 1,800 | 2022-06-15 | 1,676.34 | Joint liability assurance | The minority shareholders have | 2022.06.15-2023.05.19 | N | Y |
Inner Mongolia Co., Ltd. | signed the equity pledge contract and registered their equity pledges | |||||||||
Sinopharm Holding Guoda Drugstore Inner Mongolia Co., Ltd. | 2021-04-02 | 6,600 | 2021-12-30 | 6,237.91 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.30-2022.12.29 | N | Y | |
Sinopharm Holding Guoda Drugstore Hulunbeier Co., Ltd. | 2022-03-30 | 1,200 | 2022-06-15 | 593.7 | Joint liability assurance | 2022.06.15-2023.05.19 | N | Y | ||
Sinopharm Holding Guoda Drugstore Hulunbeier Co., Ltd. | 2021-04-02 | 600 | 2021-11-02 | 546.7 | Joint liability assurance | 2021.11.02-2022.11.01 | N | Y | ||
Sinopharm Holding Guoda Drugstore Ulaanchab Co., Ltd. | 2022-03-30 | 600 | 2022-06-15 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and | 2022.06.15-2023.05.19 | N | Y |
registered their equity pledges | ||||||||||
Sinopharm Holding Guoda Drugstore Nanjing Chain Co., Ltd. | 2021-04-02 | 600 | 2021-12-24 | 311.86 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y | |
Sinopharm Holding Guoda (Jiangmen) Pharmaceutical Co., Ltd. | 2022-03-30 | 1,200 | 2022-06-10 | 676.98 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.10-2023.06.09 | N | Y | |
Sinopharm Holding Guoda (Jiangmen) Pharmaceutical Co., Ltd. | 2021-04-02 | 1,800 | 2021-11-02 | 792.25 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y |
Sinopharm Holding Guoda (Jiangmen) Pharmaceutical Co., Ltd. | 2021-04-02 | 1,800 | 2021-12-24 | 1,506.4 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y | |
Sinopharm Holding Guoda (Jiangmen) Pharmaceutical Co., Ltd. | 2020-04-22 | 3,000 | 2020-12-28 | 402.85 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2020.12.28-2021.12.27 | N | Y | |
Sinopharm Holding Guoda Drugstore Henan Chain Co., Ltd. | 2021-04-02 | 1,200 | 2021-12-24 | 67.48 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.12.24-2022.12.23 | N | Y | |
Sinopharm Holding Guoda Drugstore | 2022-03-30 | 2,400 | 2022-06-21 | 1,766.41 | Joint liability assurance | The minority shareholders have | 2022.06.21-2023.05.19 | N | Y |
Henan Chain Co., Ltd. | signed the equity pledge contract and registered their equity pledges | |||||||||
Sinopharm Holding Guoda Drugstore Guangxi Chain Co., Ltd. | 2021-04-02 | 1,800 | 2021-11-02 | 836.12 | Joint liability assurance | 2021.11.02-2022.11.01 | N | Y | ||
Sinopharm Holding Guoda Drugstore Guangxi Chain Co., Ltd. | 2021-04-02 | 600 | 2021-12-24 | 251.51 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Sinopharm Holding Guoda Drugstore Guangdong Co., Ltd. | 2021-04-02 | 6,000 | 2021-11-02 | 2,700.2 | Joint liability assurance | 2021.11.02-2022.11.01 | N | Y | ||
Sinopharm Holding Guoda Drugstore Guangdong Co., Ltd. | 2021-04-02 | 1,800 | 2021-12-24 | 1,484.49 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Sinopharm Holding Guoda Drugstore Guangdong Co., Ltd. | 2022-03-30 | 6,000 | 2022-05-20 | 1,462.06 | Joint liability assurance | 2022.05.20-2023.05.19 | N | Y | ||
Sinopharm Holding | 2021-04-02 | 1,800 | 2021-07-09 | 714.61 | Joint liability | 2021.07.09- | N | Y |
Guoda For Me Pharmacy Shanghai Chain Co., Ltd. | assurance | 2022.05.24 | ||||||||
China National Hebei Lerentang Medicine Chain Co., Ltd. | 2021-04-02 | 4,800 | 2021-11-02 | 2,326.23 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
China National Hebei Lerentang Medicine Chain Co., Ltd. | 2022-03-30 | 12,000 | 2022-06-24 | 6,448.2 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.24-2023.05.19 | N | Y | |
China National Hebei Lerentang Medicine Chain Co., Ltd. | 2021-04-02 | 3,000 | 2021-12-24 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their | 2021.12.24-2022.12.23 | N | Y |
equity pledges | ||||||||||
Fujian Guoda Drugstore Chain Co., Ltd. | 2021-04-02 | 1,200 | 2021-08-13 | 54.01 | Joint liability assurance | 2021.08.13-2022.08.12 | N | Y | ||
Fujian Guoda Drugstore Chain Co., Ltd. | 2021-04-02 | 1,800 | 2021-11-02 | 1,408.82 | Joint liability assurance | 2021.11.02-2022.11.01 | N | Y | ||
Beijing Jinxiang Drugstore Medicine Chain Co., Ltd | 2021-04-02 | 4,200 | 2021-12-24 | 1,998.22 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Beijing Jinxiang Drugstore Medicine Chain Co., Ltd | 2022-03-30 | 3,000 | 2022-06-15 | Joint liability assurance | 2022.06.15-2023.05.19 | N | Y | |||
Sinopharm Holding Guoda Drugstore (Shenzhen) Chain Co., Ltd. | 2021-04-02 | 1,800 | 2021-12-24 | 1,163.78 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Inner Mongolia Guoda Medicine Co., Ltd. | 2022-03-30 | 2,400 | 2022-06-15 | 1,540.12 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity | 2022.06.15-2023.05.19 | N | Y |
pledges | ||||||||||
Sinopharm Holding Guoda Drugstore Bayannur Co., Ltd. | 2022-03-30 | 1,200 | 2022-06-15 | 677.23 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.15-2023.05.19 | N | Y | |
Sinopharm Holding Guoda Shanxi Medicines Co., Ltd. | 2021-04-02 | 13,200 | 2021-07-12 | 7,674.67 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.07.12-2022.05.12 | N | Y | |
Sinopharm Holding Guoda Shanxi Medicines Co., Ltd. | 2021-04-02 | 6,000 | 2021-11-02 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | ||
Guoda Drugstore (pu'er) | 2022-03-30 | 2,400 | 2022-06-15 | 411.33 | Joint liability assurance | The minority sharehold | 2022.06.15-2023.05. | N | Y |
Songmao Co., Ltd. | ers have signed the equity pledge contract and registered their equity pledges | 19 | ||||||||
Liaoning Guoda Medicines Co., Ltd. | 2022-03-30 | 6,000 | 2022-06-24 | 2,476.37 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.24-2023.05.19 | N | Y | |
Liaoning Guoda Medicines Co., Ltd. | 2021-04-02 | 3,000 | 2021-11-02 | 1,500 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Fujian Guoda Medicines Co., Ltd. | 2021-04-02 | 600 | 2021-08-13 | 395.48 | Joint liability assurance | 2021.08.13-2022.08.12 | N | Y | ||
Guoda Yihe Drugstore | 2021-04-02 | 4,080 | 2021-09-10 | 3,958.96 | Joint liability assurance | The minority sharehold | 2021.09.10-2022.09. | N | Y |
Jilin Co., Ltd. | ers have signed the equity pledge contract and registered their equity pledges | 10 | ||||||||
Sinopharm Holding Tianhe Jilin Medicines Co., Ltd. | 2021-04-02 | 6,000 | 2021-11-09 | 4,358.94 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.09-2022.11.08 | N | Y | |
Sinopharm Holding Tianhe Jilin Medicines Co., Ltd. | 2021-04-02 | 3,000 | 2021-11-02 | 198 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2021.11.02-2022.11.01 | N | Y | |
Yushu Dinghe Pharmaceutical Technology Co., Ltd. | 2022-03-30 | 1,800 | 2022-06-16 | Joint liability assurance | The minority shareholders have signed the equity pledge | 2022.06.16-2023.05.19 | N | Y |
contract and registered their equity pledges | ||||||||||
Yanji Xianghe Medicines Co., Ltd. | 2022-03-30 | 1,800 | 2022-06-15 | Joint liability assurance | The minority shareholders have signed the equity pledge contract and registered their equity pledges | 2022.06.15-2023.05.19 | N | Y | ||
Liaoning Chengda Fangyuan Medicine Chain Co., Ltd. | 2022-03-30 | 9,000 | 2022-06-16 | 4,799.51 | Joint liability assurance | 2022.06.16-2023.05.19 | N | Y | ||
Liaoning Chengda Fangyuan Medicine Chain Co., Ltd. | 2021-04-02 | 6,000 | 2021-11-02 | 4,112.71 | Joint liability assurance | 2021.11.02-2022.11.01 | N | Y | ||
Liaoning Chengda Fangyuan Medicine Chain Co., Ltd. | 2021-04-02 | 6,000 | 2021-12-24 | 2,289.49 | Joint liability assurance | 2021.12.24-2022.12.23 | N | Y | ||
Liaoning Chengda Fangyuan Medicine Chain Co., Ltd. | 2022-03-30 | 18,000 | 2022-06-22 | 13,315.86 | Joint liability assurance | 2022.06.22-2023.06.21 | N | Y |
Total amount of approving guarantee for subsidiaries in report period (C1) | 102,600 | Total amount of actual occurred guarantee for subsidiaries in report period (C2) | 295,398.44 |
Total amount of approved guarantee for subsidiaries at the end of reporting period (C3) | 292,920 | Total balance of actual guarantee for subsidiaries at the end of reporting period (C4) | 145,380.98 |
Total amount of guarantee of the Company (total of three above mentioned guarantee) | |||
Total amount of approving guarantee in report period (A1+B1+C1) | 495,600 | Total amount of actual occurred guarantee in report period (A2+B2+C2) | 1,018,179.82 |
Total amount of approved guarantee at the end of report period (A3+B3+C3) | 1,073,626 | Total balance of actual guarantee at the end of report period (A4+B4+C4) | 557,032.85 |
The proportion of the total amount of actually guarantee in the net assets of the Company (that is A4+ B4+C4) | 36.31% | ||
Including: | |||
Amount of guarantee for shareholders, actual controller and its related parties (D) | 0.00 | ||
The debts guarantee amount provided for the guaranteed parties whose assets-liability ratio exceed 70% directly or indirectly (E) | 0.00 | ||
Proportion of total amount of guarantee in net assets of the Company exceed 50% (F) | 0.00 | ||
Total amount of the aforesaid three guarantees (D+E+F) | 0.00 | ||
Explanations on possibly bearing joint and several liquidating responsibilities for undue guarantees (if applicable) | Not applicable | ||
Explanations on external guarantee against regulated procedures (if applicable) | Not applicable |
Explanation on guarantee using the composite way
3. Trust financing
□ Applicable √ Not applicable
The Company had no trust financing in the reporting period.
4. Other significant contract
□ Applicable √ Not applicable
The company had no other significant contract in the reporting period.
XIII. Description of other important events
√ Applicable □Not applicable
On December 29, 2021, Guoda Drugstore, a controlling subsidiary of the Company, and Sinopharm Holding Hubei signed a Letter ofIntent for Cooperation on the acquisition of some social retail pharmacy assets of the Company's controlling shareholders. For details,please refer to the Sinopharm Accord: Announcement on Related Transactions of Controlling Shareholders' Fulfillment ofCommitments and Solving the Problem of Horizontal Competition of Social Retail Pharmacy Assets" (Announcement No.:2021-42)disclosed on www.cninfo.com.cn on December 31, 2021 .
On June 27, 2022, the seventh meeting of the ninth board of directors of the company reviewed and approved the Proposal onSinopharm Holding Guoda Drugstore Co., Ltd. Entrusting 100% Equity of Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd.and Changing the Way to Solve the Horizontal Competition of Social Retail Pharmacy Assets. The board of directors agreed thatGuoda Drugstore and Sinopharm Holding Hubei sign the Equity Escrow Agreement, changing the original method of solving thehorizontal competition of social retail pharmacy assets from acquisition to escrow, that is, from Guoda Drugstore purchasing 51%equity of Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. to escrowing 100% of its equity. On June 27, 2022, the two partiesformally signed the Equity Escrow Agreement. For details, please refer to the Sinopharm Accord: Progress Announcement on theControlling Shareholder's Fulfillment of Commitments and Solving the Problem of Horizontal Competition in Social RetailPharmacy Assets" (Announcement No.:2022-28) disclosed on www.cninfo.com.cn on June 29, 2022.
XIV. Important event of the subsidiaries
□ Applicable √ Not applicable
Section VII. Changes in Shares and Particulars about ShareholdersI. Changes in Share Capital
1. Changes in Share Capital
Unit: share
Before the Change | Increase/Decrease in the Change (+, -) | After the Change | |||||||
Amount | Proportion | New shares issued | Bonus shares | Public reserve transfer into share capital | Others | Subtotal | Amount | Proportion | |
I. Restricted shares | 5,508,883 | 1.29% | 5,508,883 | 1.29% | |||||
1. State-owned shares | |||||||||
2. State-owned legal person’s shares | 5,505,770 | 1.29% | 5,505,770 | 1.29% | |||||
3. Other domestic shares | 3,113 | 0.00% | 3,113 | 0.00% | |||||
Including: Domestic legal person’s shares | 0 | 0.00% | 0 | 0.00% | |||||
Domestic natural person’s shares | 3,113 | 0.00% | 3,113 | 0.00% | |||||
4. Foreign shares | |||||||||
Including: Foreign legal person’s shares | |||||||||
Foreign natural person’s shares | |||||||||
II. Unrestricted shares | 422,618,100 | 98.71% | 422,618,100 | 98.71% | |||||
1. RMB ordinary shares | 367,733,625 | 85.89% | 367,733,625 | 85.89% | |||||
2. Domestically listed foreign shares | 54,884,475 | 12.82% | 54,884,475 | 12.82% | |||||
3. Overseas listed foreign shares | |||||||||
4. Others | |||||||||
III. Total shares | 428,126,983 | 100.00% | 428,126,983 | 100.00% |
Reasons for share changed
□ Applicable √ Not applicable
Approval of share changed
□ Applicable √ Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□ Applicable √ Not applicable
Implementation progress of reducing holdings of shares buy-back by centralized bidding
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to commonshareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of lock-up stocks
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Amount of shareholders of the Company and particulars about shares holding
Unit: share
Total common stock shareholders in reporting period-end | 43,689 | Total preference shareholders with voting rights recovered at end of reporting period (if applicable) (see note 8) | 0 | |||||||
Particulars about common shares held above 5% by shareholders or top ten common shareholders | ||||||||||
Full name of Shareholders | Nature of shareholder | Proportion of shares held | Amount of common shares held at the end of reporting period | Changes in report period | Amount of restricted common shares held | Amount of common shares held without restriction | Information of shares pledged, tagged or frozen | |||
State of share | Amount | |||||||||
Sinopharm Group Co., Ltd. | State-owned Corporation | 56.06% | 239,999,991 | 5,505,770 | 234,494,221 |
FIRST SENTIER INVESTORS GLOBAL UMBRELLA FUND PLC - FSSA CHINA GROWTH FUND | Foreign Corporation | 2.52% | 10,802,495 | 10,802,495 | ||||
Hong Kong Securities Clearing Company Ltd | Foreign Corporation | 1.73% | 7,415,259 | 7,415,259 | ||||
China National Pharmaceutical Foreign Trade Corp. | State-owned Corporation | 1.24% | 5,323,043 | 5,323,043 | ||||
National Social Security Fund 413 Portfolio | Domestic non state-owned Corporation | 1.19% | 5,100,032 | 5,100,032 | ||||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | Foreign Corporation | 0.78% | 3,358,761 | 3,358,761 | ||||
Fidelity Investment Management (Hong Kong) Limited - Client’s fund | Domestic non state-owned Corporation | 0.54% | 2,301,737 | 2,301,737 | ||||
CPIC Fund -China Pacific Life Insurance Co., Ltd. - with-profit insurance- CPIC Fund China Pacific Life Equity Relative Income (Guaranteed Dividend) single assets | Domestic non state-owned Corporation | 0.47% | 1,999,227 | 1,999,227 |
management plan | ||||||||||
ICBC-Guolian Andesheng Small Selected Securities Investment Fund | Domestic non state-owned Corporation | 0.38% | 1,632,000 | 1,632,000 | ||||||
UBS AG LONDON BRANCH | Foreign Corporation | 0.30% | 1,271,030 | 1,271,030 | ||||||
Strategy investor or general legal person becoming the top 10 common shareholders by placing new shares (if applicable) (see note 3) | ||||||||||
Explanation on associated relationship among the aforesaid shareholders | Sinopharm Group Co., Ltd. and China National Pharmaceutical Foreign Trade Corporation have the same actual controller, which is China National Pharmaceutical Group Corporation. It is unknown that there exists no associated relationship or belongs to the consistent actionist among the other tradable shareholders regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Companies. | |||||||||
Description of the above shareholders in relation to delegate/entrusted voting rights and abstention from voting rights. | N/A | |||||||||
Special note on the repurchase account among the top 10 shareholders (if applicable) (see note 11) | ||||||||||
Particular about top ten shareholders with un-lock up common stocks held | ||||||||||
Shareholders’ name | Amount of common shares held without restriction at Period-end | Type of shares | ||||||||
Type | Amount | |||||||||
Sinopharm Group Co., Ltd. | 234,494,221 | RMB ordinary shares | 234,494,221 | |||||||
FIRST SENTIER INVESTORS GLOBAL UMBRELLA FUND PLC - FSSA CHINA GROWTH FUND | 10,802,495 | Domestically listed foreign shares | 10,802,495 | |||||||
Hong Kong Securities Clearing Company Ltd | 7,415,259 | RMB ordinary shares | 7,415,259 | |||||||
China National Pharmaceutical Foreign Trade Corp. | 5,323,043 | RMB ordinary shares | 5,323,043 | |||||||
National Social Security Fund 413 | 5,100,032 | RMB ordinary | 5,100,032 |
Portfolio | shares | ||
BBH BOS S/A FIDELITY FD - CHINA FOCUS FD | 3,358,761 | Domestically listed foreign shares | 3,358,761 |
Fidelity Investment Management (Hong Kong) Limited - Client’s fund | 2,301,737 | RMB ordinary shares | 2,301,737 |
CPIC Fund -China Pacific Life Insurance Co., Ltd. - with-profit insurance- CPIC Fund China Pacific Life Equity Relative Income (Guaranteed Dividend) single assets management plan | 1,999,227 | RMB ordinary shares | 1,999,227 |
ICBC-Guolian Andesheng Small Selected Securities Investment Fund | 1,632,000 | RMB ordinary shares | 1,632,000 |
UBS AG LONDON BRANCH | 1,271,030 | Domestically listed foreign shares | 1,271,030 |
Expiation on associated relationship or consistent actors within the top 10 un-lock up common shareholders and between top 10 un-lock up common shareholders and top 10 common shareholders | Sinopharm Group Co., Ltd. and China National Pharmaceutical Foreign Trade Corporation have the same actual controller, which is China National Pharmaceutical Group Corporation. It is unknown that there exists no associated relationship or belongs to the consistent actionist among the other tradable shareholders regulated by the Management Measure of Information Disclosure on Change of Shareholding for Listed Companies. | ||
Explanation on top 10 shareholders involving margin business (if applicable) (see note 4) |
Whether top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held have a buy-backagreement dealing in reporting period
□ Yes √ No
The top ten common stock shareholders or top ten common stock shareholders with un-lock up shares held of the Company have nobuy-back agreement dealing in reporting period.IV. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report2021.
V. Changes in controlling shareholders or actual controllersChange of controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company had no change of controlling shareholder during the reporting periodChange of actual controller during the reporting period
□ Applicable √ Not applicable
Section VIII. Preferred Stock
□ Applicable √ Not applicable
The Company had no preferred stock in the Period.
Section IX. Corporate Bonds
□ Applicable √ Not applicable
Section X. Financial ReportI. Audit reportWhether the semi annual report is audited
□ Yes √ No
The company's semi annual financial report has not been audited
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
CONSOLIDATED BALANCE SHEET
As at 30 June 2022
(Expressed in Renminbi Yuan)
ASSETS | Note V | 30 June 2022 | 31 December 2021 |
Current assets | |||
Cash and bank balances | 1 | 5,573,558,436.74 | 5,126,159,080.94 |
Notes receivable | 2 | 634,263,913.50 | 680,196,380.57 |
Accounts receivable | 3 | 19,066,131,973.48 | 15,964,603,345.91 |
Receivable financing | 4 | 632,101,362.15 | 1,027,226,940.21 |
Advances to suppliers | 5 | 384,131,138.51 | 520,930,545.31 |
Other receivables | 6 | 624,860,452.74 | 718,089,129.10 |
Inventories | 7 | 7,905,185,600.35 | 7,621,541,595.08 |
Contract Assets | 8 | 28,169,112.57 | 29,061,159.52 |
Other current assets | 9 | 119,092,606.71 | 160,607,355.66 |
Total current assets | 34,967,494,596.75 | 31,848,415,532.30 | |
Non-current assets | |||
Long-term equity investments | 10 | 2,471,624,418.24 | 2,459,832,546.74 |
Other equity instrument investment | 11 | 62,488,312.99 | 62,488,312.99 |
Other non-current financial assets | 12 | 135,974,908.51 | 135,974,908.51 |
Investment properties | 13 | 111,752,949.23 | 113,981,497.23 |
Fixed assets | 14 | 835,798,833.09 | 868,626,258.43 |
Construction in progress | 15 | 34,400,409.22 | 49,849,506.70 |
Right-of-use assets | 16 | 2,628,310,313.99 | 2,575,240,340.00 |
Intangible assets | 17 | 681,603,209.30 | 669,926,562.82 |
Goodwill | 18 | 2,775,645,585.32 | 2,775,645,585.32 |
Long-term prepaid expenses | 19 | 603,905,628.79 | 633,975,441.76 |
Deferred tax assets | 20 | 184,991,505.33 | 129,740,169.77 |
Other non-current assets | 21 | 474,990,153.81 | 459,985,769.24 |
Total non-current assets | 11,001,486,227.82 | 10,935,266,899.51 | |
Total assets | 45,968,980,824.57 | 42,783,682,431.81 |
The accompanying notes form an integral part of these financial statements
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY | Note V | 30 June 2022 | 31 December 2021 |
Current liabilities | |||
Short-term borrowings | 22 | 3,099,020,701.18 | 1,930,467,146.38 |
Notes payable | 23 | 6,390,557,494.64 | 7,660,216,823.68 |
Accounts payable | 24 | 11,329,463,911.07 | 9,057,718,968.14 |
Receipts in advance | 25 | 18,140,667.15 | 19,289,567.44 |
Contract liabilities | 26 | 446,665,021.01 | 431,303,231.37 |
Employee benefits payable | 27 | 240,990,407.92 | 340,197,125.33 |
Tax payable | 28 | 361,610,782.83 | 337,164,080.19 |
Other payables | 29 | 2,248,815,946.18 | 1,714,746,986.46 |
Non-current liabilities due within one year | 30 | 858,086,989.55 | 848,328,648.14 |
Other current liabilities | 31 | 35,657,330.08 | 39,585,469.65 |
Total current liabilities | 25,029,009,251.61 | 22,379,018,046.78 | |
Non-current liabilities | |||
Long-term borrowings | 32 | 62,633,794.44 | 71,637,173.89 |
Lease liabilities | 33 | 1,391,474,612.88 | 1,375,427,877.28 |
Long-term payables | 34 | 6,938,189.00 | 6,938,189.00 |
Long-term employee benefits payable | 35 | 1,156,000.00 | 1,202,000.00 |
Deferred income | 36 | 83,551,934.15 | 86,917,051.78 |
Deferred tax liabilities | 20 | 168,518,914.25 | 175,948,328.93 |
Other non-current liabilities | 37 | 695,542,286.70 | 664,381,065.65 |
Total non-current liabilities | 2,409,815,731.42 | 2,382,451,686.53 | |
Total liabilities | 27,438,824,983.03 | 24,761,469,733.31 |
The accompanying notes form an integral part of these financial statements
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY | Note V | 30 June 2022 | 31 December 2021 |
Equity | |||
Share capital | 38 | 428,126,983.00 | 428,126,983.00 |
Capital surplus | 39 | 4,371,823,310.21 | 4,371,802,107.43 |
Other comprehensive income | 40 | 21,870,425.19 | 21,874,198.36 |
Surplus reserve | 41 | 214,063,491.50 | 214,063,491.50 |
Retained earnings | 42 | 10,306,410,995.34 | 9,889,071,272.21 |
Total equity attributable to owners of the parent | 15,342,295,205.24 | 14,924,938,052.50 | |
Non-controlling interests | 3,187,860,636.30 | 3,097,274,646.00 | |
Total equity | 18,530,155,841.54 | 18,022,212,698.50 | |
Total liabilities and equity | 45,968,980,824.57 | 42,783,682,431.81 |
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 2022
(Expressed in Renminbi Yuan)
Note V | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
Operating revenue | 43 | 36,128,910,049.98 | 33,163,091,887.39 |
Less: Operating costs | 43 | 31,939,019,815.60 | 29,216,837,201.07 |
Taxes and surcharges | 44 | 95,897,105.33 | 75,989,854.58 |
Selling expenses | 45 | 2,486,484,440.79 | 2,307,485,529.77 |
Administrative expenses | 46 | 509,456,947.82 | 492,536,936.71 |
Finance costs | 47 | 111,202,147.99 | 107,243,003.15 |
Incling: Interest expense | 142,860,549.18 | 147,057,897.99 | |
Interest income | 34,626,066.94 | 38,758,729.78 | |
Add: Other incomes | 48 | 44,158,835.01 | 47,249,616.26 |
Investment income | 49 | 48,938,159.28 | 156,587,066.32 |
Incling: Investment income from associates | 98,868,662.09 | 157,696,397.81 | |
Income from the derecognition of financial assets measured at amortised cost | (49,930,502.81) | (7,039,046.60) | |
Credit impairment losses | 50 | (44,249,830.99) | (28,664,985.44) |
Impairment losses | 51 | (6,498,659.33) | (416,915.26) |
Gain on disposal of assets | 52 | 3,192,821.77 | (588,799.55) |
Operating profits | 1,032,390,918.19 | 1,137,165,344.44 | |
Add: Non-operating income | 53 | 4,356,528.39 | 12,493,320.44 |
Less: Non-operating expenses | 54 | 2,191,998.74 | 3,237,951.35 |
Total profit | 1,034,555,447.84 | 1,146,420,713.53 | |
Less: Income tax expenses | 55 | 239,786,355.07 | 238,426,259.04 |
Net profit | 794,769,092.77 | 907,994,454.49 | |
Net Profit from continuing operations | 794,769,092.77 | 907,994,454.49 | |
Net profit attributable to owners of the parent | 674,215,912.93 | 741,445,013.25 | |
Profit or loss of non-controlling interests | 120,553,179.84 | 166,549,441.24 |
CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
Note V | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
Other comprehensive income, net of tax | (3,773.17) | 64,854.90 | |
Other comprehensive income, net of tax, attributable to owners of the parent | (3,773.17) | 64,854.90 | |
Other comprehensive income that will be reclassified to profit or loss | (3,773.17) | 64,854.90 | |
Other comprehensive income using the equity method that will be reclassified to profit or loss | (3,773.17) | 64,854.90 | |
Total comprehensive income | 794,765,319.60 | 908,059,309.39 | |
Incl: Total comprehensive income attributable to owners of the parent | 674,212,139.76 | 741,509,868.15 | |
Total comprehensive income attributable to non-controlling interests | 120,553,179.84 | 166,549,441.24 | |
Earnings per share | |||
Basic earnings per share | 1.57 | 1.73 | |
Diluted earnings per share | 1.57 | 1.73 |
The accompanying notes form an integral part of these financial statements
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2022 | Attributable to owners of the parent | |||||||
Share capital | Capital surplus | Other comprehensive income | Surplus reserves | Retained earnings | Subtotal | Non-controlling interests | Total equity | |
I. Balance at end of prior year | 428,126,983.00 | 4,371,802,107.43 | 21,874,198.36 | 214,063,491.50 | 9,889,071,272.21 | 14,924,938,052.50 | 3,097,274,646.00 | 18,022,212,698.50 |
II. Balance at beginning of year | 428,126,983.00 | 4,371,802,107.43 | 21,874,198.36 | 214,063,491.50 | 9,889,071,272.21 | 14,924,938,052.50 | 3,097,274,646.00 | 18,022,212,698.50 |
III. Changes for the year | - | 21,202.78 | (3,773.17) | - | 417,339,723.13 | 417,357,152.74 | 90,585,990.30 | 507,943,143.04 |
(1) Total comprehensive income | - | - | (3,773.17) | - | 674,215,912.93 | 674,212,139.76 | 120,553,179.84 | 794,765,319.60 |
(2) Owners’ contributions and reduction in capital | - | 21,202.78 | - | - | - | 21,202.78 | 2,700,000.00 | 2,721,202.78 |
1. Capital contributions by owners | - | - | - | - | - | 2,700,000.00 | 2,700,000.00 | |
2. Others | - | 21,202.78 | - | - | - | 21,202.78 | - | 21,202.78 |
(3) Profit distribution | - | - | - | - | (256,876,189.80) | (256,876,189.80) | (32,667,189.54) | (289,543,379.34) |
1.Distribution to equity owners | - | - | - | - | (256,876,189.80) | (256,876,189.80) | (32,667,189.54) | (289,543,379.34) |
IV. Balance at end of year | 428,126,983.00 | 4,371,823,310.21 | 21,870,425.19 | 214,063,491.50 | 10,306,410,995.34 | 15,342,295,205.24 | 3,187,860,636.30 | 18,530,155,841.54 |
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 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2021 | Attributable to owners of the parent | |||||||
Share capital | Capital surplus | Other comprehensive income | Surplus reserves | Retained earnings | Subtotal | Non-controlling interests | Total equity | |
I. Balance at end of prior year | 428,126,983.00 | 4,372,504,053.72 | 38,483,017.72 | 214,063,491.50 | 8,895,145,106.39 | 13,948,322,652.33 | 2,940,304,667.19 | 16,888,627,319.52 |
II. Balance at beginning of year | 428,126,983.00 | 4,372,504,053.72 | 38,483,017.72 | 214,063,491.50 | 8,895,145,106.39 | 13,948,322,652.33 | 2,940,304,667.19 | 16,888,627,319.52 |
III. Changes for the year | - | (460,868.29) | 64,854.90 | - | 398,943,426.85 | 398,547,413.46 | 200,953,200.40 | 599,500,613.86 |
(1) Total comprehensive income | - | - | 64,854.90 | - | 741,445,013.25 | 741,509,868.15 | 166,549,441.24 | 908,059,309.39 |
(2) Owners’ contributions and reduction in capital | - | (460,868.29) | - | - | - | (460,868.29) | 58,773,146.38 | 58,312,278.09 |
1. Capital contributions by owners | - | - | - | - | 15,680,000.00 | 15,680,000.00 | ||
2. Others | - | (460,868.29) | - | - | - | (460,868.29) | 43,093,146.38 | 42,632,278.09 |
(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 year | 428,126,983.00 | 4,372,043,185.43 | 38,547,872.62 | 214,063,491.50 | 9,294,088,533.24 | 14,346,870,065.79 | 3,141,257,867.59 | 17,488,127,933.38 |
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 2022
(Expressed in Renminbi Yuan)
Note V | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
1.CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash received from sales of good and the rendering of services | 36,667,060,800.89 | 32,800,434,055.12 | |
Receipts of taxes and surcharges refunds | 7,086,718.77 | 9,380,253.27 | |
Other cash receipts relating to operating activities | 56 | 293,598,578.92 | 368,590,875.46 |
Total cash inflows from operating activities | 36,967,746,098.58 | 33,178,405,183.85 | |
Cash payments for goods and services | 32,450,267,035.88 | 28,541,885,459.35 | |
Cash payments to and on behalf of employees | 1,814,169,897.07 | 1,708,255,657.44 | |
Payments of all types of taxes and surcharges | 950,560,063.59 | 766,110,586.13 | |
Other cash payments relating to operating activities | 56 | 711,085,042.87 | 932,780,197.36 |
Total cash outflows from operating activities | 35,926,082,039.41 | 31,949,031,900.28 | |
Net cash flows from operating activities | 57 | 1,041,664,059.17 | 1,229,373,283.57 |
2.CASH FLOWS FROM INVESTING ACTIVITIES | |||
Cash receipts from returns of investments | - | 2,997,441.73 | |
Cash receipts from returns on investments | 70,380,000.00 | 22,643,935.31 | |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 427,817.93 | 537,887.38 | |
Other cash receipts relating to investing activities | 56 | - | 54,984.60 |
Total cash inflows from investing activities | 70,807,817.93 | 26,234,249.02 |
The accompanying notes form an integral part of these financial statements
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
Note V | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
2.CASH FLOWS FROM INVESTING ACTIVITIES (Continued) | |||
Cash payments to acquire fixed assets, intangible assets and other long-term assets | 145,135,483.28 | 145,820,319.98 | |
Cash payments for investments | 41,189,363.04 | 70,724,113.00 | |
Net cash payments for acquisition of subsidiaries and other business units | - | 100,950,637.41 | |
Total cash outflows from investing activities | 186,324,846.32 | 317,495,070.39 | |
Net cash flows from investing activities | (115,517,028.39) | (291,260,821.37) | |
3.CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash proceeds from investments by others | 2,700,000.00 | 15,680,000.00 | |
Incl: Cash receipts from capital contributions from non-controlling interests of subsidiaries | 2,700,000.00 | 15,680,000.00 | |
Cash receipts from borrowings | 1,241,724,044.08 | 915,684,894.52 | |
Other cash receipts relating to financing activities | 56 | 471,834,276.96 | 104,090,555.62 |
Total cash inflows from financing activities | 1,716,258,321.04 | 1,035,455,450.14 | |
Cash repayments for debts | 965,274,913.52 | 511,076,477.58 | |
Cash payments for distribution of dividends or profit and interest expenses | 420,470,285.22 | 492,345,229.08 | |
Incl: Dividends or profit paid to non-controlling shareholders of subsidiaries | 32,667,189.54 | 22,846,959.82 | |
Other cash payments relating to financing activities | 56 | 710,226,995.71 | 838,045,248.87 |
Total cash outflows from financing activities | 2,095,972,194.45 | 1,841,466,955.53 | |
Net cash flows from financing activities | (379,713,873.41) | (806,011,505.39) |
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 V | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,195,457.09) | 392,002.63 | |
5.NET INCREASE/ DECREASE IN CASH AND CASH EQUIVALENTS | 57 | 545,237,700.28 | 132,492,959.44 |
Add: Cash and cash equivalents at beginning of the year | 4,733,512,222.35 | 5,405,113,257.99 | |
6.CASH AND CASH EQUIVALENTS AT END OF YEAR | 57 | 5,278,749,922.63 | 5,537,606,217.43 |
The accompanying notes form an integral part of these financial statements
COMPANY BALANCE SHEET
As at 30 June 2022
(Expressed in Renminbi Yuan)
ASSETS | Note XIV | 30 June 2022 | 31 December 2021 |
Current assets | |||
Cash and bank balances | 3,662,982,819.92 | 3,098,512,437.04 | |
Notes receivable | 21,616,001.28 | 12,015,516.75 | |
Accounts receivable | 1 | 548,802,561.84 | 592,400,308.87 |
Receivables financing | 5,928,782.68 | - | |
Advances to suppliers | 4,017,222.47 | 11,762,344.40 | |
Other receivables | 2 | 4,612,252,981.71 | 5,003,805,208.01 |
Inventories | 190,502,982.26 | 226,490,178.26 | |
Contract Assets | 180,503.66 | 139,021.45 | |
Other current assets | 39,482.38 | 39,482.38 | |
Total current assets | 9,046,323,338.20 | 8,945,164,497.16 | |
Non-current assets | |||
Long-term equity investments | 3 | 8,058,344,778.15 | 8,044,896,142.86 |
Other non-current financial assets | 135,974,908.51 | 135,974,908.51 | |
Investment properties | 948,332.68 | 951,035.32 | |
Fixed assets | 13,407,637.52 | 12,824,750.51 | |
Right-of-use assets | 3,448,407.64 | 4,010,087.19 | |
Intangible assets | 5,247,419.44 | 5,682,864.94 | |
Long-term prepaid expenses | 5,593,368.23 | 6,438,007.85 | |
Deferred tax assets | 10,284,646.53 | 10,017,097.43 | |
Other non-current assets | 46,221,235.75 | 26,652,335.10 | |
Total non-current assets | 8,279,470,734.45 | 8,247,447,229.71 | |
Total assets | 17,325,794,072.65 | 17,192,611,726.87 |
The accompanying notes form an integral part of these financial statements
COMPANY BALANCE SHEET (Continued)
As at 30 June 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’ EQUITY | 30 June 2022 | 31 December 2021 | |
Current liabilities | |||
Short-term borrowings | 633,314,095.64 | 555,138,734.59 | |
Notes payable | 472,816,227.54 | 596,268,853.45 | |
Accounts payable | 467,416,626.20 | 480,059,192.74 | |
Contract liabilities | 5,491,416.33 | 3,231,968.16 | |
Employee benefits payable | 33,160,269.44 | 36,339,296.20 | |
Tax payables | 16,372,068.06 | 14,768,716.45 | |
Other payables | 3,902,656,317.48 | 3,832,642,249.25 | |
Non-current liabilities due within one year | 1,194,517.59 | 1,112,137.32 | |
Other current liabilities | 993,932.14 | 837,570.27 | |
Total current liabilities | 5,533,415,470.42 | 5,520,398,718.43 | |
Non-current liabilities | |||
Long-term borrowings | 31,633,794.44 | 31,637,173.89 | |
Lease liabilities | 2,715,432.43 | 3,343,830.66 | |
Long-term payables | 800,000.00 | 800,000.00 | |
Deferred income | 252,812.52 | 392,720.10 | |
Other non-current liabilities | 40,499,324.62 | 26,986,064.76 | |
Total non-current liabilities | 75,901,364.01 | 63,159,789.41 | |
Total liabilities | 5,609,316,834.43 | 5,583,558,507.84 |
The accompanying notes form an integral part of these financial statements
COMPANY BALANCE SHEET (Continued)
As at 30 June 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’ EQUITY | 30 June 2022 | 31 December 2021 | |
Shareholders’ equity | |||
Share capital | 428,126,983.00 | 428,126,983.00 | |
Capital surplus | 4,467,310,688.08 | 4,467,289,485.30 | |
Other comprehensive income | (90,613.57) | (86,840.40) | |
Surplus reserve | 214,063,491.50 | 214,063,491.50 | |
Retained earnings | 6,607,066,689.21 | 6,499,660,099.63 | |
Total shareholders’ equity | 11,716,477,238.22 | 11,609,053,219.03 | |
Total liabilities and shareholders’ equity | 17,325,794,072.65 | 17,192,611,726.87 |
The accompanying notes form an integral part of these financial statements
COMPANY INCOME STATEMENT
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
Note XIV | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |
Operating revenue | 4 | 1,980,514,298.33 | 2,078,370,123.36 |
Less: Operating costs | 4 | 1,910,062,248.84 | 1,991,420,311.80 |
Taxes and surcharges | 2,313,767.23 | 2,488,284.74 | |
Selling expenses | 23,051,891.99 | 35,959,501.73 | |
Administrative expenses | 47,471,017.05 | 46,619,035.09 | |
Finance costs | (63,606,725.90) | (55,486,414.78) | |
Incl: Interest expense | 29,325,391.91 | 27,864,903.28 | |
Interest income | 94,834,264.79 | 83,409,776.86 | |
Add: Other incomes | 610,612.91 | 1,931,159.58 | |
Investment income | 5 | 317,124,556.93 | 780,364,601.71 |
Incl: Investment income from associates | 100,525,425.88 | 157,696,473.52 | |
Income from the derecognition of financial assets measured at amortised cost | (1,781,142.79) | (221,815.32) | |
Credit impairment losses | 702,918.95 | (123,032.41) | |
Impairment losses | (1,174,444.77) | (281,770.77) | |
Gain on disposal of assets | 68,293.81 | 80,996.38 | |
Operating profits | 378,554,036.95 | 839,341,359.27 | |
Add: Non-operating income | 5,834.26 | 408,885.12 | |
Less: Non-operating expenses | 138,036.55 | - | |
Total profit | 378,421,834.66 | 839,750,244.39 | |
Less: Income tax expenses | 14,139,055.28 | 15,144,476.73 | |
Net profit | 364,282,779.38 | 824,605,767.66 | |
Profit or loss from continuing operations | 364,282,779.38 | 824,605,767.66 | |
Other comprehensive income, net of tax | (3,773.17) | 64,854.90 | |
Other comprehensive income that will be reclassified to profit or loss | (3,773.17) | 64,854.90 | |
Other comprehensive income using the equity method that will be reclassified to profit or loss | (3,773.17) | 64,854.90 | |
Total comprehensive income | 364,279,006.21 | 824,670,622.56 |
The accompanying notes form an integral part of these financial statements
COMPANY STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2022 | Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Retained earnings | Total equity |
I. Balance at end of prior year | 428,126,983.00 | 4,467,289,485.30 | (86,840.40) | 214,063,491.50 | 6,499,660,099.63 | 11,609,053,219.03 |
II. Changes for the year | - | 21,202.78 | (3,773.17) | - | 107,406,589.58 | 107,424,019.19 |
(1) Total comprehensive income | - | - | (3,773.17) | - | 364,282,779.38 | 364,279,006.21 |
(2) Owners’ contributions and reduction in capital | - | 21,202.78 | - | - | - | 21,202.78 |
1.Others | - | 21,202.78 | - | - | - | 21,202.78 |
(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 year | 428,126,983.00 | 4,467,310,688.08 | (90,613.57) | 214,063,491.50 | 6,607,066,689.21 | 11,716,477,238.22 |
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 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2021 | Share capital | Capital surplus | Other comprehensive income | Surplus reserve | Retained earnings | Total equity |
I. Balance at end of prior year | 428,126,983.00 | 4,467,991,431.59 | (128,033.32) | 214,063,491.50 | 5,788,050,243.66 | 10,898,104,116.43 |
II. Changes for the year | - | (460,868.29) | 64,854.90 | - | 482,104,181.26 | 481,708,167.87 |
(1) Total comprehensive income | - | - | 64,854.90 | - | 824,605,767.66 | 824,670,622.56 |
(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 year | 428,126,983.00 | 4,467,530,563.30 | (63,178.42) | 214,063,491.50 | 6,270,154,424.92 | 11,379,812,284.30 |
The accompanying notes form an integral part of these financial statements
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
1.CASH FLOWS FROM OPERATING ACTIVITIES | |||
Cash received from sales of good and the rendering of services | 2,175,090,561.10 | 2,051,451,080.04 | |
Other cash receipts relating to operating activities | 26,226,243.98 | 31,548,087.03 | |
Total cash inflows from operating activities | 2,201,316,805.08 | 2,082,999,167.07 | |
Cash payments for goods and services | 2,062,445,434.60 | 1,882,952,590.62 | |
Cash payments to and on behalf of employees | 59,034,810.39 | 61,431,053.37 | |
Payments of all types of taxes and surcharges | 33,509,806.69 | 36,319,473.82 | |
Other cash payments relating to operating activities | 9,051,195.66 | 11,443,446.22 | |
Total cash outflows from operating activities | 2,164,041,247.34 | 1,992,146,564.03 | |
Net cash flows from operating activities | 37,275,557.74 | 90,852,603.04 | |
2. CASH FLOWS FROM INVESTING ACTIVITIES | |||
Cash receipts from returns of investments | - | 2,997,441.73 | |
Cash receipts from returns on investments | 135,273,790.51 | 214,065,210.12 | |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 119,999.00 | 339,163.00 | |
Other cash receipts relating to investing activities | 1,658,673,796.47 | 2,324,825,373.52 | |
Total cash inflows from investing activities | 1,794,067,585.98 | 2,542,227,188.37 | |
Cash payments for acquisition of fixed assets, intangible assets and other long-term assets | 1,961,637.93 | 2,302,398.23 | |
Other cash payments relating to investing activities | 1,172,734,389.30 | 2,155,040,000.00 | |
Total cash outflows from investing activities | 1,174,696,027.23 | 2,157,342,398.23 | |
Net cash flows from investing activities | 619,371,558.75 | 384,884,790.14 | |
The accompanying notes form an integral part of these financial statements
COMPANY CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
3. CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash receipts from borrowings | 253,374,494.30 | 280,000,000.00 | |
Other cash receipts relating to financing activities | 25,607,545,958.40 | 18,653,623,031.33 | |
Total cash inflows from financing activities | 25,860,920,452.70 | 18,933,623,031.33 | |
Cash repayments for debts | 280,000,000.00 | 30,164,821.52 | |
Cash payments for distribution of dividends or profit and interest expenses | 283,891,846.04 | 363,151,913.01 | |
Other cash receipts relating to financing activities | 25,388,009,883.18 | 18,673,121,608.99 | |
Total cash outflows from financing activities | 25,951,901,729.22 | 19,066,438,343.52 | |
Net cash flows from financing activities | (90,981,276.52) | (132,815,312.19) | |
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,195,457.09) | 392,002.63 | |
5. NET INCREASE IN CASH AND CASH EQUIVALENTS | 564,470,382.88 | 343,314,083.62 | |
Add: Cash and cash equivalents at beginning of the year | 3,098,512,437.04 | 3,020,909,473.71 | |
6. CASH AND CASH EQUIVALENTS AT END OF YEAR | 3,662,982,819.92 | 3,364,223,557.33 |
The accompanying notes form an integral part of these financial statements
Notes to financial statementsFor the six months ended 30 June 2022
(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 16.50 million public shares,
3.50 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 2022
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 statementsFor the six months ended 30 June 2022
(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 2022, 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 statementsFor the six months ended 30 June 2022
(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 30 August 2022.
(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 statementsFor the six months ended 30 June 2022
(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 2022 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 2022 and the operating results, cash flows and otherinformation for the six months ended 30 June 2022 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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 theportfolio of financial instruments is managed, evaluated and reported to key managers on thebasis of fair value.
(3) The financial liability is a hybrid instrument that contains one or more embedded derivatives,unless the embedded derivatives have no significant change in the cash flows of the hybridinstrument, or the embedded derivatives should obviously not be separated from the relatedhybrid instruments.
(4) Mixed instruments contain embedded derivatives that need to be split but cannot be measured
separately 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 statementsFor the six months ended 30 June 2022
(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.
The disclosure of the Group's criteria for judging the significant increase in credit risk, the definition ofassets with impaired credit losses, and the assumption of measuring expected credit 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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 lives | Estimated residual value | Annual depreciation (amortization) rates | |
Buildings and Constructions | 5-35 years | 0-5% | 2.71-19.00% |
Land use rights | 40-50 years or No fixed useful life | 0% | 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 criteria
A 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 statementsFor the six months ended 30 June 2022
(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 20-35 years 3-5% 2.71-4.85%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 statementsFor the six months ended 30 June 2022
(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 and constructions, machinery andequipment, vehicles, office equipments and other assets such as land use rights.
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 statementsFor the six months ended 30 June 2022
(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:
Categories | Useful lives | |
Land use rights | Between the approved useful period and the Company’s operating period | |
Software | 3-10 years | |
Trademarks and Brand use rights | 10 years or No fixed life | |
Distribution network | 10-20 years | |
Franchising rights | 10 years | |
Favorable leases | 16-20 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 statementsFor the six months ended 30 June 2022
(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.
Expenditure for investigation, evaluation and selection of production process and new drug researchesis recognised in profit or loss in the period in which it is incurred. Expenditure on the designation,measurement of the final utilization of the production process and new drugs before mass production iscapitalised only if all of the following conditions are satisfied:
(1) development of the production process and new drugs has been fully demonstrated by thetechnical team;
(2) management has approved the budget of drug production development and new drugs;
(3) market research analysis suggests that the products produced by the new production technologyare able to be promoted;
(4) adequate technical, financial and other resources to complete the development and the ability to useor sell the intangible asset;
(5) the expenditure attributable to the intangible asset during its development phase can be reliablymeasured.
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.
Notes to financial statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Share-based payments (Continued)
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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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) 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 statementsFor the six months ended 30 June 2022
(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 materials forspecified purposes to cope with major disasters, epidemic situations, first aid and other emergencies,etc. Specially approved reserving materials refer to the medical commodities required by thegovernment to deal with emergencies such as epidemic situations, first aid and local common diseases.According to the regulations of CNPGC, the Group, as an enterprise undertaking the task of speciallyapproved reserving materials reserve, obtains the medical reserve funds provided by the PRCgovernment, which appropriated to the local government and CNPGC. The medical reserve fundsreceived via those parties are recognised as other non-current liabilities. In the meantime, theGovernment of Guangdong Province and Guangxi Province designated Sinopharm Holding GuangzhouCo., Ltd. (“Sinopharm Guangzhou”) and its subsidiaries, Sinopharm Holding Guangxi Co., Ltd.(“Sinopharm Guangxi”) and its subsidiaries to undertake the storage, allocation and supply ofpharmaceutical commodities required by major disasters, epidemic situations, first aid and otheremergencies as well as local common diseases in Guangdong and Guangxi Zhuang AutonomousRegion. According to the reserve plan (variety and quantity) of the local government and CNPGC, theGroup reserves 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 statementsFor the six months ended 30 June 2022
(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 lessor
The 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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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. 13/14/15/16/17.
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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(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 statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation
1. Main categories and rates of taxes:
Categories | Tax base | Tax rate | |
Value added tax (“VAT”) | Taxable value added amount (Tax payable is calculated by using the taxable sales amount multiplied by the effective tax rate less deductible VAT input of the current period) | 0%, 3%, 5%, 6%, 9%, 13% | |
City maintenance and construction tax | Amount of VAT | 5% or 7% | |
Corporate income tax (“CIT”) | Taxable income | 15%, 20% or 25% | |
Educational surcharge | Amount of VAT | 3% | |
Local educational surcharge | Amount of VAT | 2% |
2. Tax preferences
In 2011, the Urumqi Head Office, Changji Branch and Karamay Branch of Sinopharm HoldingXinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special Medicines”),Ningxia Guoda Pharmacy Chain Co., Ltd. (“Guoda Ningxia”) and Sinopharm Holding GuodaDrugstore Guangxi Chain Co., Ltd. (“Guoda Guangxi”), subsidiaries of the Company, wereapproved to enjoy a tax concession for Western Development at a reduced CIT rate of 15%.According to the Circular of the Ministry of Finance, the State Administration of Taxation, theGeneral Administration of Customs on Issues Concerning Tax Policies for the FurtherDevelopment of the Western Regions (Cai shui [2011] No.58) and the Announcement on thecontinuation of the income tax policy for the enterprise in Western Region Development (CaiZheng Bu [2020] No.23), enterprises could enjoy a reduced CIT rate of 15% from 1 January 2011to 31 December 2030.
In 2014, the Company’s subsidiary, Sinopharm Guangxi, Sinopharm Holding Guangxi LogisticsCo., Ltd. (“Sinopharm Guangxi Logistics”), Sinopharm Holding Liuzhou Co., Ltd. (“SinopharmLiuzhou”) and Sinopharm Holding Beihai Co., Ltd. (“Sinopharm Beihai”) were approved to enjoy atax concession for Western Development at a reduced CIT rate of 15%. According to the Circularof the Ministry of Finance, the State Administration of Taxation, the General Administration ofCustoms on Issues Concerning Tax Policies for the Further Development of the Western Regions(Cai shui [2011] No.58) and the Announcement on the continuation of the income tax policy for theenterprise in Western Region Development (Cai Zheng Bu [2020] No.23), enterprises above couldenjoy a reduced CIT for Western Regions from 1 January 2014 to 31 December 2030.
Notes to financial statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences(Continued)
In 2015, subsidiaries of the Company, including Sinopharm Holding Guilin Co., Ltd. (“SinopharmGuilin”), Sinopharm Holding Guigang Co., Ltd. (“Sinopharm Guigang”), Sinopharm Holding YulinCo., Ltd. (“Sinopharm Yulin”), Sinopharm Holding Baise Co., Ltd. (“Sinopharm Baise”) andSinopharm Holding Wuzhou Co., Ltd. (“Sinopharm Wuzhou”), were approved to enjoy a taxconcession for Western Development at a reduced CIT rate of 15%. According to the Circular ofthe Ministry of Finance, the State Administration of Taxation, the General Administration ofCustoms on Issues Concerning Tax Policies for the Further Development of the Western Regions(Cai shui [2011] No.58) and the Announcement on the Continuation of the Income Tax Policy forthe Enterprise in Western Region Development (Cai Zheng Bu [2020] No.23), the applicable periodis from 1 January 2015 to 31 December 2030.
In 2017, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of theIncome Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]No.23), Sinopharm holding Guoda pharmacy Inner Mongolia Co., Ltd. (hereinafter referred to as"Guoda Inner Mongolia"), Sinopharm holding Guoda pharmacy Hulunbeier Co., Ltd. (hereinafterreferred to as "Guoda Hulunbeier"), Sinopharm holding Guoda pharmacy Bayannaoer Co., Ltd.(hereinafter referred to as "Guoda Bayannaoer"), Inner Mongolia Guoda Pharmaceutical Co., Ltdcould enjoy a reduced CIT rate of 15% from 1 January 2017 to 31 December 2030.
In 2019, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of theIncome Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]No.23), Sinopharm Holding Qinzhou Co., Ltd. (“Sinopharm Qinzhou”), Sinopharm Holding HezhouCo., Ltd. (“Sinopharm Hezhou”), Sinopharm Holding Hechi Co., Ltd. (“Sinopharm Hechi”), GuodaPharmacy (Pu’er) Songmao Co., Ltd. (“Guoda Pu’er”) could enjoy a reduced CIT rate of 15% from1 January 2019 to 31 December 2030.
In 2021, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of theIncome Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]No.23), Yunnan Guoda Disheng Pharmacy Chain Co., Ltd. (“Disheng Pharmacy Chain”), YunnanGuoda Disheng Medicine Co., Ltd. ("Disheng Medicine"), Sinopharm Holding Medical SupplyChain Service (Guangxi) Co., Ltd. could enjoy a reduced CIT rate of 15% from 1 January 2021 to31 December 2030.
In 2022, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of theIncome Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]No.23), Inner Mongolia Chengda Fangyuan Pharmaceutical Co., Ltd. (hereinafter referred to as"Inner Mongolia Chengda pharmaceutical"), Inner Mongolia Chengda Fangyuan pharmaceuticalchain Co., Ltd. (hereinafter referred to as "Inner Mongolia Chengda chain") could enjoy a reducedCIT rate of 15% from 1 January 2022 to 31 December 2030.
Notes to financial statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences(Continued)
In 2022, according to the Notice on the Implementation of Inclusive Tax Reduction and ExemptionPolicies for Small and Micro Enterprises (Cai Shui [2019] No.13) and 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 Industrial and CommercialHouseholds ([2021] No.12), subsidiaries of the Company listed below qualified for the conditions ofsmall low-profit enterprises, which the taxable income of these subsidiaries does not exceed RMB3million. Hence, for the portion of annual taxable income not exceeding RMB1 million, it shall beincluded in the taxable income of 12.5%, and enterprise income tax shall be paid at the rate of20%; for the portion of annual taxable income exceeding RMB1 million but not exceeding RMB3million, it shall be included in the taxable income of 25%, and enterprise income tax shall be paidat the rate of 20%.
The Company’s subsidiaries which qualified for the conditions of small low-profit enterprisesincluding Sinopharm Holding Guigang Pharmacy Co., Ltd. (“Sinopharm Guigang Pharmacy”),Shanghai Guoda Dongsheng Pharmacy Co., Ltd. (“Shanghai Dongsheng”), Shanghai GuodaRuijing Pharmacy Co., Ltd. (“Shanghai Ruijing”), Sinopharm Holding Guoda Pharmacy UlanqabCo., Ltd. (“Guoda Ulanqab”), Shanghai Guoda Dongxin Pharmacy Co., Ltd. (“Shanghai Dongxin”),Shanghai Guoda Shanghong Qibao Pharmacy Co., Ltd. (“Shanghai Shanghong”), ShanghaiGuodong Traditional Chinese Medicine Clinic Co., Ltd. (“Shanghai Guodong”), Sinopharm GuodaYongsheng Pharmacy (Shanghai) Co., Ltd. (“Guoda Yongsheng”), Guoda Pharmacy ManchuriaCo., Ltd.(“Guoda Manchuria”), Zhejiang Sinopharm Pharmacy Dongshan Pharmacy Co., Ltd.(“Zhejiang Dongshan”), Sinopharm Holding Guoda Pharmacy Guangzhou Chain Co., Ltd. (“GuodaGuangzhou”), Taishan Sinopharm Holding Guoda Qunkang Pharmacy Chain Store Co., Ltd.(“Guoda Taishan”), Guoda Pharmacy (Rizhao) Co., Ltd. (“Guoda Rizhao”), Sinopharm HoldingGuoda Pharmacy Hulun Buir Co., Ltd. (“Guoda Hulun Buir”), Sinopharm Holding Guoda PharmacyBayannur Co., Ltd. (“Guoda Bayannur”), Sinopharm Holding Baiyi Pharmacy Guangxi Co., Ltd.(“Baiyi Pharmacy”), Sinopharm Accord (Guangzhou) Medicine Co., Ltd.(“Guangzhou Medicine”),Guangxi Guoda Pharmaceutical Consulting Chain Co., Ltd. (“Guangxi Consulting”), LiaoningGuoda Health Pharmacy Co., Ltd. (“Liaoning Health Pharmacy”), Liaoning Huludao GuodaPharmacy Co., Ltd. (“Liaoning Huludao”), Changzhi Wanmin Drug Store Co., Ltd. (“ChangzhiWanmin”), Shanxi Guoda Wanmin Chain Clinic Management Co., Ltd. (“Wanmin Chain”), GuodaWanmin Huimin Kangwei Pharmacy Lvliang Co., Ltd. (“Huimin Lvliang”), Shanghai Fumei XuhuiPharmacy Co., Ltd. (“Fumei Xuhui”), Shanghai Pudong Yanghetang Traditional Chinese MedicineClinic Co., Ltd. (“Pudong Yanghetang”), Yanji Xianghe Medicine Co., Ltd. (“Yanji Xianghe”), HebeiChengda Fangyuan Medicine Chain Co., Ltd. (“Hebei Chengda Fangyuan”), Shandong ChengdaFangyuan Medicine Chain Co., Ltd. (“Shandong Chengda Fangyuan”), Liaoning ChengdaFangyuan Technical Training School, and Dalian Zhengda Pharmaceutical Co., Ltd. (“DalianZhengda”), etc.
Notes to financial statementsFor the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1.Cash and bank balances
30 June 2022 | 31 December 2021 | |||
Cash on hand | 8,343,211.00 | 4,642,730.62 | ||
Cash at banks | 5,270,406,711.63 | 4,728,869,491.73 | ||
Other monetary funds (Note 1) | 294,808,514.11 | 392,646,858.59 | ||
5,573,558,436.74 | 5,126,159,080.94 | |||
Note 1: Other monetary funds at 30 June 2022 include: Deposits for bank acceptance bills RMB266,643,490.23 (31 December 2021: RMB351,801,571.62), Concessionary reserve funds (medical reserve funds) RMB68,893.25 (31 December 2021: RMB11,456,766.10), and other restricted deposits RMB28,096,130.63 (31 December 2021: RMB29,388,520.87). As at 30 June 2022 and 31 December 2021, the Group has no cash and bank balances deposited abroad. Interest income is earned on bank demand deposits at the bank demand deposit rate. Short-term deposits are placed for periods ranging from one to six months, depending on the Group's cash requirements, and earn interest income at the corresponding bank term deposit rates. |
2. Notes receivable
The notes receivable by category | ||||
30 June 2022 | 31 December 2021 | |||
Bank acceptance bills | 16,250,599.96 | 32,490,612.49 | ||
Commercial acceptance bills | 618,013,313.54 | 647,705,768.08 | ||
634,263,913.50 | 680,196,380.57 | |||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | ||||||||||||
Carrying amount | Bad debt provisions | Book Value | Carrying amount | Bad debt provisions | Book Value | ||||||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | ||||||
Items for which provision for bad debts is recognised by group | 634,263,913.50 | 100.00% | - | - | 634,263,913.50 | 680,196,380.57 | 100.00% | - | - | 680,196,380.57 | |||
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable(Continued)
Receivables financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2022 are as follows: | ||||
30 June 2022 | ||||
Derecognised | Not derecognised | |||
Bank acceptance bills | - | 11,080,505.71 | ||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | |||||||||||||
Gross carrying amount | Provision for bad debt | Gross carrying value | Gross carrying amount | Provision for bad debt | Gross carrying value | |||||||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||||||
Items for which provision for bad debt is recognized separately | 1,490,397,598.31 | 7.75% | (80,841,093.80) | 5.42% | 1,409,556,504.51 | 1,154,059,084.62 | 7.17% | (78,449,701.36) | 6.80% | 1,075,609,383.26 | ||||
Items for which provision for bad debt is recognized by group | 17,747,741,730.74 | 92.25% | (91,166,261.77) | 0.51% | 17,656,575,468.97 | 14,941,966,625.52 | 92.83% | (52,972,662.87) | 0.35% | 14,888,993,962.65 | ||||
19,238,139,329.05 | 100.00% | (172,007,355.57) | 0.89% | 19,066,131,973.48 | 16,096,025,710.14 | 100.00% | (131,422,364.23) | 0.82% | 15,964,603,345.91 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | |||||
Carrying amount | Bad debt provision | Proportion | Assessment for impairment | ||
Receivable of medical insurance | 937,864,091.05 | (7,467,129.48) | 0.80% | The receivable of medical insurance has lower-tier default risk. | |
Client A | 49,805,927.06 | (48,809,913.19) | 98.00% | Debtor had irregular operations of subject to serious financial difficulties and related to multiple lawsuits, is with lower-tier recoverability. | |
Client B | 11,559,178.29 | (11,559,178.29) | 100.00% | Debtor had irregular operations of subject to serious financial difficulties and related to multiple lawsuits, is with lower-tier recoverability. | |
Client C | 4,356,479.10 | (4,356,479.10) | 100.00% | Debtor had irregular operations of subject to serious financial difficulties, and has been placed on a national list of defaulters, with highly risk of going bankruptcy or financial restructuring. | |
Others | 486,811,922.81 | (8,648,393.74) | 1.78% | Part of the receivable takes longer than usual to recover, and has risk of recoverability. | |
1,490,397,598.31 | (80,841,093.80) | - |
Provision for bad debts by portfolio: | ||||
30 June 2022 | ||||
Carrying amount | Bad debt provision | Accrual proportion | ||
Combination by credit risk characteristics | 17,747,741,730.74 | (91,166,261.77) | 0.51% |
Provision for bad debts of accounts receivable according to the general model of expected credit loss | ||||
30 June 2022 | ||||
Estimated default amount | Expected credit loss in entire lifetime | Expected credit loss rate | ||
Within 1 year | 17,105,157,672.43 | (42,384,841.44) | 0.25% | |
1 to 2 years | 589,640,708.69 | (35,101,869.57) | 5.95% | |
2 to 3 years | 43,427,304.96 | (9,647,875.31) | 22.22% | |
Over 3 years | 9,516,044.66 | (4,031,675.45) | 42.37% | |
17,747,741,730.74 | (91,166,261.77) | 0.51% |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | ||
Within 1 year | 18,562,621,528.82 | |
1 to 2 years | 594,968,275.47 | |
2 to 3 years | 45,526,410.01 | |
Over 3 years | 35,023,114.75 | |
19,238,139,329.05 |
(2) Changes in bad debt provision, recovery or reverse
Bad debt provision for the current period
Opening balance | Amount changes in current period | Closing balance | |||||
Increases | Reversal | write-off | Increases in merger | ||||
Accounts receivable bad debt provision | (131,422,364.23) | (52,207,303.59) | 11,342,407.45 | 279,904.80 | - | (172,007,355.57) | |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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
Project | Write off amount | |
Client A | 279,904.80 |
(4) The top five accounts receivable analysed by customer
Amount | % of the total accounts receivable | Bad debt provision amount | |||
Top 1 Account receivable | 283,938,368.98 | 1.48% | (5,053,456.79) | ||
Top 2 Account receivable | 214,102,036.61 | 1.11% | (3,257,775.75) | ||
Top 3 Account receivable | 146,911,017.75 | 0.76% | (2,922,938.72) | ||
Top 4 Account receivable | 133,490,600.58 | 0.69% | (1,278,035.22) | ||
Top 5 Account receivable | 131,400,843.37 | 0.68% | (119,932.90) | ||
909,842,867.29 | 4.72% | (12,632,139.38) | |||
(5) Accounts receivable derecognized due to the financial assets transferred
From January to June 2022, the Group factored a small portion of accounts receivable at amortised cost to financial institutions. The amount of accounts receivable derecognised was RMB2,958,736,010.02(January to June 2021: RMB1,045,150,904.52), and the amount of loss recognised through Investment income was RMB49,930,502.81 (January to June 2021: RMB7,039,046.60). |
4. Receivable financing
30 June 2022 | 31 December 2021 | ||
Bank acceptance bills | 632,101,362.15 | 1,027,226,940.21 | |
Receivable financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2022 | |||
30 June 2022 | |||
Derecognised | Not Derecognised | ||
Bank acceptance bills | 2,284,256,411.05 | - | |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
5. Advances to suppliers
(1) | The aging of advances to suppliers | ||||
30 June 2022 | 31 December 2021 | ||||
Amount | % of total balance | Amount | % of total balance | ||
Within 1 year | 377,004,053.34 | 98.14% | 519,225,204.09 | 99.67% | |
1 to 2 years | 7,127,085.17 | 1.86% | 1,705,341.22 | 0.33% | |
384,131,138.51 | 100.00% | 520,930,545.31 | 100.00% | ||
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 | |||
Amount | Proportion of total balance | |||
Total amount of top five advances to suppliers | 61,294,695.35 | 15.96% |
6. Other receivables
30 June 2022 | 31 December 2021 | |||
Dividend receivables(Note1) | 16,714,220.20 | - | ||
Other receivables | 608,146,232.54 | 718,089,129.10 | ||
624,860,452.74 | 718,089,129.10 |
Category of Dividends receivable: | |||
30 June 2022 | 31 December 2021 | ||
Shanghai Shyndec Pharmaceutical Co., Ltd. (Hereinafter referred to as Sinopharm Shyndec) | 16,714,220.20 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(1) Other receivables | ||||
(a) Category of other receivables by nature | ||||
30 June 2022 | 31 December 2021 | |||
Deposits | 332,966,124.80 | 294,949,777.43 | ||
Receivable of price reduction compensation and purchasing rebates | 73,218,459.40 | 77,286,467.71 | ||
Entrusted borrowings | 46,334,222.24 | 46,334,222.24 | ||
Receivable of the pharmaceutical electronic trading platform | 45,451,842.67 | 67,123,290.09 | ||
Petty cash advance to employees | 43,844,397.58 | 20,107,746.36 | ||
Receivable of equity transactions | 8,980,000.00 | 8,980,000.00 | ||
Receivable due from related parties | 2,427,334.11 | 2,412,959.70 | ||
Pending refunds | - | 129,688,000.00 | ||
Others | 126,644,861.73 | 139,751,461.64 | ||
679,867,242.53 | 786,633,925.17 |
(b) Changes in bad debt provision |
Bad debt | Expected credit losses over the next 12 months | Entire lifetime expected credit losses(No credit impairment occurred) | Entire lifetime expected credit losses(Credit impairment occurred) | Total |
Balance at 1 January 2022 | - | 2,891,987.95 | 65,652,808.12 | 68,544,796.07 |
Balance at 1 January 2022 during the period | ||||
Provisions during the period | - | 4,571,510.17 | 171,189.88 | 4,742,700.05 |
Reversal during the period | - | (336,590.01) | (1,156,175.19) | (1,492,765.20) |
Write-off during the period | - | - | (73,720.93) | (73,720.93) |
Balance at 30 June 2022 | - | 7,126,908.11 | 64,594,101.88 | 71,721,009.99 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | ||
Within 1 year | 531,252,348.41 | |
1 to 2 years | 49,901,268.10 | |
2 to 3 years | 16,763,265.58 | |
Over 3 years | 81,950,360.44 | |
679,867,242.53 |
(c) Changes in bad debt provision, recovery or reverse |
Provision for bad debts in the current period as follows:
Current change amount | ||||||
Opening balance | Provision | Reversal in the year | Write-off in the year | Other | Closing balance | |
Provision for impairment of other receivables | (68,544,796.07) | (4,742,700.05) | 1,492,765.20 | 73,720.93 | - | (71,721,009.99) |
(d) Actual write-off of other receivables during the period:
Write-off amount | |
Client A | 73,720.93 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(e) The top 5 parties that owed the largest amounts of other receivable balances
Nature | Amount | Age | % of total amount | Provision of bad debt | |
Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd. (Note1) | Entrusted borrowings | 46,334,222.24 | Over 3 years | 6.82% | 46,334,222.24 |
Guangdong Pharmaceutical electronic trading platform | Pharmaceutical trading platform repayment not yet cleared | 40,032,801.71 | Within 1 year | 5.89% | - |
Shenzhen Administration of social insurance fund | Deposit | 20,434,668.80 | Within 1 year | 3.01% | - |
TCM-Integrated Cancer Center of Southern Medical University | Deposit of logistics extension services project | 20,000,000.00 | Over 3 years | 2.94% | - |
Guangdong Provincial Grain and Material Reserve Bureau | Emergency special reserve funds | 12,722,553.40 | Within 1 year | 1.87% | - |
139,524,246.15 | 20.53% | 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.
As at 31 December 2020, the amount of government grants receivable is analysed below: | ||||||||
Grants program | Amount | Age | Estimated collection time, amount and basis | |||||
Shanghai Pudong Finance Bureau | Financial subsidy | 3,364,000.00 | Within 1 year | The amount of government grants receivable has been approved and expected to be fully received in 2022. | ||||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(1) | Inventories by category | |||||||
30 June 2022 | 31 December 2021 | |||||||
Book value | Provision for declines in value of inventories and impairment of contract performance costs | Net book value | Book value | Provision for declines in value of inventories or impairment of contract performance costs | Net book value | |||
Raw materials | 299,854.86 | - | 299,854.86 | 3,771,510.04 | - | 3,771,510.04 | ||
Finished goods | 7,914,064,584.74 | (15,630,957.12) | 7,898,433,627.62 | 7,623,665,381.94 | (11,100,942.38) | 7,612,564,439.56 | ||
Work in progress | 107,849.94 | - | 107,849.94 | 268,702.16 | - | 268,702.16 | ||
Low cost consumables | 6,344,267.93 | - | 6,344,267.93 | 4,936,943.32 | - | 4,936,943.32 | ||
7,920,816,557.47 | (15,630,957.12) | 7,905,185,600.35 | 7,632,642,537.46 | (11,100,942.38) | 7,621,541,595.08 |
(2) | Provision for declines in value of inventories and impairment of contract performance costs |
31 December 2021 | Increases | Decreases | 30 June 2022 | ||||
Provision | Addition due to combination | Reversal or write-off | Others | ||||
Finished goods | (11,100,942.38) | (7,345,063.47) | - | 1,060,366.90 | 1,754,681.83 | ( 15,630,957.12) |
Note: From January to June 2022, a provision of RMB713,561.33 was reversed for the recovery of value of some inventories and a provision of RMB346,805.57 was reversed for the write-down ofinventories due to the sale of inventory goods.
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
8. Contract assets
9. | 30 June 2022 | 31 December 2021 | ||||||
Book Value | Provision | Net Book Value | Book Value | Provision | Net Book Value | |||
Medical devices and equipment guarantee funds | 28,624,976.57 | (455,864.00) | 28,169,112.57 | 29,571,543.27 | (510,383.75) | 29,061,159.52 | ||
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 2022 | ||||||||
Estimated default amount | Expected credit loss in entire lifetime | Expected credit loss rate | ||||||
Within 1 year | 22,874,864.62 | 162,208.54 | 0.71% | |||||
1 to 2 years | 5,750,111.95 | 293,655.46 | 5.11% | |||||
28,624,976.57 | 455,864.00 | 1.59% |
Changes in provision for contract assets are presented as follows:
30 June 2022 | ||||
Project | Provision in current period | Reversal in current period | write offf | Reason |
Provision for impairment of contract assets | 50,823.48 | 105,343.23 | - | Provision for bad debts of contract assets shall be made according to expected credit losses |
9. Other current assets
30 June 2022 | 31 December 2021 | |||
Input tax to be deducted | 113,894,826.33 | 155,985,552.00 | ||
Prepaid corporate income tax | 4,721,646.84 | 3,817,409.16 | ||
Others | 476,133.54 | 804,394.50 | ||
119,092,606.71 | 160,607,355.66 |
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
Investee | 31 December 2021 | Changes in current period | 30 June 2022 | Provision for impairment | ||||
Profit of loss under equity method | Other comprehensive income adjustment | Other changes in equity | Cash dividend declared by investee | |||||
Associates | ||||||||
Sinopharm Shyndec (a) | 1,398,901,911.62 | 36,123,491.62 | (3,773.17) | 21,202.78 | (16,714,220.20) | 1,418,328,612.65 | - | |
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. (“Sinopharm Zhijun”)(a) | 496,542,941.16 | 27,662,634.68 | - | - | - | 524,205,575.84 | - | |
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. (“Zhijun Pingshan”) (a) | 183,906,263.81 | 5,525,963.98 | - | - | - | 189,432,227.79 | - | |
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. (“Zhijun Trade”) (a) | 10,377,417.89 | 220,557.56 | - | - | - | 10,597,975.45 | - | |
Shenzhen Main Luck Pharmaceutical Inc. (“Main Luck Pharmaceutical”)(b) | 340,490,180.80 | 30,992,778.04 | - | - | (70,380,000.00) | 301,102,958.84 | - | |
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. (“Shanghai Beiyi”)(c) | 11,285,238.87 | (166,672.24) | - | - | - | 11,118,566.63 | - | |
Guangdong Jianhui Construction Investment Management Co., Ltd. (“Guangdong Jianhui”) (d) | 8,000,000.00 | - | - | - | - | 8,000,000.00 | - | |
Sinopharm Jienuo Medical Treatment Service Guangdong Co., Ltd. (“Guangdong Jienuo”)(e) | 4,353,878.32 | (645,876.71) | - | - | - | 3,708,001.61 | - | |
Shanghai Renbei Pharmacy Co., Ltd. (“Shanghai Renbei”)(f) | 2,503,525.42 | - | - | - | - | 2,503,525.42 | - | |
Jialong (Hainan) Health Management Group Limited ("Jialong Hainan") (g) | 2,390,105.28 | (844,214.84) | 1,545,890.44 | |||||
Zhijun Suzhou(h) | - | - | - | - | - | - | (1,857,279.52) | |
Shanghai Liyi Pharmacy Co., Ltd. (“Shanghai Liyi”) (i) | 1,081,083.57 | - | - | - | - | 1,081,083.57 | - | |
Dongyuan Accord Pharmaceutical Chain Co., Ltd. (“Dongyuan Accord”)(j) | - | - | - | - | - | - | (396,638.32) | |
2,459,832,546.74 | 98,868,662.09 | (3,773.17) | 21,202.78 | (87,094,220.20) | 2,471,624,418.24 | (2,253,917.84) |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments
(Continued)
(a) 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.
(b) On 4 July 1990, the Group jointly established Main Luck Pharmaceutical with Mercian KabushikiKaisha 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 Luck Pharmaceutical consistedof 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 wasconsidered as an associate of the Group.
(c) 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% and 48%,respectively. According to the Articles of Association, the board of directors of Shanghai Beiyi consistedof seven directors, of which two were appointed by the Group, accounting for 28.57% of voting rights.Therefore, the Group had significant influence over Shanghai Beiyi, and thus, it was considered as anassociate of the Group.
(d) 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 RMB2 million. On 22 March 2019, the Group completed theinvestment of RMB2 million. According to the Articles of Association, the board of directors ofGuangdong Jianhui was composed of five directors, one of whom was appointed by the Group,accounting for 20% of voting rights. Therefore, the Group has significant influence over GuangdongJianhui, and thus, it is considered as an associate of the Group. On 30 March 2020, the Group made anadditional investment of RMB6 million in Guangdong Jianhui according to the shareholding ratio.
(e) 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 appointed
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments
(Continued)
by 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,Group,together with the current shareholders, Sinopharm Jienuo Medical Treatment Service Co., Ltd. andFoshan Jiejianchengfeng Medical Equipment Co., Ltd., increased the capital of Guangdong Jienuo by29%, 51% and 20% according to the shareholding ratio respectively, and the total amount of theincreased capital was RMB6 million.
(f) On 5 March 2019, the Group acquired 30% shares of Shanghai Renbei. According to the Articles ofAssociation, the board of directors of Shanghai Renbei was composed of three directors, one of whomwas 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.
(g) On 9 August 2021, the Group and Hainan Yushan Changxing Health Management CompanyLimited, jointly invested in the establishment of Jialong Hainan, with each party holding 25% and 75% ofthe shares respectively, and the registered capital is RMB11,200,000. On January 12, 2022, the Groupcompleted the capital contribution of RMB2,800,000.According to the Articles of Association, the boardof directors of Jialong Hainan consists of three directors, one of whom is appointed by the Group,accounting for 33.33% of the voting rights. The voting right of board resolutions is one person, one voteand all board resolutions are passed by a majority of all directors. Therefore, the Group has significantinfluence over Jialong Hainan, which is recognized as an associate of the Group.
(h) The Group disposed of its 67% equity interest of Zhijun Suzhou in April 2016. After the disposal, theGroup held a 33% equity interest of Zhijun Suzhou. According to the Articles of Association, the boardof directors of Zhijun Suzhou was composed of five directors, one of whom was appointed by the Group,accounting for 20% of voting rights. As a result, the Group has significant influence over Zhijun Suzhou,and thus, it is considered as an associate of the Group. In 2019, on account of mismanagement, therewas significant uncertainty in the future operation of the Group's affiliated enterprise, Zhijun Suzhou.Thus, the Group made full provision for impairment of the long-term equity investment in Zhijun Suzhou.
(i) On 25 November 2003, the Group jointly established Shanghai Liyi with Shanghai Pudong DistrictCentral 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 consisted of fivedirectors, 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 an associate ofthe Group.
(j) On 16 June 1999, the Group acquired 45% shares of Dongyuan Accord. According to the company'sarticles of association, the board of directors of Dongyuan Accord consists of five directors, two ofwhom are appointed by the Group, accounting for 40% of the voting rights. The voting rights for boardresolutions are one person, one vote, and all board resolutions are approved by more than half of alldirectors. Therefore, the Group has significant influence on Dongyuan Accord, which is an associate ofthe Group. 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.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
11. Other equity instrument investment
30 June 2022 | 31 December 2021 | |||
Sinopharm Health Online Co., Ltd. | 30,379,638.22 | 30,379,638.22 | ||
Sinopharm Guoda Hubei Co., Ltd. | 18,799,104.17 | 18,799,104.17 | ||
Shanghai Chongde Pharmacy Co., Ltd. | 8,319,270.22 | 8,319,270.22 | ||
Shanghai Guoren Pharmacy Co., Ltd. | 4,720,895.53 | 4,720,895.53 | ||
Hunan Zhongbai Pharmaceutical Investment Co., Ltd. | 269,404.85 | 269,404.85 | ||
62,488,312.99 | 62,488,312.99 |
Recognized dividend income | Accumulated profits | Accumulated Loss | Amount transferred from other comprehensive income to retained earnings | Reasons designated to be measured at fair value with changes included in other comprehensive income | |
Sinopharm Health Online Co., Ltd. | - | 18,379,638.22 | - | - | Non tradable equity instruments |
Sinopharm Guoda Hubei Co., Ltd. | - | 17,799,104.17 | - | - | Non tradable equity instruments |
Shanghai Chongde Pharmacy Co., Ltd. | - | 8,048,510.22 | - | - | Non tradable equity instruments |
Shanghai Guoren Pharmacy Co., Ltd. | - | 4,620,895.53 | - | - | Non tradable equity instruments |
Hunan Zhongbai Pharmaceutical Investment Co., Ltd. | - | - | (45,595.15) | - | Non tradable equity instruments |
- | 48,848,148.14 | (45,595.15) | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Other non-current financial assets
30 June 2022 | 31 December 2021 | |||
Financial asset measured at fair value through current profit or loss | 135,974,908.51 | 135,974,908.51 | ||
On June 30, 2022, 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”, Phase I 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 (Phase I Fund), the Company plans to invest RMB200 million to subscribe for the share of the Industrial Fund (Phase I Fund), which will be paid in three installments.The Industrial Fund (Phase I 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. At the first meeting of the ninth session of the Board of Directors of the Group held on 16 July 2021, the proposal of the Group to invest in the subscription of the Industrial Fund (Phase II Fund) was considered and approved. The Group, as a limited partner of the Industrial Fund (Phase II Fund), intends to invest RMB60 million to subscribe for the shares of the Industrial Fund (Phase II Fund), which will be paid in three installments. The Group paid the first installment of RMB18 million in August 2021, and as at 30 June 2022, the Group had paid a total of RMB18 million in capital contribution. The Industrial Fund (Phase II Fund) has obtained the relevant approval and commenced operation in 2021. 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 2022
(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 constructions | Land use right | Total | ||
Original cost | ||||
Opening balance | 206,212,210.76 | 20,963,728.02 | 227,175,938.78 | |
Increase amount in current period | 647,488.61 | - | 647,488.61 | |
Purchase | - | - | - | |
Transfer from inventories\fixed assets\construction in progress | 647,488.61 | - | 647,488.61 | |
Decrease amount in current period | (504,706.29) | (37,635.64) | (542,341.93) | |
Transfer to intangible assets | - | (37,635.64) | (37,635.64) | |
Transfer to fixed assets | (504,706.29) | - | (504,706.29) | |
Closing balance | 206,354,993.08 | 20,926,092.38 | 227,281,085.46 | |
Accumulated depreciation and amortization | ||||
Opening balance | (103,742,730.15) | (8,151,711.40) | (111,894,441.55) | |
Increase amount in current period | (2,635,774.60) | (151,428.79) | (2,787,203.39) | |
Provision | (2,426,638.50) | (151,428.79) | (2,578,067.29) | |
Transfer from fixed assets | (209,136.10) | - | (209,136.10) | |
Decrease amount in current period | 446,835.91 | 6,672.80 | 453,508.71 | |
Transfer to intangible assets | - | 6,672.80 | 6,672.80 | |
Transfer to fixed assets | 446,835.91 | - | 446,835.91 | |
Closing balance | (105,931,668.84) | (8,296,467.39) | (114,228,136.23) | |
Provision for impairment | ||||
Opening balance and Closing balance | (1,300,000.00) | - | (1,300,000.00) | |
Carrying amount | ||||
At end of the period | 99,123,324.24 | 12,629,624.99 | 111,752,949.23 | |
At beginning of the period | 101,169,480.61 | 12,812,016.62 | 113,981,497.23 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Fixed assets
30 June 2022 | 31 December 2021 | |||
Fixed assets | 835,798,833.09 | 868,626,258.43 | ||
(1) | Condition of fixed assets |
Buildings and constructions | Machinery and equipment | Motor vehicles | Office equipments | Electronic equipments | Total | |||
Original cost | ||||||||
Opening balance | 725,861,173.32 | 371,866,499.22 | 102,399,414.98 | 395,148,026.41 | 157,774,189.87 | 1,753,049,303.80 | ||
Increase amount in current period | 3,949,407.97 | 36,056,191.05 | 824,217.81 | 10,822,316.68 | 3,126,222.99 | 54,778,356.50 | ||
Purchase | - | 30,370,031.62 | 824,217.81 | 10,822,316.68 | 3,126,222.99 | 45,142,789.10 | ||
Transfer from construction in progress | 3,444,701.68 | 5,686,159.43 | - | - | - | 9,130,861.11 | ||
Transfer from Investment properties | 504,706.29 | - | - | - | - | 504,706.29 | ||
Business combinations | - | - | - | - | - | - | ||
Decrease amount in current period | (1,303,219.54) | (1,429,813.20) | (922,558.32) | (1,909,512.24) | (3,206,557.85) | (8,771,661.15) | ||
Transfer to investment properties | (647,488.61) | - | - | - | - | (647,488.61) | ||
Disposal or retirement | (655,730.93) | (1,429,813.20) | (922,558.32) | (1,909,512.24) | (3,206,557.85) | (8,124,172.54) | ||
Closing balance | 728,507,361.75 | 406,492,877.07 | 102,301,074.47 | 404,060,830.85 | 157,693,855.01 | 1,799,055,999.15 | ||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) | |||||||
Buildings | Machinery and equipment | Motor vehicles | Office equipments | Electronic equipments | Total | ||
Accumulated depreciation | |||||||
Opening balance | (278,578,414.47) | (203,467,575.81) | (58,211,456.82) | (240,594,219.57) | (103,571,378.70) | (884,423,045.37) | |
Increase amount in current period | (14,497,637.09) | (33,297,572.42) | (5,048,144.47) | (18,256,985.87) | (14,650,876.27) | (85,751,216.12) | |
Provision | (14,050,801.18) | (33,297,572.42) | (5,048,144.47) | (18,256,985.87) | (14,650,876.27) | (85,304,380.21) | |
Transfer from Investment properties | (446,835.91) | - | - | - | - | (446,835.91) | |
Decrease amount in current period | 576,231.30 | 1,275,970.27 | 678,732.49 | 1,487,906.36 | 2,898,255.01 | 6,917,095.43 | |
Disposal or retirement | 367,095.20 | 1,275,970.27 | 678,732.49 | 1,487,906.36 | 2,898,255.01 | 6,707,959.33 | |
Transfer to investment properties | 209,136.10 | - | - | - | - | 209,136.10 | |
Closing balance | (292,499,820.26) | (235,489,177.96) | (62,580,868.80) | (257,363,299.08) | (115,323,999.96) | (963,257,166.06) | |
Carrying amount | |||||||
At end of period | 436,007,541.49 | 171,003,699.11 | 39,720,205.67 | 146,697,531.77 | 42,369,855.05 | 835,798,833.09 | |
At beginning of the period | 447,282,758.85 | 168,398,923.41 | 44,187,958.16 | 154,553,806.84 | 54,202,811.17 | 868,626,258.43 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 value | Reason for not obtaining certification of title | |
Buildings and constructions | 23,963,291.00 | As at 30 June 2022, the Group had not obtained the title deed of the office building located at No. 53 Nan Shi Zhong Road, Tiexi District, Shenyang, and the transferor, Shenyang Tiexi District State-owned Assets Supervision Bureau, was in the process and had issued the relevant certificate. |
Buildings and constructions | 37,637,064.10 | As at 30 June 2022, the Group had not obtained the title deed of the office building located at No. 53 Nan Shi Zhong Road, Tiexi District, Shenyang, and the transferor, Shenyang Tiexi District State-owned Assets Supervision Bureau, was in the process and had issued the relevant certificate. |
Buildings and constructions | 291,208.47 | As at 30 June 2022, the Group was unable to apply for the title deed of the building located at No. 31 Yihe Road, Kaiyuan City, Tieling City, as the construction area was larger than the approved area, and the Kaiyuan City Planning Bureau had issued a certificate of acceptance for the completion of construction works. |
Buildings and constructions | 119,844.81 | On 30 June 2022, the Group constructed its own simple warehouse located at No. 2 Baiyu Road, Sujiatun District, Shenyang for its own storage needs. The Group was unable to apply for the housing title certificate of the property.. |
15. Construction in progress
30 June 2022 | 31 December 2021 | |||
Construction in progress | 34,400,409.22 | 49,849,506.70 |
(1) | Condition of construction in progress |
30 June 2022 | 31 December 2021 | ||||||
Carrying balance | Impairment | Carrying amount | Carrying balance | Impairment | Carrying amount | ||
Supply chain extension project | 16,312,910.10 | - | 16,312,910.10 | 12,446,732.50 | - | 12,446,732.50 | |
Warehouse improvement project | 7,577,026.92 | - | 7,577,026.92 | 3,182,704.49 | - | 3,182,704.49 | |
Software project | 1,199,851.08 | - | 1,199,851.08 | 24,794,281.62 | - | 24,794,281.62 | |
Other construction projects | 9,310,621.12 | - | 9,310,621.12 | 9,425,788.09 | - | 9,425,788.09 | |
34,400,409.22 | - | 34,400,409.22 | 49,849,506.70 | - | 49,849,506.70 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 name | Budget | Opening balance | Increase | Decrease | Decrease | Closing balance | Proportion of investment to budget | Project progress | Source of funds | |
Transferred to fixedOtherse assets | Transferred to Long-term prepaid expenses | |||||||||
Software project | 111,131,415.93 | 24,794,281.62 | 8,678,559.65 | - | (32,272,990.19) | 1,199,851.08 | 30.12% | 30.12% | Own capital | |
Supply chain extension project | 46,048,810.28 | 12,446,732.50 | 14,383,452.72 | (4,774,336.28) | (5,742,938.84) | 16,312,910.10 | 62.73% | 62.73% | Own capital | |
Warehouse improvement project | 19,796,189.85 | 3,182,704.49 | 9,241,456.14 | (4,312,522.81) | (534,610.90) | 7,577,026.92 | 63.09% | 63.09% | Own capital | |
Other construction projects | 205,972,125.26 | 9,425,788.09 | 260,773.82 | (44,002.02) | (331,938.77) | 9,310,621.12 | 4.69% | 4.69% | Own capital | |
382,948,541.32 | 49,849,506.70 | 32,564,242.33 | (9,130,861.11) | (38,882,478.70) | 34,400,409.22 |
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)
16. Right-of-use assets
Buildings and constructions | Machinery, transport and office equipment | Others | Total | |
Original cost | ||||
Opening balance | 4,296,673,416.39 | 4,927,893.76 | 2,418,809.35 | 4,304,020,119.50 |
Increase amount in current period | 652,819,420.11 | - | - | 652,819,420.11 |
Decrease amount in current period | (467,637,122.34) | (3,671,052.86) | - | (471,308,175.20) |
Disposal | (467,637,122.34) | (3,671,052.86) | - | (471,308,175.20) |
Closing balance | 4,481,855,714.16 | 1,256,840.90 | 2,418,809.35 | 4,485,531,364.41 |
Accumulated depreciation | ||||
Opening balance | (1,724,656,730.78) | (3,835,582.33) | (287,466.39) | (1,728,779,779.50) |
Increase amount in current period | (524,756,629.31) | (378,142.64) | (47,473.92) | (525,182,245.87) |
Provision | (524,756,629.31) | (378,142.64) | (47,473.92) | (525,182,245.87) |
Decrease amount in current period | 393,496,947.51 | 3,244,027.44 | - | 396,740,974.95 |
Disposal | 393,496,947.51 | 3,244,027.44 | - | 396,740,974.95 |
Closing balance | (1,855,916,412.58) | (969,697.53) | (334,940.31) | (1,857,221,050.42) |
Carrying amount | ||||
At end of the period | 2,625,939,301.58 | 287,143.37 | 2,083,869.04 | 2,628,310,313.99 |
At beginning of the period | 2,572,016,685.61 | 1,092,311.43 | 2,131,342.96 | 2,575,240,340.00 |
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)
17. Intangible assets
Land use rights | Software | Trademarks and brands use rights | Favorable leases | Distribution network | Franchise | Total | |
Original cost | |||||||
Opening balance | 88,719,468.18 | 231,316,264.13 | 322,476,925.12 | 127,486,000.00 | 283,573,678.24 | 710,000.00 | 1,054,282,335.67 |
Increase amount in current period | 37,635.64 | 44,667,059.40 | 11,000.00 | - | - | - | 44,715,695.04 |
Purchases | - | 6,605,281.31 | 11,000.00 | - | - | - | 6,616,281.31 |
Transfer from construction in progress | - | 38,061,778.09 | - | - | - | - | 38,061,778.09 |
Transfer from investment properties | 37,635.64 | - | - | - | - | - | 37,635.64 |
Decrease amount in current period | - | (127,963.16) | - | - | - | - | (127,963.16) |
Disposal | - | (127,963.16) | - | - | - | - | (127,963.16) |
- | |||||||
Closing balance | 88,757,103.82 | 275,855,360.37 | 322,487,925.12 | 127,486,000.00 | 283,573,678.24 | 710,000.00 | 1,098,870,067.55 |
- | |||||||
Accumulated amortization | |||||||
Opening balance | (32,482,133.76) | (136,724,139.35) | (18,520,174.43) | (44,964,482.67) | (76,954,842.64) | (710,000.00) | (310,355,772.85) |
Increase amount in current period | (913,725.28) | (14,881,930.03) | (6,908,771.28) | (3,542,977.94) | (6,713,933.85) | - | (32,961,338.38) |
Provision | (907,052.48) | (14,881,930.03) | (6,908,771.28) | (3,542,977.94) | (6,713,933.85) | - | (32,954,665.58) |
Transfer from investment properties | (6,672.80) | - | - | - | - | - | (6,672.80) |
Decrease amount in current period | - | 50,252.98 | - | - | - | - | 50,252.98 |
Disposal | - | 50,252.98 | - | - | - | - | 50,252.98 |
Closing balance | (33,395,859.04) | (151,555,816.40) | (25,428,945.71) | (48,507,460.61) | (83,668,776.49) | (710,000.00) | (343,266,858.25) |
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)
17. Intangible assets (Continued)
Land use rights | Software | Trademarks and brands use rights | Favorable leases | Distribution network | Franchise | Total | |
Provision for impairment | |||||||
Opening balance | - | - | (43,000,000.00) | - | (31,000,000.00) | - | (74,000,000.00) |
Closing balance | - | - | (43,000,000.00) | - | (31,000,000.00) | - | (74,000,000.00) |
Carrying amount | |||||||
At end of the year | 55,361,244.78 | 124,299,543.97 | 254,058,979.41 | 78,978,539.39 | 168,904,901.75 | - | 681,603,209.30 |
- | |||||||
At beginning of the year | 56,237,334.42 | 94,592,124.78 | 260,956,750.69 | 82,521,517.33 | 175,618,835.60 | - | 669,926,562.82 |
At the end of the period, the proportion of intangible assets formed through internal research and development of the company to thebalance of intangible assets was 12.53%.
At 30 June 2022, there were no intangible assets with unfinished title certificates (at 31 December 2021: none).
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 goodwill | Opening balance | Increase during this period | Decrease during this period | Closing balance | |
Merger of holdings not under common control | Business combinations not under common control | ||||
Sinopharm Holding (Jiangmen) Medical Co., Ltd. (“Sinopharm Jiangmen”) | 27,392,317.73 | - | - | - | 27,392,317.73 |
Sinopharm Holding Shenzhen Yanfeng Co., Ltd. (“Sinopharm Yanfeng”) | 16,868,644.87 | - | - | - | 16,868,644.87 |
Sinopharm Holding Zhaoqing Co., Ltd. (“Sinopharm Zhaoqing”) | 2,594,341.53 | - | - | - | 2,594,341.53 |
Sinopharm Holding Shaoguan Co., Ltd. (“Sinopharm Shaoguan”) | 1,686,496.80 | - | - | - | 1,686,496.80 |
Sinopharm Holding Meizhou Co., Ltd. (“Sinopharm Meizhou”) | 1,610,819.66 | - | - | - | 1,610,819.66 |
Sinopharm Holding Huizhou Co., Ltd. (“Sinopharm Huizhou”) | 923,184.67 | - | - | - | 923,184.67 |
Sinopharm Holding Zhanjiang Co., Ltd. (“Sinopharm Zhanjiang”) | 282,135.55 | - | - | - | 282,135.55 |
Sinopharm Holding Dongguan Co., Ltd. (“Sinopharm Dongguan”) | 1,499.02 | - | - | - | 1,499.02 |
South Pharma & Trade | 2,755,680.62 | - | - | - | 2,755,680.62 |
Foshan Nanhai | 88,877,850.51 | - | - | - | 88,877,850.51 |
Sinopharm Holding Zhuhai Co., Ltd.(“Sinopharm Zhuhai”) | 6,772,561.47 | 6,772,561.47 | |||
Sinopharm Holding Maoming Co., Ltd.(“Sinopharm Maoming”) | 66,417.07 | - | - | - | 66,417.07 |
Sinopharm Holding Guoda ForMe Medicines (Shanghai) Co., Ltd. (“ForMe Medicines’’) | 3,033,547.53 | - | - | - | 3,033,547.53 |
Sinopharm Hebei Lerentang Pharmacy Chain Store Co., Ltd.(“Hebei Lerentang”) | 29,482,149.57 | - | - | - | 29,482,149.57 |
Xiaoyi Guoda Wanmin Baicaotang Pharmacy Chain Store Co., Ltd. (“Xiaoyi Wanmin”) | 15,866,680.00 | - | - | - | 15,866,680.00 |
Shanxi Guoda Wanmin Pharmacy Chain Store Co., Ltd. (“Shanxi 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 2022
(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 goodwill | Opening balance | Increase during this period | Decrease during this period | Closing balance | |
Merger of holdings not under common control | Business combinations not under common control | ||||
Sinopharm Holding 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 Neimenggu | 70,485,777.00 | - | - | - | 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 | - | 2,818,647.85 | - | 11,898,747.85 |
Shenzhen Guanganli Pharmacy Chain Store Co., Ltd. ‘s Store Acquisition | 13,420,000.00 | - | - | - | 13,420,000.00 |
Beijing Golden Elephant Pharmacy Medicine Chain Company Limited(“Beijing Golden Elephant”) | 64,140,124.36 | - | - | - | 64,140,124.36 |
Guoda Taishan | 26,826,120.55 | - | - | - | 26,826,120.55 |
Taiyuan Tongxinli Pharmacy Co., Ltd. (“Taiyuan Tongxinli”) | 2,818,647.85 | - | - | 2,818,647.85 | - |
Sinopharm Holding Guoda Yongxingtang Pharmacy Chain Store (Chaoyang) Co., Ltd (“Chaoyang Yongxingtang”) | 25,973,399.17 | - | - | - | 25,973,399.17 |
Neimenggu Tongren Big Pharmacy Chain Co., Ltd. store acquisition. | 13,494,000.00 | - | - | - | 13,494,000.00 |
Guoda Pu’er | 71,064,684.79 | - | - | - | 71,064,684.79 |
Shanghai Pudong New Area Pharmaceuticals Co., Ltd.(“Pudong Pharmaceuticals”) | 65,978,042.61 | 65,978,042.61 | |||
Shanghai Dingqun Enterprise Management Consulting Co., Ltd. | 520,836,246.17 | - | - | - | 520,836,246.17 |
Cheng Dafang Pharmaceutical Group Co., Ltd | 1,182,443,676.11 | - | - | - | 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”) | 158,492,204.21 | - | - | - | 158,492,204.21 |
China Pharmaceutical Holdings Nantong Puji Pharmacy Chain Co., Ltd. store acquisition | 11,498,100.00 | - | - | - | 11,498,100.00 |
Shanxi Huimin Kangwei Big Pharmacy Chain Co., Ltd. store acquisition | 20,970,000.00 | - | - | - | 20,970,000.00 |
2,963,335,585.32 | - | 2,818,647.85 | 2,818,647.85 | 2,963,335,585.32 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
As at 27 January 2022, Taiyuan Tongxinli has completed the business cancellation and the relevant assets were merged into theparent company, Shanxi Guoda Yiyuan, so the carrying value of goodwill was merged into the parent company, Shanxi GuodaYiyuan. See Note VI.2 for its cancellation information.
(2) Provision of impairment loss
Names of the investee or matters of forming goodwill | Opening balance | Increase | Decrease | Closing balance | |
Shanghai Dingqun | 162,690,000.00 | - | - | 162,690,000.00 | |
Quanzhou Guoda | 25,000,000.00 | - | - | 25,000,000.00 | |
187,690,000.00 | - | - | 187,690,000.00 |
Information about the asset group or combination of asset groups in which the goodwill is located
Goodwill acquired in a business combination has been allocated to the operating asset group of the relevant subsidiary's mainbusiness for goodwill impairment testing. These asset groups are consistent with the asset groups recognized in the goodwillimpairment test at the date of purchase and in previous years.The recoverable amount is determined as the present value of theestimated future cash flows from the operating asset group of the principal business of each subsidiary for which goodwill exists.Management estimates future cash flows based on a detailed forecast period of five years and subsequent forecast periods. Theprojected future cash flows for the detailed forecast period are determined based on the business plan developed bymanagement. The projected future cash flows for the subsequent forecast period are determined based on the level of the lastyear of the detailed forecast period, taking into account the Group's business plan, industry trends and other factors.
The recoverable amounts of asset groups and asset group combinations are based on budgets approved by management for afive-year period using a cash flow projection methodology, with cash flows beyond that five-year period extrapolated to take intoaccount inflation rates.
The key assumptions made by the Group in determining the cash flow projections for goodwill impairment testing:
(1)Assuming that the appraised entity continues to operate and there are no significant changes from the current situation in keyaspects affecting production and operation, such as the scope of operation, sales model and channels, and management.
(2)Assuming that no significant changes occur in the socio-economic environment in which the appraised entity is located andthat there are no significant changes from the current situation in relevant laws and regulations, etc. in the region in which thecompany is located.
(3)Assuming that the appraised entity will continue to improve and perfect its business scope, business methods andmanagement model on the basis of maintaining consistency, and that it will be able to make timely adjustments and innovationsin line with economic development.
(4)Assuming that interest rates and tax rates, within the prescribed normal range, do not change significantly, etc. The followingillustrates the key assumptions made by management in determining cash flow projections for the purpose of goodwill impairmenttesting.
Revenue growth rate: The Group determines the revenue growth rate for the forecasted annual period based on the businessplans of each subsidiary, historical experience and forecasts of market developments.
Budgeted gross margin: The basis of determination is based on the average gross margin achieved in the year prior to the budgetyear, which is appropriately projected based on expected efficiency improvements and expected market development.
Discount rate: The discount rate used is a pre-tax discount rate that reflects the specific risk of the relevant asset group orcombination of asset groups.
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
Assumptions were used to calculate the present value of the expected future cash flows of thepharmaceutical distribution business, the pharmaceutical retail business asset group and the assetgroup portfolio as at 30 June 2022. The key assumptions made by the Group in determining the cashflow projections when performing the goodwill impairment test are as follows:
Pharmaceutical distribution | Pharmaceutical retail | ||
Revenue growth rate in the budget period | 2.49%-17.00% | -2.25%-14.03% | |
Sustainable growth rate | 3.00% | 3.00% | |
Gross margin | 3.34%-6.20% | 12.36%-52.00% | |
Discount rate | 12.40%-15.00% | 12.58%-15.00% |
The Group determines budgeted gross margins and weighted average growth rates based on historicalexperience and forecasts of market developments, and uses pre-tax rates that reflect the specific risksof the relevant asset groups and asset group combinations as discount rates. The above assumptionsare used to analyze the recoverable amounts of the various asset groups and asset group combinationswithin this business segment.
19. Long-term prepaid expenses
Opening balance | Additions | Amortization | Other decrease | Closing balance | ||
Fixed asset improvement expenditure | 447,915,250.45 | 51,293,777.88 | (65,562,268.99) | (4,460,540.72) | 429,186,218.62 | |
Acquisition expenditure to obtain the right to operate | 166,013,845.54 | 11,615,844.52 | (17,279,213.79) | (180,000.00) | 160,170,476.27 | |
Others | 20,046,345.77 | 284,186.15 | (5,781,598.02) | - | 14,548,933.90 | |
633,975,441.76 | 63,193,808.55 | (88,623,080.80) | (4,640,540.72) | 603,905,628.79 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | |||||
Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |||
Provision for impairment of assets | 240,866,603.05 | 57,740,261.96 | 204,535,469.12 | 49,334,631.28 | ||
Deductible tax loss | 247,304,456.76 | 61,822,956.66 | 156,999,428.65 | 39,093,138.09 | ||
Impact of lease criteria | 121,725,466.63 | 28,643,999.31 | 126,166,577.96 | 29,685,521.43 | ||
Accrued expenses | 190,689,243.32 | 46,475,910.83 | 109,319,247.99 | 25,802,416.16 | ||
Member bonus points | 66,314,447.80 | 15,565,464.51 | 56,953,502.72 | 13,804,027.96 | ||
Accrued payroll | 48,322,321.21 | 11,593,390.11 | 59,779,846.77 | 14,472,633.63 | ||
Others | 45,278,602.70 | 10,634,926.40 | 15,774,146.45 | 3,884,627.84 | ||
960,501,141.47 | 232,476,909.78 | 729,528,219.66 | 176,076,996.39 |
(2) | Deferred tax liabilities before offseting | |||||
30 June 2022 | 31 December 2021 | |||||
Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |||
Fair value adjustment for business combination not involving enterprises under common control | 616,370,769.96 | 154,092,692.50 | 636,489,820.31 | 159,122,455.09 | ||
One-time deduction for fixed assets under five million yuan | 165,372,016.75 | 41,080,779.44 | 168,175,688.17 | 41,874,528.38 | ||
Changes in fair value of financial assets through other comprehensive income | 48,802,552.97 | 12,200,638.25 | 48,802,552.99 | 12,200,638.25 | ||
Division restructuring assets to assess value-added differences | 13,780,567.64 | 3,445,141.91 | 14,911,259.12 | 3,727,814.78 | ||
Others | 24,629,691.32 | 5,185,066.60 | 25,604,493.16 | 5,359,719.05 | ||
868,955,598.64 | 216,004,318.70 | 893,983,813.75 | 222,285,155.55 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | |||||
Deferred tax assets/liabilities -Net | Temporary differences after set-off | Deferred tax assets/liabilities - Net | Temporary differences after set-off | |||
Deferred tax assets | 47,485,404.45 | 184,991,505.33 | 46,336,826.62 | 129,740,169.77 | ||
Deferred tax liabilities | 47,485,404.45 | 168,518,914.25 | 46,336,826.62 | 175,948,328.93 |
(4) | The deductible temporary differences and deductible losses that were not recognized as deferred tax assets are presented as follows: | ||
30 June 2022 | 31 December 2021 | ||
Deductible temporary differences | 23,200,390.80 | 11,238,147.54 | |
Deductible loss (Note) | 57,788,327.59 | 59,698,786.44 | |
80,988,718.39 | 70,936,933.98 |
(5) | Note: Considering that individual subsidiaries of the Group are still in a loss position and it is highly uncertain whether sufficient taxable income will be available to offset the deductible losses in future periods, the Group has not recognized deferred income tax assets for the accumulated losses of these subsidiaries of RMB 57,788,327.59 that are deductible from taxable income. The aforesaid unrecognized deductible losses will due: | ||
30 June 2022 | 31 December 2021 | ||
2022 | 6,641,123.64 | 6,641,123.64 | |
2023 | 7,168,712.20 | 8,298,591.45 | |
2024 | 22,902,212.15 | 23,628,477.37 | |
2025 | 8,413,580.52 | 8,439,382.18 | |
2026 | 12,662,699.08 | 12,691,211.80 | |
57,788,327.59 | 59,698,786.44 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
21. Other non-current assets
30 June 2022 | 31 December 2021 | |||||
Carrying balance | Impairment | Carrying amount | Carrying balance | Impairment | Carrying amount | |
Physical assets reserve specifically authorized | 309,205,366.54 | (12,592.92) | 309,192,773.62 | 296,930,381.81 | (72,444.32) | 296,857,937.49 |
Guarantees | 101,512,031.50 | (367,467.00) | 101,144,564.50 | 102,026,609.50 | (232,467.00) | 101,794,142.50 |
Prepayment for project and equipment | 36,856,205.52 | - | 36,856,205.52 | 39,854,590.30 | - | 39,854,590.30 |
Contract assets | 20,159,281.27 | (137,829.41) | 20,021,451.86 | 16,743,986.71 | (156,301.07) | 16,587,685.64 |
Other | 7,775,158.31 | - | 7,775,158.31 | 4,891,413.31 | - | 4,891,413.31 |
475,508,043.14 | (517,889.33) | 474,990,153.81 | 460,446,981.63 | (461,212.39) | 459,985,769.24 |
22. Short-term borrowings
30 June 2022 | 31 December 2021 | ||||
Credit borrowings | 2,927,031,189.96 | 1,930,467,146.38 | |||
Pledged borrowings | 171,989,511.22 | - | |||
3,099,020,701.18 | 1,930,467,146.38 |
Intra-group bills receivable that have been discounted and not yet due are reverted to short-term borrowings at the consolidatedlevel
At 30 June 2022, the annual interest rate for the above borrowings was 1.80%-4.50%(31 December 2021:0.44%-4.50%).
At 30 June 2022 and 31 December 2021, there were no short-term borrowings of the Group that were overdue but not yet paid.
23. Notes payable
30 June 2022 | 31 December 2021 | ||||
Commercial acceptance bills | 78,748,228.70 | 73,700,292.69 | |||
Bank acceptance bills | 6,311,809,265.94 | 7,586,516,530.99 | |||
6,390,557,494.64 | 7,660,216,823.68 |
At 30 June 2022, the total amount of notes payable that were due but not yet paid was nil (31 December 2021:nil).
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
24. Accounts payable
30 June 2022 | 31 December 2021 | |||||
Payment for goods | 11,329,463,911.07 | 9,057,718,968.14 | ||||
At 30 June 2022, significant accounts payable aged over one year was analyzed below:
Amount | Reason | ||||
Payment for goods | 613,075,167.06 | Has not been settled |
25. Receipts in advance
30 June 2022 | 31 December 2021 | ||||
Advanced lease payment | 18,140,667.15 | 19,289,567.44 | |||
26. Contract liabilities
30 June 2022 | 31 December 2021 | ||||
Contract liabilities | 446,665,021.01 | 431,303,231.37 | |||
27. Employee benefits payable
31 December 2021 | Increase | Decrease | 30 June 2022 | ||
Short-term employee benefits (1) | 332,740,724.86 | 1,552,861,040.78 | (1,655,917,366.02) | 229,684,399.62 | |
Post-employment benefits (defined contribution plan) (2) | 7,263,643.68 | 161,560,598.74 | (157,706,923.22) | 11,117,319.20 | |
Termination benefits | 192,756.79 | 185,799.87 | (189,867.56) | 188,689.10 | |
340,197,125.33 | 1,714,607,439.39 | (1,813,814,156.80) | 240,990,407.92 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2021 | Increase | Decrease | 30 June 2022 | ||
Salaries, bonuses, allowances and grants | 310,756,231.93 | 1,349,773,699.68 | (1,452,477,822.63) | 208,052,108.98 | |
Staff welfare | 1,896,079.97 | 33,725,170.87 | (33,305,445.16) | 2,315,805.68 | |
Social security contribution | 4,668,816.25 | 88,455,751.60 | (90,245,316.02) | 2,879,251.83 | |
Incl: Medical insurance | 4,556,753.76 | 83,076,013.05 | (84,894,890.20) | 2,737,876.61 | |
Work injury insurance | 92,574.46 | 3,495,144.35 | (3,451,920.98) | 135,797.83 | |
Maternity insurance | 19,488.03 | 1,884,594.20 | (1,898,504.84) | 5,577.39 | |
Housing funds | 1,974,638.71 | 57,510,906.40 | (57,041,543.77) | 2,444,001.34 | |
Labor union funds and employee education funds | 12,573,136.23 | 21,959,876.47 | (21,411,602.68) | 13,121,410.02 | |
Other short-term benefits | 871,821.77 | 1,435,635.76 | (1,435,635.76) | 871,821.77 | |
332,740,724.86 | 1,552,861,040.78 | (1,655,917,366.02) | 229,684,399.62 |
(2) | Defined contribution plan |
31 December 2021 | Increase | Decrease | 30 June 2022 | |||||
Basic pension insurance | 2,268,338.29 | 154,103,723.59 | (148,555,950.60) | 7,816,111.28 | ||||
Unemployment insurance | 142,603.69 | 4,712,271.46 | (4,460,904.95) | 393,970.20 | ||||
Contribution to pension fund | 4,852,701.70 | 2,744,603.69 | (4,690,067.67) | 2,907,237.72 | ||||
7,263,643.68 | 161,560,598.74 | (157,706,923.22) | 11,117,319.20 | |||||
Note:For the half year of 2022, the Group provided other termination benefits for severing labor relations of RMB149,212.00. For the half year of 2021, the Group provided other termination benefits for severing labor relations of RMB406,814.34.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 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
28. Tax payable
30 June 2022 | 31 December 2021 | |||
Corporate Income taxes | 204,963,847.78 | 178,870,986.61 | ||
Value-added tax | 115,851,465.78 | 116,033,746.26 | ||
Stamp duty | 9,811,058.50 | 9,920,803.28 | ||
Individual income tax | 8,094,662.21 | 7,421,770.17 | ||
City maintenance and construction surtax | 7,453,512.42 | 8,285,798.93 | ||
Educational surcharge | 5,949,470.18 | 6,128,676.48 | ||
Water conservancy fund | 1,299,726.77 | 1,904,421.45 | ||
Property tax | 1,150,452.87 | 1,166,484.81 | ||
Land use tax | 85,943.48 | 63,985.06 | ||
Others | 6,950,642.84 | 7,367,407.14 | ||
361,610,782.83 | 337,164,080.19 |
29. Other payables
30 June 2022 | 31 December 2021 | |||
Interest payable | 54,630,796.23 | 31,587,062.03 | ||
Dividend payable | 29,976,446.26 | 30,140,616.33 | ||
Other payables | 2,164,208,703.69 | 1,653,019,308.10 | ||
2,248,815,946.18 | 1,714,746,986.46 |
(1) Interest payable | ||||
30 June 2022 | 31 December 2021 | |||
Factoring interest on accounts receivable | 54,630,796.23 | 31,587,062.03 | ||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | |||
Jilin Yihe Investment Consulting Co., Ltd | 22,635,133.81 | 22,635,133.81 | ||
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharm”) | 4,835,511.58 | 4,835,511.58 | ||
Dividend payable to Zhang Zhenfang | 2,505,800.87 | 2,505,800.87 | ||
Meiluo Pharmaceutical Co., Ltd. | - | 164,170.07 | ||
29,976,446.26 | 30,140,616.33 |
At 30 June 2022 and 31 December 2021, the Group had no significant dividend aged more than one year and not yet paid.
(3) Other payables | ||||
30 June 2022 | 31 December 2021 | |||
Payables for factoring programs | 940,993,604.43 | 549,837,612.90 | ||
Deposit | 459,938,698.92 | 449,660,261.02 | ||
Accrued expenses | 223,088,290.60 | 230,547,704.07 | ||
Payables for rentals | 144,562,565.13 | 95,330,986.78 | ||
Equity payables | 122,200,000.00 | 125,000,000.00 | ||
Payables for construction in progress and equipment | 42,068,719.87 | 53,913,827.67 | ||
Collection of others | 40,821,359.82 | 28,674,847.66 | ||
Payables to individuals | 14,288,250.02 | 17,809,022.64 | ||
Temporary loans | 10,000,500.00 | 9,984,512.61 | ||
Payables for land transfer payments | 7,486,500.00 | 7,486,500.00 | ||
Payables to related parties | 294,282.33 | 596,258.19 | ||
Others | 158,465,932.57 | 84,177,774.56 | ||
2,164,208,703.69 | 1,653,019,308.10 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
29. Other payables(Continued)
At 30 June 2022, significant other payables over 1 year are:
Amount payable | Reason for outstanding | |||
Deposits | 11,183,321.05 | Payment conditions not met | ||
Temporary loans | 9,800,000.00 | Payment conditions not met | ||
Payables for land transfer payments | 7,486,500.00 | Payment conditions not met | ||
28,469,821.05 |
30. Non-current liabilities due within 1 year
30 June 2022 | 31 December 2021 | |||
Lease liabilities due within 1 year | 852,086,989.55 | 848,328,648.14 | ||
Long-term loans due within 1 year | 6,000,000.00 | - | ||
858,086,989.55 | 848,328,648.14 | |||
31. Other current liabilities
30 June 2022 | 31 December 2021 | |||
Pre-collected VAT | 24,266,555.72 | 27,078,191.86 | ||
Output VAT to be recognized | 280,714.64 | 418,081.05 | ||
Other | 11,110,059.72 | 12,089,196.74 | ||
35,657,330.08 | 39,585,469.65 |
32. Long-term borrowings
30 June 2022 | 31 December 2021 | ||||
Entrusted loans(1) | 31,633,794.44 | 31,637,173.89 | |||
Credit loan(2) | 31,000,000.00 | 40,000,000.00 | |||
62,633,794.44 | 71,637,173.89 | ||||
(1)At 30 June 2022, the total amount of remaining entrusted loans was RMB31,633,794.44 (31 December 2021: 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 3.85%(31 December 2021: 3.85%). (2)At 30 June 2022, the balance of credit borrowings was RMB31,000,000.00 (31 December 2021: RMB 40,000,000.00) from Everbright Bank. The annual interest rate on this credit loan is 4.05% (31 December 2021 : 4.05%). | |||||
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
33. Lease liabilities
30 June 2022 | 31 December 2021 | |||
Lease payment | 2,243,561,602.43 | 2,223,756,525.42 | ||
Less: Lease liabilities due within 1 year | 852,086,989.55 | 848,328,648.14 | ||
1,391,474,612.88 | 1,375,427,877.28 |
34. Long-term payables
30 June 2022 | 31 December 2021 | ||||
Payables for specific projects | 6,938,189.00 | 6,938,189.00 |
Payables for specific projects:
31 December 2021 | Increase | Decrease | 30 June 2022 | Reasons of derred income | |||||
Special funds granted by government (1) | 800,000.00 | - | - | 800,000.00 | Funds 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 2022 | 31 December 2021 | |||
Early retirement benefits payable | 1,156,000.00 | 1,202,000.00 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
36. Deferred income
Opening balance | Increase | Decrease | Closing balance | Reasons of deferred income | ||
Government grants | 86,402,219.54 | 200,701.00 | 3,382,345.72 | 83,220,574.82 | Government grant | |
VAT Additional deduction | 514,832.24 | 1,073,499.36 | 1,256,972.27 | 331,359.33 | VAT additional deduction | |
86,917,051.78 | 1,274,200.36 | 4,639,317.99 | 83,551,934.15 |
As at 30 June 2022, deferred income from government grants are as follows: | |||||||
Government grants program | Opening balance | Addition | Amount included in non-operating income | Amount included in other income | Closing balance | Asset related/ income related | |
Resettlement Compensation (Note) | 67,460,215.49 | - | 1,349,204.28 | - | 66,111,011.21 | Asset related | |
Construction fund of the modern supply chain system in the central circulation field in 2018 | 6,760,654.80 | - | - | 809,950.26 | 5,950,704.54 | Asset related | |
Logistics project of Nanning Economic Development Zone construction support funds | 4,660,159.43 | - | - | 93,203.22 | 4,566,956.21 | Asset related | |
Subsidies for pharmaceutical supply chain projects | 1,910,004.37 | - | - | 178,590.60 | 1,731,413.77 | Asset related | |
Guangzhou logistics standardisation pilot project | 1,176,272.03 | - | - | 273,123.42 | 903,148.61 | Asset related | |
Funds for the logistics information platform project of the pharmaceutical storage centre | 666,666.87 | - | - | 71,428.56 | 595,238.31 | Asset related | |
Comprehensive experimental modern service industry subsidies | 600,000.00 | - | - | 150,000.00 | 450,000.00 | Asset related | |
Special funds for industrial transformation and upgrading in dualised integration projects | 392,720.10 | - | - | 139,907.58 | 252,812.52 | Asset related | |
Other projects | 2,775,526.45 | 200,701.00 | - | 316,937.80 | 2,659,289.65 | Asset related/ 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 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
37. Other non-current liabilities
30 June 2022 | 31 December 2021 | ||||||
Governmental medical reserve funds (1) | 593,063,888.27 | 560,495,462.17 | |||||
Equity payable | 71,400,000.00 | 71,400,000.00 | |||||
Product promotion accumulative points programme (2) | 31,072,257.90 | 32,479,462.95 | |||||
Other | 6,140.53 | 6,140.53 | |||||
695,542,286.70 | 664,381,065.65 | ||||||
(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. |
38. Share capital
Movement during the current year | ||||||
31 December 2021 | Issue of new share | Others | Subtotal | 30 June 2022 | ||
Shares | 428,126,983.00 | - | - | - | 428,126,983.00 |
39. Capital surplus
31 December 2021 | Increase | Decrease | 30 June 2022 | ||
Share premium | 2,118,174,787.27 | - | - | 2,118,174,787.27 | |
Other capital surplus | 2,253,627,320.16 | 21,202.78 | - | 2,253,648,522.94 | |
4,371,802,107.43 | 21,202.78 | - | 4,371,823,310.21 | ||
Changes in other equity of Shyndec Pharma, an associate of the group, add the book value of long-term equity investment and include it in the capital reserve of RMB 21,202.78. |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
40. Other comprehensive income
Amounts changes in current period | ||||
31 December 2021 | Occurrence amount before tax | Attributable to shareholders of owners of the parent | 30 June 2022 | |
Other comprehensive income items which will not be reclassified subsequently to profit or loss | 21,961,038.76 | - | - | 21,961,038.76 |
Incl: Change in the fair value of other equity investments | 21,961,038.76 | - | - | 21,961,038.76 |
Other comprehensive income that may be reclassified to profit or loss | (86,840.40) | (3,773.17) | (3,773.17) | (90,613.57) |
Incl: Other comprehensive income using the equity method that may be reclassified to profit or loss | (86,840.40) | (3,773.17) | (3,773.17) | (90,613.57) |
21,874,198.36 | (3,773.17) | (3,773.17) | 21,870,425.19 |
41. Surplus reserve
31 December 2021 | Increase | Decrease | 30 June 2022 | ||
Statutory surplus reserves | 214,063,491.50 | - | - | 214,063,491.50 |
42. Retained earnings
30 June 2022 | 31 December 2021 | ||
Retained earnings at beginning of year before retrospective adjustment and restatement | 9,889,071,272.21 | 8,895,145,106.39 | |
The retrospective adjustment and restatement | - | - | |
Retained earnings at beginning of year after retrospective adjustment and restatement | 9,889,071,272.21 | 8,895,145,106.39 | |
Add: Net profit attributable to the parent | 674,215,912.93 | 1,336,427,752.22 | |
Less: Dividend payable on common stock | 256,876,189.80 | 342,501,586.40 | |
Retained earnings on June 30, 2020 | 10,306,410,995.34 | 9,889,071,272.21 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
43. Operating revenue and cost
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||||
Revenue | Cost | Revenue | Cost | ||
Principal operations | 35,768,781,930.34 | 31,831,173,699.03 | 32,841,264,479.56 | 29,156,249,513.96 | |
Other operations | 360,128,119.64 | 107,846,116.57 | 321,827,407.83 | 60,587,687.11 | |
36,128,910,049.98 | 31,939,019,815.60 | 33,163,091,887.39 | 29,216,837,201.07 |
Classification | Head Office | Pharmaceutical distribution | Pharmaceutical retail | Elimination between segments | Total | |
By product | ||||||
Incl: | ||||||
Pharmaceuticals | - | 20,658,106,818.64 | 10,518,104,050.65 | (477,730,068.50) | 30,698,480,800.79 | |
Medical devices and disposables | - | 3,889,963,499.47 | 590,413,492.64 | - | 4,480,376,992.11 | |
Diagnostic reagents | - | 595,036,742.79 | - | - | 595,036,742.79 | |
Medical equipments | - | 131,576,141.49 | - | - | 131,576,141.49 | |
Others | 213,770.00 | 174,573,822.26 | - | (1,336,897.05) | 173,450,695.21 | |
By area | ||||||
Incl: | ||||||
China | 213,770.00 | 25,449,257,024.65 | 11,108,517,543.29 | (479,066,965.55) | 36,078,921,372.39 | |
By types of activity | ||||||
Incl: | ||||||
Pharmaceutical distribution | - | 24,045,828,999.99 | 1,659,820,863.49 | (477,730,068.50) | 25,227,919,794.98 | |
Retail pharmacy | - | 1,228,854,202.40 | 9,448,696,679.80 | - | 10,677,550,882.20 | |
Others | 213,770.00 | 174,573,822.26 | - | (1,336,897.05) | 173,450,695.21 | |
By contract duration | ||||||
Incl: | ||||||
At a point in time | - | 25,274,683,202.39 | 11,108,517,543.29 | (477,730,068.50) | 35,905,470,677.18 | |
Over time | 213,770.00 | 174,573,822.26 | - | (1,336,897.05) | 173,450,695.21 | |
213,770.00 | 25,449,257,024.65 | 11,108,517,543.29 | (479,066,965.55) | 36,078,921,372.39 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
43. Operating revenue and cost (Continued)
Information about the Group’s performance obligations is summarised below:
(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 daysfrom delivery;
(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service iscompleted.Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilledis RMB446,665,021.01, which is expected to be recognized within 1 year.
Revenue is as follows: | |||
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | ||
Revenue from contracts with customers | 36,078,921,372.39 | 33,120,723,712.62 | |
Rentals | 49,988,677.59 | 42,368,174.77 | |
36,128,910,049.98 | 33,163,091,887.39 |
44. Tax and surcharges
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
City maintenance and construction tax | 36,545,739.89 | 27,877,507.46 | ||
Educational surcharge | 26,507,011.37 | 20,257,170.15 | ||
Stamp duty | 26,135,378.84 | 21,497,447.37 | ||
Property tax | 3,982,142.71 | 4,224,163.72 | ||
Land tax | 555,653.98 | 768,836.09 | ||
Vehicle and vessel use tax | 77,425.33 | 85,991.96 | ||
Others | 2,093,753.21 | 1,278,737.83 | ||
95,897,105.33 | 75,989,854.58 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
45. Selling expenses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Employees payroll and welfare benefits | 1,278,925,403.75 | 1,197,067,119.97 | ||
Depreciation expenses of right-of-use assets | 493,729,067.18 | 479,540,503.22 | ||
Technical service fee | 128,438,118.24 | 84,303,596.21 | ||
Rentals not included in the measurement of lease liabilities | 126,072,784.84 | 117,046,188.52 | ||
Amortization of long-term deferred expenses | 76,029,815.38 | 69,802,526.37 | ||
Depreciation expenses | 59,591,381.77 | 56,762,708.30 | ||
Utilities | 41,148,967.59 | 39,863,463.73 | ||
Office allowances | 35,845,328.50 | 35,013,829.00 | ||
Storage expenses | 31,793,439.93 | 25,614,256.09 | ||
Promotion and marketing expenses | 19,717,109.56 | 18,804,920.99 | ||
Property management fee | 18,969,784.07 | 16,975,156.97 | ||
Amortization of intangible assets | 17,996,286.89 | 18,592,881.19 | ||
Entertainment expenses | 11,743,734.81 | 14,061,877.53 | ||
Repairing fees | 8,109,401.16 | 7,118,061.32 | ||
Market development fee | 4,432,280.06 | 8,168,582.42 | ||
Travel allowances | 1,949,747.55 | 2,939,453.78 | ||
Conference expenses | 678,377.12 | 525,946.12 | ||
Others | 131,313,412.39 | 115,284,458.04 | ||
2,486,484,440.79 | 2,307,485,529.77 |
46. Administrative expenses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Employees payroll and welfare benefits | 380,834,502.76 | 360,049,901.79 | ||
Depreciation expenses | 16,984,679.24 | 17,675,510.90 | ||
Office allowances | 15,786,794.21 | 14,281,405.19 | ||
Amortization of intangible assets | 13,718,107.83 | 11,402,009.79 | ||
Rental expenses | 11,610,468.24 | 16,196,265.77 | ||
Depreciation expenses of right-of-use assets | 10,566,294.26 | 12,957,819.94 | ||
Amortization of long-term deferred expenses | 8,545,345.17 | 8,283,676.96 | ||
Technical service fee | 6,861,241.80 | 6,691,393.49 | ||
Entertainment expenses | 6,289,130.61 | 7,342,000.00 | ||
Property management fee | 6,086,330.72 | 4,749,071.86 | ||
Agency service fee | 3,512,785.97 | 2,841,366.73 | ||
Utilities | 2,791,313.58 | 3,107,684.09 | ||
Vehicle management expenses | 2,540,121.79 | 3,659,483.25 | ||
Repairing fees | 2,118,463.79 | 2,852,529.46 | ||
Travel allowances | 1,545,821.46 | 3,444,399.91 | ||
Others | 19,665,546.39 | 17,002,417.58 | ||
509,456,947.82 | 492,536,936.71 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
47. Finance costs
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Interest expenses | 142,860,549.18 | 147,057,897.99 | ||
Less: Interest income | 34,626,066.94 | 38,758,729.78 | ||
Cash discount | 19,130,477.97 | 18,968,417.81 | ||
Exchanges gain/(loss) | 3,248,502.79 | (415,927.10) | ||
Others | 18,849,640.93 | 18,328,179.85 | ||
111,202,147.99 | 107,243,003.15 |
A breakdown for interest income is as follows:
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Cash | 34,626,066.94 | 38,758,729.78 |
48.
Other incomes
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Government grants related to daily operating activities | 32,008,641.31 | 33,665,225.01 | ||
VAT reduction for small-scale taxpayers | 9,575,400.10 | 11,566,085.35 | ||
VAT additional deduction | 1,278,627.33 | 929,058.98 | ||
Taxation service charge refund | 1,008,401.70 | 788,376.92 | ||
Self-employed retired soldiers tax benefits | 287,764.57 | 300,870.00 | ||
44,158,835.01 | 47,249,616.26 |
49. Investment income
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Long-term equity investment income under the equity method | 98,868,662.09 | 157,696,397.81 | ||
Dividend income from other equity investments that are still held | - | 2,330,159.50 | ||
Investment income from financial assets at fair value through profit or loss | - | 3,599,555.61 | ||
Investment income from the derecognition of financial assets measured at amortised cost | (49,930,502.81) | (7,039,046.60) | ||
48,938,159.28 | 156,587,066.32 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
50. Credit impairment losses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Impairment loss of accounts receivable | (40,864,896.14) | (28,023,731.77) | ||
Impairment loss of other receivables | (3,249,934.85) | (1,464,818.01) | ||
Impairment loss of notes receivables | - | 893,564.34 | ||
Other non-current assets | (135,000.00) | (70,000.00) | ||
(44,249,830.99) | (28,664,985.44) |
51.
Impairment losses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Loss from write-down of inventories | (6,631,502.14) | (318,356.71) | ||
Loss from impairment of contract assets | 54,519.75 | ( 60,342.41) | ||
Loss from impairment of other non-current assets | 78,323.06 | ( 38,216.14) | ||
(6,498,659.33) | ( 416,915.26) |
52. Gain on disposal of assets
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Gain on disposal of right-of-use assets | 3,297,235.48 | (505,084.56) | ||
Gain on disposal of fixed assets | (104,413.71) | (83,714.99) | ||
3,192,821.77 | (588,799.55) |
53. Non-operating income
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | Amount classified as non-recurring profit or loss | |||
Gain from writing off the unnecessary payment | 1,427,644.86 | 7,298,605.35 | 1,427,644.86 | ||
Government grants | 1,349,204.28 | 1,349,204.28 | 1,349,204.28 | ||
Gain on disposal of non-current assets | 56,872.95 | 60,184.80 | 56,872.95 | ||
Others | 1,522,806.30 | 3,785,326.01 | 1,522,806.30 | ||
4,356,528.39 | 12,493,320.44 | 4,356,528.39 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Non-operating income(Continued)
Government grants included in current period profit or loss:
Project Name | Government Department | Reasons for Government grants | Type | Affects the profit or loss of this year | Special subsidy | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | Related to asset/income |
Resettlement Compensation of No. 7 Zhongyao Road | Nanning Economic & Technological Development Area Management Committee | Subsidy | Subsidies from local government for support policies such as attracting investment | Yes | No | 1,349,204.28 | 1,349,204.28 | Asset related |
54. Non-operating expenses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | Amount classified as non-recurring profit or loss | ||||
Losses arising from damage and obsolescence of non-current assets | 677,435.02 | 273,414.36 | 677,435.02 | |||
Penalty expenses | 448,700.72 | 1,220,928.37 | 448,700.72 | |||
Donation expenses | 137,688.00 | 158,990.50 | 137,688.00 | |||
Others | 928,175.00 | 1,584,618.12 | 928,175.00 | |||
2,191,998.74 | 3,237,951.35 | 2,191,998.74 |
55. Income tax expenses
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | |||
Current income tax | 302,467,105.31 | 248,326,505.55 | ||
Deferred income tax | (62,680,750.24) | (9,900,246.51) | ||
239,786,355.07 | 238,426,259.04 |
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 2022 | ||
Profit before income tax | 1,034,555,447.84 | |
Tax at the applicable tax rate | 258,638,861.96 | |
Effect of different tax rates for some subsidiaries | (14,716,366.91) | |
Adjustments in respect of current tax of previous periods | 18,244,499.91 | |
Income not subject to tax | (24,004,868.19) | |
Expenses not deductible for tax | 1,691,854.32 | |
Use of prior years' unrecognized tax losses | (741,527.42) | |
Unrecognised deductible temporary differences and tax losses | 673,901.40 | |
Income tax | 239,786,355.07 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
56. Notes to items in the cashflow statement
(1) | Other cash receipts relating to operating activities | |||||||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||||||||
Rent income | 44,133,350.15 | 42,368,174.77 | ||||||||
Interest income | 39,718,910.53 | 38,758,729.78 | ||||||||
Received other government grants except tax refund | 14,734,893.65 | 35,612,619.03 | ||||||||
Received emergency medical supplies reserve | 18,938,298.44 | 48,642,430.00 | ||||||||
Others | 176,073,126.15 | 203,208,921.88 | ||||||||
293,598,578.92 | 368,590,875.46 | |||||||||
(2) | Other cash payments relating to operating activities | |||||||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||||||||
Rental expenses | 128,090,072.24 | 133,233,956.70 | ||||||||
Office expenses | 55,332,748.84 | 49,295,234.19 | ||||||||
Advertising expenses | 23,126,119.78 | 19,109,323.81 | ||||||||
Entertainment expenses | 17,350,415.36 | 21,403,877.53 | ||||||||
Bank expenses | 15,317,062.81 | 17,472,673.47 | ||||||||
Travel expenses | 4,008,620.55 | 6,383,853.69 | ||||||||
Others | 467,860,003.29 | 685,881,277.97 | ||||||||
711,085,042.87 | 932,780,197.36 |
(3) | Other cash receipts relating to investing activities | ||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||||
Others | - | 54,984.60 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
56. Notes to items in cash flow statement (Continued)
(4) | Other cash receipts relating to financing activities | |||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||
Payment of financing restricted monetary funds | 392,205,448.15 | - | ||
Financing restricted monetary funds received | 79,628,828.81 | 34,940,555.62 | ||
Received loan provided by minority shareholders | - | 69,150,000.00 | ||
471,834,276.96 | 104,090,555.62 | |||
(5) | Other cash payments relating to financing activities | |||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||
Lease payment | 579,615,796.49 | 536,275,009.28 | ||
Payment of financing restricted monetary funds | 84,111,199.22 | - | ||
Repayment of loans to minority shareholders | 46,500,000.00 | 50,400,000.00 | ||
Bank factoring payable | - | 251,370,239.59 | ||
710,226,995.71 | 838,045,248.87 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Supplementary information of cashflow statement
(1) | Reconciliation of net profit to cash flows from operating activities | ||
For the six month ended 30 June 2022 | For the six month ended 30 June 2021 | ||
Net profit | 794,769,092.77 | 907,994,454.49 | |
Add: Provisions for asset impairment | 50,748,490.32 | 29,081,900.70 | |
Depreciation of fixed assets | 85,304,380.21 | 78,401,603.02 | |
Depreciation of right-of-use assets | 525,182,245.87 | 493,632,821.29 | |
Amortization of intangible assets | 32,954,665.58 | 30,503,457.69 | |
Amortization of long-term prepaid expenses | 88,623,080.80 | 79,098,080.34 | |
Gains/(losses) on disposal of fixed assets, intangible assets and other long-term assets | (3,192,821.77) | 588,799.55 | |
Gains/(losses) on scrapping of fixed assets | 620,562.07 | 213,229.56 | |
Finance expenses | 122,427,202.14 | 126,395,365.24 | |
Investment losses | (48,938,159.28) | (156,587,066.32) | |
(Increase)/decrease in deferred tax assets | (56,399,913.39) | (10,036,816.58) | |
(Decrease)/increase in deferred tax liabilities | (6,280,836.85) | 417,984.79 | |
Decrease in inventories | (286,419,338.18) | (868,988,935.78) | |
Increase in operating receivables items | (2,403,154,727.73) | (3,060,847,945.57) | |
(Decrease)/increase in operating payable items | 2,236,198,043.39 | 3,561,205,596.30 | |
Others | (90,777,906.78) | 18,300,754.85 | |
Net cash generated from operating activities | 1,041,664,059.17 | 1,229,373,283.57 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Supplementary information of cashflow statement (Continued)
(2) | Movement of cash | ||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Cash at the end of the period | 5,278,749,922.63 | 5,537,606,217.43 | |
Less: Cash at the beginning of the period | 4,733,512,222.35 | 5,405,113,257.99 | |
Net increase in cash | 545,237,700.28 | 132,492,959.44 |
(3) | Cash and cash equivalent | ||
30 June 2022 | 31 December 2021 | ||
Cash | |||
Inclue: Cash on hand | 8,343,211.00 | 4,642,730.62 | |
Bank deposits on demand | 5,270,406,711.63 | 4,728,869,491.73 | |
Ending banlance cash and cash equivalent | 5,278,749,922.63 | 4,733,512,222.35 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
58. Assets under restricted ownership or right of use
Book value | Reasons | |||
Cash and bank balances | 294,808,514.11 | Note 1 | ||
Notes receivable that have been endorsed and are outstanding at the balance sheet date | 11,080,505.71 | Note 2 | ||
305,889,019.82 |
Note 1: As at 30 June 2022, the the Group’s cash and bank balances with a book value of RMB 294,808,514.11 (December31, 2021: RMB 392,646,858.59) are mainly Bankers' acceptances deposits, concessionary reserve funds and other restrictedmonetary funds etc. (Note V.1)Note 2: As at 30 June 2022, the Group had notes receivable of RMB11,080,505.71, endorsed but not due (31 December2021: notes receivable of RMB 31,886,681.19). (Note V.2)
59. Government grants
Type | Amount | Items of financial statements | The amount recorded into profit or loss for the current period | |
Tax return | 18,301,369.35 | Other income | 18,301,369.35 | |
Stabilitation allowances | 6,891,637.35 | Other income/ Deferred income | 6,891,637.35 | |
Guangzhou headquarters enterprises leasing office buildings incentive subsidies in 2019 | 2,000,000.00 | Other income | 2,000,000.00 | |
Resettlement Compensation of No. 7 Zhongyu Road | 1,349,204.28 | Non-operating income /Deferred income | 1,349,204.28 | |
Government support fund | 1,211,065.88 | Other income | 1,211,065.88 | |
Construction fund of the modern supply chain system in the central circulation field in 2018 | 988,540.86 | Other income/ Deferred income | 988,540.86 | |
Government grants for COVID-19 | 955,282.64 | Other income | 955,282.64 | |
Enterprise Economic Reward | 308,624.96 | Other income /Deferred income | 308,624.96 | |
Guangzhou Logistics Standardization Pilot Project | 273,123.42 | Other income/ Deferred income | 273,123.42 | |
Unemployment insurance support for enterprises to stabilize job subsidies | 168,625.00 | Other income/ Deferred income | 168,625.00 | |
Foshan City reserve drug unit grants | 150,000.00 | Other income | 150,000.00 | |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
59 Government grants (Continued)
Type | Amount | Items of financial statements | The amount recorded into profit or loss for the current period | |
Guangzhou Finance Bureau modern service industry comprehensive pilot work of the central financial subsidies in 2013 | 150,000.00 | Other income/ Deferred income | 150,000.00 | |
Special funds for industrial transformation and upgrading in dualized integration projects | 139,907.58 | Other income /Deferred income | 139,907.58 | |
Logistics project construction support fund from Nanning economic development committee | 93,203.22 | Other income /Deferred income | 93,203.22 | |
Funds for the logistics information platform project of the pharmaceutical storage centre | 71,428.56 | Other income /Deferred income | 71,428.56 | |
Special Fund for the construction of Enterprise Research and development Institutions in Guangzhou | 44,705.94 | Other income /Deferred income | 44,705.94 | |
Shenyang Tiexi District Government Housing Purchase Subsidy | 40,561.32 | Other income /Deferred income | 40,561.32 | |
Industrialization application project of patented incubator for pharmaceutical cold chain | 12,499.98 | Other income/Finance costs/Administrative /Selling expenses /Deferred income | 12,499.98 | |
Medical intelligent supply chain e-commerce service platform technology project subsidy from Guangzhou liwan district | 9,861.24 | Other income /Deferred income | 9,861.24 | |
Guangzhou special subsidy for commerce and trade circulation industry | 8,559.36 | Other income /Deferred income | 8,559.36 | |
Other government grants | 189,644.65 | Other income/Finance costs/Administrative /Selling expenses /Deferred income | 189,644.65 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation
1. Establishment of subsidiary
30 June 2022 | For the six month ended 30 June 2022 | ||
Net assets | Net profit | ||
Sinopharm Holding Chongzuo Co., Ltd(“Sinopharm Chongzuo”) | - | - |
On June 10 2022, the Group and Guangxi Zhenghao Pharmaceutical Co., Ltd. established Sinopharm Chongzuo, with subscribedregistered capitals of RMB24,000,000 and RMB6,000,000 respectively. After the establishment, the Group holds 80% of its equity.On 18 July 2022, the payment has been completed.
2. Cancellation of subsidiaries
Subsidiary | Principal place of business | Place of establishment | Registered capital (RMB0’000) | Nature of business | Shareholding | Reasons | |
Indirect | Direct | ||||||
Sinopharm Guoda Taiyuan Tongxinli Pharmacy Co., Ltd. (“Taiyuan Tongxinli”) | Taiyuan | Taiyuan | 560.00 | Commercial | - | 100.00 | Cancellation |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities
1. Interests in in subsidiaries
(1) | The composition of the Group: |
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Sinopharm Holding Shenzhen Logistics Co., Ltd. (hereafter refered as“Sinopharm Shenzhen Logistics") | Shenzhen | Shenzhen | Services | 100.00% | - | Business combinations involving entities under common control | |
Sinopharm Holding Shenzhen Traditional & Herbal Medicine Co., Ltd. (hereafter referred as “Sinopharm Traditional & Herbal Medicine") | Shenzhen | Shenzhen | Commercial | 100.00% | - | Business combinations involving entities under common control | |
Sinopharm Shenzhen Jianmin | Shenzhen | Shenzhen | Commercial | 100.00% | - | Business combinations involving entities under common control | |
Sinopharm Yanfeng | Shenzhen | Shenzhen | Commercial | 51.00% | - | Business combinations involving entities not under common control | |
Sinopharm Accord Medical Devices(Shenzhen) Co., Ltd. (“Sinopharm Accord Devices ") | Shenzhen | Shenzhen | Commercial | 60.00% | - | Establishment | |
Sinopharm Guangzhou | Guangzhou | Guangzhou | Commercial | 100.00% | - | Business combinations involving entities under common control | |
Sinopharm Holding Guangzhou Medical Treatment Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 51.00% | Establishment | |
Sinopharm Holding Guangyi Health Management (Zhanjiang) Co., Ltd. | Zhanjiang | Zhanjiang | Commercial | - | 60.00% | Establishment | |
Sinopharm Holding Guangzhou Medical Technology Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 51.00% | Establishment | |
Sinopharm Holding Guangzhou Medical Supply Chain Service Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 51.00% | Establishment | |
Sinopharm Holding Heyuan Co., Ltd.(a) | Heyuan | Heyuan | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Sinopharm Holding Foshan Medical Consumables Supply Chain Co., Ltd. | Foshan | Foshan | Commercial | - | 70.00% | Establishment |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Sinopharm Holding Guangzhou Huadu Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Sinopharm Meizhou | Meizhou | Meizhou | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Huizhou(b) | Huizhou | Huizhou | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Zhaoqing(c) | Zhaoqing | Zhaoqing | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Jiangmen(d) | Jiangmen | Jiangmen | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Shaoguan | Shaoguan | Shaoguan | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Sinopharm Holding Zhongshan Co., Ltd. (hereafter referred as “Sinopharm Zhongshan")(e) | Zhongshan | Zhongshan | Service | - | 100.00% | Establishment | |
Sinopharm Holding Shantou Co., Ltd. (hereafter referred as “Sinopharm Shantou")(f) | Shantou | Shantou | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Holding Guangdong Hengxing Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guangdong Huixin Investment Co., Ltd. | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Holding Foshan Co., Ltd. (hereafter referred as “Sinopharm Foshan")(g) | Foshan | Foshan | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Holding Guangdong Logistics Co., Ltd. (hereafter referred as “Sinopharm Guangdong Logistics")(h) | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Holding Guangdong Yuexing Co., Ltd. (hereafter referred as “Sinopharm Yuexing”) | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Dongguan(i) | Dongguan | Dongguan | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Zhanjiang | Zhanjiang | Zhanjiang | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Nanhai Pharmaceutical Group | Foshan | Foshan | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Foshan Nanhai Uptodate & Special Medicines Co., Ltd.( hereafter referred as “Foshan Nanhai Uptodate & Special Medicines”)(j) | Foshan | Foshan | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Foshan Nanhai Medicine Co., Ltd. ( hereafter referred as “Foshan Nanhai Medicine”)(k) | Foshan | Foshan | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Holding Guangdong Special Medicines ( hereafter referred as “Sinopharm Guangdong Special Medicines”)(l) | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
South Pharma & Trade(m) | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Zhuhai(n) | Zhuhai | Zhuhai | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Maoming | Maoming | Maoming | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Guangzhou Medicine(o) | Guangzhou | Guangzhou | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Yangjiang Medicine | Yangjiang | Yangjiang | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Sinopharm Guangxi | Nanning | Nanning | Commercial | 100.00% | - | Business combinations involving entities under common control | |
Guangxi Logistic | Nanning | Nanning | Services | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Yulin | Yulin | Yulin | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Wuzhou | Wuzhou | Wuzhou | Commercial | - | 99.90% | Business combinations involving entities under common control | |
Sinopharm Baise | Baise | Baise | Commercial | - | 100.00% | Establishment | |
Sinopharm Guilin | Guilin | Guilin | Commercial | - | 100.00% | Establishment | |
Sinopharm Guigang | Guigang | Guigang | Commercial | - | 100.00% | Establishment | |
Sinopharm Beihai | Beihai | Beihai | Commercial | - | 100.00% | Establishment | |
Sinopharm Holding Medical Supply Chain Service (Guangxi) Co., Ltd. | Nanning | Nanning | Commercial | - | 30.60% | Establishment | |
Baiyi Pharmacy | Nanning | Nanning | Commercial | - | 51.00% | Establishment | |
Sinopharm Hezhou | Hezhou | Hezhou | Commercial | - | 100.00% | Establishment | |
Sinopharm Qinzhou | Qinzhou | Qinzhou | Commercial | - | 100.00% | Establishment | |
Sinopharm Hechi | Hechi | Hechi | Commercial | - | 100.00% | Establishment | |
Sinopharm Liuzhou | Liuzhou | Liuzhou | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Guigang Pharmacy | Guigang | Guigang | Commercial | - | 100.00% | Establishment | |
Sinopharm Chongzuo(p) | Chongzuo | Chongzuo | Commercial | - | 80.00% | Establishment | |
Guoda Drugstore | Shanghai | Shanghai | Commercial | 60.00% | - | Business combinations involving entities under common control | |
Shanghai Chain | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Shanghai Dongsheng | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Shanghai Dongxin | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Shanghai Shanghong | Shanghai | Shanghai | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Shanghai Guodong | Shanghai | Shanghai | Medical clinic | - | 100.00% | Business combinations involving entities under common control |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Guoda Yongsheng | Shanghai | Shanghai | Commercial | - | 55.00% | Establishment | |
Shanghai Guoda Haohai Pharmacy Co., Ltd. | Shanghai | Shanghai | Commercial | - | 51.00% | Establishment | |
Shanghai Ruijing | Shanghai | Shanghai | Commercial | - | 55.00% | Establishment | |
Yangzhou adesheng | Yangzhou | Yangzhou | Commercial | - | 93.68% | Business combinations involving entities under common control | |
Tianjin Guoda Pharmacy Chain Store Co., Ltd. | Tianjin | Tianjin | Commercial | - | 80.00% | Business combinations involving entities under common control | |
Beijing Guoda Pharmacy Chain Store Co., Ltd. | Beijing | Beijing | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guoda Zhejiang | Hangzhou | Hangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Zhejiang Dongshan | Hangzhou | Hangzhou | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Sinopharm Holding Guoda Pharmacy Guangdong Co., Ltd. | Shenzhen | Shenzhen | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guoda Guangzhou | Guangzhou | Guangzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Sinopharm Guoda Drug Store (Shenzhen) Chain Co., Ltd. | Shenzhen | Shenzhen | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guoda Taishan | Taishan | Taishan | Commercial | - | 70.00% | Business combinations involving entities under common control | |
Sinopharm Holdings Guozhi Pharmacy Chain (Heyuan) Co., Ltd. | Heyuan | Heyuan | Commercial | - | 70.00% | Establishment | |
Guoda Guangxi | Liuzhou | Liuzhou | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guangxi Consulting | Nanning | Nanning | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guoda Ningxia | Yinchuan | Yinchuan | Commercial | - | 70.00% | Business combinations involving entities under common control | |
Guoda Xinjiang | Urumqi | Urumqi | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Guoda Shenyang | Shenyang | Shenyang | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Sinopharm Guoda Drug Store Anshan Chain Co., Ltd. | Anshan | Anshan | Commercial | - | 51.00% | Establishment | |
Sinopharm holding Guoda pharmacy yongxingtang chain (Chaoyang) Co., Ltd. | Chaoyang | Chaoyang | Commercial | - | 51.00% | Establishment | |
Guoda pharmacy (Chaoyang) Ren'ai pharmacy Co., Ltd. | Chaoyang | Chaoyang | Commercial | - | 51.00% | Business combinations involving entities not under common control | |
Liaoning Guoda Pharmaceutical Co., Ltd. | Shenyang | Shenyang | Commercial | - | 100.00% | Establishment | |
Liaoning Health | Shenyang | Shenyang | Commercial | - | 100.00% | Establishment | |
Liaoning Guoda Pharmacy Chain Co., Ltd. | Dalian | Dalian | Commercial | - | 100.00% | Establishment | |
Liaoning Huludao | Huludao | Huludao | Commercial | - | 100.00% | Establishment |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Guoda Nanjing | Nanjing | Nanjing | Commercial | - | 60.00% | Business combinations involving entities under common control | |
Guoda Shandong | Linyi | Linyi | Commercial | - | 55.00% | Business combinations involving entities under common control | |
Guoda Rizhao | Rizhao | Rizhao | Commercial | - | 100.00% | Establishment | |
Guoda Pharmacy (Heze) Co., Ltd. (hereafter referred as “Guoda Heze”) (q) | Heze | Heze | Commercial | - | 51.00% | Establishment | |
Anhui Guoda Pharmacy Chain Store Co., Ltd. | Hefei | Hefei | Commercial | - | 60.00% | Business combinations involving entities under common control | |
Guoda Quanzhou | Quanzhou | Quanzhou | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Guoda Hunan | Hengyang | Hengyang | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Hunan Guoda Pharmacy Pharmaceutical Co., Ltd. (hereafter referred as “Hunan Medicine”) (r) | Hengyang | Hengyang | Commercial | - | 100.00% | Establishment | |
Shanxi Wanmin | Taiyuan | Taiyuan | Commercial | - | 85.00% | Business combinations involving entities under common control | |
Changzhi Wanmin | Changzhi | Changzhi | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Shanxi Tongfeng Pharmacy Logistics Co., Ltd. | Taiyuan | Taiyuan | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Wanmin Chain | Taiyuan | Taiyuan | Medical services | - | 100.00% | Business combinations involving entities under common control | |
Xiaoyi Wanmin | Xiaoyi | Xiaoyi | Commercial | - | 70.00% | Business combinations involving entities under common control | |
Jinzhong Yuci Guoda Wanmin Clinic Co., Ltd. | Jinzhong | Jinzhong | Commercial | - | 100.00% | Establishment | |
Huimin Lvliang | LvLiang | LvLiang | Commercial | - | 51.00% | Establishment | |
Liyang Guoda | Liyang | Liyang | Commercial | - | 80.00% | Business combinations involving entities under common control | |
Guoda Henan | Pingdingshan | Pingdingshan | Commercial | - | 60.00% | Business combinations involving entities under common control | |
Guoda Inner Mongolia | Hohhot | Hohhot | Commercial | - | 96.70% | Business combinations involving entities under common control | |
Guoda Hulun Buir | Hulun Buir | Hulun Buir | Commercial | - | 51.00% | Business combinations involving entities under common control | |
Guoda Ulanqab | Ulanqab | Ulanqab | Commercial | - | 60.00% | Establishment | |
Guoda Manchuria | Manchuria | Manchuria | Commercial | - | 51.00% | Establishment | |
Guoda Bayannur | Bayannur | Bayannur | Commercial | - | 80.00% | Establishment | |
Inner Mongolia Medicine | Hohhot | Hohhot | Commercial | - | 100.00% | Establishment | |
Hebei Lerentang | Shijiazhuang | Shijiazhuang | Commercial | - | 60.00% | Business combinations involving entities under common control | |
Sinopharm Lerentang Shijiazhuang Pharmaceutical Co., Ltd. | Shijiazhuang | Shijiazhuang | Commercial | - | 100.00% | Business combinations involving entities under common control |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Guoda Jiangmen(s) | Jiangmen | Jiangmen | Commercial | - | 65.00% | Business combinations involving entities under common control | |
Guoda Jianfeng (Jiangmen) Pharmaceutical Chain Co., Ltd. | Jiangmen | Jiangmen | Commercial | - | 51.00% | Establishment | |
Shanxi Yiyuan | Taiyuan | Taiyuan | Commercial | - | 80.00% | Business combinations involving entities under common control | |
Sinopharm Holding Guoda Shanxi Pharmaceutical Co., Ltd. | Taiyuan | Taiyuan | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
ForMe Medicines | Shanghai | Shanghai | Commercial | - | 97.00% | Business combinations involving entities under common control | |
ForMe Pharmacy Chain Store | Shanghai | Shanghai | Commercial | - | 99.76% | Business combinations involving entities under common control | |
Shanghai Yutaitang Chinese Traditional Medicine Clinic Co., Ltd. | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
ForMe Xuhui | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Beijing Golden Elephant | Beijing | Beijing | Commercial | - | 53.13% | Business combinations involving entities under common control | |
Sanhe Liyang Golden Elephant Pharmacy Co., Ltd. (t) | Langfang | Langfang | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Golden Elephant Guoxing | Beijing | Beijing | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Holding Guoda Pharmacy Zhengzhou Chain Store Co., Ltd | Zhengzhou | Zhengzhou | Commercial | - | 60.00% | Establishment | |
Fujian Guoda Pharmaceutical Co., Ltd. | Xiamen | Xiamen | Commercial | - | 100.00% | Establishment | |
Guoda Fujian chain | Xiamen | Xiamen | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Guoda Pu’er | Pu’er | Pu’er | Commercial | - | 60.00% | Business combinations involving entities not under common control | |
Shanghai Dingqun | Shanghai | Shanghai | services | - | 100.00% | Business combinations involving entities not under common control | |
Sinopharm Holding Tianhe Jilin Pharmaceutical Co., Ltd. | Changchun | Changchun | Commercial | - | 85.00% | Business combinations involving entities not under common control | |
Jilin Yihe Drug Store Co., Ltd. | Changchun | Changchun | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Jilin Donglong | Changchun | Changchun | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Yushu City Dinghe Medical Pharmaceutical Technology Co., Ltd. | Changchun | Changchun | Commercial | - | 51.00% | Business combinations involving entities not under common control | |
Yanji Xianghe | Yanji | Yanji | Commercial | - | 51.00% | Business combinations involving entities not under common control | |
Pudong Medicine | Shanghai | Shanghai | Commercial | - | 75.00% | Business combinations involving entities under common control |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) | ||||||
1. | Interests in subsidiaries (Continued) | ||||||
(1) | The composition of the Group (Continued): | ||||||
Subsidiaries | Principal place of business | Place of incorporation | Nature of business | Shareholding | Ways of acquisition | ||
Direct | Indirect | ||||||
Shanghai Yanghetang Pharmaceutical Chain Operation Co., Ltd. | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
Pudong Yanghetang | Shanghai | Shanghai | Commercial | - | 100.00% | Business combinations involving entities under common control | |
CDFY | Shenyang | Shenyang | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Shandong Chengda Fangyuan | Qingdao | Qingdao | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Liaoning Chengda Pharmacy Chains | Shenyang | Shenyang | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Chengda Fangyuan (Liaoning) New and Special Drugs Chain Co., Ltd. | Shenyang | Shenyang | Commercial | - | 80.00% | Business combinations involving entities not under common control | |
Liaoning Chengda Fangyuan Vocational and Technical Training School | Shenyang | Shenyang | services | - | 100.00% | Business combinations involving entities not under common control | |
Liaoning Cdfy Pharm | Shenyang | Shenyang | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Dalian Zhengda | Dalian | Dalian | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Hebei Chengda Fangyuan | Qinghuangdao | Qinghuangdao | Commercial | - | 100.00% | Business combinations involving entities not under common control | |
Liaoning Chengda Fangyuan Pharmaceutical Logistics Co., Ltd. | Shenyang | Shenyang | services | - | 100.00% | Business combinations involving entities not under common control | |
Liaoning Chengda Fangyuan Logistics Co., Ltd. | Shenyang | Shenyang | services | - | 100.00% | Business combinations involving entities not under common control | |
Jilin Chengda Fangyuan Pharmaceutical Co., Ltd. | Changchun | Changchun | Commercial | - | 80.00% | Business combinations involving entities not under common control | |
Jilin Chengda Fangyuan Pharmaceutical Chain Co., Ltd. | Changchun | Changchun | Commercial | - | 99.00% | Business combinations involving entities not under common control | |
Inner Mongolia Chengda Fangyuan Medicine Co., Ltd. | Chifeng | Chifeng | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Inner Mongolia Chengda Fangyuan Pharmaceutical Chain Co., Ltd. | Chifeng | Chifeng | Commercial | - | 99.00% | Business combinations involving entities not under common control | |
Disheng Medicine | Xishuangbanna | Xishuangbanna | Commercial | - | 70.00% | Business combinations involving entities not under common control | |
Disheng Pharmaceutical Chain | Xishuangbanna | Xishuangbanna | Commercial | - | 70.00% | Business combinations involving entities not under common control |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) |
1. | Interests in subsidiaries (Continued) |
(1) | The composition of the Group (Continued): |
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 27 July 2022, the registered capital of Guoxin Heyuan was changed from RMB13,400,000 to RMB22,000,000, afterwhich the Group contributed RMB15,400,000 to the registered capital and Heyuan Mairui Trading Company Limitedcontributed RMB6,600,000 to the registered capital, which was completed on 27 July 2022. The Group's shareholding ratioremains unchanged.
b. On 25 April 2022, the registered capital of Sinopharm Huizhou was changed from the original RMB 38 million to RMB 50million, after which, the registered capital subscibed by the Group was RMB 50 million. As of 30 June 2022, the payment hasbeen completed.
c. On 31 March 2022, the registered capital of Sinopharm Zhaoqing was changed from RMB 40 million to RMB 80 million, afterwhich, registered capital subscibed by the Group was RMB 80 million. As of 30 June 2022, the payment has beencompleted.
d. On 28 March 2022, the registered capital of Sinopharm Jiangmen was changed from RMB 60 million to RMB 80 million, afterwhich, the registered capital subscribed by the Group was RMB 80 million. As of 30 June 2022, the payment has beencompleted.
e. On 1 April 2022, the registered capital of Sinopharm Zhongshan was changed from RMB 30 million to RMB 50 million, afterwhich, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has beencompleted.
f. On 28 March 2022, the registered capital of Sinopharm Shantou was changed from RMB 21 million to RMB 50 million, afterwhich, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has beencompleted.
g. On 1 April 2022, the registered capital of Sinopharm Foshan was changed from RMB 41 million to RMB 50 million, after
which, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has beencompleted.
h. On 11 April 2022, the registered capital of Sinopharm Guangdong Logistics was changed from the RMB 13 million to RMB20 million, after which, the registered capital subscribed by the Group was RMB 20 million. As of 30 June 2022, the paymenthas been completed.
i. On 17 May 2022, the registered capital of Sinopharm Dongguan was changed from the RMB 73 million to RMB 100 million,
after which, the registered capital subscribed by the Group was RMB 100 million. As of 30 June 2022, the payment has beencompleted.
j. On 27 April 2022, the registered capital of Foshan Nanhai Uptodate & Special Medicines was changed from the RMB 40million to RMB 70 million, after which, the registered capital subscribed by the Group was RMB 70 million. As of 30 June2022, the payment has been completed.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) |
1. | Interests in subsidiaries (Continued) |
(1) | The composition of the Group (Continued): |
k. On 27 April 2022, the registered capital of Foshan Nanhai Medicine was changed from the RMB 40 million to RMB 70 million,
after which, the registered capital subscribed by the Group was RMB 70 million. As of 30 June 2022, the payment has beencompleted.
l. On 13 April 2022, the registered capital of Sinopharm Guangdong Special Medicines was changed from the RMB 50 millionto RMB 80 million, after which, the registered capital subscribed by the Group was RMB 80 million. As of 30 June 2022, thepayment has been completed.
m. On 8 April 2022, the registered capital of South Pharma & Trade was changed from the RMB 30 million to RMB 100 million,after which, the registered capital subscribed by the Group was RMB 100 million. As of 30 June 2022, the payment has beencompleted.
n. On 19 April 2022, the registered capital of Sinopharm Zhuhai was changed from the RMB 30 million to RMB 50 million, afterwhich, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has beencompleted.
o. On 29 June 2022, the registered capital of Guangzhou Medicine was changed from the RMB 2 million to RMB 8 million,after which, the registered capital subscribed by the Group was RMB 8 million. As of 30 June 2022, the payment has beencompleted.
p. On 10 June 2022, the Group and Guangxi Zhengzheng Pharmaceutical Co., Ltd. established Sinopharm Chongzuo, withsubscribed registered capitals of RMB 24 million and RMB 6 million respectively. After the establishment, the Group holds 80%of its equity. On 18 July 2022, the payment has been completed.
q. On 10 September 2021, the Group and Shandong Luzhong Investment Co., Ltd. (“Shandong luzhong”) accumulativelyinvested RMB 5.1 million and RMB 4.9 million to set up Guoda Heze respectively. After the establishment, the Group held 51%of its equity interest in the company. As of 30 June 2022, the payment has been completed.
r. On 31 December 2021, the Group contributed capital for the establishment of Hunan Medicine with a subscribed registered
capital of RMB2,800,000. As of June 30, 2022, the capital contribution has been completed
s. On 14 January 2022, Sinopharm holding Guoda pharmacy Jiangmen Chain Co., Ltd. was renamed as Sinopharm UnitedGuoda (Jiangmen) Co., Ltd.
t. On 6 July 2022, Sanhe Liyang Golden Elephant Pharmacy Co., Ltd. has completed the industrial and commercialcancellation, and the cancellation announcement period was from May 16, 2022 to June 30, 2022.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) |
1. | Interests in subsidiaries (Continued) |
(2)Important non-wholly owned subsidiary
Subsidiaries | Minority shareholding ratio | Profit or loss attributable to minority shareholders in the current period | Dispatch of dividends to minority shareholders in the current period | Minority shareholders' equity |
Guoda Pharmacy | 40.00% | 38,685,894.70 | - | 2,002,600,094.57 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII | Interests in other entities (Continued) |
1. | Interests in subsidiaries (Continued) |
(3) Key financial information of important non-wholly owned subsidiaries
Subsidiaries | 30 June 2022 | 31 December 2021 | ||||||||||
Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
Guoda Pharmacy | 9,413,155,933.96 | 6,932,043,431.25 | 16,345,199,365.21 | 9,086,807,541.64 | 1,465,637,180.61 | 10,552,444,722.25 | 9,093,088,349.46 | 6,890,746,889.09 | 15,983,835,238.55 | 8,912,034,922.32 | 1,389,487,840.12 | 10,301,522,762.44 |
Subsidiaries | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||||||
Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
Guoda Pharmacy | 11,149,016,465.15 | 141,089,231.46 | 141,089,231.46 | 629,652,996.63 | 10,841,326,194.08 | 263,262,365.37 | 263,262,365.37 | 786,526,215.87 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates
Principal place of business | Place of incorporation | Nature of business | Shareholding(%) | Accounting | ||
Direct | Indirect | |||||
Associates | ||||||
Main Luck Pharmaceutical | Shenzhen | Shenzhen | Manufacturing | 35.19% | - | Equity |
Zhijun Suzhou | Suzhou | Suzhou | Manufacturing | 33.00% | - | Equity |
Sinopharm Zhijun | Shenzhen | Shenzhen | Manufacturing | 49.00% | - | Equity |
Zhijun Trade | Shenzhen | Shenzhen | Commercial | 49.00% | - | Equity |
Zhijun Pingshan | Shenzhen | Shenzhen | Manufacturing | 49.00% | - | Equity |
Sinopharm Shyndec(a) | Shanghai | Shanghai | Business service industry | 16.28% | - | Equity |
Shanghai Beiyi | Shanghai | Shanghai | Commercial | - | 26.00% | Equity |
Shanghai Liyi | Shanghai | Shanghai | Commercial | - | 35.00% | Equity |
Guangdong Jienuo | Guangzhou | Guangzhou | Commercial | - | 29.00% | Equity |
Dongyuan accord | Heyuan | Heyuan | Commercial | - | 45.00% | Equity |
Shanghai Renbei | Shanghai | Shanghai | Commercial | - | 30.00% | Equity |
Guangdong Jianhui(b) | Zhanjiang | Zhanjiang | Commercial | - | 10.00% | Equity |
Jialong Hainan | Chengmai | Chengmai | Commercial | - | 25.00% | Equity |
(a) Shyndec Pharma set up a board of directors that was responsible for the shareholders' meeting, with a total of ninemembers, among which, one was appointed by the Group. Each director has one vote on the board, taking 11.11% of thevoting rights. Except for special resolutions adopted by half of the board of directors. The Group has significant influenceover Shyndec Pharma.
(b) According to the Articles of Association, the board of directors of Guangdong Jianhui was composed of five directors,one of whom was appointed by the Group, accounting for 20.00% of voting rights. The voting right of resolutions of theboard of directors is one vote for one person. Except for some special matters, other resolutions of the board of directors areapproved by more than two-thirds of all directors. Therefore, the Group has significant influence over Guangdong Jianhui.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
(a)t
2. Interests in associates (Continued)
Main financial information of important associates:
30 June 2022/ For the six months ended 30 June 2022 | 1 January 2021/ For the six months ended 30 June 2021 | |||||
Sinopharm Shyndec | Zhijun Medicine | Main Luck Pharmaceutical | Sinopharm Shyndec | Zhijun Medicine | Main Luck Pharmaceutical | |
Current assets | 11,143,064,232.15 | 1,449,663,154.08 | 949,215,595.83 | 10,886,446,261.52 | 1,435,210,018.93 | 1,084,994,896.84 |
Non-current assets | 7,957,423,245.78 | 257,044,526.31 | 189,445,706.55 | 8,183,515,130.93 | 261,609,950.81 | 161,776,731.97 |
Total assets | 19,100,487,477.93 | 1,706,707,680.39 | 1,138,661,302.38 | 19,069,961,392.45 | 1,696,819,969.74 | 1,246,771,628.81 |
Current liabilities | 5,560,462,826.88 | 626,917,615.54 | 268,401,326.35 | 6,842,570,937.46 | 671,896,297.56 | 264,584,338.32 |
Non-current liabilities | 3,027,055,232.60 | 9,982,767.18 | 14,610,760.83 | 1,857,531,965.46 | 11,570,731.00 | 14,610,760.83 |
Total liabilities | 8,587,518,059.48 | 636,900,382.72 | 283,012,087.18 | 8,700,102,902.92 | 683,467,028.56 | 279,195,099.15 |
Non-controlling interests | 1,797,915,657.60 | - | - | 1,777,094,904.67 | - | - |
Shareholders’ equity attributable to shareholders of the parent | 8,715,053,760.85 | 1,069,807,297.67 | 855,649,215.20 | 8,592,763,584.86 | 1,013,352,941.18 | 967,576,529.66 |
Portion of net assets calculated by shareholding ratio | 1,418,328,612.65 | 524,205,575.84 | 301,102,958.84 | 1,398,901,911.62 | 496,542,941.16 | 340,490,180.80 |
Carrying value of equity investment in joint ventures | 1,418,328,612.65 | 524,205,575.84 | 301,102,958.84 | 1,398,901,911.62 | 496,542,941.16 | 340,490,180.800 |
Operating revenue | 6,387,024,045.16 | 696,481,359.17 | 473,188,187.20 | 7,632,136,688.61 | 746,410,222.02 | 476,292,028.69 |
Net profit | 330,017,532.36 | 56,454,356.49 | 88,072,685.53 | 541,049,057.92 | 57,257,762.64 | 98,308,111.37 |
Other comprehensive income | (23,176.75) | - | - | 398,371.61 | - | - |
Total comprehensive income | 329,994,355.61 | 56,454,356.49 | 88,072,685.53 | 541,447,429.53 | 57,257,762.64 | 98,308,111.37 |
Dividends received from joint ventures this period | - | - | 70,380,000.00 | 16,714,220.20 | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 period | Unrecognized 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 anddesignated the local government as the bankruptcy administrator. At present, it is in the stage of creditor's right declaration.
30 June 2022/ For the six months ended 30 June 2022 | 1 January 2021/ For the six months ended 30 June 2021 | |
associated enterprises: | ||
Carrying value of equity investment | 227,987,270.91 | 223,897,513.16 |
Net profit | 4,089,757.75 | 25,668,595.57 |
Total comprehensive income | 4,089,757.75 | 25,668,595.57 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments
1. Classification of financial instruments
30 June 2022:
Financial assets | Financial assets at fair value through profit or loss | Financial assets at amortised cost | Financial assets at fair value through other comprehensive income | Total | |
Mandatorily required | Mandatorily required | Designated | |||
Cash and bank balances | - | 5,573,558,436.74 | - | - | 5,573,558,436.74 |
Notes receivable | - | 634,263,913.50 | - | - | 634,263,913.50 |
Accounts receivable | - | 19,066,131,973.48 | - | - | 19,066,131,973.48 |
Receivable financing | - | - | 632,101,362.15 | - | 632,101,362.15 |
Other receivables | - | 624,860,452.74 | - | - | 624,860,452.74 |
Other non-current financial assets | 135,974,908.51 | - | - | - | 135,974,908.51 |
Other equity instrument investment | - | - | - | 62,488,312.99 | 62,488,312.99 |
135,974,908.51 | 25,898,814,776.46 | 632,101,362.15 | 62,488,312.99 | 26,729,379,360.11 |
Financial liabilities
Financial liabilities | Financial liabilities at amortised cost | |
Short-term borrowings | 3,099,020,701.18 | |
Notes payable | 6,390,557,494.64 | |
Accounts payable | 11,329,463,911.07 | |
Other payables | 2,248,815,946.18 | |
Non-current liabilities due within 1 year | 858,086,989.55 | |
Lease liabilities | 1,391,474,612.88 | |
Long-term borrowings | 62,633,794.44 | |
Other non-current liabilities | 71,400,000.00 | |
25,451,453,449.94 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 assets | Financial assets at fair value through profit or loss | Financial assets at amortised cost | Financial assets at fair value through other comprehensive income | Total | |
Mandatorily required | Mandatorily required | Designated | |||
Cash and bank balances | - | 5,126,159,080.94 | - | - | 5,126,159,080.94 |
Notes receivable | - | 680,196,380.57 | - | - | 680,196,380.57 |
Accounts receivable | - | 15,964,603,345.91 | - | - | 15,964,603,345.91 |
Receivable financing | - | - | 1,027,226,940.21 | - | 1,027,226,940.21 |
Other receivables | - | 718,089,129.10 | - | - | 718,089,129.10 |
Other non-current financial assets | 135,974,908.51 | - | - | - | 135,974,908.51 |
Other equity instrument investment | - | - | - | 62,488,312.99 | 62,488,312.99 |
135,974,908.51 | 22,489,047,936.52 | 1,027,226,940.21 | 62,488,312.99 | 23,714,738,098.23 |
Financial liabilities
Financial liabilities | Financial liabilities at amortised cost | |
Short-term borrowings | 1,930,467,146.38 | |
Notes payable | 7,660,216,823.68 | |
Accounts payable | 9,057,718,968.14 | |
Other payables | 1,714,746,986.46 | |
Non-current liabilities due within 1 year | 848,328,648.14 | |
Lease liabilities | 1,375,427,877.28 | |
Long-term borrowings | 71,637,173.89 | |
Other non-current liabilities | 71,400,000.00 | |
22,729,943,623.97 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022, the carrying value of the commercial acceptances endorsed by the Groupto the suppliers for settlement of accounts payable was RMB0.00 (31 December 2021:
RMB0.00); the carrying value of the banker's acceptances endorsed to the suppliers forsettlement of accounts payable was RMB11,080,505.71 (December 31, 2021:
RMB31,886,681.19). As at 30 June 2022, the carrying value of the Group's commercialacceptances that have been discounted to banks was RMB0.00 (31 December 2021 : Nil). TheGroup considers that it retains substantially all of its risks and rewards, including the risk ofdefault associated with it, and therefore continues to recognize its and its settled accountspayable related to it in full. After the transfer, the Group no longer retains the right to use it,including the right to sell, assign or pledge it to other third parties.
As at 30 June 2022, the carrying value of the Group's accounts payable settled by it totaledRMB11,080,505.71 (31 December 2021: RMB31,886,681.19).
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022, the Group had endorsed bank acceptance bills (the "Endorsed Bills") witha carrying amount of RMB900,427,092.54 (31 December 2021: RMB1,222,202,123.45) tocertain of its suppliers to settle accounts payable due to such suppliers. As at 30 June 2022,the Group had discounted bank acceptance bills (the "Discounted Bills") with a carrying amountof RMB1,383,829,318.51 (31 December 2021: RMB984,152,993.81) 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 2022, 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. Endorsements occurred in a roughly balancedmanner during the year.
During 2022, the Group has not recognised any gain or loss on the date of transfer of thereceivable financing. No gains or losses were recognised from the Continuing Involvement,both during the year or cumulatively.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
(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 risk
At 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 assetsIn assessing whether a financial asset is credit-impaired, the Group considers both quantitativeand qualitative information in line with internal credit risk management. The Group assesseswhether a financial asset is credit-impaired by considering the following factors:
(1) Significant financial difficulty of the borrower or issuer;
(2) A breach of contract such as a default or past due event;
(3) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’sfinancial difficulty, having granted to the borrower concession(s) that the lender(s) would nototherwise consider;
(4) It is becoming probable that the borrower will enter bankruptcy or other financialreorganisation;
(5) The disappearance of an active market for security because of financial difficulties; and
(6) Financial assets purchased or sourced at large discounts indicating that credit losses have
occurred.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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.
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.
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | ||||||||||
Within 1 year | 1 to 2 years | 2 to 5 years | Above 5 years | Total | ||||||
Short-term borrowings | 3,139,880,724.05 | - | - | - | 3,139,880,724.05 | |||||
Long-term borrowings | - | 33,096,683.33 | 30,974,783.33 | - | 64,071,466.67 | |||||
Notes payable | 6,390,557,494.64 | - | - | - | 6,390,557,494.64 | |||||
Accounts payable | 11,329,463,911.07 | - | - | - | 11,329,463,911.07 | |||||
Other payables | 2,248,815,946.18 | - | - | - | 2,248,815,946.18 | |||||
Non-current liabilities due within 1 year | 938,401,136.67 | - | - | - | 938,401,136.67 | |||||
Lease liabilities | - | 661,584,530.34 | 696,510,155.34 | 136,301,920.54 | 1,494,396,606.22 | |||||
Other non-current liabilities | - | 71,400,000.00 | - | - | 71,400,000.00 | |||||
24,047,119,212.61 | 766,081,213.67 | 727,484,938.67 | 136,301,920.54 | 25,676,987,285.49 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2021 | ||||||||||
Within 1 year | 1 to 2 years | 2 to 5 years | Above 5 years | Total | ||||||
Short-term borrowings | 1,947,231,588.48 | - | - | - | 1,947,231,588.48 | |||||
Long-term borrowings | - | 34,379,752.78 | 40,881,388.89 | - | 75,261,141.67 | |||||
Notes payable | 7,660,216,823.68 | - | - | - | 7,660,216,823.68 | |||||
Accounts payable | 9,057,718,968.14 | - | - | - | 9,057,718,968.14 | |||||
Other payables | 1,714,746,986.46 | - | - | - | 1,714,746,986.46 | |||||
Non-current liabilities due within 1 year | 984,474,954.40 | - | - | - | 984,474,954.40 | |||||
Lease liabilities | - | 671,938,054.49 | 727,760,496.55 | 19,832,053.23 | 1,419,530,604.27 | |||||
Other non-current liabilities | - | 71,400,000.00 | - | - | 71,400,000.00 | |||||
21,364,389,321.16 | 777,717,807.27 | 768,641,885.44 | 19,832,053.23 | 22,930,581,067.10 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022, 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 RMB 58,438.36 (31 December 2021: 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 RMB118,500.00).
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 2022 and 2021, theGroup had not entered into any interest rate swap agreements.
For the year ended 30 June 2022, the Group has long-term interest-bearing borrowings withfloating interest rates amounting to RMB62,600,000.00 (31 December 2021: RMB71,600,000.00).
Currency risk
The Group’s major operational activities are carried out in Mainland China and a majority of thetransactions are denominated in RMB. The Group is exposed to foreign exchange risk arising fromthe recognised assets and liabilities as well as future transactions (denominated in foreigncurrencies, primarily with respect to United States dollars and Hong Kong dollars). The Group’sfinance department at its headquarters is responsible for monitoring the amounts of assets andliabilities, and transactions denominated in foreign currencies aim at mitigating the potentialforeign exchange risk to a large extent.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | |
Gearing ratio | 59.69% | 57.88% |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX.Disclosure of fair value
1. Assets and liabilities at fair value
30 June 2022:
Input applied in the measurement of fair value | ||||||
Quoted prices in active markets | Significant observable inputs | Significant unobservable inputs | Total | |||
Level 1 | Level 2 | Level 3 | ||||
Continuous measurement of fair value | ||||||
Receivable financing | - | 632,101,362.15 | - | 632,101,362.15 | ||
Other investment in equity instruments | - | 62,488,312.99 | - | 62,488,312.99 | ||
Other non-current financial assets | - | - | 135,974,908.51 | 135,974,908.51 | ||
- | 694,589,675.14 | 135,974,908.51 | 830,564,583.65 |
31 December 2021
Input applied in the measurement of fair value | ||||||
Quoted prices in active markets | Significant observable inputs | Significant unobservable inputs | Total | |||
Level 1 | Level 2 | Level 3 | ||||
Continuous measurement of fair value | ||||||
Receivable financing | - | 1,027,226,940.21 | - | 1,027,226,940.21 | ||
Other investment in equity instruments | - | 62,488,312.99 | - | 62,488,312.99 | ||
Other non-current financial assets | - | - | 135,974,908.51 | 135,974,908.51 | ||
- | 1,089,715,253.20 | 135,974,908.51 | 1,225,690,161.71 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX.Disclosure of fair value(Continued)
2. Assets and liabilities disclosed at fair value
30 June 2022:
Input applied in the measurement of fair value | |||||
Quoted prices in active markets | Significant observable inputs | Significant unobservable inputs | Total | ||
Level 1 | Level 2 | Level 3 | |||
Long-term borrowings | - | 62,633,794.44 | - | 62,633,794.44 |
31 December 2021:
Input applied in the measurement of fair value | |||||
Quoted prices in active markets | Significant observable inputs | Significant unobservable inputs | Total | ||
Level 1 | Level 2 | Level 3 | |||
Long-term borrowings | - | 71,637,173.89 | - | 71,637,173.89 |
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 amount | Fair value | ||||
30 June 2022 | 31 December 2021 | 30 June 2022 | 31 December 2021 | ||
Financial liabilities | - | - | - | - | |
Long-term borrowings | 62,633,794.44 | 71,637,173.89 | 62,633,794.44 | 71,637,173.89 |
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.
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX.Disclosure of fair value(Continued)
3. Estimation of fair value(Continued)
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 2022, 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.
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 2022, 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 2022 and 31 December 2021, 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 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions
1. Parent
Parent’s name | Registered address | Nature of business | Share capital | Proportion of ownership interest in the Company | Proportion of voting power in the Company |
Sinopharm Group Co., Ltd. | Shanghai | Industrial investment holding, trustee of a pharmaceutical enterprise, assets reorganization, distribution and retail of medicines and pharmaceutical products, etc. | 3,120,656,191.00 | 56.06% | 56.06% |
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII 1 for details of subsidiaries.
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 name | Related party relationships |
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. | Controlled by CNPGC |
China National of Traditional & Herbal Medicine Co., Ltd. | Controlled by CNPGC |
Huayi Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd. | Controlled by CNPGC |
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Guangdong Global Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd. | Controlled by CNPGC |
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd. | Controlled by CNPGC |
Foshan Winteam Pharmaceutical Group Ltd. | Controlled by CNPGC |
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Chengdu Rongsheng Pharmacy Co., Ltd. | Controlled by CNPGC |
Lanzhou Biotechnology Development Co., Ltd. | Controlled by CNPGC |
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. | Controlled by CNPGC |
Shanghai Shangsheng Biological Products Co., Ltd. | Controlled by CNPGC |
Shantou Jinshi Powder Injection Co., Ltd. | Controlled by CNPGC |
Chengdu Institute of Biological Products Co., Ltd. | Controlled by CNPGC |
China National Pharmaceutical Industry Co., Ltd. | Controlled by CNPGC |
Sinopharm Weiqida Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Xinjiang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. | Controlled by CNPGC |
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. | Controlled by CNPGC |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm ChuanKang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Group Financial Co., Ltd. | Controlled by CNPGC |
China National Pharmaceutical Foreign Trade Corporation. | Controlled by CNPGC |
Sinopharm Foreign Trade (Beijing) Co., Ltd. | Controlled by CNPGC |
Sinopharm Group Yibin Pharmaceuticals Co., Ltd. | Controlled by CNPGC |
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. | Controlled by CNPGC |
Guangdong Yifang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Yixin Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm ChangChun A-THINK Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Sanyi Medicine (Wuhu) Co., Ltd. | Controlled by CNPGC |
Sinopharm Wuhan Blood Products Co., Ltd. | Controlled by CNPGC |
Wuhan Zhongsheng Yujin Biomedical Co., Ltd. | Controlled by CNPGC |
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd. | Controlled by CNPGC |
Fujian Tianjiang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Chongqing Tianjiang Yifang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd. | Controlled by CNPGC |
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Hubei Sinopharm Zhonglian Medicine Co., Ltd. | Controlled by CNPGC |
Taiji Group Co., Ltd. | Controlled by CNPGC |
Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. | Controlled by CNPGC |
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Chongqing Tongjunge Co., Ltd. | Controlled by CNPGC |
Taiji Group Chongqing No.2 Traditional Chinese Medicine Factory Co., Ltd. | Controlled by CNPGC |
Chongqing Taiji Group TongJunGe Pharmaceutical Co. Ltd. | Controlled by CNPGC |
Sichuan Taiji Pharmacy Chain Co., Ltd. | Controlled by CNPGC |
Southwest Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Gansu Tianshui Zhangjiachuan Donkey-hide Gelatin Factory | Controlled by CNPGC |
Zhejiang Dongfang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Taiji Group Sichuan Tiancheng Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Sinopharm Shanghai Plasma-derived Biotherapies Co., Ltd. | Controlled by CNPGC |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Cohealta(Beijing) Co., Ltd. | Controlled by CNPGC |
Changchun Lnstitute of Biological Products Co., Ltd. | Controlled by CNPGC |
Chongqing Taiji Industry (Group) Co., Ltd. | Controlled by CNPGC |
Zhejiang Yinuo Pharmaceutical Co., Ltd. | Controlled by CNPGC |
Chongqing Prepared Herbal Medicine Factory Co., Ltd. | Controlled by CNPGC |
Guangxi Fangning Pharmaceutical Co., Ltd. | Controlled by CNPGC |
China National Pharmaceutical Group Shanxi Rfl Pharmaceutical Co., Ltd. | Associate of CNPGC |
Changchun Changsheng Gene Pharmaceutical Co., Ltd. | Associate of CNPGC |
China Otsuka Pharmaceutical Co., Ltd. | Associate of CNPGC |
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. | Associate of CNPGC |
Sinopharm Holding Shanxi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Linfen 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 Group Southwest Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Tianjin Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Tianjin North Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shenyang Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Dalian Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Dalian Special Drug Store Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jinzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anshan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Liaoning Medical Equipment Distribution Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Shaanxi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shaanxi Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shaanxi Medical Consumables Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hubei Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Wuhan Guoda Pharmacy Chain Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Group Hubei Yukang Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hubei Hongyuan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanxi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Shanxi Linfen Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanxi Jincheng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Medicine Logistic Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hunan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medicine Holding Chenzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changde Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | Controlled by Sinopharm Group |
China National Medicines Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Guorui Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Jiankun (Beijing) Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Beijing Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Beijing Huahong co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Zhejiang Co., Ltd. | Controlled by Sinopharm Group |
Shanghai Tongyu Information Technology Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Sub Marketing Center Co., Ltd. | Controlled by Sinopharm Group |
Shanghai Shengxin Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Henan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jiaozuo Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shangqiu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Pingdingshan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anhui Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Wuhu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Fuzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shandong Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Lunan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Linyi Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jinan Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Holding Dezhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Liaocheng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding (Shandong) Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Yunnan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Pu'er Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Honghe Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Chuxiong Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Kunming Co., Ltd. | Controlled by Sinopharm Group |
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hainan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hainan Hongyi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Gansu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Fujian Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Putian Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Longyan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Zhangzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Ningde Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Quanzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xiamen Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Nanping Newforce Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Ningxia Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jiangxi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Xinyu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Guizhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anshun Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Tongren Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Zunyi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Qianxinan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Guizhou Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Inner Mongolia Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Tongliao Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Baotou Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Holding Ulanqab Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Bayannur Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Chifeng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hulun Buir Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Ordos Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm In Inner Mongolia Medical Instrument Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Xinjiang Baitong Property Service Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinte Yili Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jilin Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Professional Pharmacy Songyuan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Wenzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Chongqing Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jiangsu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Yangzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Yangzhou Biological Products Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Taizhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Nantong Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Wuxi Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xuzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Yancheng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Heilongjiang Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Medicine Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Chengde Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Shijiazhuang Traditional Chinese Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Hengshui Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Handan Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Tangshan Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Cangzhou Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Baoding Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Xintai Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Shijiazhuang Medical Management Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Qinghai Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. | Controlled by Sinopharm Group |
Shanghai Merro Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Chongqing Health Management Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanghai Biomedicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Sichuan Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Chengdu Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Dalian Hecheng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changsha Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. | Controlled by Sinopharm Group |
China National Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Guizhou (Zunyi) Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm (Tianjin) Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
China Medical Equipment Shandong Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Guangdong Medicine Device Co., Ltd. | Controlled by Sinopharm Group |
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Guangdong Medical Examination Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Shenzhen Medicine Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Instruments (Jiangmen) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medical Instrument (Foshan) Co., Ltd. | Controlled by Sinopharm Group |
China National Medical Device (Hui Zhou) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Liaoning Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Shanxi Medical Devices Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Guangxi Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Shanghai Medicine Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medical Instrument (Hainan) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Guangxi Medical Technology Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Anhui Pharmaceutical Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Device (Guangdong) Medical Technology Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anhui Huaning Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd. | Controlled by Sinopharm Group |
Shanghai International Pharmaceutical Trade Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Guizhou Yitong Medicine Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Kangfu (Tengzhou) Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Shanghai Guoda Shengxin Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Baise Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Tangshan Pharmacy Chain Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Baoding Trading Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Professional Pharmacy Chain (Hainan) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Benxi Co., Ltd. | Controlled by Sinopharm Group |
Shanghai Guodaai Pharmacy Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Lerentang Zhangjiakou Pharmaceutical Trading Co., Ltd. | Controlled by Sinopharm Group |
Shaanxi National Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Anhui Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Equipment Supply Chain Service (Liaoning) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Hebei Medicine Co., Ltd. | Controlled by Sinopharm Group |
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Guang'an Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm JI LIN MEDICAL Device Co., Ltd. | Controlled by Sinopharm Group |
Qinghai Guoyao Holding Pharmaceutical Chain Co., Ltd. | Controlled by Sinopharm Group |
Qinghai Guoyao Holding Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medicine Holding Yantai Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Henan MEDICAL Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Lu'an Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm(Zhaoqing) Medical Equipment Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Guizhou Medical Supply Chain Service Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Chaoyang Co., Ltd. | Controlled by Sinopharm Group |
Korla Medicine Co., Ltd., Xinjiang Pharmaceutical Group | Controlled by Sinopharm Group |
Sinopharm Medicine Holding Jining Co., Ltd. | Controlled by Sinopharm Group |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Sinopharm Holding Weifang Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Hubei Medical Instrument Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Jiangxi MEDICAL Instrument Supply CHAIN Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Group Ganzhou Medical Trade Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Haoyang Mianyang Pharmaceutical Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Wuhan Hengfeng Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Chongqing Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holding Jilin Medical Device Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Medicine Holding Suzhou Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Huai'an Co., Ltd. | Controlled by Sinopharm Group |
Sinopharm Holdings Chuangke Medical Technology (Shenzhen) Co., Ltd. | Associate of Sinopharm Group |
Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd. | Associate of Sinopharm Group |
Yichang Humanwell Pharmaceutical Co., Ltd. | Associate of Sinopharm Group |
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | Associate of Sinopharm Group |
Shanghai Guoda Lingyun Pharmacy Co., Ltd. | Associate of Sinopharm Group |
Sinopharm Health Industry (Shanghai) Co., Ltd. | Associate of Sinopharm Group |
Sinopharm Holding (China) Financing Lease Co., Ltd. | Associate of Sinopharm Group |
Sinopharm Health Online Co., Ltd. | Associate of Sinopharm Group |
Sinopharm Group Anhui Great Health Industry Co., Ltd. | Associate of Sinopharm Group |
Gongqingcheng Qixin | A partnership in which an associate of Sinopharm Group acts as executive partner |
Shenzhen Wanwei Medicine Trading Co., Ltd. | Subsidiary of Main Luck Pharmaceutical |
Chongqing Yaoyou Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Sichuan Hexin Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Guilin Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Shanghai Chaohui Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Tibet Yaoyou Medicines Co., Ltd. | Subsidiary of Fosun Pharm |
Shenyang Hongqi Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Shanghai Transfusion Technology Co., Ltd. | Subsidiary of Fosun Pharm |
Suzhou Laishi Transfusion Equipment Co., Ltd. | Subsidiary of Fosun Pharm |
Shanghai Henlius Biopharmaceuticals Co., Ltd. | Subsidiary of Fosun Pharm |
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. | Subsidiary of Fosun Pharm |
Chongqing Haisiman Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Jinzhou Avanc Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Dalian Aleph Biomedical Co., Ltd. | Subsidiary of Fosun Pharm |
Hunan Dongting Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Chancheng Central Hospital of Foshan City | Subsidiary of Fosun Pharm |
Foshan Chanyixing Medicine Development Co., Ltd. | Subsidiary of Fosun Pharm |
Foshan Chancheng Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Jiangsu Huanghe Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Suzhou Erye Pharmaceutical Limited Company | Subsidiary of Fosun Pharm |
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. | Subsidiary of Fosun Pharm |
Shenzhen Chindex Medical Beauty Clinic | Subsidiary of Fosun Pharm |
Shenzhen Hengsheng Hospital | Subsidiary of Fosun Pharm |
Jinzhou Avanc Medicine Co., Ltd. | Subsidiary of Fosun Pharm |
Jiangxi Erye Medicine Marketing Co., Ltd. | Subsidiary of Fosun Pharm |
Foshan Shunde Lecong Supply and Marketing Group Shunketang Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd. | Subsidiary of Fosun Pharm |
Hunan Yaoyou Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Shandong Skyway Pharmaceutical Sales Co., Ltd. | Subsidiary of Fosun Pharm |
Foshan Chanyun Medical Clinic Co., Ltd. | Subsidiary of Fosun Pharm |
Fresenius Kabi(Wuhan)Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Fosun Kite Biotechnology Co., Ltd. | Subsidiary of Fosun Pharm |
Shenzhen Xinsheng Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Breas (Shanghai) Medical Technology Co., Ltd. | Subsidiary of Fosun Pharm |
Wanbang Biopharmaceuticals | Subsidiary of Fosun Pharm |
Fosun Health Technology (Jiangsu) Co., Ltd. | Subsidiary of Fosun Pharm |
Guangzhou Xinshi Hospital Co., Ltd. | Subsidiary of Fosun Pharm |
Hainan Fucong Health Management Co., Ltd. | Subsidiary of Fosun Pharm |
Hebei Wanbang Fulin Pharmaceutical Co., Ltd. | Subsidiary of Fosun Pharm |
Hunan Minshengtang Biotechnology Co., Ltd. | Minority shareholders of a subsidiary |
Taishan Qunkang Pharmacy Co., Ltd. | Minority shareholders of a subsidiary |
Shenzhen Jiufeng Investment Co., Ltd. | Minority shareholders of a subsidiary |
Shenyang Pharmaceutical Co., Ltd. | Minority shareholders of a subsidiary |
Zhang Zhenfang | Minority shareholders of a subsidiary |
Pingdingshan Pusheng Pharmaceutical Co., Ltd. | Minority shareholders of a subsidiary |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Lerentang Investment Group Co., Ltd. | Minority shareholders of a subsidiary |
Guangdong Jiyuantang Development Co., Ltd. | Minority shareholders of a subsidiary |
Shanghai Baizhong Business Development (Group) Co., Ltd. | Minority shareholders of a subsidiary |
Beijing Huafang Investment Co., Ltd. | Minority shareholders of a subsidiary |
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | Minority shareholders of a subsidiary |
Gu Haiqun | Minority shareholders of a subsidiary |
Pu'er Songmao Medicine Group Co., Ltd. | Minority shareholders of a subsidiary |
Jilin Province Yihe Investment Consulting Co., Ltd. | Minority shareholders of a subsidiary |
Zhang Haiyan | Minority shareholders of a subsidiary |
Shenyang Shengdiou Trading Co., Ltd. | Minority shareholders of a subsidiary |
Xiong Xinyuan | Minority shareholders of a subsidiary |
Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd. | Minority shareholders of a subsidiary |
Xishuangbanna Disheng Pharmaceutical Co., Ltd. | 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 |
Nanjing Yuanguang Trading Co., Ltd. | Companies owned by minority shareholders of a subsidiary |
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. | Companies owned by minority shareholders of a subsidiary |
Zhang Guitang | Family members of minority shareholders of a subsidiary |
Yangjiang Kangmin Pharmaceutical Co., Ltd. | Family members of the actual controller of minority shareholders of a subsidiary |
Jilin Ronghe Real Estate Development Co., Ltd. | Companies with subsidiary directors, supervisors and senior executives serving as key management personnel |
Zhongshan Kangyue Medical Instrument Co., Ltd. | Company invested by family member of the director and supervisor of a subsidiary |
Jilin Tianheke Industry and Trade Co., Ltd. | Company influenced by key management personnel of a subsidiary |
Gu Jinhua | The actual controller of minority shareholders of a subsidiary |
Li Fang | The actual controller of minority shareholders of a subsidiary |
Zhang Kai | The actual controller of minority shareholders of a subsidiary |
Wang Yixuan | Major investor of minority shareholders of a subsidiary |
Wang Yang | Family members of the actual controller of minority shareholders of a subsidiary |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name | Related party relationships |
Zhang Yechuan | Family members of the actual controller of minority shareholders of a subsidiary |
Guangzhou Tianren Pharmaceutical Co., Ltd. | Company owned by family member of the actual controller of the non-controlling shareholder of a subsidiary |
Naton Biotechnology (Beijing) Co., Ltd. | Subsidiary of Naton |
Zhao Xiaoxiao | Family members of key management personnel of a subsidiary |
Zheng Jing | Family members of key management personnel of a subsidiary |
Beijing Natong Shichuang Investment Management Co., Ltd. | Subsidiary of Naton |
Guangzhou Tianren Pharmacy Chain Co., Ltd. | Company owned by family member of the actual controller of the non-controlling shareholder of a subsidiary |
Liu Zhiping | The actual controller of minority shareholders of a subsidiary |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Holding Sub Marketing Center Co., Ltd. | Purchase of goods | 577,218,337.71 | 10,355,000,000.00 | NO | 567,957,995.48 |
China National Medicines Co., Ltd. | Purchase of goods | 357,017,451.57 | NO | 378,976,943.17 | |
Sinopharm Holding Shanxi Co., Ltd. | Purchase of goods | 318,234,860.84 | NO | 291,169,816.86 | |
Sinopharm Holding Shenyang Co., Ltd. | Purchase of goods | 263,886,903.84 | NO | 218,687,438.90 | |
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | Purchase of goods | 227,667,440.04 | NO | 132,068,068.87 | |
Sinopharm Group Co., Ltd. | Purchase of goods | 188,443,291.91 | NO | 130,357,912.20 | |
Sinopharm Holding Shanxi Co., Ltd. | Purchase of goods | 183,978,057.29 | NO | 204,598,556.55 | |
Sinopharm Lerentang Medicine Co., Ltd. | Purchase of goods | 156,176,948.57 | NO | 212,774,916.08 | |
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. | Purchase of goods | 98,144,275.79 | NO | 80,954,984.16 | |
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. | Purchase of goods | 84,213,549.45 | NO | 83,397,212.70 | |
Sinopharm Holding Yangzhou Co., Ltd. | Purchase of goods | 65,335,420.07 | NO | 51,592,777.55 | |
Shanghai Henlius Biopharmaceuticals Co., Ltd. | Purchase of goods | 58,704,238.04 | NO | 26,663,502.35 | |
Sinopharm Holding Inner Mongolia Co., Ltd. | Purchase of goods | 56,241,823.58 | NO | 40,632,946.46 | |
Sinopharm Holding Jilin Co., Ltd. | Purchase of goods | 51,845,516.71 | NO | 30,157,192.13 | |
Chongqing Yaoyou Pharmaceutical Co., Ltd. | Purchase of goods | 49,193,013.03 | NO | 37,011,667.64 | |
Lanzhou Biotechnology Development Co., Ltd. | Purchase of goods | 48,118,083.19 | NO | 68,090,371.68 | |
Southwest Pharmaceutical Co., Ltd. | Purchase of goods | 47,785,194.97 | NO | 17,542,194.64 | |
Sinopharm Holding Lunan Co., Ltd. | Purchase of goods | 37,955,700.50 | NO | 40,999,864.55 | |
Sinopharm Holding Shandong Co., Ltd. | Purchase of goods | 33,385,817.37 | NO | 22,619,090.27 | |
Taiji Group Chongqing Fuling Pharmaceutical Co., Ltd. | Purchase of goods | 32,364,005.17 | NO | 5,323,305.69 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Foshan Winteam Pharmaceutical Group Ltd. | Purchase of goods | 31,572,384.22 | 10,355,000,000.00 | NO | 23,659,412.81 |
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | Purchase of goods | 28,799,500.16 | NO | 9,851,650.37 | |
Sinopharm Holding Tongliao Co., Ltd. | Purchase of goods | 24,457,147.31 | NO | 16,039,594.19 | |
Main Luck Pharmaceutical | Purchase of goods | 23,968,456.02 | NO | 25,917,861.73 | |
Sinopharm Holding Henan Co., Ltd. | Purchase of goods | 23,222,605.65 | NO | 22,693,352.04 | |
Taiji Group Chongqing Tongjunge Pharmaceutical Co., Ltd. | Purchase of goods | 23,042,443.58 | NO | 3,955,453.47 | |
Sinopharm Holding Fujian Co., Ltd. | Purchase of goods | 22,959,844.44 | NO | 26,242,880.93 | |
Sinopharm Yixin Pharmaceutical Co., Ltd. | Purchase of goods | 21,537,832.07 | NO | 28,345,022.18 | |
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | Purchase of goods | 21,515,638.38 | NO | 45,696,541.00 | |
Shenzhen Wanwei Medicine Trading Co., Ltd. | Purchase of goods | 21,288,696.68 | NO | 13,151,952.24 | |
Sinopharm Holding Changzhou Co., Ltd. | Purchase of goods | 20,341,776.01 | NO | 10,160,654.93 | |
Sinopharm Holding Beijing Co., Ltd. | Purchase of goods | 19,925,755.17 | NO | 17,360,821.15 | |
China National Pharmaceutical Foreign Trade Corporation | Purchase of goods | 18,962,586.42 | NO | 31,428,461.51 | |
Sinopharm Holding Hunan Co., Ltd. | Purchase of goods | 18,117,814.44 | NO | 13,204,231.22 | |
Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd. | Purchase of goods | 17,920,014.27 | NO | 17,310,598.75 | |
Sinopharm Group Guorui Medicine Co., Ltd. | Purchase of goods | 16,175,927.81 | NO | 15,180,518.65 | |
Sinopharm Holding Jiangsu Co., Ltd. | Purchase of goods | 16,084,288.10 | NO | 16,730,745.30 | |
Sinopharm Zhijun | Purchase of goods | 15,640,952.26 | NO | 15,931,558.84 | |
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd. | Purchase of goods | 15,292,974.45 | NO | 19,472,073.81 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Hubei MEDICAL Device Co., Ltd. | Purchase of goods | 14,883,132.80 | 10,355,000,000.00 | NO | - |
China Otsuka Pharmaceutical Co., Ltd. | Purchase of goods | 14,659,161.80 | NO | 11,763,554.47 | |
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. | Purchase of goods | 14,639,605.08 | NO | 36,421,939.26 | |
Sinopharm Holding Jinzhou Co., Ltd. | Purchase of goods | 13,151,698.93 | NO | 8,931,064.40 | |
Yichang Humanwell Pharmaceutical Co., Ltd. | Purchase of goods | 12,930,498.02 | NO | 12,457,905.62 | |
Sinopharm Jiankun (Beijing) Medicine Co., Ltd. | Purchase of goods | 12,290,194.84 | NO | 4,529,929.13 | |
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd. | Purchase of goods | 11,889,393.76 | NO | 9,191,104.74 | |
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. | Purchase of goods | 11,646,928.19 | NO | 5,932,515.36 | |
Sinopharm Holding Xiamen Co., Ltd. | Purchase of goods | 11,547,313.21 | NO | 11,957,608.14 | |
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. | Purchase of goods | 11,112,225.74 | NO | 9,697,409.23 | |
Sinopharm Holding Pingdingshan Co., Ltd. | Purchase of goods | 10,999,809.50 | NO | 11,979,529.78 | |
Chengdu Rongsheng Pharmacy Co., Ltd. | Purchase of goods | 10,903,730.00 | NO | 14,584,099.03 | |
Shanghai Chaohui Pharmaceutical Co., Ltd. | Purchase of goods | 10,733,383.55 | NO | 7,770,056.47 | |
Tibet Yaoyou Medicines Co.,Ltd. | Purchase of goods | 10,602,831.41 | NO | 14,011,950.98 | |
Sinopharm Holding Ningxia Co., Ltd. | Purchase of goods | 10,485,536.70 | NO | 7,527,437.99 | |
Jiangxi Erye Medicine Marketing Co., Ltd. | Purchase of goods | 9,965,371.14 | NO | 6,315,288.30 | |
Sinopharm Holding Anshan Co., Ltd. | Purchase of goods | 9,751,585.88 | NO | 7,386,999.04 | |
Jinzhou Avanc Pharmaceutical Co., Ltd. | Purchase of goods | 9,739,150.30 | NO | 11,829,570.34 | |
Sinopharm Group Shanxi Medical Devices Co., Ltd. | Purchase of goods | 8,913,461.47 | NO | 6,568,011.43 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. | Purchase of goods | 8,073,472.28 | 10,355,000,000.00 | NO | 2,917,177.22 |
Sinopharm holdings Hubei Co., Ltd. | Purchase of goods | 7,949,628.05 | NO | 531,440.87 | |
Sinopharm Holding Shanxi Zhongjian Medicial Device Chain Co., Ltd. | Purchase of goods | 7,048,662.52 | NO | 6,180,889.71 | |
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. | Purchase of goods | 6,375,613.27 | NO | 2,350,922.70 | |
Hunan Dongting Pharmaceutical Co., Ltd. | Purchase of goods | 6,251,679.06 | NO | 1,673,060.75 | |
Sinopharm Holding Wuxi Co., Ltd. | Purchase of goods | 6,106,247.58 | NO | 2,439,252.13 | |
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | Purchase of goods | 6,000,694.22 | NO | 14,889,163.04 | |
Sinopharm holdings Beijing Huahong Co., Ltd. | Purchase of goods | 5,961,645.59 | NO | 471,946.23 | |
Zhijun Pingshan | Purchase of goods | 5,629,313.91 | NO | 10,838,947.13 | |
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. | Purchase of goods | 5,354,207.36 | NO | 4,477,305.68 | |
Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | Purchase of goods | 5,023,580.83 | NO | 12,051,455.59 | |
Shaanxi National Medical Equipment Co., Ltd. | Purchase of goods | 5,002,539.81 | NO | - | |
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. | Purchase of goods | 4,900,064.15 | NO | 5,438,916.55 | |
Jinzhou Avanc Medicine Co., Ltd. | Purchase of goods | 4,893,043.53 | NO | 265,412.37 | |
Sinopharm Holding Jinan Co., Ltd. | Purchase of goods | 4,852,942.46 | NO | 5,593,031.01 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Wonder Dream Pharmaceutical (Xiamen) | Purchase of goods | 4,799,825.30 | 10,355,000,000.00 | NO | - |
Sinopharm Holding Hulun Buir Co., Ltd. | Purchase of goods | 4,584,675.34 | NO | 2,425,267.22 | |
China National Pharmaceutical Industry Co., Ltd. | Purchase of goods | 4,055,984.31 | NO | 1,658,893.69 | |
Sinopharm Chuankang Pharmaceutical Co., Ltd. | Purchase of goods | 3,546,481.54 | NO | 1,292,333.10 | |
Taiji Group | Purchase of goods | 3,103,599.64 | NO | 166,678.24 | |
Sinopharm Holding Tianjin Co., Ltd. | Purchase of goods | 3,064,838.26 | NO | 2,113,934.18 | |
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. | Purchase of goods | 3,029,923.97 | NO | 4,051,307.75 | |
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. | Purchase of goods | 3,022,449.03 | NO | 1,922,967.49 | |
Guangdong Global Pharmaceutical | Purchase of goods | 2,955,096.51 | NO | - | |
Sichuan Hexin Pharmaceutical Co., Ltd. | Purchase of goods | 2,679,383.32 | NO | 3,903,635.62 | |
Sinopharm Shanghai Plasma-derived Biotherapies Co., Ltd. | Purchase of goods | 2,655,771.84 | NO | - | |
Sinopharm Holding Heilongjiang Co., Ltd. | Purchase of goods | 2,616,750.02 | NO | 2,700,433.59 | |
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. | Purchase of goods | 2,610,337.20 | NO | 4,230,984.00 | |
Taiji Group Zhejiang Dongfang Pharmaceutical Co., Ltd. | Purchase of goods | 2,567,421.22 | NO | 79,709.72 | |
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd. | Purchase of goods | 2,512,845.00 | NO | 1,537,349.20 | |
Fresenius Kabi (Wuhan) Pharmaceutical Co., Ltd. | Purchase of goods | 2,493,312.53 | NO | - | |
Sinopharm Holding Yunnan Co., Ltd. | Purchase of goods | 2,429,262.58 | NO | 805,065.42 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Shanghai International Pharmaceutical Trade Co., Ltd. | Purchase of goods | 2,375,683.11 | 10,355,000,000.00 | NO | 3,215,831.81 |
Sinopharm Holding Taizhou Co., Ltd. | Purchase of goods | 2,316,838.25 | NO | (350.45) | |
Sinopharm Holding Dalian Co., Ltd. | Purchase of goods | 2,085,255.89 | NO | 1,618,603.64 | |
Chongqing Taiji Industry (Group) Co., Ltd. | Purchase of goods | 2,069,070.40 | NO | - | |
Sinopharm Holding Chifeng Co., Ltd. | Purchase of goods | 1,895,142.57 | NO | 347,527.93 | |
Sinopharm Weiqida Pharmaceutical Co., Ltd. | Purchase of goods | 1,827,299.52 | NO | 690,157.52 | |
Sinopharm Holding Benxi Co., Ltd. | Purchase of goods | 1,777,546.43 | NO | 559,188.59 | |
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. | Purchase of goods | 1,713,228.93 | NO | 497,209.07 | |
Jiangxi National Medical Equipment Co., Ltd. | Purchase of goods | 1,446,991.15 | NO | - | |
Guangdong Yifang Pharmaceutical Co., Ltd. | Purchase of goods | 1,384,459.85 | NO | - | |
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. | Purchase of goods | 1,360,791.79 | NO | 2,321,886.33 | |
Sinopharm Group Fengliaoxing (Foshan) Pharmaceutical Co., Ltd. | Purchase of goods | 1,360,654.87 | NO | - | |
Sinopharm Holding Fuzhou Co., Ltd. | Purchase of goods | 1,267,923.77 | NO | 1,152,589.16 | |
Sinopharm Holding Yancheng Co., Ltd. | Purchase of goods | 1,191,411.93 | NO | 1,355,193.79 | |
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | Purchase of goods | 1,180,223.35 | NO | 984,816.68 | |
Sinopharm Advanced (Shanghai) Medicine Device Co., Ltd. | Purchase of goods | 1,141,738.72 | NO | 4,359,697.01 | |
Sinopharm Group Shanxi Ruifulai Co., Ltd. | Purchase of goods | 1,096,614.36 | NO | 404,922.04 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Fosun Kite Biotechnology Co., Ltd. | Purchase of goods | 1,046,946.90 | 10,355,000,000.00 | NO | - |
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | Purchase of goods | 1,010,998.93 | NO | 1,342,043.34 | |
Sinopharm Holding Anhui Huaning Medicine Co., Ltd. | Purchase of goods | 986,032.47 | NO | 781,575.58 | |
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. | Purchase of goods | 940,244.05 | NO | 1,017,142.82 | |
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd. | Purchase of goods | 939,969.76 | NO | 3,765,974.30 | |
Chengdu Institute of Biological Products Co.,Ltd. | Purchase of goods | 790,713.15 | NO | 562,767.00 | |
Sinopharm Xinjiang Pharmaceutical Co., Ltd. | Purchase of goods | 753,761.98 | NO | 341,818.02 | |
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd. | Purchase of goods | 703,316.38 | NO | 1,312,782.80 | |
Sinopharm Holding Xinjiang Special Drugs Karamay Pharmaceutical Co., Ltd. | Purchase of goods | 686,893.15 | NO | 1,801,633.72 | |
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. | Purchase of goods | 659,496.99 | NO | 1,553,305.70 | |
Sinopharm Holding Quanzhou Co., Ltd. | Purchase of goods | 658,072.27 | NO | 662,423.54 | |
Taiji Group Chongqing No.2 Traditional Chinese Medicine Factory Co., Ltd. | Purchase of goods | 640,017.30 | NO | - | |
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. | Purchase of goods | 636,169.31 | NO | 781,581.70 | |
Sinopharm Holding Hainan Co., Ltd. | Purchase of goods | 614,233.58 | NO | 13,042.99 | |
Foshan Chancheng Pharmaceutical Co., Ltd. | Purchase of goods | 603,709.11 | NO | - | |
Shanghai Transfusion Technology Co., Ltd. | Purchase of goods | 587,033.20 | NO | 667,699.12 | |
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd | Purchase of goods | 573,344.72 | NO | 1,156,691.29 | |
Sinopharm Group Ganzhou Medical Trade Co., Ltd. | Purchase of goods | 558,630.18 | NO | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. | Purchase of goods | 552,129.24 | 10,355,000,000.00 | NO | 371,264.92 |
Shanghai Shangsheng Biological Products Co., Ltd. | Purchase of goods | 547,184.16 | NO | 3,748,316.28 | |
Guilin Pharmaceutical Co., Ltd. | Purchase of goods | 544,088.50 | NO | 491,568.15 | |
Wuhan Zhongsheng Yujin Biological Medicine Co., Ltd. | Purchase of goods | 530,656.00 | NO | 354,016.00 | |
Gansu Tianshui Zhangjiachuan Donkey-hide Gelatin Factory | Purchase of goods | 526,205.33 | NO | - | |
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. | Purchase of goods | 477,543.09 | NO | 110,206.77 | |
Sinopharm Liaoning Medical Equipment Co., Ltd. | Purchase of goods | 462,208.86 | NO | 1,610,762.20 | |
Sinopharm Group Linfen Co., Ltd. | Purchase of goods | 456,010.04 | NO | 8,257.25 | |
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd. | Purchase of goods | 450,058.48 | NO | 773,057.14 | |
Sinopharm Holding Zhejiang Co., Ltd. | Purchase of goods | 430,796.23 | NO | 317,534.11 | |
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. | Purchase of goods | 415,373.53 | NO | 48,842.47 | |
Sinopharm Holdings Kangfu (Tengzhou) Pharmaceutical Co., Ltd. | Purchase of goods | 371,055.96 | NO | - | |
Sinopharm Inner Mongolia Medical Instrument Co., Ltd. | Purchase of goods | 357,851.47 | NO | 35,000.88 | |
Shanghai Merro Pharmaceutical Co., Ltd. | Purchase of goods | 339,760.00 | NO | 542,162.94 | |
Sinopharm Baise Device Co., Ltd. | Purchase of goods | 323,893.80 | NO | - | |
Sinopharm Holding Yangzhou Biological Products Co., Ltd. | Purchase of goods | 316,700.00 | NO | 1,850.00 | |
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. | Purchase of goods | 284,655.56 | NO | 682,560.86 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Jiangxi Co., Ltd. | Purchase of goods | 275,462.40 | NO | - | |
Suzhou Erye Pharmaceutical Limited Company | Purchase of goods | 266,017.70 | NO | 1,942,102.86 | |
Breas (Shanghai) Medical Technology Co., Ltd. | Purchase of goods | 265,486.72 | 10,355,000,000.00 | NO | - |
Sinopharm Holding Anhui Medical Device Co., Ltd. | Purchase of goods | 265,486.71 | NO | - | |
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | Purchase of goods | 250,059.82 | NO | - | |
Sinopharm Holding Shanghai Biomedicine Co., Ltd. | Purchase of goods | 241,761.13 | NO | 408,296.15 | |
Sinopharm Holding Bayannur Co., Ltd. | Purchase of goods | 235,284.80 | NO | 234,878.49 | |
Beijing Natong Shichuang Investment Management Co., Ltd. | Purchase of goods | 165,366.00 | NO | - | |
Sinopharm Holding Putian Co., Ltd. | Purchase of goods | 164,764.21 | NO | 257,643.78 | |
Sinopharm Group Yibin Pharmaceuticals Co., Ltd. | Purchase of goods | 160,710.75 | NO | 536,821.03 | |
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd. | Purchase of goods | 157,830.27 | NO | 142,201.82 | |
Sinopharm Holdings Longyan Co., Ltd. | Purchase of goods | 157,571.03 | NO | - | |
Sinopharm Holding Anhui Co., Ltd. | Purchase of goods | 142,752.12 | NO | 180,725.82 | |
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd. | Purchase of goods | 131,697.05 | NO | 101,222.21 | |
Sinopharm Holdings Haoyang Mianyang Pharmaceutical Co., Ltd. | Purchase of goods | 114,857.52 | NO | - | |
Sinopharm Cohealta(Beijing) Co., Ltd. | Purchase of goods | 113,274.00 | NO | - | |
Sinopharm Holding Puer Co., Ltd. | Purchase of goods | 112,870.04 | NO | 296,085.02 | |
Sinopharm Shanxi Linfen Co., Ltd. | Purchase of goods | 107,642.27 | NO | - | |
Sinopharm Holding Nanping Newforce Co., Ltd | Purchase of goods | 106,618.64 | NO | 105,027.03 | |
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. | Purchase of goods | 100,871.54 | NO | 18,751.86 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Shandong Skyway Pharmaceutical Sales Co., Ltd. | Purchase of goods | 94,364.59 | 10,355,000,000.00 | NO | - |
Sinopharm Equipment Supply Chain Service (Liaoning) Co., Ltd. | Purchase of goods | 94,037.61 | NO | - | |
Sinopharm Wuhan Blood Products Co., Ltd. | Purchase of goods | 88,400.00 | NO | 281,200.00 | |
Sinopharm Holding Ordos Co., Ltd. | Purchase of goods | 88,150.98 | NO | 35,001.77 | |
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd. | Purchase of goods | 86,639.80 | NO | 607,344.52 | |
Sinopharm Group Dezhong(Foshan)Pharmaceutical Co., Ltd. | Purchase of goods | 77,861.95 | NO | - | |
Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd. | Purchase of goods | 73,645.12 | NO | 37,095.80 | |
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. | Purchase of goods | 70,318.58 | NO | - | |
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. | Purchase of goods | 60,977.01 | NO | 136,860.13 | |
Sinopharm Holding Nantong Co., Ltd. | Purchase of goods | 50,647.43 | NO | 697,002.20 | |
Hainan Fucong Health Management Co., Ltd. | Purchase of goods | 44,814.15 | NO | - | |
Sinopharm Holding Changde Co., Ltd. | Purchase of goods | 40,566.37 | NO | 48,318.59 | |
Changchun Lnstitute of Biological Products Co., Ltd. | Purchase of goods | 40,294.80 | NO | - | |
Sinopharm Jingfang (Anhui) Pharmaceutical Co., Ltd. | Purchase of goods | 37,711.49 | NO | 20,306.19 | |
Shantou Jinshi Powder Injection Co., Ltd. | Purchase of goods | 35,470.80 | NO | 351,589.74 | |
Sinopharm Holding Hainan Hongyi Co., Ltd. | Purchase of goods | 34,899.26 | NO | 258,280.38 | |
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. | Purchase of goods | 29,305.51 | NO | 1,591,292.21 | |
Sinopharm Holdings Wuhan Hengfeng Co., Ltd. | Purchase of goods | 29,203.54 | NO | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Group Hebei Medicine Co., Ltd. | Purchase of goods | 28,949.12 | 10,355,000,000.00 | NO | - |
Sinopharm Holding Changsha Co., Ltd. | Purchase of goods | 27,499.47 | NO | 84,558.36 | |
Jiangsu Huanghe Pharmaceutical Co., Ltd. | Purchase of goods | 26,506.67 | NO | 162,782.30 | |
Sinopharm Medical Instrument (Huizhou) Co., Ltd. | Purchase of goods | 22,204.44 | NO | 10,618.77 | |
Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. | Purchase of goods | 20,616.36 | NO | - | |
Sinopharm Group Guangdong Medicine Device Co., Ltd. | Purchase of goods | 19,557.52 | NO | 19,340,530.98 | |
Shenyang Hongqi Pharmaceutical Co., Ltd. | Purchase of goods | 19,430.09 | NO | 653,104.18 | |
Sinopharm Group Southwest Medicine Co., Ltd. | Purchase of goods | 17,770.83 | NO | 2,313,721.29 | |
Sinopharm Holding Shanxi Jincheng Co., Ltd. | Purchase of goods | 15,707.97 | NO | - | |
China National Medical Device Co., Ltd. | Purchase of goods | 10,667.09 | NO | 2,866,958.60 | |
Zhejiang Yinuo Pharmaceutical Co., Ltd. | Purchase of goods | 7,412.39 | NO | - | |
Sinopharm Holding Dalian Hecheng Co., Ltd. | Purchase of goods | 2,831.85 | NO | 17,404.47 | |
Sinopharm Holding Xinjiang Special Drugs Yili Pharmaceutical Co., Ltd. | Purchase of goods | 2,207.85 | NO | 68,861.47 | |
Guangxi Fangning Pharmaceutical Co., Ltd. | Purchase of goods | 2,108.68 | NO | - | |
Suzhou Laishi Transfusion Equipment | Purchase of goods | 509.73 | NO | 1,019.47 | |
Sinopharm Shyndec | Purchase of goods | 69.95 | NO | 36,180.53 | |
Sinopharm Holding Chuangke Medicial Technology (Guangxi) Co., Ltd. | Purchase of goods | - | NO | 3,741,777.16 | |
Huayi Pharmaceutical Co., Ltd. | Purchase of goods | - | NO | 1,266,831.84 | |
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. | Purchase of goods | NO | 753,274.35 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. | Purchase of goods | - | 10,355,000,000.00 | NO | 295,539.81 |
Sinopharm Group Hubei Yukang Co., Ltd. | Purchase of goods | - | NO | 260,747.00 | |
Sinopharm Sichuan Pharmaceutical Co., Ltd. | Purchase of goods | - | NO | 253,894.16 | |
Hunan Yaoyou Pharmaceutical Co., Ltd. | Purchase of goods | - | NO | 121,513.28 | |
Sinopharm Holdings Kunming Co., Ltd. | Purchase of goods | - | NO | 58,396.46 | |
Sinopharm Group Medicine Logistic Co., Ltd. | Purchase of goods | - | NO | 9,450.54 | |
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd. | Purchase of goods | - | NO | 9,380.53 | |
Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd. | Purchase of goods | - | NO | 9,026.54 | |
Sinopharm Device (Guangdong) Medical Technology Co., Ltd. | Purchase of goods | - | NO | 6,578.33 | |
Sinopharm Liaoning Medical Equipment Distribution Co., Ltd. | Purchase of goods | - | NO | 4,424.78 | |
Sinopharm Holding Zhangzhou Co., Ltd. | Purchase of goods | NO | 2,835.40 | ||
Naton Biotechnology (Beijing) Co., Ltd. | Purchase of goods | NO | 63.72 | ||
Sinopharm Holding Baotou Co., Ltd. | Purchase of goods | NO | (88.50) | ||
Sinopharm Group Shanghai Medicine Device Co., Ltd. | Purchase of goods | NO | (209.96) | ||
Sinopharm Holding Guang’an Co., Ltd. | Purchase of goods | NO | (6,594.69) | ||
China Medical Equipment Shandong Co., Ltd. | Purchase of goods | (160.97) | NO | (2,177.00) | |
Sinopharm Holding Dezhou Co., Ltd. | Purchase of goods | (223.18) | NO | (223.18) | |
Guangzhou Tianren Pharmaceutical Co., Ltd. | Purchase of goods | (1,452.72) | NO | - | |
Guangzhou Tianren Pharmacy Chain Co., Ltd. | Purchase of goods | (8,880.53) | NO | - | |
Sinopharm Holdings Linyi Medical Instrument Co., Ltd. | Purchase of goods | (13,074.33) | NO | - | |
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. | Purchase of goods | (1,091,450.68) | NO | 2,654,950.93 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 party | Type of transaction | For the six months ended 30 June 2022 | Approved trading quota | whether the transaction limit is exceeded | For the six months ended 30 June 2021 |
Sinopharm Wuhan ZhongLian SiYao Pharmaceutical Co., Ltd. | Purchase of goods | - | 10,355,000,000.00 | NO | 124,447.86 |
Sinopharm Group Medicine Logistic Co., Ltd. | receiving of services | 6,181,245.42 | 80,000,000.00 | NO | 9,631,686.33 |
China Pharmaceutical Health Online Co., Ltd. | receiving of services | 5,493,166.49 | NO | - | |
Sinopharm Group Guangdong Medicine Device Co., Ltd. | receiving of services | 591,995.39 | NO | 34,651.32 | |
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. | receiving of services | 476,689.66 | NO | 518,400.00 | |
Puer Songmao Medicine Group Co., Ltd. | receiving of services | 177,474.52 | NO | - | |
Shanghai Tongyu Information Technology Co., Ltd. | receiving of services | 172,998.92 | NO | 476,169.82 | |
Sinopharm Foreign Trade(Beijing) Co., Ltd. | receiving of services | 64,159.31 | NO | 141,592.92 | |
Sinopharm Group Xiamen Co., Ltd. | receiving of services | 39,471.70 | NO | - | |
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd. | receiving of services | 25,000.00 | NO | 49,056.60 | |
Sinopharm Group | receiving of services | - | NO | 2,269,577.44 | |
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. | receiving of services | - | NO | 658,831.86 | |
Sinopharm Holding Henan Co., Ltd. | receiving of services | - | NO | 106,046.95 | |
China National Pharmaceutical Foreign Trade Corporation | receiving of services | - | NO | 68,938.05 | |
Xinjiang Baitong Property Service Co., Ltd. | receiving of services | - | NO | 1,150.44 | |
Sinopharm Holding Jilin Co., Ltd. | receiving of services | - | NO | 109.23 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Holding Sub Marketing Center Co., Ltd. | Sale of goods | 238,596,646.39 | 6,713,774.05 |
Foshan Chancheng Pharmaceutical Co., Ltd. | Sale of goods | 77,447,659.74 | 68,883,280.00 |
Sinopharm Holding Jilin Co., Ltd. | Sale of goods | 71,947,999.61 | 2,942,030.47 |
Sinopharm Group | Sale of goods | 69,911,174.65 | 139,234,971.54 |
Sinopharm Holding Hainan Co., Ltd. | Sale of goods | 57,956,239.22 | 56,647,385.55 |
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. | Sale of goods | 46,179,339.42 | 51,633,689.10 |
Fosun Health Technology (Jiangsu) Co., Ltd. | Sale of goods | 37,288,929.85 | - |
Sinopharm Holding Hubei Co., Ltd. | Sale of goods | 22,714,690.22 | 5,725,139.41 |
Sinopharm Holding Hainan Hongyi Co., Ltd. | Sale of goods | 18,242,777.80 | 19,732,331.43 |
China National Medical Device(Hai Nan) Co., Ltd. | Sale of goods | 18,053,097.39 | - |
Sinopharm Lerentang Medicine Co., Ltd. | Sale of goods | 17,485,730.43 | 30,299,085.61 |
Sinopharm Holding Wenzhou Co., Ltd. | Sale of goods | 16,867,572.83 | 16,294,606.34 |
China National Medicines Co., Ltd. | Sale of goods | 12,374,758.53 | 1,269,341.13 |
Shenzhen Hengsheng Hospital | Sale of goods | 12,151,223.36 | 13,376,757.25 |
Sinopharm Holding Shandong Co., Ltd. | Sale of goods | 11,793,989.32 | 14,001,108.69 |
Sinopharm Holding Beijing Co., Ltd. | Sale of goods | 10,434,145.19 | 20,211,375.98 |
Guangzhou Xinshi Hospital Co., Ltd. | Sale of goods | 10,167,494.98 | - |
Sinopharm Holding Hunan Co., Ltd. | Sale of goods | 9,017,405.14 | 2,170,058.36 |
Sinopharm Holding Jinzhou Co., Ltd. | Sale of goods | 8,680,234.86 | 7,182,756.92 |
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | Sale of goods | 8,598,128.73 | 10,239,238.49 |
Foshan Chancheng Central Hospital Co., Ltd. | Sale of goods | 8,590,171.60 | 12,092,528.87 |
Sinopharm Holding Henan Co., Ltd. | Sale of goods | 8,051,806.62 | 12,870,576.33 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. | Sale of goods | 7,838,724.33 | 15,169,815.63 |
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. | Sale of goods | 6,891,131.97 | 6,709,036.12 |
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. | Sale of goods | 6,420,700.27 | 5,801,373.68 |
Sinopharm Sichuan Pharmaceutical Co., Ltd. | Sale of goods | 5,607,836.62 | 2,270,896.31 |
Sinopharm Holding Tianjin Co., Ltd. | Sale of goods | 5,311,089.13 | 2,941,625.35 |
Sinopharm Holding Nantong Co., Ltd. | Sale of goods | 5,064,569.46 | 8,373,035.18 |
Sinopharm Holding Jiangxi Co., Ltd. | Sale of goods | 4,989,683.59 | 1,230,819.17 |
Sinopharm holdings Beijing Huahong Co., Ltd. | Sale of goods | 4,956,666.30 | 10,138,011.45 |
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | Sale of goods | 4,940,793.86 | 8,887,736.05 |
Sinopharm Holding Yangzhou Co., Ltd. | Sale of goods | 4,872,460.21 | 5,243,275.79 |
Sinopharm Group Shanxi Co., Ltd | Sale of goods | 4,784,858.35 | 6,114,523.08 |
Sinopharm Holding Shanxi Co., Ltd. | Sale of goods | 4,378,032.64 | 2,569,451.46 |
Sinopharm Group Southwest Medicine Co., Ltd. | Sale of goods | 3,866,348.67 | 1,686,783.92 |
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd. | Sale of goods | 3,842,969.83 | 13,521,643.14 |
Foshan Chanyixing Medicine Development Co Ltd. | Sale of goods | 3,648,580.51 | 4,356,266.82 |
Sinopharm Holding Anshan Co., Ltd. | Sale of goods | 3,188,314.96 | 1,410,135.08 |
Sinopharm Holding Yunnan Co., Ltd. | Sale of goods | 2,309,599.26 | 2,197,412.02 |
Sinopharm Holding Anhui Co., Ltd. | Sale of goods | 2,281,078.42 | 1,714,909.94 |
Shanghai Merro Pharmaceutical Co., Ltd. | Sale of goods | 2,134,114.96 | 2,858,507.18 |
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | Sale of goods | 2,122,792.57 | 2,280,410.62 |
Sinopharm Holding Gansu Co., Ltd. | Sale of goods | 2,021,033.82 | 863,189.43 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Holding Benxi Co., Ltd. | Sale of goods | 1,868,638.73 | 134,235.92 |
Shanghai Guoda Shengxin Pharmacy Co., Ltd. | Sale of goods | 1,839,197.93 | - |
Shanghai Guodaai Pharmacy Co., Ltd. | Sale of goods | 1,707,215.39 | - |
Sinopharm Holding Guizhou Co., Ltd. | Sale of goods | 1,581,548.88 | 836,038.24 |
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | Sale of goods | 1,511,909.50 | 1,732,284.48 |
Shanghai Liyi Pharmacy Co.,Ltd | Sale of goods | 1,240,869.94 | 1,102,980.44 |
Sinopharm Holding Qinghai Co., Ltd. | Sale of goods | 1,231,518.56 | 262,068.06 |
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | Sale of goods | 1,217,108.90 | 585,023.94 |
Sinopharm Holding Dalian Co., Ltd. | Sale of goods | 1,058,459.12 | 1,505,999.43 |
Sinopharm Holding Inner Mongolia Co., Ltd. | Sale of goods | 1,035,028.89 | 150,193.67 |
Sinopharm Holding Fujian Co., Ltd. | Sale of goods | 975,376.99 | 992,070.43 |
Shenzhen Xinsheng Pharmaceutical Co., Ltd. | Sale of goods | 911,275.84 | - |
Sinopharm Holding Ningxia Co., Ltd. | Sale of goods | 880,530.27 | 766,385.82 |
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | Sale of goods | 845,414.06 | 1,152,047.45 |
Sinopharm Holding Shanghai Biomedicine Co., Ltd. | Sale of goods | 833,628.33 | 367,752.21 |
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd. | Sale of goods | 826,951.45 | 675,555.69 |
Sinopharm Holding Xuzhou Co., Ltd. | Sale of goods | 751,604.04 | 1,108,631.54 |
Sinopharm Holding Guizhou (Zunyi) Medical Equiment Co., Ltd. | Sale of goods | 654,444.32 | 551,323.97 |
Sinopharm Holding Fuzhou Co., Ltd. | Sale of goods | 592,328.15 | 93,210.07 |
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. | Sale of goods | 571,105.16 | 3,311,038.77 |
Sinopharm Holding Jiangsu Co., Ltd. | Sale of goods | 529,772.51 | 526,573.72 |
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | Sale of goods | 518,561.98 | 3,187,482.23 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm JI LIN MEDICAL Device Co., Ltd. | Sale of goods | 486,725.67 | - |
Sinopharm Holding Tongren Co., Ltd. | Sale of goods | 474,993.63 | 608,054.18 |
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. | Sale of goods | 441,747.49 | 352,417.43 |
Sinopharm Holding Dalian Hecheng Co., Ltd. | Sale of goods | 429,081.72 | 440,610.07 |
Sinopharm Holding Shenyang Co., Ltd. | Sale of goods | 361,934.64 | 839.65 |
Sinopharm Holding Shanxi Co., Ltd. | Sale of goods | 361,219.35 | 1,759,444.55 |
Sinopharm Inner Mongolia Medical Instrument Co., Ltd. | Sale of goods | 343,274.36 | - |
Sinopharm Lerentang Hengshui Medicine Co., Ltd. | Sale of goods | 318,299.30 | 1,541,096.39 |
Sinopharm Holdings Qianxinan Co., Ltd. | Sale of goods | 290,137.09 | - |
Sinopharm Holdings Chongqing Health Management Co., Ltd. | Sale of goods | 288,059.85 | - |
Qinghai Guoyao Holding Pharmaceutical Chain Co., Ltd. | Sale of goods | 272,448.67 | - |
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. | Sale of goods | 239,306.13 | 123,210.38 |
Sinopharm Lerentang Tangshan Medicine Co., Ltd. | Sale of goods | 225,301.22 | 3,561,044.84 |
Sinopharm Lerentang Chengde Medicine Co., Ltd. | Sale of goods | 223,046.99 | 129,707.75 |
Sinopharm Holding Shanxi Pharmacy Co., Ltd. | Sale of goods | 209,204.51 | 274,021.65 |
Sinopharm Holding Wuhu Co., Ltd. | Sale of goods | 201,936.94 | 483,333.34 |
Sinopharm Lerentang Tangshan Medicine Co., Ltd. | Sale of goods | 197,644.06 | 330,239.40 |
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. | Sale of goods | 194,712.99 | 2,986,283.70 |
Sinopharm Holding Wuxi Co., Ltd. | Sale of goods | 190,797.73 | 651,490.72 |
Sinopharm Holdings Chongqing Medical Device Co., Ltd. | Sale of goods | 190,118.94 | - |
Shenzhen Chindex Medical Beauty Clinic | Sale of goods | 178,088.61 | 388,613.67 |
Sinopharm Holding Honghe Co., Ltd. | Sale of goods | 174,758.78 | 233,627.39 |
Sinopharm Qinghai Medical Equipment Co., Ltd. | Sale of goods | 159,292.04 | - |
Sinopharm Medicine Holding Yantai Co., Ltd. | Sale of goods | 150,483.19 | - |
Sinopharm Henan Medical Device Co., Ltd. | Sale of goods | 146,720.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Guangdong Medical Examination Co., Ltd. | Sale of goods | 139,317.87 | 134,910.79 |
Sinopharm Holding Chuxiong Co., Ltd. | Sale of goods | 138,537.63 | 185,415.94 |
Sinopharm Holding Chaoyang Co., Ltd. | Sale of goods | 116,930.27 | - |
Sinopharm Baise Device Co., Ltd. | Sale of goods | 110,713.27 | 328,663.72 |
Sinopharm Holding Lu'an Co., Ltd. | Sale of goods | 102,654.87 | - |
Sinopharm Group Guangdong Medicine Device Co., Ltd. | Sale of goods | 98,426.61 | 48,348.50 |
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd. | Sale of goods | 89,931.94 | 70,346.37 |
Sinopharm Zhijun | Sale of goods | 86,066.90 | 54,493.27 |
Sinopharm Holding Tianjin North Medicine Co., Ltd. | Sale of goods | 74,867.26 | 165,577.13 |
Sinopharm Holding Professional Pharmacy (Hainan) Co., Ltd. | Sale of goods | 69,744.72 | 40,146.37 |
Sinopharm(Zhaoqing) Medical Equipment Co., Ltd. | Sale of goods | 69,412.34 | - |
Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd. | Sale of goods | 59,030.87 | 169,490.24 |
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd. | Sale of goods | 58,348.67 | 175,046.02 |
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd. | Sale of goods | 55,569.04 | 25,022.45 |
Sinopharm Medicine Holding Chenzhou Co., Ltd. | Sale of goods | 50,370.27 | - |
Chongqing Tongjunge Co., Ltd. | Sale of goods | 36,293.81 | 19,289.52 |
Sinopharm Lerentang Handan Medicine Co., Ltd. | Sale of goods | 33,197.66 | 69,991.28 |
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. | Sale of goods | 29,666.49 | 55,499.70 |
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. | Sale of goods | 29,082.57 | 135,104.03 |
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd. | Sale of goods | 28,065.45 | 35,758.14 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Holding Zunyi Co., Ltd. | Sale of goods | 27,609.03 | 497,385.52 |
Sinopharm Holdings Guizhou Medical Supply Chain Service Co., Ltd. | Sale of goods | 23,787.61 | - |
Sinopharm Lerentang Xingtai Medicine Co., Ltd. | Sale of goods | 22,837.84 | 224,344.53 |
Guangxi Fangning Pharmaceutical Co., Ltd. | Sale of goods | 21,512.75 | - |
Foshan Chanyun Medical Clinic Co., Ltd. | Sale of goods | 20,056.28 | - |
Sinopharm Holding Taizhou Co., Ltd. | Sale of goods | 14,587.16 | 5,834.87 |
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. | Sale of goods | 13,196.79 | 16,629.61 |
Sinopharm Holding Anshun Co., Ltd. | Sale of goods | 12,418.33 | 637,336.24 |
Sinopharm Group Feng Liao Xing (Foshan) Medicinal Material & Slices Co., Ltd. | Sale of goods | 11,705.22 | - |
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. | Sale of goods | 9,884.60 | 4,862.18 |
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd. | Sale of goods | 7,619.07 | 3,939.20 |
Korla Medicine Co., Ltd., Xinjiang Pharmaceutical Group | Sale of goods | 4,353.98 | - |
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd. | Sale of goods | 2,766.78 | 14,607.52 |
Sinopharm Holding Guizhou Medical Device Co., Ltd. | Sale of goods | 2,499.47 | 2,506,974.27 |
Sinopharm Medicine Holding Jining Co., Ltd. | Sale of goods | 1,577.34 | - |
Sinopharm Medical Instrument (Jiangmen) Co., Ltd. | Sale of goods | 579.65 | 884.96 |
Sinopharm Group Quanzhou Co., Ltd. | Sale of goods | 185.85 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Group Heilongjiang Co., Ltd. | Sale of goods | 119.47 | - |
Sinopharm Holding Suzhou Co., Ltd. | Sale of goods | 106.02 | 3.54 |
Sinopharm Holding Longyan Co., Ltd. | Sale of goods | 88.96 | 87,410.63 |
Sinopharm Group Nanping New Power Limited | Sale of goods | 50.44 | - |
Sinopharm Holding Ningde Co., Ltd. | Sale of goods | 44.24 | 10,083.19 |
Sinopharm Holding Weifang Co., Ltd. | Sale of goods | 23.36 | - |
Sinopharm Holding Tongliao Co., Ltd. | Sale of goods | 12.74 | 45.14 |
Sinopharm Holding Changzhou Co., Ltd. | Sale of goods | 2.83 | 21,218.05 |
Shanghai Guoda Lingyun Pharmacy Co., Ltd. | Sale of goods | - | 1,444,193.49 |
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. | Sale of goods | - | 1,164,258.24 |
Sinopharm Holding Shangqiu Co., Ltd. | Sale of goods | - | 1,039,646.02 |
Shanghai Shengxin Pharmacy Co., Ltd. | Sale of goods | - | 352,446.68 |
Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd. | Sale of goods | - | 253,856.26 |
Sinopharm Holding Jiaozuo Co., Ltd. | Sale of goods | - | 220,106.10 |
Sinopharm Holding Anhui Pharmaceutical Chain Co., Ltd. | Sale of goods | - | 190,577.18 |
Sinopharm Holding Chongqing Co., Ltd. | Sale of goods | - | 157,390.71 |
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd. | Sale of goods | - | 143,767.71 |
Sinopharm Holding Pingdingshan Co., Ltd. | Sale of goods | - | 121,061.94 |
Sinopharm Group Guangxi Medical Device Co., Ltd. | Sale of goods | - | 110,309.74 |
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd. | Sale of goods | - | 107,011.95 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd. | Sale of goods | - | 88,799.03 |
Sinopharm Holding Hubei Hongyuan Co., Ltd. | Sale of goods | - | 74,265.48 |
Sinopharm Holding Wuhan Guoda Pharmacy Co., Ltd. | Sale of goods | - | 66,101.95 |
Sinopharm Lerentang Baoding Medicine Co., Ltd. | Sale of goods | - | 57,943.93 |
Sinopharm Holding Putian Co., Ltd. | Sale of goods | - | 26,888.49 |
Sinopharm Holding Yancheng Co., Ltd. | Sale of goods | - | 25,340.97 |
Sichuan Taiji Pharmacy Chain Co., Ltd. | Sale of goods | - | 18,141.59 |
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | Sale of goods | - | 13,825.24 |
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd. | Sale of goods | - | 6,978.32 |
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd. | Sale of goods | - | 2,902.65 |
Sinopharm Holding Dalian Special Drugs Pharmaceutical Co., Ltd. | Sale of goods | - | 2,831.86 |
Sinopharm Group Shanxi Medical Devices Co., Ltd. | Sale of goods | - | 2,795.57 |
Sinopharm Holding (Shandong) Medicine Device Co., Ltd. | Sale of goods | - | 2,492.03 |
Sinopharm Holding Professional Pharmacy Songyuan Co., Ltd. | Sale of goods | - | 1,231.86 |
Sinopharm Holding Xinyu Co., Ltd. | Sale of goods | - | 632.94 |
Lecong Supply and Market Group Shunketang Medicine Co., Ltd. | Sale of goods | - | 58.41 |
Sinopharm Holding Chengdu Co., Ltd. | Sale of goods | - | (20,800.88) |
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. | Sale of goods | (2,946.27) | 107,351.54 |
Foshan Chengnan Fengliaoxing Medicial Hospital Co., Ltd. | Sale of goods | (4,998.99) | 134,895.13 |
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd. | Sale of goods | (6,009.23) | 2,371,766.36 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Lerentang Cangzhou Medicine Co., Ltd. | Sale of goods | (88,198.75) | 441,107.97 |
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd | Sale of goods | (103,082.20) | 2,637,455.35 |
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd. | Sale of goods | (137,280.72) | 4,540,492.31 |
Sinopharm Lerentang Baoding Trading Co., Ltd. | Sale of goods | (429,303.50) | 2,386,692.15 |
Sinopharm Group Medicine Logistic Co., Ltd. | rendering of services | 5,441,080.56 | 4,729,519.50 |
China National Medicines Co., Ltd. | rendering of services | 4,504,022.67 | 1,658,616.64 |
Sinopharm Holding Sub Marketing Center Co., Ltd. | rendering of services | 2,387,853.65 | 404,513.64 |
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd. | rendering of services | 475,699.61 | 498,556.31 |
Shenzhen Xinsheng Pharmaceutical Co., Ltd. | rendering of services | 317,734.86 | - |
Sinopharm Medical Instrument Guangxi Medical Technology Co., Ltd. | rendering of services | 297,578.29 | 135,813.29 |
Sinopharm Group Guangdong Medicine Device Co., Ltd. | rendering of services | 201,052.12 | 1,523.21 |
Wanbang Biopharmaceuticals | rendering of services | 182,950.57 | - |
Dalian Aleph Biomedical Co., Ltd. | rendering of services | 168,251.54 | - |
Sinopharm Baise Device Co., Ltd. | rendering of services | 114,133.20 | 104,923.15 |
Sinopharm Group Guangxi Medical Device Co., Ltd. | rendering of services | 112,186.46 | 25,173.94 |
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | rendering of services | 110,799.52 | 50,471.71 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | rendering of services | 102,102.06 | 102,102.49 |
Sinopharm Holding Shenyang Co., Ltd. | rendering of services | 78,800.39 | 2,452.83 |
Zhijun Pingshan | rendering of services | 64,164.13 | 83,186.24 |
Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. | rendering of services | 60,625.67 | 19,777.54 |
Sinopharm Medical Instrument (Foshan) Co., Ltd. | rendering of services | 46,593.49 | 89,941.38 |
Sinopharm Holding Shanxi Co., Ltd. | rendering of services | 43,018.86 | 31,886.79 |
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Lt | rendering of services | 33,584.90 | 51,415.10 |
Jiangsu Huanghe Medical Co., Ltd. | rendering of services | 1,981.14 | - |
Foshan Winteam Pharmaceutical Group Ltd. | rendering of services | 1,981.13 | - |
Sinopharm Holding Chongqing Taimin Medicine Co., Ltd. | rendering of services | 1,886.79 | - |
Sinopharm Shenzhen MEDICAL Equipment Co., Ltd. | rendering of services | 1,332.45 | - |
Sinopharm Holdings Chuangke Medical Technology (Shenzhen) Co., Ltd. | rendering of services | 1,098.87 | - |
Sinopharm Medical Instrument (Huizhou) Co., Ltd. | rendering of services | 915.07 | 173.96 |
Sinopharm Holding Benxi Co., Ltd. | rendering of services | 849.06 | - |
Sinopharm Holdings Anshan Co., Ltd. | rendering of services | 587.91 | - |
China National Scientific INSTRUMENTS&MATERIALS I&E Shenzhen Co., Ltd. | rendering of services | 63.40 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Type of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Zhijun | rendering of services | - | 1,299,722.86 |
Guangdong Jienuo | rendering of services | - | 252,229.35 |
Zhijun Trade | rendering of services | - | 157,142.88 |
Sinopharm Group Southwest Medicine Co., Ltd. | rendering of services | - | 79,480.00 |
Sinopharm Holding Jilin Co., Ltd. | rendering of services | - | 26,000.00 |
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. | rendering of services | - | 15,377.36 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Group Hubei Co., Ltd. | Sinopharm Holding Guoda Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | n principle, the term of equity custody starts from January 1, 2022 to December 31, 2024. At the same time, the term of custody of the target company shall be when the entrusting party or its related parties no longer hold the equity of the target company or the pharmaceutical of the target company. The retail business ceases to compete with Guoda Pharmacy in the social retail pharmacy industry (whichever is earlier). | Custodial agreement | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Holding Huzhou Ltd. | Zhejiang Int'l Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | Termination upon the occurrence of any of the following circumstances: (1) the entrusted party or its affiliates no longer hold equity interests in the subject company; (2) the subject company's pharmaceutical retail business no longer competes with the entrusted party in the same industry as social retail pharmacies. | Custodial agreement | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Huangshi Co., Ltd. | Sinopharm Holding Guoda Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | In principle, the term of equity custody starts from January 1, 2022 to December 31, 2024. At the same time, the term of custody of the target company shall be when the entrusting party or its related parties no longer hold the equity of the target company or the pharmaceutical of the target company. The retail business ceases to compete with Guoda Pharmacy in the social retail pharmacy industry (whichever is earlier). | Custodial agreement | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Group Jinhua Co., Ltd. | Zhejiang Int'l Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | Termination upon the occurrence of any of the following circumstances: (1) the entrusted party or its affiliates no longer hold equity interests in the subject company; (2) the subject company's pharmaceutical retail business no longer competes with the entrusted party in the same industry as social retail pharmacies. | Custodial agreement | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Medicine Holding Lishui Co., Ltd. | Zhejiang Int'l Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | Termination upon the occurrence of any of the following circumstances: (1) the entrusted party or its affiliates no longer hold equity interests in the subject company; (2) the subject company's pharmaceutical retail business no longer competes with the entrusted party in the same industry as social retail pharmacies. | Custodial agreement | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Commissioner/Contracting party | Trustee/Contractor | Type of assets entrusted/contracted | Commissioning/Contracting Start Date | Trustee/contracting termination date | Escrow revenue/contracting revenue pricing basis | Escrow income/contracting income recognized during the period |
Sinopharm Group Hubei Co., Ltd. | Sinopharm Holding Guoda Pharmacy Co., Ltd. | Equity Escrow | 27 Jun 22 | In principle, the term of equity custody starts from the date of signing the agreement and ends on December 31, 2024. At the same time, the term of custody of the target company shall be when the entrusting party or its affiliates no longer hold the equity of the target company or the pharmaceutical retail business of the target company. The date on which there is no more social retail pharmacy competition with Guoda Pharmacy (whichever is earlier) will be terminated. | Custodial agreement | - |
Sinopharm Group Co., Ltd. | Sinopharm Holding Guoda Pharmacy Co., Ltd. | Equity Escrow | 1 Jan 22 | 31 Dec 26 | Custodial agreement | - |
Table of the Group’s entrusted management/contracting status:
Nil
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases
(a) As the lessor | |||
Type of assets under leases | Income from leases For the six months ended 30 June 2022 | Income from leases For the six months ended 30 June 2021 | |
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | Building | 204,204.00 | 102,102.49 |
China National Pharmaceutical Group Guangdong MEDICAL Equipment Co., Ltd. | Building | 116,271.70 | - |
China National Medicines Co., Ltd. | Building | 61,754.94 | 52,554.86 |
Sinopharm Zhijun | Building | - | 957,142.86 |
Zhijun Trade | Building | - | 157,142.88 |
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | Building | - | 66,666.66 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Lerentang Investment Group Co., Ltd. | Building | - | - | - | - | 5,488,417.42 | 4,361,467.88 | 591,581.04 | 139,558.59 | 25,470,770.45 | - |
Jilin Tianheke Industry and Trade Co., Ltd. | Building | 428,197.00 | 1,794,900.19 | - | - | 2,063,440.08 | - | 3,771.18 | 4,889.78 | - | - |
Sinopharm Medicine Holding Yangzhou Co., Ltd. | Building | - | - | - | - | 1,866,023.82 | 1,866,023.82 | 259,284.97 | 324,161.24 | - | 15,254,943.30 |
Guangdong Jiyuantang Pharmaceutical Co., Ltd. | Building | - | - | - | - | 889,233.06 | 921,180.26 | 7,920.63 | 44,147.81 | - | - |
Zhang Yechuan | Building | - | - | - | - | 780,000.00 | 333,046.64 | 98,604.95 | 112,393.16 | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Sinopharm Holding Shanxi Jincheng Co., Ltd. | Building | - | 96,986.32 | - | - | 600,000.00 | 600,000.00 | 68.42 | 8,184.73 | - | 982,203.43 |
Wang Yixuan | Building | - | - | - | - | 560,000.00 | - | 52,966.37 | 139,292.57 | - | - |
Shaoguan Wujiang Muyang Pharmaceutical Information Consulting Co., Ltd. | Building | - | - | - | - | 508,827.42 | 508,827.42 | 116,279.29 | 132,111.50 | - | - |
Zhang Guitang | Building | - | - | - | - | 430,000.00 | 49,714.26 | 184,443.83 | 6,071.40 | 2,307,589.89 | - |
Xiong Xinyuan | Building | - | - | - | - | 355,000.00 | - | 53,813.71 | 58,762.07 | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Wang Yang | Building | - | - | - | - | 327,921.00 | 312,305.70 | 9,019.04 | 21,278.32 | - | 902,986.69 |
Li Fang | Building | - | - | - | - | 272,400.00 | 272,400.00 | 29,691.26 | 39,803.67 | - | - |
Shenyang Shengdiou Trading Co., Ltd. | Building | - | - | - | - | 271,202.19 | - | 38,633.13 | 52,897.74 | - | - |
Sinopharm Holding Beijing Co., Ltd. | Building | - | - | - | - | 264,394.23 | 269,047.62 | 21,291.42 | 15,290.50 | - | - |
Guangxi Yifang Tianjiang Pharmaceuticrl Co., Ltd. | Building | - | - | - | - | 257,389.00 | 257,389.00 | 60,145.24 | 68,099.87 | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Beijing Traditional Chinese Medicine Tianyuan Property Management Co., Ltd. | Building | - | - | - | - | 254,432.46 | 242,857.14 | 17,619.99 | 28,329.05 | - | - |
Beijing Huafang Investment Co., Ltd. | Building | 76,954.26 | - | - | - | 124,954.26 | 119,004.08 | 1,225.81 | 5,144.30 | - | - |
Gu Haiqun | Building | - | - | - | - | 109,302.87 | 104,099.04 | 3,661.42 | 7,928.29 | - | - |
Zhang Haiyan | Building | - | - | - | - | 90,000.00 | 85,714.26 | 6,474.40 | 9,777.03 | - | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. | Building | - | - | - | - | 25,458.72 | 50,917.44 | 4,738.18 | 6,662.54 | - | - |
Hunan Minsheng Tang Biotechnology Co., Ltd. | Building | - | - | - | - | - | 7,317,209.70 | - | - | - | - |
Nanjing Yuanguang Trading Co., Ltd. | Building | 831,206.77 | 1,082,390.13 | - | - | - | 1,077,247.29 | 9,983.46 | 386.94 | - | 422,480.04 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | ||||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||
Sinopharm Group Xinjiang Pharmaceutical Co., Ltd. | Building | - | - | - | - | - | 177,233.88 | - | 8,160.28 | - | - | |
Shenzhen Jiufeng Investment Co., Ltd. | Building | - | - | - | - | - | 92,279.59 | - | - | - | - | |
Taishan Qunkang Pharmacy Co., Ltd. | Equipment | 37,545.73 | 37,545.72 | - | - | - | 11,258.41 | - | - | - | - | |
Beijing GOLDEN Elephant Fortune Pharmacy Stock Co., Ltd. | Building | 5,729,873.40 | 5,490,816.74 | - | - | 5,777,358.49 | 5,536,320.75 | - | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Sinopharm Logistics Co., Ltd. | Equipment | 3,750,000.00 | 3,750,000.00 | - | - | - | 3,749,999.99 | - | - | - | - |
Sinopharm Logistics Co., Ltd. | Building | 3,540,000.00 | 3,540,000.00 | - | - | - | 3,539,999.99 | - | - | - | - |
Shenyang Pharmaceutical Co., Ltd. | Building | 3,425,634.67 | 3,518,551.97 | - | - | 3,454,166.66 | 3,543,964.78 | - | - | - | - |
Puer Songmao Medicine Group Co., Ltd. | Building | 991,403.95 | - | - | - | 1,999,240.00 | - | - | - | - | - |
Pingdingshan Pusheng Accordance Pharm. Chain Co., Ltd. | Building | 2,451,503.11 | 2,413,238.91 | - | - | 1,651,717.99 | - | - | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | ||
Sinopharm Xinjiang Xinte Pharmaceutical Co., Ltd. | Building | 935,464.72 | 3,030,746.03 | - | - | 943,217.19 | 2,748,595.47 | - | - | - | - |
Xishuangbanna Disheng Pharmaceutical Co., Ltd. | Building | 357,041.09 | 793,424.66 | - | - | 720,000.00 | 360,000.00 | - | - | - | - |
Sinopharm Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | Building | 260,297.57 | 36,695.88 | - | - | 524,909.53 | 215,968.52 | - | - | - | - |
Sinopharm Holding Xinjiang Xintekashi Pharmaceutical Co., Ltd. | Building | 196,982.90 | 215,254.27 | - | - | 428,937.87 | 216,191.74 | - | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Zhang Kai | Building | 173,602.75 | 218,219.00 | - | - | 345,000.00 | - | - | - | - | - |
Sinopharm Holding (China) Finance Leasing co., Ltd | Equipment | 225,692.82 | 235,568.99 | - | - | 255,033.22 | 462,670.01 | - | 13,063.93 | - | - |
Gu Jinhua | Building | 186,196.94 | 183,114.89 | - | - | 187,740.00 | 187,740.00 | - | - | - | - |
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. | Building | 117,055.19 | - | - | - | 118,025.28 | 118,025.28 | - | - | - | - |
Sinopharm Group Co., Ltd. | Building | 6,612,173.59 | 5,366,818.72 | - | - | - | 5,406,057.00 | - | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Sinopharm Shanghai Co., Ltd. | Building | 95,647.70 | 99,291.41 | - | - | - | 586,365.00 | - | - | - | |
Taishan Xiangranhui Trade Co., Ltd. | Building | - | 403,221.85 | - | - | - | 405,799.98 | - | - | - | |
Shanghai Baizhong Business Development (Group) Co., Ltd. | Building | 152,380.96 | - | - | - | - | - | 10,002.59 | 3,891.49 | 447,377.33 | - |
Zhao Xiaoxiao | Building | 30,904.11 | 28,602.74 | - | - | - | - | 1,152.11 | - | 207,520.47 | - |
Zheng Jing | Building | - | - | - | - | - | - | 1,110.33 | 1,598.15 | 267,756.07 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Lessors | Types of assets under leases | Rental costs for short-term leases and low-value asset leases with simplified processing | Variable lease payments not included in the measurement of lease liabilities | Rental payments | Interest expense on lease liabilities assumed | Increase in right-of-use assets (amount of right-of-use assets added by new affiliated leases) | |||||
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Sinopharm Holding Ningxia Co., Ltd. | Building | 14,194.29 | 15,471.77 | - | - | - | - | - | - | - | - |
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | Building | 73,448.45 | 73,448.45 | - | - | - | - | - | - | - | - |
Zhang Zhenfang | Building | 201,250.00 | 201,250.00 | - | - | - | - | - | - | - | - |
Xinjiang Baitong Property Management Co., Ltd. | Building | 3,967.13 | - | - | - | - | - | - | - | - | - |
Wang Dongdong | Building | - | 37,547.70 | - | - | - | - | - | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
(4) Related party transactions - Financing
Related Party | Amount | Inception Date | Maturity Date | Note |
Borrow from | ||||
Sinopharm Group Finance Co., Ltd. | 4,581,694.14 | 14 Jan 2022 | 29 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 11,460,983.72 | 17 Jan 2022 | 17 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 12,952,711.02 | 18 Jan 2022 | 18 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 10,201,698.91 | 18 Jan 2022 | 31 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 8,143,675.05 | 20 Jan 2022 | 20 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 18,362,109.53 | 20 Jan 2022 | 31 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 15,549,777.49 | 21 Jan 2022 | 31 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 6,437,993.18 | 25 Jan 2022 | 25 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 39,995,842.36 | 25 Jan 2022 | 25 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 50,000,000.00 | 28 Jan 2022 | 28 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 19,157,104.09 | 29 Jan 2022 | 29 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 20,950,310.84 | 30 Jan 2022 | 30 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 10,521,252.43 | 17 Feb 2022 | 17 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 13,277,395.44 | 18 Feb 2022 | 30 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 9,735,750.45 | 22 Feb 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 12,508,032.26 | 24 Feb 2022 | 24 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 3,654,799.40 | 25 Feb 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 50,000,000.00 | 15 Mar 2022 | 15 Mar 2023 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 25,000,000.00 | 16 Mar 2022 | 15 Mar 2023 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 18,561,004.29 | 24 Mar 2022 | 24 Jun 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 20,882,647.12 | 1 Apr 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 66,923,292.74 | 2 Apr 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 10,501,537.53 | 6 Apr 2022 | 6 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 5,710,440.09 | 7 Apr 2022 | 8 Oct 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 9,989,616.10 | 11 Apr 2022 | 11 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 23,311,533.65 | 13 Apr 2022 | 13 Oct 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 9,902,885.33 | 20 Apr 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 21,615,699.33 | 21 Apr 2022 | 21 Oct 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 26,688,466.35 | 26 Apr 2022 | 26 Oct 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 2,127,311.90 | 27 Apr 2022 | 1 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 5,290,400.00 | 27 Apr 2022 | 26 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 8,578,763.14 | 27 Apr 2022 | 8 Oct 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 24,003,101.55 | 28 Apr 2022 | 28 Jul 2022 | Short-term borrowings |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Amount | Inception Date | Maturity Date | Note |
Borrow from | ||||
Sinopharm Group Finance Co., Ltd. | 25,178,973.40 | 9 May 2022 | 9 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 36,082,085.04 | 10 May 2022 | 10 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 14,155,733.97 | 10 May 2022 | 10 Nov 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 15,142,718.12 | 16 May 2022 | 16 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 33,000,000.00 | 16 May 2022 | 16 Nov 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 33,152,811.99 | 20 May 2022 | 20 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 24,301,867.45 | 24 May 2022 | 24 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 4,918,260.04 | 26 May 2022 | 25 Nov 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 29,176,472.57 | 30 May 2022 | 30 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 70,194,568.98 | 1 Jun 2022 | 1 Sep 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 31,220,496.54 | 24 Jun 2022 | 23 Sep 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 39,960,884.49 | 29 Jun 2022 | 29 Dec 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 200,000,000.00 | 26 Jan 2022 | 26 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 100,000,000.00 | 27 Jan 2022 | 27 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 5,093,477.36 | 13 Jan 2022 | 13 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 7,211,500.00 | 21 Jan 2022 | 21 Apr 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 6,858,600.00 | 17 Feb 2022 | 17 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 5,770,613.20 | 25 Feb 2022 | 25 May 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 7,387,982.36 | 15 Apr 2022 | 15 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 2,785,458.00 | 25 Apr 2022 | 25 Jul 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 7,406,166.80 | 13 May 2022 | 13 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 2,027,376.00 | 19 May 2022 | 19 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 4,070,860.01 | 31 May 2022 | 31 Aug 2022 | Short-term borrowings |
Sinopharm Group Finance Co., Ltd. | 3,758,607.41 | 26 Nov 2021 | 26 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,515,104.15 | 30 Nov 2021 | 30 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 26,256,887.32 | 24 Dec 2021 | 24 Oct 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 4,814,223.58 | 28 Dec 2021 | 28 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,000,000.00 | 13 Jan 2022 | 13 Jul 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 22,607,725.39 | 24 Jan 2022 | 24 Nov 2022 | Discount on bank acceptance bill |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Party | Amount | Inception Date | Maturity Date | Note |
Borrow from | ||||
Sinopharm Group Finance Co., Ltd. | 2,390,397.74 | 28 Jan 2022 | 25 Oct 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,000,000.00 | 10 Feb 2022 | 10 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,000,000.00 | 15 Feb 2022 | 15 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,504,056.92 | 16 Feb 2022 | 16 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,000,000.00 | 17 Feb 2022 | 17 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,000,000.00 | 18 Feb 2022 | 19 May 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,005,059.95 | 18 Feb 2022 | 19 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 13,081,903.63 | 23 Feb 2022 | 23 Dec 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 8,533,553.63 | 25 Feb 2022 | 25 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,752,706.28 | 2 Mar 2022 | 2 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 8,216,532.88 | 3 Mar 2022 | 3 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,403,674.00 | 3 Mar 2022 | 3 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 4,614,657.80 | 8 Mar 2022 | 8 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,650,254.64 | 11 Mar 2022 | 11 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 4,509,431.97 | 15 Mar 2022 | 15 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 8,824,287.96 | 16 Mar 2022 | 16 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,400,000.00 | 16 Mar 2022 | 16 Sep 2022 | Discount on bank acceptance bill |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Party | Amount | Inception Date | Maturity Date | Note |
Borrow from | ||||
Sinopharm Group Finance Co., Ltd. | 4,000,000.00 | 18 Mar 2022 | 18 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,355,848.94 | 22 Mar 2022 | 20 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,353,278.20 | 23 Mar 2022 | 21 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 28,579,985.36 | 23 Mar 2022 | 23 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,220,226.56 | 24 Mar 2022 | 24 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 725,340.88 | 30 Mar 2022 | 22 May 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 500,000.00 | 30 Mar 2022 | 16 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,853,735.49 | 30 Mar 2022 | 17 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 19,000,000.00 | 30 Mar 2022 | 18 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 600,000.00 | 30 Mar 2022 | 25 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,618,112.76 | 30 Mar 2022 | 20 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,768,964.11 | 30 Mar 2022 | 21 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 6,448,329.08 | 30 Mar 2022 | 25 Oct 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,839,720.77 | 31 Mar 2022 | 17 Jun 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 2,280,054.97 | 31 Mar 2022 | 10 Jul 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 603,523.00 | 31 Mar 2022 | 28 Jul 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 712,370.09 | 31 Mar 2022 | 21 Aug 2022 | Discount on bank acceptance bill |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | Amount | Inception Date | Maturity Date | Note |
Borrow from | ||||
Sinopharm Group Finance Co., Ltd. | 1,716,602.32 | 31 Mar 2022 | 24 Aug 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 834,825.38 | 31 Mar 2022 | 10 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 17,000,000.00 | 31 Mar 2022 | 21 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 1,243,588.88 | 31 Mar 2022 | 23 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 23,428,197.29 | 31 Mar 2022 | 28 Sep 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 783,392.65 | 31 Mar 2022 | 23 Nov 2022 | Discount on bank acceptance bill |
Sinopharm Group Finance Co., Ltd. | 566,705.70 | 31 Mar 2022 | 24 Nov 2022 | Discount on bank acceptance bill |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
(5) Related party asset transfer
Related party | Types of transaction | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Shanghai Tongyu Information Technology Co., Ltd. | Purchase of an intangible asset | - | 161,045.25 |
Shanghai Tongyu Information Technology Co., Ltd. | Purchase of a construction in progress | - | 103,797.89 |
(6) Remuneration for key management personnel
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | ||
Remuneration for key management personnel | 2,875,002.00 | 3,729,169.00 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
(7) Other related party transactions
Interest expense | |||
Related party | Types of transactions | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Group Finance Co., Ltd. | Payment of finance companies loan interest | 9,929,959.40 | 5,933,752.64 |
Sinopharm Group Finance Co., Ltd. | Payment of notes discount interest | 2,755,665.70 | 8,036,560.44 |
China Pharmaceutical Group Co., Ltd | Payment of entrusted loan interest | 611,679.44 | 611,679.44 |
Jilin Yihe Investment Consulting Co., Ltd | Payment of entrusted loan interest | - | 1,289,047.50 |
13,297,304.54 | 15,871,040.02 | ||
Interest income | |||
Related party | Types of transactions | For the six months ended 30 June 2022 | For the six months ended 30 June 2021 |
Sinopharm Group Finance Co., Ltd. | Deposit interest | 68,478.73 | 190,537.17 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Sinopharm Holding Sub Marketing Center Co., Ltd. | 150,246,571.76 | - | 171,358.08 | - |
Accounts receivable | Foshan Chancheng Pharmaceutical Co., Ltd. | 49,143,104.57 | 342,906.83 | 65,478,562.26 | 462,468.44 |
Accounts receivable | Sinopharm Group | 28,741,689.58 | - | 47,281,052.10 | - |
Accounts receivable | Fosun Health Technology (Jiangsu) Co., Ltd. | 13,452,790.75 | - | - | - |
Accounts receivable | Sinopharm Holding Hainan Co., Ltd. | 12,840,398.47 | 31.50 | 7,231,524.03 | - |
Accounts receivable | Shanghai Beiyi Guoda Pharmaceutical Co., Ltd. | 10,726,478.86 | - | 10,107,687.43 | - |
Accounts receivable | Sinopharm Health Online Co., Ltd. | 10,046,668.30 | - | 10,199,385.40 | - |
Accounts receivable | Sinopharm Lerentang Medicine Co., Ltd. | 7,660,234.30 | 12,898,932.46 | - | |
Accounts receivable | Sinopharm Holding Jinzhou Co., Ltd. | 5,967,033.85 | - | 3,018,576.58 | - |
Accounts receivable | Sinopharm Holding Hainan Hongyi Co., Ltd. | 5,371,319.04 | - | 6,408,518.60 | - |
Accounts receivable | Sinopharm Holding Wenzhou Co., Ltd. | 5,038,204.28 | - | 3,340,580.04 | - |
Accounts receivable | Shenzhen Hengsheng Hospital | 5,003,818.98 | - | 5,970,504.45 | |
Accounts receivable | Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd. | 4,356,479.10 | - | 4,363,269.54 | - |
Accounts receivable | Chancheng Central Hospital of Foshan City | 4,321,338.03 | 28,813.61 | 9,512,634.08 | 73,064.98 |
Accounts receivable | Guangzhou New City Hospital Co. , Ltd. | 3,530,345.11 | - | - | - |
Accounts receivable | Sinopharm Holding Hubei Co., Ltd. | 3,406,471.17 | - | 1,134,254.71 | - |
Accounts receivable | Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | 3,152,973.56 | - | 5,199,441.83 | - |
Accounts receivable | Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd. | 3,127,462.10 | - | 6,350,115.15 | - |
Accounts receivable | Foshan Chanyixing Medicine Development Co., Ltd. | 3,092,493.91 | 20,654.37 | 2,100,192.09 | 12,889.35 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Sinopharm Holding Shandong Co., Ltd. | 3,020,348.88 | - | 1,287,142.05 | - |
Accounts receivable | Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. | 2,921,795.61 | - | 4,816,881.56 | - |
Accounts receivable | Shanghai Merro Pharmaceutical Co., Ltd. | 2,753,219.10 | - | 2,760,284.00 | - |
Accounts receivable | Sinopharm Holding Henan Co., Ltd. | 2,523,366.34 | - | 2,290,850.82 | - |
Accounts receivable | Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. | 2,437,578.93 | - | 315,743.01 | - |
Accounts receivable | Sinopharm Holding Beijing Co., Ltd. | 2,409,020.55 | - | 3,190,026.19 | - |
Accounts receivable | Sinopharm Holding Anshan Co., Ltd. | 2,070,739.60 | - | 231,929.14 | - |
Accounts receivable | Sinopharm Group Medicine Logistic Co., Ltd. | 2,068,735.25 | - | 169,680.00 | - |
Accounts receivable | Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. | 2,008,709.51 | - | 1,149,961.88 | - |
Accounts receivable | Sinopharm Holding Shanxi Co., Ltd. | 1,885,768.15 | - | 1,356,765.58 | - |
Accounts receivable | Sinopharm Holding Yangzhou Co., Ltd. | 1,842,956.17 | - | 953,620.90 | - |
Accounts receivable | Sinopharm Holding Tianjin Co., Ltd. | 1,632,557.72 | - | 701,659.92 | - |
Accounts receivable | Sinopharm Holding Jilin Co., Ltd. | 1,470,028.18 | - | 160,179.70 | - |
Accounts receivable | Sinopharm Holding Hunan Co., Ltd. | 1,452,606.41 | - | 840,572.31 | - |
Accounts receivable | Shanghai Guodaai Pharmacy Co., Ltd. | 1,384,329.12 | - | 196,142.04 | - |
Accounts receivable | Sinopharm Holding Shanxi Co., Ltd. | 1,288,115.76 | - | 196,356.42 | - |
Accounts receivable | Sinopharm Holdings Beijing Huahong co., Ltd. | 1,243,113.01 | - | 1,490,684.54 | - |
Accounts receivable | Sinopharm Holding Nantong Co., Ltd. | 1,217,047.97 | - | 255,871.32 | - |
Accounts receivable | Sinopharm Holding Benxi Co., Ltd. | 1,123,401.97 | - | - | - |
Accounts receivable | Sinopharm Holding Gansu Co., Ltd. | 940,700.22 | - | 394,600.62 | - |
Accounts receivable | Sinopharm Holding Inner Mongolia Co., Ltd. | 929,900.60 | - | - | - |
Accounts receivable | Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | 903,907.60 | - | 1,125,442.00 | - |
Accounts receivable | Sinopharm Holding Yunnan Co., Ltd. | 871,407.11 | - | 967,537.06 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | 861,516.15 | - | 1,911,926.34 | - |
Accounts receivable | Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | 812,461.01 | - | 443,582.00 | - |
Accounts receivable | Shanghai Guoda Shengxin Pharmacy Co., Ltd. | 692,660.81 | - | 522,931.21 | - |
Accounts receivable | Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. | 567,400.00 | - | 690,415.60 | - |
Accounts receivable | Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | 567,156.83 | - | 1,368,182.85 | - |
Accounts receivable | Sinopharm Holding Shanghai Biomedicine Co., Ltd. | 556,560.00 | - | 242,784.00 | - |
Accounts receivable | Sinopharm Holding Anhui Co., Ltd. | 499,519.06 | - | 612,838.36 | - |
Accounts receivable | Sinopharm Holding Dalian Co., Ltd. | 487,222.13 | - | 379,440.63 | - |
Accounts receivable | Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | 417,036.44 | - | 808,618.62 | - |
Accounts receivable | Sinopharm Holding Shenyang Co., Ltd. | 408,000.00 | - | 332,160.00 | - |
Accounts receivable | China National Medicines Co., Ltd. | 364,618.26 | - | 266,427.06 | - |
Accounts receivable | Shenzhen Xinsheng Pharmaceutical Co., Ltd. | 360,590.82 | - | - | - |
Accounts receivable | Sinopharm Sichuan Pharmaceutical Co., Ltd. | 341,307.76 | - | 892,243.77 | - |
Accounts receivable | Sinopharm Holding Guizhou Co., Ltd. | 294,138.16 | - | 35,603.48 | |
Accounts receivable | Shanghai Guoda Lingyun Pharmacy Co., Ltd. | 249,668.91 | - | 264,849.72 | - |
Accounts receivable | Sinopharm Holding Tongren Co., Ltd. | 247,406.00 | - | 198,715.20 | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Sinopharm Holding Xuzhou Co., Ltd. | 218,432.03 | - | 143,015.94 | - |
Accounts receivable | Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | 181,495.40 | - | 269,385.42 | - |
Accounts receivable | Sinopharm Group Southwest Medicine Co., Ltd. | 156,521.04 | - | 360,415.22 | - |
Accounts receivable | Sinopharm Holding Jiangxi Co., Ltd. | 151,570.23 | - | 421,243.00 | - |
Accounts receivable | Dalian Aleph Biomedical Co., Ltd. | 138,717.60 | - | - | - |
Accounts receivable | Shanghai Liyi Drug Store Co., Ltd. | 128,641.37 | - | 12,853.00 | - |
Accounts receivable | Sinopharm Holding Ningxia Co., Ltd. | 117,377.90 | - | 127,072.00 | - |
Accounts receivable | Sinopharm Guangxi Medical Technology Co., Ltd. | 112,405.74 | - | 370,628.89 | - |
Accounts receivable | Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. | 100,653.89 | - | 101,141.01 | - |
Accounts receivable | Sinopharm Holding Qinghai Co., Ltd. | 97,882.16 | - | 108,298.26 | - |
Accounts receivable | Sinopharm Lerentang Baoding Trading Co., Ltd. | 87,642.44 | - | 2,115,416.23 | - |
Accounts receivable | Sinopharm Group Shaanxi Co., Ltd. | 82,030.08 | - | 62,513.05 | - |
Accounts receivable | Guoyao Instrument Baise Co., Ltd. | 57,199.19 | - | - | - |
Accounts receivable | Chinese Medicine Lerentang Qinhuangdao Pharmaceutical Co., Ltd. | 56,892.50 | - | - | - |
Accounts receivable | Sinopharm Lerentang Hengshui Medicine Co., Ltd. | 48,015.10 | - | - | - |
Accounts receivable | Sinopharm Lerentang Tangshan Medicine Co., Ltd. | 34,247.55 | - | 1,908,215.11 | - |
Accounts receivable | Sinopharm Holding Honghe Co., Ltd. | 32,580.60 | - | 56,747.40 | - |
Accounts receivable | Sinopharm Lerentang Chengde Medicine Co., Ltd. | 31,797.46 | - | - | - |
Accounts receivable | Sinopharm Holding Jiangsu Co., Ltd. | 25,928.10 | - | 6,147.90 | - |
Accounts receivable | Sinopharm Zhijun (SHENZHEN) Pingshan Pharmaceutical Co., Ltd. | 24,876.00 | - | - | - |
Accounts receivable | Guangxi Fangning Pharmaceutical Co., Ltd. | 24,188.00 | - | - | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Sinopharm Medicine Holding Tianjin North Pharmaceutical Co., Ltd. | 24,000.00 | - | - | - |
Accounts receivable | Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd. | 23,412.19 | - | 721,159.72 | - |
Accounts receivable | Sinopharm Group Guangxi Medical Device Co., Ltd. | 19,863.53 | - | 18,785.23 | - |
Accounts receivable | Sinopharm Holdings Professional Pharmacy Chain (Hainan) Co., Ltd. | 19,393.90 | - | 28,785.90 | - |
Accounts receivable | Chinese Medicine Lerentang Handan Medicine Co., Ltd. | 14,694.62 | - | - | - |
Accounts receivable | China National Pharmaceutical Group Guangdong MEDICAL Equipment Co., Ltd. | 14,688.00 | - | - | - |
Accounts receivable | Sinopharm Fengliaoxing Medical Hospital Co., Ltd. | 12,373.32 | 102.23 | 27,591.69 | 275.92 |
Accounts receivable | Sinopharm Holding Zunyi Co., Ltd. | 12,238.80 | - | 36,840.30 | - |
Accounts receivable | Sinopharm Holding Fujian Co., Ltd. | 8,305.20 | - | 211,858.00 | - |
Accounts receivable | Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. | 7,216.92 | - | - | - |
Accounts receivable | Sinopharm Holding Chuxiong Co., Ltd. | 6,446.00 | - | 10,159.90 | - |
Accounts receivable | Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. | 6,364.47 | - | 4,507.11 | - |
Accounts receivable | Sinopharm Holdings Chaoyang Co., Ltd. | 4,032.00 | - | - | - |
Accounts receivable | Chinese Medicine Lerentang Zhangjiakou Pharmaceutical Co., Ltd. | 2,452.28 | - | - | - |
Accounts receivable | Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd. | 2,012.50 | 11.84 | 53.28 | 0.53 |
Accounts receivable | Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. | 1,688.05 | - | 4,583.10 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Foshan Chengnan Fengliaoxing Medical Hospital Co., Ltd. | 527.60 | 5.28 | 1,525.37 | 15.25 |
Accounts receivable | Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. | 396.44 | - | 1,967.13 | - |
Accounts receivable | Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. | 283.10 | - | 3,904.85 | - |
Accounts receivable | Sinopharm Group Fuzhou Co., Ltd. | 176.00 | - | - | - |
Accounts receivable | Sinopharm Group Heilongjiang Co., Ltd. | 135.00 | - | - | - |
Accounts receivable | Sinopharm Group Suzhou Co., Ltd. | 55.80 | - | 1.60 | - |
Accounts receivable | Sinopharm Holding Shaanxi Pharmacy Co., Ltd. | 28.80 | - | - | - |
Accounts receivable | Sinopharm Holdings Tongliao Co., Ltd. | 14.40 | - | - | - |
Accounts receivable | Sinopharm Holdings Weifang Co., Ltd. | 8.00 | - | - | - |
Accounts receivable | Sinopharm Holdings Changzhou Co., Ltd. | 3.20 | - | - | - |
Accounts receivable | Sinopharm Holdings Longyan Co., Ltd. | 1.60 | - | 0.40 | - |
Accounts receivable | Sinopharm Lerentang Zhangjiakou Pharmaceutical Trading Co., Ltd. | - | - | 244,330.30 | - |
Accounts receivable | Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. | - | - | 241,098.79 | - |
Accounts receivable | Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd. | - | - | 128,717.07 | - |
Accounts receivable | Sinopharm Holding Wuxi Co., Ltd. | - | - | 122,175.00 | - |
Accounts receivable | Sinopharm Holding Anshun Co., Ltd. | - | - | 72,413.70 | - |
Accounts receivable | Sinopharm Lerentang Shijiazhuang Traditional Chinese Medicine Co., Ltd. | - | - | 65,745.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Accounts receivable | Shenzhen Chindex Medical Beauty Clinic | - | - | 13,800.00 | - |
Accounts receivable | Sinopharm Holding (Shandong) Medical Device Co., Ltd. | - | - | 2,112.00 | - |
Accounts receivable | Sinopharm Holding Dalian Hecheng Co., Ltd. | - | - | 741.95 | - |
Note receivable | Sinopharm Holding Hainan Co., Ltd. | 27,543,463.81 | - | 17,445,992.19 | - |
Note receivable | Sinopharm Holding Hubei Co., Ltd. | 1,672,272.00 | - | - | - |
Note receivable | Sinopharm Holding Hainan Hongyi Co., Ltd. | 823,017.86 | - | 1,085,621.78 | - |
Note receivable | Sinopharm Holding Anshan Co., Ltd. | 498,000.00 | - | - | - |
Note receivable | Sinopharm Holding Jinzhou Co., Ltd. | 290,394.60 | - | - | - |
Note receivable | Sinopharm Holding Benxi Co., Ltd. | 203,675.28 | - | 352,530.00 | - |
Note receivable | Sinopharm Holding Shanxi Co., Ltd. | - | - | 995,708.88 | - |
Note receivable | Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | - | - | 466,015.90 | - |
Note receivable | Sinopharm Holding Beijing Co., Ltd. | - | - | 404,893.56 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Other receivable | Sinopharm Group Zhijun (Suzhou) Pharmaceutical Co., Ltd. | 46,334,222.24 | 46,334,222.24 | 46,334,222.24 | 46,334,222.24 |
Other receivable | Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd. | 3,214,529.94 | - | 577,674.47 | - |
Other receivable | Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | 2,000,000.00 | - | 3,870,978.00 | - |
Other receivable | Sinopharm Holding Sub Marketing Center Co., Ltd. | 1,804,020.87 | - | 438,891.84 | - |
Other receivable | Sinopharm Group Medicine Logistic Co., Ltd. | 1,508,427.90 | - | 1,442,469.62 | - |
Other receivable | Sinopharm Holding (China) Financing Lease Co., Ltd. | 1,199,270.14 | - | 1,140,000.00 | - |
Other receivable | Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. | 400,000.00 | - | 900,000.00 | - |
Other receivable | Sinopharm Holding Shanghai Biomedicine Co., Ltd. | 400,000.00 | - | 400,000.00 | - |
Other receivable | Chongqing Taiji Industry (Group) Co., Ltd. | 300,000.00 | - | - | - |
Other receivable | Guangdong Jiyuantang Development Co., Ltd. | 283,300.00 | - | 283,300.00 | - |
Other receivable | Sinopharm Guangxi Medical Technology Co., Ltd. | 251,410.38 | - | 96,861.72 | - |
Other receivable | Sinopharm Group Fujian Co., Ltd. | 113,921.03 | - | - | - |
Other receivable | Sinopharm Health Online Co., Ltd. | 100,000.00 | - | 100,000.00 | - |
Other receivable | Zhejiang Dongfang Pharmaceutical Co., Ltd. | 59,378.34 | - | - | - |
Other receivable | Southwest Pharmaceutical Co., Ltd. | 50,000.00 | - | 50,000.00 | - |
Other receivable | Gu Jinhua | 47,000.00 | - | 47,000.00 | - |
Other receivable | Jiangsu Wanbang Pharmaceutical Marketing & Distribution Co., Ltd. | 35,437.00 | - | - | - |
Other receivable | Zhang Haiyan | 30,000.00 | - | 30,000.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Other receivable | Sinopharm Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | 20,000.00 | - | - | - |
Other receivable | Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. | 18,500.00 | 1,850.00 | 41,558.00 | - |
Other receivable | Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. | 10,000.00 | - | 10,000.00 | - |
Other receivable | Xinjiang Baitong Property Service Co., Ltd. | 2,000.00 | - | 2,000.00 | - |
Other receivable | Sinopharm Group Guangdong Medicine Device Co., Ltd. | 1,989.91 | - | 936.48 | - |
Other receivable | Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. | 1,667.70 | - | 1,667.70 | - |
Other receivable | Sinopharm Group Guangxi Medical Device Co., Ltd. | 1,376.18 | - | 1,910.43 | - |
Other receivable | China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd. | 775.20 | - | 1,550.40 | - |
Other receivable | Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. | 57.60 | - | 101.60 | - |
Other receivable | China National Medical Device (Hui Zhou) Co., Ltd. | 44.93 | - | - | - |
Other receivable | Shanghai Shyndec Pharmaceutical Co., Ltd. | - | - | 983,940.00 | - |
Other receivable | Sinopharm (Tianjin) Medical Equipment Co., Ltd. | - | - | 248,000.00 | - |
Other receivable | Sinopharm Holding Tongliao Co., Ltd. | - | - | 231,000.00 | - |
Other receivable | Sinopharm Holding Inner Mongolia Co., Ltd. | - | - | 142,500.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Other receivable | Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd. | - | - | 63,108.18 | - |
Other receivable | Chancheng Central Hospital of Foshan City | - | - | 40,000.00 | - |
Other receivable | Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | - | - | 27,476.72 | - |
Other receivable | Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd. | - | - | 20,000.00 | - |
Other receivable | Sinopharm Shenzhen Medicine Device Co., Ltd. | - | - | 4,116.60 | - |
Other receivable | Jilin Ronghe Real Estate Development Co., Ltd. | - | - | 1,577.93 | - |
Other receivable | Dalian Yalifeng Biopharmaceutical Co., Ltd. | - | - | 1.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Advances to suppliers | Southwest Pharmaceutical Co., Ltd. | 3,954,496.59 | - | 3,533,846.50 | - |
Advances to suppliers | Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. | 2,378,205.01 | - | - | - |
Advances to suppliers | Sinopharm Holding Sub Marketing Center Co., Ltd. | 2,327,120.61 | - | 76,301.97 | - |
Advances to suppliers | Chongqing Taiji Group TongJunGe Pharmaceutical Co. Ltd. | 1,312,459.05 | - | 1,294,310.50 | - |
Advances to suppliers | Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. | 947,517.00 | - | 156,582.46 | - |
Advances to suppliers | Sinopharm Group Guorui Medicine Co., Ltd. | 872,915.51 | - | 737,263.10 | - |
Advances to suppliers | Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | 850,000.00 | - | 8,700.00 | - |
Advances to suppliers | Xishuangbanna Disheng Pharmaceutical Co., Ltd. | 806,575.34 | - | 880,000.00 | - |
Advances to suppliers | Sinopharm Foreign Trade (Beijing) Co., Ltd. | 434,400.00 | - | 9,318.58 | - |
Advances to suppliers | Sinopharm Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | 361,000.37 | - | - | - |
Advances to suppliers | Chongqing Yaoyou Pharmaceutical Co., Ltd. | 292,839.93 | - | 311,317.00 | - |
Advances to suppliers | Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | 277,177.95 | - | 424,726.49 | - |
Advances to suppliers | Sinopharm Holding Xinjiang Xintekashi Pharmaceutical Co., Ltd. | 202,601.48 | - | - | - |
Advances to suppliers | Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. | 181,616.18 | - | 51,193.60 | - |
Advances to suppliers | Zhangkai | 171,397.25 | - | - | - |
Advances to suppliers | Sinopharm Holding Beijing Co., Ltd. | 150,000.00 | - | - | - |
Advances to suppliers | Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. | 150,000.00 | - | 63,388.34 | - |
Advances to suppliers | Taiji Group Co., Ltd. | 140,688.00 | - | 120,210.80 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Advances to suppliers | Jiangxi Erye Medicine Marketing Co., Ltd. | 122,057.22 | - | 311,318.12 | - |
Advances to suppliers | Yun Nan Sinopharm Shares Holding Dong Chang Company | 100,267.43 | - | - | - |
Advances to suppliers | Fresenius Kabi SSPC | 86,892.39 | - | - | - |
Advances to suppliers | China National Pharmaceutical Group Guangdong MEDICAL Equipment Co., Ltd. | 57,000.00 | - | - | - |
Advances to suppliers | Sinopharm Holdings Taizhou Co., Ltd. | 42,347.20 | - | - | - |
Advances to suppliers | Shenyang Red Flag Pharmaceutical Co., Ltd. | 37,224.00 | - | - | - |
Advances to suppliers | Healthman Pharma Co., Ltd. | 35,226.00 | - | - | - |
Advances to suppliers | Sinopharm Holdings Tongliao Co., Ltd. | 31,070.67 | - | - | - |
Advances to suppliers | China National Medicines Corporation Ltd. | 25,942.21 | - | - | - |
Advances to suppliers | Sinopharm Sanyi | 22,168.00 | - | - | - |
Advances to suppliers | Hubei Sinopharm Zhonglian Medicine Co., Ltd. | 13,529.23 | - | 13,529.23 | - |
Advances to suppliers | Sinopharm Group Southwest Medicine Co., Ltd. | 8,606.16 | - | 25,386.90 | - |
Advances to suppliers | Foshan Winteam Pharmaceutical Group Ltd. | 7,483.82 | - | - | - |
Advances to suppliers | Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. | 7,256.35 | - | 1,946.55 | - |
Advances to suppliers | Guilin Pharmaceutical Co., Ltd. | 6,847.43 | - | - | - |
Advances to suppliers | Guangzhou Tianren Pharmaceutical Co., Ltd. | 4,111.65 | - | - | - |
Advances to suppliers | Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. | 1,331.87 | - | - | - |
Advances to suppliers | Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd. | 701.96 | - | 701.96 | - |
Advances to suppliers | Shanghai Shyndec Pharmaceutical Co., Ltd. | 61.20 | - | 61.20 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Advances to suppliers | Sinopharm Holding Shanxi Co., Ltd. | - | - | 19,702,020.00 | - |
Advances to suppliers | Sinopharm Group Shanxi Co., Ltd. | - | - | 17,500,000.00 | - |
Advances to suppliers | Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | - | - | 1,568,550.89 | - |
Advances to suppliers | Sinopharm Holding Hubei Co., Ltd. | - | - | 1,263,180.42 | - |
Advances to suppliers | Nanjing Yuanguang Trading Co., Ltd. | - | - | 1,060,382.05 | - |
Advances to suppliers | Sichuan Hexin Pharmaceutical Co., Ltd. | - | - | 710,539.19 | - |
Advances to suppliers | Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. | - | - | 626,400.00 | - |
Advances to suppliers | Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. | - | - | 153,853.81 | - |
Advances to suppliers | Fosun Kite Biotechnology Co., Ltd. | - | - | 136,103.10 | - |
Advances to suppliers | Sinopharm Weiqida Pharmaceutical Co., Ltd. | - | - | 71,705.64 | - |
Advances to suppliers | Sinopharm Holding Hunan Co., Ltd. | - | - | 69,804.80 | - |
Advances to suppliers | Suzhou Erye Pharmaceutical Limited Company | - | - | 62,732.38 | - |
Advances to suppliers | Sinopharm Yixin Pharmaceutical Co., Ltd. | - | - | 58,896.00 | - |
Advances to suppliers | Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. | - | - | 18,428.18 | - |
Advances to suppliers | Chengdu Rongsheng Pharmacy Co., Ltd. | - | - | 5,440.00 | - |
Advances to suppliers | Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | - | - | 4,998.68 | - |
Advances to suppliers | Sinopharm Guangdong Global Pharmaceutical Co., Ltd. | - | - | 4,708.38 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 | ||
Gross carrying amount | Provision for bad debt | Gross carrying amount | Provision for bad debt | ||
Advances to suppliers | Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. | - | - | 4,417.91 | - |
Advances to suppliers | Zhejiang Dongfang Pharmaceutical Co., Ltd. | - | - | 4,261.50 | - |
Advances to suppliers | Xinjiang Baitong Property Service Co., Ltd. | - | - | 3,514.30 | - |
Advances to suppliers | Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. | - | - | 3,371.29 | - |
Advances to suppliers | China National Pharmaceutical Industry Co., Ltd. | - | - | 3,001.60 | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Sinopharm Holding Sub Marketing Center Co., Ltd. | 183,466,297.12 | 100,465,193.70 |
Accounts Payable | China National Medicines Co., Ltd. | 90,407,868.16 | 52,212,994.39 |
Accounts Payable | Sinopharm Holding Shanxi Co., Ltd. | 88,328,359.17 | 10,842,699.12 |
Accounts Payable | Sinopharm Lerentang Medicine Co., Ltd. | 75,396,268.11 | 1,772,417.74 |
Accounts Payable | Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | 74,756,678.16 | 31,979,965.48 |
Accounts Payable | Sinopharm Holding Shenyang Co., Ltd. | 69,775,002.13 | 14,164,516.46 |
Accounts Payable | Sinopharm Group | 41,213,453.09 | 33,021,236.10 |
Accounts Payable | Sinopharm Holding Shanxi Co., Ltd. | 37,527,900.03 | 1,729,364.11 |
Accounts Payable | Jiangsu Wanbang Pharmacy Marketing Co., Ltd. | 33,190,005.07 | 20,971,910.88 |
Accounts Payable | Lanzhou Biotechnology Development Co., Ltd. | 22,629,127.43 | 7,090,194.69 |
Accounts Payable | Shanghai Henlius Biopharmaceuticals Co., Ltd. | 20,182,490.30 | 10,656,658.04 |
Accounts Payable | Sinopharm Holding Inner Mongolia Co., Ltd. | 17,398,810.70 | 9,983,494.97 |
Accounts Payable | Sinopharm Holding Yangzhou Co., Ltd. | 17,029,115.10 | 9,186,413.01 |
Accounts Payable | Sinopharm Holding Jilin Co., Ltd. | 15,557,574.41 | 9,216,663.08 |
Accounts payable | Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | 14,739,649.66 | 14,283,922.83 |
Accounts Payable | Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. | 13,948,086.24 | 6,967,890.39 |
Accounts Payable | Sinopharm Holding Lunan Co., Ltd. | 13,856,866.03 | 16,602.33 |
Accounts Payable | Foshan Winteam Pharmaceutical Group Ltd. | 12,762,448.46 | 8,713,524.04 |
Accounts Payable | Chongqing Yaoyou Pharmaceutical Co., Ltd. | 10,693,236.41 | 9,649,289.64 |
Accounts Payable | Shenzhen Wanwei Medicine Trading Co., Ltd. | 10,124,241.02 | 5,777,054.25 |
Accounts Payable | Sinopharm Holding Tongliao Co., Ltd. | 9,739,298.59 | 2,314,397.29 |
Accounts Payable | Sinopharm Holding Shandong Co., Ltd. | 9,326,307.95 | 3,578,812.54 |
Accounts Payable | Sinopharm Group Shanxi Medical Devices Co., Ltd. | 8,363,223.45 | 4,334,076.69 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Main Luck Pharmaceutical | 8,282,392.50 | 6,482,264.86 |
Accounts Payable | Sinopharm Holding Changzhou Co., Ltd. | 7,859,578.75 | 6,341,497.17 |
Accounts Payable | Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd. | 7,580,196.51 | 7,525,613.61 |
Accounts Payable | Sinopharm Yixin Pharmaceutical Co., Ltd. | 7,241,458.23 | 6,415,382.87 |
Accounts Payable | Sinopharm Holding Hunan Co., Ltd. | 7,148,202.14 | 29,824.83 |
Accounts Payable | Sinopharm Holding Fujian Co., Ltd. | 6,773,925.76 | 8,654,123.83 |
Accounts Payable | Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | 6,299,919.98 | 16,361,977.42 |
Accounts Payable | Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | 5,967,114.95 | 12,471,680.21 |
Accounts Payable | Sinopharm Holding Ningxia Co., Ltd. | 5,823,598.02 | 3,447,317.96 |
Accounts Payable | Sinopharm Holding Jiangsu Co., Ltd. | 5,623,470.20 | 5,874,594.31 |
Accounts Payable | Sinopharm Lerentang Shijiazhuang Traditional Chinese Medicine Co., Ltd. | 5,560,570.59 | 7,322,693.76 |
Accounts Payable | Tibet Yaoyou Medicines Co., Ltd. | 5,508,914.87 | 2,610,078.41 |
Accounts Payable | Sinopharm Holding Xiamen Co., Ltd. | 4,875,927.33 | 1,740,138.88 |
Accounts Payable | China Otsuka Pharmaceutical Co., Ltd. | 4,820,295.28 | 4,500,861.35 |
Accounts Payable | Sinopharm Holding Wuxi Co., Ltd. | 4,640,242.01 | 3,207,600.75 |
Accounts Payable | Jinzhou Avanc Medicine Co., Ltd. | 4,635,409.68 | 1,099,223.58 |
Accounts Payable | Yichang Humanwell Pharmaceutical Co., Ltd. | 4,422,829.29 | 3,385,475.40 |
Accounts Payable | Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. | 4,324,400.09 | 535,158.85 |
Accounts Payable | Sinopharm Holding Jinzhou Co., Ltd. | 4,262,720.29 | 1,620,270.87 |
Accounts Payable | Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. | 4,053,575.09 | 649,888.79 |
Accounts Payable | Jinzhou Avanc Pharmaceutical Co., Ltd. | 3,807,159.34 | 2,878,136.54 |
Accounts Payable | Sinopharm Holding Pingdingshan Co., Ltd. | 3,720,555.86 | 1,592,906.66 |
Accounts Payable | Sinopharm Holdings Beijing Huahong co., Ltd. | 3,477,616.71 | 649,250.59 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. | 3,439,804.24 | 2,431,261.32 |
Accounts Payable | China National Pharmaceutical Foreign Trade Corporation | 3,148,330.20 | 1,396,353.99 |
Accounts Payable | Sinopharm Hubei Medical Instrument Co., Ltd. | 3,082,800.00 | - |
Accounts Payable | Sinopharm Holding Henan Co., Ltd. | 2,972,512.54 | 1,015,692.22 |
Accounts Payable | Zhijun Medicine | 2,766,875.50 | 1,926,000.31 |
Accounts Payable | Sinopharm Jiankun (Beijing) Medicine Co., Ltd. | 2,754,490.08 | 2,160,853.09 |
Accounts Payable | Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. | 2,567,572.34 | 549,543.84 |
Accounts Payable | Zhijun Pingshan | 2,519,380.63 | 3,457,919.47 |
Accounts Payable | Sinopharm Holding Beijing Co., Ltd. | 2,449,533.26 | 1,508,298.20 |
Accounts Payable | Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd. | 2,434,377.87 | 3,043,319.35 |
Accounts Payable | Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. | 2,413,887.55 | 2,862,510.77 |
Accounts Payable | Sinopharm Holding Hubei Co., Ltd. | 2,396,284.38 | 6,529,646.18 |
Accounts Payable | Sinopharm Holding Anshan Co., Ltd. | 2,236,972.53 | 3,186,284.97 |
Accounts Payable | Sinopharm Holding Jinan Co., Ltd. | 1,965,327.02 | 389,141.05 |
Accounts Payable | Sichuan Hexin Pharmaceutical Co., Ltd. | 1,893,320.40 | 658,286.40 |
Accounts Payable | Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | 1,829,706.59 | 2,220,600.38 |
Accounts Payable | Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd. | 1,800,356.36 | 14,039,337.70 |
Accounts Payable | Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. | 1,640,352.65 | 27,742.96 |
Accounts Payable | Chongqing Taiji Group TongJunGe Pharmaceutical Co. Ltd. | 1,579,358.98 | 713,626.45 |
Accounts Payable | Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. | 1,564,527.54 | 1,761,406.69 |
Accounts Payable | Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd. | 1,450,330.00 | 1,212,120.00 |
Accounts Payable | Guangdong Yifang Pharmaceutical Co., Ltd. | 1,337,024.81 | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | China National Pharmaceutical Industry Co., Ltd. | 1,285,105.61 | 405,250.71 |
Accounts Payable | Sinopharm Holding Hulun Buir Co., Ltd. | 1,179,089.17 | 2,415,775.69 |
Accounts Payable | Sinopharm Liaoning Medical Equipment Co., Ltd. | 1,129,579.64 | 727,241.39 |
Accounts Payable | Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd. | 1,087,473.91 | 2,961,127.17 |
Accounts Payable | Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. | 1,024,277.19 | 589,718.36 |
Accounts Payable | Sinopharm Group Jiangxi MEDICAL Instrument Supply CHAIN Co., Ltd. | 1,007,140.00 | - |
Accounts Payable | Sinopharm Holding Tianjin Co., Ltd. | 985,793.10 | 229,813.17 |
Accounts Payable | Sinopharm Holding Fuzhou Co., Ltd. | 961,602.04 | 62,948.98 |
Accounts Payable | Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. | 899,169.93 | 714,922.11 |
Accounts Payable | Shanghai Shangsheng Biological Products Co., Ltd. | 894,093.03 | 579,241.40 |
Accounts Payable | Shanghai International Pharmaceutical Trade Co., Ltd. | 891,276.96 | 2,548,990.42 |
Accounts Payable | Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. | 872,746.49 | 12,060.40 |
Accounts Payable | Sinopharm Holding Heilongjiang Co., Ltd. | 858,285.89 | 719,296.07 |
Accounts Payable | Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. | 856,950.24 | 5,055,020.40 |
Accounts Payable | Sinopharm Advanced (Shanghai) Medical Device Co., Ltd. | 851,541.64 | 399,264.55 |
Accounts Payable | Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. | 844,704.00 | 629,630.00 |
Accounts Payable | Southwest Pharmaceutical Co., Ltd. | 844,534.81 | 945,357.43 |
Accounts Payable | China National Pharmaceutical Group Shanxi Rfl Pharmaceutical Co., Ltd. | 727,986.18 | 180,070.39 |
Accounts Payable | Sinopharm Holding Benxi Co., Ltd. | 680,012.88 | 429,027.88 |
Accounts Payable | Shanghai Transfusion Technology Co., Ltd. | 672,576.44 | 503,000.00 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Taiji Group Chongqing No.2 Traditional Chinese Medicine Factory Co., Ltd. | 633,418.38 | 506,211.59 |
Accounts Payable | Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd. | 626,210.36 | 263,701.38 |
Accounts Payable | Sinopharm Holding Yunnan Co., Ltd. | 624,328.33 | 695,144.06 |
Accounts Payable | Sinopharm Holding Anhui Huaning Medicine Co., Ltd. | 598,645.35 | 821,729.86 |
Accounts Payable | Sinopharm Guangdong Global Pharmaceutical Co., Ltd. | 576,411.51 | 6,418.59 |
Accounts Payable | Fresenius Kabi(Wuhan)Pharmaceutical Co., Ltd. | 563,320.49 | 340,458.00 |
Accounts Payable | Sinopharm Holding Dalian Co., Ltd. | 548,795.98 | 323,244.86 |
Accounts Payable | Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. | 539,001.92 | 652,334.19 |
Accounts Payable | Sinopharm Weiqida Pharmaceutical Co.,Led. | 538,625.93 | - |
Accounts Payable | Sinopharm Group Ganzhou Medical Trade Co., Ltd. | 538,553.05 | - |
Accounts Payable | Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | 529,814.80 | 639,514.41 |
Accounts Payable | Sinopharm ChuanKang Pharmaceutical Co., Ltd. | 506,385.14 | 763,860.95 |
Accounts Payable | Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. | 488,822.94 | 2,036,285.63 |
Accounts Payable | Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. | 466,688.45 | 269,440.56 |
Accounts Payable | Sinopharm Holding Chifeng Co., Ltd. | 457,177.80 | 47,040.00 |
Accounts Payable | Hunan Dongting Pharmaceutical Co., Ltd. | 450,911.10 | 1,416,518.77 |
Accounts Payable | Zhejiang Dongfang Pharmaceutical Co., Ltd. | 429,618.19 | 57,390.71 |
Accounts Payable | Taiji Group Co., Ltd. | 426,356.16 | 1,024,875.40 |
Accounts Payable | Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | 391,373.95 | 402,146.32 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | 387,113.26 | 971,002.28 |
Accounts Payable | Jiangxi Erye Medicine Marketing Co., Ltd. | 373,347.40 | 940,966.38 |
Accounts Payable | Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd. | 283,590.00 | 283,590.00 |
Accounts Payable | Jiangsu Huanghe Pharmaceutical Co., Ltd. | 282,220.96 | 252,184.96 |
Accounts Payable | Sinopharm Group Yibin Pharmaceuticals Co., Ltd. | 277,253.65 | 164,625.16 |
Accounts Payable | Chengdu Institute of Biological Products Co., Ltd. | 234,000.00 | 374,400.00 |
Accounts Payable | Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. | 218,683.61 | 319,244.28 |
Accounts Payable | Sinopharm In Inner Mongolia Medical Instrument Co., Ltd. | 211,992.20 | 310,945.00 |
Accounts Payable | Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. | 211,586.92 | 577,020.69 |
Accounts Payable | Shanghai Merro Pharmaceutical Co., Ltd. | 209,733.37 | 174,610.00 |
Accounts Payable | Sinopharm Holding Yangzhou Biological Products Co., Ltd. | 199,233.90 | 62,378.07 |
Accounts Payable | Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd. | 165,451.38 | 177,637.00 |
Accounts Payable | Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. | 161,480.01 | 1,115.51 |
Accounts Payable | Zhejiang Yinuo Pharmaceutical Co., Ltd. | 157,360.01 | - |
Accounts Payable | Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. | 154,230.42 | 109,776.29 |
Accounts Payable | Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd. | 153,795.07 | 398,026.67 |
Accounts Payable | Sinopharm Holding Quanzhou Co., Ltd. | 151,986.25 | 246,133.04 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Suzhou Erye Pharmaceutical Limited Company | 147,222.37 | 195,104.80 |
Accounts Payable | Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Co., Ltd. | 124,600.21 | 224,877.24 |
Accounts Payable | Sinopharm Xinjiang Pharmaceutical Co., Ltd. | 118,824.53 | 100,728.21 |
Accounts Payable | Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. | 115,379.03 | 31,686.85 |
Accounts Payable | Sinopharm Holdings Haoyang Mianyang Pharmaceutical Co., Ltd. | 114,857.52 | - |
Accounts Payable | Sinopharm Holding Longyan Co., Ltd. | 110,332.10 | 15,386.89 |
Accounts Payable | Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. | 110,031.02 | 96,686.13 |
Accounts Payable | Chengdu Rongsheng Pharmacy Co., Ltd. | 100,000.02 | 100,000.02 |
Accounts Payable | Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. | 98,278.63 | 98,916.34 |
Accounts Payable | Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd. | 93,144.00 | 553,976.72 |
Accounts Payable | Sinopharm Group Guorui Medicine Co., Ltd. | 92,400.64 | 36,000.00 |
Accounts Payable | Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. | 91,675.12 | 77,344.37 |
Accounts Payable | Wuhan Zhongsheng Yujin Biomedical Co., Ltd. | 88,320.00 | 265,512.00 |
Accounts Payable | Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. | 85,754.02 | 369,230.45 |
Accounts Payable | Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. | 85,402.96 | - |
Accounts Payable | Foshan Chancheng Pharmaceutical Co., Ltd. | 84,394.80 | - |
Accounts Payable | Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. | 82,650.00 | 936,950.00 |
Accounts Payable | Sinopharm Holding Anhui Pharmaceutical Co., Ltd. | 82,362.90 | - |
Accounts Payable | Sinopharm Holding Zhejiang Co., Ltd. | 80,383.91 | 89,674.81 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Sinopharm Holding Pu'er Co., Ltd. | 78,768.88 | 147,216.27 |
Accounts Payable | Sinopharm Holding Changsha Co., Ltd. | 78,431.62 | 76,264.60 |
Accounts Payable | Shanghai Chaohui Pharmaceutical Co., Ltd. | 77,388.24 | 3,570.24 |
Accounts Payable | Sinopharm Holding Bayannur Co., Ltd. | 71,218.36 | 282,878.24 |
Accounts Payable | Sinopharm Holding Putian Co., Ltd. | 67,413.58 | 100,819.11 |
Accounts Payable | Sinopharm Holding Shanghai Biomedicine Co., Ltd. | 59,228.00 | 99,248.80 |
Accounts Payable | Sinopharm Holding Hainan Co., Ltd. | 58,540.41 | 1,865.92 |
Accounts Payable | Sinopharm Holding Yancheng Co., Ltd. | 55,441.18 | -266.37 |
Accounts Payable | Sinopharm Sanyi Medicine (Wuhu) Co., Ltd. | 49,992.11 | 23,795.16 |
Accounts Payable | Sinopharm Holding Anhui Co., Ltd. | 49,006.52 | 4,873.80 |
Accounts Payable | Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. | 45,334.83 | 104,439.37 |
Accounts Payable | Hainan Fucong Health Management Co., Ltd. | 44,820.00 | - |
Accounts Payable | Sinopharm Holding Taizhou Co., Ltd. | 42,821.68 | 11,637.48 |
Accounts Payable | Sinopharm Holdings Kangfu (Tengzhou) Pharmaceutical Co., Ltd. | 34,773.57 | - |
Accounts Payable | Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd. | 33,944.20 | 33,944.19 |
Accounts Payable | Sinopharm Holding Dezhou Co., Ltd. | 33,918.71 | 33,918.71 |
Accounts Payable | Chinese Medicine Lerentang Qinhuangdao Pharmaceutical Co., Ltd. | 32,564.40 | - |
Accounts Payable | Sinopharm Shanxi Linfen Co., Ltd. | 31,991.52 | 3,217.49 |
Accounts Payable | Sinopharm Holding Nantong Co., Ltd. | 28,580.48 | 4,237.17 |
Accounts Payable | Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd. | 26,862.15 | 26,862.15 |
Accounts Payable | Sinopharm Holding Changde Co., Ltd. | 24,240.00 | - |
Accounts Payable | Shenyang Hongqi Pharmaceutical Co., Ltd. | 23,916.53 | 62,777.47 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Sinopharm Instrument Shengshi (Guangdong Province) Medical Technology Co., Ltd. | 20,616.36 | - |
Accounts Payable | Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd. | 20,359.83 | 55.83 |
Accounts Payable | Chongqing Haisiman Pharmaceutical Co., Ltd. | 18,488.82 | 18,488.82 |
Accounts Payable | Shandong Skyway Pharmaceutical Sales Co., Ltd. | 16,170.00 | 23,214.32 |
Accounts Payable | Sinopharm Holdings Wuhan Hengfeng Co., Ltd. | 14,601.77 | - |
Accounts Payable | Sinopharm Holdings Xinye (Hubei) Pharmaceutical Co., Ltd. | 13,569.93 | - |
Accounts Payable | Shantou Jinshi Powder Injection Co., Ltd. | 12,247.70 | 32,570.00 |
Accounts Payable | Sinopharm Group Hainan Hongyi Co., Ltd. | 10,670.40 | - |
Accounts Payable | China National Medical Device (Hui Zhou) Co., Ltd. | 9,845.00 | 895.00 |
Accounts Payable | Taiji Group Sichuan Tiancheng Pharmaceutical Co., Ltd. | 9,268.51 | 9,268.51 |
Accounts Payable | Sinopharm Holding Guizhou Yitong Medicine Co., Ltd. | 7,803.40 | 8,442.61 |
Accounts Payable | Sinopharm Wuhan Plasma-derived Biotherapies Co., Ltd. | 7,800.00 | - |
Accounts Payable | Sinopharm ChangChun A-THINK Pharmaceutical Co., Ltd. | 7,339.20 | 47,520.00 |
Accounts Payable | Chongqing Prepared Herbal Medicine Factory Co., Ltd. | 6,753.24 | - |
Accounts Payable | Sinopharm Holding Ordos Co., Ltd. | 5,881.20 | 1,771.20 |
Accounts Payable | China Medical Equipment Shandong Co., Ltd. | 5,880.26 | 6,204.94 |
Accounts Payable | Sinopharm Holding Nanping Newforce Co., Ltd. | 5,507.63 | 318,518.38 |
Accounts Payable | Sinopharm Holding Linyi Medical Device Co., Ltd. | 4,641.67 | 17,716.00 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Accounts Payable | Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd. | 3,060.00 | 10,858.84 |
Accounts Payable | Changchun Changsheng Gene Pharmaceutical Co., Ltd. | 3,017.25 | 3,017.25 |
Accounts Payable | Guangxi Fangning Pharmaceutical Co., Ltd. | 2,108.68 | - |
Accounts Payable | Sinopharm Holding Ulanqab Co., Ltd. | 2,092.20 | 16,092.20 |
Accounts Payable | Sinopharm Nutraceuticals (Shanghai) Co., Ltd. | 1,461.56 | 1,461.56 |
Accounts Payable | Guangzhou Tianren Pharmaceutical Co., Ltd. | 805.90 | 371,144.36 |
Accounts Payable | Guilin Pharmaceutical Co., Ltd. | 627.25 | 627.25 |
Accounts Payable | Shyndec Pharma | 612.78 | 599.57 |
Accounts Payable | Sinopharm Group Anhui Great Health Industry Co., Ltd.. | 504.00 | 504.00 |
Accounts Payable | Sinopharm Holding Liaocheng Co., Ltd. | 174.00 | 174.00 |
Accounts Payable | Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd. | 127.72 | 127.72 |
Accounts Payable | Naton Biotechnology (Beijing) Co., Ltd. | 63.72 | - |
Accounts Payable | Sinopharm Holding Jilin Medical Device Co., Ltd. | 47.50 | 47.50 |
Accounts Payable | Sinopharm MEDICINE Holding Chongqing Co., Ltd. | 45.00 | 45.00 |
Accounts Payable | Hebei Wanbang Fulin Pharmaceutical Co., Ltd. | 22.98 | 22.98 |
Accounts Payable | Sinopharm Holding Suzhou Co., Ltd. | 11.07 | 11.09 |
Accounts Payable | Shenzhen Zhijun Medical&Pharmaceutical Trading Co., Ltd. | 0.15 | 0.15 |
Accounts Payable | Sinopharm Holding Xinyu Co., Ltd. | 0.01 | 0.01 |
Accounts Payable | Sinopharm Group Medicine Logistic Co., Ltd. | - | 1,161,108.00 |
Accounts Payable | Huayi Pharmaceutical Co., Ltd. | - | 697,088.00 |
Accounts Payable | Fujian Tianjiang Pharmaceutical Co., Ltd. | - | 444,156.10 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2021 | 31 December 2020 |
Accounts Payable | Chongqing Tianjiang Yifang Pharmaceutical Co., Ltd. | - | 110,091.74 |
Accounts Payable | Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. | - | 76,448.34 |
Accounts Payable | Sinopharm Holding Xinte Yili Pharmaceutical Co., Ltd. | - | 69,004.64 |
Accounts Payable | Zhongshan Kangyue Medical Instrument Co., Ltd. | - | 43,949.18 |
Accounts Payable | Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. | - | 37,841.70 |
Accounts Payable | Sinopharm Wuhan ZhongLian SiYao Pharmaceutical Co., Ltd. | - | 30.42 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Notes Payable | Sinopharm Holding Sub Marketing Center Co., Ltd. | 220,779,199.33 | 174,238,525.98 |
Notes Payable | Sinopharm Lerentang Medicine Co., Ltd. | 125,702,166.97 | 223,988,788.54 |
Notes Payable | Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | 112,295,137.56 | 76,810,217.21 |
Notes Payable | Sinopharm Group Shanxi Co., Ltd | 54,497,693.37 | 175,372,554.73 |
Notes Payable | Sinopharm Holding Shanxi Co., Ltd. | 53,277,965.87 | 104,731,118.54 |
Notes Payable | China National Medicines Co., Ltd. | 50,594,345.47 | 35,668,918.85 |
Notes Payable | Jiangsu Wanbang Pharmacy Marketing Co., Ltd. | 27,594,789.62 | 17,224,478.34 |
Notes Payable | Sinopharm Holding Inner Mongolia Co., Ltd. | 25,383,313.52 | 19,372,594.16 |
Notes Payable | Sinopharm Holding Shenyang Co., Ltd. | 24,861,354.63 | 126,012,599.41 |
Notes Payable | Sinopharm Holding Yangzhou Co., Ltd. | 20,654,830.31 | 10,450,000.00 |
Notes Payable | Sinopharm Holding Lunan Co., Ltd. | 15,001,000.00 | 9,000,000.00 |
Notes Payable | Sinopharm Holding Tongliao Co., Ltd. | 13,317,562.50 | 11,376,675.46 |
Notes Payable | Sinopharm Holding Fujian Co., Ltd. | 10,997,916.52 | 15,478,021.78 |
Notes Payable | Sinopharm Holding Henan Co., Ltd. | 10,150,272.30 | 9,578,311.14 |
Notes Payable | Chengdu Rongsheng Pharmacy Co., Ltd. | 9,373,730.00 | 10,923,445.00 |
Notes Payable | Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. | 9,068,594.08 | 12,211,842.35 |
Notes Payable | Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. | 6,496,162.84 | 6,696,068.44 |
Notes Payable | Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. | 6,098,556.00 | 85,680.00 |
Notes Payable | Sinopharm Yixin Pharmaceutical Co., Ltd. | 5,954,614.57 | 5,133,788.50 |
Notes Payable | Sinopharm Holding Xiamen Co., Ltd. | 5,946,348.79 | 8,272,423.94 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Notes Payable | Lanzhou Biotechnology Development Co., Ltd. | 5,872,800.00 | 29,760,000.00 |
Notes Payable | Sinopharm Holding Hunan Co., Ltd. | 5,507,081.28 | 7,064,529.75 |
Notes Payable | Sinopharm Holding Jilin Co., Ltd. | 5,115,285.54 | 12,609,905.80 |
Notes Payable | Chongqing Taiji Industry (Group) Co., Ltd. | 5,004,500.00 | - |
Notes Payable | Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. | 4,337,020.77 | 6,563,665.32 |
Notes Payable | Sinopharm Holding Pingdingshan Co., Ltd. | 3,856,672.70 | 6,615,141.50 |
Notes Payable | Chongqing Yaoyou Pharmaceutical Co., Ltd. | 3,579,326.99 | 4,078,053.88 |
Notes Payable | Shenzhen Main Luck Pharmaceutical Co., Ltd. | 3,043,461.50 | 2,401,888.00 |
Notes Payable | Sinopharm Group Shanxi Medical Devices Co., Ltd. | 2,813,318.36 | 230,762.90 |
Notes Payable | Foshan Winteam Pharmaceutical Group Ltd. | 2,437,483.65 | 647,720.03 |
Notes Payable | Sinopharm Holding Ningxia Co., Ltd. | 2,315,775.00 | 2,506,342.07 |
Notes Payable | Sinopharm Lerentang Shijiazhuang Traditional Chinese Medicine Co., Ltd. | 2,053,318.21 | - |
Notes Payable | Sinopharm Holding Jinzhou Co., Ltd. | 2,008,725.92 | 1,442,607.32 |
Notes Payable | Sinopharm Holding Hulun Buir Co., Ltd. | 1,981,532.68 | 2,577,203.68 |
Notes Payable | Taiji Group Co., Ltd. | 1,932,360.00 | 204,159.80 |
Notes Payable | Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. | 1,848,219.82 | 2,740,999.00 |
Notes Payable | Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. | 1,769,222.15 | 418,255.20 |
Notes Payable | Sinopharm Holding Jinan Co., Ltd. | 1,650,000.00 | 1,958,000.00 |
Notes Payable | Shenzhen Wanwei Medicine Trading Co., Ltd. | 1,363,415.56 | 9,693,962.13 |
Notes Payable | Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. | 1,316,786.57 | 1,576,278.05 |
Notes Payable | Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | 1,199,286.87 | 2,347,835.68 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Notes Payable | Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. | 1,070,393.33 | 462,145.70 |
Notes Payable | Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd | 900,120.00 | - |
Notes Payable | Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | 804,339.00 | 208,837.60 |
Notes Payable | Sinopharm Jiankun (Beijing) Medicine Co., Ltd. | 788,308.87 | 989,760.00 |
Notes Payable | Sinopharm Holding Anshan Co., Ltd. | 726,747.79 | 9,391,498.13 |
Notes Payable | Wuhan Zhongsheng Yujin Biomedical Co., Ltd. | 707,848.00 | 486,772.00 |
Notes Payable | Sinopharm Holding Yancheng Co., Ltd. | 656,964.90 | 310,706.43 |
Notes Payable | Sinopharm Holding Quanzhou Co., Ltd. | 538,727.15 | 328,144.20 |
Notes Payable | Sinopharm Ronshyn Pharmaceutical Co., Ltd. | 529,680.00 | - |
Notes Payable | Sinopharm Holding Heilongjiang Co., Ltd. | 470,363.14 | 544,058.52 |
Notes Payable | Sinopharm Holding Bayannur Co., Ltd. | 468,502.62 | 518,770.32 |
Notes Payable | Jinzhou Avanc Pharmaceutical Co., Ltd. | 425,032.00 | 1,881,505.80 |
Notes Payable | Sinopharm Group Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. | 411,533.58 | 771,839.40 |
Notes Payable | Sinopharm Holding Changzhou Co., Ltd. | 309,138.32 | 140,000.00 |
Notes Payable | Sinopharm Group Feng Liao Xing (Foshan) Medicinal Material & Slices Co., Ltd. | 264,025.70 | - |
Notes Payable | Shanghai Transfusion Technology Co., Ltd. | 150,900.00 | 452,700.00 |
Notes Payable | Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. | 130,693.22 | 533,291.20 |
Notes Payable | Sinopharm Wuhan Plasma-derived Biotherapies Co., Ltd. | 80,600.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Notes Payable | China National Pharmaceutical Industry Co., Ltd. | 50,266.00 | 174,480.00 |
Notes Payable | Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. | 49,764.80 | 670,119.59 |
Notes Payable | Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. | 21,556.00 | 17,410.46 |
Notes Payable | Sinopharm Holding Dalian Co., Ltd. | 5,600.00 | 371,213.00 |
Notes Payable | Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd. | - | 6,336,725.00 |
Notes Payable | Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. | - | 3,000,400.00 |
Notes Payable | China Otsuka Pharmaceutical Co., Ltd. | - | 1,418,770.56 |
Notes Payable | Sinopharm Holding Benxi Co., Ltd. | - | 1,328,629.14 |
Notes Payable | Sinopharm Liaoning Medical Equipment Co., Ltd. | - | 354,145.10 |
Notes Payable | Jinzhou Avanc Medicine Co., Ltd. | - | 268,218.00 |
Notes Payable | Fujian Tianjiang Pharmaceutical Co., Ltd. | - | 214,990.00 |
Notes Payable | Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd. | - | 182,068.51 |
Notes Payable | Sinopharm Holding Nanping Newforce Co., Ltd. | - | 137,011.36 |
Notes Payable | Sinopharm Holding Changsha Co., Ltd. | - | 110,200.29 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Contract liabilities | Sinopharm Holding Jilin Co., Ltd. | 4,086,924.78 | - |
Contract liabilities | Sinopharm Holding Shenyang Co., Ltd. | 101,347.72 | 101,556.92 |
Contract liabilities | Sinopharm Lerentang Cangzhou Medicine Co., Ltd. | 99,664.59 | - |
Contract liabilities | Sinopharm Holding Yunnan Co., Ltd. | 44,648.00 | - |
Contract liabilities | Sinopharm Holding Guizhou Co., Ltd. | 26,017.70 | - |
Contract liabilities | Sinopharm Group Hulun Bei'er Co., Ltd. | 21,177.25 | - |
Contract liabilities | Chancheng Central Hospital of Foshan City | 17,342.00 | - |
Contract liabilities | Sinopharm Holdings Chongqing Medical Device Co., Ltd. | 16,911.19 | - |
Contract liabilities | Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. | 12,048.06 | - |
Contract liabilities | Sinopharm Guangdong Province Clinical Diagnostics Co., Ltd. | 10,300.00 | - |
Contract liabilities | Sinopharm Lerentang Hengshui Medicine Co., Ltd. | 6,822.47 | - |
Contract liabilities | Sinopharm Holdings Qianxinan Co., Ltd. | 4,846.10 | - |
Contract liabilities | China National Medical Equipment Guizhou Qiannan Co., Ltd. | 4,522.52 | 48.44 |
Contract liabilities | Sinopharm Holding Hainan Co., Ltd. | 3,300.64 | - |
Contract liabilities | Sinopharm Lerentang Medicine Co., Ltd. | 2,905.26 | 492,616.95 |
Contract liabilities | Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd. | 1,368.00 | 1,368.00 |
Contract liabilities | Sinopharm Holding Jiangxi Co., Ltd. | 1,043.57 | - |
Contract liabilities | Sinopharm Lerintang Handan Pharmaceutical Co. | 932.50 | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Contract liabilities | Sinopharm Holding Chengdu Co., Ltd. | 851.59 | 851.59 |
Contract liabilities | Sinopharm Holding Chongqing Co., Ltd. | 755.62 | 755.62 |
Contract liabilities | Sinopharm Holding Dalian Hecheng Co., Ltd. | 152.11 | - |
Contract liabilities | Sinopharm Holding Inner Mongolia Co., Ltd. | 83.60 | 142,565.60 |
Contract liabilities | Guangdong Kangmin Pharmaceutical Group Co., Ltd. | 30.10 | - |
Contract liabilities | Sinopharm Holding Huaian Co., Ltd. | 19.40 | - |
Contract liabilities | Sinopharm Holding Beijing Co., Ltd. | 6.48 | 6.48 |
Contract liabilities | Sinopharm Holding Care Direct Chongqing Health Management Co. , Ltd | 0.04 | - |
Contract liabilities | Sinopharm Holding Wuhu Co., Ltd. | - | 36,591.72 |
Contract liabilities | Shenzhen Xinsheng Pharmaceutical Co., Ltd. | - | 25,158.00 |
Contract liabilities | Sinopharm Holding Fujian Co., Ltd. | - | 21,967.30 |
Contract liabilities | Sinopharm Lerentang Chengde Medicine Co., Ltd. | - | 4,130.85 |
Contract liabilities | Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd. | - | 2,427.42 |
Contract liabilities | Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. | - | 436.15 |
Contract liabilities | Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. | - | 280.38 |
Contract liabilities | Sinopharm Lerentang Tangshan Medicine Co., Ltd. | - | 268.00 |
Contract liabilities | Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. | - | 219.51 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Other Payable | Sinopharm Group Medicine Logistic Co., Ltd. | 19,620,584.93 | 1,059,562.73 |
Other Payable | Sinopharm Group | 14,396,673.52 | 5,992,688.10 |
Other Payable | Zhang Zhenfang | 5,127,500.01 | 4,724,999.99 |
Other Payable | Guangdong Kangmin Pharmaceutical Group Co. ,Ltd. | 1,894,658.90 | - |
Other Payable | Sinopharm Group Shanghai Co., Ltd. | 1,660,431.38 | 1,660,431.38 |
Other Payable | China National of Traditional & Herbal Medicine Co., Ltd. | 1,300,000.00 | 1,300,000.00 |
Other Payable | Pingdingshan Pusheng Pharmaceutical Co. ,Ltd. | 828,571.90 | - |
Other Payable | Xishuangbanna Disheng Pharmaceutical Co., Ltd. | 814,571.16 | 370,554.86 |
Other Payable | Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. | 668,687.00 | 191,887.00 |
Other Payable | Liu Zhiping | 319,609.99 | - |
Other Payable | Sinopharm Health Online Co., Ltd. | 297,686.83 | 221,919.66 |
Other Payable | Shanghai Beiyi Guoda Pharmaceutical Co., Ltd. | 296,828.39 | 298,903.40 |
Other Payable | Zhang Guitang | 264,714.25 | - |
Other Payable | Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd. | 241,760.00 | 241,760.00 |
Other Payable | Sinopharm Group Guangdong Medicine Device Co., Ltd. | 219,102.30 | 260,732.18 |
Other Payable | Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. | 196,003.13 | 101,087.98 |
Other Payable | Sinopharm Holdings Hunan Wei'an Pharmacy Chain Co. ,Ltd. | 104,625.22 | - |
Other Payable | Sinopharm Holdings Henan Co. ,Ltd. | 85,578.73 | - |
Other Payable | Sinopharm Holding Sub Marketing Center Co., Ltd. | 84,866.63 | 57,429.17 |
Other Payable | Shanghai Tongyu Information Technology Co., Ltd. | 67,241.42 | 322,136.44 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Item | Related Party | 30 June 2022 | 31 December 2021 |
Other Payable | Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co. ,Ltd. | 25,458.72 | - |
Other Payable | Sinopharm Devices Baise Co. ,Ltd. | 20,400.00 | - |
Other Payable | Suzhou Erye Pharmaceutical Limited Company | 18,043.80 | - |
Other Payable | Beijing Sanoqiang Pharmaceutical Foreign Trade Co. ,Ltd. | 11,061.96 | - |
Other Payable | Zhang Haiyan | 5,223.63 | 6,713.73 |
Other Payable | Sinopharm Holdings Tianjin Co. ,Ltd. | 3,743.26 | - |
Other Payable | Shanghai Modern Pharmaceutical Marketing Co.,Ltd. | 3,379.20 | - |
Other Payable | Shenzhen Main Luck Pharmaceutical Co., Ltd. | 2,770.60 | 2,770.60 |
Other Payable | Fresenius Kabiwari Pharmaceutical Co. ,Ltd. | 474.73 | 6.28 |
Other Payable | Xinjiang Baitong Property Services Co. ,Ltd. | 452.83 | - |
Other Payable | Sinopharm Pharmaceutical Co. ,Ltd. | 350.10 | - |
Other Payable | Chengdu Institute of Biological Products Co., Ltd. | 327.60 | 327.60 |
Other Payable | Sinopharm Devices (Huizhou) Co. ,Ltd. | 157.00 | - |
Other Payable | Shenzhen Wanwei Medicine Trading Co., Ltd. | 123.46 | 15,011.46 |
Other Payable | Chongqing Yaoyou Pharmaceutical Co., Ltd. | 37.20 | - |
Other Payable | Jiangsu Wanbang Pharmaceutical Marketing Co. ,Ltd. | 24.00 | 24.00 |
Other Payable | Sinopharm Holdings Beijing Huahong co., Ltd. | - | 38,577.60 |
Other Payable | Taishan Xiangranhui Trade Co., Ltd. | - | 22,270.00 |
Other Payable | Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. | - | 11,355.26 |
Other Payable | Sinopharm Guangdong Global Pharmaceutical Co., Ltd. | - | 5,903.47 |
Other Payable | Foshan Winteam Pharmaceutical Group Ltd. | - | 148.65 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Commitments of Related Party
Lease commitmentRent-out
Related Party | 30 June 2022 | 31 December 2021 |
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited | 918,918.00 | - |
Sinopharm Group Guangdong Medical Equipment Co., Ltd. | 300,141.45 | - |
Sinopharm Group Pharmaceutical Co., Ltd. | - | 56,284.20 |
Rent-in
Related Party | 30 June 2022 | 31 December 2021 |
Lerentang Investment Group Co., Ltd. | 29,126,376.12 | 1,883,600.91 |
Sinopharm Holding Yangzhou Co., Ltd. | 13,062,166.74 | 14,928,190.56 |
Shenyang Pharmaceutical Co., Ltd. | 6,569,444.45 | 10,023,611.11 |
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. | 6,190,733.61 | 6,699,561.03 |
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. | 5,777,358.49 | - |
Pingdingshan Pusheng Pharmaceutical Co., Ltd. | 4,957,848.72 | - |
Zhang Yechuan | 4,896,500.00 | 5,579,000.00 |
Jilin Province Tianhe Technology Industry and Trade Co., Ltd. | 4,158,238.10 | - |
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. | 2,854,222.82 | 3,460,171.22 |
Xiong Xinyuan | 2,750,000.00 | 3,105,000.00 |
Zhang Guitang | 2,649,190.33 | 190,571.33 |
Wang Yixuan | 2,550,000.00 | 3,160,000.00 |
Shenyang Shengdiou Trading Co., Ltd. | 2,125,396.82 | 1,961,904.76 |
Li Fang | 1,362,000.00 | 1,634,400.00 |
Nanjing Yuanguang Trading Co., Ltd. | 1,239,047.62 | 2,073,968.30 |
Sinopharm Holding Beijing Co., Ltd. | 1,050,000.00 | 1,280,952.36 |
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. | 900,000.00 | 999,999.98 |
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. | 880,479.00 | - |
Xishuangbanna Disheng Pharmaceutical Co., Ltd. | 750,000.00 | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 Party | 30 June 2022 | 31 December 2021 |
Shanghai Baizhong Commercial Development (Group) Co., Ltd. | 616,761.92 | - |
Shenzhen Jiufeng Investment Co., Ltd. | 600,000.00 | 400,000.00 |
Sinopharm Holding Co., Ltd. | 390,915.00 | - |
Gu Jinhua | 344,190.00 | 156,450.00 |
Wang Yang | 312,305.70 | 624,611.40 |
Zheng Jing | 300,000.00 | - |
Zhang Haiyan | 280,101.96 | 365,816.32 |
Zhao Xiaoxiao | 240,000.00 | - |
Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. | 237,614.72 | 263,073.44 |
Sinopharm Group Shanghai Co., Ltd. | 192,880.72 | - |
Sinopharm Holding (China) Financial Leasing Co., Ltd. | 191,916.48 | 338,053.05 |
Gu Haiqun | 128,540.02 | 237,842.89 |
Zhang Kai | 120,200.00 | 2,837,718.00 |
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. | 117,055.19 | - |
Beijing Huafang Investment Co., Ltd. | 48,000.00 | 96,000.00 |
Guangdong Jiyuantang Development Co., Ltd. | - | 995,104.74 |
Sinopharm Holding Shanxi Jincheng Co., Ltd | - | 699,931.58 |
Sinopharm Group Xinjiang Xintec Karamay Pharmaceutical Co., Ltd. | - | 524,909.53 |
The Group as an investor
Units of the Group | investee company | Amount signed but not paid | Signing date | pay consideration | Equity ratio |
Sinopharm Accord Pharmaceutical Co., Ltd. | Komsomolsk Qixin | 42,000,000.00 | 2021/7/16 | 60,000,000.00 | 2.93% |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others
Related Party | 30 June 2022 | 31 December 2021 |
Short-term Borrowing | ||
Sinopharm Group Finance Co., Ltd. | 717,967,509.50 | 92,357,153.59 |
Entrusted loan | ||
CNPGC (1) | 31,633,794.44 | 31,637,173.89 |
Jilin Province Yihe Investment Consulting Co., Ltd. (2) | 72,450,000.00 | |
(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 entrusted by Jilin Yihe Investment Consulting Co., Ltd. to Everbright Bank, which borrows from Jilin bank to the group | ||
30 June 2022 | 31 December 2021 | |
Other non-current liabilities | ||
Sinopharm Group Co., Ltd. | 23,085,874.07 | 23,085,874.07 |
China Pharmaceutical Group Limited | - | 1,975,869.24 |
Cash deposite within a related party | ||
30 June 2022 | 31 December 2021 | |
Sinopharm Group Finance Co., Ltd. | 2,002,037.36 | 1,974,371.39 |
For the six months ended 30 June 2022, the annual interest rates of the above deposits are 0.35% to 1.15%. (In year 2021, the annual interest rates of the above deposits are 0.35% to 1.15%.) |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others(Continued)
Other non-current assets | ||
30 June 2022 | 31 December 2021 | |
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. | 52,858.00 | - |
Lease liability | ||
30 June 2022 | 31 December 2021 | |
Lerentang Investment Group Co., Ltd. | 26,719,400.27 | 1,819,686.02 |
Sinopharm Holding Yangzhou Co., Ltd. | 12,215,775.17 | 13,822,514.01 |
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. | 5,477,107.18 | 5,869,655.31 |
Zhang Yechuan | 4,182,075.37 | 4,863,470.42 |
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. | 2,854,222.82 | 3,032,718.03 |
Zhang Guitang | 2,524,818.55 | 183,481.78 |
Xiong Xinyuan | 2,335,666.29 | 2,636,852.58 |
Wang Yixuan | 2,275,240.51 | 2,831,454.19 |
Shenyang Shengdiou Trading Co., Ltd. | 1,891,162.78 | 1,852,529.65 |
Li Fang | 1,293,405.88 | 1,536,114.62 |
Sinopharm Holding Beijing Co., Ltd. | 969,290.78 | 1,228,951.74 |
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. | 694,681.41 | 962,775.70 |
Shanghai Baizhong Business Development (Group) Co., Ltd. | 450,685.42 | - |
Wang Yang | 309,551.59 | 612,838.25 |
Nanjing Yuanguang Trading Co., Ltd. | 303,651.84 | 513,668.40 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others (Continued)
Related Party | 30 June 2022 | 31 December 2021 |
Lease liability(Continued) | ||
Zhang haiyan | 270,917.46 | 350,157.32 |
Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. | 203,256.89 | 249,436.15 |
Jilin Province Tianhe Technology Industry and Trade Co., Ltd. | 171,889.90 | - |
Zheng Jing | 145,883.96 | - |
Gu Haiqun | 127,141.74 | 232,783.19 |
Zhao xiaoxiao | 116,707.17 | - |
Beijing Huafang Investment Co., Ltd. | 47,744.09 | 94,518.27 |
Guangdong Jiyuantang Development Co., Ltd. | - | 881,312.42 |
Sinopharm Holding Shanxi Jincheng Co., Ltd. | - | 599,931.58 |
Shenzhen Jiufeng Investment Co., Ltd. | - | 379,792.66 |
Total | 65,580,277.07 | 44,554,642.29 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XI Commitments and contingencies
1. Commitments
Capital expenditures contracted for at the balance sheet date but not recognised in the balance sheet are analysed as follows: | |||
30 June 2022 | 31 December 2021 | ||
(RMB‘0,000) | (RMB‘0,000) | ||
Capital commitments | 1,321.60 | 2,649.01 | |
Investment commitments | 4,200.00 | 4,200.00 | |
5,521.60 | 6,849.01 |
A Pursuant to the approval of Sinopharm Holdings' document [Sinopharm General Investment [2021] No. 523], the Groupsubscribed for shares of the Industry Fund (Phase II) and Gongqingcheng Qixin by contributing RMB60 million. The fundadopts a progressive funding approach, with investors contributing in tranches. As of June 30, 2022, The manager of theIndustry Fund will issue payment notices to the investors according to the actual project progress. RMB18 million, 30% ofthe Group's contribution, the remaining outstanding contribution will be RMB42 million.
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 2022
(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 Office | Pharmaceutical distribution | Pharmaceutical retail | Elimination between segments | Total | |
Principal operations income | - | 25,305,598,411.30 | 10,941,200,117.49 | (478,016,598.45) | 35,768,781,930.34 |
Principal cost of sales | - | (23,868,869,549.94) | (8,432,158,478.56) | 469,854,329.47 | (31,831,173,699.03) |
Income from investments in associates | 100,525,425.88 | (645,876.71) | (1,010,887.08) | - | 98,868,662.09 |
Net profit | 344,067,581.01 | 528,782,126.73 | 141,089,231.46 | (219,169,846.43) | 794,769,092.77 |
Total assets | 16,376,350,240.95 | 28,100,891,247.35 | 16,345,199,365.21 | (14,853,460,028.94) | 45,968,980,824.57 |
Total liabilities | (4,684,035,758.53) | (21,461,893,967.76) | (10,552,444,722.25) | 9,259,549,465.51 | (27,438,824,983.03) |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | ||||||||||||||
Gross carrying amount | Provision for bad debt | Book value | Gross carrying amount | Provision for bad debt | Book value | ||||||||||
Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | ||||||||
Items for which provision for bad debt is recognised separately | 49,180,515.92 | 8.92% | (2,725,926.56) | 5.54% | 46,454,589.36 | 26,787,302.03 | 4.49% | (3,680,022.61) | 13.74% | 23,107,279.42 | |||||
Items for which provision for bad debt is recognized by group (credit risk characteristics) | 502,366,270.19 | 91.08% | (18,297.71) | - | 502,347,972.48 | 569,340,700.47 | 95.51% | (47,671.02) | 0.01% | 569,293,029.45 | |||||
551,546,786.11 | 100.00% | (2,744,224.27) | 0.50% | 548,802,561.84 | 596,128,002.50 | 100.00% | (3,727,693.63) | 0.63% | 592,400,308.87 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022, accounts receivable that are individually assessed for provisions are as follows: | |||||
Debtor’s name | Carrying amount | Bad debt provision | Rate | Assessment for impairment | |
Receivables from subsidiaries of the Group | 45,812,069.16 | - | - | Internal related parties, with lower-tier recovery risk | |
Client A | 2,391,631.86 | (2,391,631.86) | 100.00% | Debtor had mismanagement, subject to serious financial difficulties, and the expected recoverability is very low | |
Client B | 587,425.20 | - | - | Internal related parties within Sinoharm Group, with lower-tier recovery risk | |
Client C | 323,044.50 | (323,044.50) | 100.00% | Debtor had mismanagement, subject to serious financial difficulties, and is in bankruptcy liquidation. | |
Client D | 55,095.00 | - | - | Internal related parties within Sinoharm Group, with lower-tier recovery risk | |
Client E | 11,250.20 | (11,250.20) | 100.00% | Debtor had mismanagement, subject to serious financial difficulties, listed as a dishonest person subject to execution by the court, and the expected recoverability is very low | |
49,180,515.92 | (2,725,926.56) |
Provision for bad debts of accounts receivable according to the general model of expected credit loss: | |||||||
30 June 2022 | |||||||
Estimated default amount | Expected credit loss in entire lifetime | Expected credit loss rate | |||||
Within 1 year | 501,530,331.98 | - | - | ||||
1 to 2 years | 802,628.21 | (14,966.71) | 1.86% | ||||
2 to 3 years | 33,310.00 | (3,331.00) | 10.00% | ||||
502,366,270.19 | (18,297.71) | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements(Continued)
1. Accounts receivable (Continued)
The accounts receivable for which the Company recognised provision for bad debts using the aging analysis method are presented as follows: | |||||||
30 June 2022 | |||||||
Within 1 year | 547,984,921.34 | ||||||
1 to 2 years | 3,194,260.07 | ||||||
2 to 3 years | 33,310.00 | ||||||
Above 3 years | 334,294.70 | ||||||
551,546,786.11 |
Bad debt provision for the current period as follows:
Opening balance | Increases during the period | Reversal during the period | Write-off during the period | Other | Closing balance | ||
Bad debt provision | (3,727,693.63) | (279,904.80) | 983,469.36 | 279,904.80 | - | (2,744,224.27) |
Accounts receivable actually written off in the current period
Write off amount | ||
Client A | 279,904.80 |
As at 30 June 2022, the top five accounts receivable by customer are as follows: | |||||
Amount | % of the total accounts receivable | Bad debt provision amount | |||
Top 1 Account receivable | 30,385,367.43 | 5.51% | - | ||
Top 2 Account receivable | 29,779,470.84 | 5.40% | 12,747.71 | ||
Top 3 Account receivable | 26,325,898.25 | 4.77% | - | ||
Top 4 Account receivable | 20,214,679.31 | 3.67% | - | ||
Top 5 Account receivable | 18,075,138.10 | 3.28% | - | ||
124,780,553.93 | 22.63% | 12,747.71 |
Accounts receivable derecognised due to transfer of financial assets was as follows:
From January to June 2022, the Company factored a small portion of accounts receivable at amortised cost to financialinstitutions. The amount of accounts receivable derecognised was RMB 179,347,606.49 (from January to June 2021:
RMB26,097,254.38), and the amount of loss recognised through Investment income was RMB 1,781,142.79 (from Januaryto June 2021: RMB 221,815.32).
Notes to financial statements (Continued)For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
30 June 2022 | 31 December 2021 | ||
Dividends receivable | 16,714,220.20 | - | |
Other receivables | 4,595,538,761.51 | 5,003,805,208.01 | |
4,612,252,981.71 | 5,003,805,208.01 |
Category of Dividends receivable: | |||
30 June 2022 | 31 December 2021 | ||
Sinopharm Shyndec | 16,714,220.20 | - |
Category of other receivables by nature is as follows: | |||
Nature | 30 June 2022 | 31 December 2021 | |
Amounts due from subsidiaries | 4,581,451,939.48 | 4,989,971,028.15 | |
Receivable of equity transactions | 8,980,000.00 | 8,980,000.00 | |
Deposit | 346,597.78 | 344,600.17 | |
Others | 60,165,689.51 | 59,914,399.34 | |
4,650,944,226.77 | 5,059,210,027.66 |
Changes in bad debt provision for the 12-month expected credit losses and lifetime expected credit losses on otherreceivables are as follows:
Stage 1 | Stage 2 | Stage 3 | |||
Bad debt | Expected credit losses over the next 12 months | Entire lifetime expected credit losses(No credit impairment occurred) | Entire lifetime expected credit losses(Credit impairment occurred) | Total | |
Balance at 1 January 2022 | - | 90,597.41 | 55,314,222.24 | 55,404,819.65 | |
Balance at 1 January 2022 during the period | |||||
Provisions during the period | - | 645.61 | - | 645.61 | |
Balance at 30 June 2022 | - | 91,243.02 | 55,314,222.24 | 55,405,465.26 |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | ||
Within 1 year | 4,594,953,153.57 | |
1 to 2 years | 224,673.39 | |
2 to 3 years | 2,358,983.90 | |
Over 3 years | 53,407,415.91 | |
Total | 4,650,944,226.77 |
Bad debt provision for the current period as follows:
Opening balance | Increases during the peried | Reversal during the period | Write-off during the period | Other | Closing balance | ||
Bad debt provision | (55,404,819.65) | (645.61) | - | - | - | (55,405,465.26) |
As at 30 June 2022,the accumulated top five other receivables are analysed below: | |||||
Nature | Amount | Age | % of total amount | Bad debt provision | |
Sinopharm Guangzhou | Entrusted borrowings | 2,160,350,833.45 | Within 1 year | 46.45% | - |
Sinopharm Guangxi | Entrusted borrowings | 840,301,675.04 | Within 1 year | 18.07% | - |
Sinopharm Dongguan | Entrusted borrowings | 161,152,663.83 | Within 1 year | 3.46% | - |
Sinopharm Zhuhai | Entrusted borrowings | 140,134,944.61 | Within 1 year | 3.01% | - |
Sinopharm Guangdong Yuexing | Entrusted borrowings | 133,793,439.60 | Within 1 year | 2.88% | - |
3,435,733,556.53 | 73.87% | - |
Notes to financial statements (Continued)For the six months ended 30 June 2022
(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 2022 | 31 December 2021 | ||||||
Original value | Bad debt provision | Carrying amount | Original value | Bad debt provision | Carrying amount | ||
Investments in subsidiaries | 5,614,677,427.58 | - | 5,614,677,427.58 | 5,614,677,427.58 | - | 5,614,677,427.58 | |
Investments in associates | 2,483,597,350.57 | (39,930,000.00) | 2,443,667,350.57 | 2,470,148,715.28 | (39,930,000.00) | 2,430,218,715.28 | |
8,098,274,778.15 | (39,930,000.00) | 8,058,344,778.15 | 8,084,826,142.86 | (39,930,000.00) | 8,044,896,142.86 | ||
(1) | Subsidiaries | |||||||||
31 December 2021 | Increases | Decrease | 30 June 2022 | Amount of provision for impairment | ||||||
Sinopharm Shenzhen Jianmin | 60,054,911.04 | - | - | 60,054,911.04 | - | |||||
Sinopharm Shenzhen Material | 15,450,875.93 | - | - | 15,450,875.93 | - | |||||
Sinopharm Shenzhen Logistics | 5,019,062.68 | - | - | 5,019,062.68 | - | |||||
Sinopharm Guangzhou | 3,588,689,716.80 | - | - | 3,588,689,716.80 | - | |||||
Sinopharm Guangxi | 525,456,951.07 | - | - | 525,456,951.07 | - | |||||
Sinopharm Yanfeng | 38,207,800.00 | - | - | 38,207,800.00 | - | |||||
Guoda Pharmacy | 1,361,800,110.06 | - | - | 1,361,800,110.06 | - | |||||
Accord Devices | 19,998,000.00 | - | - | 19,998,000.00 | - | |||||
- | - | |||||||||
5,614,677,427.58 | - | - | 5,614,677,427.58 | - |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 balance | Profit or loss under the equity method | Adjustment in other comprehensive income | Other changes in equity | Cash dividend or profits declared | Closing balance | Provision of impairment |
Main Luck Pharmaceutical | 340,490,180.80 | 30,992,778.04 | - | - | (70,380,000.00) | 301,102,958.84 | - |
Zhijun Suzhou | - | - | - | - | - | - | (39,930,000.00) |
Sinopharm Zhijun | 496,542,941.16 | 27,662,634.68 | - | - | - | 524,205,575.84 | - |
Zhijun Trade | 10,377,417.89 | 220,557.56 | - | - | - | 10,597,975.45 | - |
Zhijun Pingshan | 183,906,263.81 | 5,525,963.98 | - | - | - | 189,432,227.79 | - |
Sinopharm Shyndec | 1,398,901,911.62 | 36,123,491.62 | (3,773.17) | 21,202.78 | (16,714,220.20) | 1,418,328,612.65 | - |
2,430,218,715.28 | 100,525,425.88 | (3,773.17) | 21,202.78 | (87,094,220.20) | 2,443,667,350.57 | (39,930,000.00) |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 | For the six months ended 30 June 2022 | ||||
Revenue | Cost | Revenue | Cost | ||
Principal operations | 1,965,927,776.25 | 1,901,785,707.34 | 2,062,334,204.15 | 1,982,274,379.60 | |
Other operations | 14,586,522.08 | 8,276,541.50 | 16,035,919.21 | 9,145,932.20 | |
1,980,514,298.33 | 1,910,062,248.84 | 2,078,370,123.36 | 1,991,420,311.80 | ||
Classification | For the six months ended 30 June 2022 | |
By product | ||
Include: | ||
Pharmaceuticals | 1,859,918,374.96 | |
Medical devices and disposables | 102,229,598.81 | |
Diagnostic reagents | 3,705,672.82 | |
Medical equipment | 74,129.66 | |
Other | 11,791,251.36 | |
By area | ||
Include: | ||
China | 1,977,719,027.61 | |
By major activities | ||
Include: | ||
Pharmaceutical distribution | 1,965,927,776.25 | |
Others | 11,791,251.36 | |
By contract duration | ||
Include: | ||
At a point in time | 1,965,927,776.25 | |
Overtime | 11,791,251.36 | |
1,977,719,027.61 |
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 5,491,416.33, which is expected to be recognized within 1 year.Revenue is as follows:
30 June 2022 | 30 June 2021 | |
Revenue from contracts with customers | 1,977,719,027.61 | 2,073,736,734.56 |
Rentals | 2,795,270.72 | 4,633,388.80 |
1,980,514,298.33 | 2,078,370,123.36 |
5. Investment income
For the six months ended 30 June 2022 | For the six months ended 30 June 2021 | |||
Gain on long-term equity investments under the cost method | 218,380,273.84 | 619,290,387.90 | ||
Gain on long-term equity investments under the equity method | 100,525,425.88 | 157,696,473.52 | ||
Income from the derecognition of financial assets measured at amortised cost measured at amortised cost | (1,781,142.79) | (221,815.32) | ||
? Dividends from other financial assets | - | 3,599,555.61 | ||
317,124,556.93 | 780,364,601.71 |
Supplementary information to financial statements
For the six months ended 30 June 2022
(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 2022 | Illustration | ||
Gains and losses from disposal of non-current assets | 2,572,259.70) | Mainly probability of gain and losses from the end of lease | |
Government grants recognized in income statement for the current year, except for those closely related to the ordinary operation of the Company which the Group enjoyed constantly according to the allotment standards or quantitative criteria of the country | 33,357,845.59 | Mainly probability of exemption and other government grants for special purpose and finance Discount | |
Reversal of bad debt provision for accounts receivable that were tested for impairment individuall | 3,151,359.86 | ||
Non-operating income and expenses other than the aforesaid items | 1,435,887.44 | Mainly probability of the non operating income generated from the write off of funds that do not need to be paid in the current period | |
Other | 2,574,793.60 | ||
Less:Impact of income tax | 10,195,412.45 | ||
Impact of non-controlling interests after tax | 11,538,123.57 | ||
21,358,610.17 | |||
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 2022
(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 parent | 4.44% | 1.57 | 1.57 |
Net profit after deducting non-recurring profit or loss attributable to the Company’s ordinary shareholders of the parent | 4.30% | 1.52 | 1.52 |