China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
August 2014
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of China National Accord Medicines Corporation Ltd. (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, 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.
All directors are attended the Board Meeting for report deliberation.
The Company has no plans of cash dividend distributed, no bonus shares and
has no share converted from capital reserve either.
Yan Zhigang, principal of the Company, Wei Pingxiao, person in charger of
accounting works and Zhou Feifei, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of the
Semi-Annual Report 2014 is authentic, accurate and complete.
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Content
Semi-Annual Report 2014
Section I. Important Notice, Contents and Paraphrase ................................................................. 2
Section II Company profile ............................................................................................................... 5
Section III. Accounting data and summary of financial indexes ................................................... 7
Section IV. Report of the Board of Directors ................................................................................... 9
Section V. Important Events............................................................................................................ 20
Section VI. Changes in Shares and Particulars about Shareholders .......................................... 35
Section VII. Preferred Stock ........................................................................................................... 39
Section VIII. Directors, Supervisors and Senior Executives ........................................................ 40
Section IX Financial Report ............................................................................................................ 41
Section X. Documents Available for Reference ........................................................................... 208
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Paraphrase
Items Refers to Definition
The Listed Company, Company, the Company,
Refers to China National Accord Medicines Corporation Ltd.
China National Accord, the Group
Sinopharm Group Co., Ltd., the controlling shareholder of the
Sinopharm Holding Refers to
Company
“Twelfth Five-Year” Refers to Year of 2011 to 2015
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
Terminology: Refers to
Direct selling Refers to A sales method that the drug directly sold to the hospital
GMP certification Refers to Good Manufacture Practice of Drugs certification
GSP certification Refers to Good Supplying Practice certification
That is CMS, and information system processing workflow &
Supply Chain Management Refers to
procurement, inventory & sales documents
Company profile Refers to
Sinopharm Refers to China National Pharmaceutical Group Corporation
Sinopharm (CNCM LTD) Refers to China National Medicines Corporation Ltd.
Sinopharm Holding Guangzhou Refers to Sinopharm Holding Guangzhou Co., Ltd.
Sinopharm Holding Guangxi Refers to Sinopharm Holding Guangxi Co., Ltd.
Sinopharm Holding Liuzhou Refers to Sinopharm Holding Liuzhou Co., Ltd.
Zhijun Pharmaceutical Refers to Shenzhen Zhijun Pharmaceutical Co., Ltd
China National Zhijun (Suzhou) Refers to China National Zhijun (Suzhou) Pharmaceutical Co., Ltd.
Zhijun Medicine Trading Refers to Shenzhen Zhijun Medicine Trading Co., Ltd.
Sinopharm TCM Refers to Sinopharm Holding Shenzhen Chinese Medicine Co., Ltd.
Main Luck Pharmaceuticals Refers to Shenzhen Main Luck Pharmaceuticals Inc.
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Section II Company profile
I. Company Profile
Short form for share Sinopharm Accord, Accord B Code for share 000028, 200028
Listing stock exchange Shenzhen Stock Exchange
Chinese name of the Company 国药集团一致药业股份有限公司
Abbr. of Chinese name of the
国药一致
Company(if applicable)
English name of the
China National Accord Medicines Corporation Ltd.
Company(if applicable)
Abbr. of English name of the
Sinopharm Accord
Company(if applicable)
Legal Representative Yan Zhigang
II. Contact person and ways
Secretary of the Board
Name Chen Changbing
Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen
Contact adds.
Guangdong
Tel. +(86)755 25875195
Fax. +(86)755 25875147; +(86)755 25195435
E-mail 0028@szaccord.com.cn; 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 or
not
□ 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 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and
organization code have no change in reporting period, found more details in Annual Report 2013.
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Section III. Accounting data and summary of financial indexes
I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 11,612,642,434.28 10,131,712,690.44 14.62%
Net profit attributable to shareholders of
349,213,988.51 260,794,678.64 33.90%
the listed company(RMB)
Net profit attributable to shareholders of
the listed company after deducting 326,526,104.00 260,180,187.43 25.50%
non-recurring gains and losses(RMB)
Net cash flow arising from operating
-484,715,807.96 238,276,873.08 -303.43%
activities(RMB)
Basic earnings per share (RMB/Share) 1.073 0.905 18.56%
Diluted earnings per share (RMB/Share) 1.073 0.905 18.56%
Weighted average ROE (%) 10.39% 13.81% -3.42%
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 12,490,101,653.57 11,057,896,941.31 12.95%
Net assets attributable to shareholder of
4,457,763,310.27 2,244,757,658.03 98.59%
listed company(RMB)
II. 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
436,751.38
write-off that accrued for impairment of assets)
Governmental subsidy calculated into current gains and The enterprise supporting fund
losses(while closely related with the normal business of the
14,575,338.73 RMB 6.06 million allocated from
Company, excluding the fixed-amount or fixed-proportion
governmental subsidy according to the unified national standard) Nanning Economic and
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Technological Development
Zone, the deferred income
recognized due to compensation
for removal project was
amortized RMB1.35 million in
the Period; special subsidy RMB
2.28 million from Shenzhen
High-tech industries and
education subsidy for the
strategic emerging industry brand
RMB one million
Reversal of impairment reserve for account receivable with
2,473,206.68
separate impairment testing
The RMB 11.86 million
compensation of Chebei lawsuit
Other non-operating income and expenditure except for the
12,116,477.87 that accrued last year was
aforementioned items
released according to the latest
lawsuit results
Less: impact on income tax 6,865,661.39
Influenced amount of minority shareholders’ equity (after tax) 48,228.76
Total 22,687,884.51 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
China National Accord Medicines Corporation Ltd.
SEMI-ANNUAL REPORT 2014
Section IV. Report of the Board of Directors
I. Introduction
(I)Operating results for the first half year of 2014
During the reporting period, challenged by the complicated market conditions, the Company focused on
exploration and innovation, and completed the sales revenue indicators and various major working tasks as set for
the first half year. During the period from January to June, the Company realized sales revenue of RMB11.574
billion, representing a year-on-year increase of 14.88%, among which, RMB10.679 billion was contributed by the
distribution segment (representing a year-on-year increase of 15.92%) and RMB0.907 billion was contributed
by the pharmaceutical segment (representing a year-on-year increase of 3.78%). During the period from January
to June, the Company realized net profit attributable to shareholders of listed company of RMB0.349 billion,
representing a year-on-year increase of 33.90%, among which, RMB0.174 billion was contributed by the
distribution segment (representing a year-on-year increase of 25.31%) and pharmaceutical segment achieved
RMB 136 million net profit attributable to shareholder of listed company with a year-on-year growth of 14.48%
due to the sales recovery. The major works for the first half year are set out as follows:
1. Under the principal guidelines of compliant operation, he Company seeks for the best practice through model
study as supported by target management and innovation. The Company also inspires organization potentials
through promotion of innovation. By strengthening internal communication and optimizing resources allocation,
the Company realized improvement both in management efficiency and service efficiency. A non-public issuance
was completed in the reporting period, which helped the Company to decrease its gearing ratio to a level which
was lower than the average one of this industry; through intensified control on expenses, the overall expense ratio
decreased by 0.16 percentage points as compared to the corresponding period of last year. On the premise of gross
margin moved up slightly,, the Company improved its space for profit making.
2. Further network penetration by the distribution segment aims to build a smart supply chain and improve an
integrated operation platform.
1) Construction of smart supply chain recorded new progress. VMI united inventory management was gradually
realized in large scale, resulting in general extension of supply chain to upstream suppliers; logistics for Dongpu
Hospital, Military Hospital and other two hospitals formed samples, realizing effective extension of supply chain
management to downstream hospitals; PDA system will be applied soon, under which a visual system platform
will be built to make placing orders and distribution visual in Guangzhou an
