一致Ｂ：2021年半年度报告（英文版）

ChinaNationalAccordMedicinesCorporationLtd.

Semi-AnnualReport2021

August2021

SectionI.ImportantNotice,ContentsandInterpretationBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.LinZhaoxiong,PrincipaloftheCompany,GuGuolin,personinchargerofaccountingworksandWangYing,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportofSemi-AnnualReport2021isauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.TheCompanyplansnottopaycashdividends,bonusandcarryoutcapitalizingofcommonreserves.

Contents

SectionIImportanNotice,ContentsandInterpretation ...... 2

SectionIICompanyProfileandMainFinancialIndexes ...... 6

SectionIIIManagementDiscussionandAanalysis ...... 9

SectionIVCorporateGovernance ...... 31

SectionVEnviornmentalandSocialResponsibility ...... 33

SectionVIImportantEvents ...... 37

SectionVIIChangesinSharesandParticularaboutShareholders ...... 70

SectionVIIIPreferredStock ...... 76

SectionIXCorporateBonds ...... 77

SectionXFinancialReport ...... 78

DocumentsAvailableforReference

I.Thefinancialstatementscarriedwiththesignatureandsealsoflegalrepresentative,personinchargerofaccountingworksandpersoninchargeofaccountingorgan;II.OriginaltextofalldocumentsoftheCompanyaswellasthemanuscriptoftheannouncementdisclosedinthereportingperiodonJuchaoWebsite.III.TextoftheSemi-AnnualReport2021bearingthesignatureofthelegalrepresentative.

Interpretation

Items	Refersto	Contents
ListedCompany,Company,theCompany,SinopharmAccord,theGroup	Refersto	ChinaNationalAccordMedicinesCorporationLtd.
SINOPHARM	Refersto	ChinaNationalAccordMedicinesCorporationLtd.
SinopharmHolding	Refersto	SinopharmGroupCo.,Ltd,ControllingshareholderoftheCompany
CompanyLaw	Refersto	CompanyLawofthePeople’sRepublicofChina
SecuritiesLaw	Refersto	SecuritiesLawofthePeople’sRepublicofChina
Yuan,10thousandYuan,100millionYuan	Refersto	RMB,RMB10thousand,RMB100million
Terminology:	Refersto
4Dbusiness	Refersto	SPDhospitallogisticssupplychainextensionbusiness,IVDdiagnosticreagentbusiness,CSSDdisinfectionservice,andMWDequipmentlifecyclemanagementbusiness
GPO	Refersto	Grouppurchasingorganizations
Abbreviation:	Refersto
SinopharmHoldingGuangzhou	Refersto	SinopharmHoldingGuangzhouCo.,Ltd.
GuodaDrugstore	Refersto	SinopharmHoldingGuodaDrugstoreCo.,Ltd.
SinopharmHoldingGuangxi	Refersto	SinopharmHoldingGuangxiCo.,Ltd.
ChinaNationalZhijun	Refersto	ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.
ZhijunPharmacyTrade	Refersto	ShenzhenZhijunPharmacyTradeCo.,Ltd.
ZhijunPingshan	Refersto	ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.
MainLuckPharmaceuticals	Refersto	ShenzhenMainLuckPharmaceuticalsInc.

SectionIICompanyProfileandMainFinancialIndexesI.Companyprofile

Shortformofthestock	SinopharmAccord,AccordB	Stockcode	000028,200028
Stockexchangeforlisting	ShenzhenStockExchange
NameoftheCompany(inChinese)	国药集团一致药业股份有限公司
ShortformoftheCompany(inChineseifapplicable)	国药一致
ForeignnameoftheCompany(ifapplicable)	ChinaNationalAccordMedicinesCorporationLtd.
ShortformofforeignnameoftheCompany(ifapplicable)	SinopharmAccord
Legalrepresentative	LinZhaoxiong

II.Person/Waytocontact

	SecretaryoftheBoard
Name	ChenChangbing
Contactadd.	AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince
Tel.	+(86)75525875195
Fax.	+(86)75525195435
E-mail	[e-mail]

III.Others

1.WayofcontactWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot

□Applicable√NotapplicableRegistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhasnochangeinreportingperiod,foundmoredetailsinAnnualReport2020.

2.InformationdisclosureandpreparationplaceWhetherinformationdisclosureandpreparationplacechangedinreportingperiodornot

□Applicable√NotapplicableThenewspaperappointedforinformationdisclosure,websiteforsemi-annualreportpublishappointedbyCSRCandpreparationplaceforsemi-annualreporthavenochangeinreportingperiod,foundmoredetailsinAnnualReport2020IV.MainaccountingdataandfinancialindexesWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

	Currentperiod	Sameperiodoflastyear	Increase/decreaseinthisreporty-o-y(+,-)
Operatingrevenue(RMB)	33,163,091,887.39	27,169,940,188.52	22.06%
NetprofitattributabletoshareholdersofthelistedCompany(RMB)	741,445,013.25	643,451,580.59	15.23%
NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(RMB)	720,954,408.22	627,017,019.45	14.98%
Netcashflowarisingfromoperatingactivities(RMB)	1,229,373,283.57	1,438,204,043.35	-14.52%
Basicearningspershare(RMB/Share)	1.73	1.50	15.33%
Dilutedearningspershare(RMB/Share)	1.73	1.50	15.33%
WeightedaverageROE	5.22%	4.91%	Increase0.31percentagepoints
	Endofcurrentperiod	Endoflastperiod	Increase/decreaseinthisreport-endoverthatoflastperiod-end(+,-)
Totalassets(RMB)	44,190,878,403.95	39,594,533,471.65	11.61%
NetassetsattributabletoshareholderoflistedCompany(RMB)	14,346,870,065.79	13,948,322,652.33	2.86%

V.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina

1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.

2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)

□Applicable√Notapplicable

TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.VI.Itemsandamountsofextraordinaryprofit(gains)/loss

√Applicable□Notapplicable

InRMB

Item	Amount	Note
Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)	-802,029.11	Mainlyprobabilityofgainandlossesfromtheendoflease.
Governmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard)	35,363,341.68	MainlyprobabilityofexemptionandothergovernmentgrantsforspecialpurposeandfinanceDiscount.
Investmentcostswhileacquiringsubsidiaries,jointventuresandassociatedenterprise,lessthanfairvalueoftheidentifiablenetassetsfrominvestedenterprisewhichshouldbeenjoined	578,610.41
Switchbackofprovisionfordepreciationofaccountreceivableandcontractualassetsthatareindividuallytestedforimpairment	88,994.76
Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems	7,540,783.96	Mainlyprobabilityofthenonoperatingincomegeneratedfromthewriteoffoffundsthatdonotneedtobepaidinthecurrentperiod.
Othergains/lossessatisfyadefinitionofextraordinarygains/losses	1,717,435.90
Less:Impactonincometax	12,962,326.01
Impactonminorityshareholders’equity(post-tax)	11,034,206.56
Total	20,490,605.03	--

Concerningtheextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons

□Applicable√NotapplicableInreportingperiod,theCompanyhasnoparticularaboutitemsdefinedasrecurringprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss

SectionIIIManagementDiscussionandAnalysisI.MainbusinessesofthecompanyinthereportingperiodInthereportingperiod,themainbusinessofSinopharmAccordincludespharmaceuticaldistributionandpharmaceuticalretail,specificallyasfollows:

(i)Inthepharmaceuticaldistributionfield,thecompanycontinuestointegratethedistributionandlogisticsbusiness,deeplypenetratesintotheendmarkets,improvesthesteppeddistributionnetwork,createsintelligentsupplychain,anddevotestobecomeaproviderforpharmaceuticalandhealthcareproductsandserviceswiththestrongestinfluence,thehighestshare,themostcompletevariety,thebestservice,andthefastestdeliveryinsouthdistrictofChina.

1.TheCompany’spharmaceuticaldistributionbusinessisestablishedinGuangdongandGuangxi,thecompanyhascompletedthenetworkconstructionofGuangdongandGuangxiin2013,andthebusinesshasextendedtothecounty-levelregions;in2014,weacceleratingtheintegrationofthree-tiercompaniesandtheCompanyachievedanoperationalloverthenetworkin2015.Thenetworkfurtherexpandedin2019andmaindevelopmentdirectionisretailterminals.AsofJune30,2021,in2021,thereare1,061secondaryandtertiarymedicalinstitutionsinoperation;6,564primarymedicalcarecustomersinoperation;and4,947retailterminalcustomers(includingchaindrugstores,singlestoresandhospitalself-payingpharmacies)inoperation.

2.TheCompany’spharmaceuticaldistributionbusinesshasachievedthefirstscaleinGuangdongandGuangxi;TheGuangdongandGuangxiregionshavesubdividedtheformatmarkets,pharmaceuticaldistributionandapparatusconsumables,retaildirectsalesandretaildiagnosisandtreatment,medicalinstrumentlinkage,retaildevelopment,andtheentireindustrybusinessmaintainsarelativelyleadingpositionintheindustry;innovativebusinesscontinuestodevelopnewcustomercooperationmodelsandbecomeamedicalsupplychainmanagementsolutionandserviceproviders;improvenationallogisticsplanningandconstruction,providethird-partylogisticsprofessionalservices,andcreateleadinglogisticsandsupplychainservicecapabilities.(ii)Inthepharmaceuticalretailfield,GuodaDrugstoreisaleadingpharmaceuticalretailenterpriseinsalesscalethroughoutthecountry,andisoneofthefewenterprisesinChinawithnationaldirectsalesdrugretailnetwork.AsofJune30,2021,GuodaDrugstorehasoperated8,439stores,covering20provinces,autonomousregionsandmunicipalities,enteringnearly155largeandmediumsizedcities,whichhasformedadrugstorenetworkscoveringnortheast,easternChina,northernChinaandsoutherncoastalcities,andgraduallyexpandedintonorthwest,centralplainsandinlandcities;Guodadrugstore,thebusinessofwhichweremainlyrelyingonsocialretaildrugstores,hasbeenputtinggreatattentiononthedevelopmentofprofessionalservicesystemwithmedicalresourcesascorecompetitiveness,buildingagroupofstoreswithprofessionalcommercialactivities,whichare

abletoprovideretailsandtherapyservicesthatintegratingmedicalserviceandhealth-careproductssalesandcooperatewithhospitals;atthesametime,theCompanyhasbeenvigorouslydevelopingnewbusiness,exploringandexpandingnewsaleschannels,improvingprofessionalservices,beingdedicatedtotransitfromatraditionalmedicalretailintoaninnovativeserviceenterprise.Bymeansofconventionalproductsretailmanagement,improvingmajorbrandsandexploringbusinesscooperationwithsupplier,acceleratingtheestablishmentandimprovementofDTPbusinessandcontinuationofhealthcareservicesystem,Guodahasbuiltindustry-leadingprofessionalserviceability.TheCompanycomplieswiththedisclosurerequirementofInformationDisclosureGuidelinesfortheShenzhenStockExchangeNo.8-ListingCompanyEngagedinRetailingIndustry(i)BusinessmodeofGuodaDrugstoreThemainbusinessofGuodaDrugStoreisthepharmaceuticalretailchainandthedrugwholesaleanddistributionbusinessforthefranchisestoresandthememberstores,amongwhichthepharmaceuticalretailchainisthecompany'scorebusiness.

(1)Retailbusinessismainlydividedintotwobusinessmodels,i.e.directoperationandfranchiseoperation.ThemainbusinessscopeincludesChineseandWesternpatentmedicines,healthfood,Chineseherbalmedicines,medicaldevicesandothercommodities,amongwhichthepharmaceuticalsalesrevenueofdirectchainstoresisthemainincomesource.Specifically,thecompanypurchasesanddeliversthecommoditiestodirectchainstores,andthestoressellthecommoditiestoend-consumersundertheunifiedpricingpoliciesandmarketingstrategiesformulatedbythecompany.Inaddition,inordertobroadenthesaleschannelsandexpandtherangeofstoreservices,thecompanymeetsconsumers'demandsforonlinedrugpurchasethroughthecombinationofB2CandO2O.Franchisechainoperationisthattheleadingenterpriseauthorizesthefranchiseestouseitsowntrademark,tradename,businessmodel,etc.intheformoffranchisecontract.Thefranchiseeengagesinbusinessactivitiesundertheunifiedbusinessmodelsoftheleadingenterpriseandpayscorrespondingcoststotheleadingenterprise.

(2)Wholesaleanddistributionbusinessoffranchisestores:Thecompanyadoptsthemodelof"centralizedpurchasefromsuppliers,wholesaletosubsidiariesandthirdparties".Thecompany'swholesalebusinesscanfurtherutilizethecompany'scommodityagentadvantages,logisticsanddistributioncapacity,strengthenthecompany'sbusinesscontactswithsmallandmedium-sizedpharmaceuticalwholesalecompanies,smallandmedium-sizedchainpharmacies,drugstores,whichisahelpfulsupplementtothecompany'sretailbusiness.(ii)Thebusinesssituationofretailstoresduringthereportingperiod:

1.AsofJune30,2021,GuodaDrugStorehas8,439stores,including6,890direct-salestores,salesrevenuereaching(excludingtaxes)7862millionyuan;1,549franchisestores,distributionincomereaching(excludingtaxes)651millionyuan.

Region	Direct-salestore		Franchisedoutlet
	Numbers	Salesrevenue(in10thousand	Numbers	Distributionrevenue(in10

		Yuan)		thousandYuan)
North	4,428	488,113	640	30,263
EastChina	1,014	122,450	607	27,825
SouthChina	497	76,422	158	3,802
CentralChina	310	28,277	142	3,232
Northwest	322	49,521	2	24
Southwest	319	21,436	-	-
Total	6,890	786,219	1,549	65,146

Note:North:Liaoning,Shanxi,InnerMongolia,Beijing,Tianjin,Hebei,Jiling;EastChina:Shanghai,Jiangsu,Anhui,Shandong,Fujian,Zhejiang;SouthChina:Guangdong,Guangxi;CentralChina:Henan,Hunan;Northwest:Ningxia,Xinjiang;Southwest:Yunnan

2.Infirsthalfof2021,therewere632direct-salestoresopenedand168storesclosed,anetincreaseofdirect-salestoresof464.

Region	Direct-salestore			Franchisedoutlet
	Numberofstoreincreased	Totalarea(squaremeters)	Numberofstoresshutdown	Numberofstoreincreased	Numberofstoresshutdown
North	421	44,735	-87	106	-10
EastChina	81	8,064	-41	24	-16
SouthChina	41	4,272	-20	17	-27
CentralChina	23	2,276	-11	7	-2
Northwest	35	3,758	-8	2	-
Southwest	31	3,829	-1	-	-
Total	632	66,933	-168	156	-55

3.MedicalinsurancequalificationofthestoresAsofJune30,2021,theCompanyhas6,890chainstoreswithdirectlyselling,and5,958pharmacystoresobtainedthequalificationof“Designatedretailpharmaciesofmedicalinsurance”,representing86%ofthetotalpharmaciesoftheCompany.

Region

Numberofstores

Storesobtainedthequalificationof“Designatedretailpharmaciesofmedical

Ratiointotalpharmaciesin

		insurance”	regions
North	4,428	3,955	89%
EastChina	1,014	779	77%
SouthChina	497	427	86%
CentralChina	310	246	79%
Northwest	322	275	85%
Southwest	319	276	87%
Total	6,890	5,958	86%

4.Top10storesintermsofoperatingrevenueThecumulativeoperatingrevenuefromtop10storestakes8.7%intheCompany’soveralloperatingrevenue.

Nameofthestore	Address	Dateofopening	Operationmode	Propertyownership
SinopharmHebeiLerentangMedicineChainCo.,Ltd.(GeneralStore)	Shijiazhuang	September2010	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.(GeneralStore)	Hohhotcity	March2003	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.(ZhongliStore)	Taiyuan	September2002	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.(EryuanStore)	Taiyuan	February2011	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(ShowroomStore)	Shenzhen	December2006	Directlyoperated	Rentalproperties
BeijingJinxiangPharmacyChainCo.,Ltd.(XidanJinxiangPharmacy)	Beijing	May1997	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.(YangzhouBaiyulanMedicineShop)	Yangzhou	September1991	Directlyoperated	Rentalproperties
FujianGuodaDrugstoreChainCo.,Ltd.(XiamenNewSpecialDrugStore)	Xiamen	March2005	Directlyoperated	Rentalproperties
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(Buxinvillagebranch)	Shenzhen	April2017	Directlyoperated	Rentalproperties

SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(LianhuaNorthBranch)

Shenzhen

December2003

Directlyoperated

Rentalproperties

5.Operatingefficiencyofdirect-salestoresinreportingperiod

Region	Numberofstores	Operatingareaofthestores(squaremeters)	Dailyaverageefficiency(tax-included,Yuan/SquareMeters)	Rentalefficiency(tax-included,annualsalesvolume/rental)
North	4,428	555,915	49	14
EastChina	1,014	127,251	53	13
SouthChina	497	55,310	76	16
CentralChina	310	36,215	43	13
Northwest	322	38,396	71	27
Southwest	319	38,861	30	15

Note:Dailyaverageefficiency=Averagedailyoperatingincome/Operatingareaofthestores;Averagedailyoperatingrevenue=Operatingrevenue(tax-included)ofthestoreintheYear/OperatingdaysofstoreintheYear.Rentalefficiency=Annualsalesvolume/Yearlyrental

6.Structureofthecategoryatretailterminal

Category	Firsthalfof2021	Firsthalfof2020
Healthcareproducts	4.7%	6.5%
Conveniencefood	0.8%	0.9%
RxDrug	54.5%	52.9%
OTC	25.3%	27.2%
TraditionalChinesemedicine	3.9%	5.7%
Personalcare	1.1%	1.2%
Homeconvenience	0.2%	0.3%
Householdhealthproducts	5.3%	5.0%
Proportionofothercategories	4.1%	0.2%

7.Purchasingandsupplies:

GoodssuppliersofGuodaDrugstorearemainlyexternalsuppliersandassistaffiliatedenterpriseofSINOPHARMandprivatebrands.Topfivesuppliersforyearof2021:

Ranking	Purchaseamount(taxincluded)(10thousandyuan)	Procurementratio
No.1	10,300	7.5%
No.2	6,753	4.9%
No.3	6,109	4.4%

No.4	4,530	3.3%
No.5	4,345	3.2%

8.MembermanagementandservicebusinessThesalesfrommembershipaccountedfor67%inthefirsthalfof2021,increase6%fromfirsthalfyearof2020.Meanwhile,inthefirsthalfof2021,numberoftransactionshave53%uponay-o-ybasis.Theproportionofmembertransactionsintotaltransactionsincreasedfrom55%lastyearto64%.Thenumberofmembertransactionsmaintainsasteadygrowthintheprocessofcontinuousimprovementinsales,whichplayedakeysupportingroleinthesteadyimprovementofthecompany'sperformance.

9.WarehousingandlogisticsduringthereportingperiodBythefirsthalfof2021,GuodaDrugstorehas33logisticsdistributioncentersacrossthecountry,withatotalconstructionareaofmorethan180,000squaremeters,whichisusedforthestorageandcirculationofnormaltemperature,cool,andrefrigeratedgoods.Thereare176transportvehicles,withanaveragedailyoperationofmorethan280,000items,and27,000customerboxes,thedeliveryamountismorethan52million,andthecompany'soveralllogisticsannualdistributionboxesexceed9millionpieces.

10.On-linesalesinthePeriodInthefirsthalfof2021,theO2Orevenuefromdirectlysalesstoreswas255millionyuan,ay-o-yincreaseof122%.

II.Corecompetitivenessanalysis

1.StrongnetworkcoverageandlayoutRelyingontheperfectnetworkandrichvarietyresources,SinopharmAccordhascompletedrugdistributionnetworksinGuangdongandGuangxiProvincesbasedonwholesaleandretailintegration,andthesaleshaveresultedinsolidgrowthovertheyears.andallagesaleshavegrownintheyears.Duetothenationalretailnetworklayout,thescalecontinuestobeinthelead.DrugdistributionbusinesscoversbothGuangdongandGuangzhou,including44distributionbusinesssubsidiariesin35prefecture-levelcitiesinGuangdongandGuangzhou(excludingGuangdongLogistics,ShenzhenLogisticsandGuangxiLogistics),whichfullycoversmedicalinstitutionsatalllevels,smallsocialhospitalsandretailchainsinglestoreterminals;RetaildiagnosisandtreatmentbusinesscoverstheDTPandpharmaciesnexttothehospitals(GuodaDrugStore),reaching109stores.Nationwidelayoutofretailbusiness:SinopharmAccordhasthelarge-scaleGuodaDrugStoreretailchainnetwork,covering20provinces,autonomousregionsandmunicipalities,enteringnearly155largeandmedium-sizedcities,formingapharmacynetworkcoveringNortheast,EastChina,NorthChina,SouthChinaandgraduallyexpandingintothenorthwest,centralplainsandtheinlandurbanagglomeration.

2.Richvarietyresources

Afteryearsofcultivation,thecompany'sdistributionbusinesshasrichvarietyresourcesinvariousfieldssuchasdrugs,andconsumables,andhasestablishedextensivecooperativerelationswiththousandsofdomesticmanufacturersandcommercialenterprises,andestablishedstablebusinessrelationshipswithhundredsofimportandjointventuremanufacturers,withoverallbusinessrangeofmorethan50,000productspecifications.GuodaDrugstoreoperatesnearly160,000merchandises.Withitsrelativelycomprehensivepurchasingnetworkandyearsofexperienceincommoditymanagement,GuodaDrugstorehasestablishedamerchandisesystemwithwidecoverage,highprofessionalization,andrichvarieties.

3.CompletelogisticsanddistributionsystemSinopharmAccorddistributionadoptssupplychainmanagementandwarehousemanagementsolutionssystem,equippedwith5large-scaleautomatedlogisticscenter,includingGuangzhou,Shenzhen,Foshan,NanningandLiuzhou,and15regionaldistributioncenters,andbecomingaladderlogisticsanddistributionnetworks.InGuangdongandGuangxi,itisthefirstenterprisethathasachievedthethird-partylogisticqualification,andhastheprofessionalpharmaceuticallogisticscapabilitieswiththelargestscale,themostextensivenetwork,andthemostcompletemodesinsouthdistrictofChina.GuodaDrugstoreownsanationwidemodernlogisticsanddistributionsystem,andthelogisticswarehousesarelocatedin20provinces,has33large-and-smalllogisticswarehouses,coveringmorethan180,000squaremeterswarehousesintotal.ThecompanyplanstocontinuetopromotethelogisticsintegrationinShanghaiandtheWanminmodernlogisticstransformationandupgradinginLiaoningandShanxisoastomeetthebusinessneedsofthe"14

th

Five-YearPlan"planningofGuodaDrugStore.

4.Unique-influenceSinopharmbrandBrandoftheCompanyanddistribution,industrychild-brandandcontrollingshareholderandactualcontroller’sbrandcomedowninonecontinuousline,dependingonpowerfulforceofcentralenterprises,theCompany’spopularityandinfluenceareprominentdaybydayintheindustry.

6.AdvantagesofwholesaleandretailintegrationSinopharmAccorddistributionhasavarietysalesnetworkdistributingtomedicalinstitutionsandretailpharmaciesinallcitiesandareasinGuangdongandGuangxiprovinces,realizingthemedicalinstrumentretaildevelopmentofretaildirectsales,retaildiagnosisandtreatment;carriesoutnationalchainexpansioncategorycooperationunderthe"Internet+"mode,promotestheresourcesupgradeandcooperationofchainO2Omode;promotesthesinglestoreterminaltoreplicate"MemberStoreMode"inGuangdongprovince;vigorouslyexpandstheDTPpharmacy+storesnexttohospitals,andbuildsacustomernetworktoundertakeprescriptionoutflowbyrelyingontheintroductionofhigh-valuespecialdrugs,prescriptiondrugsforchronicdiseasesandotheradvantages.

7.TechnologyenablingDrivenbydigitaltransformation,andbasedoninformationmanagementandcontrolsystemcooperatingsupplychainmanagement,SinopharmAccordcloselycombinesthebusiness,controlandlogisticsinformationsystemtoachieveseamlessconnectionsofeachlink,formingthefullchainconnectionofbusinessflow,logistics,capitalflowandinformationflow.

8.Createa4DbusinessservicemodelSinopharmAccorddistributioniscommittedtothetransformationinnovation,andvigorouslypromotestheSPDprojectlanding,formsregionaladvantagesandcoverageinGuangzhouandShenzhenandradiatesGuangdongandGuangxiprovinces,andtakesthelaunchedSPDprojectasabreakthrough,realizesthejointlaunchofSPD+IVDprojects,linksMEDandCSSDinnovationbusiness,takesadvantageofintegration,meanwhile,promotesthejointdevelopmentofsubsidiariesinGuangdongandGuangxiprovinces,andbecomesanindustry-leadingproviderofmedicalsupplychainmanagementsolutionsandservices.III.Mainbusinessanalysis

Introduction:

Inthefirsthalfof2021,undertheinfluenceoftheCOVID-19pandemic,centralizedprocurementofdrugs,andpricereductionofnegotiationdrugs,businessstructurehadin-depthchanges,andprofitmarginoftraditionalbusinesscontinuedtobereduced.SinopharmAccordtookvariousmeasuresunderthepressure,unswervinglypromotedthelandingof"14thFive-YearPlan"planning,focusedonwholesaleandretailintegrationtobuildbusinesscorecompetitiveness,technologyenergizedandbuiltsmartsupplychain,serviceupgradeacceleratedthetransformationtoleadinnovation-drivendevelopment,andcomprehensivelybuiltanewpatternofhigh-qualitydevelopment.Inthefirsthalfof2021,theCompanyhasaccumulatedoperatingrevenueof33163millionyuan,ay-o-ygrowthof22.06%;operatingprofitachieved1137millionyuanwith12.13%uponay-o-ybasis;thenetprofitamountedas908millionyuan,ay-o-yincreaseof12.62%andthenetprofitattributabletoshareholdersoflistedcompanywas741millionyuan,anincreaseof15.23%fromayearearlier.Inthefirsthalfof2021,SinopharmAccorddistributionbusinessachievedacumulativeoperatingincomeof

22.824billionyuan,withayear-on-yeargrowthof20.24%.Byovercomingtheimpactofthepandemiconmedicalinstitutions,ithasconsolidatedtheadvantagesofdirectsellingbusiness,andfurtherenhancedthecoverageofprimarymedicalinstitutions.Multiplebusinessformshaveachievedrapidgrowth,amongwhichdirectsalesrevenueofhospitalsreached14.415billionyuan,anincreaseof23.81%onayear-on-yearbasis;directsalesrevenueofothermedicalinstitutionsreached1.738billionyuan,anincreaseof20.98%onayear-on-yearbasis;directsalesrevenueofretailreached3.236billionyuan,anincreaseof10.21%onayear-on-yearbasis;instrumentconsumablesbusinessrevenuewas2.864billionyuan,withayear-on-yeargrowthof30.04%;andtherevenueofretaildiagnosisandtreatmentbusinesswas934millionyuan,anincreaseof23.27%onayear-on-year

basis.SinopharmAccorddistributionbusinessachievednetprofitof462millionyuaninthefirsthalfof2021,anincreaseof14.26%onayear-on-yearbasis.Inthefirsthalfof2021,GuodaDrugstorecompletedanoperatingrevenueof10841millionyuanintotal,ay-o-ygrowthof25.87%.Varioustypesofbusinesshavedevelopedrapidly,amongthem,thedirectnon-DTPrevenuewas6557millionyuan,29%uponay-o-ybasis;directDTPrevenuewas1305millionyuan,ay-o-ygrowthof34%;wholesale&distributionrevenuewas1987millionyuan,ay-o-yincreaseof25%;revenuefromO2Owas255millionyuan,ay-o-yincreaseof122%.GuodaDrugstoreachievedanetprofitof263millionyuaninthefirsthalfof2021withagrowthof6.14%fromayearearlier;thenetprofitattributabletoparentcompanyamountedas199millionyuan,ay-o-yincreaseof10.62%.Infirsthalfof2021,theaccumulativeinvestmentincomefromassociateswas158millionyuan,ay-o-yincreaseof18.03%.(i)"FightagainstCOVID-19"underthenormalizationofthepandemicAccordingtotherepeatedoutbreaksincertainregions,SinopharmAccordheldspecialmeetingsonpandemicpreventionandcontrolinatimelymanner,implementedrelevantarrangements,anditssubsidiariesatalllevelsstrivedforandundertookthereservesofpandemicmaterials.SinopharmpharmaciesandGuodaDrugStoresatthequarantineareascomprehensivelyrespondedtodemandandlaunchedtheemergencymodelofonline"wechat-enterprisecustomerserviceguide+storestakingorders+logisticsvehicledelivery",openedasusual,especiallyGuangdongGuodaFangcunStoreopenedfor576hours,providingprofessionalconsultation,medicinedeliveryservicesforpatientswithchronicdiseasesinthequarantineareas.Allbusinessdepartmentscoordinatedandsupportedthepreparationofnucleicacidtestingmaterialsforallstafforganizedbythegovernment.SinopharmGuangdongLogisticsinvestednearly2000squaremetersofcoldstoragehouse,120refrigeratedtrucks,morethan2000setsoftemperaturecontrolboxes,companyemployeesinGuangdongandShenzhenquicklyformedvolunteerteamstocooperatewithotherstaffsoastoensurethequality,safety,efficiencyandorderofthevaccinewarehousinganddeliveryservicesinthewarehouse.Thecompany'ssubsidiaries,SinopharmGuangdongLogistics,SinopharmZhanjiang,SinopharmShaoguan,ShenyangGuoDa,NanjingGuoDa,NingxiaGuoDa,JiangmenGuoDaandmanyothersubsidiarieshavewonthegovernment'santi-pandemicawards.(ii)Focusonhighqualitydevelopment,publicizeandimplementthe"14thFive-YearPlan"strategyEffectivelyorganizedandcarriedoutthepublicityandimplementationworkofthe14thFive-YearPlanofSinopharmAccord,sortedoutandformedtheplanningstudypublicitydraft,andpublicizedandimplementedtheplanthroughvarioustypesofmeetings,trainingandactivitiessuchasthePartyandtheYouthLeague,laborunionandhumanresources.SinopharmAccorddistributionpromotedtheimplementationofthe"14thFive-YearPlan"strategy,andcompletedtheformulationof11thematicsub-plansofthe"14thFive-YearPlan"fordistribution;GuodaDrugStorehadanin-depthdiscussiononstrategicgoals,industrytrends,strategicpathsandresourceallocation,andmadeclearstrategicgoalsanddirections.(III)SinopharmAccorddistributionbusiness:strategicguidanceandqualityandefficiencyimprovementstartedanewjourneyofhigh-qualitydevelopment.

1.Strategicdriveacceleratesthenewpatternofonebodywithtwowings

(1)Consolidatedandtappedthepotentialoftraditionalbusiness,andstrengthenedthemarketshareleadingadvantages.ActivelyrespondedtothechallengesofthenewroundofCOVID-19pandemicandthechangesinpoliciesandmarkets,andtraditionalbusinesscontinuedtobreaktheice.Arrangedbiddingandcentralizedprocurementinadvance,andlinkedpurchaseandsalestogethertoseizetheshare,eachbatchofcentralizedprocurementvarietiesheldtheleadincommissiondeliveryrate.Seizedtheopportunityofmulti-platformoperation,grabbedtheshareofcentralizedprocurementresources,andnewlyincreased2exclusivevarietiesofcentralizedprocurementintheprovince.Coordinatedwholesaleandretail,strivedfornewproducts,andincreased4,802newproductspecificationsinGuangdongandGuangxiprovinces,utilizedtheexclusivechannelofretailDTPShutanming,expandedthetopfourchainagreementsofXishumei,hierarchicalmanagement,shareincrease.Themarketshareofkeyvarietiescontinuestobreaktheice.Amongthem,domesticandintegrativemanufacturersarerankedinthetop10respectively,and5Guangdongmanufacturershaveamarketshareofmorethan50%.Matchedthegradingservicepackage,focusedonpromotingprojectcooperation,continuedtobreakiceformarketsharesofkeyvarieties,amongwhichdomesticandjointventuremanufacturersrespectivelyrankedinthetopten,and5manufacturershadmorethan50%ofmarketsharesinGuangdong.

(2)Consolidatedandtappedthepotentialoftraditionalbusiness,multi-businessfeaturesgraduallyemerged,marketingabilitycontinuouslyimproved,andgrowthpotentialcontinuouslyreleased.Intermsofinstruments,SPDcontinuedtoexpand,followedupprojectsofprovincialmaternityandchildhealthcarehospital,andcoordinatedthemanagementoftheprojectsofthecompanyandYuexingCompany.Establishedpartialfilesofintegratedinstruments,collectedthemarketsituationofconsumables,thekeycategoriesofdistributionandtheproductdevelopmentplanofallcitiesintheprovince.Thewinningrateofhospitaldecoctionpiecesincreased,andthecustomizedcooperativesalesofdecoctionpiecesincreased,forexample,thecordycepssinensissalesofGuodaDrugStoreincreased115%yearoveryear.Themarketexpansionofrefineddecoctionpieceshasachievedinitialresults,andthesalesofPobidecoctionpieceshaveincreased.Intermsofimport,wehaveobtainedtheimportdistributionchannelofDinoprostone,andtheimportquantity,importamountandsalesvolumehaveallincreased.ActivelyexpandedCSOproductprojects,integratedthewholesaleandretailnetworkresources,andpromotedmarketingsystemandteambuilding.

(3)Retaildirectsellingfocusedonthedevelopmentmeasuresof"wholesaleandretailintegration",focusedontheshareincrease,vigorouslydevelopedretaildirectsellingnetwork,promotedmodelinnovationandserviceupgrade,andstrengthenedthecorecompetitivenessofbusiness.Continuedtodevelopretailpuresalesbusiness,withasalesgrowthof42%.UnitedGuodaheadquarters,branchesandmanufacturerscloselyforlinkage,precisionmarketingpromotedthenumberofprojects,increasedthedepthoftop100chaincooperation,increasedproductintroduction,andproductspecificationspromotedtheincreaseoftheshare.B2BprojectandHengxingsiteenrichedthemarketingmode,realizedonlinedailypromotion,andimprovedtheonlinerate;Guangzhousite

increasedthenumberofonlineproductspecifications,anddevelopedDTPspecialzone.Formemberstoreproject,therewereover1,000memberstores.Provincialretailintegrationprojectrealized9,014customersinoperationinasingleterminalstore,andtheimplementationofmarketingpolicycombinationcontinuouslypromotedtheonlineorderpurchasingandreal-timepayment.Keyvarieties/manufacturersjointlypromotedprojects,increasedthenumberofproductspecificationsforendcustomercooperation.Front,middleandbackgrounddivisionoflaborandcoordinationimprovedthecustomermulti-touchcommunicationefficiency.

(4)Retaildiagnosisandtreatmentacceleratedthenetworklayout,integratedthemedicaltreatment,medicalinsuranceandmedicalresources,improvedtheprofitabilityofsinglestores,andgraduallybuiltuptheadvantagesofmulti-levelandthree-dimensionalretaildiagnosisandtreatmentserviceswithcharacteristiccompetitiveness.ThenetworkinGuangdongandGuangxiprovinceshasfullycovered109hospitals,including82inGuangdongProvinceand27inGuangxiProvince,outpatientspecificprojectsandcommercialinsuranceprojectsbecamethedrivingforceforthekeyperformance.Atotalof31prescriptioncirculationprojectshavebeenlaunched,thereweremorethan45,000prescriptionsinvolvinghospitaloutpatientserviceandInternetfurtherconsultationprojectcirculation.

(5)Rapidlycultivatedinnovativebusiness,andcreatedaseriesofinnovativeserviceproductsystem.Focusingontheguidanceofmedicalreformpolicyandcorporatestrategy,weacceleratedthebuildingofnewbusinesscorecompetitivenessandmarketscale.4Dbusinessandthird-partylogisticsserviceshadrapidgrowth,servicefeerevenueincreased54%yearoveryear.

2.Improvequalityandefficiency,andincreaseefficiencythroughcontinuoushigh-qualityoperation

(1)Profit-oriented,benefitsofresourceallocationconstantlyhavebeenimprovedthroughmeasuressuchastalentallocation,incentivescheme,supplychainoptimization,industry-financedualdrive,processoptimizationandsoon,andtheoperationqualityandbenefitshavebeenimproved.

(2)Furtherpromoteintegratedmanagementandcontrol,integratebusinessacrossregions,strengthenresourceintegration,andimproveoperationalefficiencyandincreasebenefits.

3.DigitaltransformationandtechnologypromotessupplychainupgradeTakedigitaltransformationasanimportantstartingpoint,furtherenhancethedigitalcapabilityofsupplychain,promotesupplychainupgrade,andimproveoperationalefficiency.Consolidatethefoundationofdigitaltransformation,deeplyoptimizetheorganizationalstructure,realizeintegratedmanagement,andestablishthefirstsharingplatform.Integrationenabling,externalserviceimprovement,internalefficiencyimprovement;SPDprovidesin-depthservicestocreatesampleproductsandimprovethereplicationcapability;Digitallogisticsoptimizesupplychain,andachieveefficiencyandcostreduction;Logisticsthird-partybusinessesfocusonbusinessdevelopment,acceleratenewbusinesssupport;Theretailendenablestoeffectivelyrespondtoandexpandthedualchannelsofmedicalinsurance.

4.Riskpreventionandcontrol,consolidatebusinessdevelopmentandcontrollineofdefenseConsolidateriskmanagementandcontrolsystemsandmechanisms,strengthenriskpreventionandcontrolwarningandrefinedmanagementandcontrol,furtheroptimizethequalityofoperations,andensurebusinessdevelopment.(iv)GuodaDrugStorebusiness:grabopportunities,innovation-driven,andbuildnewpatternforthecompany’shighqualitydevelopment

1.Acceleratethefullnetworklayout,andthecompany'sscalecontinuestoexpand.

(1)Externalextension:MakefulluseofSinopharmresourcestoactivelypromotetheimplementationofinvestmentandmergerprojects.Inthefirsthalfof2021,therewere257newinvestmentprojectsandstores;activelysearchedfornewprojects,andacceleratedthepromotionoftheinvestmentprojects.

(2)Endogenousgrowth:GuodaDrugStorehas8,439directsales+franchisestoresintotal.Duringthereportperiod,788newstoreswereopenedand223storeswereclosed,withanetincreaseof565stores,reachinganewhigh;newlyopened632direct-salestores,achievingsalesof117millionyuan,amongwhichtherewere48newlyopenedstoresnexttothehospitals,arecordhighinrecentyears.Atpresent,Guodahas697direct-salestoresnexttothehospitalswithatotalsalesof2.03billionyuaninthefirsthalfoftheyear,contributingprofitof101millionyuan.Thetotalsalesofnewstoresreached452millionyuan.Atthesametime,theheadquarterscooperatedwiththesubsidiariestodeepenthenetworklayout,8subsidiarieshavesetup63storesin6prefecture-levelcitiesand55storesin10county-levelcities/counties.Atpresent,thecity-levelcitiesinShanxiandNingxiahaveachievedfullcoverage.

2.Strengthenthecooperationofthewholesupplychainandimprovetheoperationandmanagementefficiency

(1)Productoptimization:Throughtheintroductionofnewproducts,optimizedthecompany'scommoditystructure.Inthefirsthalfoftheyear,wecompletedtheauditformorethan40,000newproducts,andcompletedplanningevaluationof475newproducts,andcompletedevaluationof260commoditiesofitsownbrand.Optimizedthecostofgoodsthroughthedevelopmentofitsownbrandvarieties,andimprovedthecompany'sgrossprofit.Inthefirsthalfoftheyear,thecompanycompletedthedevelopmentproposalsontheself-ownedbrandvarietythroughtheanalysisofthecommodityline.

(2)Optimizedandimprovedtheprovincial-levelplatformbuilding,wholesaleandretailintegration,andmultiplewarehousesinoneregion.Inthefirsthalfofthisyear,logisticsintegrationprojectsinLiaoning,Yangzhou,XinjiangandShanghaihavebeenlaunched.

(3)Carriedoutmarketingincrementalactivities,addingeffectivemembershipof3.933million,ayear-on-yearincreaseof27%.Thenationwideeffectivememberwas21.81million,rising6%yearoveryear.

3.Stepupomni-channelpenetrationandinnovatebusinesstransformationandupgradingInthefirsthalfof2020,thecompanyachievedsalesof255millionyuan,rising122%yearonyear.OrdinarycommercialinsurancehasintroducedPinganmedicineanddiagnosiscard,medtreehealth,etc.;MajordiseasecommercialinsurancehasintroducedZhonganHealthDTPandHainanShangzeDTP.Theself-operatedplatformhad161livebroadcastsinthefirsthalfofthisyear,andtheonlinemembersofthee-commerceplatformexceeded6million.Newstoretypeattempt:CombiningwithsomeelementsofWBA,GuodaDrugStoresuccessfullybuiltthefirstSPS+healthnewconceptstore--SinopharmGuodaDrugStoreLonghuaEastRoadStore.Thestoreintegrateshealth,beauty,profession,convenienceandwisdomintoaone-stopshoppingstore,creatinga"comprehensive,professional,andtop"newmodel.

Y-o-ychangesofmainfinancialdata

InRMB

	Currentperiod	Sameperiodoflastyear	Y-o-yincrease/decrease	Reasonsforchanges
Operatingrevenue	33,163,091,887.39	27,169,940,188.52	22.06%	Ay-o-yincreaseof22.06%;intheyear,rapidgrowthofrevenuefromvarytypesofdistribution,andunderthevigorousdevelopmentofretailbusiness,operatingrevenueincreasedy-o-y.
Operatingcosts	29,216,837,201.07	23,971,029,719.44	21.88%	Ay-o-ygrowthof21.88%;thegrowthtrendisbasicallyinlinewiththerevenue.
Sellingexpenses	2,307,485,529.77	1,728,738,818.60	33.48%	Ay-o-ygrowthof33.48%;insecondof2020,subsidiaryoftheCompany-GuodaDrugstoreacquiretheChengdaFangyuanPharmaceuticalGroupCo.,Ltd,thanthesalesexpenseshavegreatlygrowthoversameperiodlastyear.
Administrativeexpenses	492,536,936.71	443,287,144.92	11.11%	Nomajorchanges
Financecosts	107,243,003.15	65,313,829.62	64.20%	Ay-o-ygrowthof64.20%;inthesecondhalfof2020,alargeamountofequity

				acquisitionconsiderationhavebeenpaid,balanceofbanksavingsdeclined,thantheinterestincomefromsavingsdecreasedonay-o-ybasis,andtheinterestonsupplychainfinancingincreasedinthePeriod
Incometaxexpenses	238,426,259.04	210,106,764.35	13.48%	Nomajorchanges
Netcashflowsfromoperatingactivities	1,229,373,283.57	1,438,204,043.35	-14.52%	Nomajorchanges
Netcashflowsfrominvestingactivities	-291,260,821.37	-666,346,816.87	56.29%	Ay-o-ygrowthof56.29%;theamountpaidfortheacquisitionofsubsidiariesbysubsidiary-GuodaDrugstoreinthecurrentperioddecreasedfromthesameperiodlastyear
Netcashflowsfromfinancingactivities	-806,011,505.39	-1,197,318,438.51	32.68%	Ay-o-ygrowthof32.68%;thepaymentstonon-financialinstitutionsfelly-o-y,andatsameperiodlastyear,theinvestmentamountpaidforacquisitionoftheenterprise(PudongNewAreaofShanghaiPharmaceuticalMedicineLtd)underthesamecontrolbysubsidiaryoftheCompany-GuodaDrugstore
Netincreaseincashandcashequivalent	132,492,959.44	-425,509,148.00	131.14%	Ay-o-ygrowthof131.14%;paymentsfromsubsidiary-GuodaDrugstoreforacquisitiondecreasedoverthatoflastyear

Majorchangesonprofitcompositionorprofitresourcesinreportingperiod

□Applicable√NotapplicableNomajorchangesonprofitcompositionorprofitresourcesoccurredinreportingperiod.Constitutionofoperationrevenue

InRMB

	Currentperiod		Sameperiodlastyear		Increase/decreasey-o-y(+,-)
	Amount	Ratioinoperationrevenue	Amount	Ratioinoperationrevenue
Totalofoperationrevenue	33,163,091,887.39	100%	27,169,940,188.52	100%	22.06%
Accordingtoindustries
Pharmaceuticaldistribution	23,157,094,599.17	69.83%	19,185,884,075.68	70.61%	20.70%
Retailpharmacy	9,853,255,644.48	29.71%	7,876,117,404.69	28.99%	25.10%

Other	152,741,643.74	0.46%	107,938,708.15	0.40%	41.51%
Accordingtoproducts
Pharmaceuticals	30,006,046,182.11	90.48%	24,375,725,625.65	89.71%	23.10%
Medicaldevicesanddisposables	2,210,930,715.28	6.67%	2,185,440,182.47	8.04%	1.17%
Diagnosticreagents	515,191,908.40	1.55%	335,716,038.17	1.24%	53.46%
Medicalequipment	278,181,437.86	0.84%	165,119,634.08	0.61%	68.47%
Other	152,741,643.74	0.46%	107,938,708.15	0.40%	41.51%
Accordingtoregion
China	33,163,091,887.39	100.00%	27,169,940,188.52	100.00%	22.06%

Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit

√Applicable□Notapplicable

InRMB

	Operatingrevenue	Operatingcost	Grossprofitratio	Increase/decreaseofoperatingrevenuey-o-y	Increase/decreaseofoperatingcosty-o-y	Increase/decreaseofgrossprofitratioy-o-y
Accordingtoindustries
Pharmaceuticaldistribution	23,157,094,599.17	21,760,517,286.11	6.03%	20.70%	20.73%	-0.03%
Retailpharmacy	9,853,255,644.48	7,355,870,065.11	25.35%	25.10%	24.21%	0.54%
Accordingtoproducts
Pharmaceuticals	30,006,046,182.11	26,306,817,487.33	12.33%	23.10%	22.20%	0.65%
Accordingtoregion
China	33,163,091,887.39	29,216,837,201.07	11.90%	22.06%	21.88%	0.13%

Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end

□Applicable√NotapplicableReasonsfortheabove30%changesinrelevantdataonay-o-ybasis

√Applicable□Notapplicable

1.Inthisperiod,DiagnosticreagentsandMedicalequipmentincreasedby53.46%and68.47%respectivelycomparedwiththesameperiodoflastyear,mainlyduetotheimplementationofthecompany'sdevelopmentstrategy,theadjustmentofbusinessstructuretransformation,andthepromotionofinnovativebusinessdevelopment.

2.Otherbusinessinthisperiodincreasedby41.51%comparedwiththesameperiodoflastyear,mainlyduetotheincreaseinincomefromdrugwarehousinganddeliveryservice.

IV.Analysisofthenon-mainbusiness

□Applicable√Notapplicable

V.Analysisofassetsandliabilities

1.Majorchangesofassetscomposition

InRMB

	Endofcurrentperiod		Endoflastyear		Ratiochanges	Notesofmajorchanges
	Amount	Ratiointotalassets	Amount	Ratiointotalassets
Cashandbankbalances	5,876,638,427.56	13.30%	5,998,204,295.87	15.15%	-1.85%	Nomajorchanges
Accountsreceivable	17,761,176,449.25	40.19%	13,799,971,014.22	34.85%	5.34%	Nomajorchanges
Contractassets	17,066,105.53	0.04%	15,177,731.64	0.04%	0.00%	Nomajorchanges
Inventories	7,219,658,618.62	16.34%	6,285,010,674.46	15.87%	0.47%	Nomajorchanges
Investmentproperties	123,389,130.71	0.28%	127,444,379.94	0.32%	-0.04%	Nomajorchanges
Long-termequityinvestment	2,427,605,792.21	5.49%	2,287,019,627.99	5.78%	-0.29%	Nomajorchanges
Fixassets	840,386,519.64	1.90%	854,191,083.27	2.16%	-0.26%	Nomajorchanges
Constructioninprocess	64,636,735.93	0.15%	46,631,190.23	0.12%	0.03%	Nomajorchanges
Right-of-useassets	2,523,874,174.71	5.71%	2,356,952,392.99	5.95%	-0.24%	Nomajorchanges
Short-termborrowings	4,632,933,904.39	10.48%	1,612,187,020.12	4.07%	6.41%	ThesupplychainfinancingincreasedinthePeriod
Contractliabilities	316,827,151.78	0.72%	368,600,357.14	0.93%	-0.21%	Nomajorchanges
Long-termborrowings	61,633,794.44	0.14%	31,637,173.89	0.08%	0.06%	Nomajorchanges
Leaseliabilities	1,361,131,352.80	3.08%	1,303,054,163.90	3.29%	-0.21%	Nomajorchanges

2.Mainforeignassets

□Applicable√Notapplicable

2.Assetsandliabilitymeasuredbyfairvalue

√Applicable□Notapplicable

InRMB

Item	Openingamount	Gain/lossofchangesinfairvalue	Cumulativechangesoffairvaluereckonedintoequity	ImpairmentaccrualinthePeriod	AmountpurchasedinthePeriod	AmountsoldinthePeriod	Otherchanges	Endingamount
Financialassets
Otherequityinstrumentinvestment	99,488,340.28							99,488,340.28
Othernon-	120,972,350.24						-2,997,441.73	117,974,908

currentfinancialassets				.51
Receivablefinancing	1,404,987,700.38		-1,059,080,812.83	345,906,887.55
Totalofabove	1,625,448,390.90		-1,062,078,254.56	563,370,136.34
Financialliability	0.00			0.00

Contentofotherchanges

1.Othernon-currentfinancialassetsarethefairvalueofthesharesofSinopharmZhongjinMedicalIndustryFund(hereinafterreferredtoasthe"IndustryFund")subscribedbytheCompany.Otherchangesarethewithdrawalofinvestmentprojectsofthefund,andtheinvestmentcostofthewithdrawnprojectsisreturnedinaccordancewiththeagreement.

2.Inthefinancingofreceivables,otherchangeswerecausedbychangesinbankacceptancebillsheldinthecurrentperiod.WhetherthemeasurementattributeformainassetsoftheCompanyhavechangedsignificantlyinthereportingperiod

□Yes√No

4.Assetsrightrestrictiontillendofreportingperiod

2021-6-30

2020-12-31

Note

Cashandbankbalances	338,186,269.94	593,091,037.88	(1)
Endorsednotesreceivableandreceivablefinancing	20,196,089.49	27,939,151.58	(2)
Pledgedreceivablefinancing	-	2,620,000.00	(3)

358,382,359.43

623,650,189.46

(1)On30June2021,theCompanyhasrestrictedmonetaryfundswithbookvalueof338,186,269.94Yuan(on31December2020:

593,091,037.88Yuan),mainlyincludesthedepositsofbankacceptancebill,frozenfundsandspecialreservefundsetc.

(2)On30June2021,theCompanyhasareceivablefinancingwithabookvalueof20,070,999.69Yuanandnotereceivablewithabookvalueof125,089.80yuan(on31December2020:23,843,867.66yuanreceivablefinancingand4,095,283.92Yuannotereceivable),whichhasendorsedbutnotyetdue.

(3)On30June2021,theCompanyhasabookvalueof0.00Yuan(31December2020:2,620,000Yuan)receivablefinancingpledged.

(4)On30June2021,theCompanyhasabookvalueof0.00Yuan(31December2020:N/A)notereceivablediscountedbutnotyetdue.

VI.Investment

1.Overallsituation

√Applicable□NotapplicableDuringthereportingperiod,thecompanypaidcashtoacquiretheequityofYunnanGuodaDishengPharmaceuticalCo.,Ltd.(70%)andYunnanGuodaDishengDrugstoreChainCo.,Ltd.(70%),realizingthebusinesscombinationnotunderthesamecontrolofthesetwocompaniesDuringthereportingperiod,theCompanycompletedtheinvestmentcontributionforthenewcompanyin2020-GuodaWanminHuiminkangweiDrugstoreLvliangCo.,Ltd,andcontributedpartoftheinvestmentforLiaoningHuludaoGuodaDrugstoreCo.,Ltd,newestablishedin2020.Duringthereportingperiod,theCompanypaidcashtoacquiretheassetsof15directly-salesstoresundertheSinopharmHoldingNantongPujiPharceuticalChainCo.,Ltdand32directly-salesstoresunderShanxiHuiminKangweiDrugstoreChainCo.,Ltd.Forspecificinvestment,pleaserefertonote(VI)and(VII)oftheSectionX.FinancialReport.

2.Themajorequityinvestmentobtainedinthereportingperiod

□Applicable√Notapplicable

3.Themajornon-equityinvestmentdoinginthereportingperiod

□Applicable√Notapplicable

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√NotapplicableTheCompanyhadnosecuritiesinvestmentinthereportingperiod.

(2)Derivativeinvestment

□Applicable√NotapplicableTheCompanyhasnoderivativesinvestmentinthePeriod

VII.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable√NotapplicableTherearenomajorassetssellintheperiod

2.Salesofmajorequity

□Applicable√Notapplicable

VIII.AnalysisofmainholdingCompanyandstock-jointlycompanies

√Applicable□NotapplicableParticularaboutmainsubsidiariesandstock-jointlycompaniesnetprofitover10%

InRMB

Companyname	Type	Mainbusiness	Registercapital	Totalassets	Netassets	Operatingrevenue	Operatingprofit	Netprofit
SinopharmHoldingGuangzhouCo.,Ltd.	Subsidiary	"Salesofdrugs,medicalapparatusandinstruments,cargotransport,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing"	3,553,249,393.17	17,918,202,144.73	4,512,441,243.75	17,320,141,510.68	446,580,622.00	330,710,871.11
SinopharmHoldingGuodaDrugstoreCo.,Ltd.	Subsidiary	"Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemical	1,683,333,333.00	16,344,255,324.13	5,846,823,975.89	10,841,326,194.08	339,519,962.59	263,262,365.37

		medicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&exportoftechnology"
SinopharmHoldingGuangxiCo.,Ltd.	Subsidiary	"Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts"	521,407,965.79	5,054,481,196.10	1,141,609,797.48	3,232,583,872.71	101,502,050.12	87,430,862.81

Particularaboutsubsidiariesobtainedordisposedinreportperiod

√Applicable□Notapplicable

Company	Themethodofobtainingandhandlingsubsidiariesduringthereportperiod	Theinfluencetothewholeproductionandperformance
YunnanGuodaDishengPharmaceuticalCo.,Ltd.	Acquisition	Expandlocalmedicinewholesalebusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany
YunnanGuodaDishengDrugstoreChainCo.,Ltd.	Acquisition	Expandlocalmedicineretailbusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany

NotesofmainholdingCompanyandstock-jointlycompanies

IX.StructuredvehiclecontrolledbytheCompany

□Applicable√NotapplicableX.Risksandcountermeasures

1.RisksofchangesinindustrypolicyWiththecontinuousdeepeningofnewmedicalreform,thepharmaceuticalindustryfrequentlyreleasespolicies,andtheoperatingenvironmentoftheindustryhasmajorchanges,affectedbythe“4+7”centralizedprocurementlinkageandexpansion,theGPOinGuangdongandGuangxiprovinces,andthecontinuousexpansionofthenationaltalks,andotherpolicies,thedrugpricehascontinuedtodropsharply,andthecompany’sprofitmarginisfacingtheriskoffurthercompression.Thesupervisionhasbeencontinuouslyupgraded,theintroductionofthenewDrugAdministrationLawandtheimplementationofthe“fourstrictest”putforwardhigherrequirementsforthecomplianceoperationofpharmaceuticalenterprises,thepharmaceuticalcirculationindustryfacesincreasedrisksofuncertaincompliance.Thecompanywillrespondtotheimpactsofindustrypoliciesbytransformingandupgradingitsbusinessstructure,exploringnewprofitmodels,andimprovingitsriskmanagementandcontrolcapabilities.

2.ManagementrisksofthecontinuousexpansionofmarketingnetworkofGuodaDrugstoreThroughthecontinuousopeningofnewstoresandextendedM&A,themarketingnetworkofGuodaDrugstorehasmaintainedasteadygrowthtrendinrecentyears.Theexpansionsofthesalesareasandtheincreaseinthenumberofstoreshaveputpressureonthestorelocation,distribution,cashmanagement,marketingandhumanresourcemanagementofGuodaDrugstore.Thecompanywillstrengthenmanagementandconstructioninthecommodityprocurement,logisticsanddelivery,salesandotherlinks,andformulatecorrespondingmanagementmeasuresineachlinktoensureunifiedstandardsandmanagementqualityforstoreexpansion,andatthesametimestrengthenintegrationandcontrolofnewmergedstores.

3.RisksofintensifyingmarketcompetitionAsthecountrycontinuestointroducecorrespondingpoliciestoencouragetheintegrationofpharmaceuticalretailindustry,themajorpharmaceuticalretailenterprisesintheindustryhaveacceleratedthepaceofmergersandacquisitions,andcontinuedtoexpandthemarketingnetworks,improvethelogisticscenterconstructions,andinnovatethebusinessandprofitmodelssothatthesalesscaleandcomprehensivestrengthcontinuouslystrengthen.Atthesametime,withtheupgradingofconsumptionandthegradualopeningofmarket,theforeignpharmaceuticaldistributionenterpriseswithpowerfulstrengthareenteringthedomesticpharmaceuticaldistributionmarketsthroughavarietyofways,sotheindustrycompetitionisfurtherintensifying.Inaddition,thecross-bordercompetitorswithinternetgeneshavequicklypenetratedintothecompany’straditionalbusinessfields,whichbroughtnewandgreaterchallengestothecompany’sbusinessmodel.Thecompanywillcontinuetointegrateexistingresources,deepenthestrategicdevelopmentinitiativeswithwholesale-retailintegrationasthecore,anddeeplygiveplaytothesynergies,directlyfacetheterminalpatientsandconsumersthroughcomplementaryvarieties,capitalcollaboration,supplychaincollaboration,and

internationalpromotion,atthesametime,itwillrealizebrandglobalizationbycapitaloperation,andcontinuouslyincreaseinvestmentinscientificandtechnologicalinnovation,andactivelyrespondtocross-bordercompetition.

4.RisksoffacingthehorizontalcompetitionInthepharmaceuticalretailfield,SinopharmHolding’saffiliateddistributionsubsidiarieshavealsoopenedsomesocialretailpharmacies,whichconstituteacertaindegreeofhorizontalcompetitionwiththesubordinateGuodaDrugstore.SinopharmHoldingandSINOPHARMhavepledgedtotakeeffectivemeasurestoresolvethepossiblehorizontalcompetition.

5.TheriskofgoodwillimpairmentsOn30June2021,thebookvalueofgoodwillinconsolidatefinancialstatementlistedas2,932,001,316.63Yuan,anddistributedtotheassetsgroupofdistributionbusinessandretailbusiness.InaccordancewiththeAccountingStandardsforBusinessEnterprises,theCompanycarriedoutannualimpairmenttestforthegoodwill.ImpairmentofgoodwillwillreleasedontheNoteIII.-24andNoteV-18listedundertheSectionX.FinancialReport

SectionIVCorporateGovernanceI.Inthereportperiod,theCompanyheldannualshareholders’generalmeetingandextraordinaryshareholders’generalmeeting

1.Shareholders’GeneralMeetinginthereportperiod

Sessionofmeeting	Type	Ratioofinvestorparticipation	Dateofmeeting	Dateofdisclosure	Resolutions
AnnualGeneralMeetingof2020	AGM	64.31%	2021-04-28	2021-04-29	JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofAGMof2020No.:2021-19
FirstExtraordinaryShareholdersGeneralMeeting2021	ExtraordinaryShareholdersGeneralMeeting	63.27%	2021-06-25	2021-06-26	JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofFirstExtraordinaryShareholdersGeneralMeeting2021No.:2021-25

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√Notapplicable

II.Changesofdirectors,supervisorsandseniorexecutives√Applicable□Notapplicable

Name	Title	Type	Date	Reasons
LiDongjiu	Director	Officeleaving	2021-03-01	Workscheduleadjustment
ZhaoXiaochuan	DeputyGM	Dismissal	2021-05-21	Workscheduleadjustment
JiangXiuchang	Director	Resignaftertermofoffice	2021-06-25	RenewaloftheBOD
LiXiaojuan	Director	Beelected	2021-06-25	RenewaloftheBOD
ZhouSong	Director	Beelected	2021-06-25	RenewaloftheBOD

III.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod

□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyear.

IV.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√NotapplicableTheCompanyhasnoequityincentiveplan,employeestockownershipplansorotheremployeeincentivesinPeriod.

SectionVEnvironmentalandSocialResponsibility

1.Majorenvironmentprotection

ThelistedCompanyanditssubsidiarywhetherbelongtothekeysewageunitsreleasedfromenvironmentalprotectiondepartment

□Yes√Novoluntarydisclosure

Company/subsidiary	NameofMajorPollutantsandParticularPollutants	EmissionMethod	QuantityofDischargeOutlet	DistributionofDischargeOutlet	EmissionConcentration	ExecutedPollutantDischargeStandards	TotalEmissions	ApprovedTotalEmissions	ExcessiveDischarge
MainLuckPharmaceuticals	COD	TubeDischarge	1	DischargeOutletofWasteWater	13mg/L	DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008	0.012ton/year	0.05ton/year	N/A
MainLuckPharmaceuticals	AmmoniaNitrogen	TubeDischarge	1	DischargeOutletofWasteWater	0．5mg/L	DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008	0.0005ton/year	0.009ton/year	N/A
MainLuckPharmaceuticals	Phosphate	TubeDischarge	1	DischargeOutletofWasteWater	0.05mg/l	DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-	0.00005ton/year	0.0005ton/year	N/A

						GB21908-2008
MainLuckPharmaceuticals	BOD	TubeDischarge	1	DischargeOutletofWasteWater	3mg/L	DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008	0.003ton/year	0.014ton/year	N/A
MainLuckPharmaceuticals	SS	TubeDischarge	1	DischargeOutletofWasteWater	2mg/L	DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008	0.002ton/year	0.03ton/year	N/A
ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.	COD	TubeDischarge	1	DischargeOutletofWasteWater	29㎎/L	Table-2in“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”	0.6995ton/year	7.306ton/year	N/A
ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.	AmmoniaNitrogen	TubeDischarge	1	DischargeOutletofWasteWater	1.3738㎎/L	Table-2in“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”	0.0331ton/year	0.812ton/year	N/A
ChinaNationalZhijun	Totalphosphorus	TubeDischarge	1	DischargeOutletofWaste	0.038㎎/L	Table-2in“DischargeStandards	0.0009ton/year	0.041ton/year	N/A

(Shenzhen)PharmaceuticalCo.,Ltd.				Water		ofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.	COD	TubeDischarge	1	DischargeOutletofWasteWater	21.83㎎/L	Thestricteronebetween“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008)”and“EnvironmentalQualityStandardsforSurfaceWater”(GB3838-2002)forClassIVwater(AmmoniaNitrogenuptoClassV)	0.609ton/year	2.16ton/year	N/A
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.	AmmoniaNitrogen	TubeDischarge	1	DischargeOutletofWasteWater	0.287㎎/L

0.008ton/year

0.144ton/year

N/A

						2002)forClassIVwater(AmmoniaNitrogenuptoClassV)
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.	Totalphosphorus	TubeDischarge	1	DischargeOutletofWasteWater	0.018㎎/L	Thestricteronebetween“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008)”and“EnvironmentalQualityStandardsforSurfaceWater”(GB3838-2002)forClassIVwater(AmmoniaNitrogenuptoClassV)	0.0005ton/year	0.0216ton/year	N/A

ConstructionandoperationofpollutionpreventionandcontrolfacilitiesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedpollutionpreventionandcontrolfacilitiesforwastewater.Inthedailymanagementprocess,enterprisesestablishmanagementproceduresandoperatinginstructionsforenvironmentalprotectionfacilities,andensurethenormalandcompliantoperationofanti-pollutionfacilitiesthroughsystemimplementationandresponsibilityimplementation.Allenterprisesarecontinuouslyinvestingfundsandsteppingupthetransformationandimprovementofpollutionpreventionandcontrolfacilitiestoensurethestableoperationofpollutionpreventionfacilitiesandimprovethedisposalcapacityofenvironmentalprotectionfacilities.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativelicensesAtpresent,theprojectsofallkeymonitoringunitshavecarriedoutenvironmentalimpactassessmentsandobtainedapprovals.Theprojectstobebuiltalsocarryouttherelevantadministrativereviewproceduresaccordingtothe“threesimultaneous”requirementsoftheenvironmentalprotectionfacilitiesoftheconstructionproject.EmergencyplanforenvironmentalemergenciesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveformulatedtheEmergencyPlanforEnvironmentalEmergenciesandreportedthemaccordingtotheregulatoryrequirementsofthelocalregulatoryauthorities.Accordingtothemanagementrequirementsoftheemergencyplan,thekeyunitsregularlycarryoutemergencyplandrillstofurtherprovidetheenterprises’emergencyresponsecapability.

Environmentalself-monitoringschemeAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholdinghaveestablishedenvironmentalself-detectionschemeandplan,andimplementedself-inspection,third-partydetectionandothermonitoringmethodsaccordingtothegovernmentrequirements.Relevantmonitoringdataandreportshavebeenarchivedandsaved.AdministrativepenaltiesduetotheenvironmentalissuesduringthereportingperiodN/AOtherenvironmentalinformationthatshouldbedisclosedTheabovetwocompaniesarejointstockcompaniesoftheCompany.TheCompanyanditsholdingsubsidiariesarenotlistedaskeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment.RelevantinformationonenvironmentprotectionN/A

II.Socialresponsibility

TheCompanyhasnotyetcarriedoutthepovertyalleviationandruralrevitalizationworks

SectionVI.ImportantEventsI.Undertakingsthattheactualcontroller,shareholders,relatedparty,buyersandtheCompanyhavefulfilledduringthereportingperiodandhavenotyetfulfilledbytheendofreportingperiod

□Applicable√NotapplicableNoundertakingsthattheactualcontroller,shareholders,relatedparty,buyersandtheCompanyhavefulfilledduringthereportingperiodandhavenotyetfulfilledbytheendoftheperiodII.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty

□Applicable√NotapplicableNonon-operationalfundoccupationfromcontrollingshareholdersanditsrelatedpartyinperiod.III.Externalguaranteeoutoftheregulations

□Applicable√NotapplicableNoexternalguaranteeoutoftheregulationsoccurredintheperiod.

IV.Appointmentandnon-reappointment(dismissal)ofCPAWhetherthefinancialreportofsemi-annualreporthasbeenaudited

□Yes√NoThesemi-annualreportoftheCompanyisunaudited.

V.ExplanationfromBoardofDirectorsandSupervisoryCommitteefor“Non-standardauditreport”thatissuedbyCPA

□Applicable√Notapplicable

VI.ExplanationfromtheBODonthepreviousyear’s“non-standardauditreport”

□Applicable√NotapplicableVII.Bankruptcyreorganization

□Applicable√NotapplicableNobankruptcyreorganizationoccurredduringthereportingperiod.VIII.Litigation

Majorlitigationandarbitration

□Applicable√NotapplicableNomajorlitigationandarbitrationoccurredinthePeriod.OtherlitigationAsofJune30,2021,therewere20economiccontractdisputesindailyoperation,withatotalamountof18.1318millionyuaninvolved;1anti-unfaircompetitioncasewith3millionyuaninvolved;1equitytransferdispute,involvingatotalamountof0.5718millionyuan;2intellectualpropertydisputes,involvingatotalamountof15.3006millionyuan;2laborcontractdisputes,involvingatotalamountof0.3284millionyuan;1privatelendingdispute,withanamountof49.398millionyuaninvolved;1medicalproductliabilitydispute,involvingatotalamountof21.5888millionyuanand1criminalcase,involvinganamountof11.5634millionyuan.Therewere20casesintotalabove-mentioned,atotalamountof119.8828millionyuaninvolvedwithoutaccrualliabilityoccurred,andwillnothaveanyimpactonthenormaloperationandmanagementoftheCompany.

IX.Penaltyandrectification

□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.

X.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers

√Applicable□NotapplicableInreportingperiod,controllingshareholderandactualcontrolleroftheCompanyhasasoundintegrity,andtherearenocasesoffailuretoimplementtheeffectivejudgmentofthecourtandthelargeamountofdebtdueandunliquidatedXI.Majorrelatedpartytransaction

1.Day-to-dayrelatedpartytransaction

√Applicable□Notapplicable

(1)Relatedtransactionwithroutineoperationconcernedcanbefoundin“X.Relatedpartyandrelatedtransaction”carriedinSectionX.FinancialReport;

(2)Therelatedtransactionsaresettledincashandbynotes,accordingtotheProposalofExpectedRoutineRelatedTransactionswithSubordinateEnterpriseforYearof2021deliberatedandapprovedby23

th

sessionof8

thBODheldon31March2021andtheNoticeonExpectedRoutineRelatedTransactionforYearof2021(NoticeNo.:2021-09)releasedon2April2021,therelatedsalestakes34.55%intotalexpectedamountforthewholeyear,andrelatedprocurementtakes38.11%intotalexpectedamountforthewholeyear.

2.Relatedpartytransactionsofassetsacquisitionandsold

□Applicable√NotapplicableNorelatedpartytransactionsofassetsacquisitionandsoldoccurredduringthereportingperiod

3.Relatedpartytransactionsofmutualinvestmentoutside

□Applicable√NotapplicableNorelatedpartytransactionsofmutualinvestmentoutsideoccurredduringthereportingperiod.

4.Contactofrelatedpartycreditanddebt

□Applicable√NotapplicableTheCompanyhadnocontactofrelatedpartycreditanddebtinthereportingperiod.

5.ContactwiththerelatedfinancecompaniesandfinancecompaniesthatcontrolledbytheCompany

√Applicable□NotapplicableDepositbusiness

Relatedparty	Relationship	Maximumdailydepositlimit(in10thousandyuan)	Depositinterestraterange	Openingbalance(in10thousandyuan)	Amountoccurred(in10thousandyuan)	Endingbalance(in10thousandyuan)
SinopharmGroupFinanceCo.,Ltd	Thesameultimatecontrolling	30,000.00	0.35%-1.15%	10,177.99	-10,014.31	163.68

Loanbusiness

shareholderRelatedparty

Relatedparty	Relationship	Loanline(in10thousandyuan)	Loaninterestraterange	Openingbalance(in10thousandyuan)	Amountoccurred(in10thousandyuan)	Endingbalance(in10thousandyuan)
SinopharmGroupFinanceCo.,Ltd	Thesameultimatecontrollingshareholder	100,000.00	3.6%-3.7%	1,432.28	56,734.41	58,166.69

Creditextensionorotherfinancialbusiness

Relatedparty	Relationship	Typeofbusiness	Totalamount(in10thousandyuan)	Actualamount(in10thousandyuan)
SinopharmGroupFinanceCo.,Ltd	Thesameultimatecontrollingshareholder	Credit	100,000.00	58,166.69
SinopharmGroupFinanceCo.,Ltd	Thesameultimatecontrollingshareholder	Bankacceptancebilldiscount	32,376.15	32,376.15
SinopharmGroupFinanceCo.,Ltd	Thesameultimatecontrollingshareholder	Entrustedloan	3,160.00	3,160.00

6.Othermaterialrelatedpartytransactions

□Applicable√NotapplicableThecompanyhadnoothermaterialrelatedpartytransactionsinreportingperiod.XII.Significantcontractandimplementations

1.Trusteeship,contractandleasing

(1)Trusteeship

□Applicable√NotapplicableNotrusteeshipoccurredduringthereportingperiod

(2)Contract

□Applicable√NotapplicableNocontractoccurredduringthereportingperiod

(3)Leasing

□Applicable√NotapplicableNoleasingoccurredduringthereportingperiod

2.Materialguarantees

√Applicable□Notapplicable

Unit:10’000yuan

ParticularsabouttheexternalguaranteeoftheCompanyandthesubsidiaries(Barringtheguaranteeforsubsidiaries)
NameoftheCompanyguaranteed	RelatedAnnouncementdisclosuredate	Guaranteelimit	Actualdateofhappening	Actualguaranteelimit	Guaranteetype	Collateral(ifapplicable)	Counter-guaranteesituation(ifapplicable)	Guaranteeterm	Implemented(Y/N)	Guaranteeforrelatedparty(Y/N)
N/A
GuaranteebetweentheCompanyandthesubsidiaries
NameoftheCompanyguaranteed	RelatedAnnouncementdisclosuredate	Guaranteelimit	Actualdateofhappening	Actualguaranteelimit	Guaranteetype	Collateral(ifapplicable)	Counter-guaranteesituation(ifapplicable)	Guaranteeterm	Implemented(Y/N)	Guaranteeforrelatedparty(Y/N)
SinopharmHoldingGuangzhouCo.,Ltd.	April2,2021	30,000	May20,2021	30,000	Jointliabilityassurance			2021.05.20-2022.05.20	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April2,2021	70,000	May10,2021	70,000	Jointliabilityassurance			2021.05.10-2022.05.09	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April22,2020	60,000	December8,2020	30,499.62	Jointliabilityassurance			2020.12.08-2021.12.03	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April2,2021	15,000	June28,2021	15,000	Jointliabilityassurance			2021.06.28-2022.06.27	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April2,2021	95,000	May20,2021	64,038.5	Jointliabilityassurance			2021.05.20-2022.05.20	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April22,2020	20,000	October20,2020	2,197.68	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April22,2020	47,000	August31,2020	28,423.37	Jointliabilityassurance			2020.08.31-2021.08.31	N	Y
SinopharmHoldingGuangzhouCo.,Ltd.	April22,2020	5,000	August6,2020		Jointliabilityassurance			2020.08.06-2021.08.05	N	Y
SinopharmHolding	April2,2021	5,000	May20,2021	657.98	Jointliability			2021.05.20-	N	Y

GuangdongYuexingCo.,Ltd.					assurance		2022.05.20
SinopharmHoldingGuangdongYuexingCo.,Ltd.	April22,2020	12,000	October20,2020	4,090.08	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingGuangdongYuexingCo.,Ltd.	April2,2021	15,000	May10,2021	11,313.14	Jointliabilityassurance		2021.05.10-2022.05.09	N	Y
SinopharmHoldingGuangdongYuexingCo.,Ltd.	April22,2020	3,000	January10,2021	2,545.93	Jointliabilityassurance		2021.01.10-2022.01.09	N	Y
SinopharmHoldingGuangdongYuexingCo.,Ltd.	April22,2020	5,000	November20,2020		Jointliabilityassurance		2020.11.20-2021.11.19	N	Y
SinopharmHoldingGuangdongHengxingCo.,Ltd.	April22,2020	15,000	September27,2020	7,176.7	Jointliabilityassurance		2020.09.27-2021.09.27	N	Y
SinopharmHoldingGuangdongHengxingCo.,Ltd.	April2,2021	3,000	April28,2021	467.34	Jointliabilityassurance		2021.04.28-2022.04.27	N	Y
SinopharmHoldingFoshanCo.,Ltd.	April22,2020	500	October20,2020	149.29	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingFoshanCo.,Ltd.	April2,2021	2,000	May10,2021		Jointliabilityassurance		2021.05.10-2022.05.10	N	Y
SinopharmHoldingFoshanCo.,Ltd.	April22,2020	2,500	March23,2021	153.41	Jointliabilityassurance		2021.03.23-2022.03.22	N	Y
SinopharmHoldingZhaoqingCo.,Ltd.	April22,2020	2,500	October20,2020	1,303.45	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingZhaoqingCo.,Ltd.	April2,2021	2,000	June1,2021	762.47	Jointliabilityassurance		2021.06.01-2022.05.11	N	Y
SinopharmHoldingZhaoqingCo.,Ltd.	April2,2021	3,000	June30,2021	500.48	Jointliabilityassurance		2021.06.30-2022.06.29	N	Y
GuangdongNanfangPharmaceut	April22,2020	19,500	July1,2020	5,942.14	Jointliability		2020.07.01-2021.06.3	N	Y

icalForeignTradeCo.,Ltd.					assurance		0
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.	April22,2020	15,000	October16,2020	9,009.66	Jointliabilityassurance		2020.10.16-2021.10.15	N	Y
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.	April22,2020	20,000	September27,2020	10,264.71	Jointliabilityassurance		2020.09.27-2021.09.27	N	Y
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.	April22,2020	3,000	October20,2020		Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.	April22,2020	10,000	November12,2020	4,703.63	Jointliabilityassurance		2020.11.12-2021.11.03	N	Y
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.	April22,2020	5,000	September25,2020		Jointliabilityassurance		2020.09.25-2021.09.24	N	Y
FoshanNanhaiMedicineCo.,Ltd.	April22,2020	1,500	October20,2020	1,091.78	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
FoshanNanhaiMedicineCo.,Ltd.	April22,2020	10,000	March22,2021	5,259.87	Jointliabilityassurance		2021.03.22-2022.03.21	N	Y
FoshanNanhaiMedicineCo.,Ltd.	April22,2020	7,000	March1,2021	4,214.8	Jointliabilityassurance		2021.03.01-2022.02.28	N	Y
FoshanNanhaiMedicineCo.,Ltd.	April2,2021	3,000	June24,2021		Jointliabilityassurance		2021.06.24-2022.05.11	N	Y
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.	April22,2020	2,000	October20,2020	573.55	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
FoshanNanhaiUptodate&SpecialMedicines	April22,2020	10,000	March22,2021	5,505.71	Jointliabilityassurance		2021.03.22-2022.03.21	N	Y

Co.Ltd.
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.	April22,2020	7,000	March1,2021	1,490.57	Jointliabilityassurance		2021.03.01-2022.02.28	N	Y
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.	April2,2021	3,000	June24,2021		Jointliabilityassurance		2021.06.24-2022.05.11	N	Y
SinopharmHolding(Jiangmen)Co.,Ltd.	April22,2020	1,500	October20,2020	121.33	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHolding(Jiangmen)Co.,Ltd.	April2,2021	5,000	May26,2021	1,791.69	Jointliabilityassurance		2021.05.26-2022.05.11	N	Y
SinopharmHolding(Jiangmen)Co.,Ltd.	April22,2020	3,000	September21,2020	1,864.86	Jointliabilityassurance		2020.09.21-2021.09.20	N	Y
SinopharmHolding(Jiangmen)Co.,Ltd.	April2,2021	4,000	May31,2021	3,447.41	Jointliabilityassurance		2021.05.31-2022.05.31	N	Y
SinopharmHoldingMeizhouCo.,Ltd.	April22,2020	1,000	October20,2020		Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingMeizhouCo.,Ltd.	April22,2020	4,000	June29,2020	1,000	Jointliabilityassurance		2020.06.29-2021.06.28	N	Y
SinopharmHoldingMeizhouCo.,Ltd.	April2,2021	5,000	June3,2021	4,387.21	Jointliabilityassurance		2021.06.03-2022.05.11	N	Y
SinopharmHoldingMeizhouCo.,Ltd.	April2,2021	6,000	June21,2021	3,000	Jointliabilityassurance		2021.06.21-2022.03.19	N	Y
SinopharmHoldingZhongshanCo.,Ltd.	April22,2020	1,000	October20,2020	900	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingZhongshanCo.,Ltd.	April22,2020	2,000	November18,2020	1,628.39	Jointliabilityassurance		2020.11.18-2021.11.17	N	Y
SinopharmHoldingZhongshanCo.,Ltd.	April2,2021	3,000	May26,2021		Jointliabilityassurance		2021.05.26-2022.05.11	N	Y
SinopharmHolding	April2,2021	1,000	May31,2021		Jointliability		2021.05.31-	N	Y

ZhongshanCo.,Ltd.					assurance		2022.05.30
SinopharmHoldingShantouCo.,Ltd.	April22,2020	500	October20,2020		Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingShantouCo.,Ltd.	April22,2020	3,000	August31,2020	1,450	Jointliabilityassurance		2020.08.31-2021.08.30	N	Y
SinopharmHoldingShantouCo.,Ltd.	April2,2021	2,000	June3,2021	1,100	Jointliabilityassurance		2021.06.03-2022.05.11	N	Y
SinopharmHoldingShantouCo.,Ltd.	April22,2020	2,000	March31,2021		Jointliabilityassurance		2021.03.31-2022.03.30	N	Y
SinopharmHoldingHuizhouCo.,Ltd.	April22,2020	1,000	October20,2020	790.16	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingHuizhouCo.,Ltd.	April22,2020	3,000	October20,2020	469.36	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingHuizhouCo.,Ltd.	April22,2020	1,000	September3,2020	854.16	Jointliabilityassurance		2020.09.03-2021.09.02	N	Y
SinopharmHoldingHuizhouCo.,Ltd.	April2,2021	4,000	June3,2021	494.52	Jointliabilityassurance		2021.06.03-2022.05.11	N	Y
SinopharmHoldingZhanjiangCo.,Ltd.	April22,2020	2,000	October20,2020	1,380	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingZhanjiangCo.,Ltd.	April22,2020	5,000	August10,2020	4,376.38	Jointliabilityassurance		2020.08.10-2021.08.09	N	Y
SinopharmHoldingZhanjiangCo.,Ltd.	April2,2021	8,000	May19,2021	3,361.79	Jointliabilityassurance		2021.05.19-2022.05.19	N	Y
SinopharmHoldingZhanjiangCo.,Ltd.	April22,2020	3,000	September18,2020		Jointliabilityassurance		2020.09.18-2021.09.17	N	Y
SinopharmHoldingZhuhaiCo.,Ltd.	April22,2020	1,000	October20,2020	999.93	Jointliabilityassurance		2020.10.20-2021.10.19	N	Y
SinopharmHoldingZhuhaiCo.,Ltd.	April22,2020	3,000	August5,2020	2,855.15	Jointliabilityassurance		2020.08.05-2021.08.04	N	Y
Sinopharm	April2,	4,000	June1,	2,716.27	Joint		2021.06.0	N	Y

HoldingZhuhaiCo.,Ltd.	2021		2021		liabilityassurance			1-2022.05.11
SinopharmHoldingZhuhaiCo.,Ltd.	April22,2020	2,000	May15,2020	1,173.51	Jointliabilityassurance			2020.05.15-2021.05.15	N	Y
SinopharmHoldingDongguanCo.,Ltd.	April2,2021	3,000	June3,2021		Jointliabilityassurance			2021.06.03-2022.05.11	N	Y
SinopharmHoldingDongguanCo.,Ltd.	April22,2020	2,000	October20,2020	1,500	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingDongguanCo.,Ltd.	April22,2020	3,000	June24,2020	1,500	Jointliabilityassurance			2020.06.24-2021.06.23	N	Y
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.	April2,2021	10,000	May10,2021	9,842	Jointliabilityassurance			2021.05.10-2022.05.09	N	Y
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.	April2,2021	5,000	April2,2021	4,973.42	Jointliabilityassurance			2021.04.02-2022.04.01	N	Y
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.	April22,2020	9,000	October19,2020	8,649.36	Jointliabilityassurance			2020.10.19-2021.10.18	N	Y
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.	April22,2020	4,000	October20,2020	1,840.56	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.	April2,2021	3,000	May19,2021	2,996.1	Jointliabilityassurance			2021.05.19-2022.05.11	N	Y
SinopharmHolding	April22,2020	1,000	October20,2020	747.21	Jointliability		Theminorit	2020.10.20-	N	Y

ShaoguanCo.,Ltd.					assurance		yshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.10.19
SinopharmHoldingShaoguanCo.,Ltd.	April2,2021	3,000	June11,2021	948.71	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.11-2022.05.11	N	Y
SinopharmHoldingMaomingCo.,Ltd.	April2,2021	4,500	May31,2021	315.98	Jointliabilityassurance			2021.05.31-2022.05.11	N	Y
SinopharmHoldingMaomingCo.,Ltd.	April22,2020	3,000	July28,2020	370.58	Jointliabilityassurance			2020.07.28-2021.07.27	N	Y
SinopharmHoldingGuangzhouHuaduCo.,Ltd.	April22,2020	3,000	September27,2020	549.56	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.09.27-2021.09.27	N	Y
SinopharmHoldingGuangzhouHuaduCo.,Ltd.	April22,2020	3,000	February24,2021		Jointliabilityassurance		Theminorityshareholdershavesignedtheequity	2021.02.24-2022.02.23	N	Y

							pledgecontractandregisteredtheirequitypledges
SinopharmHoldingHeyuanCo.,Ltd.	April2,2021	5,000	June3,2021	4,069.64	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.03-2022.05.11	N	Y
SinopharmHoldingHeyuanCo.,Ltd.	April2,2021	3,000	May6,2021		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.05.06-2022.03.19	N	Y
SinopharmHoldingFoshanMedicalSuppliesSupplyChainCo.,Ltd.	April22,2020	1,000	March1,2021	3.59	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.03.01-2022.02.28	N	Y
SinopharmAccord(Guangzhou)MedicineCo.,Ltd.	April2,2021	2,000	May18,2021		Jointliabilityassurance		Theminorityshareholdershavesignedthe	2021.05.18-2022.05.11	N	Y

							equitypledgecontractandregisteredtheirequitypledges
SinopharmAccord(Guangzhou)MedicineCo.,Ltd.	April22,2020	1,000	August17,2020		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.08.17-2021.08.16	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April2,2021	30,000	May25,2021	29,239.38	Jointliabilityassurance			2021.05.25-2022.05.25	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April22,2020	16,000	October20,2020	9,589.29	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April22,2020	20,000	June16,2020	8,000	Jointliabilityassurance			2020.06.16-2021.06.15	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April22,2020	10,000	May28,2020	5,792.22	Jointliabilityassurance			2020.05.28-2021.05.28	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April2,2021	25,000	June28,2021	998.02	Jointliabilityassurance			2021.06.28-2022.06.28	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April22,2020	10,000	September1,2020	4,992.2	Jointliabilityassurance			2020.09.01-2021.08.31	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April2,2021	20,000	May20,2021	12,085.89	Jointliabilityassurance			2021.05.20-2022.05.20	N	Y
SinopharmHoldingGuangxiCo.,Ltd.	April22,2020	15,000	September11,2020		Jointliabilityassurance			2020.09.11-2021.09.10	N	Y
SinopharmHoldingLiuzhouCo.,Ltd.	April22,2020	5,000	October20,2020	1,000.97	Jointliabilityassurance		Theminorityshareholders	2020.10.20-2021.10.19	N	Y

							havesignedthecounter-guaranteecontract
SinopharmHoldingLiuzhouCo.,Ltd.	April22,2020	10,000	June21,2020	1,997.56	Jointliabilityassurance		Theminorityshareholdershavesignedthecounter-guaranteecontract	2020.06.21-2021.06.20	N	Y
SinopharmHoldingLiuzhouCo.,Ltd.	April22,2020	10,000	March4,2021	2,276.4	Jointliabilityassurance		Theminorityshareholdershavesignedthecounter-guaranteecontract	2021.03.04-2022.02.08	N	Y
SinopharmHoldingLiuzhouCo.,Ltd.	April22,2020	5,000	July1,2020	4,393.51	Jointliabilityassurance		Theminorityshareholdershavesignedthecounter-guaranteecontract	2020.07.01-2021.06.30	N	Y
SinopharmHoldingLiuzhouCo.,Ltd.	April2,2021	9,000	May17,2021	3,000	Jointliabilityassurance		Theminorityshareholdershavesignedthecounter-guaranteecontract	2021.05.17-2022.05.16	N	Y
SinopharmHoldingLiuzhouCo.,Ltd.	April22,2020	10,000	December21,2020	5,469.88	Jointliabilityassurance		Theminorityshareholdershavesignedthe	2020.12.21-2021.12.21	N	Y

							counter-guaranteecontract
SinopharmHoldingGuilinCo.,Ltd.	April22,2020	200	October20,2020		Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingGuilinCo.,Ltd.	April2,2021	2,000	May26,2021	2,000	Jointliabilityassurance			2021.05.26-2022.05.25	N	Y
SinopharmHoldingWuzhouCo.,Ltd.	April22,2020	300	October20,2020	145.95	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingWuzhouCo.,Ltd.	April2,2021	3,000	May26,2021		Jointliabilityassurance			2021.05.26-2022.05.25	N	Y
SinopharmHoldingWuzhouCo.,Ltd.	April22,2020	2,000	August7,2020	2,000	Jointliabilityassurance			2020.08.07-2021.08.07	N	Y
SinopharmHoldingBaiseCo.,Ltd.	April22,2020	500	October20,2020	384.15	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingBaiseCo.,Ltd.	April2,2021	3,000	May26,2021		Jointliabilityassurance			2021.05.26-2022.05.25	N	Y
SinopharmHoldingYulinCo.,ltd.	April22,2020	1,000	October20,2020		Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingYulinCo.,ltd.	April2,2021	3,000	May26,2021	2,000	Jointliabilityassurance			2021.05.26-2022.05.25	N	Y
SinopharmHoldingBeihaiCo.,Ltd.	April22,2020	500	October20,2020		Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingBeihaiCo.,Ltd.	April2,2021	2,000	May20,2021	800	Jointliabilityassurance			2021.05.20-2022.05.20	N	Y
SinopharmHoldingBeihaiCo.,Ltd.	April2,2021	3,000	May26,2021	3,000	Jointliabilityassurance			2021.05.26-2022.05.25	N	Y
SinopharmHoldingGuigangCo.,Ltd.	April22,2020	1,000	January29,2021	1,000	Jointliabilityassurance			2021.01.29-2022.01.28	N	Y
SinopharmHoldingGuigang	April2,2021	2,000	May26,2021	2,000	Jointliabilityassurance			2021.05.26-2022.05.2	N	Y

Co.,Ltd.								5
SinopharmHoldingShenzhenYanfengCo.,Ltd.	April22,2020	4,000	October20,2020	4,000	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.20-2021.10.19	N	Y
SinopharmHoldingShenzhenYanfengCo.,Ltd.	April22,2020	8,000	May28,2020	7,363.96	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.05.28-2021.05.28	N	Y
SinopharmHoldingShenzhenYanfengCo.,Ltd.	April22,2020	4,000	January10,2021	1,405.81	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.01.10-2022.01.09	N	Y
SinopharmHoldingShenzhenYanfengCo.,Ltd.	April22,2020	5,000	November2,2020	5,000	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir	2020.11.02-2021.07.13	N	Y

							equitypledges
SinopharmHoldingShenzhenJianminCo.,ltd.	April22,2020	3,000	October20,2020	2,036.14	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingShenzhenJianminCo.,ltd.	April22,2020	2,000	March17,2021		Jointliabilityassurance			2021.03.17-2021.11.05	N	Y
SinopharmHoldingShenzhenJianminCo.,ltd.	April22,2020	3,000	January10,2021	998.48	Jointliabilityassurance			2021.01.10-2022.01.09	N	Y
SinopharmHoldingShenzhenJianminCo.,ltd.	April2,2021	3,000	June22,2021		Jointliabilityassurance			2021.06.22-2022.05.11	N	Y
SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd.	April22,2020	500	October20,2020	77.14	Jointliabilityassurance			2020.10.20-2021.10.19	N	Y
SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd.	April2,2021	1,500	June22,2021		Jointliabilityassurance			2021.06.22-2022.05.11	N	Y
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.	April22,2020	5,000	June18,2020	824	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.06.18-2021.05.18	N	Y
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.	April22,2020	3,000	November10,2020	546.99	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractand	2020.11.10-2021.11.09	N	Y

							registeredtheirequitypledges
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.	April22,2020	3,000	March24,2021	267	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.03.24-2021.08.13	N	Y
Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1)		501,500.00		Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(B2)		801,052.89
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3)		941,500.00		Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4)		520,489.63
Guaranteesofsubsidiariestosubsidiaries
NameoftheCompanyguaranteed	RelatedAnnouncementdisclosuredate	Guaranteelimit	Actualdateofhappening	Actualguaranteelimit	Guaranteetype	Collateral(ifapplicable)	Counter-guaranteesituation(ifapplicable)	Guaranteeterm	Implemented(Y/N)	Guaranteeforrelatedparty(Y/N)
BeijingJinxiangDrugstoreMedicineChainCo.,Ltd	April22,2020	4,200	December21,2020	2,491.52	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
FujianGuodaDrugstoreChainCo.,Ltd.	April22,2020	1,200	July29,2020		Jointliabilityassurance			2020.07.29-2021.07.30	N	Y
FujianGuodaDrugstoreChainCo.,Ltd.	April22,2020	1,800	October21,2020	1,299.14	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
FujianGuodaMedicinesCo.,Ltd.	April22,2020	600	August13,2020	210.57	Jointliabilityassurance			2020.08.13-2021.08.13	N	Y
Guoda	April2,	1,200	June10,	547.06	Joint		The	2021.06.1	N	Y

Drugstore(Pu'er)SongmaoCo.,Ltd.	2021		2021		liabilityassurance		minorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	0-2022.05.12
GuodaDrugstore(Pu'er)SongmaoCo.,Ltd.	April22,2020	1,200	September1,2020		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.09.01-2021.08.31	N	Y
GuodaYiheDrugstoreJilinCo.,Ltd.	April22,2020	4,080	September23,2020	2,915.18	Jointliabilityassurance			2020.09.23-2021.09.22	N	Y
GuodaYiheDrugstoreJilinCo.,Ltd.	April22,2020	3,000	July15,2020		Jointliabilityassurance			2020.07.15-2021.07.15	N	Y
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.	April22,2020	3,000	December21,2020	2,996.31	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.	April22,2020	1,800	October21,2020	1,181.47	Jointliabilityassurance		Theminorityshareholdershavesignedthe	2020.10.21-2021.10.20	N	Y

							equitypledgecontractandregisteredtheirequitypledges
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.	April2,2021	9,000	June8,2021	8,953.63	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.08-2022.05.12	N	Y
SinopharmHoldingGuodaShanxiMedicinesCo.,Ltd.	April22,2020	15,000	May21,2020	8,063.64	Jointliabilityassurance			2020.05.21-2021.05.14	N	Y
SinopharmHoldingGuodaShanxiMedicinesCo.,Ltd.	April22,2020	1,200	October21,2020	900	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.	April22,2020	1,800	December21,2020	894.45	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreBayanNurCo.,Ltd.	April2,2021	600	June4,2021	418.46	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.04-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstore	April22,2020	6,000	October21,2020	1,978.87	Jointliabilityassurance			2020.10.21-2021.10.2	N	Y

GuangdongCo.,Ltd.								0
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.	April22,2020	1,800	December21,2020	515.87	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.	April2,2021	6,000	June22,2021	3,586.44	Jointliabilityassurance			2021.06.22-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.	April22,2020	1,800	October21,2020	274.77	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.	April22,2020	600	December21,2020	582.07	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd.	April22,2020	1,200	December21,2020	918.64	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd.	April22,2020	1,800	June11,2020	677.38	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.06.11-2021.05.14	N	Y
SinopharmHolding	April2,2021	600	June4,2021	595.45	Jointliability			2021.06.04-	N	Y

GuodaDrugstoreHulunBuirCo.,Ltd.					assurance			2022.05.12
SinopharmHoldingGuodaDrugstoreHulunBuirCo.,Ltd.	April22,2020	300	October21,2020	299.19	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.	April22,2020	1,800	October21,2020	1,127.75	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.	April2,2021	1,200	April2,2021	549.33	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.04.02-2022.04.01	N	Y
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.	April22,2020	1,800	December21,2020	642.06	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreJiangmen	April22,2020	3,000	December28,2020	904.54	Jointliabilityassurance		Theminorityshareholders	2020.12.28-2021.12.27	N	Y

ChainCo.,Ltd.							havesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd.	April22,2020	600	December21,2020	474.23	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd	April22,2020	1,800.00	September23,2020	1,109.97	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.09.23-2021.08.19	N	Y
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd	April22,2020	1,800	July21,2020	1,215.9	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.07.21-2021.07.21	N	Y
SinopharmHoldingGuodaDrugstore	April22,2020	6,000	October21,2020	4,267.06	Jointliabilityassurance		Theminorityshareho	2020.10.21-2021.10.20	N	Y

InnerMongoliaCo.,Ltd							ldershavesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd	April22,2020	4,800	December21,2020	1,928.6	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd	April2,2021	1,800	June7,2021	1,531.37	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.07-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd	April2,2021	3,600	April28,2021	3,363.63	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.04.28-2021.12.31	N	Y
SinopharmHoldingGuoda	April22,2020	4,800	December25,2020	3,551.98	Jointliabilityassurance		Theminority	2020.12.25-2021.04.2	N	Y

DrugstoreShanxiYiyuanChainCo.,Ltd.							shareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	1
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.	April2,2021	5,040	May6,2021		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.05.06-2022.05.05	N	Y
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.	April22,2020	3,600	November28,2020	72.39	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.11.28-2021.11.27	N	Y
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.	April22,2020	9,000	October21,2020	7,581.6	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.21-2021.10.20	N	Y
SinopharmHolding	April2,2021	4,200	June8,2021	3,437.3	Jointliability		Theminorit	2021.06.08-	N	Y

GuodaDrugstoreShanxiYiyuanChainCo.,Ltd.					assurance		yshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2022.05.12
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.	April22,2020	1,800	November27,2020	1,390.97	Jointliabilityassurance			2020.11.27-2021.11.27	N	Y
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.	April2,2021	2,400	June20,2021	810.57	Jointliabilityassurance			2021.06.20-2022.06.20	N	Y
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.	August24,2019	2,400	April13,2020	115.48	Jointliabilityassurance			2020.04.13-2021.04.12	N	Y
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.	April22,2020	3,000	June29,2020	547.41	Jointliabilityassurance			2020.06.29-2021.06.28	N	Y
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.	April22,2020	6,000	December21,2020	4,752.98	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreShenyang	April22,2020	6,000	November4,2020	2,312.34	Jointliabilityassurance		Theminorityshareholders	2020.11.04-2021.11.04	N	Y

ChainCo.,Ltd.							havesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.	April22,2020	12,000	October21,2020	11,999.51	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.	April2,2021	13,800	June1,2021	13,746.37	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.01-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstoreUlanqabCo.,Ltd.	April2,2021	600	June4,2021	23.69	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.04-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstore	April22,2020	3,000	December8,2020	1,804.79	Jointliabilityassurance			2020.12.08-2021.12.08	N	Y

XinjiangNewSpecialMedicineChainCo.,Ltd.
SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd.	April2,2021	4,800	May26,2021	3,271.49	Jointliabilityassurance			2021.05.26-2022.05.12	N	Y
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.	April22,2020	1,200	October21,2020	921.83	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.	April22,2020	1,200	December21,2020	1,139.33	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
SinopharmHoldingGuodaDrugstoreZhengzhouChainCo.,Ltd.	April22,2020	300	December21,2020		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.	April22,2020	6,000	November24,2020	3,762.85	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequity	2020.11.24-2021.11.23	N	Y

							pledges
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.	April22,2020	3,000	October21,2020	2,674.68	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.21-2021.10.20	N	Y
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.	April22,2020	6,000	November30,2020	607.42	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.11.30-2021.11.29	N	Y
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.	April2,2021	6,000	April28,2021		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.04.28-2022.04.27	N	Y
HunanGuodaMinshentangDrugstoreChainCo.,Ltd.	April22,2020	1,800	October21,2020	1,432.55	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir	2020.10.21-2021.10.20	N	Y

							equitypledges
HunanGuodaMinshentangDrugstoreChainCo.,Ltd.	April22,2020	1,200	December21,2020	76.92	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.12.21-2021.12.20	N	Y
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.	April2,2021	15,000	June22,2021	10,897.58	Jointliabilityassurance			2021.06.22-2022.06.21	N	Y
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.	October22,2020	6,000	December21,2020	5,370.28	Jointliabilityassurance			2020.12.21-2021.12.20	N	Y
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.	April2,2021	4,800	June1,2021	1,288.3	Jointliabilityassurance			2021.06.01-2022.05.12	N	Y
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.	October22,2020	6,000	October22,2020	5,838.3	Jointliabilityassurance			2020.10.22-2021.10.20	N	Y
LiaoningGuodaMedicinesCo.,Ltd.	April22,2020	600	October21,2020	600	Jointliabilityassurance			2020.10.21-2021.10.20	N	Y
LiaoningGuodaMedicinesCo.,Ltd.	April2,2021	3,000	June1,2021	2,993.3	Jointliabilityassurance			2021.06.01-2022.05.12	N	Y
InnerMongoliaGuodaMedicineCo.,Ltd.	April2,2021	2,400	June7,2021		Jointliabilityassurance			2021.06.07-2022.05.12	N	Y
NingxiaGuodaDrugstoreChainCo.,Ltd.	April22,2020	2,400	September7,2020	1,593.6	Jointliabilityassurance			2020.09.07-2021.09.06	N	Y
Ningxia	April22,	1,200	December	10.45	Joint			2020.12.2	N	Y

GuodaDrugstoreChainCo.,Ltd.	2020		21,2020		liabilityassurance			1-2021.12.20
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.	April22,2020	3,600	October28,2020		Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.10.28-2021.10.27	N	Y
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.	April22,2020	3,600	July9,2020	1,332.00	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2020.07.09-2021.07.09	N	Y
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.	April2,2021	15,000	June8,2021	12,120.00	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.08-2022.05.12	N	Y
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.	April22,2020	5,400	October21,2020	5,400	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontract	2020.10.21-2021.10.20	N	Y

							andregisteredtheirequitypledges
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.	April2,2021	3,000	April29,2021	720	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.04.29-2022.04.15	N	Y
PudongNewAreaofShanghaiPharmaceuticalMedicineCo.,Ltd.	April22,2020	3,000	July24,2020		Jointliabilityassurance			2020.07.24-2021.07.23	N	Y
YanjiXiangheMedicinesCo.,Ltd.	April2,2021	1,800	June8,2021	120	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.08-2022.05.12	N	Y
YushuDinghePharmaceuticalTechnologyCo.,Ltd.	April2,2021	1,800	June8,2021	840	Jointliabilityassurance		Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges	2021.06.08-2022.05.12	N	Y
Totalamountofapprovingguaranteeforsubsidiaries		107,640.00		Totalamountofactualoccurredguaranteefor		344,749.89

inreportperiod(C1)			subsidiariesinreportperiod(C2)
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3)	285,720.00		Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4)	172,572.81
TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee)
Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1)		609,140.00	Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2)	1,145,802.78
Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3)		1,227,220.00	Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4)	693,062.44
TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4)			48.31%
Including:
Amountofguaranteeforshareholders,actualcontrolleranditsrelatedparties(D)			Notapplicable
Thedebtsguaranteeamountprovidedfortheguaranteedpartieswhoseassets-liabilityratioexceed70%directlyorindirectly(E)			Notapplicable
ProportionoftotalamountofguaranteeinnetassetsoftheCompanyexceed50%(F)			Notapplicable
Totalamountoftheaforesaidthreeguarantees(D+E+F)			Notapplicable
Explanationsonpossiblybearingjointandseveralliquidatingresponsibilitiesforundueguarantees(ifapplicable)			Notapplicable
Explanationsonexternalguaranteeagainstregulatedprocedures(ifapplicable)			Notapplicable

ExplanationonguaranteeusingthecompositewayNil

3.Trustfinancing

□Applicable√NotapplicableTheCompanyhadnotrustfinancinginthereportingperiod.

4.Significantcontractsfordailyoperation

□Applicable√Notapplicable

5.Othersignificantcontract

□Applicable√NotapplicableThecompanyhadnoothersignificantcontractinthereportingperiod.

XIII.Descriptionofothersignificantmatters

□Applicable√NotapplicableThecompanyhadnoothersignificantmattersthatneeddescriptioninthereportingperiod.XIV.Importanteventofthesubsidiaries

□Applicable√Notapplicable

SectionVII.ChangesinSharesandParticularsaboutShareholders

I.ChangesinShareCapital

1.ChangesinShareCapital

Unit:share

	BeforetheChange		Increase/DecreaseintheChange(+,-)					AftertheChange
	Amount	Proportion	Newsharesissued	Bonusshares	Publicreservetransferintosharecapital	Others	Subtotal	Amount	Proportion
I.Restrictedshares	5,508,883	1.29%						5,508,883	1.29%
1.State-ownedshares
2.State-ownedlegalperson’sshares	5,505,770	1.29%						5,505,770	1.29%
3.Otherdomesticshares	3,113	0.00%						3,113	0.00%
Including:Domesticlegalperson’sshares	0	0.00%						0	0.00%
Domesticnaturalperson’sshares	3,113	0.00%						3,113	0.00%
4.Foreignshares
Including:Foreignlegalperson’sshares
Foreignnaturalperson’sshares
II.Unrestrictedshares	422,618,100	98.71%						422,618,100	98.71%
1.RMBordinaryshares	367,733,625	85.89%						367,733,625	85.89%
2.Domesticallylistedforeignshares	54,884,475	12.82%						54,884,475	12.82%
3.Overseaslistedforeignshares
4.Others
III.Totalshares	428,126,983	100.00%						428,126,983	100.00%

Reasonsforsharechanged

□Applicable√NotapplicableApprovalofsharechanged

□Applicable√NotapplicableOwnershiptransferofsharechanged

□Applicable√NotapplicableProgressofsharesbuy-back

□Applicable√NotapplicableImplementationprogressofreducingholdingsofsharesbuy-backbycentralizedbidding

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytodiscloseorneedtodisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesoflock-upstocks

□Applicable√NotapplicableII.Securitiesissuanceandlisting

□Applicable√Notapplicable

III.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding

Unit:share

Totalcommonstockshareholdersinreportingperiod-end		43,600				Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)			0
Particularsaboutcommonsharesheldabove5%byshareholdersortoptencommonshareholders
FullnameofShareholders	Natureofshareholder		Proportionofsharesheld	Amountofcommonsharesheldattheendofreportingperiod	Changesinreportperiod		Amountofrestrictedcommonsharesheld	Amountofcommonsharesheldwithoutrestriction	Informationofsharespledged,taggedorfrozen
									Stateofshare	Amount
SinopharmGroupCo.,Ltd.	State-ownedCorporation		56.06%	239,999,991			5,505,770	234,494,221
FIRSTSENTIERINVESTORSGLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUND	ForeignCorporation		2.68%	11,469,644				11,469,644
HongKongSecuritiesClearingCompanyLtd	ForeignCorporation		2.58%	11,033,948				11,033,948
ChinaNationalPharmaceuticalForeignTrade	State-ownedCorporation		1.24%	5,323,043				5,323,043

Corp.
NationalSocialSecurityFund413Portfolio	Domesticnonstate-ownedCorporation	0.98%	4,200,032		4,200,032
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD	ForeignCorporation	0.78%	3,358,761		3,358,761
ChinaConstructionBankCorporation-ChinaEuropeValueDiscoveryEquityFund	Domesticnonstate-ownedCorporation	0.73%	3,111,875		3,111,875
CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplan	Domesticnonstate-ownedCorporation	0.66%	2,822,801		2,822,801
FidelityInvestmentManagement(HongKong)Limited-Client’sfund	ForeignCorporation	0.54%	2,308,237		2,308,237
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND	ForeignCorporation	0.41%	1,756,387		1,756,387
Explanationonassociatedrelationshipamongtheaforesaidshareholders		SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.
Descriptionoftheaboveshareholdersinrelationtodelegate/entrustedvotingrightsandabstentionfromvotingrights.		Notapplicable
Particularabouttoptenshareholderswithun-lockupcommonstocksheld
Shareholders’name		AmountofcommonsharesheldwithoutrestrictionatPeriod-end				Typeofshares
						Type		Amount
SinopharmGroupCo.,Ltd		234,494,221				RMBordinaryshares		234,494,221
FIRSTSENTIERINVESTORS		11,469,644				Domestically		11,469,644

GLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUND		listedforeignshares
HongKongSecuritiesClearingCompanyLtd	11,033,948	RMBordinaryshares	11,033,948
ChinaNationalPharmaceuticalForeignTradeCorp.	5,323,043	RMBordinaryshares	5,323,043
NationalSocialSecurityFund413Portfolio	4,200,032	RMBordinaryshares	4,200,032
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD	3,358,761	Domesticallylistedforeignshares	3,358,761
ChinaConstructionBankCorporation-ChinaEuropeValueDiscoveryEquityFund	3,111,875	RMBordinaryshares	3,111,875
CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplan	2,822,801	RMBordinaryshares	2,822,801
FidelityInvestmentManagement(HongKong)Limited-Client’sfund	2,308,237	RMBordinaryshares	2,308,237
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND	1,756,387	Domesticallylistedforeignshares	1,756,387
Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-lockupcommonshareholdersandbetweentop10un-lockupcommonshareholdersandtop10commonshareholders	SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.

Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-lockupsharesheldhaveabuy-backagreementdealinginreportingperiod

□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-lockupsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.IV.Changesofsharesheldbydirectors,supervisorsandseniorexecutives

□Applicable√NotapplicableSharesheldbydirectors,supervisorsandseniorexecutiveshavenochangesinreportingperiod,foundmoredetailsinAnnualReport2020.V.Changesincontrollingshareholdersoractualcontrollers

Changeofcontrollingshareholderduringthereportingperiod

□Applicable√NotapplicableTheCompanyhadnochangeofcontrollingshareholderduringthereportingperiod

Changeofactualcontrollerduringthereportingperiod

□Applicable√NotapplicableTheCompanyhadnochangeofactualcontrollerduringthereportingperiod

SectionVIII.PreferredStock

□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.

SectionIX.CorporateBonds

□Applicable√Notapplicable

SectionX.FinancialReport

I.AuditreportWhetherthesemiannualreportisaudited

□Yes√NoThecompany'ssemiannualfinancialreporthasnotbeenauditedII.FinancialStatementStatementinFinancialNotesarecarriedinRMB/CNY

CONSOLIDATEDBALANCESHEET

Asat30June2021(ExpressedinRenminbiYuan)

ASSETS

NoteV

30June2021

31December2020

Currentassets
Cashandbankbalances	1	5,876,638,427.56	5,998,204,295.87
Notesreceivable	2	606,070,192.39	622,115,477.04
Accountsreceivable	3	17,761,176,449.25	13,799,971,014.22
Receivablefinancing	4	345,906,887.55	1,404,987,700.38
Advancestosuppliers	5	615,602,916.31	480,313,574.71
Otherreceivables	6	662,274,841.26	535,228,747.69
Incl:Dividendreceivable		-	-
Inventories	7	7,219,658,618.62	6,285,010,674.46
ContractAssets	8	17,066,105.53	15,177,731.64
Othercurrentassets	9	101,585,930.05	121,082,863.45

Totalcurrentassets

33,205,980,368.52

29,262,092,079.46

Non-currentassets
Long-termequityinvestments	10	2,427,605,792.21	2,287,019,627.99
Otherequityinstrumentinvestment	11	99,488,340.28	99,488,340.28
Othernon-currentfinancialassets	12	117,974,908.51	120,972,350.24
Investmentproperties	13	123,389,130.71	127,444,379.94
Fixedassets	14	840,386,519.64	854,191,083.27
Constructioninprogress	15	64,636,735.93	46,631,190.23
Right-of-useassets	16	2,523,874,174.71	2,356,952,392.99
Intangibleassets	17	751,492,524.18	734,345,179.40
Goodwill	18	2,932,001,316.63	2,747,375,281.11
Long-termprepaidexpenses	19	523,192,988.98	457,705,276.09
Deferredtaxassets	20	96,595,749.33	92,118,767.81
Othernon-currentassets	21	484,259,854.32	408,197,522.84

Totalnon-currentassets

10,984,898,035.43

10,332,441,392.19

Totalassets

44,190,878,403.95

39,594,533,471.65

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDEQUITY

NoteV

30June2021

31December2020

Currentliabilities
Short-termborrowings	22	4,632,933,904.39	1,612,187,020.12
Notespayable	23	6,780,425,089.17	7,520,165,274.69
Accountspayable	24	9,642,504,836.50	7,697,451,142.50
Receiptsinadvance	25	14,868,097.97	12,352,466.64
Contractliabilities	26	316,827,151.78	368,600,357.14
Employeebenefitspayable	27	242,205,983.09	357,212,047.10
Taxpayable	28	298,201,588.13	316,867,149.16
Otherpayables	29	1,531,899,017.87	1,599,166,881.14
Non-currentliabilitiesduewithinoneyear	30	798,170,618.10	748,732,059.89
Othercurrentliabilities	31	22,432,447.97	24,787,078.55

Totalcurrentliabilities

24,280,468,734.97

20,257,521,476.93

Non-currentliabilities
Long-termborrowings	32	61,633,794.44	31,637,173.89
Leaseliabilities	33	1,361,131,352.80	1,303,054,163.90
Long-termpayables	34	6,938,189.00	6,938,189.00
Long-termemployeebenefitspayable	35	1,262,000.00	1,319,000.00
Provisions	36	68,663,166.79	68,808,166.79
Deferredincome	37	91,315,333.89	89,843,583.37
Deferredtaxliabilities	20	200,498,143.67	205,921,408.66
Othernon-currentliabilities	38	630,839,755.01	740,862,989.59

Totalnon-currentliabilities

2,422,281,735.60

2,448,384,675.20

Totalliabilities

26,702,750,470.57

22,705,906,152.13

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDEQUITY

NoteV

30June2021

31December2020

Equity
Sharecapital	39	428,126,983.00	428,126,983.00
Capitalsurplus	40	4,372,043,185.43	4,372,504,053.72
Othercomprehensiveincome	41	38,547,872.62	38,483,017.72
Surplusreserve	42	214,063,491.50	214,063,491.50
Retainedearnings	43	9,294,088,533.24	8,895,145,106.39

Totalequityattributabletoownersoftheparent		14,346,870,065.79	13,948,322,652.33
Non-controllinginterests		3,141,257,867.59	2,940,304,667.19

Totalequity

17,488,127,933.38

16,888,627,319.52

Totalliabilitiesandequity

44,190,878,403.95

39,594,533,471.65

TheaccompanyingnotesformanintegralpartofthesefinancialstatementsThefinancialstatementshavebeensignedby:

Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(Continued)

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Operatingrevenue	44	33,163,091,887.39	27,169,940,188.52
Less:Operatingcosts	44	29,216,837,201.07	23,971,029,719.44
Taxesandsurcharges	45	75,989,854.58	69,505,309.32
Sellingexpenses	46	2,307,485,529.77	1,728,738,818.60
Administrativeexpenses	47	492,536,936.71	443,287,144.92
Financecosts	48	107,243,003.15	65,313,829.62
Incling:Interestexpense		147,057,897.99	133,350,510.68
Interestincome		38,758,729.78	65,512,550.22
Add:Interestexpense	49	47,249,616.26	35,855,298.32
Investmentincome	50	156,587,066.32	105,206,349.26
Incling:Investmentincomefromassociates		157,696,397.81	133,604,904.16
Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost		(7,039,046.60)	(33,507,102.64)
Creditimpairmentlosses	51	(28,664,985.44)	(21,580,231.52)
Impairmentlosses	52	(416,915.26)	(1,743,888.30)
Gainondisposalofassets	53	(588,799.55)	4,305,324.80

Operatingprofits		1,137,165,344.44	1,014,108,219.18
Add:Non-operatingincome	54	12,493,320.44	5,219,980.22
Less:Non-operatingexpenses	55	3,237,951.35	3,008,892.52

Totalprofit		1,146,420,713.53	1,016,319,306.88
Less:Incometaxexpenses	56	238,426,259.04	210,106,764.35

Netprofit		907,994,454.49	806,212,542.53
NetProfitfromcontinuingoperations		907,994,454.49	806,212,542.53

Netprofitattributabletoownersoftheparent

741,445,013.25

643,451,580.59

Profitorlossofnon-controllinginterests

166,549,441.24

162,760,961.94

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(Continued)

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Othercomprehensiveincome,netoftax		64,854.90	122,186.89
Othercomprehensiveincome,netoftax,attributabletoownersoftheparent		64,854.90	122,186.89
Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss		64,854.90	122,186.89
Othercomprehensiveincomeusingtheequitymethodthatwillbereclassifiedtoprofitorloss		64,854.90	122,186.89

Totalcomprehensiveincome

908,059,309.39

806,334,729,42

Incl:Totalcomprehensiveincomeattributabletoownersoftheparent		741,509,868.15	643,573,767.48
Totalcomprehensiveincomeattributabletonon-controllinginterests		166,549,441.24	162,760,961.94

Earningspershare
Basicearningspershare		1.73	1.50
Dilutedearningspershare		1.73	1.50

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021	Attributabletoownersoftheparent
	Sharecapital	Capitalsurplus	Othercomprehensiveincome	Surplusreserves	Retainedearnings	Subtotal	Non-controllinginterests	Totalequity

I.Balanceatendofprioryear	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
Add:Businesscombinationinvolvingentitiesundercommoncontrol	-		-	-

II.Balanceatbeginningofyear

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.Changesfortheyear	-	(460,868.29)	64,854.90	-	398,943,426.85	398,547,413.46	200,953,200.40	599,500,613.86
(1)Totalcomprehensiveincome	-	-	64,854.90	-	741,445,013.25	741,509,868.15	166,549,441.24	908,059,309.39
(2)Owners’contributionsandreductionincapital	-	(460,868.29)	-	-		(460,868.29)	58,773,146.38	58,312,278.09
1.Capitalcontributionsbyowners	-	-	-	-	-	-	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)Profitdistribution	-	-	-		(342,501,586.40)-	(342,501,586.40)	(24,369,387.22)	(366,870,973.62)
1.Distributiontoequityowners	-	-	-		(342,501,586.40)-	(342,501,586.40)	(24,369,387.22)	(366,870,973.62)

IV.Balanceatendofyear

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

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2020	Attributabletoownersoftheparent
	Sharecapital	Capitalsurplus	Othercomprehensiveincome	Surplusreserves	Retainedearnings	Subtotal	Non-controllinginterests	Totalequity

I.Balanceatendofprioryear	428,126,983.00	4,363,007,511.57	45,917,342.77	214,063,491.50	7,755,295,537.08	12,806,410,865.92	2,553,426,974.31	15,359,837,840.23
Add:Businesscombinationinvolvingentitiesundercommoncontrol	-	107,759,447.87	-	-	(3,029,877.91)	104,729,569.96	109,412,866.52	214,142,436.48

II.Balanceatbeginningofyear

428,126,983.00

4,470,766,959.44

45,917,342.77

214,063,491.50

7,752,265,659.17

12,911,140,435.88

2,662,839,840.83

15,573,980,276.71

III.Changesfortheyear	-	(97,854,894.55)	122,186.89	-	386,575,390.79	288,842,683.13	154,985,375.48	443,828,058.61
(1)Totalcomprehensiveincome	-	-	122,186.89	-	643,451,580.59	643,573,767.48	162,760,961.94	806,334,729.42
(2)Owners’contributionsandreductionincapital	-	(97,854,894.55)	-	-		(97,854,894.55)	10,931,276.73	(86,923,617.82)
1.Capitalcontributionsbyowners	-	-	-	-	-	-
2.Others	-	(97,854,894.55)	-	-		(97,854,894.55)	10,931,276.73-	(86,923,617.82)
(3)Profitdistribution	-	-	-	-	(256,876,189.80)	(256,876,189.80)	(18,706,863.19)	(275,583,052.99)
1.Distributiontoequityowners	-	-	-	-	(256,876,189.80)	(256,876,189.80)	(18,706,863.19)	(275,583,052.99)

IV.Balanceatendofyear

428,126,983.00

4,372,912,064.89

46,039,529.66

214,063,491.50

8,138,841,049.96

13,199,983,119.01

2,817,825,216.31

16,017,808,335.32

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDCASHFLOWSTATEMENT

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodandthe

renderingofservices

Cashreceivedfromsalesofgoodandtherenderingofservices		32,800,434,055.12	27,735,103,033.02
Receiptsoftaxesandsurchargesrefunds		9,380,253.27	8,145,306.66
Othercashreceiptsrelatingtooperatingactivities	57	368,590,875.46	707,202,110.00

Totalcashinflowsfromoperatingactivities

33,178,405,183.85

28,450,450,449.68

Cashpaymentsforgoodsandservices		28,541,885,459.35	24,305,374,637.56
Cashpaymentstoandonbehalfofemployees		1,708,255,657.44	1,278,474,969.40
Paymentsofalltypesoftaxesandsurcharges		766,110,586.13	724,722,540.88
Othercashpaymentsrelatingtooperatingactivities	57	932,780,197.36	703,674,258.49

Totalcashoutflowsfromoperatingactivities		31,949,031,900.28	27,012,246,406.33
Netcashflowsfromoperatingactivities	58	1,229,373,283.57	1,438,204,043.35

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments

Cashreceiptsfromreturnsofinvestments		2,997,441.73	19,027,649.76
Cashreceiptsfromreturnsoninvestments		22,643,935.31	84,166,102.10
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets		537,887.38	4,352,536.98

Othercashreceiptsrelatingtoinvestingactivities

57

54,984.60

22,040,000.00

Totalcashinflowsfrominvestingactivities

26,234,249.02

129,586,288.84

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)Cashpaymentstoacquirefixedassets,intangible

assetsandotherlong-termassets

Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets		145,820,319.98	116,186,214.91
Cashpaymentsforinvestments		70,724,113.00	20,545,399.15
Netcashpaymentsforacquisitionofsubsidiariesandotherbusinessunits		100,950,637.41	659,201,491.65
Othercashpaymentsrelatingtoinvestingactivities		-	-

Totalcashoutflowsfrominvestingactivities

317,495,070.39

795,933,105.71

Netcashflowsfrominvestingactivities

(291,260,821.37)

(666,346,816.87)

3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers

Cashproceedsfrominvestmentsbyothers		15,680,000.00	-
Incl:Cashreceiptsfromcapitalcontributionsfromnon-controllinginterestsofsubsidiaries		15,680,000.00	-
Cashreceiptsfromborrowings		915,684,894.52	589,920,037.57
Othercashreceiptsrelatingtofinancingactivities	57	104,090,555.62	334,349,840.06

Totalcashinflowsfromfinancingactivities

1,035,455,450.14

924,269,877.63

Cashrepaymentsfordebts		511,076,477.58	284,200,000.00
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses		492,345,229.08	432,276,651.88
Incl:Dividendsorprofitpaidtonon-controllingshareholdersofsubsidiaries		22,846,959.82	10,890,773.58
Othercashpaymentsrelatingtofinancingactivities	57	838,045,248.87	1,405,111,664.26

Totalcashoutflowsfromfinancingactivities

1,841,466,955.53

2,121,588,316.14

Netcashflowsfromfinancingactivities

(806,011,505.39)

(1,197,318,438.51)

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS

392,002.63

(47,935.97)

5.NETINCREASE/DECREASEINCASHANDCASHEQUIVALENTS

58

132,492,959.44

(425,509,148.00)

Add:Cashandcashequivalentsatbeginningoftheyear

5,405,113,257.99

8,426,071,170.16

6.CASHANDCASHEQUIVALENTSATENDOFYEAR

58

5,537,606,217.43

8,000,562,022.16

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET

Asat30June2021(ExpressedinRenminbiYuan)

ASSETS

NoteXIV

30June2021

31December2020

Currentassets
Cashandbankbalances		3,365,069,497.52	3,020,909,473.71
Notesreceivable		64,759,826.01	30,984,449.44
Accountsreceivable	1	701,273,128.58	609,575,301.13
Receivablesfinancing		2,436,398.01	30,248,631.32
Advancestosuppliers		4,566,924.77	6,722,204.59
Otherreceivables	2	3,467,427,719.16	3,562,309,346.07
Inventories		189,783,318.68	172,275,777.63
CurrentAssets		103,944.56	139,154.54
Othercurrentassets		39,482.38	39,482.38

Totalcurrentassets

7,795,460,239.67

7,433,203,820.81

Non-currentassets
Long-termequityinvestments	3	8,014,254,485.09	7,873,668,245.16
Othernon-currentfinancialassets		117,974,908.51	120,972,350.24
Investmentproperties		1,436,098.78	1,452,132.04
Fixedassets		12,027,831.98	13,279,902.76
Right-of-useassets		4,581,076.34	5,142,755.88
Intangibleassets		5,801,168.94	4,622,268.00
Long-termprepaidexpenses		4,189,589.43	4,335,802.92
Deferredtaxassets		9,245,324.81	9,025,057.52
Othernon-currentassets		36,250,241.84	12,967,715.50

Totalnon-currentassets

8,205,760,725.72

8,045,466,230.02

Totalassets

16,001,220,965.39

15,478,670,050.83

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDSHAREHOLDERS’EQUITY

30June2021

31December2020

Currentliabilities
Short-termborrowings		878,608,520.99	157,892,942.24
Notespayable		393,434,370.38	756,364,719.49
Accountspayable		507,406,947.28	407,275,713.49
Contractliabilities		8,566,647.98	1,807,562.61
Employeebenefitspayable		34,107,984.22	36,672,344.48
Taxpayables		16,253,302.56	13,975,905.04
Otherpayables		2,720,704,209.77	3,167,152,583.28
Non-currentliabilitiesduewithinoneyear		1,078,862.94	1,056,120.58
Othercurrentliabilities		1,434,414.00	636,200.63

Totalcurrentliabilities

4,561,595,260.12

4,542,834,091.84

Non-currentliabilities
Long-termborrowings		31,633,794.44	31,637,173.89
Leaseliabilities		3,909,950.01	4,455,967.97
Long-termpayables		800,000.00	800,000.00
Deferredincome		603,137.94	827,658.18
Othernon-currentliabilities		22,866,538.58	11,042.52

Totalnon-currentliabilities

59,813,420.97

37,731,842.56

Totalliabilities

4,621,408,681.09

4,580,565,934.40

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDSHAREHOLDERS’EQUITY

30June2021

31December2020

Shareholders’equity
Sharecapital		428,126,983.00	428,126,983.00
Capitalsurplus		4,467,530,563.30	4,467,991,431.59
Othercomprehensiveincome		(63,178.42)	(128,033.32)
Surplusreserve		214,063,491.50	214,063,491.50
Retainedearnings		6,270,154,424.92	5,788,050,243.66

Totalshareholders’equity

11,379,812,284.30

10,898,104,116.43

Totalliabilitiesandshareholders’equity

16,001,220,965.39

15,478,670,050.83

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYINCOMESTATEMENTForthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteXIV

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Operatingrevenue	4	2,078,370,123.36	1,772,487,363.56
Less:Operatingcosts	4	1,991,420,311.80	1,689,564,062.24
Taxesandsurcharges		2,488,284.74	2,582,640.86
Sellingexpenses		35,959,501.73	31,376,377.04
Administrativeexpenses		46,619,035.09	43,060,479.75
Financecosts		(55,486,414.78)	(43,838,117.34)
Incl:Interestexpense		27,864,903.28	21,928,061.34
Interestincome		83,409,776.86	66,569,319.85
Add:Otherincomes		1,931,159.58	629,921.47
Investmentincome	5	780,364,601.71	749,633,760.78
Incl:Investmentincomefromassociates		157,696,473.52	133,549,495.38
Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost		(221,815.32)	(1,526,968.25)
Creditimpairmentlosses		(123,032.41)	(976,022.96)
Impairmentlosses		(281,770.77)	(242,731.87)
Gainondisposalofassets		80,996.38	-

Operatingprofits		839,341,359.27	798,786,848.43
Add:Non-operatingincome		408,885.12	1,596.77
Less:Non-operatingexpenses		-	52,122.72

Totalprofit		839,750,244.39	798,736,322.48
Less:Incometaxexpenses		15,144,476.73	9,645,280.09

Netprofit		824,605,767.66	789,091,042.39
Profitorlossfromcontinuingoperations		824,605,767.66	789,091,042.39

Othercomprehensiveincome,netoftax		64,854.90	122,186.89
Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss		64,854.90	122,186.89
Othercomprehensiveincomeusingtheequitymethodthatwillbereclassifiedtoprofitorloss		64,854.90	122,186.89

Totalcomprehensiveincome

824,670,622.56

789,213,229.28

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYSTATEMENTOFCHANGESINEQUITY

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021

Sharecapital

Capitalsurplus

Othercomprehensiveincome

Surplusreserve

Retainedearnings

Totalequity

I.Balanceatendofprioryear

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.Changesfortheyear	-	(460,868.29)	64,854.90	-	482,104,181.26	481,708,167.87
(1)Totalcomprehensiveincome	-	-	64,854.90	-	824,605,767.66	824,670,622.56
(2)Owners’contributionsandreductionincapital	-	(460,868.29)	-	-	-	(460,868.29)
1.Others	-	(460,868.29)	-	-	-	(460,868.29)
(3)Profitdistribution	-	-	-	-	(342,501,586.40)	(342,501,586.40)
1.Distributiontoowners	-	-	-	-	(342,501,586.40)	(342,501,586.40)

III.Balanceatendofyear

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

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITY(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2020

Sharecapital

Capitalsurplus

Othercomprehensiveincome

Surplusreserve

Retainedearnings

Totalequity

I.Balanceatendofprioryear

428,126,983.00

4,468,385,307.32

(133,366.19)

214,063,491.50

4,996,184,257.34

10,106,626,672.97

II.Changesfortheyear	-	14,135.44	122,186.89	-	532,214,852.59	532,351,174.92
(1)Totalcomprehensiveincome	-	-	122,186.89	-	789,091,042.39	789,213,229.28
(2)Owners’contributionsandreductionincapital	-	14,135.44	-	-	-	14,135.44
1.Others	-	14,135.44	-	-	-	14,135.44
(3)Profitdistribution	-	-	-	-	(256,876,189.80)	(256,876,189.80)
1.Distributiontoowners	-	-	-	-	(256,876,189.80)	(256,876,189.80)

III.Balanceatendofyear

428,126,983.00

4,468,399,442.76

(11,179.30)

214,063,491.50

5,528,399,109.93

10,638,977,847.89

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENTForthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodandthe

renderingofservices

Cashreceivedfromsalesofgoodandtherenderingofservices		2,051,451,080.04	1,959,922,054.30
Othercashreceiptsrelatingtooperatingactivities		31,548,087.03	56,400,693.21

Totalcashinflowsfromoperatingactivities

2,082,999,167.07

2,016,322,747.51

Cashpaymentsforgoodsandservices		1,882,952,590.62	1,808,113,785.36
Cashpaymentstoandonbehalfofemployees		61,431,053.37	56,731,764.12
Paymentsofalltypesoftaxesandsurcharges		36,319,473.82	34,728,524.87
Othercashpaymentsrelatingtooperatingactivities		11,443,446.22	36,411,653.42

Totalcashoutflowsfromoperatingactivities

1,992,146,564.03

1,935,985,727.77

Netcashflowsfromoperatingactivities

90,852,603.04

80,337,019.74

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments

Cashreceiptsfromreturnsofinvestments		2,997,441.73	32,664,096.76
Cashreceiptsfromreturnsoninvestments		214,065,210.12	252,042,116.93
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets		339,163.00	-
Othercashreceiptsrelatingtoinvestingactivities		2,324,825,373.52	1,575,127,297.73

Totalcashinflowsfrominvestingactivities

2,542,227,188.37

1,859,833,511.42

Cashpaymentsforacquisitionoffixedassets,intangibleassetsandotherlong-termassets		2,302,398.23	10,386,641.64
Othercashpaymentsrelatingtoinvestingactivities		2,155,040,000.00	1,309,671,874.11

Totalcashoutflowsfrominvestingactivities

2,157,342,398.23

1,320,058,515.75

Netcashflowsfrominvestingactivities

384,884,790.14

539,774,995.67

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceiptsfromborrowings

Cashreceiptsfromborrowings		280,000,000.00	32,264,821.52
Othercashreceiptsrelatingtofinancingactivities		18,653,623,031.33	16,113,679,647.75

Totalcashinflowsfromfinancingactivities

18,933,623,031.33

16,145,944,469.27

Cashrepaymentsfordebts		30,164,821.52	43,700,000.00
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses		363,151,913.01	272,655,694.83
Othercashreceiptsrelatingtofinancingactivities		18,673,121,608.99	15,582,101,156.66
Totalcashoutflowsfromfinancingactivities		19,066,438,343.52	15,898,456,851.49

Netcashflowsfromfinancingactivities

(132,815,312.19)

247,487,617.78

4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS

392,002.63

(47,935.97)

5.NETINCREASEINCASHANDCASHEQUIVALENTS		343,314,083.62	867,551,697.22
Add:Cashandcashequivalentsatbeginningoftheyear		3,020,909,473.71	2,894,333,956.38

6.CASHANDCASHEQUIVALENTSATENDOFYEAR

3,364,223,557.33

3,761,885,653.60

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

NotestofinancialstatementsForthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany

(1)HistoricaldevelopmentandbasicinformationAsapprovedbythePeople’sGovernmentofShenzhen(SFBF(1993)No.356),ChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasthe“theCompany”),formerlyknownasShenzhenHealthMineralWaterCorp.,Ltd.,wasregisteredasajointstockliabilitylimitedcompanyon1February1993throughstocktransformation.InMarch1993,withtheapprovalfromtheShenzhenBranchofthePeople’sBankofChina,theCompanyissued30millionAshares(including16.5millionpublicshares,

3.5millionemployeesharesand10millioncorporationshares)and20millionBshares.Afterthisissuance,theCompany’ssharecapitalwasRMB105million.Throughconvertcapitalsurplusintosharecapital,bonusissuesandissuanceofsharesforyears,thesharecapitaloftheCompanyincreasedtoRMB428.13millionasat30June2021InNovember2000,theCompanyenteredintoanAssetsExchangeAgreementwithShenzhenInvestmentManagementCompany,theoriginalmajorshareholderoftheCompany,toexchangealltheassetsandliabilitiesoftheCompanyasof31August2000forShenzhenInvestmentManagementCompany’s100%equityinterestsin11pharmaceuticalcompaniesandcertainpropertiesaswellas51%equityinterestsinShenzhenTefaModernComputerCo.,Ltd.TheaboveassetexchangeproposalwasapprovedbyshareholdersintheSecondExtraordinaryGeneralMeetingonDecember29,2000.Thetransactionwascompletedon8January2001.On18February2004,theCompany’soriginalmajorshareholder,ShenzhenInvestmentManagementCompany,enteredintoaStockTransferAgreementwithSinopharmGroupCo.,Ltd.(hereinafterreferredtoas“SinopharmGroup”)totransferits43.33%sharesintheCompanytoSinopharmGroup.Thelegalproceduresoftheaboveequitytransferwerecompletedon9December2004.Atthesametime,asapprovedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(GZCQ(2004)No.525)andtheChinaSecuritiesRegulatoryCommission(ZJGSZ(2004)No.94),thenatureoftheseshareswaschangedfromstate-ownedstocktostate-ownedlegalentitystockandSinopharmGroupbecamethelargestshareholderoftheCompany.On14April2006,theCompany’sproposalonreformationofsegregatedstockswasapproved.TogainliquidityfortherestrictedstocksoftheCompany,theholdersoftherestrictedstocksoftheCompanyagreedtopaythefollowingconsideration:basedonthestockregistrationasof27April2006,theCompanyissuedbonusshareson28April2006attheratioof3sharestoevery10AsharestoliquidatedA-shareholderswhichwentpubliconthesameday.Afterthisbonusissue,thetotalnumberofsharesoftheCompanyremainedunchangedwithcorrespondingchangesinthecompositionofshareholdings.OnMarch142014,thecompanyissued74,482,543ordinaryshares(Ashares)throughthenon-publicoffering.ParvaluepershareisRMB1.00.Thesharesshallnotbetransferredwithin36monthssincetheissueday.ThetotalnumberofsharesoftheCompanywas362,631,943sincethedateofissue.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany(Continued)

(1)Historicaldevelopmentandbasicinformation(Continued)TheCompanyacquiredthecompaniesundercommoncontrol,includingSinopharmHoldingGuodaDrugstoreCo.,Ltd.(“GuodaDrugstore”),FoshanNanhaiMedicineGroupCo.,Ltd.(“FoshanNanhai”),GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.(“SouthPharma&Trade”)andGuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(“GuangdongUptodate&SpecialMedicines”)byissuingsharesandraisedsupportingfundsbyissuingsharestoPingAnAssetManagementCo.,Ltd.toacquirethenon-controllinginterestofSouthPharma&Trade.Theabovetransactionswerecompletedon31December2016,andtherelevantsharesweresuccessfullyissuedandlistedon5January2017.Afterwards,thetotalnumberofsharesoftheCompanyincreasedto428,126,983.Asof30June2021,thetotalsharecapitalwasRMB428.13million.TheCompanyisregisteredwithShenzhenAdministrationforIndustry&Commerce.ItsUniformSocialCreditCodeis91440300192186267U.TheoperationperiodoftheCompanyisfrom2August1986tothelongterm.TheregisteredcapitaloftheCompanyisRMB428.13million.ThelegalrepresentativeoftheCompanyisLinZhaoxiong.TheapprovedscopeofbusinessoftheCompanyanditssubsidiaries(together“theGroup”)includes:

thewholesaleoftraditionalChinesemedicinepreparations,bulkpharmaceuticaldrugs,chemicalpreparations,bulkantibioticdrugs,antibioticpreparations,biochemicaldrugs,biologicalproducts(includingvaccinesandinvitrodiagnosticreagentspsychotropicdrugsandpreparations,narcoticdrugs,toxicdrugsformedicaluse,proteinassimilationpreparationandpeptidehormones;tradingofdietarysupplement;research,developmentandconsultationservicesofpharmaceuticalpackagingmaterialsandpharmaceuticalindustryproducts;industrialinvestmentholding;domestictrade;materialsupplyandmarketingindustry(otherthanspeciallicensing);saleofambulances;tradeofsecond-classandthird-classmedicalequipment;projectinvestment;propertymanagementandleasingofself-ownedproperties;pharmacovigilanceandmedicalinformationconsulting;parkingoperation;logisticsandrelatedservices;packageagencybusiness;logisticdesign;importandexportservices(excludingprojectsthatareprohibitedbythecountry;andlimitedprojectshastobeapprovedbeforeoperating).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IProfileoftheCompany(Continued)

(2)TheGroup’sparentandultimateparentcompaniesareSinopharmGroupandChinaNational

PharmaceuticalGroupCorporation(“CNPGC”),respectively.

(3)ThesefinancialstatementswereauthorizedforissuebytheboardofdirectorsoftheCompany

on13August2021.

(4)Subsidiariesconsolidatedinthefinancialstatementsforthecurrentperiodandchangeinthe

consolidationscopeareshowninNoteVI.IIBasisofpreparationThefinancialstatementswerepreparedinaccordancewiththeBasicStandardandspecificstandardsofAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandthespecificaccountingstandards,applicationguidance,interpretationandotherrelevantregulationsissuedoramendedthereafter(hereaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”or“CAS”).Thesefinancialstatementsarepreparedonagoingconcernbasis.Exceptforcertainfinancialinstruments,thefinancialstatementshavebeenpreparedusingthehistoricalcostastheprincipleofmeasurement.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimatesTheGroupdeterminesthespecificaccountingpoliciesandestimatesbasedonitsfeaturesofproductionandoperation,primarilycomprisingthemethodsofprovisionforexpectedcreditlossesonreceivables,valuationofinventories,depreciationoffixedassetsandamortisationofintangibleassets,themeasurementmodelofinvestmentproperties,recognitionandmeasurementofrevenue,etc.

(1)StatementofcompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementsoftheCompanyfortheyearended30June2021areincompliancewithAccountingStandardsforBusinessEnterprises,andtrulyandcompletelypresentthefinancialpositionoftheGroupandtheCompanyasof30June2021andtheoperatingresults,cashflowsandotherinformationforthesixmonthsended30June2021oftheGroupandtheCompany.

(2)AccountingyearTheCompany’saccountingyearbeginson1Januaryandendson31December.

(3)BusinesscycleTheCompany’soperatingcycleis12months.

(4)FunctionalcurrencyTheGroup’sfunctionalandpresentationcurrencyisRenminbi(RMB).ThecurrencyunitisRMBYuanunlessotherwisestated.

(5)BusinesscombinationsBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.(a)BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Inabusinesscombinationinvolvingenterprisesundercommoncontrol,theenterprisethat,atthecombinationdate,obtainscontrolofanothercombiningenterpriseistheabsorbingenterprise,whilethatothercombiningenterpriseistheenterprisebeingabsorbed.Thecombinationdateisthedateonwhichtheabsorbingenterpriseeffectivelyobtainscontrolontheenterprisebeingabsorbed.Theassetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingparty’sacquisitionoftheenterprisebeingabsorbed)thatareobtainedbytheabsorbingenterpriseinabusinesscombinationinvolvingenterprisesundercommoncontrolshallbemeasuredonthebasisoftheircarryingamountsinthefinancialstatementsoftheultimatecontrollingpartyatthecombinationdate.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)shallbeadjustedtocapitalpremiumundercapitalreservesandthebalancetransferredfromcapitalreservesundertheoldaccountingsystem.Ifthecapitalpremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(5)Businesscombinations(Continued)(b)BusinesscombinationsinvolvingenterprisesnotundercommoncontrolAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination.Inabusinesscombinationnotinvolvingenterprisesundercommoncontrol,theenterprisethat,ontheacquisitiondate,obtainscontrolofanothercombiningenterpriseistheacquirer,whilethatothercombiningenterpriseistheacquiree.Theacquisitiondateisthedateonwhichtheacquirereffectivelyobtainscontroloftheacquiree.Theacquirershallmeasuretheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinthebusinesscombinationattheirfairvaluesontheacquisitiondate.Goodwillisinitiallyrecognisedandmeasuredatcost,beingtheexcessoftheaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andanyfairvalueoftheGroup’spreviouslyheldequityinterestintheacquireeovertheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets.Afterinitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.Wheretheaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andanyfairvalueoftheGroup’spreviouslyheldequityinterestintheacquireeislowerthantheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets,theGroupreassessesthemeasurementofthefairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilitiesandthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued),togetherwiththefairvalueoftheGroup’spreviouslyheldequityinterestintheacquiree.Ifafterthatreassessment,theaggregateofthefairvalueoftheconsiderationtransferred(orthefairvalueoftheequitysecuritiesissued)andtheGroup’spreviouslyheldequityinterestintheacquireeisstilllowerthantheGroup’sinterestinthefairvalueoftheacquiree’snetidentifiableassets,theGrouprecognisestheremainingdifferenceinprofitorloss.Wherethebusinesscombinationnotinvolvingenterprisesundercommoncontrolisachievedinstages,theacquirer’spreviouslyheldequityinterestsintheacquireeareremeasuredatthefairvalueontheacquisitiondate,withthedifferencebetweenthefairvalueandcarryingamountrecognisedasinvestmentincomeforthecurrentperiod.Iftheacquirer’spreviouslyheldequityinterestsoftheacquireeinvolveothercomprehensiveincome(“OCI”)undertheequitymethod,theaccountingtreatmentisconductedonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities,andthechangesinshareholders’equityotherthannetprofitorloss,OCIandprofitdistributionsarechargedtoprofitorlossforthecurrentperiodontheacquisitiondate.ForfinancialassetsatfairvaluethroughOCIheldbeforetheacquisitiondate,changesinfairvaluethatwereaccumulatedthroughOCIwilltransfertoretainedearnings.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(6)PreparationofconsolidatedfinancialstatementsThescopeoftheconsolidatedfinancialstatements,whichincludethefinancialstatementsoftheCompanyandallofitssubsidiaries,isdeterminedonthebasisofcontrol.AsubsidiaryisanentitythatiscontrolledbytheCompany(suchasanenterprise,adeemedseparateentity,orastructuredentitycontrolledbytheCompany).Inthepreparationoftheconsolidatedfinancialstatements,thefinancialstatementsofsubsidiariesarepreparedforthesameaccountingyearastheCompany,usingconsistentaccountingpolicies.Allintra-groupassetsandliabilities,equity,income,expensesandcashflowsrelatingtotransactionsbetweenmembersoftheGroupareeliminatedinfullonconsolidation.Wherethelossforthecurrentperiodattributabletonon-controllinginterestsofasubsidiaryexceedsthenon-controllinginterestsoftheopeningbalanceofequityofthesubsidiary,theexcessshallstillbeallocatedagainstthenon-controllinginterests.Forsubsidiariesacquiredthroughbusinesscombinationsnotinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheacquireeshallbeconsolidatedfromthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatesuchcontrolceases.Whilepreparingtheconsolidatedfinancialstatements,theGroupshalladjustthesubsidiary’sfinancialstatements,onthebasisofthefairvaluesoftheidentifiableassets,liabilitiesandcontingentliabilitiesrecognisedontheacquisitiondate.Forsubsidiariesacquiredthroughbusinesscombinationsinvolvingentitiesundercommoncontrol,thefinancialperformanceandcashflowsoftheentitybeingabsorbedshallbeconsolidatedfromthebeginningoftheperiodinwhichthecombinationoccurs.Whilepreparingthecomparativefinancialstatements,adjustmentsaremadetorelateditemsinthefinancialstatementsforthepriorperiodasifthereportingentityafterthecombinationhasbeeninexistencesincethedatetheultimatecontrollingpartyfirstobtainedthecontrol.TheGroupreassesseswhetherornotitcontrolsaninvesteeifanychangeinfactsandcircumstancesindicatesthattherearechangestooneormoreofthethreeelementsofcontrol.WhentheGrouplosescontrolofasubsidiaryinmultipletransactionsinwhichitdisposesofitslong-termequityinvestmentinthesubsidiaryinstages,ifeachofthemultipletransactionsdoesnotformpartofabundledtransaction,thetransactionsconductedbeforethelossofcontrolofthesubsidiaryareaccountedforinaccordancewiththeaccountingpolicyforpartialdisposaloftheequityinvestmentinsubsidiarieswherecontrolisretained.Ifeachofthemultipletransactionsformspartofabundledtransactionwhicheventuallyresultsinthelossofcontrolinthesubsidiary,thesemultipletransactionsareaccountedforasasingletransaction.Intheconsolidatedfinancialstatements,thedifferencebetweentheconsiderationreceivedandthecorrespondingproportionofthesubsidiary’snetassets(calculatedcontinuouslyfromtheacquisitiondate)ineachtransactionpriortothelossofcontrolshallberecognisedinothercomprehensiveincomeandtransferredtoprofitorlosswhentheparenteventuallylosescontrolofthesubsidiary.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(7)CashandcashequivalentsCashcomprisestheGroup’scashonhandandbankdepositsthatcanbereadilywithdrawnondemand.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcash,andaresubjecttoaninsignificantriskofchangesinvalue.

(8)ForeigncurrencytransactionsandforeigncurrencytranslationTheGrouptranslatesforeigncurrencytransactionsintoitsfunctionalcurrency.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognisedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalizedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedatesofthetransactions.Foreigncurrencycashflowsaretranslatedusingthespotexchangeratesprevailingonthedatesofcashflows.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.

(9)FinancialinstrumentsAfinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.RecognitionandderecognitionTheGrouprecognisesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(9)Financialinstruments(Continued)Recognitionandderecognition(Continued)Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfinancialassets)isprimarilyderecognised(i.e.,removedfromtheGroup’sconsolidatedbalancesheet)when:

(1)therightstoreceivecashflowsfromthefinancialassethaveexpired;or

(2)theGrouphastransferreditsrightstoreceivecashflowsfromthefinancialasset,orhas

assumedanobligationtopaythereceivedcashflowsinfullwithoutmaterialdelaytoathirdpartyundera“pass-through”arrangement;andeither(i)hastransferredsubstantiallyalltherisksandrewardsofthefinancialasset,or(ii)hasneithertransferrednorretainedsubstantiallyalltherisksandrewardsoftheasset,buthastransferredcontrolofthefinancialasset.Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelled,orexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandarecognitionofanewliability,andthedifferencebetweentherespectivecarryingamountsisrecognisedinprofitorloss.Regularwaypurchasesandsalesoffinancialassetsarerecognisedandderecognisedusingtradedateaccounting.Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliverywithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.ThetradedateisthedatethattheGroupcommittedtopurchaseorsellafinancialasset.ClassificationandmeasurementoffinancialassetsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristicsandtheGroup’sbusinessmodelformanagingthem:financialassetsatfairvaluethroughprofitorloss,financialassetsatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincome.AllaffectedrelatedfinancialassetswillbereclassifiedonlyiftheGroupchangesitsbusinessmodelformanagingfinancialassets.Financialassetsaremeasuredatfairvalueoninitialrecognition,butaccountsreceivableornotesreceivablearisingfromthesaleofgoodsorrenderingofservicesthatdonotcontainsignificantfinancingcomponentsorforwhichtheGrouphasappliedthepracticalexpedientofnotadjustingtheeffectofasignificantfinancingcomponentduewithinoneyear,areinitiallymeasuredatthetransactionprice.Forfinancialassetsatfairvaluethroughprofitorloss,relevanttransactioncostsaredirectlyrecognisedinprofitorloss,andtransactioncostsrelatingtootherfinancialassetsareincludedintheinitialrecognitionamounts.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(9)Financialinstruments(Continued)Classificationandmeasurementoffinancialassets(Continued)Thesubsequentmeasurementoffinancialassetsdependsontheirclassificationasfollows:

DebtinvestmentsmeasuredatamortisedcostTheGroupmeasuresfinancialassetsatamortisedcostifbothofthefollowingconditionsaremet:thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Financialassetsatamortisedcostaresubsequentlymeasuredusingtheeffectiveinterestmethodandaresubjecttoimpairment.Gainsandlossesarerecognisedinprofitorlosswhentheassetisderecognised,modifiedorimpaired.DebtinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupmeasuresdebtinvestmentsatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:thefinancialassetisheldwithinabusinessmodelwiththeobjectiveofbothholdingtocollectcontractualcashflowsandselling;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeisrecognisedusingtheeffectiveinterestmethod.Theinterestincome,impairmentlossesandforeignexchangerevaluationarerecognisedinprofitorloss.Theremainingfairvaluechangesarerecognisedinothercomprehensiveincome.Uponderecognition,thecumulativefairvaluechangerecognisedinothercomprehensiveincomeisrecycledtoprofitorloss.EquityinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupcanelecttoclassifyirrevocablyitsequityinvestmentswhicharenotheldfortradingasequityinvestmentsdesignatedatfairvaluethroughothercomprehensiveincome.Onlytherelevantdividendincome(excludingthedividendincomeexplicitlyrecoveredaspartoftheinvestmentcost)isrecognisedinprofitorloss.Subsequentchangesinthefairvalueareincludedinothercomprehensiveincome,andnoprovisionforimpairmentismade.Whenthefinancialassetisderecognised,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredfromothercomprehensiveincometoretainedearnings.FinancialassetsatfairvaluethroughprofitorlossThefinancialassetsotherthantheabovefinancialassetsmeasuredatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Suchfinancialassetsaresubsequentlymeasuredatfairvaluewithnetchangesinfairvaluerecognisedinprofitorlossexceptforthederivativesdesignatedashedginginstrumentsinaneffectivehedge.Onlywhenanaccountingmismatchiseliminatedorsignificantlydecreased,financialassetsaredesignatedasfinancialassetsatfairvaluethroughprofitorlossatinitialrecognition.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(9)Financialinstruments(Continued)Classificationandmeasurementoffinancialassets(Continued)Whenanenterpriseinitiallydesignatesafinancialassetasafinancialassetatfairvaluethroughprofitorloss,itcannotbereclassifiedtootherfinancialassets;andotherfinancialassetscannotbere-designatedafterinitialrecognitionasfinancialassetsmeasuredatfairvaluethroughprofitorloss.ClassificationandmeasurementoffinancialliabilitiesTheGroup’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorloss,otherfinancialliabilitiesorderivativesdesignatedaseffectivehedginginstruments.Forfinancialliabilitiesatfairvaluethroughprofitorloss,relevanttransactioncostsaredirectlyrecognisedinprofitorloss,andtransactioncostsrelatingtootherfinancialliabilitiesareincludedintheinitialrecognitionamounts.Thesubsequentmeasurementoffinancialliabilitiesdependsontheirclassificationasfollows:

FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)andfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.Financialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)aresubsequentlymeasuredatfairvalue.Allchangesinfairvalueofsuchfinancialliabilitiesarerecognisedinprofitorlossexceptforthederivativesdesignatedashedginginstrumentsinaneffectivehedge.Financialliabilitiesdesignatedatfairvaluethroughprofitorlossaresubsequentlymeasuredatfairvalueandgainsorlossesarerecognisedinprofitorloss,exceptforthegainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincome.IfgainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincomewillleadtoorexpandaccountingmismatchinprofitorloss,theGroupwillincludeallthechangesinfairvalue(includingtheamountaffectedbychangesintheGroup’sowncreditrisk)ofsuchfinancialliabilitiesinprofitorloss.Onlyifoneofthefollowingconditionsismetcanfinancialliabilitiesbedesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossoninitialrecognition:

(1)Itcaneliminateorsignificantlyreducetheaccountingmismatch.

(2)Theformalwrittendocumentoftheriskmanagementorinvestmentstrategyhasstatedthattheportfoliooffinancialinstrumentsismanaged,evaluatedandreportedtokeymanagersonthebasisoffairvalue.

(3)Thefinancialliabilityisahybridinstrumentthatcontainsoneormoreembeddedderivatives,

unlesstheembeddedderivativeshavenosignificantchangeinthecashflowsofthehybridinstrument,ortheembeddedderivativesshouldobviouslynotbeseparatedfromtherelatedhybridinstruments.

(4)Mixedinstrumentscontainembeddedderivativesthatneedtobesplitbutcannotbemeasured

separatelyatthetimeofacquisitionoronsubsequentbalancesheetdays.Whenanenterprisedesignatesafinancialliabilityasafinancialliabilityatfairvaluethroughprofitorloss,itcannotbereclassifiedasotherfinancialliabilities;norcanotherfinancialliabilitiesbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(9)Financialinstruments(Continued)Classificationandmeasurementoffinancialliabilities(Continued)OtherfinancialliabilitiesAfterinitialrecognition,suchfinancialliabilitiesaremeasuredatamortisedcostusingtheeffectiveinterestmethod.ImpairmentoffinancialassetsBasedontheexpectedcreditlosses(“ECLs”),theGrouprecognisesanallowanceforECLsforthefinancialassetsmeasuredatamortisedcost,debtinvestmentsatfairvaluethroughothercomprehensiveincome,andcontractassets.Fortradereceivablesandcontractassetsthatdonotcontainasignificantfinancingcomponent,theGroupappliesthesimplifiedapproachtorecognisealossallowancebasedonlifetimeECLs.Fortradereceivablesandcontractassetsthatcontainasignificantfinancingcomponent,theGroupchoosestoadoptthesimplifiedapproachtorecognisealossallowancebasedonlifetimeECLs.Exceptforfinancialassetswhichapplythesimplifiedapproachasmentionedaboveandotherfinancialassets,theGroupassesseswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognitionateachbalancesheetdate.Ifthecreditriskhasnotincreasedsignificantlysinceinitialrecognition(stage

1),thelossallowanceismeasuredatanamountequalto12-monthECLsbytheGroupandtheinterestincomeiscalculatedaccordingtothecarryingamountandtheeffectiveinterestrate;ifthecreditriskhasincreasedsignificantlysinceinitialrecognitionbutarenotcredit-impaired(stage2),thelossallowanceismeasuredatanamountequaltolifetimeECLsbytheGroupandtheinterestincomeiscalculatedaccordingtothecarryingamountandtheeffectiveinterestrate;ifsuchfinancialassetsarecredit-impairedafterinitialrecognition(stage3),thelossallowanceismeasuredatanamountequaltolifetimeECLsbytheGroupandtheinterestincomeiscalculatedaccordingtotheamortisedcostandtheeffectiveinterestrate.Ifthecreditriskoffinancialinstrumentsislowatthebalancesheetdate,theGroupassumesthatthecreditriskhasnotincreasedsignificantlysinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesonfinancialinstrumentsonasingleandcombinedbasis.Takingintoaccountthecreditriskcharacteristicsofdifferentcustomers,theGroupevaluatestheexpectedcreditlossesonaccountsreceivablebasedontheagingportfolio.RefertoNoteX(3)forthedisclosureoftheGroup'scriteriaforjudgingthesignificantincreaseincreditrisk,thedefinitionofassetswithimpairedcreditlosses,andtheassumptionofmeasuringexpectedcreditlosses.WhentheGroupnolongerreasonablyexpectstobeabletorecoverallorpartofthecontractcashflowsofthefinancialassets,theGroupdirectlywritesdownthecarryingamountofthefinancialasset.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(9)Financialinstruments(Continued)OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamounts;andthereisanintentiontosettleonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously.TransferoffinancialassetsAfinancialassetisderecognisedwhentheGrouphastransferredsubstantiallyalltherisksandrewardsoftheassettothetransferee.AfinancialassetisnotderecognisedwhentheGroupretainssubstantiallyalltherisksandrewardsofthefinancialasset.WhentheGrouphasneithertransferrednorretainedsubstantiallyalltherisksandrewardsofthefinancialasset,iteither(i)derecognisesthefinancialassetandrecognisestheassetsandliabilitiescreatedinthetransferwhenithasnotretainedcontroloftheasset;or(ii)continuestorecognisethetransferredassettotheextentoftheGroup'scontinuinginvolvement,inwhichcase,theGroupalsorecognisesanassociatedliability.Continuinginvolvementthattakestheformofaguaranteeoverthetransferredfinancialassetismeasuredattheloweroftheoriginalcarryingamountofthefinancialassetandtheguaranteeamount.TheguaranteeamountisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.

(10)NotesreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossofnotesreceivable,pleaserefertoNoteV(9)“Financialinstruments-Impairmentoffinancialinstruments”.

(11)AccountsreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossofaccountsreceivable,pleaserefertoNoteV(9)“Financialinstruments-Impairmentoffinancialinstruments”.

(12)ReceivablefinancingItincludesnotesreceivableandaccountsreceivablesdesignatedatfairvaluethroughothercomprehensiveincomeasatbalancesheetdate.Fordetailsofthemethodfordeterminingtheexpectedcreditlossofreceivablesfinancing,pleaserefertoNoteV(9)“Financialinstruments-Impairmentoffinancialinstruments”.

(13)OtherreceivablesFordetailsofthemethodfordeterminingtheexpectedcreditlossesofotherreceivables,pleaserefertoNoteV(9)“Financialinstruments-Impairmentoffinancialinstruments”.

Notestofinancialstatements(Continued)

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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(14)InventoriesInventoriesincluderawmaterials,workinprogress,finishedgoods,delegateprocessingsuppliesandturnovermaterials,andaremeasuredatthelowerofcostandnetrealizablevalue.Inventoriesareinitiallycarriedatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandothercosts.Costisdeterminedontheweightedaveragebasis.Turnovermaterialsincludelowvalueconsumablesandpackingmaterials,whichareontheimmediatewrite-offbasis.TheGroupadoptstheperpetualinventorysystem.Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealisablevalue.Theinventoriesarewrittendownbelowcosttonetrealisablevalueandthewrite-downisrecognisedinprofitorlossifthecostishigherthanthenetrealisablevalue.Whenthecircumstancesthatpreviouslycausedtheinventoriestobewrittendownbelowcostnolongerexist,inwhichcasethenetrealisablevalueofinventoriesbecomeshigherthanthecarryingamount,theamountofthewrite-downisreversed.Thereversalislimitedtotheamountoftheoriginalwrite-down,andisrecognisedinprofitorloss.Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesaleandrelevanttaxes.Finishedgoodsarewrittendownitembyitem.

(15)ContractassetsTheGrouppresentscontractassetsorcontractliabilitiesdependingontherelationshipbetweenthesatisfactionofitsperformanceobligationsandthecustomer’spaymentinthebalancesheet.TheGroupoffsetsthecontractassetsandcontractliabilitiesunderthesamecontractandpresentsthenetamount.AcontractassetistherighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andthatrightisconditionedonsomethingotherthanthepassageoftime.FordetailsofhowtheGroupmeasuresandaccountsfortheECLsofacontractasset,refertoNoteV

(10)“Financialinstruments-Impairmentoffinancialinstruments”.

(16)AssetsrelatingtocontractcostTheGroup’scontractcostassetsincludethecoststoobtainandfulfilacontractandareclassifiedasinventories,othercurrentassetsandothernon-currentassetsbyliquidity.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomeriftheGroupexpectstorecoverthosecosts,unlesstheamortisationperiodoftheassetisoneyearorless.

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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(16)Assetsrelatingtocontractcost(Continued)Otherthanthecostswhicharecapitalisedasinventories,fixedassetsandintangibleassets,etc.,costsincurredtofulfilacontractwithacustomerarecapitalisedasanassetifallofthefollowingcriteriaaremet:

(1)thecostsrelatedirectlytoacontractortoananticipatedcontract,includingdirectlabour,direct

materials,overheads(orsimilarexpenses),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecauseanentityenteredintothecontract;

(2)thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying

performanceobligationsinthefuture;and

(3)thecostsareexpectedtoberecovered.Thecontractcostassetisamortisedandchargedtoprofitorlossonasystematicbasisthatisconsistentwiththepatternoftherevenuetowhichtheassetrelatedisrecognised.TheGroupaccruesprovisionsforimpairmentandrecognisesimpairmentlossestotheextentthatthecarryingamountofacontractcostassetexceeds:

(1)theremainingamountofconsiderationthattheentityexpectstoreceiveinexchangeforthe

goodsorservicestowhichtheassetrelates;less

(2)thecoststhatareexpectedtobeincurredtotransferthoserelatedgoodsorservices.TheGrouprecognisesinprofitorlossareversaloftheimpairmentlosspreviouslyrecognisedtotheextentthatthedifferencebetween(1)and(2)exceedsthecarryingamountoftheassetduetothesubsequentchangesofthefactorscausingassetimpairmentinpreviousperiods,butthecarryingamountafterthereversaldoesnotexceedthecarryingamountoftheassetatthereversaldateifnoimpairmentlossisotherwiserecognised.

(17)Long-termequityinvestmentsLong-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociates.

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(17)Long-termequityinvestments(Continued)Along-termequityinvestmentisinitiallymeasuredatitsinitialinvestmentcostonacquisition.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostshallbetheshareofthecarryingamountofequityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyasatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandbookvalueofconsiderationofcombinationisadjustedtocapitalreserves,andtoretainedearningsifcapitalreservesisinsufficient.Othercomprehensiveincomerecognisedbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswichestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesnotundercommoncontrol,theinvestmentcostshallbethecombinationcost.(Forabusinesscombinationachievedinstages,theinitialinvestmentcostisdeterminedasthesumofthecarryingamountofequityoftheacquireeandtheadditionalinvestmentcostsonthecombinationdate.)Thecombinationcostinvolvestheassetspaidbytheacquirer,liabilitiesincurredandthefairvalueofequitysecurities.Othercomprehensiveincomesrecognisedusingtheequitymethodbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswichestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.Theaccumulatedchangesinthefairvalueoffinancialassetsatfairvaluethroughothercomprehensiveincomeisreclassifiedtoretainedearningswhenadoptingthecostmethod.Dependingonthewayofacquisitionoflong-termequityinvestments,theinitialinvestmentcostisdeterminedasfollows:Forlong-termequityinvestmentsacquiredbywayofcashpayment,theinitialinvestmentcostincludesalldirectlyassociatedexpenses,applicabletaxesandfees,andothernecessaryexpenses.Forlong-termequityinvestmentsacquiredbywayofissuingequitysecurities,theinitialinvestmentcostincludesthefairvalueofequitysecurities.Forlong-termequityinvestmentsacquiredbywayoftheswapofnon-monetaryassets,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.7—SwapofNon-monetaryAssets.”Forlong-termequityinvestmentsacquiredbywayofdebtrestructuring,theinitialinvestmentcostshallbedeterminedinaccordancewith“ASBENo.12—DebtRestructuring.”Foralong-termequityinvestmentwheretheCompanycanexercisecontrolovertheinvestee,thelong-terminvestmentisaccountedforusingthecostmethodintheCompany’sindividualfinancialstatements.ControlisachievedwhentheGroupisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvesteeandhastheabilitytoaffectthosereturnsthroughitspowerovertheinvestee.Underthecostmethod,thelong-termequityinvestmentismeasuredatitsinitialinvestmentcost.Whenadditionalinvestmentismadeortheinvestmentisrecouped,thecostoflong-termequityinvestmentisadjustedaccordingly.Cashdividendsorprofitdistributionsdeclaredbytheinvesteearerecognisedasinvestmentincomeinprofitorloss.

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(17)Long-termequityinvestments(Continued)TheequitymethodisadoptedwhentheGrouphasjointcontrol,orexercisessignificantinfluenceovertheinvestee.Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontrolwithotherpartiesoverthosepolicies.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceischargedtoprofitorloss,andthecostofthelong-termequityinvestmentisadjustedaccordingly.Undertheequitymethod,afterithasacquiredalong-termequityinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorloss,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossandothercomprehensiveincome,andadjuststhecarryingamountoftheinvestmentaccordingly.TheGrouprecognisesitsshareoftheinvestee’sprofitorlossaftermakingappropriateadjustmentstotheinvestee’sprofitorlossbasedonthefairvalueoftheinvestee’sidentifiableassetsattheacquisitiondate,usingtheGroup’saccountingpoliciesandperiods.UnrealisedprofitsandlossesfromtransactionswithitsjointventuresandassociatesareeliminatedtotheextentoftheGroup’sinvestmentsintheassociatesorjointventures(exceptforassetsthatconstituteabusiness)(However,anylossarisingfromsuchtransactionswhichareattributabletoanimpairmentlossshallberecognisedatitsentirety).ThecarryingamountoftheinvestmentisreducedbasedontheGroup’sshareofanyprofitdistributionsorcashdividendsdeclaredbytheinvestee.TheGroup’sshareofnetlossesoftheinvesteeisrecognisedtotheextentthatthecarryingamountoftheinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteeisreducedtozero,exceptthattheGrouphastheobligationstoassumefurtherlosses.TheGroup’sowner’sequitychanges,otherthanthosearisingfromtheinvestee’sprofitorloss,othercomprehensiveincomeorprofitdistribution,isrecognisedintheGroup’sequity,andthecarryingamountofthelong-termequityinvestmentisadjustedaccordingly.Upondisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountisrecognisedinprofitorloss.Foralong-termequityinvestmentaccountedforusingtheequitymethod,whentheGroupdiscontinuesusingtheequitymethodduetodisposal,allamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheowner’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossinitsentirety.WhentheGroupcontinuestousetheequitymethod,theamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesandreclassifiedtoprofitorlossonapro-ratabasis.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossonapro-ratabasis.

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(18)InvestmentpropertiesInvestmentpropertiesarepropertiesheldtoearnrentalincomeand/orforcapitalappreciation.Investmentpropertiesincludelanduserightsleasedout,landuserightsheldfortransferuponcapitalappreciation,andbuildingsleasedout.Aninvestmentpropertyismeasuredinitiallyatcost.Iftheeconomicbenefitsrelatingtoaninvestmentpropertywillprobablyflowinandthecostcanbereliablymeasured,subsequentcostsincurredforthepropertyareincludedinthecostoftheinvestmentproperty.Otherwise,subsequentcostsarerecognisedinprofitorlossasincurred.TheGroupadoptsthecostmodelforsubsequentmeasurementofinvestmentproperties.Buildingsandlanduserightsaredepreciatedoramortizedtotheirestimatednetresidualvaluesovertheirestimatedusefullives.Theestimatedusefullives,theestimatednetresidualvaluesthatareexpressedasapercentageofcostandtheannualdepreciation(amortization)ratesofinvestmentpropertiesareasfollows:

Estimatedusefullives

Estimatedresidualvalue

Annualdepreciation(amortization)rates

BuildingsandConstructions	5-35years	0-5%	2.71-19.00%
Landuserights	40-50yearsorNofixedusefullife	-	2.00-2.50%

Whenaninvestmentpropertyistransferredtoowner-occupiedproperty,itisreclassifiedasafixedassetorintangibleassetatthedateoftransfer.Whenanowner-occupiedpropertyistransferredoutforearningrentalsorforcapitalappreciation,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyatitscarryingamountatthedateoftransfer.Theinvestmentproperties’usefullife,netresidualvalueanddepreciation(amortization)methodappliedarereviewedandadjustedasappropriateattheendofeachyear.

(19)FixedassetsRecognitioncriteriaAfixedassetisrecognisedonlywhentheeconomicbenefitsassociatedwiththeassetwillprobablyflowintotheGroupandthecostoftheassetcanbemeasuredreliably.Subsequentexpendituresincurredforafixedassetthatmeetstherecognitioncriteriashallbeincludedinthecostofthefixedasset,andthecarryingamountofthecomponentofthefixedassetthatisreplacedshallbederecognised.Otherwise,suchexpendituresarerecognisedinprofitorlossasincurred.Fixedassetsareinitiallymeasuredatcost,bytakingintoaccounttheeffectofanyassetretirementobligations.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relevanttaxesandanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastateachyearend,andmakeadjustmentsifnecessary.

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(19)Fixedassets(Continued)Depreciationmethod

EstimatedusefullivesEstimatedresidualvalueAnnualdepreciationratesBuildingsandconstructtions10-40years3-5%2.38-9.70%Machineryandequipment5-14years3-5%6.79-19.40%Motorvehicles3-10years5%9.50-31.67%Officeequipments3-10years5%9.50-31.67%Electronicequipments3-10years0-5%9.50-33.33%

(20)ConstructioninprogressThecostofconstructioninprogressisdeterminedaccordingtotheactualexpendituresincurredfortheconstruction,includingallnecessaryconstructionexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshallbecapitalisedbeforetheconstructionisreadyforitsintendeduse,andotherrelevantexpenditures.Anitemofconstructioninprogressistransferredtofixedassetswhentheassetisreadyforitsintendeduse.

(21)BorrowingcostsBorrowingcostsareinterestandothercostsincurredbytheGroupinconnectionwiththeborrowingofthefunds.Borrowingcostsincludeinterest,amortisationofdiscountsorpremiumsrelatedtoborrowings,ancillarycostsincurredinconnectionwiththearrangementofborrowings,andexchangedifferencesarisingfromforeigncurrencyborrowings.Theborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalised.Theamountsofotherborrowingcostsincurredarerecognisedasanexpenseintheperiodinwhichtheyareincurred.Qualifyingassetsareassets(fixedassets,investmentproperties,inventories,etc.)thatnecessarilytakeasubstantialperiodoftimeofacquisition,constructionorproductiontogetreadyfortheirintendeduseorsale.Thecapitalisationofborrowingcostscommencesonlywhenallofthefollowingconditionsaresatisfied:

(1)expendituresfortheassethavebeenincurred;

(2)borrowingcostshavebeenincurred;and

(3)activitiesthatarenecessarytoacquire,constructorproducetheassetforitsintendeduseor

salehavebeenundertaken.Capitalisationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedgetsreadyforitsintendeduseorsale.Anyborrowingcostssubsequentlyincurredarerecognisedinprofitorloss.

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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(21)Borrowingcosts(Continued)Duringthecapitalisationperiod,theamountofinteresteligibleforcapitalisationforeachaccountingperiodshallbedeterminedasfollows:

(1)wherefundsareborrowedspecificallyforthepurposeofobtainingaqualifyingasset,the

amountofinteresteligibleforcapitalisationistheactualinterestcostsincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds;or

(2)wherefundsareborrowedgenerallyforthepurposeofobtainingaqualifyingasset,theamount

ofinteresteligibleforcapitalisationisdeterminedbyapplyingaweightedaverageinterestrateonthegeneralborrowingstotheweightedaverageoftheexcessofthecumulativeexpendituresontheassetovertheexpendituresontheassetfundedbythespecificborrowings.Capitalisationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallybyactivitiesotherthanthosenecessarytogettheassetreadyforitsintendeduseorsale,whenthesuspensionisforacontinuousperiodofmorethan3months.Borrowingcostsincurredduringtheseperiodsarerecognisedasanexpenseinprofitorlossuntiltheacquisition,constructionorproductionisresumed.

(22)Right-of-useassetsTheright-of-useassetsoftheGroupmainlyincludebuildings,machinery,vehicles,officeequipmentsandotherequipments(suchaslanduseright).Atthecommencementdateofthelease,theGrouprecognisesaright-of-useasset.Thecostoftheright-of-useassetcomprises:(i)theamountoftheinitialmeasurementoftheleaseliability;(ii)anyleasepaymentsmadeatorbeforethecommencementdateoftheleaselessanyleaseincentivesreceived;(iii)anyinitialdirectcostincurred;and(iv)anestimateofcostsincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Theright-of-useassetsaredepreciatedonastraight-linebasissubsequentlybytheGroup.IftheGroupisreasonablycertainthattheownershipoftheunderlyingassetwillbetransferredtotheGroupattheendoftheleaseterm,theGroupdepreciatestheassetfromthecommencementdatetotheendoftheusefullifeoftheasset.Otherwise,theGroupdepreciatestheassetsfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheassetortheendoftheleaseterm.TheGroupremeasurestheleaseliabilityatthepresentvalueofthechangedleasepaymentsandadjuststhecarryingamountoftheright-of-useassetsaccordingly,whenthecarryingamountoftheright-of-useassetisreducedtozero,andthereisafurtherreductioninthemeasurementoftheleaseliability,theGrouprecognisestheremainingamountoftheremeasurementinprofitorloss.

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(23)IntangibleassetsAnintangibleassetshallberecognisedonlywhenitisprobablethattheeconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Intangibleassetsaremeasuredinitiallyatcost.However,intangibleassetsacquiredinabusinesscombinationnotinvolvingentitiesundercommoncontrolwithafairvaluethatcanbemeasuredreliablyarerecognisedseparatelyasintangibleassetsandinitiallymeasuredatthefairvalueatthedateofacquisition.TheusefullifeofanintangibleassetisdeterminedaccordingtotheperiodoverwhichitisexpectedtogenerateeconomicbenefitsfortheGroup.AnintangibleassetisregardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Theusefullivesoftheintangibleassetsareasfollows:

Categories

Usefullives

Landuserights		BetweentheapprovedusefulperiodandtheCompany’soperatingperiod
Software		3-10years
TrademarksandBranduserights		10yearsorNofixedlife
Distributionnetwork		10-20years
Franchisingrights		10years
Favorableleases		16-20years

LanduserightsthatarepurchasedbytheGroupareaccountedforasintangibleassets.Buildings,suchasplantsthataredevelopedandconstructedbytheGroup,andrelevantlanduserightsareaccountedforasfixedassetsandintangibleassets,respectively.Paymentsforthelandandbuildingspurchasedareallocatedbetweenthelanduserightsandthebuildings;theyareaccountedforasfixedassetsiftheycannotbereasonablyallocated.Anintangibleassetwithafiniteusefullifeisamortisedusingthestraight-linemethodoveritsusefullife.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortisationmethodatleastateachyearendandmakesadjustmentifnecessary.LanduserightsallocatedbytheStateareregardedasanintangibleassetwithanindefiniteusefullifeduetoanuncertainusefullife.Theimpairmenttestshouldbeconductedfortheintangibleassetswiththeindefiniteservicelifeeveryyeartodeterminewhethertheimpairmentexists.Theintangibleassetswiththeindefiniteservicelifeshallnotbeamortized,andtheCompanyshallmakethereviewoftheservicelifeoftheintangibleassetsduringeveryaccountingperiod.Ifevidenceprovethatusefullivesarefinite,theGroupaccountsfortheintangibleassetsinaccordancewithintangibleassetswithafiniteusefullife.

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(23)Intangibleassets(Continued)InternalresearchanddevelopmentprojectTheGroupclassifiestheexpensesforinternalresearchanddevelopmentasresearchcostsanddevelopmentcosts.Allresearchcostsarechargedtothecurrentprofitorlossasincurred.ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits(includingdemonstrationthattheproductderivedfromtheintangibleassetortheintangibleassetitselfwillbemarketableor,inthecaseofinternaluse,theusefulnessoftheintangibleassetassuch),theavailabilityoftechnicalandfinancialresourcestocompletetheprojectandprocuretheuseorsaleoftheintangibleasset,andtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditurewhichdoesnotmeetthesecriteriaisexpensedwhenincurred.Developmentcostspreviouslyrecognisedasexpensesarenotrecognisedasanassetinasubsequentperiod.Capitalizedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.

(24)Impairmentoflong-termassetsTheGroupdeterminestheimpairmentofassets,otherthantheimpairmentofinventories,investmentpropertiesmeasuredusingthefairvaluemodel,deferredtaxassets,financialassetsandassetsclassifiedasheldforsale,usingthefollowingmethods:

TheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatanassetmaybeimpaired.Ifanyindicationexiststhatanassetmaybeimpaired,theGroupestimatestherecoverableamountoftheassetandperformsimpairmenttesting.Goodwillarisingfromabusinesscombinationandanintangibleassetwithanindefiniteusefullifearetestedforimpairmentatleastateachyearend,irrespectiveofwhetherthereisanyindicationthattheassetmaybeimpaired.Intangibleassetsthathavenotbeenreadyfortheirintendedusearetestedforimpairmenteachyear.Therecoverableamountofanassetisthehigherofitsfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.TheGroupestimatestherecoverableamountonanindividualbasisunlessitisnotpossibletoestimatetherecoverableamountoftheindividualasset,inwhichcasetherecoverableamountisdeterminedfortheassetgrouptowhichtheassetbelongs.Identificationofanassetgroupisbasedonwhethermajorcashinflowsgeneratedbytheassetgrouparelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislessthanitscarryingamount,thecarryingamountisreducedtotherecoverableamountbytheGroup.Thereductioninthecarryingamountistreatedasanimpairmentlossandrecognisedinprofitorloss.Aprovisionforimpairmentlossoftheassetisrecognisedaccordingly.

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(24)Impairmentoflong-termassets(Continued)Forthepurposeofimpairmenttesting,thecarryingamountofgoodwillacquiredinabusinesscombinationisallocatedfromtheacquisitiondateonareasonablebasis,toeachoftherelatedassetgroupsunlessitisimpossibletoallocatetotherelatedassetgroups,inwhichcaseitisallocatedtoeachoftherelatedsetsofassetgroups.EachoftherelatedassetgroupsorsetsofassetgroupsisanassetgrouporasetofassetgroupsthatisexpectedtobenefitfromthesynergiesofthebusinesscombinationandshallnotbelargerthanareportablesegmentdeterminedbytheGroup.Whentestinganassetgroup(asetofassetgroups)towhichgoodwillhasbeenallocatedforimpairment,ifthereisanyindicationofimpairment,theGroupfirstlyteststheassetgroup(setofassetgroups),excludingtheamountofgoodwillallocated,forimpairment,i.e.,theGroupdeterminesandcomparestherecoverableamountwiththerelatedcarryingamountandrecognisesanyimpairmentloss.Afterthat,theGroupteststheassetgroup(setofassetgroups),includinggoodwill,forimpairment,thecarryingamountoftherelatedassetgroup(setofassetgroups)iscomparedtoitsrecoverableamount.Ifthecarryingamountoftheassetgroup(setofassetgroups)ishigherthanitsrecoverableamount,theamountoftheimpairmentlossisfirstlyusedtoreducethecarryingamountofthegoodwillallocatedtotheassetgroup(setofassetgroups),andthenusedtoreducethecarryingamountofotherassets(otherthanthegoodwill)withintheassetgroup(setofassetgroups),onapro-ratabasisofthecarryingamountofeachasset.Oncetheaboveimpairmentlossisrecognised,itcannotbereversedinsubsequentaccountingperiods.

(25)Long-termprepaidexpensesLong-termprepaidexpensesincludetheexpenditureforimprovementstofixedassetsunderoperatingleases,andotherexpendituresthathavebeenmadebutshouldberecognisedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortizedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortization.

(26)ContractliabilitiesTheGrouppresentscontractassetsorcontractliabilitiesdependingontherelationshipbetweenthesatisfactionofitsperformanceobligationsandthecustomer’spaymentinthebalancesheet.TheGroupoffsetsthecontractassetsandcontractliabilitiesunderthesamecontractandpresentsthenetamount.AcontractliabilityistheobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsiderationoranamountofconsiderationisduefromthecustomer,suchasanamountofconsiderationthatanentityhasreceivedbeforethetransferofthepromisedgoodsorservices.

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(27)EmployeebenefitsEmployeebenefitsrefertoallformsofconsiderationorcompensationotherthanshare-basedpaymentsgivenbytheGroupinexchangeforservicesrenderedbyemployeesorforterminationofemployment.Employeebenefitsincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.BenefitsgivenbytheGrouptoanemployee’sspouse,childrenanddependents.Short-termemployeebenefitsTheactualoccurredshort-termemployeebenefitsarerecognizedasliabilitiesduringtheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployeesandascostsofassetsorexpensestowhichevertheemployeeserviceisattributable.Post-employmentbenefits(definedcontributionplans)TheemployeesoftheGroupparticipateinapensionschemeandunemploymentinsurancemanagedbythelocalgovernment,andanenterprisepensionfund,thecorrespondingexpensesshallbeincludedinthecostofrelatedassetsorprofitorloss.Post-employmentbenefits(definedbenefitplans)TheGroupoperatesadefinedbenefitpensionplanwhichrequirescontributionstobemadetoaseparatelyadministeredfund.Thebenefitsareunfunded.Thecostofprovidingbenefitsunderthedefinedbenefitplanisdeterminedusingtheprojectedunitcreditmethod.Remeasurementsarisingfromthedefinedbenefitpensionplan,comprisingactuarialgainsandlosses,theeffectoftheassetceiling(excludingamountsincludedinnetinterestonthenetdefinedbenefitliability)andthereturnonplanassets(excludingamountsincludedinnetinterestonthenetdefinedbenefitliability),arerecognisedimmediatelyinthebalancesheetwithacorrespondingdebitorcredittoequitythroughothercomprehensiveincomeintheperiodinwhichtheyoccur.Remeasurementsarenotreclassifiedtoprofitorlossinsubsequentperiods.PastservicecostsarerecognisedinprofitorlossattheearlierofthedateoftheplanamendmentandthedatethattheGrouprecognisesrestructuring-relatedcostsorterminationbenefits.Netinterestiscalculatedbyapplyingthediscountratetothenetdefinedbenefitliabilityorasset.TheGrouprecognisesthefollowingchangesinthenetdefinedbenefitobligationunderadministrativeexpensesandfinanceexpensesintheincomestatement:servicecostscomprisingcurrentservicecosts,pastservicecosts,gainsandlossesonsettlements;netinterestcomprisinginterestincomeonplanassets,interestcostsonthedefinedbenefitobligationandinterestontheeffectoftheassetceiling.

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(27)Employeebenefits(Continued)TerminationbenefitsTheGroupprovidesterminationbenefitstoemployeesandrecognisesanemployeebenefitsliabilityforterminationbenefits,withacorrespondingchargetoprofitorloss,attheearlierofwhentheGroupcannolongerwithdrawtheofferofthosebenefitsresultingfromanemploymentterminationplanoracurtailmentproposalandwhentheGrouprecognisecostsinvolvingthepaymentofterminationbenefits.TheGroupoffersterminationbenefitstotheemployeeswhoacceptinternalretirementarrangements.Terminationbenefitsreferstosalariesandsocialsecuritiespaidtotheemployeeswhovoluntarilyretireandapprovedbythemanagementbeforethelegalretirementage.TheGrouppaysterminationbenefitsfromthedateofthestartingofinternalretirementarrangementstolegalretirementage.Whenmeetingtherecognitioncriteria,terminationbenefitsarerecognisedasliabilitiesfromthedateonwhichtheemployeesstopofferingservicestothelegalretirementdateandrecognisedinprofitorlossasincurred.Thechangeofterminationbenefits’actuarialassumptionsanddifferenceincurredbytheadjustmentofwelfarestandardsarerecognisedinprofitorlossasincurred.Theterminationbenefitsexpectedtobesettledwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.OtherlongtermemployeebenefitsOtherlong-termemployee’benefitsprovidedtoemployeesshallberecognisedandmeasuredasnetliabilitiesornetassetswhereprovisionsregardingpost-employmentbenefitsareapplicable,providedthatchangesshallbeincludedinthecurrentprofitandlossorrelatedassetcosts.

(28)LeaseliabilityAtthecommencementdateofthelease,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,exceptforshort-termleasesandleasesoflow-valueassets.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheinterestrateimplicitintheleaseasthediscountrate.Ifthatratecannotbereadilydetermined,theGroupusesthelessee’sincrementalborrowingrate.TheGroupcalculatestheinterestexpensesoftheleaseliabilityineachperiodduringtheleasetermusingtheconstantperiodicrateofinterest,andrecognisessuchinterestexpensesinprofitorloss,exceptthoseinthecostsoftherelatedassetasrequired.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesarerecognisedinprofitorlossasincurred,exceptthoseinthecostsoftherelatedassetasrequired.Afterthecommencementdateofthelease,theGroupremeasuresleaseliabilitieswithchangedpresentvalueoftheleasepaymentswhenfixedpayment,expectedunguaranteedresidualvaluepayable,theinterestrateimplicitintheleaseasthediscountrate,purchaseoptions,optionstoextendtheleaseordeterminationoftheleasetermchange.

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(29)ProvisionsAnobligationrelatedtoacontingencyshallberecognisedbytheGroupasaprovisionwhenallofthefollowingconditionsaresatisfied,exceptforcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingentitiesundercommoncontrol:

(1)theobligationisapresentobligationoftheGroup;

(2)itisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettlethe

obligation;and

(3)areliableestimatecanbemadeoftheamountoftheobligation.Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Provisionsarereviewedateachbalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.Acontingentliabilityrecognisedinabusinesscombinationnotinvolvingentitiesundercommoncontrolisinitiallymeasuredatfairvalue.Subsequently,itismeasuredatthehigherof:(i)theamountthatwouldberecognisedinaccordancewiththegeneralpolicyforprovisionsabove;and(ii)theamountinitiallyrecognisedlesscumulativeamortisationrecognisedinaccordancewiththepolicyforrevenuerecognition.

(30)Share-basedpaymentsAshare-basedpaymentisclassifiedaseitheranequity-settledshare-basedpaymentoracash-settledshare-basedpayment.Anequity-settledshare-basedpaymentisatransactioninwhichtheGroupreceivesservicesandusessharesorotherequityinstrumentsasconsiderationforsettlement.Anequity-settledshare-basedpaymentinexchangeforservicesreceivedfromemployeesismeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Ifsuchequity-settledshare-basedpaymentcouldvestimmediately,relatedcostsorexpensesatanamountequaltothefairvalueonthegrantdatearerecognised,withacorrespondingincreaseincapitalreserves;ifsuchequity-settledshare-basedpaymentcouldnotvestuntilthecompletionofservicesforavestingperiod,oruntiltheachievementofaspecifiedperformancecondition,theGroupateachbalancesheetdateduringthevestingperiodrecognisestheservicesreceivedforthecurrentperiodasrelatedcostsandexpenses,withacorrespondingincreaseincapitalreserves,atanamountequaltothefairvalueoftheequityinstrumentsatthegrantdate,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest,whichismadeonthebasisofthelatestavailableinformationsuchasthechangesinthenumberofcoveredemployeesandwhetherspecifiedperformanceconditionshavebeenmet.Thefairvalueisdeterminedusingthebinomialmodel.

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(30)Share-basedpayments(Continued)Thecostofequity-settledtransactionsisrecognised,togetherwithacorrespondingincreaseincapitalreserves,overtheperiodinwhichthespecifiedperformanceorserviceconditionsarefulfilled.Thecumulativeexpenserecognisedforequity-settledtransactionsateachbalancesheetdateuntilthevestingdatereflectstheextenttowhichthevestingperiodhasexpiredandtheGroup’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvest.Forawardsthatdonotultimatelyvestbecausenon-marketperformanceand/orserviceconditionshavenotbeenmet,noexpenseisrecognised.Whereawardsincludeamarketornon-vestingcondition,thetransactionsaretreatedasvestingirrespectiveofwhetherthemarketornon-vestingconditionissatisfied,providedthatallotherperformanceand/orserviceconditionsaresatisfied.Wherethetermsofanequity-settledshare-basedawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueoftheshare-basedpayments,orisotherwisebeneficialtotheemployeeasmeasuredatthedateofmodification.Whereanequity-settledshare-basedawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheawardisrecognisedimmediately.Thisincludesanyawardwherenon-vestingconditionswithinthecontrolofeithertheGrouportheemployeearenotmet.However,ifanewawardissubstitutedforthecancelledaward,andisdesignatedasareplacementonthedatethatitisgranted,thecancelledandnewawardsaretreatedasiftheywereamodificationoftheoriginalaward.Thecostofcash-settledtransactionsismeasuredatthefairvalueoftheliabilitywhichisdeterminedonthebasisofsharesorotherequityinstrumentsoftheGroup.Itisinitiallyrecognisedatthefairvalueonthegrantdateusingbinomialmodeltogetherwiththeconsiderationoftermsandconditionsonwhichtheequityinstrumentsaregranted.Iftherightsunderacash-settledshare-basedpaymentcouldvestimmediately,relatedcostsorexpensesatanamountequaltothefairvalueonthegrantdatearerecognised,withacorrespondingincreaseinliability.Iftherightsunderacash-settledshare-basedpaymentcouldnotvestuntilthecompletionofservicesforavestingperiod,oruntilachievementofaspecifiedperformancecondition,theGroupateachbalancesheetdateduringthevestingperiodrecognisestheservicesreceivedforthecurrentperiodasrelatedcostsandexpenses,withacorrespondingincreaseinliability,atanamountequaltothefairvalueoftheliabilitybasedonthebestestimateoftheoutcomeofvesting.Theliabilityismeasuredateachbalancesheetdateuptoandincludingthesettlementdate,withchangesinfairvaluerecognisedinprofitorloss.

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(31)RevenuerecognitionRevenuefromcontractswithcustomersisrecognisedwhentheGrouphasfulfilleditsperformanceobligationsinthecontracts,thatis,whenthecustomerobtainscontrolofrelevantgoodsorservices.Controlofrelevantgoodsorservicesreferstotheabilitytodirecttheuseofthegoods,ortheprovisionoftheservices,andobtainsubstantiallyalloftheremainingbenefitsfromthegoodsorservices.ContractsforsaleofgoodsThecontractsforthesaleofgoodsbetweentheGroupanditscustomerusuallyonlycontaintheperformanceobligationsforthetransferofgoods.TheGroupgenerallyrecognizesrevenueatthepointoftransferringthecontrolofgoodsonthebasisofacombinationofthefollowingfactors:thecurrentrighttocollectthegoods,thetransferofmajorrisksandbenefitsintheownershipofthegoods,andthetransferofthelegalownershipofthegoods,thetransferofphysicalassetsofthegoodsandthatthecustomershaveacceptedthegoods.ServiceContractsTheservicecontractsbetweentheGroupanditscustomersusuallyconsistofperformanceobligationssuchasstorageandlogisticsandsoon.AstheGroup'sperformanceofcontractsisatthesametimewhenthecustomerobtainsandconsumestheeconomicbenefitsoftheperformanceoftheGroup,andtheGrouphastherighttocollectreceivablesfromtheperformanceofcontactsthathasbeencompletedtodate,theGroupregardsitasacontractobligationoveraperiodoftime,exceptthattheprogressofperformancecannotbereasonablydetermined.TheGroupdeterminestheprogressoftheperformanceofcontractsinaccordancewiththeinputmethod.IftheprogressofperformanceofcontractscannotbereasonablydeterminedandthecostincurredbytheGroupisexpectedtobecompensated,therevenueisrecognisedonthebasisoftheincurredcostsuntiltheprogressofperformanceofcontactscanbereasonablymeasured.VariableconsiderationSomeoftheGroup'scontractswithcustomersincludingarrangementsofsalesrebates(listitemsinaccordancewiththecustomer’sactualconditions,suchasearlycompletionawardsorothers)resultinvariableconsideration.TheGroupdeterminesthebestestimateofvariableconsiderationbyusingtheexpectedvaluemethodorthemostlikelyamountmethod.However,thetransactionpriceincludingvariableconsiderationisonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.ConsiderationpayabletocustomersWhereconsiderationispayablebytheGrouptoacustomer,suchconsiderationpayableshallbedeductedagainstthetransactionprice,andagainstcurrentrevenueupontherecognitionofrevenueorthepaymentof(orthecommitmenttopay)theconsiderationtothecustomer(whicheverislater),saveforconsiderationpayabletothecustomerforthepurposeofacquiringfromthecustomerotherclearlyseparableproducts.

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(31)Revenuerecognition(Continued)ReturnclausesInconnectionwithsaleswithareturnclause,revenueisrecognisedaccordingtotheamountofconsiderationitexpectstobeentitledtoforthetransfertoacustomerwhenthecustomeracquirescontroloftherelevantproducts.Amountsexpectedtoberefundedforthereturnofsalesarerecognisedasliabilities.Atthesametime,thebalanceofthecarryingvalueoftheproductexpectedtobereturnedupontransferlessexpectedcostsfortherecallofsuchproduct(includinganimpairmentlossoftherecalledproduct)shallberecognisedasanasset(i.e.costofreturnreceivables),andthenetamountofthecarryingvalueofthetransferredproductuponthetransferlesstheaforesaidassetcostshallbetransferredtocost.Ateachbalancesheetdate,theGroupreassessesthefuturereturnofsalesandremeasurestheaboveassetsandliabilities.SignificantfinancingcomponentWhereacontractcontainsasignificantfinancingcomponent,theGroupdeterminestransactionpricesbasedonamountspayableassumedtobesettledincashbycustomersimmediatelyupontheacquisitionofcontrolovertheproducts.Thedifferencebetweensuchtransactionpriceandcontractconsiderationisamortisedoverthecontractperiodusingtheeffectiveinterestratemethodbasedonaratiothatdiscountsthenominalcontractualconsiderationtothecurrentsellingpriceoftheproducts.TheGroupshallnotgiveconsiderationtoanysignificantfinancingcomponentinacontractifthegapbetweenthecustomer’sacquisitionofcontrolovertheproductsandpaymentofconsiderationisexpectedtobelessthan1year.WarrantyclausesTheGroupprovidesqualityassuranceforproductssoldandassetsbuiltinaccordancewithcontracttermsandlawsandregulations.TheaccountingtreatmentofqualityassuranceintheformofwarrantyassuringcustomersproductssoldareincompliancewithrequiredstandardsissetoutinNoteV.36.WheretheGroupprovidesaservicewarrantyforastandaloneserviceinadditiontotheassuranceofcomplianceofproductswithrequiredstandards,suchwarrantyistreatedasastand-alonecontractualperformanceobligation,andaportionofthetransactionpriceshallbeallocatedtotheservicewarrantybasedonapercentageofthestand-alonepricefortheprovisionoftheproductandservicewarranty.Whenassessingwhetherawarrantyisrenderingastand-aloneserviceinadditiontoprovidingguaranteetocustomersthatallsoldgoodsareincompliancewithrequiredstandards,theGroupwillconsiderwhetherornotsuchwarrantyisastatutoryrequirement,thetermofthewarrantyandthenatureoftheGroup’sundertakingtoperformitsobligations.RewardpointsprogramTheGroupgrantsrewardpointstocustomerswhensellinggoods.CustomerscanuserewardpointstoredeemfreeordiscountedgoodsprovidedbytheGroup.Thisrewardpointsprogramprovidessignificantrightstocustomers,andtheGroupconsidersitasanindividualperformanceobligation,andapportionspartofthetransactionpricestorewardpointsbasedonpricingofgoodsorserviceswithwarrantyclauses.Revenueisrecognisedwhencustomersobtaingoodsredeemedorwhenrewardpointsexpire.

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(31)Revenuerecognition(Continued)Principalresponsibleperson/proxyForgoodsorotherassetsobtainedfromathirdpartywhichweretransferredlatertocustomers,theGrouphastherighttodecide,independently,thepricingofgoods.ThismeansthattheGrouphasobtainedcontroloverrelatedgoodsbeforetransferringtocustomers.Therefore,theGroupistheprincipalresponsibleperson,andrevenueisrecognisedbasedonthetotalamountofconsiderationreceivedorreceivable.Otherwise,theGroupisproxy,andrevenueisrecognisedbasedonexpectedcommission.Thisamountshouldbethetotalamountofconsiderationreceivedorreceivablenetoftheamountpayabletootherparties,orbasedonthefixedamountorpercentage.

(32)GovernmentgrantsGovernmentgrantsarerecognisedwhenallattachingconditionswillbecompliedwithandthegrantswillbereceived.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue;iffairvalueisnotreliablydeterminable,itismeasuredatanominalamount.Governmentgrantsrelatedtoassetsrefertogovernmentassetswhicharegrantedtoenterprisesforthelong-termassetsformedbyacquisition,constructionorinothermanners.Governmentgrantsrelatedtoincomerefertogovernmentgrantsotherthanthoserelatedtoassets.Agovernmentgrantrelatedtoincomeisaccountedforasfollows:(i)ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognisedasdeferredincome,andreleasedinprofitorlossoroffsetagainstrelatedexpensesovertheperiodsinwhichtherelatedcostsarerecognised;or(ii)ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,itisrecognisedimmediatelyinprofitorlossoroffsetagainstrelevantexpenses.Agovernmentgrantrelatingtoanassetshallbeoffsetagainstthecarryingamountsofrelevantassets,orrecognisedasdeferredincomeandamortisedinprofitorlossovertheusefullifeoftherelatedassetbyannualinstalmentsinasystematicandrationalway(however,agovernmentgrantmeasuredatanominalamountisrecogniseddirectlyinprofitorloss).Wheretheassetsaresold,transferred,retiredordamagedbeforetheendoftheirusefullives,therestoftheremainingdeferredincomeisreleasedtoprofitorlossfortheperiodinwhichtherelevantassetsaredisposedof.

(33)IncometaxIncometaxcomprisescurrentanddeferredtax.Incometaxisrecognisedasincomeorexpenseinprofitorloss,orrecogniseddirectlyinequityifitarisesfromabusinesscombinationorrelatestoatransactionoreventwhichisrecogniseddirectlyinequity.CurrenttaxliabilitiesorassetsarisingfromthecurrentandpriorperiodsattheamountexpectedtobepaidbytheGrouporreturnedbythetaxauthoritycalculatedaccordingtorelatedtaxlaws.Deferredtaxisprovidedusingthebalancesheetliabilitymethod,onalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts,andtemporarydifferencesbetweenthetaxbasesandthecarryingamountsoftheitems,whichhaveataxbaseaccordingtorelatedtaxlawsbutarenotrecognisedasassetsandliabilities.

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(33)Incometax(Continued)Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:

(1)whenthetaxabletemporarydifferencearisesfromtheinitialrecognitionofgoodwill,oranasset

orliabilityinatransactionthatisnotabusinesscombinationand,atthetimeoftransaction,affectsneitheraccountingprofitnortaxableprofitorloss;and

(2)inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,

associatesandjointventures,whenthetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.Deferredtaxassetsarerecognisedforalldeductibletemporarydifferences,andthecarryforwardofunusedtaxlossesandanyunusedtaxcredits.Deferredtaxassetsarerecognisedtotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,thecarryforwardofunusedtaxlossesandunusedtaxcreditscanbeutilised,except:

(1)whenthedeductibletemporarydifferencearisesfromtheinitialrecognitionofanassetor

liabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss;and

(2)inrespectofthedeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,

associatesandjointventures,deferredtaxassetsareonlyrecognisedtotheextentthatitisprobablethatthetemporarydifferenceswillbereversedintheforeseeablefutureandtaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilisedinthefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedortheliabilityissettled,inaccordancewiththerequirementsoftaxlaws.ThemeasurementofdeferredtaxassetsanddeferredtaxliabilitiesreflectsthetaxconsequencesthatwouldfollowfromthemannerinwhichtheGroupexpects,atthebalancesheetdate,torecovertheassetsorsettletheliabilities.Thecarryingamountofdeferredtaxassetsisreviewedatthebalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailableinfutureperiodstoallowthedeferredtaxassetstobeutilised.Unrecogniseddeferredtaxassetsarereassessedatthebalancesheetdateandarerecognisedtotheextentthatithasbecomeprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettoberecovered.DeferredtaxassetsanddeferredtaxliabilitiesareoffsetifandonlyiftheGrouphasalegallyenforceablerighttosetoffcurrenttaxassetsandcurrenttaxliabilities,andthedeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxliabilitiesandassetsonanetbasis,ortorealisetheassetsandsettletheliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxliabilitiesorassetsareexpectedtobesettledorrecovered.

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(34)LeaseIdentificationofleasesAtinceptionofacontract,theGroupassesseswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theGroupassesseswhether,throughouttheperiodofuse,thecustomerhasbothoftherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedassetandtherighttodirecttheuseoftheidentifiedasset.IdentificationofseparateleasecomponentsForacontractthatcontainsmultipleseparateleasecomponents,theGroupseparatesthecomponentsofthecontractandaccountsforeachseparateleasecomponent.Therighttouseanunderlyingassetisaseparateleasecomponentifboth:

(1)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwithother

resourcesthatarereadilyavailabletothelessee;and

(2)theunderlyingassetisneitherhighlydependenton,norhighlyinterrelatedwith,theother

underlyingassetsinthecontract.Separatingleasecomponentsandnon-leasecomponentsForacontractthatcontainsleasecomponentsandnon-leasecomponents,theGroupaccountsforleasecomponentsandnon-leasecomponentsseparatelyasalessororalessee.AssessmentoftheleasetermTheleasetermisthenon-cancellableperiodofaleaseforwhichtheGrouphastherighttouseanunderlyingasset.IftheGrouphasanoptiontoextendthelease,thatis,theGrouphastherighttoextendthelease,andisreasonablycertaintoexercisethatoption,theleasetermalsoincludesperiodscoveredbyanoptiontoextendthelease.IftheGrouphasanoptiontoterminatethelease,thatis,theGrouphastherighttoterminatethelease,butisreasonablycertainnottoexercisethatoption,theleasetermincludesperiodscoveredbyanoptiontoterminatethelease.TheGroupreassesseswhetheritisreasonablycertaintoexerciseanextensionoption,purchaseoption,ornottoexerciseaterminationoption,upontheoccurrenceofeitherasignificanteventorasignificantchangeinthecircumstancesthatiswithinthecontroloftheGroupandaffectswhethertheGroupisreasonablycertaintoexerciseanoptionnotpreviouslyincludedinitsdeterminationoftheleaseterm.AsleaseeTheaccountingtreatmentoftheGroupasleasepleaserefertoNote.III.22andNoteIII.28.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(34)Leases(Continued)LeasemodificationsLeasemodificationisachangeinthescopeofalease,ortheconsiderationforalease,thatwasnotpartoftheoriginaltermsandconditionsofthelease,forexample,addingorterminatingtherighttouseoneormoreunderlyingassets,orextendingorshorteningthecontractualleaseterm.TheGroupaccountsforaleasemodificationasaseparateleaseifboth:

(1)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore

underlyingassets;and

(2)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone

pricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepricetoreflectthecircumstancesoftheparticularcontract.Foraleasemodificationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodificationtheGroupremeasurestheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm,orthelessee’sincrementalborrowingrateattheeffectivedateofthemodification,iftheinterestrateimplicitintheleasecannotbereadilydetermined.Foraleasemodificationthatisnotaccountedforasaseparatelease,theGroupaccountsfortheremeasurementoftheleaseliabilityby:

(1)decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfulltermination

oftheleaseforleasemodificationsthatdecreasethescopeofthelease,andrecognisingthegainorlossrelatingtothepartialorfullterminationoftheleaseinprofitorloss;or

(2)makingacorrespondingadjustmenttotheright-of-useassetforallotherleasemodifications.Short-termleasesandleasesoflow-valueassetsTheGroupconsidersaleasethat,atthecommencementdateofthelease,hasaleasetermof12monthsorless,anddoesnotcontainsanypurchaseoptionasashort-termlease;andaleaseforwhichthevalueoftheindividualunderlyingassetisnotmorethanRMB40,000whenitisnewasaleaseoflow-valueassets.IftheGroupsubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.TheGroupdoesnotrecognisetheright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassets.TheGrouprecognisesleasepaymentsonshort-termleasesandleasesoflow-valueassetsinthecostsoftherelatedassetorprofitorlossonastraight-linebasisovertheleaseterm.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(34)Leases(Continued)RentconcessionsunderCOVID-19Forrentreductions,suchasrentreductions,deferredpayments,etc.,directlycausedbytheCOVID-19epidemic,theGroupandthelessorhavereachedanexistingleasecontract,andmeetthefollowingconditionsatthesametime,theGroupadoptsasimplifiedmethodforleases:

(1)Theleaseconsiderationaftertheconcessionisreducedorbasicallyunchangedfromthatbeforetheconcession;

(2)TheconcessionisonlyfortheamountofleasepaymentspayablebeforeJune30,2022;

(3)Aftercomprehensivelyconsideringqualitativeandquantitativefactors,itisdeterminedthattherearenomajorchangesinothertermsandconditionsofthelease.TheGroupdoesnotevaluatewhetherthereisaleasechange,andcontinuestocalculatetheinterestexpenseoftheleaseliabilitybasedonthesamediscountrateasbeforethereductionandincludedinthecurrentprofitandloss,andcontinuestodepreciatetheright-of-useassetinthesamewayasbeforethereduction.Forrentreductionorexemption,theGroupregardsthereducedrentasavariableleasepayment.Whenaconcessionagreementisreachedtoreleasetheoriginalrentpaymentobligation,theundiscountedcashamountwillbeusedtooffsettherelevantassetcostsorexpenses,andtheleaseliabilitywillbeadjustedaccordingly;Forthedelayedpaymentofrent,theGroupwilloffsettheleaseliabilityconfirmedinthepreviousperiodwhentheactualpaymentismade.AslessorAleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset,exceptthataleaseisclassifiedasanoperatingleaseattheinceptiondate.TheGroup,asanintermediatelessor,classifiesthesubleasebyreferencetotheright-of-useassetarisingfromtheheadlease.AslessorofanoperatingleaseRentincomeunderanoperatingleaseisrecognisedonastraight-linebasisovertheleaseterm,throughprofitorloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleasereceivablesarechargedtoprofitorlossasincurred.TheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(35)Othersignificantaccountingpoliciesandaccountingestimates

1)Medicalreservefundsandspeciallyapprovedreservingmaterials

MedicalreservefundsrefertothefundsappropriatedbytheStateforthereserveofmaterialsforspecifiedpurposestocopewithmajordisasters,epidemicsituations,firstaidandotheremergencies,etc.Speciallyapprovedreservingmaterialsrefertothemedicalcommoditiesrequiredbythegovernmenttodealwithemergenciessuchasepidemicsituations,firstaidandlocalcommondiseases.AccordingtotheregulationsofCNPGC,theGroup,asanenterpriseundertakingthetaskofspeciallyapprovedreservingmaterialsreserve,obtainsthemedicalreservefundsprovidedbythePRCgovernment,whichappropriatedtothelocalgovernmentandCNPGC.Themedicalreservefundsreceivedviathosepartiesarerecognisedasothernon-currentliabilities.Inthemeantime,theGovernmentofGuangdongProvinceandGuangxiProvincedesignatedSinopharmHoldingGuangzhouCo.,Ltd.(“SinopharmGuangzhou”)anditssubsidiaries,SinopharmHoldingGuangxiCo.,Ltd.(“SinopharmGuangxi”)anditssubsidiariestoundertakethestorage,allocationandsupplyofpharmaceuticalcommoditiesrequiredbymajordisasters,epidemicsituations,firstaidandotheremergenciesaswellaslocalcommondiseasesinGuangdongandGuangxiZhuangAutonomousRegion.Accordingtothereserveplan(varietyandquantity)ofthelocalgovernmentandCNPGC,theGroupreservesthecorrespondingspeciallyapprovedreservingmaterials,implementsdynamicmanagementandrecognisesthemasothernon-currentassets.

2)DividenddistributionCashdividenddistributionisrecognisedasaliabilityintheperiodinwhichitisapprovedbyshareholdersattheannualshareholders’meeting.

3)FairvaluemeasurementAteachbalancesheetdate,theGroupmeasuresthefairvalueofequityinstrumentinvestments.Fairvaluemeansthepricereceivablefromthedisposalofanassetorrequiredtobepaidforthetransferofaliabilityinanorderlytransactionincurredbymarketparticipantsonthemeasurementdate.TheGroupmeasuresassetsorliabilitiesatfairvaluewiththeassumptionthattheorderlytransactionofassetdisposalorthetransferofliabilitiestakesplaceinthemajormarketfortherelevantassetsorliabilities.Wherethereisnomajormarket,theGroupassumesthatsuchtransactiontakesplaceinthemostfavourablemarketfortherelevantassetsorliabilities.Themajormarket(ormostfavourablemarket)isatradingmarketwhichtheGrouphasaccesstoonthemeasurementdate.TheGroupadoptsassumptionsusedbymarketparticipantswhentheypricetheassetorliabilitywiththeaimofmaximisingitseconomicbenefits.Themeasurementofnon-financialassetsmeasuredatfairvalueshouldtakeintoaccounttheabilityofmarketparticipantstoutilisetheassetinthebestwayforgeneratingeconomicbenefits,ortheabilitytodisposeofsuchassettoothermarketparticipantswhoareabletoutilisetheassetinthebestwayforgeneratingeconomicbenefits.TheGroupadoptsvaluationtechniquesthatareappropriateinthecurrentcircumstancesandsupportedbysufficientusabledataandotherinformation.Observableinputwillbeusedfirstandforemost.Unobservableinputwillonlybeusedwhenitisnotpossibleorpracticabletoobtainobservableinput.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(35)Othersignificantaccountingpoliciesandaccountingestimates(Continued)

3)Fairvaluemeasurement(Continued)Thefairvaluehierarchyinwhichanassetorliabilityismeasuredordisclosedinthefinancialstatementsatfairvaluewillbedeterminedonthebasisofthelowestlevelofinputwhichissignificantforthefairvaluemeasurementasawhole.Inputatthefirstlevelrepresentsunadjustedquotedpricesinanactivemarketfortheacquisitionofthesameassetorliabilityonthemeasurementdate.Inputatthesecondlevelrepresentsdirectlyorindirectlyobservableassetsorliabilitiesapartfrominputatthefirstlevel.Inputatthethirdlevelrepresentsunobservableinputfortheassetorliability.Ateachbalancesheetdate,theGroupreassessesassetsandliabilitiesmeasuredatfairvalueonanongoingbasisrecognisedinthefinancialstatementstodeterminewhethertheleveloffairvaluemeasurementshouldbechanged.

4)SegmentinformationTheGroupidentifiesoperatingsegmentsbasedontheinternalorganizationstructure,managementrequirementsandinternalreportingsystem,anddisclosessegmentinformationofreportablesegmentswhichisdeterminedonthebasisofoperatingsegments.AnoperatingsegmentisacomponentoftheGroupthatsatisfiesallofthefollowingconditions:(1)thecomponentisabletoearnrevenuesandincurexpensesfromitsordinaryactivities;(2)thecomponent’soperatingresultsareregularlyreviewedbytheGroup’smanagementtomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformance,and(3)forwhichtheinformationonfinancialposition,operatingresultsandcashflowsisavailabletotheGroup.Iftwoormoreoperatingsegmentshavesimilareconomiccharacteristicsandsatisfycertainconditions,theyareaggregatedintoonesingleoperatingsegment.

5)SignificantaccountingjudgementsandestimatesThepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenue,expenses,assetsandliabilities,andtheiraccompanyingdisclosures,andthedisclosureofcontingentliabilitiesatthebalancesheetdate.Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountsoftheassetsorliabilitiesaffectedinthefuture.JudgementsIntheprocessofapplyingtheGroup'saccountingpolicies,managementhasmadethefollowingjudgementswhichhaveasignificanteffectontheamountsrecognisedinthefinancialstatements:

Operatingleases-theGroupaslessorTheGrouphasenteredintoleaseagreementsonitsinvestmentpropertyportfolio.TheGrouphasdeterminedtheseleasestobeoperatingleases,basedonanevaluationofthetermsandconditionsoftheagreements,thatitretainssubstantiallyallthesignificantrisksandrewardsofownershipoftheseproperties.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(35)Othersignificantaccountingpoliciesandaccountingestimates(Continued)

5)Significantaccountingjudgementsandestimates(Continued)Judgements(Continued)BusinessmodelsTheclassificationoffinancialassetsatinitialrecognitiondependsontheGroup'sbusinessmodelformanagingfinancialassets.Whendeterminingthebusinessmodel,theGroupconsidersthemethodstoincludeevaluationandreportfinancialassetperformancetokeymanagement,therisksaffectingtheperformanceoffinancialassetsandtheriskmanagement,andthemannerinwhichtherelevantmanagementreceivesremuneration.Whenassessingwhethertheobjectiveistocollectcontractualcashflows,theGroupneedstoanalyseandjudgethereason,timing,frequencyandvalueofthesalebeforethematuritydateofthefinancialassets.ContractualcashflowcharacteristicsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristics,andthejudgementsonwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,includingwhenassessingthemodificationofthetimevalueofmoney,thejudgementonwhetherthereisanysignificantdifferencefromthebenchmarkcashflowandwhetherthefairvalueoftheprepaymentfeaturesisinsignificantforfinancialassetswithprepaymentfeatures,etc.EstimationuncertaintyThekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthefutureaccountingperiods,aredescribedbelow.ImpairmentoffinancialinstrumentsTheGroupusestheexpectedcreditlossmodeltoassesstheimpairmentoffinancial.TheGroupisrequiredtoperformsignificantjudgementandestimationandtakeintoaccountallreasonableandsupportableinformation,includingforward-lookinginformation.Whenmakingsuchjudgementsandestimates,theGroupinferstheexpectedchangesinthedebtor'screditriskbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisksandotherfactors.Thedifferentestimatesmayimpacttheimpairmentassessment,andtheprovisionforimpairmentmayalsonotberepresentativeoftheactualimpairmentlossinthefuture.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(34)Othersignificantaccountingpoliciesandaccountingestimates(Continued)

5)Significantaccountingjudgementsandestimates(Continued)Estimationuncertainty(Continued)Impairmentofnon-currentassetsotherthanfinancialassets(otherthangoodwill)TheGroupassesseswhetherthereareanyindicationsofimpairmentforallnon-currentassetsotherthanfinancialassetsatthebalancesheetdate.Intangibleassetswithindefiniteusefullivesaretestedforimpairmentannuallyandatothertimeswhensuchanindicationexists.Othernon-currentassetsotherthanfinancialassetsaretestedforimpairmentwhenthereareindicationsthatthecarryingamountsmaynotberecoverable.Animpairmentexistswhenthecarryingamountofanassetorassetgroupexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromit.Thecalculationofthefairvaluelesscostsofdisposalbasedonavailabledatafrombindingsalestransactionsinanarm’slengthtransactionofsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheassets.Whenthecalculationsofthepresentvalueofthefuturecashflowsexpectedtobederivedfromanassetorassetgroupareundertaken,managementmustestimatetheexpectedfuturecashflowsfromtheassetorassetgroupandchooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.FurtherdetailsareincludedinNoteV.12/13/14/15/16.ImpairmentofgoodwillTheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheassetgroups(setsofassetgroups)towhichthegoodwillisallocated.EstimatingthepresentvaluerequirestheGrouptomakeanestimateoftheexpectedfuturecashflowsfromtheassetgroups(setsofassetgroups)andalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.FurtherdetailsareincludedinNoteV.18.DeferredtaxassetsDeferredtaxassetsarerecognisedforallunusedtaxlossestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.FairvalueofunlistedequityinvestmentsTheunlistedequityinvestmentshavebeenvaluedbasedontheexpectedcashflowsdiscountedatcurrentratesapplicableforitemswithsimilartermsandriskcharacteristics.ThisvaluationrequirestheGrouptomakeestimatesaboutexpectedfuturecashflows,creditrisk,volatilityanddiscountrates,andhencetheyaresubjecttouncertainty.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(34)Othersignificantaccountingpoliciesandaccountingestimates(Continued)

5)Significantaccountingjudgementsandestimates(Continued)Estimationuncertainty(Continued)LoyaltypointsTheGroupmakesreasonableestimateofthestand-alonesellingpriceoftheloyaltypointsbytakingintoaccountallrelevantinformation,suchasthestand-alonesellingpricesforthecustomertoacquireadditionalfreegoodsorservicesorthediscountsenjoyedbythecustomerusingtheloyaltypointsandthepossibilityforthecustomertoexercisetheredemptionright.TheGroupconsidersthelikelihoodforthecustomertoexercisetheredemptionrightbasedonthehistoricaldataofpointredemption,thecurrentpointredemptionandthefuturechangesforthecustomer,thefuturetrendofthemarketandotherfactors.TheGroupre-evaluatesthestand-alonesellingpriceofloyaltypointsatleastoneachbalancesheetdateanddeterminesthetransactionpricetobeallocatedtotheloyaltypointsbasedonthestand-alonesellingpriceofthere-evaluatedloyaltypoints.SaleswitharightofreturnTheGroupmakesreasonableestimateofagroupofcontractswithsimilarcharacteristicsaccordingtothesalesreturnhistoricaldata,thecurrentsalesreturnsituation,aswellascustomerchanges,marketchangesandotherrelevantinformation.Estimatesoftheexpectedreturnratemaynotberepresentativeoftheactualreturnsinthefuture.TheGroupre-evaluatesthereturnrateatleastoneachbalancesheetdateandupdatesthemeasurementoftherefundliabilitiesandtheright-of-returnassetsbasedonthere-evaluatedreturnrate.WarrantiesTheGroupmakesreasonableestimateofthewarrantyrateofagroupofcontractswithsimilarcharacteristicsbasedonhistoricalwarrantydata,currentwarranty,aswellasallrelevantinformationsuchasproductimprovements,marketchanges,etc.Estimatesoftheexpectedwarrantyratemaynotberepresentativeoftheactualwarrantyrateinthefuture.TheGroupre-evaluatesthewarrantyrateatleastoneachbalancesheetdateandupdatesthemeasurementoftheprovisionsbasedonthere-evaluatedwarrantyrate.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(34)Othersignificantaccountingpoliciesandaccountingestimates(Continued)

5)Significantaccountingjudgementsandestimates(Continued)Estimationuncertainty(Continued)AssessmentofconstrainsonvariableconsiderationTheGroupestimates,withinareasonablequantity,theamountofvariableconsiderationthatmayoccurandthelikelihoodbytakingintoaccountallreasonablyavailableinformation,includinghistoricalinformation,currentinformation,andpredictiveinformation.TheGroupincludesinthetransactionpricesomeorallofanamountofvariableconsiderationestimatedonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Inassessingwhetheritishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccuroncetheuncertaintyrelatedtothevariableconsiderationissubsequentlyresolved,theGroupconsidersboththelikelihoodandthemagnitudeoftherevenuereversal.Oneachbalancesheetdate,theGroupupdatestheestimatedtransactionprice(includingupdatingitsassessmentofwhetheranestimateofvariableconsiderationisconstrained)toreflectthecircumstancespresentattheendofthereportingperiodandthechangesincircumstancesduringthereportingperiod.Lessee’sincrementalborrowingrateIftheinterestrateimplicitintheleasecannotbereadilydetermined,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsdiscountedusingthelessee’sincrementalborrowingrate.Accordingtotheeconomicenvironment,theGrouptakestheobservableinterestrateasthereferencebasisfordeterminingtheincrementalborrowingrate,thenadjuststheobservableinterestratebasedonitsowncircumstances,underlyingassets,leasetermsandamountsofleaseliabilitiestodeterminetheapplicableincrementalborrowingrate.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IVTaxation

1.Maincategoriesandratesoftaxes:

Categories

Taxbase

Taxrate

Valueaddedtax(“VAT”)	Taxablevalueaddedamount(TaxpayableiscalculatedbyusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod)	1%,3%,5%,6%,9%,13%
Citymaintenanceandconstructiontax	AmountofVAT	5%or7%
Corporateincometax(“CIT”)	Taxableincome	15%,20%or25%
Educationalsurcharge	AmountofVAT	3%
Localeducationalsurcharge	AmountofVAT	2%

2.Taxpreferences

In2021,accordingtothe"AnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationandtheNationalDevelopmentandReformCommissionontheContinuationoftheEnterpriseIncomeTaxPolicyfortheWesternDevelopment"(AnnouncementNo.23,2020oftheMinistryofFinanceandtheStateAdministrationofTaxationandtheNationalDevelopmentandReformCommission)andthe"AnnouncementontheContinuationoftheEnterpriseIncomeTaxPolicyfortheWesternDevelopment"(MinistryofFinanceAnnouncementNo.23of2020),thecompany’ssubsidiariesthatcanenjoythepreferentialcorporateincometaxrateof15%fortheencouragedindustriesinthewesternregioninclude:SinopharmHoldingGuangxiCo.,Ltd.(SinopharmGuangxi),SinopharmHoldingGuangxiLogisticsCo.,Ltd.(“SinopharmGuangxiLogistics”),SinopharmHoldingLiuzhouCo.,Ltd.(“SinopharmLiuzhou”),SinopharmHoldingBeihaiCo.,Ltd.(“SinopharmBeihai”),SinopharmHoldingGuilinCo.,Ltd.(“SinopharmGuilin”),SinopharmHoldingGuigangCo.,Ltd.(“SinopharmGuigang”),SinopharmHoldingYulinCo.,Ltd.(“SinopharmYulin”),SinopharmHoldingBaiseCo.,Ltd.(“SinopharmBaise”),SinopharmHoldingWuzhouCo.,Ltd.(“SinopharmWuzhou”),SinopharmHoldingQinzhouCo.,Ltd.(“SinopharmQinzhou”),SinopharmHoldingHezhouCo.,Ltd.(“SinopharmHezhou”),SinopharmHoldingGuangxiMedicalSupplyChainServiceCo.,Ltd.(“SinopharmGuangxiSupplyChain”),SinopharmHoldingXinjiangNew&SpecialMedicinesChainStoreCo.,Ltd.(“XinjiangNew&SpecialMedicines”),SinopharmHoldingGuodaInnerMongoliaPharmacyChainStoreCo.,Ltd.(“InnerMongoliaGuoda”),SinopharmHoldingGuodaHulunBuirPharmacyChainStoreCo.,Ltd.(“InnerMongoliaHulunBuirGuoda”),InnerMongoliaGuodaMedicineCo.,Ltd.(“InnerMongoliaGuodaMedicine”),NingxiaGuodaPharmacyChainStoreCo.,Ltd.(“NingxiaGuoda”),SinopharmHoldingGuodaGuangxiPharmacyChainStoreCo.,Ltd.(“GuangxiGuoda”),GuodaPharmacy(Pu’er)SongmaoCo.,Ltd.(“GuodaPu’erSongmao”)andSinopharmHoldingGuodaDrugStoreManchuriaCo.,Ltd.(“ManchuriaGuoda”).

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IVTaxation(Continued)

2.Taxpreferences(Continued)Taxpreferences(Continued)In2021,accordingtothe“NoticeontheImplementationofInclusiveTaxReductionandExemptionPoliciesforSmallandMicroEnterprises”(CaiShui[2019]No.13)andthe“AnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationontheImplementationofPreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualBusiness"(AnnouncementNo.12of2021oftheMinistryofFinanceandtheStateAdministrationofTaxation),subsidiariesoftheCompanylistedbelowqualifiedfortheconditionsofsmalllow-profitenterprises,whichthemonomertaxableincomeofthesesubsidiariesdoesnotexceedRMB3million.Hence,fortheportionofannualtaxableincomenotexceedingRMB1million,itshallbeincludedinthetaxableincomeby12.5%,andenterpriseincometaxshallbepaidattherateof20%;fortheportionofannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3million,itshallbeincludedinthetaxableincomeby50%,andenterpriseincometaxshallbepaidattherateof20%.TheCompany’ssubsidiarieswhichqualifiedfortheconditionsofsmalllow-profitenterprisesincludingShanghaiGuodaDongshengPharmacyCo.,Ltd.(“ShanghaiDongshengGuoda”),ShanghaiGuodaHaohaiPharmacyCo.,Ltd.(“ShanghaiHaohaiGuoda”),ShanghaiGuodaRuijingPharmacyCo.,Ltd.(ShanghaiRuijingGuoda”),ShanghaiGuodaDongxinPharmacyCo.,Ltd.(“ShanghaiDongxinGuoda”),SinopharmGuodaYongshengPharmacy(Shanghai)Co.,Ltd.(ShanghaiYongshengGuoda”),ZhejiangSinopharmPharmacyDongshanPharmacyCo.,Ltd.(“ZhejiangDongshanGuoda”),SinopharmHoldingGuodaPharmacyGuangzhouChainCo.,Ltd.(“GuodaGuangzhouChain”),TaishanSinopharmHoldingGuodaQunkangPharmacyChainStoreCo.,Ltd.(“TaishanQunkang”),SinopharmHoldingGuodaPharmacyYongxingtangChainStore(Chaoyang)Co.,Ltd.(”GuodaYongxingtang”),LiaoningGuodaMedicineCo.,Ltd.(“LiaoningMedicine”),ChangzhiGuodaWanminPharmacyChainStoreCo.,Ltd.(“ChangzhiWanmin”),SinopharmHoldingGuodaPharmacyBayannurCo.,Ltd.(“Bayannur”),SinopharmHoldingGuodaPharmacyUlanqabCo.,Ltd.(“InnerMongoliaWulanGuoda”),SinopharmHoldingBaiyiPharmacyGuangxiCo.,Ltd.(“SinopharmBaiyiPharmacy”),SinopharmAccord(Guangzhou)MedicineCo.,Ltd.(“GuangzhouMedicine”),ShanghaiForMeXuhuiPharmacyCo.,Ltd.(“ForMeXuhui”),BeijingGoldenElephantGuoxingPharmaceuticalCo.,Ltd.(“GoldenElephantGuoxing”),JilinYiheDrugStoreCo.,Ltd.(“JilinYihe”),GuangxiGuodaPharmaceuticalConsultingChainCo.,Ltd.(“GuangxiConsulting”),LiaoningGuodaHealthPharmacyCo.,Ltd.(“LiaoningHealthPharmacy”),LiaoningGuodaPharmacyChainCo.,Ltd.(“LiaoningGuodaPharmacy”),YanjiXiangheMedicineCo.,Ltd.(“YanjiXianghe”),InnerMongoliaChengdaFangyuanMedicineCo.,Ltd.(“InnerMongoliaChengdaFangyuanMedicine”)andJilinChengdaFangyuanMedicineCo.,Ltd.(“JilinChengdaFangyuanMedicine”).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements

1.Cashandbankbalances

30June2021

31December2020

Cashonhand	4,898,795.54		6,707,125.90
Cashatbanks	5,533,553,362.08		5,398,406,132.09
Cashandcashequivalent	5,532,707,421.89		5,398,406,132.09
Undueinterestreceivable(Note1)	845,940.19		-

Othermonetaryfunds(Note2)

338,186,269.94

593,091,037.88

5,876,638,427.56

5,998,204,295.87

2.Notesreceivable

Note1:Currentdepositsearninterestattheratebasedoncurrentdepositinterestrates.Maturitiesofshort-termtimedepositsrangefrom1monthto6monthsdependingonthefundarrangementsoftheGroup,andthedepositsearninterestattherespectivedepositrates.Thematuritiesofbanknoticedepositsare7daysdependingonthefundarrangementoftheGroup,andthedepositsearninterestattherespectivedepositrates.Note2:Othermonetaryfundsat30June2021include:DepositsforbankacceptancebillsRMB236,042,026.02(31December2020:RMB492,734,978.75),freezingoffundsRMB67,280,993.60(December31,2020:

RMB66,956,993.60),MedicalreservefundsRMB27,515,383.35(December31,2020:RMB27,465,331.50),fixeddepositRMB3,193,851.81(December31,2020:RMB3,167,718.14),andotherdepositsRMB4,154,015.16(December31,2020:RMB2,766,015.89).Thenotesreceivablebycategory

Thenotesreceivablebycategory30June2021

30June2021

31December2020

Commercialacceptancebills

606,070,192.39

622,115,477.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

2.Notesreceivable(Continued)

Thecarryingamountofnotesreceivablethataffectedthechangesinprovisionthisyearisasfollows:

30June2021

30June2021						31December2020
Carryingamount			Baddebtprovisions		BookValue	Carryingamount			Baddebtprovisions		BookValue
Amount	Proportion		Amount	Proportion		Amount	Proportion		Amount	Proportion

Itemsforwhichprovisionforbaddebtsisrecognisedindividually	10,301,666.47	1.70%		585,955.98	5.69%	9,715,710.49	27,634,855.48	4.43%		1,479,520.32	5.35%	26,155,335.16
Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics)	596,354,481.90	98.30%		-	-	596,354,481.90	595,960,141.88	95.57%		-	-	595,960,141.88

606,656,148.37

100.00%

585,955.98

0.10%

606,070,192.39

623,594,997.36

100.00%

1,479,520.32

0.24%

622,115,477.04

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

2.Notesreceivable(Continued)

On30June2021,notesreceivablethatareindividuallyassessedforprovisionsareasfollows:

Carryingamount

Carryingamount

Baddebtprovision

Expectedcreditlossrate

Assessmentforimpairment

ClientA

723,189.59

2,972.46

0.41%

Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofcollection.

ClientB

9,578,476.88

582,983.52

6.09%

Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofcollection.

10,301,666.47

585,955.98

Provisionforbaddebtsinthecurrentperiodasfollows:

Currentchangeamount

	Currentchangeamount
	Openingbalance	Provision	Reversalintheyear	Write-offintheyear	Others	Closingbalance
Individualprovisionforbaddebts	1,479,520.32	-	(893,564.34)	-	-	585,955.98

1,479,520.32

-

(893,564.34)

-

-

585,955.98

ReceivablesfinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2021areasfollows:
	30June2021

	Derecognised		Notderecognised
Commercialacceptancebills	-		125,089.80

Attheendoftheperiod,thecompanytransferredtheacceptancenotestoaccountsreceivableduetothedrawer'sfailuretoperformthecontract:

Amounttransferredto

accountsreceivableattheendoftheperiod

Amounttransferredto

accountsreceivableattheendoftheperiodCommercialacceptancebills

Commercialacceptancebills

2,090,087.17

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable

(1)Theaccountsreceivablebycategory

30June2021

30June2021

31December2020

Grosscarryingamount

Provisionforbaddebt

Grosscarryingvalue

Grosscarryingamount

Provisionforbaddebt

Grosscarryingvalue

Amount

Proportion

Amount

Proportion

Amount

Proportion

Amount

Proportion

Itemsforwhichprovisionforbaddebtisrecognizedseparately	1,017,692,611.96	5.69%		(29,993,339.31)	2.95%	987,699,272.65		674,370,776.75	4.85%		(29,223,931.45)	4.33%	645,146,845.30
Inculdes：
Itemsforwhichprovisionforbaddebtisrecognizedbygroup	16,864,163,256.21	94.31%		(90,686,079.61)	0.54%	16,773,477,176.60		13,218,113,690.60	95.15%		(63,289,521.68)	0.48%	13,154,824,168.92
Includes:

17,881,855,868.17

100.00%

(120,679,418.92)

0.67%

17,761,176,449.25

13,892,484,467.35

100.00%

(92,513,453.13)

0.67%

13,799,971,014.22

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

(1)TheaccountsreceivablebycategoryAccountsreceivablethatareindividuallyassessedforprovisions

Accountsreceivablethatareindividuallyassessedforprovisions
	30June2021
	Carryingamount	Baddebtprovision	Proportion	Assessmentforimpairment

Receivableofmedicalinsurance	514,818,583.40	(6,606,210.91)	1.28%	Thereceivableofmedicalinsurancehaslower-tierdefaultrisk.
ClientA	11,559,178.29	(11,559,178.29)	100.00%	Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficultiesandrelatedtomultiplelawsuits,iswithlower-tierrecoverability.
ClientB	2,447,976.74	(2,447,976.74)	100.00%	Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring.
ClientC	2,365,253.03	(2,365,253.03)	100.00%	Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring.
Others	486,501,620.50	(7,014,720.34)	1.44%	Partofthereceivabletakeslongerthanusualtorecover,andhasriskofrecoverability.

1,017,692,611.96

(29,993,339.31)

-

Provisionforbaddebtsbyportfolio:
	30June2021

	Carryingamount	Baddebtprovision	Accrualproportion
Combinationbycreditriskcharacteristics	16,864,163,256.21	90,686,079.61	0.54%

Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss

30June2021

30June2021
Estimateddefaultamount	Expectedcreditlossinentirelifetime	Expectedcreditlossrate

Within1year	16,312,880,752.43	(40,974,307.84)	0.25%
1to2years	511,922,099.65	(34,341,536.99)	6.71%
2to3years	27,850,847.18	(7,831,498.28)	28.12%
Over3years	11,509,556.95	(7,538,736.50)	65.50%

16,864,163,256.21

(90,686,079.61)

0.54%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

(1)Theaccountsreceivablebycategory(Continued)Theaginganalysisofaccountsreceivables

Theaginganalysisofaccountsreceivables
	30June2021

Within1year	17,299,413,843.64
1to2years	515,740,902.78
2to3years	36,094,871.65
Over3years	30,606,250.10

(2)Changesinbaddebtprovision,recoveryorreverse

Baddebtprovisionforthecurrentperiod

17,881,855,868.17

Openingbalance

	Openingbalance	Amountchangesincurrentperiod				Closingbalance
		Increases	Reversal	write-off	Increasesinmerger
Accountsreceivablebaddebtprovision	92,513,453.13	38,699,564.83	(10,675,833.06)	(35,935.36)	178,169.38	120,679,418.92

ImportantrecoveredorreverseditemsofprovisionforindividuallyassessedbaddebtsfromJanuarytoJune2021arelistedbelow:

Recoveredorreversedamount

Recoveredorreversedamount

Methodofrecoveryorreversion

ClientA	62,252.15	Paymentcollection
ClientB	25,278.00	Paymentcollection
ClientC	19,152.28	Paymentcollection

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

(3)Accountsreceivableactuallywrittenoffinthecurrentperiod

Project

Writeoffamount

ClientA	35,935.36
	35,935.36

(4)Thetopfiveaccountsreceivableanalysedbycustomer

Amount

%ofthetotalaccountsreceivable

Baddebtprovisionamount

Top1Accountreceivable		250,098,236.84	1.40%	(920,455.72)
Top2Accountreceivable		248,454,363.20	1.39%	(1,958,560.00)
Top3Accountreceivable		209,855,263.24	1.17%	(1,432,489.42)
Top4Accountreceivable		184,205,023.09	1.03%	(1,592,971.29)
Top5Accountreceivable		161,208,692.82	0.90%	(426,533.84)

1,053,821,579.19

5.89%

(6,331,010.27)

(5)Accountsreceivablederecognizedduetothefinancialassetstransferred

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

4.Receivablefinancing

30June2021

31December2020

Bankacceptancebills

345,906,887.55

1,404,987,700.38

ReceivablefinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2021

30June2021

30June2021Derecognised

Derecognised

NotDerecognised

Bankacceptancebills

1,841,760,515.56

20,070,999.69

5.Advancestosuppliers

(1)	Theagingofadvancestosuppliers

30June2021		31December2020
Amount	%oftotalbalance	Amount	%oftotalbalance

Within1year	611,349,475.09	99.31%	480,215,111.42	99.98%
1to2years	4,253,441.22	0.69%	42,225.29	0.01%
2to3years	-	-	56,238.00	0.01%

615,602,916.31

100.00%

480,313,574.71

100.00%

Theillustrationofthereasonswhyadvancepaymentswithamorethanone-yearagingwhiletheamountsaresignificantnotsettledintime:

Nil.(2)

(2)	Thetopfiveadvancestosuppliersbycustomeron30June2021

Amount

Proportionoftotalbalance

Totalamountoftopfiveadvancestosuppliers

217,538,246.13

35.34%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables

30June2021

31December2020

Otherreceivables

662,274,841.26

535,228,747.69

(1)Otherreceivables(a)Categoryofotherreceivablesbynature

(a)Categoryofotherreceivablesbynature30June2021

30June2021

31December2020

Deposits	294,986,764.47	287,130,364.44
Receivableofpricereductioncompensationandpurchasingrebates	141,495,787.02	85,263,225.16
Receivableofthepharmaceuticalelectronictradingplatform	49,995,673.20	60,267,511.03
Entrustedborrowings	46,334,222.24	46,334,222.24
Pettycashadvancetoemployees	52,673,098.70	22,994,684.93
Receivableofequitytransactions	8,980,000.00	8,980,000.00
Receivableduefromrelatedparties	23,094,951.86	2,867,594.20
Others	115,368,379.05	90,580,362.96

732,928,876.54

604,417,964.96

(b)Changesinbaddebtprovision

Stage1

	Stage1	Stage2	Stage3
Baddebt	Expectedcreditlossesoverthenext12months	Entirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred)	Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred)	Total

Balanceat1January2021	-	7,305,149.90	61,884,067.37	69,189,217.27
Balanceat1January2021duringtheperiod
Provisionsduringtheperiod	-	2,441,341.87	171,144.99	2,612,486.86
Reversalduringtheperiod	-	(1,146,204.24)	(1,464.61)	(1,147,668.85)

Balanceat30June2021

-

8,600,287.53

62,053,747.75

70,654,035.28

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables(Continued)

Theaginganalysisofotherreceivableswasasfollows:

30June2021Within1year

Within1year	592,791,636.86
1to2years	57,692,718.34
2to3years	11,332,912.33
Over3years	71,111,609.01

732,928,876.54(c)Changesinbaddebtprovision,recoveryorreverse

(c)Changesinbaddebtprovision,recoveryorreverseProvisionforbaddebtsinthecurrentperiodasfollows:

Provisionforbaddebtsinthecurrentperiodasfollows:

Currentchangeamount

	Currentchangeamount
	Openingbalance	Provision	Reversalintheyear	Write-offintheyear	Other	Closingbalance
Provisionforimpairmentofotherreceivables	69,189,217.27	2,612,486.86	(1,147,668.85)	-	-	70,654,035.28

69,189,217.27

2,612,486.86

(1,147,668.85)

-

-

70,654,035.28

(d)Thetop5partiesthatowedthelargestamountsofotherreceivablebalances

Nature

Nature

Amount

Age

%oftotalamount

Provisionofbaddebt

SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.(Note1)	Entrustedborrowings	46,334,222.24	Over3years	6.32%	46,334,222.24
GuangdongPharmaceuticalelectronictradingplatform	Pharmaceuticaltradingplatformrepaymentnotyetcleared	36,837,497.58	Within1year	5.03%	-
ShenzhenAdministrationofsocialinsurancefund	Deposit	20,029,963.00	Within1year	2.73%	-
TCM-IntegratedCancerCenterofSouthernMedicalUniversity	Depositoflogisticsextensionservicesproject	20,000,000.00	Over3years	2.73%	-
BayerHealthcareCo.Ltd.	Purchaserebatesreceivableandpricereductioncompensation	16,117,671.62	Within1year	2.20%	-

139,319,354.44

19.01%

46,334,222.24

Note1：DuetothepoormanagementofZhijunSuzhou,thesolvencydecreasedandthecreditriskincreased.Basedontheprincipleofprudence,thegroupfullyaccruedthebaddebtprovisionfortheentrustedloanofRMB46,334,222.24.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

7.Inventories

(1)	Inventoriesbycategory

30June2021				31December2020
Bookvalue	Provisionfordeclinesinvalueofinventoriesandimpairmentofcontractperformancecosts	Netbookvalue		Bookvalue	Provisionfordeclinesinvalueofinventoriesorimpairmentofcontractperformancecosts	Netbookvalue

Rawmaterials	890,219.51	-	890,219.51		1,959,948.73	-	1,959,948.73
Workinprogress	133,216.20	-	133,216.20		244,341.19	-	244,341.19
Finishedgoods	7,228,118,772.03	(12,979,519.90)	7,215,139,252.13		6,292,866,195.61	(12,997,334.35)	6,279,868,861.26
Lowcostconsumables	3,495,930.78	-	3,495,930.78		2,937,523.28	-	2,937,523.28

7,232,638,138.52

(12,979,519.90)

7,219,658,618.62

6,298,008,008.81

(12,997,334.35)

6,285,010,674.46

(2)	Provisionfordeclinesinvalueofinventoriesandimpairmentofcontractperformancecosts

31December2020	Increases		Decreases		30June2021
	Provision	Additionduetocombination	Reversalorwrite-off	Others

Finishedgoods

12,997,334.35

5,022,800.14

314,857.50

(4,704,443.43)

(651,028.66)

12,979,519.90

In2021,duetotherecoveryofthevalueofsomeinventories,theprovisionforfallingpricewasRMB4,704,443.43(2020:RMB1,975,512.44),andtheprovisionforfallingpriceofinventorieswasRMB651,028.66(2020:RMB1,458,197.19).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

8.Contractassets

9.		31December2021				31December2020
		BookValue	Provision	NetBookValue		BookValue	Provision	NetBookValue

Medicaldevicesandequipmentguaranteefunds

17,144,247.25

78,141.72

17,066,105.53

15,195,530.95-

17,799.31

15,177,731.64-

Anaginganalysisofcontractassetswithprovisionforimpairmentareasfollows:

TheGroupsellsmedicaldevicesandequipmenttocustomersandprovidesrelevantinstallationservices,whichconstitutesasingleperformanceobligation.AfterthedeliveryofmedicaldevicesandequipmentbytheGroupandacceptancebycustomers,thecontrolrightsofgoodsaretransferred.TheGrouprecognisestherelevantincomeandtransferspartofthecontractconsiderationtoreceivables,andtheotherpartsareformedascontractassets.Aftertheequipmentisinstalledandtheagreedwarrantyperiodends,thecontractassetswillformanunconditionalrightofcollectionandbetransferredintoreceivables.30June2021

30June2021
Estimateddefaultamount	Expectedcreditlossinentirelifetime	Expectedcreditlossrate

Within1year

17,144,247.25

78,141.72

0.46%

Changesinprovisionforcontractassetsarepresentedasfollows:

		30June2021
Project	Provisionincurrentperiod	Reversalincurrentperiod	writeofff	Reason

Provisionforimpairmentofcontractassets

60,622.700

(280.29)

-

Provisionforbaddebtsofcontractassetsshallbemadeaccordingtoexpectedcreditlosses

9.Othercurrentassets

30June2021

31December2020

InputVATtobecredited	95,822,907.79		114,251,111.76
Corporateincometaxtobededucted	5,264,487.90		5,981,268.15
Others	498,534.36		850,483.54

101,585,930.05

121,082,863.45

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

10.Long-termequityinvestments

Investee	31December2020	Changesincurrentperiod				30June2021	Provisionforimpairment
		Profitoflossunderequitymethod	Othercomprehensiveincomeadjustment	Otherchangesinequity	Cashdividenddeclaredbyinvestee
Associates
ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”)（a）	322,696,745.87	34,596,706.61	-	-	-	357,293,452.48	-
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.(“ShanghaiBeiyi”)(b)	11,190,188.07	749,788.76	-	-	-	11,939,976.83	-
ShanghaiLiyiPharmacyCo.,Ltd.(“ShanghaiLiyi”)(c)	1,147,948.30	-	-	-	-	1,147,948.30	-
ShanghaiRenbeiPharmacyCo.,Ltd.(“ShanghaiRenbei”)(d)	2,465,103.92	-	-	-	-	2,465,103.92	-
DongyuanAccordPharmaceuticalChainCo.,Ltd.(“DongyuanAccord”)(e)		-	-	-	-	-	396,638.32
SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.(“GuangdongJienuo”)(f)	5,225,570.12	(749,864.47)	-	-	-	4,475,705.65	-
GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.(“GuangdongJianhui”)(g)	8,000,000.00	-	-	-	-	8,000,000.00	-
ZhijunSuzhou(h)		-	-	-	-	-	1,857,279.52
SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.(“SinopharmZhijun”)(i)	425,557,825.11	28,056,303.69	-	-	-	453,614,128.80	-
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.(“ZhijunTrade”)(i)	10,408,675.18	64,801.68	-	-	-	10,473,476.86	-
SinopharmGroupZhijun(Shenzhen)PingShanPharmaceuticalCo.,Ltd.(“ZhijunPingshan”)(i)	176,566,795.90	25,603,869.60	-	-	-	202,170,665.50	-
ShanghaiShyndecPharmaceuticalCo.,Ltd,(“SinopharmShyndec”)(i)	1,323,760,775.52	69,374,791.94	64,854.90	(460,868.29)	(16,714,220.20)	1,376,025,333.87	-

2,287,019,627.99

157,696,397.81

64,854.90

(460,868.29)

(16,714,220.20)

2,427,605,792.21

2,253,917.84

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

10.Long-termequityinvestments(Continued)(a)On4July1990,theGroupjointlyestablishedMainLuckPharmaceuticalwithMercianKabushikiKaishaandMainLifeCo.,Ltd.,subscribing35.19%,34.15%and30.66%ofshareholdings,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofMainLuckPharmaceuticalconsistedofsixdirectors,ofwhichtwowereappointedbytheGroup,accountingfor

33.33%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverMainLuckPharmaceutical,andthus,itwasconsideredasanassociateoftheGroup.(b)On26July1994,theGroupjointlyestablishedShanghaiBeiyiwithShanghaiBeiyi(Group)Co.,Ltd.andeightnaturalpersonsincludingFuchunZhu,withthesharepercentagesbeing26%,26%and48%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiBeiyiconsistedofsevendirectors,ofwhichtwowereappointedbytheGroup,accountingfor28.57%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverShanghaiBeiyi,andthus,itwasconsideredasanassociateoftheGroup.(c)On25November2003,theGroupjointlyestablishedShanghaiLiyiwithShanghaiPudongDistrictCentralHospitalandShanghaiLiyi,withthesharepercentagesbeing35%,35%and30%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiLiyiconsistedoffivedirectors,ofwhichtwowereappointedbytheGroup,accountingfor40.00%ofvotingrights.Therefore,theGrouphadsignificantinfluenceoverShanghaiLiyi,andthus,itwasconsideredasanassociateoftheGroup.(d)On5March2019,theGroupacquired30%sharesofShanghaiRenbei.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiRenbeiwascomposedofthreedirectors,oneofwhomwasappointedbytheGroup,accountingfor33.33%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverShanghaiRenbei,andthus,itisconsideredasanassociateoftheGroup.(e)In2007,DongyuanAccord,anassociateoftheGroup,operatedinpoorconditionsanditsfutureoperationwouldbesignificantlyuncertain,sotheGroupmadeafullprovisionforimpairmentofthelong-termequityinvestmentonit.(f)On23February2016,theGroupjointlyestablishedGuangdongJienuowithSinopharmJienuoMedicalTreatmentServiceCo.,Ltd.andGuangzhouJinluoInvestmentDevelopmentCo.,Ltd.,withthesharepercentagesbeing29%,51%and20%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJienuowascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverGuangdongJienuo,andthus,itisconsideredasanassociateoftheGroup.On25July2019,theGroup,togetherwiththecurrentshareholders,SinopharmJienuoMedicalTreatmentServiceCo.,Ltd.andFoshanJiejianchengfengMedicalEquipmentCo.,Ltd.,increasedthecapitalofGuangdongJienuoby29%,51%and20%accordingtotheshareholdingratiorespectively,andthetotalamountoftheincreasedcapitalwasRMB6million.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

10.Long-termequityinvestments(Continued)(g)On23November2018,theGroupjointlyestablishedGuangdongJianhuiwithGuangdongConstructionEngineeringGroupCo.,Ltd.,SuixiPeople'sHospitalandGuangdongJiankeArchitecturalDesignInstituteCo.,Ltd.,withthesharepercentagesbeing10%,79.90%,10%and0.10%,respectively.TheregisteredcapitalofthecompanywasRMB20,000thousand.On22March2019,theGroupcompletedtheinvestmentofRMB2,000thousand.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJianhuiwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverGuangdongJianhui,andthus,itisconsideredasanassociateoftheGroup.On30March2020,theGroupmadeanadditionalinvestmentofRMB6millioninGuangdongJianhuiaccordingtotheshareholdingratio.(h)TheGroupdisposedofits67%equityinterestofZhijunSuzhouinApril2016.Afterthedisposal,theGrouphelda33%equityinterestofZhijunSuzhou.AccordingtotheArticlesofAssociation,theboardofdirectorsofZhijunSuzhouwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20%ofvotingrights.Asaresult,theGrouphassignificantinfluenceoverZhijunSuzhou,andthus,itisconsideredasanassociateoftheGroup.In2019,onaccountofmismanagement,therewassignificantuncertaintyinthefutureoperationoftheGroup'saffiliatedenterprise,ZhijunSuzhou.Thus,theGroupmadefullprovisionforimpairmentofthelong-termequityinvestmentinZhijunSuzhou.(i)TheGroupsubscribed15.56%ofnewissuedsharesofSinopharmShyndec,arelatedparty,bytransferringtheproductiveassetsinPingshanbaseandits51%equityinterestofthreepharmaceuticalcompanies(SinopharmZhijun,ZhijunTrade,ZhijunPingshan)oftheGroupin2016,respectively.Afterthecompletionofthereorganization,ShyndecPharmaholdsa51%equityinterestofeachofthethreepharmaceuticalcompanies,andtheGroupholdsa49%equityinterestofeachofthethreepharmaceuticalcompanies,andtheyhavesignificantinfluenceoverthethreepharmaceuticalcompanies.Atthesametime,afterthecompletionofthereorganization,theGroupholdsa15.56%equityinterestofSinopharmShyndec.SinceSinopharmShyndecacquiredthesharesofsubsidiarieswithshare-basedpaymentinpreviousyears,asat30June2021,theGrouphelda16.28%equityinterestofSinopharmShyndec.SinopharmShyndecsetupaboardofdirectorsthatwasresponsiblefortheshareholders'meeting,withatotalofninemembers,amongwhich,onewasappointedbytheGroup.Eachdirectorshallrepresentonevoteforresolutionsoftheboard,accountingfor11.11%ofthevotingrights.TheGrouphassignificantinfluenceoverSinopharmShyndec.TheabovethreepharmaceuticalcompaniesandSinopharmShyndecareconsideredasassociatesoftheGroup.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

11.Otherequityinstrumentinvestment

30June2021

31December2020

SinopharmHealthOnlineCo.,Ltd.	67,056,227.40		67,056,227.40
SinopharmGuodaHubeiCo.,Ltd.	18,279,788.59		18,279,788.59
ShanghaiGuodaShuguangPharmacyCo.,Ltd.	8,242,076.02		8,242,076.02
ShanghaiGuorenPharmacyCo.,Ltd.	5,493,260.45		5,493,260.45
HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd.	416,987.82		416,987.82

99,488,340.28

99,488,340.28

单位：元

	Recognizeddividendincome	Accumulatedprofits	AccumulatedLoss	Amounttransferredfromothercomprehensiveincometoretainedearnings	Reasonsdesignatedtobemeasuredatfairvaluewithchangesincludedinothercomprehensiveincome	Reasonsfortransferofothercomprehensiveincometoretainedearnings
SinopharmHealthOnlineCo.,Ltd.	-	55,056,227.40	-	-	Nontradableequityinstruments
SinopharmGuodaHubeiCo.,Ltd.	2,280,159.50	17,279,788.59	-	-	Nontradableequityinstruments
ShanghaiGuodaShuguangPharmacyCo.,Ltd.	50,000.00	7,971,316.02	-	-	Nontradableequityinstruments
ShanghaiGuorenPharmacyCo.,Ltd.	-	5,393,260.45	-	-	Nontradableequityinstruments
HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd.	-	101,987.82	-	-	Nontradableequityinstruments
	2,330,159.50	85,802,580.28	-	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

12.Othernon-currentfinancialassets

30June2021

31December2020

Financialassetmeasuredatfairvaluethroughcurrentprofitorloss

117,974,908.51

120,972,350.24

.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

13.InvestmentpropertiesSubsequentmeasurementunderthecostmodel:

Buildingsandconstructions

Landuseright

Total

Originalcost
Openingbalance	225,645,845.78	20,988,818.44	246,634,664.22
Increaseamountincurrentperiod	1,137,337.42	-	1,137,337.42
Purchase	-	-	-
Transferfrominventories\fixedassets\constructioninprogress	1,137,337.42	-	1,137,337.42

Decreaseamountincurrentperiod	(3,881,175.93)	(841,319.61)	(4,722,495.54)
Transfertointangibleassets	-	(841,319.61)	(841,319.61)
Transfertofixedassets	(3,881,175.93)	-	(3,881,175.93)
Closingbalance	222,902,007.27	20,147,498.83	243,049,506.10

Accumulateddepreciationandamortization
Openingbalance	(109,976,379.20)	7,913,905.08	(117,890,284.28)
Increaseamountincurrentperiod	(3,206,808.84)	(88,519.70)	(3,295,328.54)
Provision	(2,810,737.39)	(88,519.70)	(2,899,257.09)
Transferfromfixedassets	(396,071.45)	-	(396,071.45)
Decreaseamountincurrentperiod	2,589,746.83	235,490.60	2,825,237.43
Transfertointangibleassets	-	235,490.60	235,490.60
Transfertofixedassets	2,589,746.83	-	2,589,746.83
Closingbalance	(110,593,441.21)	7,766,934.18	(118,360,375.39)

Provisionforimpairment
OpeningbalanceandClosingbalance	(1,300,000.00)	-	(1,300,000.00)

Carryingamount
Atendoftheperiod	111,008,566.06	12,380,564.65	123,389,130.71
Atbeginningoftheperiod	114,369,466.58	13,074,913.36	127,444,379.94

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets

30June2021

31December2020

Fixedassets

840,386,519.64

854,191,083.27

(1)	Conditionoffixedassets

	Buildingsandconstructions	Machineryandequipment	Motorvehicles	Officeequipments	Electronicequipments	Total
Originalcost
Openingbalance	704,639,396.43	305,450,662.64	96,751,717.47	365,642,213.00	121,068,984.00	1,593,552,973.54
Increaseamountincurrentperiod	4,138,624.70	14,781,603.50	10,636,685.33	16,626,307.17	25,827,199.04	72,010,419.74
Purchase	257,448.77	12,411,677.50	9,041,665.55	14,689,654.35	23,670,703.55	60,071,149.72
Transferfromconstructioninprogress	-	2,194,159.00	-	-	-	2,194,159.00
TransferfromInvestmentproperties	3,881,175.93	-	-	-	-	3,881,175.93
Businesscombinations	-	175,767.00	1,595,019.78	1,936,652.82	2,156,495.49	5,863,935.09

Decreaseamountincurrentperiod	(1,371,000.42)	(568,600.21)	(2,932,878.73)	(2,953,830.43)	(4,389,640.59)	(12,215,950.38)
Transfertoinvestmentproperties	(1,137,337.42)	-	-	-	-	(1,137,337.42)
Disposalorretirement	(233,663.00)	(568,600.21)	(2,932,878.73)	(2,953,830.43)	(4,389,640.59)	(11,078,612.96)

Closingbalance

707,407,020.71

319,663,665.93

104,455,524.07

379,314,689.74

142,506,542.45

1,653,347,442.90

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets(Continued)

(1)Conditionoffixedassets(Continued)

Buildings

Buildings

Machineryandequipment

Motorvehicles

Officeequipments

Electronicequipments

Total

Accumulateddepreciation
Openingbalance	(238,423,991.05)	(148,242,155.24)	(58,335,271.31)	(216,568,139.60)	(77,792,333.07)	(739,361,890.27)
Increaseamountincurrentperiod	(16,424,080.50)	(26,413,396.62)	(4,758,056.66)	(16,722,112.14)	(16,673,703.93)	(80,991,349.85)
Provision	(13,834,333.67)	(26,413,396.62)	(4,758,056.66)	(16,722,112.14)	(16,673,703.93)	(78,401,603.02)
TransferfromInvestmentproperties	(2,589,746.83)	-	-	-	-	(2,589,746.83)
Decreaseamountincurrentperiod	418,887.13	427,677.74	2,364,303.93	1,555,286.72	2,626,161.34	7,392,316.86
Disposalorretirement	22,815.68	427,677.74	2,364,303.93	1,555,286.72	2,626,161.34	6,996,245.41
Transfertoinvestmentproperties	396,071.45	-	-	-	-	396,071.45

Closingbalance

(254,429,184.42)

(174,227,874.12)

(60,729,024.04)

(231,734,965.02)

(91,839,875.66)

(812,960,923.26

Carryingamount
Atendofperiod	452,977,836.29	145,435,791.81	43,726,500.03	147,579,724.72	50,666,666.79	840,386,519.64

Atbeginningoftheperiod

466,215,405.38

157,208,507.40

38,416,446.16

149,074,073.40

43,276,650.93

854,191,083.27

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets(Continued)

(2)ConditionofFixedassetsfallingtoaccomplishcertificationoftitleBookvalue

Bookvalue

Reasonfornotobtainingcertificationoftitle

Buildingsandconstructions	25,199,513.22	Asat30June2021,theCompanyhasnotyetobtainedthecertificationoftitleforNo.13JingxingNorthStreet,TiexiDistrict,Shenyang.Thetransferor,theState-ownedAssetsSupervisionandAdministrationCommission,wasstillprocessingthecaseandhadprovidedarelevantnotification.
Buildingsandconstructions	40,072,822.06	Asat30June2021,theCompanyhasnotyetobtainedthecertificationoftitleforNo.53NanshizhongStreet,TiexiDistrict,Shenyang.Thetransferor,theState-ownedAssetsSupervisionandAdministrationCommission,wasstillprocessingthecaseandhadprovidedarelevantnotification.
Buildingsandconstructions	536,550.04	Asat30June2021,theconstructionareaisgreaterthantheapprovedarea,theGroupcannothandlethehousingpropertyrightcertificatelocatedat31YiheStreet,KaiyuaninTielingCity,KaiyuanCityPlanningBureauhadprovidedaconstructionprojectcompletionplanningacceptancecertificate.
Buildingsandconstructions	119,844.81	On30June2021,duetotheneedforself-usestorage,theGrouphasbuiltitsownsimplewarehouselocatedat2BaiyuRoad,SujiatunDistrict,Shenyang.TheGroupisunabletoobtainahometitlecertificateforthepropertythere..

15.Constructioninprogress

30June2021

31December2020

Constructioninprogress

64,636,735.93

46,631,190.23

(1)	Conditionofconstructioninprogress

30June2021			31December2020
Carryingbalance	Impairment	Carryingamount	Carryingbalance	Impairment	Carryingamount

Warehouseimprovementproject	6,015,123.20	-	6,015,123.20	2,357,739.84	-	2,357,739.84
Newofficebuildingproject	2,449,885.09	-	2,449,885.09	2,654,403.71	-	2,654,403.71
Supplychainextensionproject	14,289,469.53	-	14,289,469.53	12,248,729.81	-	12,248,729.81
Softwareproject	28,344,537.25	-	28,344,537.25	19,443,779.83	-	19,443,779.83
Otherconstructionprojects	13,537,720.86	-	13,537,720.86	9,926,537.04	-	9,926,537.04

64,636,735.93

-

64,636,735.93

46,631,190.23

-

46,631,190.23

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

15.Constructioninprogress(Continued)

(2)	Changesofsignificantconstructioninprogressincurrentperiod

Projectname	Budget	Openingbalance	Increase	Decrease		Closingbalance	Proportionofinvestmenttobudget	Sourceoffunds
				Transferredtofixedassets	TransferredtoLong-termprepaidexpenses

Warehouseimprovementproject	13,241,063.70	2,357,739.84	9,311,593.33	2,194,159.00	3,460,050.97	6,015,123.20	93.08%	Owncapital
NewofficebuildingProject	3,600,282.07	2,654,403.71	-	-	204,518.62	2,449,885.09	10.54%	Owncapital
Supplychainextensionproject	24,311,152.00	12,248,729.81	2,040,739.72	-	-	14,289,469.53	58.22%	Owncapital
Softwareproject	113,000,000.00	19,443,779.83	8,900,757.42	-	-	28,344,537.25	25.08%	Owncapital
Otherconstructionprojects	225,408,891.74	9,926,537.04	20,559,244.54	-	16,948,060.72	13,537,720.86	13.17%	Owncapital

379,561,389.51

46,631,190.23

40,812,335.01

2,194,159.00

20,612,630.31

64,636,735.93

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

16.Right-of-useassets

Buildingsandconstructions

Machinery,transportandofficeequipment

Others

Total

Originalcost
Openingbalance	3,642,726,568.57	6,617,052.55	2,418,809.35	3,651,762,430.47
Increaseamountincurrentperiod	722,812,718.72	255,241.57	-	723,067,960.29
Incl:Businesscombinationsnotundercommoncontrol	41,709,665.65	-	-	41,709,665.65
Decreaseamountincurrentperiod	(269,712,235.31)	(1,389,315.12)	-	(271,101,550.43)
Disposal	(269,712,235.31)	(1,389,315.12)	-	(271,101,550.43)

Closingbalance

4,095,827,051.98

5,482,979.00

2,418,809.35

4,103,728,840.33

Accumulateddepreciation
Openingbalance	1,289,526,014.83	5,092,290.96	191,731.69	1,294,810,037.48
Increaseamountincurrentperiod	493,418,631.21	166,716.16	47,473.92	493,632,821.29
Provision	493,418,631.21	166,716.16	47,473.92	493,632,821.29

Decreaseamountincurrentperiod	(207,845,002.04)	(743,191.11)	-	(208,588,193.15)
Disposal	(207,845,002.04)	(743,191.11)	-	(208,588,193.15)

Closingbalance

1,575,099,644.00

4,515,816.01

239,205.61

1,579,854,665.62

Carryingamount
Atendoftheperiod	2,520,727,407.98	967,162.99	2,179,603.74	2,523,874,174.71
Atbeginningoftheperiod	2,353,200,553.74	1,524,761.59	2,227,077.66	2,356,952,392.99

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Intangibleassets

Landuserights

Software

Trademarksandbrandsuserights

Favorableleases

Distributionnetwork

Franchise

Total

Originalcost
Openingbalance	88,694,377.76	198,298,230.20	282,036,925.12	127,486,000.00	283,573,678.24	710,000.00	980,799,211.32
Increaseamountincurrentperiod	841,319.61	6,604,973.46	40,440,000.00	-	-	-	47,886,293.07
Purchases	-	6,383,557.95	-	-	-	-	6,383,557.95
Businesscombinationsnotundercommoncontrol	-	221,415.51	40,440,000.00	-	-	-	40,661,415.51
Transferfrominvestmentproperties	841,319.61	-	-	-	-	-	841,319.61
							-
Closingbalance	89,535,697.37	204,903,203.66	322,476,925.12	127,486,000.00	283,573,678.24	710,000.00	1,028,685,504.39
							-
Accumulatedamortization
Openingbalance	(30,664,860.97)	(111,160,831.01)	(5,060,783.81)	(37,878,526.79)	(60,979,029.34)	(710,000.00)	(246,454,031.92)
Increaseamountincurrentperiod	(1,129,159.45)	(11,528,055.72)	(6,550,848.51)	(3,542,977.94)	(7,987,906.67)	-	(30,738,948.29)
Provision	(893,668.85)	(11,528,055.72)	(6,550,848.51)	(3,542,977.94)	(7,987,906.67)	-	(30,503,457.69)
Transferfrominvestmentproperties	(235,490.60)	-	-	-	-	-	(235,490.60)

Closingbalance

(31,794,020.42)

(122,688,886.73)

(11,611,632.32)

(41,421,504.73)

(68,966,936.01)

(710,000.00)

(277,192,980.21)

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Intangibleassets(Continued)

Landuserights

Software

Trademarksandbrandsuserights

Favorableleases

Distributionnetwork

Franchise

Total

Provisionforimpairment
Openingbalance	-	-	-	-	-	-	-

Closingbalance

-

-

-

-

-

-

-

Carryingamount
Atendoftheyear	57,741,676.95	82,214,316.93	310,865,292.80	86,064,495.27	214,606,742.23	-	751,492,524.18
							-
Atbeginningoftheyear	58,029,516.79	87,137,399.19	276,976,141.31	89,607,473.21	222,594,648.90	-	734,345,179.40

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill

(1)OriginalBookValueofgoodwill

Namesoftheinvesteeormattersofforminggoodwill	Openingbalance	Increaseduringthisperiod		Decreaseduringthisperiod	Closingbalance
		Mergerofholdingsnotundercommoncontrol	Businesscombinationsnotundercommoncontrol

SinopharmHolding(Jiangmen)MedicalCo.,Ltd.(“SinopharmJiangmen”)	27,392,317.73	-	-	-	27,392,317.73
SinopharmHoldingShenzhenYanfengCo.,Ltd.(“SinopharmYanfeng”)	16,868,644.87	-	-	-	16,868,644.87
SinopharmHoldingZhaoqingCo.,Ltd.(“SinopharmZhaoqing”)	2,594,341.53	-	-	-	2,594,341.53
SinopharmHoldingShaoguanCo.,Ltd.(“SinopharmShaoguan”)	1,686,496.80	-	-	-	1,686,496.80
SinopharmHoldingMeizhouCo.,Ltd.(“SinopharmMeizhou”)	1,610,819.66	-	-	-	1,610,819.66
SinopharmHoldingHuizhouCo.,Ltd.(“SinopharmHuizhou”)	923,184.67	-	-	-	923,184.67
SinopharmHoldingZhanjiangCo.,Ltd.(“SinopharmZhanjiang”)	282,135.55	-	-	-	282,135.55
SinopharmHoldingDongguanCo.,Ltd.(“SinopharmDongguan”)	1,499.02	-	-	-	1,499.02
SouthPharma&Trade	2,755,680.62	-	-	-	2,755,680.62
FoshanNanhai	88,877,850.51	-	-	-	88,877,850.51
SinopharmHoldingZhuhaiCo.,Ltd.(“SinopharmZhuhai”)	6,772,561.47				6,772,561.47
SinopharmHoldingMaomingCo.,Ltd.(“SinopharmMaoming”)	66,417.07	-	-	-	66,417.07
SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd.(“ForMeMedicines’’)	3,033,547.53	-	-	-	3,033,547.53
SinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd.(“HebeiLerentang”)	29,482,149.57	-	-	-	29,482,149.57
XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd.(“XiaoyiWanmin”)	15,866,680.00	-	-	-	15,866,680.00
ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd.(“ShanxiGuodaWanmin”)	65,025,000.00	-	-	-	65,025,000.00
SinopharmHoldingGuodaForMePharmacyChainStoreCo.,Ltd.(“ForMePharmacyChainStore”)	19,405,450.23	-	-	-	19,405,450.23
SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,Ltd.(“ShanghaiGuoda”)	5,028,638.00	-	-	-	5,028,638.00
SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd.(“YangzhouGuoda”)	7,979,000.00	-	-	-	7,979,000.00
ZhejiangGuodaPharmacyCo.,Ltd.(“ZhejiangGuoda”)	3,045,183.85	-	-	-	3,045,183.85
SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd.(“NanjingGuoda”)	11,598,341.12	-	-	-	11,598,341.12
FujianGuodaPharmacyChainStoreCo.,Ltd.(“FujianChain”)	1,567,250.76	-	-	-	1,567,250.76
SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd.(“ShandongGuoda”)	29,110,409.46	-	-	-	29,110,409.46
SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.(“ShenyangGuoda”)	41,047,958.08	-	-	-	41,047,958.08
LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd.(“LiyangGuoda”)	107,275,095.74	-	-	-	107,275,095.74

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill(Continued)

(1)OriginalBookValueofgoodwill(Continued)

Namesoftheinvesteeormattersofforminggoodwill	Openingbalance	Increaseduringthisperiod		Decreaseduringthisperiod	Closingbalance
		Mergerofholdingsnotundercommoncontrol	Businesscombinationsnotundercommoncontrol

SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd.(“HunanGuoda”)	41,165,574.64	-	-	-	41,165,574.64
QuanzhouGuodaPharmacyChainStoreCo.,Ltd.(“QuanzhouGuoda”)	41,298,622.59	-	-	-	41,298,622.59
SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd.(“HenanGuoda”)	22,666,179.77	-	-	-	22,666,179.77
GuodaNeimenggu	70,485,777.00	-	-	-	70,485,777.00
SinopharmGuodaPharmacyJiangmenChainCo.,Ltd.(“JiangmenGuoda”)	77,350,000.00	-	-	-	77,350,000.00
SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd.(“ShanxiGuodaYiyuan”)	9,080,100.00	-	-	-	9,080,100.00
ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.‘sStoreAcquisition	13,420,000.00	-	-	-	13,420,000.00
BeijingGoldenElephantPharmacyMedicineChainCompanyLimited(“BeijingGoldenElephant”)	64,140,124.36	-	-	-	64,140,124.36
GuodaTaishan	26,826,120.55	-	-	-	26,826,120.55
TaiyuanTongxinliPharmacyCo.,Ltd.(“TaiyuanTongxinli”)	2,818,647.85	-	-	-	2,818,647.85
SinopharmHoldingGuodaYongxingtangPharmacyChainStore(Chaoyang)Co.,Ltd(“ChaoyangYongxingtang”)	25,973,399.17	-	-	-	25,973,399.17
NeimengguTongrenBigPharmacyChainCo.,Ltd.storeacquisition.	13,494,000.00	-	-	-	13,494,000.00
GuodaPu’er	71,064,684.79	-	-	-	71,064,684.79
ShanghaiPudongNewAreaPharmaceuticalsCo.,Ltd.(“PudongPharmaceuticals”)	65,978,042.61				65,978,042.61
ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.	520,836,246.17	-	-	-	520,836,246.17
ChengDafangPharmaceuticalGroupCo.,Ltd	1,182,443,676.11	-	-	-	1,182,443,676.11
LiaoningXianzhenPharmaceuticalChainCo.,Ltd.	34,037,431.66	-	-	-	34,037,431.66
YunnanGuodaDishengpharmacychainCo.,Ltd(“DishengChain”)(Note1)	-	152,157,935.52	-	-	152,157,935.52
ChinaPharmaceuticalHoldingsNantongPujiPharmacyChainCo.,Ltd.storeacquisition(Note2)	-	-	11,498,100.00	-	11,498,100.00
ShanxiHuiminKangweiBigPharmacyChainCo.,Ltd.storeacquisition(Note3)	-	-	20,970,000.00	-	20,970,000.00

2,772,375,281.11

152,157,935.52

32,468,100.00

2,957,001,316.63

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill(Continued)

(2)Provisionofimpairmentloss

Namesoftheinvesteeormattersofforminggoodwill

Openingbalance

Increase

Decrease

Closingbalance

GuodaQuanzhou

25,000,000.00

-

-

25,000,000.00

RelevantinformationofassetgrouporcombinationofassetgroupsinwhichgoodwillislocatedExplaintheprocessofgoodwillimpairmenttest,keyparameters(suchasthegrowthrateintheforecastperiod,thegrowthrateinthestableperiod,theprofitrate,thediscountrate,theforecastperiod,etc.)andtherecognitionmethodofgoodwillimpairmentloss:

Thecarryingvalueofgoodwillisapportionedaccordingtotheproportionofeachassetgrouporcombinationofassetgroupsatfairvalueofthetotalamountofgoodwillatfairvalue.Itisshownasfollows:

30June2021

31December2020

Pharmaceuticaldistribution	152,865,497.03	152,865,497.03
Pharmaceuticalretail	2,779,135,819.60	2,594,509,784.08

2,932,001,316.63

2,747,375,281.11

Therecoverableamountofassetgroupandcombinationofassetgroupsiscalculatedbasedonthefive-yearperiodbudgetapprovedbythemanagementwhileusingthecashflowforecastmethod.Thecashflowsbeyondthefive-yearperiodareextrapolatedusingtheinflationrate.Keyassumptionswereusedforthecalculationofthepresentvaluesoffuturecashflowprojectionsofassetgroupandcombinationofassetgroupsconsistingofpharmaceuticaldistributionandpharmaceuticalretailasof30June2021.Keyassumptionsmadebymanagementonprojectionsofcashflowsusedinimpairmenttestingaredescribedasfollows:

Pharmaceuticaldistribution

Pharmaceuticalretail

Revenuegrowthrateinthebudgetperiod	1.79%-16.00%	2.67%-16.43%
Sustainablegrowthrate	3.00%	3.00%
Grossmargin	3.56%-6.40%	12.40%-50.58%
Discountrate	12.40%-15.00%	13.00%-15.00%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill(Continued)Thebudgetedgrossmarginandtherevenuegrowthrateinthebudgetperiodaredeterminedbasedonthepastperformanceandexpectationformarketdevelopment.Thediscountratesusedarepre-taxdiscountratesafterreflectingspecificrisksoftherelevantassetgroups.Therecoverableamountoftheassetgroupconsistingofpharmaceuticaldistributionandpharmaceuticalretailwasdeterminedaccordingtothekeyassumptions.ImpactofgoodwillimpairmenttestOtherdeclarationsNote1:TheGroupacquireda70%stakeinYunnanGuodaDishengPharmaceuticalChainCo.,Ltd.inMarch2021,andaftertheacquisition,itformedgoodwillofRMB152,157,935.52,thecalculationprocessofwhichisdetailedinNotesVI-1.Note2:TheGroupacquired15directstoresofNantongPujiPharmacyChainCo.,Ltd.inMarch2021,andaftertheacquisition,itformedgoodwillofRMB11,498,100.00,thecalculationprocessofwhichisdetailedinNotesVI-1.Note3:TheGroupacquired32directstoresofShanxiHuiminKangweiPharmaceuticalChainCo.,Ltd.inFebruary2021,andaftertheacquisitionwascompleted,itformedgoodwillofRMB20,970,000.00,thecalculationprocessofwhichisdetailedinNotesVI-1

19.Long-termprepaidexpenses

Openingbalance

Additions

Amortization

Otherdecrease

Closingbalance

Fixedassetimprovementexpenditure	336,895,157.13	73,939,831.45	63,049,121.27	1,789,848.54	345,996,018.77
Acquisitionexpendituretoobtaintherighttooperate	95,802,321.95	70,780,659.86	10,579,442.60	-	156,003,539.21
Others	25,007,797.01	1,655,150.46	5,469,516.47	-	21,193,431.00

457,705,276.09

146,375,641.77

79,098,080.34

1,789,848.54

523,192,988.98

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

20.Deferredtaxassets/liabilities

(1)	Deferredtaxassetsbeforeoffseting

	30June2021			31December2020
	Deductibletemporarydifferences	Deferredtaxassets		Deductibletemporarydifferences	Deferredtaxassets
Provisionforimpairmentofassets	196,487,679.43	46,536,628.81		170,577,875.56	40,697,280.41
Deductibletaxloss	32,245,677.79	8,061,419.46		30,798,485.93	7,699,621.49
Impactofleasecriteria	109,849,225.12	27,234,338.93		93,685,083.09	22,420,179.23
Accruedexpenses	108,024,144.57	25,409,713.77		113,445,282.36	26,095,709.73
Memberbonuspoints	61,049,011.99	14,722,901.75		59,179,220.98	14,575,814.61
Accruedpayroll	45,855,424.22	10,861,893.44		47,280,390.08	11,210,512.95
Others	20,119,732.62	4,832,303.97		21,096,550.78	4,641,850.41

573,630,895.74

137,659,200.13

536,062,888.78

127,340,968.83

(2)	Deferredtaxliabilitiesbeforeoffseting

30June2021			31December2020
Taxabletemporarydifferences	Deferredtaxliabilities		Taxabletemporarydifferences	Deferredtaxliabilities

Fairvalueadjustmentforbusinesscombinationnotinvolvingenterprisesundercommoncontrol	716,667,762.07	179,197,391.85		713,703,864.68	178,425,966.17
Changesinfairvalueoffinancialassetsthroughothercomprehensiveincome	85,802,580.28	21,450,645.07		85,802,580.28	21,450,645.07
One-timedeductionforfixedassetsunderfivemillionyuan	123,264,042.43	30,816,010.64		126,722,799.31	31,679,099.86
Divisionrestructuringassetstoassessvalue-addeddifferences	16,029,854.96	4,007,463.74		17,160,546.40	4,290,136.60
Others	28,333,035.97	6,090,083.17		25,205,927.86	5,297,761.98

970,097,275.71

241,561,594.47

968,595,718.53

241,143,609.68

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

20.Deferredtaxassets/liabilities(Continued)

(3)	Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachother:

30June2021		31December2020-
Deferredtaxassets/liabilities-Net	Temporarydifferencesafterset-off	Deferredtaxassets/liabilities-Net	Temporarydifferencesafterset-off

Deferredtaxassets	41,063,450.80	96,595,749.33	35,222,201.02	92,118,767.81
Deferredtaxliabilities	41,063,450.80	200,498,143.67	35,222,201.02	205,921,408.66

(4)	Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognizedasdeferredtaxassetsarepresentedasfollows:

30June2021

31December2020

Deductibletemporarydifferences	11,920,797.79	9,435,555.39
Deductibleloss	61,373,403.25	61,373,403.25

73,294,201.04

70,808,958.64

(5)	Theaforesaidunrecognizeddeductiblelosseswilldue:

30June2021

31December2020

2021	2,563,056.08	2,563,056.08
2022	7,261,117.97	7,261,117.97
2023	11,977,477.56	11,977,477.56
2024	22,579,176.44	22,579,176.44
2025	16,992,575.20	16,992,575.20

61,373,403.25

61,373,403.25

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

21.Othernon-currentassets

	30June2021			31December2020
	Carryingbalance	Impairment	Carryingamount	Carryingbalance	Impairment	Carryingamount
Physicalassetsreservespecificallyauthorized	331,870,456.97	-	331,870,456.97	260,590,932.98	-	260,590,932.98
Securitydeposit	100,326,250.00	(70,000.00)	100,256,250.00	114,186,431.57	-	114,186,431.57
Prepaymentforprojectandequipment	40,757,628.00	-	40,757,628.00	24,809,091.30	-	24,809,091.30
Contractassets	8,238,308.92	(120,404.87)	8,117,904.05	7,081,263.45	(82,188.73)	6,999,074.72
Other	3,257,615.30	-	3,257,615.30	1,611,992.27	-	1,611,992.27

484,450,259.19

(190,404.87)

484,259,854.32

408,279,711.57

(82,188.73)

408,197,522.84

22.Short-termborrowings

30June2021

31December2020

Creditborrowings

4,632,933,904.39

1,612,187,020.12

23.Notespayable

At30June2021,theannualinterestratefortheaboveborrowingswas2.28%((31December2020：3.49%)).At30June2021and31December2020,therewerenoshort-termborrowingsoftheGroupthatwereoverduebutnotyetpaid.30June2021

30June2021

31December2020

Commercialacceptancebills		93,061,594.94		56,360,197.69
Bankacceptancebills		6,687,363,494.23		7,463,805,077.00

6,780,425,089.17

7,520,165,274.69

At30June2021,thetotalamountofnotespayablethatwereduebutnotyetpaidwasnil(31December2020：nil).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

24.Accountspayable

30June2021

31December2020

Paymentforgoods

9,642,504,836.50

7,697,451,142.50

At30June2021,significantaccountspayableagedoveroneyearwasanalyzedbelow:

Amount

Reason

Paymentforgoods

429,971,551.39

Hasnotbeensettled

At30June2021,accountspayableagedoveroneyear,mainlytheunsettledpaymentforgoods,wasRMB429,971,551.39(31December2020:RMB398,772,102.49).

25.Receiptsinadvance

30June2021

31December2020

Advancedleasepayment

14,868,097.97

12,352,466.64

26.Contractliabilities

30June2021

31December2020

Contractliabilities

316,827,151.78

368,600,357.14

TheendingbalanceofcontractliabilitiesistheadvancepaymentsreceivedbytheGroup.AftertheGroupreceivestheadvancepaymentsbythecustomerforthesalesofgoods,itwillgenerallyperformtheperformanceobligationandrecognisetherevenuewithinabout6months.

27.Employeebenefitspayable

31December2020

Increase

Decrease

30June2021

Short-termemployeebenefits(1)	347,602,975.86	1,442,005,710.81	1,554,869,193.60	234,739,493.07
Post-employmentbenefits(definedcontributionplan)(2)	9,216,204.49	135,235,733.49	137,243,137.06	7,208,800.92
Terminationbenefits	392,866.75	560,719.50	695,897.15	257,689.10

357,212,047.10

1,577,802,163.80

1,692,808,227.81

242,205,983.09

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

27.Employeebenefitspayable(Continued)

(1)	Short-termemployeebenefits

31December2020

Increase

Decrease

30June2021

Salaries,bonuses,allowancesandgrants	330,233,181.61	1,259,235,407.05	1,376,555,529.89	212,913,058.77
Staffwelfare	1,469,381.07	32,807,596.67	33,096,433.74	1,180,544.00
Socialsecuritycontribution	2,194,328.52	74,031,911.08	74,006,336.50	2,219,903.10
Incl:Medicalinsurance	1,531,693.95	68,900,758.25	68,513,264.14	1,919,188.06
Workinjuryinsurance	84,285.35	2,846,079.32	2,857,214.97	73,149.70
Maternityinsurance	578,349.22	2,285,073.51	2,635,857.39	227,565.34
Housingfunds	1,650,393.19	52,281,928.06	52,197,609.56	1,734,711.69
Laborunionfundsandemployeeeducationfunds	11,183,869.70	22,386,728.92	20,702,330.34	12,868,268.28
Othershort-termbenefits	871,821.77	1,262,139.03	(1,689,046.43)	3,823,007.23

347,602,975.86

1,442,005,710.81

1,554,869,193.60

234,739,493.07

(2)	Definedcontributionplan

31December2020

Increase

Decrease

30June2021

Basicpensioninsurance	3,593,380.27		128,854,477.21		127,826,836.98		4,621,020.50
Unemploymentinsurance	106,718.12		3,965,369.33		3,905,028.02		167,059.43
Contributiontopensionfund	5,516,106.10		2,415,886.95		5,511,272.06		2,420,720.99

9,216,204.49

135,235,733.49

137,243,137.06

7,208,800.92

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

28.Taxpayable

30June2021

31December2020

Value-addedtax	75,280,000.02		102,586,862.95
CorporateIncometaxes	182,236,074.48		173,016,908.47
Individualincometax	7,083,305.63		6,790,402.61
Citymaintenanceandconstructionsurtax	6,333,456.10		6,993,947.17
Stampduty	7,697,463.21		8,243,076.57
Waterconservancyfund	5,572,222.75		5,586,926.64
Educationalsurcharge	5,131,997.40		5,254,608.43
Propertytax	1,300,695.62		664,697.78
Landusetax	148,696.04		54,028.60
Others	7,417,676.88		7,675,689.94

298,201,588.13

316,867,149.16

29.Otherpayables

30June2021

31December2020

Interestpayable	16,255,309.75		35,572,620.82
Dividendpayable	7,911,748.36		6,389,320.96
Otherpayables	1,507,731,959.76		1,557,204,939.36

1,531,899,017.87

1,599,166,881.14

(1)Interestpayable
	30June2021		31December2020

Factoringinterestonaccountsreceivable

16,255,309.75

35,572,620.82

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

29.Otherpayables(Continued)

(2)Dividendpayable30June2021

30June2021

31December2020

ShanghaiFosunPharmaceutical(Group)Co.,Ltd.	4,835,511.58		4,835,511.58
DividendpayabletoZhangZhenfang	1,389,639.31		1,389,639.31
MeiluoPharmaceuticalCo.,Ltd.	164,170.07		164,170.07
LongfengDu	526,506.14		-
DongWang	336,202.71		-
HaimingLiu	177,616.53		-
GuozhuTang	69,777.92		-
XianchengLiu	88,808.27		-
ShaojunYan	44,404.13		-
HaiyuLiu	38,060.69		-
QinghuaWang	126,868.95		-
ZhanchengLiang	114,182.06		-

7,911,748.36

6,389,320.96

At30June2021and31December2020,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid.

(3)Otherpayables30June2021

30June2021

31December2020

Deposit	484,838,817.90		472,800,624.92
Payablesforfactoringprograms	325,153,045.22		576,523,284.81
Accruedexpenses	210,959,892.77		213,950,722.34
Equitypayables	207,199,828.25		38,702,372.01
Payablesforrentals	95,120,391.91		68,417,303.16
Payablesforconstructioninprogressandequipment	44,723,287.89		40,898,589.59
Payablestoindividuals	26,098,245.60		25,869,320.67
Collectionofothers	20,055,565.05		19,119,286.19
Payablesforlandtransferpayments	12,597,500.00		12,597,500.00
Temporaryloans	11,198,533.00		11,017,981.51
Payablestorelatedparties	5,138,862.34		5,093,263.36
Others	64,647,989.83		72,214,690.80

1,507,731,959.76

1,557,204,939.36

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

29.Otherpayables(Continued)

At30June2021,significantotherpayablesover1yearare:

Amountpayable

Reasonforoutstanding

Equitypayable	36,000,000.00		Paymentconditionsnotmet
Deposits	37,744,837.63		Paymentconditionsnotmet
Accruedexpenses	6,223,452.82		Paymentconditionsnotmet
Payablesforlandtransferpayments	12,597,500.00		Paymentconditionsnotmet

30.Non-currentliabilitiesduewithin1year

92,565,790.4530June2021

30June2021

31December2020

Leaseliabilitiesduewithin1year

798,170,618.10

748,732,059.89

31.Othercurrentliabilities

	30June2021		31December2020
Pre-collectedVAT	20,997,225.61		24,142,106.09
OutputVATtoberecognized	1,435,222.36		644,972.46

22,432,447.97

24,787,078.55

32.Long-termborrowings

31December2021

31December2020

Creditloan		30,000,000.00		-
Entrustedloans		31,633,794.44		31,637,173.89-

61,633,794.44

31,637,173.89

At30June2021,thetotalamountofremainingentrustedloanswasRMB31,633,794.44(31December2020:

RMB31,637,173.89).,whichwastheloanfromSinopharmGroupFinanceCo.,LtdentrustedbyCNPGCtothegroup,theweightedaverageannualinterestrateoftheentrustedloanswas3.34%(31December2020:3.41%).At30June2021,thebalanceofcreditborrowingswasRMB30,000,000.00(31December2020:None).Theannualinterestrateonthiscreditloanis4.05%(31December2020:None).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

33.Leaseliabilities

30June2021

31December2020

Leasepayment	2,159,301,970.90		2,051,786,223.79
Less:Leaseliabilitiesduewithin1year	798,170,618.10		748,732,059.89

1,361,131,352.80

1,303,054,163.90

34.Long-termpayables

30June2021

31December2020

Payablesforspecificprojects

6,938,189.00

6,938,189.00

Payablesforspecificprojects:

	31December2020		Increase		Decrease		30June2021	Reasonsofderredincome
Specialfundsgrantedbygovernment(1)	800,000.00		-		-		800,000.00	Fundsgrantedbygovernment
Medicalreservefunds(2)	6,138,189.00		-		-		6,138,189.00

6,938,189.00

-

-

6,938,189.00

(1)Thespecificpayablesareresearchfundsallocatedbygovernmentdepartmentsandareaccountedforthespecificpayableaccountatthetimeofallocation.

(2)ThemedicalreservefundswereallocatedbytheLiaoningProvinceDepartmentofFinancetoLiaoningChengdaFangyuanpharmaceuticalchainCo.,Ltdwhichwasincorporatedintotheconsolidationin2020.

35.Long-termemployeebenefitspayable

30June2021

31December2020

Earlyretirementbenefitspayable

1,262,000.00

1,319,000.00

36.Provisions

30June2021

31December2020

Pendinglitigationorarbitration(1)

68,663,166.79

68,808,166.79

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

37.Deferredincome

	Openingbalance	Increase	Decrease	Closingbalance	Reasonsofdeferredincome
Governmentgrants	89,610,262.61	7,520,212.93	5,962,539.84	91,167,935.70	Governmentgrant
VATAdditionaldeduction	233,320.76	835,816.61	921,739.18	147,398.19	VATadditionaldeduction

89,843,583.37

8,356,029.54

6,884,279.02

91,315,333.89

Asat30June2021,deferredincomefromgovernmentgrantsareasfollows:

Governmentgrants

program

Governmentgrantsprogram

Openingbalance

Addition

Amountincludedinnon-operatingincome

Amountincludedinotherincome

Offsetcostamountincurrentperiod

Closingbalance

Assetrelated/incomerelated

ResettlementCompensation(Note)	70,158,624.05	-	1,349,204.28	-	-	68,809,419.77	Assetrelated
Fundsfortheconstructionofamodernsupplychainsysteminthecentralcirculationfieldin2018	4,353,019.54	7,450,000.00	-	2,143,819.53	-	9,659,200.01-	Assetrelated
LogisticsprojectNanningEconomicDevelopmentZoneconstructionsupportfund	4,846,565.87	-	-	93,203.22	-	4,753,362.65	Assetrelated
Guangzhoulogisticsstandardizationpilotproject	1,722,518.87	-	-	273,123.42	-	1,449,395.45	Assetrelated
ShenyangTiexiGovernmenthousingsubsidies	1,325,001.32	-	-	40,561.32	-	1,284,440.00	Assetrelated
Otherprojects	7,204,532.96	70,212.93	-	2,037,129.45	25,498.62	5,212,117.82	Asset/Incomerelated

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

38.Othernon-currentliabilities

30June2021

31December2020

Governmentalmedicalreservefunds(1)		600,009,111.26		711,029,182.37
Productpromotionaccumulativepointsprogramme(2)		30,824,503.22		29,815,911.17
Other		6,140.53		17,896.05

	630,839,755.01		740,862,989.59
(1)Governmentalmedicalreservefundsarethefundsreceivedfromthenationalandlocalgovernmentsforpurchasingreservemedicalsupplies.(2)TheProductpromotionaccumulativepointsprogrammereferstothoseproduct-originatedaccumulativepointsthatremainmorethanoneyearsurplusbeforetheexpirationdate.

39.Sharecapital

Movementduringthecurrentyear31December2020

31December2020

Issueofnewshare

Others

Subtotal

30June2021

Shares

428,126,983.00

-

-

-

428,126,983.00

40.Capitalsurplus

31December2020

Increase

Decrease

30June2021

Sharepremium	2,118,174,787.27	-	-	2,118,174,787.27
Othercapitalsurplus	2,254,329,266.45	-	(460,868.29)	2,253,868,398.16

	4,372,504,053.72	-	(460,868.29)	4,372,043,185.43
ChangesinotherequityofShyndecPharma,anassociateofthegroup,reducethebookvalueoflong-termequityinvestmentandincludeitinthecapitalreserveofRMB-460,868.29.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

41.Othercomprehensiveincome

	Amountschangesincurrentperiod
31December2020	Occurrenceamountbeforetax	Attributabletoshareholdersofownersoftheparent	30June2021

Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss	38,611,051.04	-	-	38,611,051.04
Incl:Changeinthefairvalueofotherequityinvestments	38,611,051.04	-	-	38,611,051.04
Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss	(128,033.32)	64,854.90	64,854.90	(63,178.42)
Incl:Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss	(128,033.32)	64,854.90	64,854.90	(63,178.42)

38,483,017.72

64,854.90

64,854.90

38,547,872.62

42.Surplusreserve

31December2020

Increase

Decrease

30June2021

Statutorysurplusreserves

214,063,491.50

-

-

214,063,491.50

43.Retainedearnings

30June2021

31December2020

Retainedearningsatbeginningofyearbeforeretrospectiveadjustmentandrestatement	8,895,145,106.39	7,755,295,537.08
Theretrospectiveadjustmentandrestatement	-	(3,029,877.91)
Retainedearningsatbeginningofyearafterretrospectiveadjustmentandrestatement	8,895,145,106.39	7,752,265,659.17
Add:Netprofitattributabletotheparent	741,445,013.25	1,401,892,593.23
Less:Dividendpayableoncommonstock	342,501,586.40	256,876,189.80
Other	-	2,136,956.21

RetainedearningsonJune30,2020

9,294,088,533.24

8,895,145,106.39

Adjustthedetailsofundistributedprofitsatthebeginningoftheperiod:

1).duetotheretroactiveadjustmentoftheaccountingstandardsforbusinessenterprisesanditsrelevantnewprovisions,theundistributedprofitatthebeginningoftheperiodwasaffectedby0.00yuan.

2).duetothechangeofaccountingpolicy,theundistributedprofitatthebeginningoftheperiodis0.00yuan.

3).duetothecorrectionofmajoraccountingerrors,theundistributedprofitatthebeginningoftheperiodwasaffectedby0.00yuan.

4).thechangeofconsolidationscopecausedbythesamecontrolaffectstheundistributedprofitatthebeginningoftheperiodby

0.00yuan.

5).thetotalofotheradjustmentsaffectstheundistributedprofitatthebeginningoftheperiodby0.0

VNotestotheconsolidatedfinancialstatements(Continued)

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

44.Operatingrevenueandcost

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

	Revenue	Cost	Revenue	Cost
Principaloperations	32,841,264,479.56	29,156,249,513.96	26,944,450,698.03	23,953,267,481.54
Otheroperations	321,827,407.83	60,587,687.11	225,489,490.49	17,762,237.90

33,163,091,887.39

29,216,837,201.07

27,169,940,188.52

23,971,029,719.44

Classification

HeadOffice

Pharmaceuticaldistribution

Pharmaceuticalretail

Eliminationbetweensegments

Total

Byproduct
Incl:
Pharmaceuticals	-	19,828,394,853.85	10,676,855,504.22	(499,204,175.96)	30,006,046,182.11
Medicaldevicesanddisposables	-	2,076,206,193.67	134,724,521.61	-	2,210,930,715.28
Diagnosticreagents	-	515,191,908.40	-	-	515,191,908.40
Medicalequipments	-	278,181,437.86	-	-	278,181,437.86
Others	4,532,508.37	111,779,259.15	-	(5,938,298.55)	110,373,468.97

Byarea
Incl:
China	4,532,508.37	22,809,753,652.93	10,811,580,025.83	(505,142,474.51)	33,120,723,712.62

Bytypesofactivity
Incl:
Pharmaceuticaldistribution	-	21,697,696,043.60	1,958,602,731.53	(499,204,175.96)	23,157,094,599.17
Retailpharmacy	-	1,000,278,350.18	8,852,977,294.30	-	9,853,255,644.48
Others	4,532,508.37	111,779,259.15	-	(5,938,298.55)	110,373,468.97

Bycontractduration
Incl:
Atapointintime	-	22,697,974,393.78	10,811,580,025.83	(499,204,175.96)	33,010,350,243.65
Overtime	4,532,508.37	111,779,259.15	-	(5,938,298.55)	110,373,468.97

4,532,508.37

22,809,753,652.93

10,811,580,025.83

(505,142,474.51)

33,120,723,712.62

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

44.Operatingrevenueandcost(Continued)

InformationabouttheGroup’sperformanceobligationsissummarisedbelow:

(1)Revenueisrecognisedwhencontrolofthegoodshastransferredandpaymentisgenerallyduewithin30to210days

fromdelivery;

(2)Revenueisrecognisedintheservicedurationandthepaymentisgenerallyduewithin30to210dayssincetheserviceis

completed.Informationrelatedtothesalespriceallocatedtotheremainingobligations:

TheamountofincomecorrespondingtotheobligationthathasbeensignedbuthasnotbeenfulfilledorhasnotyetfulfilledisRMB316,827,151.78,whichisexpectedtoberecognizedwithin1year.

Revenueisasfollows:

Forthesixmonthended

30June2021

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Revenuefromcontractswithcustomers	33,120,723,712.62		27,139,718,273.17
Rentals	42,368,174.77		30,221,915.35

33,163,091,887.39

27,169,940,188.52

45.Taxandsurcharges

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Citymaintenanceandconstructiontax	27,877,507.46		28,121,494.67
Educationalsurcharge	20,257,170.15		20,311,577.25
Propertytax	4,224,163.72		2,492,284.79
Landtax	768,836.09		317,162.91
Vehicleandvesselusetax	85,991.96		72,575.73
Stampduty	21,497,447.37		17,140,178.76
Others	1,278,737.83		1,050,035.21

75,989,854.58

69,505,309.32

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

46.Sellingexpenses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Employeespayrollandwelfarebenefits	1,197,067,119.97		904,925,594.87
Depreciationexpensesofright-of-useassets	479,540,503.22		387,380,924.52
Rentalexpenses	117,046,188.52		60,573,717.68
Technicalservicefee	84,303,596.21		45,620,729.98
Amortizationoflong-termdeferredexpenses	69,802,526.37		52,138,560.36
Depreciationexpenses	56,762,708.30		43,808,801.59
Transportationcharges	52,564,735.76		51,095,840.37
Utilities	39,863,463.73		34,081,779.59
Officeallowances	35,013,829.00		27,895,774.76
Storageexpenses	25,614,256.09		18,300,237.30
Promotionandmarketingexpenses	18,804,920.99		15,399,693.56
Propertymanagementfee	16,975,156.97		15,659,321.63
Entertainmentexpenses	14,061,877.53		9,358,003.62
Marketdevelopmentfee	8,168,582.42		4,517,975.19
Repairingfees	7,118,061.32		7,147,598.96
Travelallowances	2,939,453.78		1,845,288.42
Conferenceexpenses	525,946.12		292,483.51
Others	81,312,603.47		48,696,492.69

2,307,485,529.77

1,728,738,818.60

47.Administrativeexpenses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Employeespayrollandwelfarebenefits	360,049,901.79		325,153,640.16
Depreciationexpenses	17,675,510.90		16,351,496.61
Rentalexpenses	16,196,265.77		5,390,672.79
Officeallowances	14,281,405.19		12,677,148.40
Depreciationexpensesofright-of-useassets	12,957,819.94		10,925,364.40
Amortizationofintangibleassets	11,402,009.79		8,991,474.97
Amortizationoflong-termdeferredexpenses	8,283,676.96		6,808,445.06
Entertainmentexpenses	7,342,000.00		4,596,522.19
Technicalservicefee	6,691,393.49		11,527,561.19
Propertymanagementfee	4,749,071.86		3,089,556.70
Vehiclemanagementexpenses	3,659,483.25		3,169,051.19
Travelallowances	3,444,399.91		1,822,634.84
Utilities	3,107,684.09		1,919,161.42
Repairingfees	2,852,529.46		2,898,331.91
Agencyservicefee	2,841,366.73		3,411,279.41
Promotionandmarketingexpenses	304,402.82		2,180,552.03
Others	16,698,014.76		22,374,251.65

492,536,936.71

443,287,144.92

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

48.Financecosts

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Interestexpenses	147,057,897.99		133,350,510.68
Less:Interestincome	38,758,729.78		65,512,550.22
Cashdiscount	18,968,417.81		20,153,456.44
Exchangesgain/(loss)	(415,927.10)		47,935.97
Others	18,328,179.85		17,581,389.63

107,243,003.15

65,313,829.62

Abreakdownforinterestincomeisasfollows:

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Cash

38,758,729.78

65,512,550.22

49.Otherincomes

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Governmentgrantsrelatedtodailyoperatingactivities	33,966,095.01		25,786,877.95
VATreductionforsmall-scaletaxpayers	11,566,085.35		8,383,678.31
VATadditionaldeduction	929,058.98		864,634.59
Taxationservicechargerefund	788,376.92		820,107.47

47,249,616.26

35,855,298.32

50.Investmentincome

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Long-termequityinvestmentincomeundertheequitymethod	157,696,397.81		133,604,904.16
Dividendincomefromotherequityinvestmentsthatarestillheld	2,330,159.50		-
Investmentincomefromfinancialassetsatfairvaluethroughprofitorloss	3,599,555.61		4,109,881.90
Investmentincomefromthederecognitionoffinancialassetsmeasuredatamortisedcost	(7,039,046.60)		(33,507,102.64)
Others			998,665.84

156,587,066.32

105,206,349.26

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

51.Creditimpairmentlosses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Impairmentlossofotherreceivables	(1,464,818.01)		(1,401,731.20)
Impairmentlossofaccountsreceivable	(28,023,731.77)		(20,178,500.32)
Impairmentlossofnotesreceivables	893,564.34		-
Impairmentlossofothernon-currentfinancialassets	(70,000.00)		-

(28,664,985.44)

(21,580,231.52)

52.Impairmentlosses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Lossfromwrite-downofinventories	(318,356.71)		(1,743,888.30)
Lossfromimpairmentofcontractassets	(60,342.41)		-
Lossfromimpairmentofothernon-currentassets	(38,216.14)		-

(416,915.26)

(1,743,888.30)

53.Gainondisposalofassets

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Gainondisposalofright-of-useassets	(505,084.56)		3,971,813.20
Gainondisposaloffixedassets	(83,714.99)		333,511.60

(588,799.55)

4,305,324.80

54.Non-operatingincome

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Amountclassifiedasnon-recurringprofitorloss

Governmentgrants	1,349,204.28		1,349,204.28	1,349,204.28
Gainondisposalofnon-currentassets	60,184.80		2,171.01	60,184.80
Gainfromwritingofftheunnecessarypayment	7,298,605.35		199,266.47	7,298,605.35
Others	3,785,326.01		3,669,338.46	3,789,726.01

12,493,320.44

5,219,980.22

12,493,320.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

54.Non-operatingincome(Continued)

Governmentgrantsincludedincurrentperiodprofitorloss:

ProjectName

GovernmentDepartment

ReasonsforGovernmentgrants

Type

Affectstheprofitorlossofthisyear

Specialsubsidy

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Relatedtoasset/income

ResettlementCompensationofNo.7ZhongyaoRoad

NanningEconomic&TechnologicalDevelopmentAreaManagementCommittee

Subsidy

Subsidiesfromlocalgovernmentforsupportpoliciessuchasattractinginvestment

Yes

No

1,349,204.28

1,349,204.28

Assetrelated

55.Non-operatingexpenses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Amountclassifiedasnon-recurringprofitorloss

Donationexpenses	158,990.50		527,677.41		158,990.50
Lossesarisingfromdamageandobsolescenceofnon-currentassets	273,414.36		373,790.44		273,414.36
Penaltyexpenses	1,220,928.37		467,582.50		1,220,928.37
Others	1,584,618.12		1,639,842.17		1,584,618.12

3,237,951.35

3,008,892.52

3,237,951.35

56.Incometaxexpenses

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Currentincometax	248,326,505.55		213,477,221.94
Deferredincometax	(9,900,246.51)		(3,370,457.59)

238,426,259.04

210,106,764.35

Thereconciliationfromincometaxcalculatedbasedonapplicabletaxratesandtotalprofitpresentedintheconsolidatedfinancialstatementstotheincometaxesislistedbelow:

Forthesixmonthended30June2021

Forthesixmonthended30June2021Profitbeforeincometax

Profitbeforeincometax

1,146,420,713.53

Taxattheapplicabletaxrate	286,605,178.38
Effectofdifferenttaxratesforsomesubsidiaries	(27,341,828.05)
Adjustmentsinrespectofcurrenttaxofpreviousperiods	9,250,796.99
Incomenotsubjecttotax	(39,424,099.45)
Expensesnotdeductiblefortax	5,188,447.29
Unrecogniseddeductibletemporarydifferencesandtaxlosses	4,147,763.88

Incometax

238,426,259.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Notestoitemsinthecashflowstatement

(1)	Othercashreceiptsrelatingtooperatingactivities

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Receivedthespecialemergencyreservefund	-		330,000,000.00
Rentincome	42,368,174.77		30,221,915.35
Interestincome	38,758,729.78		65,499,031.75
Receivedothergovernmentgrantsexcepttaxrefund	35,612,619.03		28,018,379.40
Others	251,851,351.88		253,462,783.50

368,590,875.46

707,202,110.00

(2)	Othercashpaymentsrelatingtooperatingactivities

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Rentalexpenses	133,233,956.70		65,964,390.47
Transportationcharges	52,564,735.76		51,095,840.37
Officeexpenses	49,295,234.19		40,572,923.16
Utilities	42,971,147.82		36,000,941.01
Storageexpenses	25,614,256.09		18,300,237.30
Entertainmentexpenses	21,403,877.53		13,954,525.81
Advertisingexpenses	19,109,323.81		17,580,245.59
Travelexpenses	6,383,853.69		3,667,923.26
Others	582,203,811.77		456,537,231.52

932,780,197.36

703,674,258.49

(3)	Othercashreceiptsrelatingtoinvestingactivities

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Receivedfromcapitalpool(1)	-		22,000,000.00
Others	54,984.60		40,000.00

54,984.60

22,040,000.00

(1)PudongPharmaceuticals,asubsidiaryofthemergerofenterprisesunderthecommoncontrolofGuodaPharmacyin

2020,andrecoveredthefundsoriginallycollectedtothecashpoolinthesameperiodin2020.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Notestoitemsincashflowstatement(Continued)

(4)	Othercashreceiptsrelatingtofinancingactivities

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Receivedloanprovidedbyminorityshareholders	69,150,000.00		149,900,000.00
Financingrestrictedmonetaryfundsreceived	34,940,555.62		128,449,840.06
ReceivedloanprovidedbySinmpharm	-		56,000,000.00

104,090,555.62

334,349,840.06

(5)	Othercashpaymentsrelatingtofinancingactivities

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Leasepayment	536,275,009.28		466,492,796.45
Bankfactoringpayable	251,370,239.59		281,994,828.44
Repaymentoftheloanprovidedbyminorityshareholders	50,400,000.00		304,000,000.00
InvestmentfundofShanghaiPudongPharmaceuticals	-		163,115,049.98
RepaymentoftheloanprovidedbySinmpharm	-		114,000,000.00
Purchaseofequityofminorityshareholders	-		52,309,117.11
Others	-		23,199,872.28

838,045,248.87

1,405,111,664.26

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

58.Supplementaryinformationofcashflowstatement

(1)	Reconciliationofnetprofittocashflowsfromoperatingactivities

Forthesixmonthended30June2021

Forthesixmonthended30June2020

Netprofit	907,994,454.49	806,212,542.53
Add:Provisionsforassetimpairment	29,081,900.70	23,324,119.82
Depreciationoffixedassets	78,401,603.02	61,147,847.16
Depreciationofright-of-useassets	493,632,821.29	388,208,804.99
Amortizationofintangibleassets	30,503,457.69	22,955,311.98
Amortizationoflong-termprepaidexpenses	79,098,080.34	51,031,038.60
Gains/(losses)ondisposaloffixedassets,intangibleassetsandotherlong-termassets	588,799.55	(4,658,628.06)
Lossefromobsolescenceofnon-currentassets	213,229.56	371,619.43
Financeexpenses	126,395,365.24	124,862,298.31
Investmentlosses	(156,587,066.32)	(105,206,349.26)
(Increase)/decreaseindeferredtaxassets	(10,036,816.58)	(1,027,041.92)
(Decrease)/increaseindeferredtaxliabilities	417,984.79	(2,343,415.67)
Decreaseininventories	(868,988,935.78)	(85,043,215.49)
Increaseinoperatingreceivablesitems	(3,060,847,945.57)	(2,023,296,252.84)
(Decrease)/increaseinoperatingpayableitems	3,561,205,596.30	(133,395,115.40)
Others	18,300,754.85	2,315,060,479.17

Netcashgeneratedfromoperatingactivities

1,229,373,283.57

1,438,204,043.35

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

58.Supplementaryinformationofcashflowstatement(Continued)

(2)	Movementofcash

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Cashattheendoftheperiod	5,537,606,217.43	8,000,562,022.16
Less:Cashatthebeginningoftheperiod	5,405,113,257.99	8,426,071,170.16

Netincreaseincash

132,492,959.44

(425,509,148.00)

(3)

Forthesixmonthsended

30June2021

Forthesixmonthsended

30June2021Cashandcashequivalentspaidforacquisitionsofsubsidiariesandotheroperatingunits

Cashandcashequivalentspaidforacquisitionsofsubsidiariesandotheroperatingunits	129,668,139.12
Incl:YunnanGuodaDishengPharmaceuticalCo.,Ltd.(“DishengPharmaceutical)	14,130,000.00
DishengChain.	71,400,000.00
32directly-operatedstoresofShanxiHuimingkangweiPharmaceuticalChainCo.,Ltd.	30,000,000.00
15directly-operatedstoresofSinopharmHoldingNantongPujiPharmacyChainCo.,Ltd.	14,138,139.12

Less:Cashandcashequivalentsheldbysubsidiariesandotheroperatingunitsattheacquisitiondate	28,717,501.71
Incl:DishengPharmaceutical	7,723,702.95
DishengChainCo.,Ltd.	20,993,798.76

Netcashoutflow/(inflow)onacquisitionofthesubsidiariesandotheroperatingunits

100,950,637.41

(4)	Cashandcashequivalent

30June2021

31December2020

Cash	5,537,606,217.43	5,405,113,257.99
Inclue:Cashonhand	4,898,795.54	6,707,125.90
Bankdepositsondemand	5,532,707,421.89	5,398,406,132.09

Endingbanlancecashandcashequivalent

5,537,606,217.43

5,405,113,257.99

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

59.Assetsunderrestrictedownershiporrightofuse

Bookvalue

Reasons

Cashandcashequivalents	338,186,269.94		Note1
Endorsednotesreceivableandreceivablefinancing	20,196,089.49		Note2

Note1:Asat30June2021,thetheGroup’scashandcashequivalentswithabookvalueofRMB338,186,269.94(December31,2020:RMB593,091,037.88)aremainlydepositsforbankacceptancebills,freezingoffundsandmedicalreservefunds,etc.Note2:Asat30June2021,theGrouphadreceivablesfinancingofRMB20,070,999.69andnotesreceivableofRMB125,089.80,endorsedbutnotdue(31December2020:receivablesfinancingofRMB23,843,867.66andnotesreceivableofRMB4,095,283.92)

60.Governmentgrants

358,382,359.43Type

Type	Amount	Itemsoffinancialstatements	Theamountrecordedintoprofitorlossforthecurrentperiod
Taxreturn	12,016,071.91	Otherincome	12,016,071.91
Stabilitationallowances	11,572,570.54	Otherincome/Deferredincome	11,572,570.54
Constructionfundofthemodernsupplychainsysteminthecentralcirculationfieldin2018	2,143,819.51	Otherincome/Deferredincome	2,143,819.51
SubsidiesfromfoodandstrategicreservesadministrationofGuangdongprovince	1,946,573.87	Otherincome	1,946,573.87
MedicalReserveSubsidiesfromShenzhenmunicipalhealthcommission	1,437,149.37	Otherincome	1,437,149.37
Governmentsupportfund	1,361,117.00	Otherincome	1,361,117.00
ResettlementCompensationofNo.7ZhongyuRoad	1,349,204.28	Non-operatingincome/Deferredincome	1,349,204.28
EnterpriseEconomicReward	733,317.46	Otherincome/Deferredincome	733,317.46
GovernmentgrantsforCOVID-19	422,595.35	Otherincome	422,595.35
VATreductionorexemptionforself-employmentretiredsoldiers	300,870.00	Otherincome	300,870.00
Guangzhoulogisticsstandardizationpilotprojectallowance	273,123.42	Otherincome/Deferredincome	273,123.42

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)60Governmentgrants(Continued)

Type	Amount	Itemsoffinancialstatements	Theamountrecordedintoprofitorlossforthecurrentperiod
Specialfundsforindustrialtransformationandupgradingindualizedintegrationprojects	224,520.24	Otherincome/Deferredincome	224,520.24
RentsubsidyfromGuangzhouHigh-techIndustrialDevelopmentZone	216,700.85	Otherincome	216,700.85
ServiceIndustryEnterpriseMarketDevelopmentSubsidyProjectinNanning	200,000.00	Otherincome	200,000.00
SubsidyfundformedicinereserveinFoshan	150,000.00	Otherincome	150,000.00
Comprehensiveexperimentalmodernserviceindustrysubsidies	150,000.00	Otherincome/Deferredincome	150,000.00
LogisticsprojectconstructionsupportfundfromNanningeconomicdevelopmentcommittee	93,203.22	Otherincome/Deferredincome	93,203.22
Fundsforthelogisticsinformationplatformprojectofthepharmaceuticalstoragecentre	71,428.56	Otherincome/Deferredincome	71,428.56
Guangzhouspecialsubsidyforcommerceandtradecirculationindustry	50,000.04	Otherincome/Deferredincome	50,000.04
SpecialFundfortheconstructionofEnterpriseResearchanddevelopmentInstitutionsinGuangzhou	44,705.94	Otherincome/Deferredincome	44,705.94
HousepurchasesubsidyfromthegovernmentofTiexiDistrict,Shenyang	40,561.32	Otherincome/Deferredincome	40,561.32
SubsidyforindustrializationapplicationprojectofpharmaceuticalcoldchainpatentincubatorfromGuangzhouliwandistrict	12,499.98	Otherincome/Deferredincome	12,499.98
Medicalintelligentsupplychaine-commerceserviceplatformtechnologyprojectsubsidyfromGuangzhouliwandistrict	9,861.24	Otherincome/Deferredincome	9,861.24
Othergovernmentgrants	543,447.58	Otherincome/Financecosts/Administrative/Sellingexpenses/Deferredincome	543,447.58

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation

1.Businesscombinationnotinvolvingenterprisesundercommoncontrol

1.1AcquiringDishengPharmaceutical.AndDishengchain

Acquiree

Thedateofacquiringtheright

Acquistioncostoftheright

ProportionofrightsownedbytheGroup

Methodsofacquisitiontheright

Acquisitiondate

Thebasisfordeterminingthedateofpurchase

Incomeearnedfromtheacquisitiondateto30June2021

Netprofitearnedfromtheacquisitiondateto30June2021

DishengPharmaceutical(a)	15March2021	14,130,000.00	70.00%	Acquisition	15March2021	Thepurchaseractuallyacquirescontrolovertheacquiredcompany	88,507,060.89	964,797.79
DishengchainCo.,Ltd.(b)	15March2021	238,000,000.00	70.00%	Acquisition	15March2021	Thepurchaseractuallyacquirescontrolovertheacquiredcompany	116,656,427.71	12,161,419.65

Additionalclarification：

(a)GuodaPharmacy,asubsidiaryoftheCompany,acquired70%sharesofDishengPharmaceuticalfromXishuangbannaDishengPharmaceuticalCo.,LtdbyRMB14,130,000.00.Theacquisitionwascompletedon15March2021.(b)GuodaPharmacy,asubsidiaryoftheCompany,acquired70%sharesofDishengchainfromXishuangbannaDishengPharmaceuticalCo.,LtdbyRMB238,000,000.00.Theacquisitionwascompletedon15March2021.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation(Continued)

1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)

1.2Acquisitioncostsandgoodwillarisingfromacquisition

Acquisitioncosts

DishengPharmaceutical

Dishengchain

Cash	14,130,000.00	238,000,000.00
Acquisitioncosts	14,130,000.00	238,000,000.00
Less:thefairvaluesofacquiredidentifiablenetassets	14,708,610.41	85,842,064.48

Goodwillarisingfromacquisition/Acquisitioncostsexceedingthefairvaluesofacquiredidentifiablenetassets

(578,610.41)

152,157,935.52

Thefairvalueofthecostofacquisitionisrecognizedaccordingtothepriceactuallypaid.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation(Continued)

1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)

1.3Thefairvaluesofacquiredidentifiableassetsandliabilitiesontheacquisitiondate

DishengPharmaceutical		Dishengchain
Fairvalue	Carryingamount	Fairvalue	Carryingamount

Cashandbankbalances	7,723,702.95	7,723,702.95	20,993,798.76	20,993,798.76
Accountsreceivable	30,471,781.24	30,471,781.24	23,414,107.18	23,414,107.18
Inventories	19,829,957.32	19,829,957.32	45,829,051.06	45,829,051.06
Fixedassets	1,335,373.90	1,335,373.90	2,000,261.19	2,000,261.19
Intangibleassets	-	-	40,661,415.51	221,415.51
Advancestosuppliers	2,318,717.10	2,318,717.10	91,212.94	91,212.94
Otherreceivables	2,129,844.69	2,129,844.69	3,414,254.84	3,414,254.84
Othercurrentassets	5,329,820.93	5,329,820.93	4,627,358.05	4,627,358.05
Long-termprepaidexpenses	724,925.12	724,925.12	7,783,811.55	7,783,811.55
Right-of-useassets	-	-	41,047,873.29	41,047,873.29
Deferredtaxassets	31,947.59	31,947.59	249,467.13	249,467.13
Accountspayable	47,041,828.70	47,041,828.70	13,321,430.50	13,321,430.50
Deferredtaxliabilities	-	-	6,066,000.00	-
Contractliabilities	123,430.92	123,430.92	1,818,156.15	1,818,156.15
Employeebenefitspayable	490,428.65	490,428.65	5,316,750.15	5,316,750.15
Taxpayable	408,921.64	408,921.64	5,707,308.60	5,707,308.60
Otherpayables	819,160.34	819,160.34	7,477,165.09	7,477,165.09
Non-currentliabilitiesduewithinoneyear	-	-	15,482,505.32	15,482,505.32
Leaseliabilities	-	-	12,291,775.00	12,291,775.00
Netassets	21,012,300.59	21,012,300.59	122,631,520.69	88,257,520.69
Less:equityofminorityshareholders	6,303,690.18	6,303,690.18	36,789,456.21	26,477,256.21

Netassetsacquired

14,708,610.41

14,708,610.41

85,842,064.48

61,780,264.48

Methodsfordeterminingthefairvalueofidentifiableassetsandliabilities:

Itisrecognizedaccordingtotheappraisal.

VI.Changesinscopeofconsolidation(Continued)

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

2.Others

2.1Acquisitionofthemanagementrightof15directly-managedstoresofSinopharmholding

NantongPujipharmacychainCo.,Ltd.(hereafterreferdas“NantongPuji”)YangzhouGuoda,asubsidiaryoftheCompany,obtained15directly-managedstoresofNantongPujiwithcashofRMB14,138,139.12.Theacquisitiondateisdeterminedas2March2021.Aftertheacquisition,goodwillofRMB11,498,100.00wasformed.Thefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesof15directly-managedstoresofNantongPujiontheacquisitiondatearepresentedasfollows:

NantongPuji		2March2021	2March2021
		Fairvalue	Carryingamount

Fixedassets		788,300.00	788,300.00
Inventories		1,751,439.12	1,751,439.12
Long-termprepaidexpenses		100,300.00	100,300.00
Total		2,640,039.12	2,640,039.12
Pricepaid		14,138,139.12	14,138,139.12
Goodwillarisingfromacquisition		11,498,100.00	11,498,100.00

Operatingresultsandcashflowsof15directly-managedstoresofNantongPujifortheperiodfromtheacquisitiondatetotheendoftheJunearepresentedasfollows:

2March2021to30June2021Operatingrevenue

Operatingrevenue		7,016,410.53
Netprofit		303,795.13
cashflowsfromoperatingactivities		871,784.36

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation(Continued)

2.Others(Continued)

2.2Acquisitionofthemanagementrightof32directly-managedstoresofShanxiHuiminKangwei

pharmacychainCo.,Ltd.(hereafterreferdas“ShanxiHuiminKangweipharmacy”)GuodaWanminHuiminKangweipharmacyLuliangCo.,Ltd.(hereafterreferdas“HuiminLvliang”),asubsidiaryoftheCompany,obtained32directly-managedstoresofShanxiHuiminKangweipharmacywithcashofRMB30,000,000.00.Theacquisitiondateisdeterminedas8February2021.Aftertheacquisition,goodwillofRMB20,970,000.00wasformed.Thefairvaluesandcarryingamountsofidentifiableassetsandliabilitiesof32directly-managedstoresofShanxiHuiminKangweipharmacyontheacquisitiondatearepresentedasfollows:

ShanxiHuiminKangweipharmacy		8February2021	8February2021
		Fairvalue	Carryingamount

Fixedassets		1,740,000.00	1,740,000.00
Inventories		7,290,000.00	7,290,000.00
Total		9,030,000.00	9,030,000.00
Pricepaid		30,000,000.00	30,000,000.00
Goodwillarisingfromacquisition		20,970,000.00	20,970,000.00

Operatingresultsandcashflowsof32directly-managedstoresofShanxiHuiminKangweipharmacyfortheperiodfromtheacquisitiondatetotheendoftheJunearepresentedasfollows:

8February2021to30June2021Operatingrevenue

Operatingrevenue		15,240,595.69
Netprofit		292,600.01
cashflowsfromoperatingactivities		209,519.17

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities

1.Interestsininsubsidiaries

(1)	ThecompositionoftheGroup:

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect

SinopharmGuilin	Guilin	Guilin	Commercial	-	100.00%	Establishment
SinopharmBaise	Baise	Baise	Commercial	-	100.00%	Establishment
SinopharmHoldingZhongshanCo.,Ltd.	Zhongshan	Zhongshan	Commercial	-	100.00%	Establishment
SinopharmGuigang	Guigang	Guigang	Commercial	-	100.00%	Establishment
SinopharmBeihai	Beihai	Beihai	Commercial	-	100.00%	Establishment
SinopharmHoldingGuangzhouMedicalTreatment	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
SinopharmHoldingShenzhenJianminCo.,Ltd.(hereafterreferedas"SinopharmShenzhenJianmin")	Shenzhen	Shenzhen	Commercial	100.00%	-	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd.(hereafterreferdas“SinopharmTraditional&HerbalMedicine")	Shenzhen	Shenzhen	Commercial	100.00%	-	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenLogisticsCo.,Ltd.(hereafterreferedas“SinopharmShenzhenLogistics")	Shenzhen	Shenzhen	Services	100.00%	-	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuangzhou	Guangzhou	Guangzhou	Commercial	100.00%	-	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongHengxingCo.,Ltd.	Guangzhou	Guangzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmYulin	Yulin	Yulin	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
SinopharmLiuzhou	Liuzhou	Liuzhou	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
GuangdongHuixinInvestmentCo.,Ltd.	Guangzhou	Guangzhou	Service		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingFoshanCo.,Ltd.	Foshan	Foshan	Commercial		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongYuexingCo.,Ltd.(hereafterreferedas“SinopharmGuangdongYuexing”)	Guangzhou	Guangzhou	Commercial		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongLogisticsCo.,Ltd.	Guangzhou	Guangzhou	Service		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuangxi	Nanning	Nanning	Commercial	100.00%		Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiLogistic	Nanning	Nanning	Service		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmWuzhou	Wuzhou	Wuzhou	Commercial		99.90%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmDongguan	Dongguan	Dongguan	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmZhanjiang	Zhanjiang	Zhanjiang	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmYanfeng	Shenzhen	Shenzhen	Commercial	51.00%		Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmMeizhou	Meizhou	Meizhou	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHuizhou	Huizhou	Huizhou	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmZhaoqing	Zhaoqing	Zhaoqing	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmJiangmen	Jiangmen	Jiangmen	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmShaoguan	Shaoguan	Shaoguan	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingShantouCo.,Ltd	Shantou	Shantou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
FoshanNanhai	Foshan	Foshan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiUptodate&SpecialMedicinesCo.,Ltd.	Foshan	Foshan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiMedicineCo.,Ltd.	Foshan	Foshan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(a)	Guangzhou	Guangzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SouthPharma&Trade	Guangzhou	Guangzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmZhuhai	Zhuhai	Zhuhai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmMaoming	Maoming	Maoming	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
SinopharmHoldingGZMedicalTechnologyCo.,Ltd.	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
SinopharmHoldingGZMedicalSupplyChainServiceCo.,Ltd.	Guangzhou	Guangzhou	Commercial	-	51.00%	Establishment
SinopharmHoldingHeyuanCo.,Ltd.	Heyuan	Heyuan	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
GuodaPharmacy	Shanghai	Shanghai	Commercial	60.00%	-	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuoda.	Shanghai	Shanghai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGuodaPharmacyChainStoreCo.,Ltd.	Beijing	Beijing	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
TianjinGuodaPharmacyChainStoreCo.,Ltd.	Tianjin	Tianjin	Commercial	-	80.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiConsulting	Nanning	Nanning	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyGuangdongCo.,Ltd.	Shenzhen	Shenzhen	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiGuoda	Liuzhou	Liuzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangGuoda	Hangzhou	Hangzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
YangzhouGuoda	Yangzhou	Yangzhou	Commercial	-	93.68%	Businesscombinationsinvolvingentitiesundercommoncontrol
NingxiaGuoda	Yinchuan	Yinchuan	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
NanjingGuoda	Nanjing	Nanjing	Commercial	-	60.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShandongGuoda	Linyi	Linyi	Commercial	-	55.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShenyangGuoda	Shenyang	Shenyang	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
FujianChain	Xiamen	Xiamen	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
AnhuiGuodaPharmacyChainStoreCo.,Ltd.	Hefei	Hefei	Commercial	-	60.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
QuanzhouGuoda	Quanzhou	Quanzhou	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanmin	Taiyuan	Taiyuan	Commercial	-	85.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
HunanGuoda	Hengyang	Hengyang	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
LiyangGuoda	Liyang	Liyang	Commercial	-	80.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
HenanGuoda	Pingdingshan	Pingdingshan	Commercial	-	60.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaGuoda	Hohhot	Hohhot	Commercial	-	96.70%	Businesscombinationsinvolvingentitiesundercommoncontrol
HebeiLerentang	Shijiazhuang	Shijiazhuang	Commercial	-	60.00%	Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
JiangmenGuoda	Jiangmen	Jiangmen	Commercial	-	65.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaYiyuan	Taiyuan	Taiyuan	Commercial	-	80.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
XinjiangGuoda	Urumqi	Urumqi	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ForMeMedicines	Shanghai	Shanghai	Commercial	-	97.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiForMeYiXingPharmacyChainStoreCo.,Ltd.	Shanghai	Shanghai	Commercial	-	99.76%	Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGoldenElephant	Beijing	Beijing	Commercial	-	53.13%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiTongfengPharmacyLogisticsCo.,Ltd.	Taiyuan	Taiyuan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ChangzhiWanmin	Changzhi	Changzhi	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanminClinicManagementChainCo.,Ltd.	Taiyuan	Taiyuan	Medicalservices	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd.	Shanghai	Shanghai	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangIntlmedicinePharmacyDongshanCo.,Ltd.	Hangzhou	Hangzhou	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiDongshengGuoda	Shanghai	Shanghai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuodaDrugStore(Shenzhen)ChainCo.,Ltd.	Shenzhen	Shenzhen	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
GuodaGuangzhouChain	Guangzhou	Guangzhou	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodongChineseTraditionalMedicineClinicCo.,Ltd.	Shanghai	Shanghai	Medicalclinic	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaDongxinPharmacyChainStoreCo.,Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiYutaitangChineseTraditionalMedicineClinicCo.,Ltd.	Shanghai	Shanghai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SanheLiyangGoldenElephantPharmacyCo.,Ltd.	Langfang	Langfang	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
XiaoyiWanmin	Xiaoyi	Xiaoyi	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaHulunBuirGuoda	HulunBuir	HulunBuir	Commercial	-	51.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ForMeXuhui	Shanghai	Shanghai	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaUlanqabGuoda.	Ulanqab	Ulanqab	Commercial	-	60.00%	Establishment
TaishanGuoda	Taishan	Taishan	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmLerentangShijiazhuangPharmaceutical	Shijiazhuang	Shijiazhuang	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ManchuriaGuoda	Manchuria	Manchuria	Commercial	-	51.00%	Establishment
SinopharmGuodaDrugStoreAnshanChainCo.,Ltd.	Anshan	Anshan	Commercial	-	51.00%	Establishment

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
SinopharmHoldingGuodaYongshengDrugStore（Shanghai）Co.,Ltd.	Shanghai	Shanghai	Commercial	-	55.00%	Establishment
SinopharmHoldingFoshanMedicalConsumablesSupplyChainCo.,Ltd.	Foshan	Foshan	Commercial	-	70.00%	Establishment
SinopharmGuangxiSupplyChain	Nanning	Nanning	Commercial	-	30.60%	Establishment
ShanghaiHaohaiGuoda	Shanghai	Shanghai	Commercial	-	51.00%	Establishment
SinopharmBaiyiPharmacy	Nanning	Nanning	Commercial	-	51.00%	Establishment
SinopharmHezhou	Hezhou	Hezhou	Commercial	-	100.00%	Establishment
SinopharmHoldingNationalPharmacyZhengzhouChainCo.,Ltd.	Zhengzhou	Zhengzhou	Commercial	-	60.00%	Establishment
ShanghaiRuijingGuoda	Shanghai	Shanghai	Commercial	-	55.00%	Establishment
FujianGuodaPharmaceuticalCo.,Ltd.	Xiamen	Xiamen	Commercial	-	100.00%	Establishment
SinopharmQinzhou	Qinzhou	Qinzhou	Commercial	-	100.00%	Establishment
SinopharmHechi	Hechi	Hechi	Commercial	-	100.00%	Establishment
SinopharmHoldingGuangzhouHuaduCo.,Ltd.	Guangzhou	Guangzhou	Commercial	-	70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.	Taiyuan	Taiyuan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
TaiyuanTongxinliGuodaPharmacyCo.,Ltd.	Taiyuan	Taiyuan	Commercial	-	100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
Bayannaoer	Bayannaoer	Bayannaoer	Commercial	-	80.00%	Establishment
GuodaInnerMongoliaPharmaceutical	Hohhot	Hohhot	Commercial	-	100.00%	Establishment
SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.	Chaoyang	Chaoyang	Commercial	-	51.00%	Establishment
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd(b)(“AccordDevices”)	Shenzhen	Shenzhen	Commercial	60.00%		Establishment
SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.	Heyuan	Heyuan	Commercial		70.00%	Establishment
LiaoningGuodaPharmaceuticalCo.,Ltd.	Shenyang	Shenyang	Commercial		100.00%	Establishment
SinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.	Zhanjiang	Zhanjiang	Commercial		60.00%	Establishment
GuangzhouMedicine	Guangzhou	Guangzhou	Commercial		70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
Guodapharmacy(Chaoyang)RenaiCo.,Ltd.	Chaoyang	Chaoyang	Commercial		51.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
GuodaPu’erSongmao	Puer	Puer	Commercial		60.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
ShanghaiDingqun	Shanghai	Shanghai	Medicalservices		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.	Changchun	Changchun	Commercial		85.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinYihe	Changchun	Changchun	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinDonglongMedicalLogistisdistributionCo.,Ltd.	Changchun	Changchun	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
YushuDingheMedicalTechnologyCo.,Ltd.	Changchun	Changchun	Commercial		51.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
GuodapharmacyJilinCo.,Ltd.(c)	Changchun	Changchun	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
YanjiXiangheMedicalCo.,Ltd.	Yanji	Yanji	Commercial		51.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
PudongPharmaceuticals	Shanghai	Shanghai	Commercial		75.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiYanghetangPharmaceuticalChainManagementCo.,Ltd.	Shanghai	Shanghai	Commercial		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiPudongYanghetangTCMClinicCo.,Ltd.	Shanghai	Shanghai	Commercial		100.00%	Businesscombinationsinvolvingentitiesundercommoncontrol
GuodaPharmacy(Rizhao)Co.,Ltd.	Rizhao	Rizhao	Commercial		100.00%	Establishment
LiaoningHealthPharmacy	Shenyang	Shenyang	Commercial		100.00%	Establishment
BeijingJinxiangGuoxingpharmaceuticalchainCo.,Ltd.	Beijing	Beijing	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmAccord(Yangjiang)MedicineCo.,Ltd.	Yangjiang	Yangjiang	Commercial		70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningGuodapharmacy	Dalian	Dalian	Commercial		100.00%	Establishment
LiaoningHuludaoGuodapharmacyCo.,Ltd(d)	Huludao	Huludao	Commercial		100.00%	Establishment
JinzhongYuciGuodaWanminclinicCo.,Ltd	Jinzhong	Jinzhong	Commercial		100.00%	Establishment
GuodaJianfeng(Jiangmen)pharmaceuticalchainCo.,Ltd	Jiangmen	Jiangmen	Commercial		51.00%	Establishment
ChengdaFangyuanPharmaceuticalGroupCo.,Ltd	Shenyang	Shenyang	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
ShandongChengdaFangyuanpharmaceuticalchainCo.,Ltd	Qingdao	Qingdao	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanpharmaceuticalchainCo.,Ltd	Shenyang	Shenyang	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningZhichengXingdaadvertisingmediaCo.,Ltd	Benxi	Benxi	Medicalservices		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
ChengdaFangyuan(Liaoning)newdrugspecialdrugchainCo.,Ltd	Shenyang	Shenyang	Commercial		80.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanvocationalandtechnicaltrainingschool	Shenyang	Shenyang	Medicalservices		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Subsidiaries	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding		Waysofacquisition
				Direct	Indirect
LiaoningChengdaFangyuanPharmaceuticalCo.,Ltd	Shenyang	Shenyang	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
DalianZhengdaPharmaceuticalCo.,Ltd	Dalian	Dalian	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
HebeiChengdaFangyuanpharmaceuticalchainCo.,Ltd	Qnghuangdao	Qnghuangdao	Commercial		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanPharmaceuticalLogisticsCo.,Ltd	Shenyang	Shenyang	Medicalservices		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanLogisticsCo.,Ltd	Shenyang	Shenyang	Medicalservices		100.00%	Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinChengdaFangyuanPharmaceuticalCo.,Ltd	Changchun	Changchun	Commercial		80.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro
JilinChengdaFangyuanpharmaceuticalchainCo.,Ltd	Changchun	Changchun	Commercial		99.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro
InnerMongoliaChengdaFangyuanMedicine	Chifeng	Chifeng	Commercial		70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro
InnerMongoliaChengdaFangyuanpharmaceuticalchainCo.,Ltd	Chifeng	Chifeng	Commercial		99.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro
HuiminLuliang(e)	Lvliang	Lvliang	Commercial		51.00%	Establishment
DishengPharmaceutical(f)	Xishuangbanna	Xishuangbanna	Commercial		70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro
Dishengchain(g)	Xishuangbanna	Xishuangbanna	Commercial		70.00%	Businesscombinationsinvolvingentitiesnotundercommoncontro

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(1)	ThecompositionoftheGroup(Continued):

Descriptionofshareholdingratioinsubsidiariesdifferentfromvotingratio:

OnJanuary4,2018,thegroup,Guorunmedicalsupplychainservice(Shanghai)Co.,Ltd.(hereafterreferredtoas"Guorunmedical")andGuangxideyiyuanMedicalInvestmentCenter(limitedpartnership)jointlyfundedtheestablishmentofSinopharmholdingmedicalsupplychainservice(Guangxi)Co.,Ltd.,withcontributionsofRMB6.12million,RMB5.88millionandRMB8millionrespectively.Guorunmedicalentrustsitsvotingrighttothecompany,andthecompanyholds60%ofthevotingrightofSinopharmholdingmedicalsupplychainservices(Guangxi)Co.,Ltd.

a.On20April2021,GuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.wasrenamedasSinopharmHolding

GuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.

b.On12July2021,SinopharmAccordMedicalSupplyChain(Shenzhen)Co.,Ltd.wasrenamedasSinopharmAccord

MedicalDevices(Shenzhen)Co.,Ltd.c.On5July2021,GuodapharmacyJilinCo.,Ltd.hascompletedtheindustrialandcommercialcancellation,andthecancellationannouncementperiodisfromJune10,2021toJune30,2021.

d.On14December2020,theGroupinvestedRMB1,000.00thousandtosetupLiaoningHuludaoGuodapharmacyCo.,Ltd.

Asat30June2021,RMB500.00thousandwaspaid.

e.On28December2020,theGroupandWenshuiWeikangTradingCo.,Ltd.investedRMB16,320.00thousandand

RMB15,680.00thousandtosetupGuodaWanminHuiminKangweipharmacyLuliangCo.,Ltd,thegroupholds51%ofits

equity.Asat30June2021,paymenthasbeencompleted.

f.On15March2021,theGroupacquired70%equityinDishengPharmaceuticafromXishuangbannaDishengPharmaceutical

Co.,Ltd.forRMB14,130.00thousand,whichformedabusinesscombinationnotinvolvingenterprisesundercommoncontrol.

Theacquisitionwascompletedon15March2021andwasincludedinthescopeofconsolidation.

g.On15March2021,theGroupacquired70%equityinDishengchainfromXishuangbannaDishengPharmaceuticalCo.,Ltd.

forRMB238,000.00thousand,whichformedabusinesscombinationnotinvolvingenterprisesundercommoncontrol.The

acquisitionwascompletedon15March2021andwasincludedinthescopeofconsolidation.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII	Interestsinotherentities(Continued)

1.	Interestsinsubsidiaries(Continued)

(2)Importantnon-whollyownedsubsidiary

Subsidiaries	Minorityshareholdingratio	Profitorlossattributabletominorityshareholdersinthecurrentperiod	Dispatchofdividendstominorityshareholdersinthecurrentperiod	Minorityshareholders'equity
GuodaPharmacy	40.00%	79,549,416.99	-	2,028,470,458.01

(3)Keyfinancialinformationofimportantnon-whollyownedsubsidiaries

Subsidiaries	30June2021						31December2020
	Currentassets	Non-currentassets	Totalassets	Currentliabilities	Non-currentliabilities	Totalliabilities	Currentassets	Non-currentassets	Totalassets	Currentliabilities	Non-currentliabilities	Totalliabilities
GuodaPharmacy	9,335,400,322.92	7,008,855,001.21	16,344,255,324.13	9,037,608,731.16	1,459,822,617.08	10,497,431,348.24	8,886,545,970.79	6,570,327,751.04	15,456,873,721.83	8,541,421,518.15	1,375,989,559.14	9,917,411,077.29

Subsidiaries	Forthesixmonthsended30June2021				Forthesixmonthsended30June2020
	Operatingrevenue	Netprofit	Totalcomprehensiveincome	Cashflowfromoperatingactivities	Operatingrevenue	Netprofit	Totalcomprehensiveincome	Cashflowfromoperatingactivities
GuodaPharmacy	10,841,326,194.08	263,262,365.37	263,262,365.37	786,526,215.87	8,613,020,309.15	248,037,573.90	248,037,573.90	470,794,143.55

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates

	Principalplaceofbusiness	Placeofincorporation	Natureofbusiness	Shareholding(%)		Accounting
				Direct	Indirect
Associates

MainLuckPharmaceutical	Shenzhen	Shenzhen	Manufacturing	35.19%	-	Equity
ZhijunSuzhou	Suzhou	Suzhou	Manufacturing	33.00%	-	Equity
SinopharmZhijun	Shenzhen	Shenzhen	Manufacturing	49.00%	-	Equity
ZhijunTrade	Shenzhen	Shenzhen	Commercial	49.00%	-	Equity
ZhijunPingshan	Shenzhen	Shenzhen	Manufacturing	49.00%	-	Equity
SinopharmShyndec	Shanghai	Shanghai	Businessserviceindustry	16.28%	-	Equity
ShanghaiBeiyi	Shanghai	Shanghai	Commercial	-	26.00%	Equity
ShanghaiLiyi	Shanghai	Shanghai	Commercial	-	35.00%	Equity
GuangdongJienuo	Guangzhou	Guangzhou	Commercial	-	29.00%	Equity
Dongyuanaccord	Heyuan	Heyuan	Commercial	-	45.00%	Equity
ShanghaiRenbei	Shanghai	Shanghai	Commercial	-	30.00%	Equity
GuangdongJianhui	Zhanjiang	Zhanjiang	Public-Private-Partnership	-	10.00%	Equity

Explicationoftheshareholdingratioofajointventurediffersfromtheproportionofvotingrights:

AccordingtothearticlesofassociationofGuangdongJianhuicompany,theboardofdirectorsiscomposedoffivedirectors,oneofwhomisappointedbythecompany,accountingfor20%ofthevotingrights.Therefore,thegrouphasasignificantimpactonGuangdongJianhui,whichisanassociateofthegroup.Basisforholdinglessthan20%ofthevotingrightsbuthavingsignificantinfluence,orholding20%ormoreofthevotingrightsbutnothavingsignificantinfluence:

SinopharmShyndechasestablishedaboardofdirectors,whichisresponsibletotheshareholders'meeting.Ithasnine

members,ofwhichthegroupappointsonedirector.Theresolutionoftheboardofdirectorsisoneperson,onevote,accountingfor11.11%ofitsvotingrights.TheGrouphasasignificantinfluenceonSinopharmShyndec.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates(Continued)

Mainfinancialinformationofimportantassociates：

30June2021/Forthesixmonthsended30June2021			1January2020/Forthesixmonthsended30June2020
SinopharmShyndec	ZhijunMedicine	MainLuckPharmaceutical	SinopharmShyndec	ZhijunMedicine	MainLuckPharmaceutical

Currentassets	11,543,472,621.58	1,310,424,165.50	1,150,192,274.24	10,162,475,190.65	1,176,812,039.37	1,076,146,345.00
Non-currentassets	8,262,496,257.36	241,317,313.08	120,177,914.28	8,087,979,595.07	238,613,242.87	124,495,504.04
Totalassets	19,805,968,878.94	1,551,741,478.58	1,270,370,188.52	18,250,454,785.72	1,415,425,282.24	1,200,641,849.04
Currentliabilities	7,742,313,859.56	621,599,563.08	246,923,526.16	6,194,362,158.11	541,117,019.88	275,509,215.17
Non-currentliabilities	1,879,414,378.30	4,398,795.45	8,120,000.00	2,236,726,740.99	5,822,904.95	8,120,000.00
Totalliabilities	9,621,728,237.86	625,998,358.53	255,043,526.16	8,431,088,899.10	546,939,924.83	283,629,215.17
Non-controllinginterests	1,731,996,575.52	-	-	1,688,157,191.81	-	-
Shareholders’equityattributabletoshareholdersoftheparent	8,452,244,065.56	925,743,120.05	1,015,326,662.36	8,131,208,694.81	868,485,357.41	917,012,633.87
Portionofnetassetscalculatedbyshareholdingratio	1,376,025,333.87	453,614,128.80	357,293,452.48	1,323,760,775.52	425,557,825.11	322,696,745.87
Carryingvalueofequityinvestmentinjointventures	1,376,025,333.87	453,614,128.80	357,293,452.48	1,323,760,775.52	425,557,825.11	322,696,745.87
Operatingrevenue	7,632,136,688.61	746,410,222.02	476,292,028.69	6,211,855,587.54	659,730,341.51	475,122,136.41
Netprofit	541,049,057.92	57,257,762.64	98,308,111.37	427,914,866.04	35,512,234.88	98,199,603.82
Totalcomprehensiveincome	541,447,429.53	57,257,762.64	98,308,111.37	428,665,399.75	35,512,234.88	98,199,603.82
Dividendsreceivedfromjointventuresthisperiod	16,714,220.20	-	-	16,714,220.20	-	63,342,000.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates(Continued)

Summaryfinancialinformationofunimportantjointventuresandassociatedenterprises：

Excesslossesincurredbyjointventuresorassociates:

	Accumulatedunrecognizedlossesinthepreviousperiod	Unrecognizedlossinthecurrentperiod(ornetprofitsharedinthecurrentperiod)	Accumulatedunrecognizedlossesattheendoftheperiod
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd	(11,193,619.06)	-	(11,193,619.06)

On11May2021,thecourtruledthatSinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.wasbankruptanddesignatedthelocalgovernmentasthebankruptcyadministrator.Atpresent,itisinthestageofcreditor'srightdeclaration.

	30June2021/Forthesixmonthsended30June2021	1January2020/Forthesixmonthsended30June2020
associatedenterprises：
Carryingvalueofequityinvestment	240,672,877.06	215,004,281.49
Netprofit	25,668,595.57	28,478,625.69
Totalcomprehensiveincome	25,668,595.57	28,478,625.69

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments

1.Classificationoffinancialinstruments

30June2021:

Financialassets	Financialassetsatfairvaluethroughprofitorloss	Financialassetsatamortisedcost	Financialassetsatfairvaluethroughothercomprehensiveincome		Total
	Mandatorilyrequired		Mandatorilyrequired	Designated

Cashandbankbalances	-	5,876,638,427.56	-	-	5,876,638,427.56
Notesreceivable	-	606,070,192.39	-	-	606,070,192.39
Accountsreceivable	-	17,761,176,449.25	-	-	17,761,176,449.25
Receivablefinancing	-	-	345,906,887.55	-	345,906,887.55
Otherreceivables	-	661,339,404.62	-	-	661,339,404.62
Othernon-currentfinancialassets	117,974,908.51	-	-	-	117,974,908.51
Otherequityinstrumentinvestment	-	-	-	99,488,340.28	99,488,340.28

117,974,908.51

24,905,224,473.82

345,906,887.55

99,488,340.28

25,468,594,610.16

Financialliabilities

Financialliabilitiesatamortisedcost

Short-termborrowings		4,632,933,904.39
Notespayable		6,780,425,089.17
Accountspayable		9,642,504,836.50
Otherpayables		1,530,963,581.23
Non-currentliabilitiesduewithin1year		798,170,618.10
Leaseliabilities		1,361,131,352.80
Long-termborrowings		61,633,794.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

1.Classificationoffinancialinstruments(Continued)31December2021:

Financialassets	Financialassetsatfairvaluethroughprofitorloss	Financialassetsatamortisedcost	Financialassetsatfairvaluethroughothercomprehensiveincome		Total
	Mandatorilyrequired		Mandatorilyrequired	Designated

Cashandbankbalances	-	5,998,204,295.87	-	-	5,998,204,295.87
Notesreceivable	-	622,115,477.04	-	-	622,115,477.04
Accountsreceivable	-	13,799,971,014.22	-	-	13,799,971,014.22
Receivablefinancing	-	-	1,404,987,700.38	-	1,404,987,700.38
Otherreceivables	-	535,228,747.69	-	-	535,228,747.69
Othernon-currentfinancialassets	120,972,350.24	-	-	-	120,972,350.24
Otherequityinstrumentinvestment	-	-	-	99,488,340.28	99,488,340.28

120,972,350.24

20,955,519,534.82

1,404,987,700.38

99,488,340.28

22,580,967,925.72

Financialliabilities

Financialliabilitiesatamortisedcost

Short-termborrowings		1,612,187,020.12
Notespayable		7,520,165,274.69
Accountspayable		7,697,451,142.50
Otherpayables		1,599,166,881.14
Non-currentliabilitiesduewithin1year		748,732,059.89
Leaseliabilities		1,303,054,163.90
Long-termborrowings		31,637,173.89

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

2.Transferoffinancialassets

TransferredfinancialassetsthatarenotderecognisedintheirentiretyAsat30June2021,theGrouphadendorsedcommercialacceptancebills(the"EndorsedBills")withacarryingamountofRMB125,089.80(30June2020:4,095,283.92)tocertainofitssupplierstosettleaccountspayableduetosuchsuppliersandtheGrouphadendorsedbankacceptancebillswithacarryingamountofRMB20,070,999.69(30June2020:23,843,867.66)tocertainofitssupplierstosettleaccountspayableduetosuchsuppliers.IntheopinionoftheGroup,theGrouphasretainedsubstantiallyalltherisksandrewards,whichincludedefaultrisksrelatingtosuchEndorsedBillsandDiscountedBills.Accordingly,itcontinuedtorecognisethefullcarryingamountsofthoseBillsandtheassociatedaccountspayablesettled.SubsequenttotheEndorsementandDiscount,theGroupdidnotretainanyrightsontheuseofthoseBills,includingthesale,transferorpledgeofthoseBillstoanyotherthirdparties.Asat30June2021,thetotalcarryingvalueofaccountspayablesettledbytheGroupwasRMB20,196,089.49(31December2020:RMB27,939,151.58).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

2.Transferoffinancialassets(Continued)

TransferredfinancialassetsthatarederecognisedintheirentiretyinwhichcontinuinginvolvementexistsAsat30June2021,theGrouphadendorsedbankacceptancebills(the"EndorsedBills")withacarryingamountofRMB754,753,155.51(31December2020:RMB1,283,369,787.75)tocertainofitssupplierstosettleaccountspayableduetosuchsuppliers.Asat30June2021,theGrouphaddiscountedbankacceptancebills(the"DiscountedBills")withacarryingamountofRMB1,067,286,554.94(31December2020:RMB330,472,883.05)tobanks.Asat30June2021,thoseBillshadamaturityof1to12monthsattheendofthereportingperiod.InaccordancewiththeLawofNegotiableInstruments,theholdersofthederecognisedbillshavearightofrecourseagainsttheGroupiftheacceptingbanksdefault(the"ContinuingInvolvement").IntheopinionoftheGroup,theGrouphastransferredsubstantiallyallrisksandrewardsrelatingtothoseBills.Accordingly,ithasderecognisedthefullcarryingamountsofthoseBillsandtheassociatedaccountspayable.ThemaximumexposuretolossfromtheGroup'sContinuingInvolvementinthederecognisedbillsandtheundiscountedcashflowstorepurchasethesederecognisedbillsisequaltotheircarryingamounts.IntheopinionoftheGroup,thefairvaluesoftheGroup’sContinuingInvolvementinthederecognisedbillsarenotsignificant.During2021,theGrouphasnotrecognisedanygainorlossonthedateoftransfer.NogainorlosswasrecognisedfromderecognisedfinancialassetsinwhichtheContinuingInvolvementexists,bothduringtheyearorcumulatively.During2021,theGrouphasnotrecognisedanygainorlossonthedateoftransferofthederecognisedbills.NogainsorlosseswererecognisedfromtheContinuingInvolvement,bothduringtheyearorcumulatively.Aspartofitsnormalbusiness,theGroupenteredintoanaccountsreceivablefactoringwithoutrecoursewithbanksandtransferredcertainaccountsreceivabletobanks.Intheopinionofthedirectors,theGrouphastransferredsubstantiallyallrisksandrewardsunderthearrangement.Accordingly,ithasderecognisedthefullcarryingamountsoftheassociatedaccountsreceivable.TheoriginalcarryingvalueofthederecognisedaccountsreceivabletransferredundertheArrangementthathavenotbeensettledasat30June2021amountedtoRMB695,181,891.24(31December2020:RMB1,409,768,709.18).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments

ThemainrisksarisingfromtheGroup'sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk(includingcurrencyriskandinterestraterisk).TheGroup'sprincipalfinancialinstrumentscomprisecashandbankbalances,equityinvestments,debtinvestments,borrowings,notesreceivable,accountsreceivable,notespayableandaccountspayable.RisksthatrelatedtothesefinancialinstrumentsandtheGroup'sriskmanagementstrategiesforreducingtheserisksareasfollows.TheCompany’sboardofdirectorsisresponsibleforplanningandestablishingtheriskmanagementframeworkoftheGroup,formulatingriskmanagementpoliciesandrelatedguidelinesoftheGroupandsupervisingtheimplementationofriskmanagementmeasures.TheGrouphasalreadydevelopedriskmanagementpoliciestoidentifyandanalysetherisksfacedbytheGroup,whichhaveclearlyidentifiedspecificrisks,coveringalotofaspectssuchasmarketrisk,creditriskandliquidityriskmanagement.TheGroupregularlyassessesthemarketenvironmentandchangesintheGroup’sbusinessactivitiestodeterminewhetherornottoupdatetheriskmanagementpoliciesandsystems.TheriskmanagementoftheGroupshallbeconductedbytheoperationandmanagementdepartmentaccordingtothepolicyapprovedbytheCompany’smanagement.Theoperationandmanagementdepartmentidentifies,evaluatesandavoidsrelatedrisksbymeansofclosecooperationwithotherbusinessunitsoftheGroup.Toavoidtheriskconcentratingonasingleindustry,aspecificareaoraspecificcounterparty,theGroupspreadsfinancialinstrumentsriskwithdiversifiedinvestmentsandbusinessportfolio.CreditriskTheGrouponlytradeswithrecognisedandcreditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivablebalancesaremonitoredonanongoingbasisandtheGroup’sexposuretobaddebtsisnotsignificant.Fortransactionsthatarenotdenominatedinthefunctionalcurrencyoftherelevantoperatingunit,theGroupdoesnotoffercredittermswithoutthespecialapprovalofthecreditcontroldepartmentoftheGroup.Sincecashandbankbalances,bankacceptancebillsreceivableandderivativefinancialinstrumentsareplacedinthewell-establishedbankswithhighcreditratings,thecreditriskofthesefinancialinstrumentsislower.TheotherfinancialinstrumentsoftheGroupincludecashandbankbalancesandotherreceivables.Thecreditriskofthesefinancialassetsresultsfromdefaultofcounterparty.Themaximumcreditexposureequalstothebookvalueoftheseinstruments.ThemaximumexposuretocreditriskoftheGroupateachbalancesheetdateisthetotalamountchargedtothecustomerslesstheamountoftheimpairmentprovision.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

Creditrisk(Continued)SincetheGrouptradesonlywithrecognisedandcreditworthythirdparties,thereisnorequirementforcollateral.Creditrisksaremanagedbycustomer/counterparty,bygeographicalregionandbyindustrysector.TherearenosignificantconcentrationsofcreditriskwithintheGroupasthecustomerbasesoftheGroup’saccountsreceivablearewidelydispersedindifferentsectorsandindustries.TheGroupdoesnotholdanycollateralorothercreditenhancementsoveritsaccountsreceivablebalancesDeterminationofsignificantincreaseincreditriskAteachreportingdate,theGroupdetermineswhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition.Whendeterminingwhetherthecreditriskofafinancialassethasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformationthatisrelevantandavailablewithoutunduecostoreffort.Thisincludesbothquantitativeandqualitativeinformationanalysis,basedontheGroup’shistoricalexperienceandinformedcreditassessmentandincludingforward-lookinginformation.Inordertodeterminethechangeofexpecteddefaultriskduringthefinancialinstrument’sentirelifetime,theGroupcomparesthedefaultriskoffinancialinstrumentonthebalancesheetdateandontheinitialrecognitiondatebasedonsinglefinancialinstrumentorfinancialinstrumentportfoliowithsimilardefaultrisk.TheGroupdeterminesthatthecreditriskoffinancialassetshassignificantlyincreasedwhenoneormorequantitativeorqualitativecriteriaaremet:

(1)Quantitativecriteriaaremainlyprobabilityofdefaultincreasingmorethanagiven%since

initialrecognition;

(2)Qualitativecriteriaaremainlysignificantdetrimentalchangesintheborrower’soperatingorfinancialconditionsandearlywarningcustomerlists.

(3)Theuppercriterionisabove30daysoftheborrowersdefault(includingprincipalandinterests).

Definitionofcredit-impairedfinancialassets

Inassessingwhetherafinancialassetiscredit-impaired,theGroupconsidersbothquantitative

andqualitativeinformationinlinewithinternalcreditriskmanagement.TheGroupassesses

whetherafinancialassetiscredit-impairedbyconsideringthefollowingfactors:

(1)Significantfinancialdifficultyoftheborrowerorissuer;

(2)Abreachofcontractsuchasadefaultorpastdueevent;

(3)Thelender(s)oftheborrower,foreconomicorcontractualreasonsrelatingtotheborrower’s

financialdifficulty,havinggrantedtotheborrowerconcession(s)thatthelender(s)wouldnot

otherwiseconsider;

(4)Itisbecomingprobablethattheborrowerwillenterbankruptcyorotherfinancialreorganisation;

(5)Thedisappearanceofanactivemarketforsecuritybecauseoffinancialdifficulties;and

(6)Financialassetspurchasedorsourcedatlargediscountsindicatingthatcreditlosseshaveoccurred.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

Creditrisk(Continued)Theimpairmentoffinancialassetsmaynotbenecessarilyduetoasingledisparateevent.Thecombinedeffectsofmultipleeventsmayresultinfinancialassetsbeingcredit-impaired.ParameteroftheexpectedcreditlossmodelBasedonwhetherthereisasignificantincreaseincreditriskandwhetherthefinancialassetsarecredit-impaired,theGrouprecognizesimpairmentallowancefordifferentassetsusingeither12-monthexpectedcreditlossesorlifetimeexpectedcreditlosses.ThemeasurementoftheECLmodelisafunctionoftheprobabilityofdefault,thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)andtheexposureatdefault.TheGroupestablishesthemodelbyconsideringthequantitativeanalysisofhistoricalstatisticssuchasthecounterpartyrating,theguaranteemethod,thecollateralcategory,therepaymentmethod,andalsoforward-lookinginformation.Definitions:

(1)Theprobabilityofdefaultistheprobabilitythatthedebtorwillnotbeabletomeetitsrepaymentobligationswithinthefollowing12monthsorthroughouttheremainingduration.Toreflectthemacro-economicenvironmentconditions,theGroup’sassessmentoftheprobabilityofdefaultisbasedonthecalculationoftheECLmodeladjustedbyforward-lookinginformation.

(2)Thelossgivendefault(i.e.themagnitudeofthelossifthereisadefault)referstotheGroup'sexpectationoftheextentofthelossofdefaultriskexposure.Thelossgivendefaultvariesdependingonthetypeofcounterparty,thewayandpriorityofrecourse,andthetypeofcollateral.Thelossgivendefaultisthepercentageoftheriskexposurelossatthetimeofdefault,calculatedonthebasisofthenext12monthsortheentireduration.

(3)TheexposureatdefaultreferstotheamountthattheGroupshouldrepayintheeventofdefaultinthenext12monthsorthroughouttheremainingperiod.BoththeassessmentofasignificantincreaseincreditriskandthecalculationoftheECLinvolveforward-lookinginformation.TheGrouprecogniseskeyeconomicratiosthatinfluencecreditriskandtheECLbyhistoricaldataanalysis.Asat30June2021,therewasnoevidenceofasignificantincreaseincreditrisk.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

LiquidityriskThematurityanalysisoftheGroup'sfinancialliabilitiesasattheendofthereportingperiod,basedonthecontractualundiscountedcashflows,isasfollows:

30June2021
Within1year		1to2years		2to5years		Above5years		Total

Short-termborrowings		4,709,466,709.01		-		-		-		4,709,466,709.01
Long-termborrowings		-		2,431,600.00		62,818,460.27		-		65,250,060.27
Notespayable		6,780,425,089.17		-		-		-		6,780,425,089.17
Accountspayable		9,642,504,836.50		-		-		-		9,642,504,836.50
Otherpayables		1,530,963,581.23		-		-		-		1,530,963,581.23
Non-currentliabilitiesduewithin1year		875,756,920.06		-		-		-		875,756,920.06
Leaseliabilities		-		647,956,518.10		715,415,984.31		96,740,307.76		1,460,112,810.17

23,539,117,135.97

650,388,118.10

778,234,444.58

96,740,307.76

25,064,480,006.41

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

Liquidityrisk(Continued)ThematurityanalysisoftheGroup'sfinancialliabilitiesasattheendofthereportingperiod,basedonthecontractualundiscountedcashflows,isasfollows:

31December2020
Within1year		1to2years		2to5years		Above5years		Total

Short-termborrowings		1,630,237,831.47		-		-		-		1,630,237,831.47
Long-termborrowings		-		1,216,600.00		32,313,062.78		-		33,529,662.78
Notespayable		7,520,165,274.69		-		-		-		7,520,165,274.69
Accountspayable		7,697,451,142.50		-		-		-		7,697,451,142.50
Otherpayables		1,599,166,881.14		-		-		-		1,599,166,881.14
Non-currentliabilitiesduewithin1year		866,553,230.12		-		-		-		866,553,230.12
Leaseliabilities		-		607,074,838.58		682,420,061.05		86,860,654.77		1,376,355,554.40

19,313,574,359.92

608,291,438.58

714,733,123.83

86,860,654.77

20,723,459,577.10

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

MarketriskInterestrateriskTheGroup'sinterestrateriskarisesfromlong-termborrowingsfrombanks.FinancialliabilitiesissuedatfloatingratesexposetheGrouptocashflowinterestraterisk.FinancialliabilitiesissuedatfixedratesexposetheGrouptofairvalueinterestraterisk.TheGroupdeterminestherelativeproportionsofitsfixedrateandfloatingratecontractsdependingontheprevailingmarketconditions.Asat30June2021,ifthefloatinginterestratesofthelong-terminterest-bearingborrowingsincreasedordecreasedby50basepoints,whileotherfactorsdidnotchange,theGroup’snetincomewoulddecreaseorincreasebyRMB59,087.67(31December2020:ifthefloatinginterestratesofthelong-terminterest-bearingborrowingsincreasedordecreasedby50basepoints,whileotherfactorsdidnotchange,theGroup’snetincomewouldincreaseordecreasebyRMB97,072.60).TheGroup’sfinancedepartmentatitsheadquarterscontinuouslymonitorstheinterestratepositionoftheGroup.IncreasesininterestrateswillincreasethecostofnewborrowingsandtheinterestexpenseswithrespecttotheGroup’soutstandingfloatingrateborrowingsand,therefore,couldhaveamaterialadverseeffectontheGroup’sfinancialposition.TheGroup’smanagementlayerwouldmakeadjustmentswithreferencetothelatestmarketconditionswhichareinterestrateswapagreementstomitigateitsexposuretointerestraterisk.During2021and2020,theGrouphadnotenteredintoanyinterestrateswapagreements.Fortheyearended30June2021,theGrouphaslong-terminterest-bearingborrowingswithfloatinginterestratesamountingtoRMB31,600,000.00(31December2020:RMB31,600,000.00).Andlong-terminterest-bearingborrowingswithfixedinterestratesamountingtoRMB30,000,000.00(31December2020:nil).CurrencyriskTheGroup’smajoroperationalactivitiesarecarriedoutinMainlandChinaandamajorityofthetransactionsaredenominatedinRMB.TheGroupisexposedtoforeignexchangeriskarisingfromtherecognisedassetsandliabilitiesaswellasfuturetransactions(denominatedinforeigncurrencies,primarilywithrespecttoUnitedStatesdollarsandHongKongdollars).TheGroup’sfinancedepartmentatitsheadquartersisresponsibleformonitoringtheamountsofassetsandliabilities,andtransactionsdenominatedinforeigncurrenciesaimatmitigatingthepotentialforeignexchangerisktoalargeextent.

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

4.Capitalmanagement

TheCompany’sprimaryobjectiveformanagingcapitalistoensurethatitmaintainsastrongcreditratingandahealthycapitalratioinordertosupportitsbusiness,bringshareholdersinvestingreturnsandbenefitrelatedparties.Managementalsoaimstomaintainacapitalstructurethatensuresthatthelowestcostofcapitalisavailabletotheentity.Managementadjuststhecapitalstructurethroughadjustingdividendpaymentstoshareholders,returningcapitaltoshareholders,issuingnewsharesorsellingassetstoreducedebts.TheGroup’stotalcapitalisthetotalshareholders’equityinthebalancesheet.TheGroupdoesnotadoptanassetratioasacompulsoryfactortogoverncapitalinvestment.ThegearingratiosoftheGroupasattheendofthereportingperiodsareasfollows:

30June2021

31December2020

Gearingratio

60.43%

57.35%

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue

1.Assetsandliabilitiesatfairvalue30June2021:

Inputappliedinthemeasurementoffairvalue
Quotedpricesinactivemarkets		Significantobservableinputs	Significantunobservableinputs	Total
Level1		Level2	Level3

Continuousmeasurementoffairvalue
Receivablefinancing	-		345,906,887.55	-	345,906,887.55
Otherinvestmentinequityinstruments	-		99,488,340.28	-	99,488,340.28
Othernon-currentfinancialassets	-		-	117,974,908.51	117,974,908.51

-

445,395,227.83

117,974,908.51

563,370,136.34

31December2020

Inputappliedinthemeasurementoffairvalue
Quotedpricesinactivemarkets		Significantobservableinputs	Significantunobservableinputs	Total
Level1		Level2	Level3

Continuousmeasurementoffairvalue
Receivablefinancing	-		1,404,987,700.38	-	1,404,987,700.38
Otherinvestmentinequityinstruments	-		99,488,340.28	-	99,488,340.28
Othernon-currentfinancialassets	-		-	120,972,350.24	120,972,350.24

-

1,504,476,040.66

120,972,350.24

1,625,448,390.90

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue(Continued)

2.Assetsandliabilitiesdisclosedatfairvalue30June2021:

Inputappliedinthemeasurementoffairvalue
Quotedpricesinactivemarkets	Significantobservableinputs	Significantunobservableinputs	Total
Level1	Level2	Level3

Long-termborrowings

-

61,633,794.44

-

61,633,794.44

3.Estimationoffairvalue

ThefollowingarethebookvalueandfairvalueoffinancialinstrumentsoftheGroup,excludingthosethathaveimmaterialdifferenceinbookvalueandfairvalue:

Carryingamount		Fairvalue
30June2021	31December2020	30June2021	31December2020

Financialliabilities	-	-	-	-
Long-termborrowings	61,633,794.44	31,637,173.89	61,633,794.44	31,637,173.89

Managementhasassessedthatthefairvaluesofcashandcashequivalents,tradereceivables,receivablefinancing,otherreceivables,short-termborrowings,notespayable,tradepayables,otherpayables,non-currentliabilitiesduewithin1yearaswellasothershort-termfinancialassetsandliabilities.Duetotheshortremainingmaturitiesoftheseinstruments,thefairvalueapproximatedtothecarryingamount.ThefinancialcontrolleroftheGrouptakestheresponsibilitytoformulatepoliciesandproceduresrelatedtofinancialinstrumentfairvaluemeasurementsanddirectlyreportstotheCFOandtheauditcommittee.Oneachbalancesheetdate,thefinancialdepartmentanalysesthevariationofthefairvalueoffinancialinstrumentsanddeterminestheinputsapplicabletovaluation.ThevaluationisrequiredtobeapprovedbytheCFO.Thefairvaluesoffinancialassetsandliabilitiesaretheamountsatwhichtheinstrumentcouldbeexchangedordebtscouldbesettledinanarm’slengthtransactionbetweenknowledgeableandwillingparties,otherthaninaforcedorliquidationsale.Thefollowingmethodsandassumptionswereusedtoestimatethefairvalues.Thefairvaluesofshort-termandlong-termborrowings,andlong-termpayableshavebeencalculatedbydiscountingtheexpectedfuturecashflowsusingmarketratesofreturncurrentlyavailableforotherfinancialinstrumentswithsimilarterms,creditriskandremainingmaturities.Asat30June2021,theGroup’sownnon-performanceriskforshort-termandlong-termborrowingswasassessedtobeinsignificant.Foranequityinstrumentoflistedentities,themarketpriceisusedtodeterminefairvalue.Foranequityinstrumentofnon-listedentities,therecentequitytransactionconsiderationorthemarketcomparablecompanymodelisusedtoestimatefairvalue.TheGroupbelievesthattheestimatedfairvaluebythevaluationmethodisrational,andalsothemostsufficientvalueatthebalancesheetdate.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue(Continued)

4.Unobservableinputs

Othernon-currentfinancialassetswerethefundsharesofQiruiPortInvestmentCenterLPofNingboMeishanBondedPortsubscribedbytheGroup.Forthedeterminationofthefairvalueoftheinvestment,afterreferringtothenetassetsofQiruiPortInvestmentCenterLPofNingboMeishanBondedPorton30June2021,whichhasimplementedthenewfinancialinstrumentstandards,theresultwascalculatedanddeterminedaccordingtothefundshareproportionownedbythecompany.Afinancialinstrumentthatismeasuredatfairvaluewithmeasurementoflevel3isinsensitivetoreasonablefluctuationoftheunobservableinputs.

5.TransfersbetweenlevelsoffairvaluemeasurementAt30June2021and31December2020,therewerenotransfersoffairvaluemeasurementsbetweenLevel1andLevel2.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions

1.Parent

Parent’sname	Registeredaddress	Natureofbusiness	Sharecapital	ProportionofownershipinterestintheCompany	ProportionofvotingpowerintheCompany
SinopharmGroupCo.,Ltd.	Shanghai	Industrialinvestmentholding,trusteeofapharmaceuticalenterprise,assetsreorganization,distributionandretailofmedicinesandpharmaceuticalproducts,etc.	3,120,656,191.00	56.06%	56.06%

TheultimatecontrollingpartyoftheCompanyisCNPGC.

2.SubsidiariesRefertoNoteVII1fordetailsofsubsidiaries.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

3.Associates

RefertoNoteVII2fordetailsofassociates.Thesituationofotherjointventuresorassociatesthathaverelatedpartytransactionswiththecompanyduringthecurrentperiodorthebalanceoftherelatedpartytransactionswiththecompanyinthepreviousperiodisasfollows:

PleaserefertoNoteX5fordetails.

4.Otherrelatedparties

Companyname	Relatedpartyrelationships
LanzhouBiotechnologyDevelopmentCo.,Ltd.	ControlledbyCNPGC
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.	ControlledbyCNPGC
ChinaNationalPharmaceuticalForeignTradeCorporation	ControlledbyCNPGC
SinopharmYixinPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
FoshanWinteamPharmaceuticalGroupLtd.	ControlledbyCNPGC
SouthwestPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
ChengduRongshengPharmacyCo.,Ltd.	ControlledbyCNPGC
TaijiGroupChongqingFulingPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.	ControlledbyCNPGC
TaijiGroupChongqingTongjungePharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.	ControlledbyCNPGC
ShanghaiShangshengBiologicalProductsCo.,Ltd.	ControlledbyCNPGC
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.	ControlledbyCNPGC
ChinaNationalPharmaceuticalIndustryCo.,Ltd.	ControlledbyCNPGC
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.	ControlledbyCNPGC

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmLuya(Shandong)PharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmTongjitang(Guizhou)PharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmChuanKangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
HuayiPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmWeiqidaPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
ChengduInstituteofBiologicalProductsCo.,Ltd.	ControlledbyCNPGC
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.	ControlledbyCNPGC
YunnanTianjiangYifangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
WuhanZhongshengYujinBiologicalMedicineCo.,Ltd.	ControlledbyCNPGC
ShantouJinshiPowderInjectionCo.,Ltd.	ControlledbyCNPGC
SinopharmXinjiangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmWuhanBloodProductsCo.,Ltd.	ControlledbyCNPGC
TaijiGroup	ControlledbyCNPGC
SichuanJiangyouZhongbaAconitiScienceandTechnologyDevelopmentCo.,Ltd.	ControlledbyCNPGC
SinopharmWuhanZhonglianSiyaoPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
TaijiGroupZhejiangDongfangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
TaijiGroupSichuanMianyangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmSanyiMedicine(Wuhu)Co.,Ltd.	ControlledbyCNPGC
Sinopharm(Anhui)JingfangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
TaijiGroupSichuanNanchongPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
ShanghaiZenoBiotechnologyCo.,Ltd.	ControlledbyCNPGC
SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
FujianChentianJinlingPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmDezhong(Foshan)PharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmForeignTrade(Beijing)Co.,Ltd.	ControlledbyCNPGC
FoshanChengnanFengliaoxingMedicalHospitalCo.,Ltd.	ControlledbyCNPGC
SinopharmFengliaoxingMedicalHospitalCo.,Ltd.	ControlledbyCNPGC
ChongqingTongjungeCo.,Ltd.	ControlledbyCNPGC
SichuanTaijiPharmacyChainCo.,Ltd.	ControlledbyCNPGC
SinopharmGroupFengliaoxingMedicalHospital(FoshanNanhai)Co.,Ltd.	ControlledbyCNPGC
ChinaSinopharmInternationalCorporation	ControlledbyCNPGC
GuangdongYifangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.	ControlledbyCNPGC
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.	ControlledbyCNPGC
GuangxiYifangTianjiangPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
SinopharmGroupFinancialCo.,Ltd.	ControlledbyCNPGC
InnostarBiotechnologyNantongCo.,Ltd	ControlledbyCNPGC
HubeiSinopharmZhonglianMedicineCo.,Ltd.	ControlledbyCNPGC
TaijiGroupGansuTianshuiXihuangEjiaoCo.,Ltd.	ControlledbyCNPGC
SinopharmBeijingHuamiaoPharmaceuticalCo.,Ltd.	ControlledbyCNPGC
ChinaNationalofTraditional&HerbalMedicineCo.,Ltd.	ControlledbyCNPGC
SinopharmHoldingSubMarketingCenterCo.,Ltd.	ControlledbySinopharmGroup
ChinaNationalMedicinesCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShenyangCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingYangzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLunanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingInnerMongoliaCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJilinCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingFujianCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHenanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShandongCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBeijingCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinjiangXinteShenrongPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJiangsuCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingTongliaoCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupGuoruiMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHunanCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingPingdingshanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXiamenCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChangzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	ControlledbySinopharmGroup
YunnanSinopharmHoldingDongchangMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJinzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingNingxiaCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnshanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiZhongjianMedicalDeviceChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJinanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmJiankun(Beijing)MedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmAdvanced(Shanghai)MedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
ShanghaiInternationalPharmaceuticalTradeCo.,Ltd.	ControlledbySinopharmGroup
ChinaNationalMedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHeilongjiangCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHuaideju(Xiamen)PharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingWuxiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHulunBuirCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupSouthwestMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingTianjinCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLinfenNinglePharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingDalianCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLiaoningMedicalEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingYanchengCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingFuzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingYunnanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingNantongCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingQuanzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingSpecialDrugsShiheziPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBenxiCo.,Ltd.	ControlledbySinopharmGroup
ShanghaiMerroPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHubeiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingsBeijingHuahongco.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChifengCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingZhejiangCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingPu’erCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHubeiLikangPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHainanHongyiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingPutianCo.,Ltd.	ControlledbySinopharmGroup
SinopharmSichuanPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBayannurCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnhuiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingNanpingNewforceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinye(Hubei)MedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChangshaCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinjiangSpecialDrugsYiliPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingKunmingCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingChangdeCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingOrdosCo.,Ltd.	ControlledbySinopharmGroup
SinopharmInnerMongoliaMedicalEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingDalianHechengCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHainanCo.,Ltd.	ControlledbySinopharmGroup
ChinaNationalMedicalDevice(HuiZhou)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupMedicineLogisticCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChangshaGaoxinMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupLinfenCo.,Ltd.	ControlledbySinopharmGroup
SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLiaoningMedicalEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingZhangzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.	ControlledbySinopharmGroup
SinopharmShenzhenMedicineDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd.	ControlledbySinopharmGroup
ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChongqingCo.,Ltd.	ControlledbySinopharmGroup
SinopharmMedicalInstrument(Hainan)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingWuhanHongshenMedicineCo.,Ltd.	ControlledbySinopharmGroup
Sinopharm(Dalian)MedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLinyiMedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHebeiMedicalInstrumentCo.,Ltd.	ControlledbySinopharmGroup
LiaoningPilotFreeTradeZoneChinaMedicalDeviceTechnologyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiJinzhongCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiRunheMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupMed-TechCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingRizhaoCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJiangxiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChengduCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShiyanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingUlanqabCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiJinchengCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingLianyungangCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingBaotouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingDezhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingTaizhouCo.,Ltd.	ControlledbySinopharmGroup
ChinaMedicalEquipmentShandongCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGuang’anCo.,Ltd..	ControlledbySinopharmGroup
ShanghaiTongyuInformationTechnologyCo.,Ltd.	ControlledbySinopharmGroup
GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd.	ControlledbySinopharmGroup
XinjiangBaitongPropertyServiceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmPharmaceuticalLogisticsCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLogisticsBeijingCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingWenzhouCo.,Ltd.	ControlledbySinopharmGroup
HandanSinopharmLerentangPharmacyChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentang(Langfang)PharmaceuticalTradeCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangTangshanMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangXingtaiPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGuizhouMedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangBaodingTradingCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangBaodingHongkangPharmaceuticalChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangHengshuiMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXuzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShangqiuCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGansuCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGuizhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnshunCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingTongrenCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingGuizhou(Zunyi)MedicalEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingZunyiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingWuhuCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangCangzhouMedicineCo.,Ltd.	ControlledbySinopharmGroup
ShanghaiShengxinPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangTangshanMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmBaiseDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingQinghaiCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHongheCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangXingtaiMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJiaozuoCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingAnhuiPharmaceuticalChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChuxiongCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangShijiazhuangMedicalManagementCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingTianjinNorthMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangCangzhouPharmaceuticalTradingCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGuangdongMedicalExaminationCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangChengdeMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangLangfangPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLongyanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHubeiHongyuanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangHandanMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingWuhanGuodaPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangBaodingMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingProfessionalPharmacy(Hainan)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingZhuanyePharmacy(Dongfang)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited	ControlledbySinopharmGroup
SinopharmHoldingNingdeCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingChangxingProfessionalPharmacy(Haikou)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingPharmacy(Shanghai)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingDalianSpecialDrugsPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiMedicalDevicesCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHolding(Shandong)MedicineDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingProfessionalPharmacySongyuanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmMedicalInstrument(Jiangmen)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingXinyuCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingSuzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.	ControlledbySinopharmGroup
YuxiSinopharmMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHunanProv.MedicalEquipmentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingQianxi’nanCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingFuzhouCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingKunmingPharmacyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGuanaiJikunPharmacy(Haikou)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmLerentangLangfangMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingZhenjiangCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGuizhouMedicalChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiHejinPharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJilinChainStoreCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGuangdongMedicineDeviceSupplyChainCo.,Ltd.	ControlledbySinopharmGroup
SinopharmMedicalInstrumentGuangxiMedicalTechnologyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmMedicalInstrument(Foshan)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	ControlledbySinopharmGroup
SinopharmGroupShanghaiCo.,Ltd.	ControlledbySinopharmGroup
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingGuizhouYitongMedicineCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingShanxiLinfenCo.,Ltd.	ControlledbySinopharmGroup

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingLiaochengCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingJilinMedicineDeviceCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHolding(TianjinBinhai)PharmaceuticalCo.,Ltd.	ControlledbySinopharmGroup
SinopharmChemicalReagentCo.,Ltd.	ControlledbySinopharmGroup
SinopharmHoldingHuaianCo.,Ltd.	ControlledbySinopharmGroup
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	AssociateofCNPGC
ChinaOtsukaPharmaceuticalCo.,Ltd.	AssociateofCNPGC
SinopharmGroupShanxiRuifulaiCo.,Ltd.	AssociateofCNPGC
SINO-TCMShanghaiMedicine&MedicinalMaterialsCo.,Ltd.	AssociateofCNPGC
ChangchunChangshengGenePharmaceuticalCo.,Ltd.	AssociateofCNPGC
YichangHumanwellPharmaceuticalCo.,Ltd.	AssociateofSinopharmGroup
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.	AssociateofSinopharmGroup
SinopharmHoldingChuangkeMedicalTechnology(Guangxi)Co.,Ltd.	AssociateofSinopharmGroup
SinopharmHoldingChuangkeYuanzheMedicalTechnology(Shanghai)Co.,Ltd.	AssociateofSinopharmGroup
SinopharmHealthOnlineCo.,Ltd.	AssociateofSinopharmGroup
ShanghaiGuodaLingyunPharmacyCo.,Ltd.	AssociateofSinopharmGroup
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	AssociateofSinopharmGroup
SinopharmNutraceuticals(Shanghai)Co.,Ltd.	AssociateofSinopharmGroup
SinopharmAnhuiGreatHealthIndustryCo.,Ltd.	AssociateofSinopharmGroup
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	Minorityshareholdersofasubsidiary
JiangmenXinhuiDistrictJianfengPharmaceuticalCo.,Ltd.	Minorityshareholdersofasubsidiary
LerentangInvestmentGroupCo.,Ltd.	Minorityshareholdersofasubsidiary
ShenyangPharmaceuticalCo.,Ltd.	Minorityshareholdersofasubsidiary
HunanMinshengtangBiotechnologyCo.,Ltd.	Minorityshareholdersofasubsidiary
GuangdongJiyuantangDevelopmentCo.,Ltd.	Minorityshareholdersofasubsidiary
XishuangbannaDishengPharmaceuticalCo.,Ltd.	Minorityshareholdersofasubsidiary
BeijingHuafangInvestmentCo.,Ltd.	Minorityshareholdersofasubsidiary
GuHaiqun	Minorityshareholdersofasubsidiary
ShenzhenJiufengInvestmentCo.,Ltd.	Minorityshareholdersofasubsidiary
ZhangHaiyan	Minorityshareholdersofasubsidiary
TaishanQunkangPharmacyCo.,Ltd.	Minorityshareholdersofasubsidiary
Pu'erSongmaoMedicineGroupCo.,Ltd.	Minorityshareholdersofasubsidiary

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
HangzhouXihuDistrictCommercialCo.,Ltd.	Minorityshareholdersofasubsidiary
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	Minorityshareholdersofasubsidiary
DuLongfeng	Minorityshareholdersofasubsidiary
LiHuichun	Minorityshareholdersofasubsidiary
ZhangZhenfang	Minorityshareholdersofasubsidiary
PingdingshanPushengPharmaceuticalCo.,Ltd.	Minorityshareholdersofasubsidiary
XiongXinyuan	Minorityshareholdersofasubsidiary
ShenyangShengdiouTradingCo.,Ltd.	Minorityshareholdersofasubsidiary
ShanghaiBaizhongBusinessDevelopment(Group)Co.,Ltd.	Minorityshareholdersofasubsidiary
ZhangYechuan	Familymembersoftheactualcontrollerofminorityshareholdersofasubsidiary
WangYang	Familymembersoftheactualcontrollerofminorityshareholdersofasubsidiary
LiFang	Theactualcontrollerofminorityshareholdersofasubsidiary
GuJinhua	Theactualcontrollerofminorityshareholdersofasubsidiary
NanjingYuanguangTradingCo.,Ltd.	Companiesownedbyminorityshareholdersofasubsidiary
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.	Companiesownedbyminorityshareholdersofasubsidiary
TaishanXiangranhuiTradeCo.,Ltd.	Companiesownedbyminorityshareholdersofasubsidiary
Southeast(Quanzhou)BiotechnologyPharmaceuticalCo.,Ltd.	Companiesownedbyminorityshareholdersofasubsidiary
ShenzhenWanweiMedicineTradingCo.,Ltd.	SubsidiaryofMainLuckPharmaceutical
JiangsuWanbangPharmacyMarketingCo.,Ltd.	SubsidiaryofFosunPharm
ChongqingYaoyouPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
ShanghaiHenliusBiopharmaceuticalsCo.,Ltd.	SubsidiaryofFosunPharm
TibetYaoyouMedicinesCo.,Ltd.	SubsidiaryofFosunPharm
JinzhouAvancPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
ShanghaiChaohuiPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
JiangxiEryeMedicineMarketingCo.,Ltd.	SubsidiaryofFosunPharm
FosunPharmaceuticalDistributionJiangsuCo.,Ltd.	SubsidiaryofFosunPharm
SichuanHexinPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
SuzhouEryePharmaceuticalLimitedCompany	SubsidiaryofFosunPharm
HunanDongtingPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.Otherrelatedparties(Continued)

Companyname	Relatedpartyrelationships
GlaxoSmithKlinePharmaceuticals(Suzhou)Co.,Ltd.	SubsidiaryofFosunPharm
ShanghaiTransfusionTechnologyCo.,Ltd.	SubsidiaryofFosunPharm
ShenyangHongqiPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
GuilinPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
JinzhouAvancMedicineCo.,Ltd.	SubsidiaryofFosunPharm
JiangsuHuanghePharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
HunanYaoyouMedicinesCo.,Ltd.	SubsidiaryofFosunPharm
SuzhouLaishiTransfusionEquipment	SubsidiaryofFosunPharm
ChengduListPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
ChongqingHaisimanPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
FoshanChanchengPharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
ShenzhenHengshengHospital	SubsidiaryofFosunPharm
FoshanChanchengCentralHospitalCo.,Ltd.	SubsidiaryofFosunPharm
FoshanChanyixingMedicineDevelopmentCo.,Ltd.	SubsidiaryofFosunPharm
ShenzhenChindexMedicalBeautyClinic	SubsidiaryofFosunPharm
LecongSupplyandMarketGroupShunketangMedicineCo.,Ltd.	SubsidiaryofFosunPharm
ChindexShanghaiInternationalTradingCo.,Ltd.	SubsidiaryofFosunPharm
DalianYalifengBiopharmaceuticalCo.,Ltd.	SubsidiaryofFosunPharm
ChindexShanghaiInternationalTradingCo.,Ltd.	SubsidiaryofFosunPharm
NatonBiotechnology(Beijing)Co.,Ltd.	SubsidiaryofFosunNaton

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties

(1)Relatedpartytransactions-goodsandservices

Purchaseofgoodsandreceivingofservicesfromrelatedparties

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHoldingSubMarketingCenterCo.,Ltd.	Purchaseofgoods	567,957,995.48	8,910,000,000.00	NO	548,051,256.56
ChinaNationalMedicinesCo.,Ltd.	Purchaseofgoods	378,976,943.17		NO	309,588,426.46
SinopharmHoldingShanxiCo.,Ltd.	Purchaseofgoods	291,169,816.86		NO	302,659,086.81
SinopharmHoldingShenyangCo.,Ltd.	Purchaseofgoods	218,687,438.90		NO	91,252,243.44
SinopharmLerentangMedicineCo.,Ltd.	Purchaseofgoods	212,774,916.08		NO	144,033,107.71
SinopharmHoldingShanxiCo.,Ltd.	Purchaseofgoods	204,598,556.55		NO	168,218,597.08
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	Purchaseofgoods	132,068,068.87		NO	76,699,225.00
SinopharmGroupCo.,Ltd.	Purchaseofgoods	130,357,912.20		NO	101,625,946.62
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	Purchaseofgoods	83,397,212.70		NO	60,511,824.27
JiangsuWanbangPharmacyMarketingCo.,Ltd.	Purchaseofgoods	80,954,984.16		NO	97,184,029.57
LanzhouBiotechnologyDevelopmentCo.,Ltd.	Purchaseofgoods	68,090,371.68		NO	48,840,600.00
SinopharmHoldingYangzhouCo.,Ltd.	Purchaseofgoods	51,592,777.55		NO	38,126,655.70
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	Purchaseofgoods	45,696,541.00		NO	34,152,784.08
SinopharmHoldingLunanCo.,Ltd.	Purchaseofgoods	40,999,864.55		NO	26,448,807.82
SinopharmHoldingInnerMongoliaCo.,Ltd.	Purchaseofgoods	40,632,946.46		NO	35,570,487.58
ChongqingYaoyouPharmaceuticalCo.,Ltd.	Purchaseofgoods	37,011,667.64		NO	26,949,678.43
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.	Purchaseofgoods	36,421,939.26		NO	82,302.92
ChinaNationalPharmaceuticalForeignTradeCorporation	Purchaseofgoods	31,428,461.51		NO	8,156,658.48
SinopharmHoldingJilinCo.,Ltd.	Purchaseofgoods	30,157,192.13		NO	11,181,666.83
SinopharmYixinPharmaceuticalCo.,Ltd.	Purchaseofgoods	28,345,022.18		NO	8,249,563.42

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
ShanghaiHenliusBiopharmaceuticalsCo.,Ltd.	Purchaseofgoods	26,663,502.35	8,910,000,000.00	NO	-
SinopharmHoldingFujianCo.,Ltd.	Purchaseofgoods	26,242,880.93		NO	21,032,808.12
MainLuckPharmaceutical	Purchaseofgoods	25,917,861.73		NO	16,716,318.29
FoshanWinteamPharmaceuticalGroupLtd.	Purchaseofgoods	23,659,412.81		NO	11,624,754.37
SinopharmHoldingHenanCo.,Ltd.	Purchaseofgoods	22,693,352.04		NO	22,896,338.50
SinopharmHoldingShandongCo.,Ltd.	Purchaseofgoods	22,619,090.27		NO	9,870,222.38
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.	Purchaseofgoods	19,472,073.81		NO	16,213,399.66
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	Purchaseofgoods	19,340,530.98		NO	-
SouthwestPharmaceuticalCo.,Ltd.	Purchaseofgoods	17,542,194.64		NO	-
SinopharmHoldingBeijingCo.,Ltd.	Purchaseofgoods	17,360,821.15		NO	32,520,572.80
SinopharmHoldingXinjiangXinteShenrongPharmaceuticalCo.,Ltd.	Purchaseofgoods	17,310,598.75		NO	-
SinopharmHoldingJiangsuCo.,Ltd.	Purchaseofgoods	16,730,745.30		NO	10,137,097.99
SinopharmHoldingTongliaoCo.,Ltd.	Purchaseofgoods	16,039,594.19		NO	5,810,230.35
SinopharmZhijun	Purchaseofgoods	15,931,558.84		NO	12,126,208.66
SinopharmGroupGuoruiMedicineCo.,Ltd.	Purchaseofgoods	15,180,518.65		NO	2,675,445.41
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	Purchaseofgoods	14,889,163.04		NO	4,168,839.16
ChengduRongshengPharmacyCo.,Ltd.	Purchaseofgoods	14,584,099.03		NO	8,518,290.00
TibetYaoyouMedicinesCo.,Ltd.	Purchaseofgoods	14,011,950.98		NO	10,576,537.72
SinopharmHoldingHunanCo.,Ltd.	Purchaseofgoods	13,204,231.22		NO	8,970,281.71

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
ShenzhenWanweiMedicineTradingCo.,Ltd.	Purchaseofgoods	13,151,952.24	8,910,000,000.00	NO	11,467,474.49
YichangHumanwellPharmaceuticalCo.,Ltd.	Purchaseofgoods	12,457,905.62		NO	7,649,748.62
SinopharmPharmaceuticals(Shanghai)Co.,Ltd.	Purchaseofgoods	12,051,455.59		NO	3,507,017.31
SinopharmHoldingPingdingshanCo.,Ltd.	Purchaseofgoods	11,979,529.78		NO	15,984,508.75
SinopharmHoldingXiamenCo.,Ltd.	Purchaseofgoods	11,957,608.14		NO	8,217,598.96
JinzhouAvancPharmaceuticalCo.,Ltd.	Purchaseofgoods	11,829,570.34		NO	7,185,929.54
ChinaOtsukaPharmaceuticalCo.,Ltd.	Purchaseofgoods	11,763,554.47		NO	6,256,674.56
ZhijunPingshan	Purchaseofgoods	10,838,947.13		NO	11,851,634.26
SinopharmHoldingChangzhouCo.,Ltd.	Purchaseofgoods	10,160,654.93		NO	11,126,503.85
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.	Purchaseofgoods	9,851,650.37		NO	5,872,922.23
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	Purchaseofgoods	9,697,409.23		NO	7,471,038.17
YunnanSinopharmHoldingDongchangMedicineCo.,Ltd.	Purchaseofgoods	9,191,104.74		NO	989,799.95
SinopharmHoldingJinzhouCo.,Ltd.	Purchaseofgoods	8,931,064.40		NO	3,117,332.78
ShanghaiChaohuiPharmaceuticalCo.,Ltd.	Purchaseofgoods	7,770,056.47		NO	3,912,114.41
SinopharmHoldingNingxiaCo.,Ltd.	Purchaseofgoods	7,527,437.99		NO	12,243,904.08
SinopharmHoldingAnshanCo.,Ltd.	Purchaseofgoods	7,386,999.04		NO	584,206.98
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	Purchaseofgoods	6,568,011.43		NO	4,980,871.81
JiangxiEryeMedicineMarketingCo.,Ltd.	Purchaseofgoods	6,315,288.30		NO	6,456,636.49
SinopharmHoldingShanxiZhongjianMedicialDeviceChainCo.,Ltd.	Purchaseofgoods	6,180,889.71		NO	7,522,898.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
FosunPharmaceuticalDistributionJiangsuCo.,Ltd.	Purchaseofgoods	5,932,515.36	8,910,000,000.00	NO	2,481,349.10
SinopharmHoldingJinanCo.,Ltd.	Purchaseofgoods	5,593,031.01		NO	3,208,390.44
SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.	Purchaseofgoods	5,438,916.55		NO	4,606,542.22
TaijiGroupChongqingFulingPharmaceuticalCo.,Ltd.	Purchaseofgoods	5,323,305.69		NO	-
SinopharmJiankun(Beijing)MedicineCo.,Ltd.	Purchaseofgoods	4,529,929.13		NO	1,444,828.32
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.	Purchaseofgoods	4,477,305.68		NO	1,124,358.11
SinopharmAdvanced(Shanghai)MedicineDeviceCo.,Ltd.	Purchaseofgoods	4,359,697.01		NO	649,215.02
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.	Purchaseofgoods	4,230,984.00		NO	1,450,504.18
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.	Purchaseofgoods	4,051,307.75		NO	2,283,462.26
TaijiGroupChongqingTongjungePharmaceuticalCo.,Ltd.	Purchaseofgoods	3,955,453.47		NO	-
SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.	Purchaseofgoods	3,765,974.30		NO	2,745,736.27
ShanghaiShangshengBiologicalProductsCo.,Ltd.	Purchaseofgoods	3,748,316.28		NO	1,506,116.50
SinopharmHoldingChuangkeMedicialTechnology(Guangxi)Co.,Ltd.	Purchaseofgoods	3,741,777.16		NO	796,460.19
ShanghaiInternationalPharmaceuticalTradeCo.,Ltd.	Purchaseofgoods	3,215,831.81		NO	3,897,527.05
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.	Purchaseofgoods	2,917,177.22		NO	1,911,884.91

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
ChinaNationalMedicalDeviceCo.,Ltd.	Purchaseofgoods	2,866,958.60	8,910,000,000.00	NO	26,548.67
SinopharmHoldingHeilongjiangCo.,Ltd.	Purchaseofgoods	2,700,433.59		NO	2,533,432.31
SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.	Purchaseofgoods	2,654,950.93		NO	-
SichuanHexinPharmaceuticalCo.,Ltd.	Purchaseofgoods	3,903,635.62		NO	2,257,987.38
SinopharmHoldingWuxiCo.,Ltd.	Purchaseofgoods	2,439,252.13		NO	8,550,202.41
SinopharmHoldingHulunBuirCo.,Ltd.	Purchaseofgoods	2,425,267.22		NO	1,564,568.11
SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.	Purchaseofgoods	2,350,922.70		NO	907,465.81
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.	Purchaseofgoods	2,321,886.33		NO	(550,607.22)
SinopharmGroupSouthwestMedicineCo.,Ltd.	Purchaseofgoods	2,313,721.29		NO	372,966.72
SinopharmHoldingTianjinCo.,Ltd.	Purchaseofgoods	2,113,934.18		NO	2,168,770.41
SuzhouEryePharmaceuticalLimitedCompany	Purchaseofgoods	1,942,102.86		NO	1,489,545.90
SinopharmHoldingLinfenNinglePharmaceuticalCo.,Ltd.	Purchaseofgoods	1,922,967.49		NO	160,565.02
SinopharmHoldingXinjiangSpecialDrugsKaramayPharmaceuticalCo.,Ltd.	Purchaseofgoods	1,801,633.72		NO	2,704,084.84
HunanDongtingPharmaceuticalCo.,Ltd.	Purchaseofgoods	1,673,060.75		NO	1,885,047.92
ChinaNationalPharmaceuticalIndustryCo.,Ltd.	Purchaseofgoods	1,658,893.69		NO	1,509,682.80
SinopharmHoldingDalianCo.,Ltd.	Purchaseofgoods	1,618,603.64		NO	1,450,198.00
SinopharmLiaoningMedicalEquipmentCo.,Ltd.	Purchaseofgoods	1,610,762.20		NO	3,970,884.24

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.	Purchaseofgoods	1,591,292.21	8,910,000,000.00	NO	34,820,929.08
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.	Purchaseofgoods	1,553,305.70		NO	506,283.18
SinopharmLuya(Shandong)PharmaceuticalCo.,Ltd.	Purchaseofgoods	1,537,349.20		NO	2,381,688.57
SinopharmHoldingYanchengCo.,Ltd.	Purchaseofgoods	1,355,193.79		NO	1,623,042.70
SinopharmTongjitang(Guizhou)PharmaceuticalCo.,Ltd.	Purchaseofgoods	1,342,043.34		NO	2,616,939.67
GlaxosmithklinePharmaceuticals(Suzhou)Co.,Ltd.	Purchaseofgoods	1,312,782.80		NO	6,570,287.55
SinopharmChuankangPharmaceuticalCo.,Ltd.	Purchaseofgoods	1,292,333.10		NO	1,699,176.97
HuayiPharmaceuticalCo.,Ltd.	Purchaseofgoods	1,266,831.84		NO	176,144.72
SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,Ltd	Purchaseofgoods	1,156,691.29		NO	-
SinopharmHoldingFuzhouCo.,Ltd.	Purchaseofgoods	1,152,589.16		NO	2,117,865.83
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.	Purchaseofgoods	1,017,142.82		NO	1,717,968.13
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	Purchaseofgoods	984,816.68		NO	2,391,565.82
SinopharmHoldingYunnanCo.,Ltd.	Purchaseofgoods	805,065.42		NO	143,973.45
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.	Purchaseofgoods	781,581.70		NO	1,077,980.94
SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd.	Purchaseofgoods	781,575.58		NO	1,434,252.18
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	Purchaseofgoods	773,057.14		NO	627,174.03

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.	Purchaseofgoods	753,274.35	8,910,000,000.00	NO	1,300,658.82
SinopharmHoldingNantongCo.,Ltd.	Purchaseofgoods	697,002.20		NO	-
SinopharmWeiqidaPharmaceuticalCo.,Ltd.	Purchaseofgoods	690,157.52		NO	668,790.52
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.	Purchaseofgoods	682,560.86		NO	414,430.28
ShanghaiTransfusionTechnologyCo.,Ltd.	Purchaseofgoods	667,699.12		NO	712,212.39
SinopharmHoldingQuanzhouCo.,Ltd.	Purchaseofgoods	662,423.54		NO	880,856.56
ShenyangHongqiPharmaceuticalCo.,Ltd.	Purchaseofgoods	653,104.18		NO	359,010.73
SinopharmHoldingSpecialDrugsShiheziPharmaceuticalCo.,Ltd.	Purchaseofgoods	607,344.52		NO	132,136.11
ChengduInstituteofBiologicalProductsCo.,Ltd.	Purchaseofgoods	562,767.00		NO	475,738.80
SinopharmHoldingBenxiCo.,Ltd.	Purchaseofgoods	559,188.59		NO	-
ShanghaiMerroPharmaceuticalCo.,Ltd.	Purchaseofgoods	542,162.94		NO	749,178.23
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.	Purchaseofgoods	536,821.03		NO	433,524.84
SinopharmholdingsHubeiCo.,Ltd.	Purchaseofgoods	531,440.87		NO	58,060,607.87
YunnanTianjiangYifangPharmaceuticalCo.,Ltd.	Purchaseofgoods	497,209.07		NO	-
GuilinPharmaceuticalCo.,Ltd.	Purchaseofgoods	491,568.15		NO	351,228.30
SinopharmholdingsBeijingHuahongCo.,Ltd.	Purchaseofgoods	471,946.23		NO	2,856,735.70
SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	Purchaseofgoods	408,296.15		NO	282,209.74
SinopharmGroupShanxiRuifulaiCo.,Ltd.	Purchaseofgoods	404,922.04		NO	-
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.	Purchaseofgoods	371,264.92		NO	1,209,038.66

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2010
WuhanZhongshengYujinBiologicalMedicineCo.,Ltd.	Purchaseofgoods	354,016.00	8,910,000,000.00	NO	-
ShantouJinshiPowderInjectionCo.,Ltd.	Purchaseofgoods	351,589.74		NO	300,803.34
SinopharmHoldingChifengCo.,Ltd.	Purchaseofgoods	347,527.93		NO	-
SinopharmXinjiangPharmaceuticalCo.,Ltd.	Purchaseofgoods	341,818.02		NO	368,206.57
SinopharmHoldingZhejiangCo.,Ltd.	Purchaseofgoods	317,534.11		NO	194,238.02
SinopharmHoldingPuerCo.,Ltd.	Purchaseofgoods	296,085.02		NO	446,396.77
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.	Purchaseofgoods	295,539.81		NO	2,181,662.15
SinopharmWuhanBloodProductsCo.,Ltd.	Purchaseofgoods	281,200.00		NO	24,800.00
JinzhouAvancMedicineCo.,Ltd.	Purchaseofgoods	265,412.37		NO	2,780,545.99
SinopharmHoldingHubeiLikangPharmaceuticalCo.,Ltd.	Purchaseofgoods	260,747.00		NO	-
SinopharmHoldingHainanHongyiCo.,Ltd.	Purchaseofgoods	258,280.38		NO	17,043.48
SinopharmHoldingPutianCo.,Ltd.	Purchaseofgoods	257,643.78		NO	466,764.43
SinopharmSichuanPharmaceuticalCo.,Ltd.	Purchaseofgoods	253,894.16		NO	144,648.00
SinopharmHoldingBayannurCo.,Ltd.	Purchaseofgoods	234,878.49		NO	667,045.83
SinopharmHoldingAnhuiCo.,Ltd.	Purchaseofgoods	180,725.82		NO	2,398,623.06
TaijiGroup	Purchaseofgoods	166,678.24		NO	-
JiangsuHuanghePharmaceuticalCo.,Ltd.	Purchaseofgoods	162,782.30		NO	-
SichuanJiangyouZhongbaAconitiScienceandTechnologyDevelopmentCo.,Ltd.	Purchaseofgoods	142,201.82		NO	-
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.	Purchaseofgoods	136,860.13		NO	157,222.35

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroup	Purchaseofgoods	124,447.86	8,910,000,000.00	NO	(1,875.00)
HunanYaoyouMedicinesCo.,Ltd.	Purchaseofgoods	121,513.28		NO	-
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.	Purchaseofgoods	110,206.77		NO	42,957.42
SinopharmHoldingNanpingNewforceCo.,Ltd	Purchaseofgoods	105,027.03		NO	122,980.30
SinopharmHoldingXinye(Hubei)MedicineCo.,Ltd.	Purchaseofgoods	101,222.21		NO	56,646.03
SinopharmHoldingChangshaCo.,Ltd.	Purchaseofgoods	84,558.36		NO	1,783,867.44
TaijiGroupZhejiangDongfangPharmaceuticalCo.,Ltd.	Purchaseofgoods	79,709.72		NO	-
SinopharmHoldingXinjiangSpecialDrugsYiliPharmaceuticalCo.,Ltd.	Purchaseofgoods	68,861.47		NO	-
SinopharmHoldingKunmingCo.,Ltd.	Purchaseofgoods	58,396.46		NO	-
TaijiGroupSichuanMianyangPharmaceuticalCo.,Ltd.	Purchaseofgoods	48,842.47		NO	-
SinopharmHoldingChangdeCo.,Ltd.	Purchaseofgoods	48,318.59		NO	-
SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd.	Purchaseofgoods	37,095.80		NO	46,347.42
SinopharmShyndec	Purchaseofgoods	36,180.53		NO	9,493,936.28
SinopharmHoldingOrdosCo.,Ltd.	Purchaseofgoods	35,001.77		NO	-
SinopharmInnerMongoliaMedicalEquipmentCo.,Ltd.	Purchaseofgoods	35,000.88		NO	-
SinopharmJingfang(Anhui)PharmaceuticalCo.,Ltd.	Purchaseofgoods	20,306.19		NO	766,468.52
TaijiGroupSichuanNanchongPharmaceuticalCo.,Ltd.	Purchaseofgoods	18,751.86		NO	-
SinopharmHoldingDalianHechengCo.,Ltd.	Purchaseofgoods	17,404.47		NO	48,749.02

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHoldingHainanCo.,Ltd.	Purchaseofgoods	13,042.99	8,910,000,000.00	NO	111,398.23
SinopharmMedicalInstrument(Huizhou)Co.,Ltd.	Purchaseofgoods	10,618.77		NO	-
SinopharmGroupMedicineLogisticCo.,Ltd.	Purchaseofgoods	9,450.54		NO	11,161.53
SinopharmHoldingChangshaGaoxinMedicineCo.,Ltd.	Purchaseofgoods	9,380.53		NO	32,964.60
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.	Purchaseofgoods	9,026.54		NO	9,026.54
SinopharmGroupLinfenCo.,Ltd.	Purchaseofgoods	8,257.25		NO	107,014.36
SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	Purchaseofgoods	6,578.33		NO	52,672.56
SinopharmLiaoningMedicalEquipmentCo.,Ltd.	Purchaseofgoods	4,424.78		NO	-
SinopharmHoldingZhangzhouCo.,Ltd.	Purchaseofgoods	2,835.40		NO	73,228.32
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.	Purchaseofgoods	1,850.00		NO	49,400.00
SuzhouLaishiTransfusionEquipment	Purchaseofgoods	1,019.47		NO	-
NatonBiotechnology(Beijing)Co.,Ltd.	Purchaseofgoods	63.72		NO	-
SinopharmShenzhenMedicineDeviceCo.,Ltd.	Purchaseofgoods	-		NO	4,689,458.43
ShanghaiZenoBiotechnologyCo.,Ltd.	Purchaseofgoods	-		NO	4,424,779.00
SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd.	Purchaseofgoods	-		NO	3,749,173.52
ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.	Purchaseofgoods	-		NO	3,716,814.16
SinopharmHoldingChongqingCo.,Ltd.	Purchaseofgoods	-		NO	3,106,188.00
SinopharmMedicalInstrumentHainanCo.,Ltd.	Purchaseofgoods	-		NO	2,109,734.51

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHoldingWuhanHongshenMedicineCo.,Ltd.	Purchaseofgoods	-	8,910,000,000.00	NO	1,415,929.21
Sinopharm(Dalian)MedicialDeviceCo.,Ltd.	Purchaseofgoods	-		NO	928,255.76
SinopharmHoldingChuangkeYuanzheMedicialTechnology(Shanghai)Co.,Ltd.	Purchaseofgoods	-		NO	672,566.40
SinopharmHoldingLinyiMedicialDeviceCo.,Ltd.	Purchaseofgoods	-		NO	633,769.93
SinopharmHebeiMedicalInstrumentCo.,Ltd.	Purchaseofgoods	-		NO	607,424.77
SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	581,499.90
LiaoningPilotFreeTradeZoneChinaMedicalDeviceTechnologyCo.,Ltd.	Purchaseofgoods	-		NO	260,176.99
ChengduListPharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	204,849.56
FujianChentianJinlingPharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	138,669.72
SinopharmHoldingShanxiJinzhongCo.,Ltd.	Purchaseofgoods	-		NO	119,470.72
SinopharmHoldingShanxiRunheMedicineCo.,Ltd.	Purchaseofgoods	-		NO	93,171.55
SinopharmGroupMed-TechCo.,Ltd.	Purchaseofgoods	-		NO	92,920.35
SinopharmDezhong(Foshan)PharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	53,734.51
SinopharmHoldingRizhaoCo.,Ltd.	Purchaseofgoods	-		NO	34,498.69
SinopharmHoldingJiangxiCo.,Ltd.	Purchaseofgoods	-		NO	28,244.60
SinopharmHoldingChengduPharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	11,307.62
SinopharmHoldingShiyanCo.,Ltd.	Purchaseofgoods	-		NO	2,088.50
SinopharmHoldingUlanqabCo.,Ltd.	Purchaseofgoods	-		NO	2,043.91

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmHoldingShanxiJinchengCo.,Ltd.	Purchaseofgoods	-	8,910,000,000.00	NO	171.81
SinopharmHoldingLianyungangCo.,Ltd.	Purchaseofgoods	-		NO	(478.47)
ChongqingHaisimanPharmaceuticalCo.,Ltd.	Purchaseofgoods	-		NO	(3,514.34)
SINO-TCMShanghaiMedicine&MedicinalMaterialsCo.,Ltd.	Purchaseofgoods	-		NO	(10,888.69)
SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.	Purchaseofgoods	-		NO	(191,787.19)
SinopharmHoldingBaotouCo.,Ltd.	Purchaseofgoods	(88.50)		NO	126,066.66
SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.	Purchaseofgoods	(209.96)		NO	308,584.08
SinopharmHoldingDezhouCo.,Ltd.	Purchaseofgoods	(223.18)		NO	108,484.59
SinopharmHoldingTaizhouCo.,Ltd.	Purchaseofgoods	(350.45)		NO	81,224.26
ChinaMedicalEquipmentShandongCo.,Ltd.	Purchaseofgoods	(2,177.00)		NO	14,427.65
SinopharmHoldingGuang’anCo.,Ltd.	Purchaseofgoods	(6,594.69)		NO	-
SinopharmGroupMedicineLogisticCo.,Ltd.	Storageandtransportcost,informationsystemaccessfee	9,631,686.33	80,000,000.00	NO	8,264,849.06
SinopharmGroup	Consultingservicefee	2,269,577.44		NO	-
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.	Consultingservicefee	658,831.86		NO	-
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.	Storageandtransportcost;Consultingservicefee	518,400.00		NO	-
ShanghaiTongyuInformationTechnologyCo.,Ltd.	Consultingservicefee,informationsystemaccessfee	476,169.82		NO	187,905.67

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Purchaseofgoodsandreceivingofservicesfromrelatedparties(Continued)

Relatedparty	Typeoftransaction	Forthesixmonthsended30June2021	Approvedtradingquota	whetherthetransactionlimitisexceeded	Forthesixmonthsended30June2020
SinopharmForeignTrade(Beijing)Co.,Ltd.	Equipmentmaintenancefee	141,592.92	80,000,000.00	NO	-
SinopharmHoldingHenanCo.,Ltd.	Consultingservicefee	106,046.95		NO	-
ChinaNationalPharmaceuticalForeignTradeCorporation	Equipmentmaintenancefee	68,938.05		NO	-
GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd.	Informationsystemaccessfee	49,056.60		NO	12,264.15
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	Operationservicefee	34,651.32		NO	-
XinjiangBaitongPropertyServiceCo.,Ltd.	Propertyfee	1,150.44		NO	-
SinopharmHoldingJilinCo.,Ltd.	Consultingservicefee	109.23		NO	-
SinopharmHealthOnlineCo.,Ltd.	Consultingservicefee	-		NO	7,008,590.59
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.	Consultingservicefee	-		NO	1,492,677.11
SinopharmPharmaceuticalLogisticsCo.,Ltd.	Storageandtransportcost;Consultingservicefee	-		NO	93,635.83
SinopharmLogisticsBeijingCo.,Ltd.	Storageandtransportcost;Consultingservicefee	-		NO	54,060.78

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmGroup	Saleofgoods	139,234,971.54	110,426,213.05
FoshanChanchengPharmaceuticalCo.,Ltd.	Saleofgoods	68,883,280.00	49,079,098.20
SinopharmHoldingHainanCo.,Ltd.	Saleofgoods	56,647,385.55	60,158,578.46
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.	Saleofgoods	51,633,689.10	61,896,587.65
SinopharmLerentangMedicineCo.,Ltd.	Saleofgoods	30,299,085.61	22,566,166.73
SinopharmHoldingBeijingCo.,Ltd.	Saleofgoods	20,211,375.98	12,909,717.52
SinopharmHoldingHainanHongyiCo.,Ltd.	Saleofgoods	19,732,331.43	13,367,342.74
SinopharmHoldingWenzhouCo.,Ltd.	Saleofgoods	16,294,606.34	14,794,703.17
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.	Saleofgoods	15,169,815.63	10,455,648.05
SinopharmHoldingShandongCo.,Ltd.	Saleofgoods	14,001,108.69	6,925,017.46
HandanSinopharmLerentangPharmacyChainCo.,Ltd.	Saleofgoods	13,521,643.14	1,075,458.43
ShenzhenHengshengHospital	Saleofgoods	13,376,757.25	10,629,421.43
SinopharmHoldingHenanCo.,Ltd.	Saleofgoods	12,870,576.33	9,642,957.94
FoshanChanchengCentralHospitalCo.,Ltd.	Saleofgoods	12,092,528.87	7,665,327.44
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	Saleofgoods	10,239,238.49	10,679,779.77
SinopharmholdingsBeijingHuahongCo.,Ltd.	Saleofgoods	10,138,011.45	5,763,714.05
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	Saleofgoods	8,887,736.05	1,587,426.88
SinopharmHoldingNantongCo.,Ltd.	Saleofgoods	8,373,035.18	7,861,952.62
SinopharmHoldingJinzhouCo.,Ltd.	Saleofgoods	7,182,756.92	72,477.87
SinopharmHoldingSubMarketingCenterCo.,Ltd.	Saleofgoods	6,713,774.05	5,584,808.87
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.	Saleofgoods	6,709,036.12	784,084.53
SinopharmHoldingShanxiCo.,Ltd.	Saleofgoods	6,114,523.08	2,812,873.37

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.	Saleofgoods	5,801,373.68	4,803,387.32
SinopharmHoldingHubeiCo.,Ltd.	Saleofgoods	5,725,139.41	18,913,611.09
SinopharmHoldingYangzhouCo.,Ltd.	Saleofgoods	5,243,275.79	3,233,686.62
SinopharmLerentang(Langfang)PharmaceuticalTradeCo.,Ltd.	Saleofgoods	4,540,492.31	18,101.77
FoshanChanyixingMedicineDevelopmentCoLtd.	Saleofgoods	4,356,266.82	3,705,867.85
SinopharmLerentangTangshanMedicineCo.,Ltd.	Saleofgoods	3,561,044.84	661,960.55
SinopharmLerentangXingtaiPharmaceuticalCo.,Ltd.	Saleofgoods	3,311,038.77	-
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	Saleofgoods	3,187,482.23	492,572.13
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.	Saleofgoods	2,986,283.70	3,680,499.78
SinopharmHoldingJilinCo.,Ltd.	Saleofgoods	2,942,030.47	1,599,917.79
SinopharmHoldingTianjinCo.,Ltd.	Saleofgoods	2,941,625.35	1,822,107.93
ShanghaiMerroPharmaceuticalCo.,Ltd.	Saleofgoods	2,858,507.18	3,312,398.44
SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,Ltd	Saleofgoods	2,637,455.35	16,467.26
SinopharmHoldingShanxiCo.,Ltd.	Saleofgoods	2,569,451.46	3,053,010.35
SinopharmHoldingGuizhouMedicalDeviceCo.,Ltd.	Saleofgoods	2,506,974.27	255,175.71
SinopharmLerentangBaodingTradingCo.,Ltd.	Saleofgoods	2,386,692.15	-
SinopharmLerentangBaodingHongkangPharmaceuticalChainCo.,Ltd.	Saleofgoods	2,371,766.36	1,716,599.10
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.	Saleofgoods	2,280,410.62	1,724,205.31
SinopharmSichuanPharmaceuticalCo.,Ltd.	Saleofgoods	2,270,896.31	5,574,204.53
SinopharmHoldingYunnanCo.,Ltd.	Saleofgoods	2,197,412.02	1,875,892.22
SinopharmHoldingHunanCo.,Ltd.	Saleofgoods	2,170,058.36	1,594,378.72

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmHoldingShanxiCo.,Ltd.	Saleofgoods	1,759,444.55	190,595.28
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	Saleofgoods	1,732,284.48	2,349,651.28
SinopharmHoldingAnhuiCo.,Ltd.	Saleofgoods	1,714,909.94	3,490,356.70
SinopharmGroupSouthwestMedicineCo.,Ltd.	Saleofgoods	1,686,783.92	1,891,076.22
SinopharmLerentangHengshuiMedicineCo.,Ltd.	Saleofgoods	1,541,096.39	158,792.13
SinopharmHoldingDalianCo.,Ltd.	Saleofgoods	1,505,999.43	1,320,364.57
ShanghaiGuodaLingyunPharmacyCo.,Ltd.	Saleofgoods	1,444,193.49	786,887.13
SinopharmHoldingAnshanCo.,Ltd.	Saleofgoods	1,410,135.08	-
ChinaNationalMedicinesCo.,Ltd.	Saleofgoods	1,269,341.13	2,178,096.79
SinopharmHoldingJiangxiCo.,Ltd.	Saleofgoods	1,230,819.17	499,633.43
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.	Saleofgoods	1,164,258.24	-
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.	Saleofgoods	1,152,047.45	693,361.90
SinopharmHoldingXuzhouCo.,Ltd.	Saleofgoods	1,108,631.54	1,271,612.79
ShanghaiLiyiPharmacyCo.,Ltd	Saleofgoods	1,102,980.44	690,837.84
SinopharmHoldingShangqiuCo.,Ltd.	Saleofgoods	1,039,646.02	-
SinopharmHoldingFujianCo.,Ltd.	Saleofgoods	992,070.43	51,109,674.50
SinopharmHoldingGansuCo.,Ltd.	Saleofgoods	863,189.43	662,808.94
SinopharmHoldingGuizhouCo.,Ltd.	Saleofgoods	836,038.24	749,381.57
SinopharmHoldingNingxiaCo.,Ltd.	Saleofgoods	766,385.82	607,397.50
SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd.	Saleofgoods	675,555.69	174,838.95
SinopharmHoldingWuxiCo.,Ltd.	Saleofgoods	651,490.72	545,114.34
SinopharmHoldingAnshunCo.,Ltd.	Saleofgoods	637,336.24	626,960.18
SinopharmHoldingTongrenCo.,Ltd.	Saleofgoods	608,054.18	347,824.70

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	Saleofgoods	585,023.94	477,391.38
SinopharmHoldingGuizhou(Zunyi)MedicalEquimentCo.,Ltd.	Saleofgoods	551,323.97	722,382.88
SinopharmHoldingJiangsuCo.,Ltd.	Saleofgoods	526,573.72	578,180.26
SinopharmHoldingZunyiCo.,Ltd.	Saleofgoods	497,385.52	1,078,617.62
SinopharmHoldingWuhuCo.,Ltd.	Saleofgoods	483,333.34	421,019.02
SinopharmLerentangCangzhouMedicineCo.,Ltd.	Saleofgoods	441,107.97	27,143.36
SinopharmHoldingDalianHechengCo.,Ltd.	Saleofgoods	440,610.07	39,122.93
ShenzhenChindexMedicalBeautyClinic	Saleofgoods	388,613.67	97,277.83
SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	Saleofgoods	367,752.21	282,212.28
ShanghaiShengxinPharmacyCo.,Ltd.	Saleofgoods	352,446.68	-
SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.	Saleofgoods	352,417.43	107,256.67
SinopharmLerentangTangshanMedicineCo.,Ltd.	Saleofgoods	330,239.40	-
SinopharmBaiseDeviceCo.,Ltd.	Saleofgoods	328,663.72	102,654.87
SinopharmHoldingShanxiPharmacyCo.,Ltd.	Saleofgoods	274,021.65	-
SinopharmHoldingQinghaiCo.,Ltd.	Saleofgoods	262,068.06	253,282.77
JiangmenXinhuiDistrictJianfengPharmaceuticalCo.,Ltd.	Saleofgoods	253,856.26	-
SinopharmHoldingHongheCo.,Ltd.	Saleofgoods	233,627.39	411,978.99
SinopharmLerentangXingtaiMedicineCo.,Ltd.	Saleofgoods	224,344.53	178,966.16
SinopharmHoldingJiaozuoCo.,Ltd.	Saleofgoods	220,106.10	183,421.75
SinopharmHoldingAnhuiPharmaceuticalChainCo.,Ltd.	Saleofgoods	190,577.18	-
SinopharmHoldingChuxiongCo.,Ltd.	Saleofgoods	185,415.94	83,585.92
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.	Saleofgoods	175,046.02	79,064.60

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
GuoyaoLerentangShijiazhuangMedicalManagementCo.,Ltd.	Saleofgoods	169,490.24	55,743.09
SinopharmHoldingTianjinNorthMedicineCo.,Ltd.	Saleofgoods	165,577.13	237,608.84
SinopharmHoldingChongqingCo.,Ltd.	Saleofgoods	157,390.71	98,396.45
SinopharmHoldingInnerMongoliaCo.,Ltd.	Saleofgoods	150,193.67	159,586.47
SinopharmLerentangCangzhouPharmaceuticalTradingCo.,Ltd.	Saleofgoods	143,767.71	-
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	Saleofgoods	135,104.03	8,730.28
SinopharmGuangdongMedicalExaminationCo.,Ltd.	Saleofgoods	134,910.79	163,965.18
FoshanChengnanFengliaoxingMedicialHospitalCo.,Ltd.	Saleofgoods	134,895.13	87,322.13
SinopharmHoldingBenxiCo.,Ltd.	Saleofgoods	134,235.92	-
SinopharmLerentangChengdeMedicineCo.,Ltd.	Saleofgoods	129,707.75	63,193.63
SinopharmFengliaoxingMedicalHospitalCo.,Ltd.	Saleofgoods	123,210.38	75,159.98
SinopharmHoldingPingdingshanCo.,Ltd.	Saleofgoods	121,061.94	-
SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	Saleofgoods	110,309.74	113,097.35
SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	Saleofgoods	107,351.54	-
SinopharmAdvanced(Shanghai)MedicalDeviceCo.,Ltd.	Saleofgoods	107,011.95	-
SinopharmHoldingFuzhouCo.,Ltd.	Saleofgoods	93,210.07	131,345.42
SinopharmLerentangLangfangPharmaceuticalCo.,Ltd.	Saleofgoods	88,799.03	55,538.93
SinopharmHoldingLongyanCo.,Ltd.	Saleofgoods	87,410.63	57,138.07
SinopharmHoldingHubeiHongyuanCo.,Ltd.	Saleofgoods	74,265.48	133,587.47
SinopharmMedicalInstrumentGuizhouQiannanCo.,Ltd.	Saleofgoods	70,346.37	16,276.77

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)

Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmLerentangHandanMedicineCo.,Ltd.	Saleofgoods	69,991.28	18,101.77
SinopharmHoldingWuhanGuodaPharmacyCo.,Ltd.	Saleofgoods	66,101.95	-
SinopharmLerentangBaodingMedicineCo.,Ltd.	Saleofgoods	57,943.93	32,999.89
SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	Saleofgoods	55,499.70	84,353.70
SinopharmZhijun	Saleofgoods	54,493.27	3,922.08
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	Saleofgoods	48,348.50	8,494.51
SinopharmHoldingProfessionalPharmacy(Hainan)Co.,Ltd.	Saleofgoods	40,146.37	-
SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd.	Saleofgoods	35,758.14	41,262.69
SinopharmHoldingPutianCo.,Ltd.	Saleofgoods	26,888.49	53,777.00
SinopharmHoldingYanchengCo.,Ltd.	Saleofgoods	25,340.97	556,583.59
ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.	Saleofgoods	25,022.45	11,412.30
SinopharmHoldingChangzhouCo.,Ltd.	Saleofgoods	21,218.05	110,397.17
ChongqingTongjungeCo.,Ltd.	Saleofgoods	19,289.52	-
SichuanTaijiPharmacyChainCo.,Ltd.	Saleofgoods	18,141.59	-
SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.	Saleofgoods	16,629.61	5,383.97
SinopharmHoldingZhuanyePharmacy(Dongfang)Co.,Ltd.	Saleofgoods	14,607.52	8,438.69
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited	Saleofgoods	13,825.24	-
SinopharmHoldingNingdeCo.,Ltd.	Saleofgoods	10,083.19	30,249.56
SinopharmHoldingChangxingProfessionalPharmacy(Haikou)Co.,Ltd.	Saleofgoods	6,978.32	12,993.87
SinopharmHoldingTaizhouCo.,Ltd.	Saleofgoods	5,834.87	68,810.53

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmHoldingPharmacy(Shanghai)Co.,Ltd.	Saleofgoods	4,862.18	-
SinopharmGroupFengliaoxingMedicalHospital(FoshanNanhai)Co.,Ltd.	Saleofgoods	3,939.20	2,261.97
SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.	Saleofgoods	2,902.65	34,988.29
SinopharmHoldingDalianSpecialDrugsPharmaceuticalCo.,Ltd.	Saleofgoods	2,831.86	-
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	Saleofgoods	2,795.57	-
SinopharmHolding(Shandong)MedicineDeviceCo.,Ltd.	Saleofgoods	2,492.03	-
SinopharmHoldingProfessionalPharmacySongyuanCo.,Ltd.	Saleofgoods	1,231.86	-
SinopharmMedicalInstrument(Jiangmen)Co.,Ltd.	Saleofgoods	884.96	-
SinopharmHoldingShenyangCo.,Ltd.	Saleofgoods	839.65	92,078.76
SinopharmHoldingXinyuCo.,Ltd.	Saleofgoods	632.94	-
LecongSupplyandMarketGroupShunketangMedicineCo.,Ltd.	Saleofgoods	58.41	-
SinopharmHoldingTongliaoCo.,Ltd.	Saleofgoods	45.14	-
SinopharmHoldingSuzhouCo.,Ltd.	Saleofgoods	3.54	-
SinopharmZhuhaiMedicalInstrumentCo.,Ltd.	Saleofgoods	-	7,446,238.57
ChindexInternationalTrading(Shanghai)Co.,Ltd.	Saleofgoods	-	3,037,167.60
ChinaSinopharmInternationalCorporation	Saleofgoods	-	2,988,690.22
SinopharmHoldingQuanzhouCo.,Ltd.	Saleofgoods	-	1,628,615.99
ZhijunPingshan	Saleofgoods	-	297,706.43
DongyuanAccord	Saleofgoods	-	230,559.29
YuxiSinopharmMedicineCo.,Ltd.	Saleofgoods	-	226,147.04
FoshanChanchengDistrictShiwanTownChengnanCommunityHealthServiceCenter	Saleofgoods	-	207,388.60

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmHunanProv.MedicalEquipmentCo.,Ltd.	Saleofgoods	-	142,300.88
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	Saleofgoods	-	84,955.75
SinopharmHoldingQianxi’nanCo.,Ltd.	Saleofgoods	-	47,058.57
SinopharmHoldingFuzhouCo.,Ltd.	Saleofgoods	-	36,927.44
GuangdongYifangPharmaceuticalCo.,Ltd.	Saleofgoods	-	27,079.65
SinopharmHoldingKunmingPharmacyCo.,Ltd.	Saleofgoods	-	26,664.78
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.	Saleofgoods	-	25,300.89
SinopharmGuanaiJikunPharmacy(Haikou)Co.,Ltd.	Saleofgoods	-	17,838.67
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.	Saleofgoods	-	12,682.56
SinopharmLerentangLangfangMedicineCo.,Ltd.	Saleofgoods	-	7,323.36
MainLuckPharmaceutical	Saleofgoods	-	6,610.62
SinopharmHoldingXiamenCo.,Ltd.	Saleofgoods	-	5,889.38
SinopharmHoldingZhenjiangCo.,Ltd.	Saleofgoods	-	5,614.16
GuangdongJienuo	Saleofgoods	-	2,657.08
SinopharmMedicalInstrument(Hainan)Co.,Ltd.	Saleofgoods	-	1,805.31
SinopharmHoldingGuizhouMedicialChainCo.,Ltd.	Saleofgoods	-	1,340.53
SinopharmHoldingShanxiHejinPharmaceuticalCo.,Ltd.	Saleofgoods	-	1,187.61
SinopharmHoldingUlanqabCo.,Ltd.	Saleofgoods	-	(555.14)
SinopharmHoldingJilinChainStoreCo.,Ltd.	Saleofgoods	-	(16,556.17)
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.	Saleofgoods	-	(26,464.91)
SinopharmHoldingChengduCo.,Ltd.	Saleofgoods	(20,800.88)	238,592.93

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmGroupMedicineLogisticCo.,Ltd.	Transportandstorageincome	4,729,519.50	3,176,727.67
ChinaNationalMedicinesCo.,Ltd.	Subleaseincome,transportandstorageincome	1,658,616.64	3,116,205.52
SinopharmZhijun	Subleaseincome,canteenincome	1,299,722.86	1,250,273.36
SinopharmGuangdongMedicineDeviceSupplyChainCo.,Ltd.	Consultingserviceincome	498,556.31	82,325.73
SinopharmHoldingSubMarketingCenterCo.,Ltd.	Consultingserviceincome	404,513.64	1,253,573.97
GuangdongJienuo	Transportandstorageincome	252,229.35	-
ZhijunTrade	Subleaseincome	157,142.88	285,714.30
SinopharmMedicalInstrumentGuangxiMedicalTechnologyCo.,Ltd.	SPDserviceincome	135,813.29	-
SinopharmBaiseDeviceCo.,Ltd.	SPDserviceincome	104,923.15	-
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited	Subleaseincome	102,102.49	97,240.50
SinopharmMedicalInstrument(Foshan)Co.,Ltd.	SPDserviceincome	89,941.38	-
ZhijunPingshan	Transportandstorageincome	83,186.24	129,797.90
SinopharmGroupSouthwestMedicineCo.,Ltd.	Transportandstorageincome	79,480.00	-
SinopharmHoldingShanxiZhongjianMedicalDeviceChainCo.,Lt	Businesspromotionincome	51,415.10	-
SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	Businesspromotionincome	50,471.71	-
SinopharmHoldingShanxiCo.,Ltd.	Businesspromotionincome	31,886.79	1,886.79

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices(Continued)

RelatedParty	Typeoftransaction	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020
SinopharmHoldingJilinCo.,Ltd.	Transportandstorageincome	26,000.00	-
SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	SPDserviceincome	25,173.94	-
SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	SPDserviceincome	19,777.54	-
SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.	Businesspromotionincome	15,377.36	-
SinopharmHoldingShenyangCo.,Ltd.	Consultingserviceincome	2,452.83	-
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	Consultingserviceincome	1,523.21	-
SinopharmMedicalInstrument(Huizhou)Co.,Ltd.	Consultingserviceincome	173.96	-
SinopharmHoldingHubeiCo.,Ltd.	Transportandstorageincome	-	81,773.22
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.	Consultingserviceincome	-	17,169.81
ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.	Consultingserviceincome	-	2.64

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(2)Relatedpartytransactions-leases

(a)Asthelessor
	Typeofassetsunderleases	IncomefromleasesForthesixmonthsended30June2021	IncomefromleasesForthesixmonthsended30June2020

SinopharmZhijun	Building	957,142.86	957,142.86
ZhijunTrade	Building	157,142.88	285,714.30
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited	Building	102,102.49	97,240.50
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	Building	66,666.66	-
ChinaNationalMedicinesCo.,Ltd.	Building	52,554.86	52,554.86

(b)Asthelessee
	Typeofassetsunderleases	ExpensefromleasesForthesixmonthsended30June2021	ExpensefromleasesForthesixmonthsended30June2020
HunanMinshengtangBiotechnologyCo.,Ltd.	Building	7,317,209.70	-
SinopharmGroup	Building	5,406,057.00	-
SinopharmGroupMedicineLogisticCo.,Ltd.	Equipment	3,749,999.99	3,750,000.00
SinopharmGroupMedicineLogisticCo.,Ltd.	Building	3,539,999.99	3,540,000.00
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	Building	5,536,320.75	5,296,226.44
LerentangInvestmentGroupCo.,Ltd.	Building	4,361,467.88	3,224,047.60
ShenyangPharmaceuticalCo.,Ltd.	Building	3,543,964.78	3,571,428.61
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	Building	2,748,595.47	3,786,173.34
SinopharmHoldingYangzhouCo.,Ltd.	Building	1,866,023.82	-
NanjingYuanguangTradingCo.,Ltd.	Building	1,077,247.29	1,923,809.52
GuangdongJiyuantangDevelopmentCo.,Ltd.	Building	921,180.26	978,504.36
SinopharmHoldingShanxiJinchengCo.,Ltd.	Building	600,000.00	-
SinopharmGroupShanghaiCo.,Ltd.	Building	586,365.00	2,031,905.96
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.	Building	508,827.42	478,984.74
XishuangbannaDishengPharmaceuticalCo.,Ltd.	Building	405,799.98	-
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	Building	360,000.00	-
TaishanXiangranhuiTradeCo.,Ltd.	Equipment	462,670.01	389,625.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(2)Relatedpartytransactions-leases(Continued)

(b)Asthelessee(Continued)
	Typeofassetsunderleases	ExpensefromleasesForthesixmonthsended30June2021	ExpensefromleasesForthesixmonthsended30June2020
ZhangYechuan	Building	333,046.64	-
WangYang	Building	312,305.70	295,868.56
LiFang	Building	269,047.62	254,761.90
SinopharmHoldingBeijingCo.,Ltd.	Building	272,400.00	-
GuangxiYifangTianjiangPharmaceuticalCo.,Ltd.	Building	257,389.00	-
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.	Building	242,857.14	181,428.58
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	Building	216,191.74	-
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.	Building	215,968.52	-
GuJinhua	Building	187,740.00	178,800.00
SinopharmXinjiangPharmaceuticalCo.,Ltd.	Building	177,233.88	-
BeijingHuafangInvestmentCo.,Ltd.	Building	119,004.08	120,934.28
Southeast(Quanzhou)BiotechnologyPharmaceuticalCo.,Ltd.	Building	118,025.28	-
GuHaiqun	Building	104,099.04	99,143.81
ShenzhenJiufengInvestmentCo.,Ltd.	Building	92,279.59	-
ZhangHaiyan	Building	85,714.26	-
ZhijunPingshan	Building	50,917.44	-
ZhangGuitang	Building	49,714.26
TaishanQunkangPharmacyCo.,Ltd.	Equipment	11,258.41	-
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	Building	-	2,971,727.14
Pu'erSongmaoMedicineGroupCo.,Ltd.	Building	-	1,984,761.90
SinopharmHoldingRizhaoCo.,Ltd.	Building	-	436,785.87
HangzhouXihuDistrictCommercialCo.,Ltd.	Building	-	146,438.10
ChinaNationalMedicinesCo.,Ltd.	Building	-	142,857.14
TaishanQunkangPharmacyCo.,Ltd.	Building	-	70,850.46

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	71,629,923.57	25February2021	25August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	54,707,698.10	25February2021	25May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	94,787,926.58	6May2021	6August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	50,462,024.83	17May2021	17August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	48,621,724.23	26February2021	26May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	47,123,809.11	30April2021	30October2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	30,698,840.96	29January2021	29July2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	13,237,656.55	29January2021	29April2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	41,035,658.40	5February2021	5May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	36,462,587.66	10May2021	30June2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	19,867,578.99	19May2021	19August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	15,663,049.52	19May2021	19September2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	34,614,169.13	30June2021	30December2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	33,675,870.87	26May2021	26August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	26,570,964.00	10February2021	10May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	19,998,663.88	20May2021	20August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	5,650,549.88	20May2021	27August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	25,471,272.13	31May2021	31August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	25,123,710.36	3June2021	3September2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	24,991,580.40	23June2021	23September2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	24,272,643.76	8February2021	8May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	22,224,875.91	28January2021	28April2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	20,712,214.94	7May2021	7August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	20,341,265.01	4February2021	4May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	19,215,568.92	24February2021	24May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	18,756,773.39	22February2021	22May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	17,331,983.85	15April2021	30June2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	9,569,134.14	17June2021	29October2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	6,424,446.52	17June2021	8October2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	15,853,329.24	25May2021	27August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	12,201,711.11	1April2021	30June2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	11,497,531.01	12May2021	12August2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	8,830,838.40	09June2021	08October2021	Short-termborrowings

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	8,222,169.28	7February2021	7May2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	5,876,451.19	27April2021	30June2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	5,042,535.17	25June2021	25December2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	4,283,314.86	10June2021	10September2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	4,060,815.23	18June2021	26October2021	Short-termborrowings
SinopharmGroupFinanceCo.,Ltd.	44,296,134.90	20January2021	29April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	36,495,375.70	20January2021	29March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	20,957,120.78	20January2021	5July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	13,865,920.44	20January2021	23February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	12,428,990.00	20January2021	17May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	10,882,062.53	20January2021	23March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	10,214,229.97	20January2021	24March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	10,000,000.00	20January2021	6May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	9,565,723.90	20January2021	30March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	7,799,879.19	20January2021	7July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	7,590,732.63	20January2021	16March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	7,042,747.95	20January2021	7April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,537,002.78	20January2021	12February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,026,702.20	20January2021	14July2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	4,926,793.36	20January2021	26February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,907,195.62	20January2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,506,000.00	20January2021	27July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,888,241.63	20January2021	25February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,398,007.79	20January2021	30September2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,058,953.56	20January2021	28March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,740,000.00	20January2021	3April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,396,451.40	20January2021	27February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,200,000.00	20January2021	28April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	20January2021	6July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,822,498.07	20January2021	31March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,448,834.11	20January2021	23April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,157,784.94	20January2021	30April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,108,342.37	20January2021	14April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,017,440.00	20January2021	4March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,000,000.00	20January2021	9February2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	54,801,891.65	13January2021	28May2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	38,986,447.03	13January2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	30,000,000.00	13January2021	27August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	22,265,381.78	13January2021	23June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	19,674,402.16	13January2021	25June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,835,167.48	13January2021	29June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,783,483.59	13January2021	21March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,519,239.80	13January2021	19November2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,471,900.80	13January2021	11May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,164,873.99	13January2021	5May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,858,045.62	13January2021	8September2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	13January2021	28June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,523,993.34	13January2021	7June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,500,000.00	13January2021	19May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,292,152.37	13January2021	12August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	18,680,231.59	17May2021	26July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	15,883,376.88	17May2021	27July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	14,286,605.28	17May2021	28July2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	13,480,000.00	17May2021	25July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,796,478.52	17May2021	10August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,273,537.35	17May2021	30July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,378,924.20	17May2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,960,609.75	17May2021	23July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,703,388.49	17May2021	22June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,595,598.82	17May2021	29October2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,182,401.59	17May2021	3August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,008,800.00	17May2021	11November2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,700,944.91	17May2021	29July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,488,466.57	17May2021	7August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,361,657.30	17May2021	8July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,038,005.12	17May2021	10June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,035,276.72	17May2021	2July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	997,255.88	17May2021	16June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	616,725.82	17May2021	22July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	561,672.80	17May2021	14July2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	10,459,326.96	9February2021	25April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	9,152,110.07	9February2021	27April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	7,677,033.25	9February2021	29April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,880,000.00	9February2021	26April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,659,793.42	9February2021	28March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,000,000.00	9February2021	22July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,262,169.90	9February2021	24March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,168,433.40	9February2021	30April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	9February2021	21July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	9February2021	20July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,958,612.59	9February2021	22April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,741,698.80	9February2021	30March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,602,467.58	9February2021	24June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,065,088.90	9February2021	28June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	900,094.07	9February2021	25June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	848,393.16	9February2021	2March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	753,663.52	9February2021	4March2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	710,000.00	9February2021	11March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	637,104.40	9February2021	25March2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	564,197.26	9February2021	14April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	500,000.00	9February2021	13April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	500,000.00	9February2021	16April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	25,075,659.76	20February2021	25July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	8,060,000.00	20February2021	26April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	6,309,241.36	20February2021	27July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	5,467,954.90	20February2021	27April2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,358,800.90	20February2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,873,122.00	20February2021	5July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,500,000.00	20February2021	28July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	18,000,000.00	22February2021	22June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	17,139,076.55	22February2021	28June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,013,193.00	22February2021	25June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,337,172.57	22February2021	24July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,211,874.00	22February2021	5July2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	14,670,958.74	4March2021	22August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	5,617,316.39	4March2021	29July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	5,321,515.08	4March2021	25May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,147,744.22	4March2021	26August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,044,614.59	4March2021	28August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,900,000.00	4March2021	24August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,189,149.82	4March2021	23May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	371,529.55	4March2021	24May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	13,008,065.85	5March2021	27November2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	4,593,633.89	5March2021	31May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,274,404.52	5March2021	27July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	3,000,000.00	5March2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,275,132.93	5March2021	26August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,812,568.88	5March2021	20May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,642,356.60	5March2021	18May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,638,360.00	5March2021	25January2022	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,379,729.57	5March2021	23July2021	Discountonbankacceptancebill

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
SinopharmGroupFinanceCo.,Ltd.	1,000,000.00	5March2021	26May2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	883,068.00	5March2021	5July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	751,251.30	5March2021	9July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	10,000,000.00	20April2021	24September2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	9,055,204.07	20April2021	22August2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	5,819,577.00	20April2021	24June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	5,000,000.00	20April2021	13October2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	20April2021	30June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	1,370,000.00	20April2021	26June2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	23,539,009.32	29April2021	27July2021	Discountonbankacceptancebill
SinopharmGroupFinanceCo.,Ltd.	2,000,000.00	29April2021	21July2021	Discountonbankacceptancebill
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	33,000,000.00	22April2021	21April2022	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	1,500,000.00	22April2021	20August2021	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	1,500,000.00	22April2021	21October2021	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	9,900,000.00	14May2021	13May2022	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	4,500,000.00	30March2021	29March2022	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	1,500,000.00	30March2021	29September2021	Short-termborrowings

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(3)Relatedpartytransactions-Financing(Continued)

RelatedParty	Amount	InceptionDate	MaturityDate	Note
Borrowfrom
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	4,500,000.00	21June2021	20June2022	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	4,500,000.00	19April2021	18June2021	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	4,500,000.00	15January2021	14April2022	Short-termborrowings
JilinProvinceYiheInvestmentConsultingCo.,Ltd.	3,750,000.00	18May2021	17May2022	Short-termborrowings

(4)Relatedpartyassettransfer

Relatedparty

Typesoftransaction

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

ShanghaiTongyuInformationTechnologyCo.,Ltd.	Purchaseofanintangibleasset	161,045.25	-
ShanghaiTongyuInformationTechnologyCo.,Ltd.	Purchaseofaconstructioninprogress	103,797.89	-

(5)Remunerationforkeymanagementpersonnel

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Remunerationforkeymanagementpersonnel

3,729,169.00

4,375,318.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(6)Otherrelatedpartytransactions

Interestexpense
Relatedparty	Typesoftransactions	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020

SinopharmGroupFinanceCo.,Ltd.	Paymentofnotesdiscountinterest	8,036,560.44	3,199,207.88
SinopharmGroupFinanceCo.,Ltd.	Paymentoffinancecompaniesloaninterest	5,933,752.64	1,882,094.57
JilinYiheInvestmentConsultingCo.,Ltd	Paymentofentrustedloaninterest	1,289,047.50	-
ChinaPharmaceuticalGroupCo.,Ltd	Paymentofentrustedloaninterest	611,679.44	513,884.11
SinopharmGroupFinanceCo.,Ltd.	Paymentofrelatedpartiesloaninterest	-	1,311,742.70
SinopharmHoldingCo.,Ltd	Paymentofentrustedloaninterest	-	1,035,984.12
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	Paymentofrelatedpartiesloaninterest	-	44,007.71

15,871,040.02

7,986,921.09

Interestincome
Relatedparty	Typesoftransactions	Forthesixmonthsended30June2021	Forthesixmonthsended30June2020

SinopharmGroupFinanceCo.,Ltd.

Depositinterest

190,537.17

17,036.24

190,537.17

17,036.24

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties

(1).AccountsReceivable

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmGroup	59,684,699.84	-	51,044,738.77	-
Accountsreceivable	FoshanChanchengPharmaceuticalCo.,Ltd.	55,897,388.44	382,518.20	50,457,076.93	331,221.14
Accountsreceivable	SinopharmLerentangMedicineCo.,Ltd.	17,212,247.23	-	11,339,926.55	-
Accountsreceivable	SinopharmHealthOnlineCo.,Ltd.	16,591,484.79	-	5,961,622.28	-
Accountsreceivable	SinopharmHoldingHainanCo.,Ltd.	16,079,241.71	-	9,263,188.55	-
Accountsreceivable	ShanghaiBeiyi	12,620,973.07	-	26,066,542.88	-
Accountsreceivable	HandanSinopharmLerentangPharmacyChainCo.,Ltd.	9,594,611.38	-	832,391.06	-
Accountsreceivable	SinopharmHoldingBeijingCo.,Ltd.	8,097,092.09	-	9,329,174.72	-
Accountsreceivable	FoshanChanchengCentralHospitalCo.,Ltd.	7,747,869.21	50,335.53	6,199,898.17	38,953.63
Accountsreceivable	SinopharmHoldingHainanHongyiCo.,Ltd.	6,678,714.03	-	5,347,075.47	-
Accountsreceivable	ShenzhenHengshengHospital	6,589,721.27	-	5,376,978.17	-
Accountsreceivable	SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.	4,880,354.02	-	4,380,633.00	-
Accountsreceivable	SinopharmLerentangBaodingHongkangPharmaceuticalChainCo.,Ltd.	4,540,010.19	-	3,464,166.50	-
Accountsreceivable	BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	4,289,053.68	-	4,397,286.71	-
Accountsreceivable	SinopharmHoldingHenanCo.,Ltd.	4,139,688.62	-	2,144,155.36	-
Accountsreceivable	SinopharmHoldingWenzhouCo.,Ltd.	4,048,268.69	-	3,142,596.82	-
Accountsreceivable	SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.	3,834,188.90	-	2,049,971.85	-
Accountsreceivable	SinopharmHoldingsBeijingHuahongco.,Ltd.	3,673,535.53	-	1,811,083.32	-
Accountsreceivable	SinopharmHoldingShandongCo.,Ltd.	2,831,043.88	-	76,095.93	-
Accountsreceivable	SinopharmHoldingShanxiCo.,Ltd.	2,816,264.17	-	771,816.12	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmHoldingJilinCo.,Ltd.	2,528,223.55	-	208,589.40	-
Accountsreceivable	FoshanChanyixingMedicineDevelopmentCo.,Ltd.	2,509,939.17	13,136.36	3,445,722.95	17,975.48
Accountsreceivable	SinopharmHoldingSubMarketingCenterCo.,Ltd.	2,432,642.59	-	2,237,094.40	-
Accountsreceivable	SinopharmHoldingNantongCo.,Ltd.	2,304,018.16	-	62,224.62	-
Accountsreceivable	SinopharmLerentangBaodingTradingCo.,Ltd.	2,035,819.17	-	1,645,313.00	-
Accountsreceivable	SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.	1,997,891.99	-	943,539.89	-
Accountsreceivable	SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,Ltd.	1,889,841.32	-	1,067,964.98	-
Accountsreceivable	SinopharmLerentangTangshanMedicineCo.,Ltd.	1,860,045.69	-	997,312.62	-
Accountsreceivable	SinopharmHoldingShanxiCo.,Ltd.	1,846,421.01	-	94,929.87	-
Accountsreceivable	SinopharmHoldingHubeiCo.,Ltd.	1,554,241.15	-	1,252,860.26	-
Accountsreceivable	SinopharmHoldingYangzhouCo.,Ltd.	1,462,063.19	-	1,092,414.55	-
Accountsreceivable	SinopharmLerentang(Langfang)PharmaceuticalTradeCo.,Ltd.	1,401,228.87	-	1,294,279.54	-
Accountsreceivable	HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.	1,348,814.00	-	1,814,506.00	-
Accountsreceivable	SinopharmHoldingDalianCo.,Ltd.	1,183,889.64	-	657,906.20	-
Accountsreceivable	ShanghaiMerroPharmaceuticalCo.,Ltd.	1,127,455.20	-	1,648,042.00	-
Accountsreceivable	SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.	1,125,141.84	-	1,337,124.28	-
Accountsreceivable	SinopharmHoldingShanxiCo.,Ltd.	1,009,330.58	-	63,447.29	-
Accountsreceivable	SinopharmHoldingTianjinCo.,Ltd.	837,878.00	-	568,733.37	-
Accountsreceivable	ShanghaiGuodaLingyunPharmacyCo.,Ltd.	824,587.38	-	664,836.26	-
Accountsreceivable	SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.	790,661.48	-	225,394.20	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmHoldingHunanCo.,Ltd.	665,593.65	-	476,299.62	-
Accountsreceivable	SinopharmHoldingWuxiCo.,Ltd.	648,747.00	-	129,862.00	-
Accountsreceivable	SinopharmLerentangHengshuiMedicineCo.,Ltd.	627,902.87	-	1,197,573.36	-
Accountsreceivable	SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	623,234.72	-	1,385,097.14	-
Accountsreceivable	SinopharmLerentangXingtaiPharmaceuticalCo.,Ltd.	577,711.40	-	82,171.75	-
Accountsreceivable	SinopharmSichuanPharmaceuticalCo.,Ltd.	510,242.85	-	1,437,709.48	-
Accountsreceivable	SinopharmHoldingXuzhouCo.,Ltd.	483,736.52	-	227,353.60	-
Accountsreceivable	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	482,610.48	-	1,257,499.80	-
Accountsreceivable	SinopharmHoldingYunnanCo.,Ltd.	425,758.31	-	139,122.62	-
Accountsreceivable	ChinaNationalMedicinesCo.,Ltd.	409,622.43	-	333,566.22	-
Accountsreceivable	SinopharmHoldingGansuCo.,Ltd.	396,351.02	-	14,543.96	-
Accountsreceivable	SinopharmHoldingAnhuiCo.,Ltd.	387,196.36	-	74,455.49	-
Accountsreceivable	SinopharmHoldingJinzhouCo.,Ltd.	376,206.03	-	587,192.90	-
Accountsreceivable	SinopharmHoldingAnshanCo.,Ltd.	341,765.32	-	81,120.00	-
Accountsreceivable	SinopharmGroupSouthwestMedicineCo.,Ltd.	339,980.82	-	192,876.72	-
Accountsreceivable	SinopharmHoldingJiangxiCo.,Ltd.	327,835.60	-	114,697.32	-
Accountsreceivable	SinopharmHoldingNingxiaCo.,Ltd.	240,560.00	-	50,448.00	-
Accountsreceivable	SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	237,868.93	-	921,543.58	-
Accountsreceivable	SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	207,780.00	-	169,080.04	-
Accountsreceivable	SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	200,134.47	-	120,058.61	-
Accountsreceivable	SinopharmHoldingShanxiPharmacyCo.,Ltd.	161,494.00	-	-	-
Accountsreceivable	SinopharmHoldingGuizhouCo.,Ltd.	145,406.38	-	79,571.94	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	140,111.40	-	62,413.00	-
Accountsreceivable	SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.	139,548.04	-	10,333.92	-
Accountsreceivable	SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.	130,741.00	-	-	-
Accountsreceivable	SinopharmHoldingJiangsuCo.,Ltd.	122,527.35	-	138,015.90	-
Accountsreceivable	SinopharmLerentangTangshanMedicineCo.,Ltd.	112,190.04	-	-	-
Accountsreceivable	SinopharmHoldingFujianCo.,Ltd.	106,344.00	-	258,264.00	-
Accountsreceivable	ShanghaiLiyi	106,314.44	-	237,727.36	-
Accountsreceivable	SinopharmLerentangLangfangPharmaceuticalCo.,Ltd.	100,342.90	-	102,413.00	-
Accountsreceivable	SinopharmHoldingDalianHechengCo.,Ltd.	99,164.02	-	16,766.22	-
Accountsreceivable	SinopharmMedicalInstrument(Foshan)Co.,Ltd.	95,337.86	-	-	-
Accountsreceivable	SinopharmHoldingQinghaiCo.,Ltd.	83,207.22	-	57,312.76	-
Accountsreceivable	SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	71,875.21	-	-	-
Accountsreceivable	SinopharmHoldingWuhanGuodaPharmacyCo.,Ltd.	68,085.00	-	-	-
Accountsreceivable	SinopharmLerentangChengdeMedicineCo.,Ltd.	65,785.14	-	-	-
Accountsreceivable	SinopharmHoldingChuxiongCo.,Ltd.	61,759.70	-	-	-
Accountsreceivable	SinopharmHoldingHongheCo.,Ltd.	55,179.48	-	-	-
Accountsreceivable	SinopharmHoldingBenxiCo.,Ltd.	52,679.28	-	-	-
Accountsreceivable	SinopharmZhijun	50,503.75	-	41,533.50	-
Accountsreceivable	SinopharmHoldingProfessionalPharmacy(Hainan)Co.,Ltd.	45,365.40	-	-	-
Accountsreceivable	SinopharmHoldingInnerMongoliaCo.,Ltd.	45,137.28	-	16.00	-
Accountsreceivable	ShanghaiShengxinPharmacyCo.,Ltd.	42,289.16	-	217,507.20	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmMedicalInstrumentGuangxiMedicalTechnologyCo.,Ltd.	42,276.91	-	-	-
Accountsreceivable	SinopharmLerentangZhangjiakouMedicineCo.,Ltd.	40,042.75	-	-	-
Accountsreceivable	SinopharmLerentangShijiazhuangMedicalManagementCo.,Ltd.	38,872.60	-	74,424.44	-
Accountsreceivable	SinopharmLerentangHandanMedicineCo.,Ltd.	37,771.71	-	11,012.40	-
Accountsreceivable	SinopharmLerentangCangzhouPharmaceuticalTradingCo.,Ltd.	37,491.28	-	470,726.50	-
Accountsreceivable	SinopharmHoldingAnshunCo.,Ltd.	37,206.55	-	20,656.00	-
Accountsreceivable	SinopharmLerentangBaodingMedicineCo.,Ltd.	35,216.00	-	13,056.35	-
Accountsreceivable	SinopharmLerentangCangzhouMedicineCo.,Ltd.	30,282.41	-	39,136.40	-
Accountsreceivable	FoshanChengnanFengliaoxingMedicalHospitalCo.,Ltd.	28,152.70	3.53	37,151.74	10.36
Accountsreceivable	SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	26,684.38	-	-	-
Accountsreceivable	SinopharmHoldingTianjinNorthMedicineCo.,Ltd.	25,316.96	-	68,180.00	-
Accountsreceivable	SinopharmHoldingFuzhouCo.,Ltd.	24,627.20	-	88.00	-
Accountsreceivable	SinopharmFengliaoxingMedicalHospitalCo.,Ltd.	18,658.86	164.15	15,505.90	131.93
Accountsreceivable	SinopharmHoldingZunyiCo.,Ltd.	17,159.10	-	-	-
Accountsreceivable	SinopharmLerentangXintaiMedicineCo.,Ltd.	12,579.33	-	34,154.44	-
Accountsreceivable	SinopharmHoldingZhuanyePharmacy(Dongfang)Co.,Ltd.	11,282.50	-	3,560.10	-
Accountsreceivable	SinopharmHoldingChengduCo.,Ltd.	10,563.41	-	34,068.41	-
Accountsreceivable	SinopharmHoldingChangxingProfessionalPharmacy(Haikou)Co.,Ltd.	6,667.50	-	-	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Accountsreceivable	SinopharmLerentangHealthcareShijiazhuangPharmacyCo.,Ltd.	4,415.33	-	1,491.33	-
Accountsreceivable	SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	3,159.00	-	-	-
Accountsreceivable	SinopharmHoldingHongrunMedicalBusinessService(Shanghai)Co.,Ltd.	3,081.60	-	5,602.42	-
Accountsreceivable	ShanghaiHenliusBiopharmaceuticalsCo.,Ltd.	1,798.00	-	-	-
Accountsreceivable	SinopharmMedicalInstrument(Jiangmen)Co.,Ltd.	1,000.00	-	-	-
Accountsreceivable	SinopharmHoldingPharmacy(Shanghai)Co.,Ltd.	768.70	-	-	-
Accountsreceivable	SinopharmGroupFengliaoxingMedicalHospital(FoshanNanhai)Co.,Ltd.	56.74	0.57	916.62	9.17
Accountsreceivable	SinopharmHoldingTongliaoCo.,Ltd.	9.60	-	-	-
Accountsreceivable	ChinaNationalPharmaceuticalForeignTradeCorporation	-	-	299,402.99	-
Accountsreceivable	FoshanChanchengDistrictShiwanTownChengnanCommunityHealthServiceCenter	-	-	160,285.82	396.20
Accountsreceivable	SinopharmHoldingYanchengCo.,Ltd.	-	-	65,635.20	-
Accountsreceivable	SinopharmHoldingChangzhouCo.,Ltd.	-	-	14,975.52	-
Accountsreceivable	JiangmenXinhuiDistrictJianfengPharmaceuticalCo.,Ltd.	-	-	3,652.00	-
Accountsreceivable	SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.	-	-	3,456.00	-
Accountsreceivable	SinopharmGuanaiYuankangPharmacy(Haikou)Co.,Ltd.	-	-	2,301.60	-
Accountsreceivable	SinopharmHoldingShenyangCo.,Ltd.	-	-	440.00	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Notereceivable	SinopharmHoldingHainanCo.,Ltd.	7,790,377.25	-	48,549,280.19	-
Notereceivable	SinopharmHoldingHainanHongyiCo.,Ltd.	3,648,399.46	-	9,445,722.78	-
Notereceivable	SinopharmHoldingBeijingCo.,Ltd.	2,752,320.00	-	2,795,361.96	-
Notereceivable	SinopharmHoldingShanxiCo.,Ltd.	927,668.77	-	650,373.76	-
Notereceivable	InnostarBiotechnologyNantongCo.,Ltd	15,550.30	-	-	-
Notereceivable	SinopharmHoldingShandongCo.,Ltd.	-	-	1,355,084.16	-
Notereceivable	SinopharmLerentangMedicineCo.,Ltd.	-	-	909,517.66	-
Notereceivable	SinopharmHoldingZunyiCo.,Ltd.	-	-	803,004.11	-
Notereceivable	SinopharmHoldingGuizhouYitongMedicineCo.,Ltd.	-	-	357,540.60	-
Notereceivable	SinopharmHoldingAnshanCo.,Ltd.	-	-	313,535.20	-
Notereceivable	SinopharmHoldingJinzhouCo.,Ltd.	-	-	300,000.00	-
Notereceivable	SinopharmHoldingGansuCo.,Ltd.	-	-	175,281.40	-
Notereceivable	SinopharmHoldingGuizhouCo.,Ltd.	-	-	158,268.10	-
Notereceivable	SinopharmHoldingAnhuiCo.,Ltd.	-	-	140,856.05	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Otherreceivable	ZhijunSuzhou	46,334,222.24	46,334,222.24	46,334,222.24	ZhijunSuzhou
Otherreceivable	XishuangbannaDishengPharmaceuticalCo.,Ltd.	16,046,032.95	-	-	-
Otherreceivable	SinopharmGroupMedicineLogisticCo.,Ltd.	3,662,451.54	-	2,559,772.89	-
Otherreceivable	JiangsuWanbangPharmacyMarketingCo.,Ltd.	1,106,077.40	-	220,000.00	-
Otherreceivable	SinopharmShyndec	983,940.00	-	983,940.00	-
Otherreceivable	SinopharmHolding(China)FinancingLeaseCo.,Ltd.	938,513.78	-	570,000.00	-
Otherreceivable	SinopharmHoldingFujianCo.,Ltd.	753,015.80	-	1,158,302.52	-
Otherreceivable	SinopharmZhijun	421,976.49	-	204,351.29	-
Otherreceivable	SinopharmHoldingSubMarketingCenterCo.,Ltd.	414,904.45	-	-	-
Otherreceivable	SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	400,000.00	-	400,000.00	-
Otherreceivable	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	398,842.11	-	-	-
Otherreceivable	GuangdongJienuo	274,930.00	-	-	-
Otherreceivable	DalianYalifengBiopharmaceuticalCo.,Ltd.	180,900.74	-	1.00	-
Otherreceivable	SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	170,025.29	-	7,174.98	-
Otherreceivable	SinopharmHoldingInnerMongoliaCo.,Ltd.	142,500.00	-	256,500.00	-
Otherreceivable	SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.	58,582.65	-	-	-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Otherreceivable	ZhijunPingshan	41,684.00	-	18,500.00	-
Otherreceivable	ZhijunTrade	31,573.40	-	10,779.42	-
Otherreceivable	ZhangHaiyan	30,000.00	-	30,000.00	-
Otherreceivable	InnostarBiotechnologyNantongCo.,Ltd	15,550.30	-	-	-
Otherreceivable	SinopharmMedicalInstrumentGuangxiMedicalTechnologyCo.,Ltd.	12,276.81	-	-	-
Otherreceivable	ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.	10,036.80	-	-	-
Otherreceivable	SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	3,060.93	-	-	-
Otherreceivable	SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.	1,000.00	-	60.00	-
Otherreceivable	ChinaNationalMedicalDevice(HuiZhou)Co.,Ltd.	184.40	-	-	-
Otherreceivable	DuLongfeng	-	-	2,057,281.04	-
Otherreceivable	LiHuichun	-	-	2,057,281.04	-
Otherreceivable	SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	-	-	48,493.16	-
Otherreceivable	SinopharmGuangdongMedicineDeviceSupplyChainCo.,Ltd.	-	-	17,397.44	-
Otherreceivable	SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.	-	-	5,000.00	1,000.00
Otherreceivable	XinjiangBaitongPropertyServiceCo.,Ltd.	-	-	1,300.00	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Advancestosuppliers	SouthwestPharmaceuticalCo.,Ltd.	2,675,229.26	-	-	-
Advancestosuppliers	NanjingYuanguangTradingCo.,Ltd.	1,170,978.86	-	-	-
Advancestosuppliers	SichuanHexinPharmaceuticalCo.,Ltd.	710,539.19	-	-	-
Advancestosuppliers	ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.	440,791.78	-	475,673.07	-
Advancestosuppliers	SinopharmGroupGuoruiMedicineCo.,Ltd.	264,040.41	-	307,838.82	-
Advancestosuppliers	TaijiGroupChongqingFulingPharmaceuticalCo.,Ltd.	249,048.67	-	-	-
Advancestosuppliers	HunanDongtingPharmaceuticalCo.,Ltd.	166,924.76	-	176,257.86	-
Advancestosuppliers	ChinaNationalPharmaceuticalIndustryCo.,Ltd.	149,990.40	-	-	-
Advancestosuppliers	ShanghaiTongyuInformationTechnologyCo.,Ltd.	132,743.36	-	-	-
Advancestosuppliers	SinopharmHoldingHubeiCo.,Ltd.	127,076.65	-	-	-
Advancestosuppliers	SinopharmHoldingsBeijingHuahongco.,Ltd.	104,156.85	-	10,984.33	-
Advancestosuppliers	SuzhouEryePharmaceuticalLimitedCompany	91,135.03	-	121,669.23	-
Advancestosuppliers	SinopharmWeiqidaPharmaceuticalCo.,Ltd.	81,416.71	-	-	-
Advancestosuppliers	ChongqingYaoyouPharmaceuticalCo.,Ltd.	55,637.49	-	408,984.97	-
Advancestosuppliers	SinopharmHoldingSubMarketingCenterCo.,Ltd.	45,683.18	-	44,662.50	-
Advancestosuppliers	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	34,469.49	-	-	-
Advancestosuppliers	HunanYaoyouMedicinesCo.,Ltd.	26,721.82	-	-	-
Advancestosuppliers	SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.	21,057.70	-	137,280.00	-
Advancestosuppliers	SinopharmYixinPharmaceuticalCo.,Ltd.	20,757.00	-	-	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Advancestosuppliers	TaijiGroupChongqingTongjungePharmaceuticalCo.,Ltd.	14,901.57	-	-	-
Advancestosuppliers	FoshanWinteamPharmaceuticalGroupLtd.	13,972.00	-	-	-
Advancestosuppliers	TaijiGroupGansuTianshuiXihuangEjiaoCo.,Ltd.	13,648.00	-	-	-
Advancestosuppliers	HubeiSinopharmZhonglianMedicineCo.,Ltd.	13,529.23	-	13,529.23	-
Advancestosuppliers	TaishanXiangranhuiTradeCo.,Ltd.	13,150.03	-	-	-
Advancestosuppliers	SinopharmTongjitang(Guizhou)PharmaceuticalCo.,Ltd.	8,956.01	-	8,956.01	-
Advancestosuppliers	SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.	4,708.38	-	-	-
Advancestosuppliers	SinopharmGroupRongshengPharmaceuticalCo.,Ltd.	2,833.81	-	12,393.12	-
Advancestosuppliers	SinopharmHoldingDalianHechengCo.,Ltd.	2,444.10	-	-	-
Advancestosuppliers	SinopharmHoldingShanxiJinchengCo.,Ltd.	1,837.72	-	-	-
Advancestosuppliers	Zhanghaiyan	714.29	-	-	-
Advancestosuppliers	SinopharmGroup	594.95	-	59,577.44	-
Advancestosuppliers	ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.	457.48	-	-	-
Advancestosuppliers	SinopharmShyndec	61.20	-	84.97	-
Advancestosuppliers	SinopharmHoldingHubeiLikangPharmaceuticalCo.,Ltd.	35.08	-	-	-
Advancestosuppliers	SinopharmLerentangHebeiMedicineCo.,Ltd.	0.01	-	0.01	-
Advancestosuppliers	SinopharmHoldingShanxiCo.,Ltd.	-	-	17,747,100.00	-
Advancestosuppliers	SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	-	-	1,850,000.00	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(1).AccountsReceivable(Continued)

Item	RelatedParty	30June2021		31December2020
		Grosscarryingamount	Provisionforbaddebt	Grosscarryingamount	Provisionforbaddebt
Advancestosuppliers	FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	-	-	260,846.15	-
Advancestosuppliers	ChengduRongshengPharmacyCo.,Ltd.	-	-	217,055.13	-
Advancestosuppliers	LanzhouBiotechnologyDevelopmentCo.,Ltd.	-	-	180,000.00	-
Advancestosuppliers	SinopharmShantouJinshiPharmaceuticalCo.,Ltd.	-	-	79,332.33	-
Advancestosuppliers	GuilinPharmaceuticalCo.,Ltd.	-	-	74,560.00	-
Advancestosuppliers	SinopharmZhijun	-	-	41,928.00	-
Advancestosuppliers	JiangsuWanbangPharmacyMarketingCo.,Ltd.	-	-	28,796.22	-
Advancestosuppliers	SinopharmHoldingBeijingCo.,Ltd.	-	-	14,878.90	-
Advancestosuppliers	JinzhouAvancPharmaceuticalCo.,Ltd.	-	-	8,351.85	-
Advancestosuppliers	SinopharmHoldingChangshaCo.,Ltd.	-	-	4,476.56	-
Advancestosuppliers	SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	-	-	4,021.05	-
Advancestosuppliers	SinopharmGroupYibinPharmaceuticalsCo.,Ltd.	-	-	1,377.08	-
Advancestosuppliers	SinopharmHoldingYanchengCo.,Ltd.	-	-	703.62	-
Advancestosuppliers	FosunPharmaceuticalDistributionJiangsuCo.,Ltd.	-	-	81.08	-
Advancestosuppliers	SinopharmHoldingNanpingNewforceCo.,Ltd	-	-	20.46	-
Advancestosuppliers	SinopharmHoldingXinye(Hubei)MedicineCo.,Ltd.	-	-	3.40	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmHoldingSubMarketingCenterCo.,Ltd.	136,420,774.52	100,597,889.85
AccountsPayable	ChinaNationalMedicinesCo.,Ltd.	94,328,048.04	53,510,089.86
AccountsPayable	SinopharmLerentangMedicineCo.,Ltd.	92,347,900.63	-
AccountsPayable	SinopharmHoldingShanxiCo.,Ltd.	79,515,178.71	8,706,339.43
AccountsPayable	SinopharmHoldingShanxiCo.,Ltd.	50,047,053.30	698,931.88
AccountsPayable	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	46,826,354.95	44,967,413.32
AccountsPayable	FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	46,680,139.27	31,372,881.57
AccountsPayable	SinopharmHoldingShenyangCo.,Ltd.	42,512,516.24	17,044,758.52
AccountsPayable	SinopharmGroupCo.,Ltd.	38,594,822.49	30,169,144.90
AccountsPayable	JiangsuWanbangPharmacyMarketingCo.,Ltd.	23,252,792.65	14,299,613.79
AccountsPayable	LanzhouBiotechnologyDevelopmentCo.,Ltd.	17,238,914.69	-
AccountsPayable	SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	15,460,751.55	6,926,143.50
AccountsPayable	SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	15,071,393.38	13,211,593.60
AccountsPayable	SinopharmYixinPharmaceuticalCo.,Ltd.	12,922,894.16	5,223,703.27
Accountspayable	SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	12,538,440.66	11,917,795.97
AccountsPayable	SinopharmHoldingJilinCo.,Ltd.	12,238,802.76	4,774,676.38
AccountsPayable	SinopharmHoldingLunanCo.,Ltd.	10,975,399.71	-
AccountsPayable	ChongqingYaoyouPharmaceuticalCo.,Ltd.	10,259,242.11	3,319,845.70
AccountsPayable	SinopharmHoldingTongliaoCo.,Ltd.	9,464,045.96	802,269.56
AccountsPayable	ShanghaiHenliusBiopharmaceuticalsCo.,Ltd.	9,349,231.90	3,489,402.52
AccountsPayable	SinopharmHoldingYangzhouCo.,Ltd.	9,270,870.65	6,056,767.80
AccountsPayable	SinopharmHoldingFujianCo.,Ltd.	8,787,141.12	5,306,468.57
AccountsPayable	MainLuckPharmaceutical	8,563,894.25	5,586,186.27

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmHoldingShanxiZhongjianMedicalDeviceChainCo.,Ltd.	8,116,781.92	4,873,657.16
AccountsPayable	SinopharmHoldingInnerMongoliaCo.,Ltd.	7,811,861.15	2,761,321.64
AccountsPayable	SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	7,687,260.65	3,588,817.09
AccountsPayable	SinopharmHoldingXinjiangXinteShenrongPharmaceuticalCo.,Ltd.	7,418,455.79	3,753,212.37
AccountsPayable	SinopharmHoldingJiangsuCo.,Ltd.	6,986,215.82	6,211,219.22
AccountsPayable	SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	6,366,021.31	6,105,947.86
AccountsPayable	SinopharmHoldingShandongCo.,Ltd.	6,124,476.27	793,417.76
AccountsPayable	YunnanSinopharmHoldingDongchangMedicineCo.,Ltd.	5,922,302.36	1,660,475.22
AccountsPayable	FoshanWinteamPharmaceuticalGroupLtd.	5,488,616.17	5,032,327.78
AccountsPayable	SinopharmHoldingHunanCo.,Ltd.	4,923,319.80	407,092.81
AccountsPayable	ShenzhenWanweiMedicineTradingCo.,Ltd.	4,869,268.33	883,982.13
AccountsPayable	SinopharmHoldingBeijingCo.,Ltd.	4,868,848.38	2,391,873.73
AccountsPayable	HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.	4,559,628.22	626,104.94
AccountsPayable	YichangHumanwellPharmaceuticalCo.,Ltd.	4,470,996.08	702,352.60
AccountsPayable	JinzhouAvancPharmaceuticalCo.,Ltd.	4,411,339.82	4,977,249.88
AccountsPayable	SinopharmHoldingHenanCo.,Ltd.	4,396,344.31	3,206,888.96
AccountsPayable	ZhijunPingshan	4,272,258.25	3,854,209.10
AccountsPayable	ChinaOtsukaPharmaceuticalCo.,Ltd.	3,739,214.15	2,677,852.24
AccountsPayable	SinopharmHoldingXiamenCo.,Ltd.	3,388,026.93	551,570.55
AccountsPayable	ChinaNationalPharmaceuticalForeignTradeCorporation	3,183,468.89	1,264,206.58
AccountsPayable	SinopharmHoldingNingxiaCo.,Ltd.	3,139,723.50	2,414,511.01
AccountsPayable	SinopharmHoldingJinzhouCo.,Ltd.	3,002,980.96	1,176,931.82
AccountsPayable	SinopharmHoldingChangzhouCo.,Ltd.	2,986,094.33	4,061,240.62

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	TibetYaoyouMedicinesCo.,Ltd.	2,766,861.56	5,599,734.54
AccountsPayable	SinopharmZhijun	2,752,553.26	2,204,850.71
AccountsPayable	TaijiGroupChongqingLinglingPharmaceuticalFactoryCo.,Ltd	2,678,260.95	-
AccountsPayable	SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.	2,635,957.97	2,029,331.09
AccountsPayable	SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.	2,503,237.00	206,174.46
AccountsPayable	SinopharmHoldingPingdingshanCo.,Ltd.	2,334,135.94	3,110,222.71
AccountsPayable	SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.	2,297,132.34	1,402,636.20
AccountsPayable	ShanghaiInternationalPharmaceuticalTradeCo.,Ltd.	2,268,132.84	2,140,826.76
AccountsPayable	TaijiGroupChongqingJungePharmaceuticalCo.,Ltd	2,209,845.30	-
AccountsPayable	SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.	2,169,689.83	1,345,750.22
AccountsPayable	SinopharmAdvanced(Shanghai)MedicalDeviceCo.,Ltd.	2,018,301.45	474.35
AccountsPayable	SinopharmHoldingAnshanCo.,Ltd.	1,921,040.94	210,514.52
AccountsPayable	SinopharmHoldingHulunBuirCo.,Ltd.	1,723,560.47	862,728.46
AccountsPayable	SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.	1,664,002.07	1,179,431.76
AccountsPayable	SinopharmJiankun(Beijing)MedicineCo.,Ltd.	1,558,885.49	236,040.00
AccountsPayable	SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.	1,528,102.51	450,506.71
AccountsPayable	SinopharmHoldingWuxiCo.,Ltd.	1,475,312.09	839,716.25
AccountsPayable	SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.	1,406,460.00	1,315,880.00
AccountsPayable	FosunPharmaceuticalDistributionJiangsuCo.,Ltd.	1,396,404.21	1,404,453.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmHoldingJinanCo.,Ltd.	1,378,772.68	5,044.24
AccountsPayable	SinopharmLiaoningMedicalEquipmentCo.,Ltd.	1,332,215.59	801,190.96
AccountsPayable	BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.	1,210,637.01	275,637.01
AccountsPayable	SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.	1,191,544.83	189,625.02
AccountsPayable	ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.	1,120,294.14	1,198,963.22
AccountsPayable	SinopharmGroup,SouthwestPharmaceuticalCo.,Ltd.	889,435.22	-
AccountsPayable	SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.	878,317.60	1,495,702.47
AccountsPayable	SinopharmGroupGuoruiMedicineCo.,Ltd.	847,231.99	1,029,635.96
AccountsPayable	JinzhouAvancMedicineCo.,Ltd.	774,228.85	2,251,486.36
AccountsPayable	SinopharmLuya(Shandong)PharmaceuticalCo.,Ltd.	717,286.31	1,728,265.11
AccountsPayable	SinopharmHoldingHeilongjiangCo.,Ltd.	709,357.70	811,310.59
AccountsPayable	SinopharmHoldingLinfenNinglePharmaceuticalCo.,Ltd.	702,647.45	7,414.31
AccountsPayable	SinopharmTongjitang(Guizhou)PharmaceuticalCo.,Ltd.	661,183.36	560,063.40
AccountsPayable	SinopharmHoldingXinjiangSpecialDrugsKaramayPharmaceuticalCo.,Ltd.	651,582.93	659,567.18
AccountsPayable	BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	641,043.63	714,642.68
AccountsPayable	FujianChentianJinlingPharmaceuticalCo.,Ltd.	639,896.10	639,896.10
AccountsPayable	HuayiPharmaceuticalCo.,Ltd.	622,400.00	110,159.29
AccountsPayable	ChinaNationalPharmaceuticalIndustryCo.,Ltd.	563,196.30	614,940.77

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SouthwestPharmaceuticalCo.,Ltd	498,114.40	-
AccountsPayable	SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.	483,577.38	763,894.30
AccountsPayable	SinopharmChuanKangPharmaceuticalCo.,Ltd.	483,468.40	228,071.04
AccountsPayable	YunnanTianjiangYifangPharmaceuticalCo.,Ltd.	475,579.30	792,663.67
AccountsPayable	ShanghaiTransfusionTechnologyCo.,Ltd.	452,700.00	301,800.00
AccountsPayable	SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.	451,033.67	553,653.19
AccountsPayable	JiangxiEryeMedicineMarketingCo.,Ltd.	437,250.19	134,268.38
AccountsPayable	SichuanHexinPharmaceuticalCo.,Ltd.	414,600.00	1,164,727.22
AccountsPayable	SinopharmHoldingsChuangkeMedicalTechnology(Guangxi)Co.,Ltd	405,660.80	-
AccountsPayable	SinopharmHoldingsBenxiCo.,LTD	356,397.10	-
AccountsPayable	SinopharmHoldingTianjinCo.,Ltd.	352,357.23	95,084.93
AccountsPayable	SinopharmHoldingYanchengCo.,Ltd.	344,929.57	-
AccountsPayable	SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	338,359.74	390,349.10
AccountsPayable	SinopharmHoldingSpecialDrugsShiheziPharmaceuticalCo.,Ltd.	337,497.87	126,985.40
AccountsPayable	HunanDongtingPharmaceuticalCo.,Ltd.	335,196.57	667,433.56
AccountsPayable	JiangsuHuanghePharmaceuticalCo.,Ltd.	334,470.96	229,932.46
AccountsPayable	SuzhouEryePharmaceuticalLimitedCompany	332,911.50	350,413.20
AccountsPayable	SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,Ltd.	325,253.73	355,710.50
AccountsPayable	SinopharmHoldingHubeiCo.,Ltd.	325,147.65	706,495.38

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmHoldingFuzhouCo.,Ltd.	294,318.62	655,028.77
AccountsPayable	SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd.	292,609.10	248,701.04
AccountsPayable	GlaxoSmithKlinePharmaceuticals(Suzhou)Co.,Ltd.	286,776.33	156,960.48
AccountsPayable	TaijiGroupSichuanMianyangPharmaceuticalCo.,Ltd	284,788.67	-
AccountsPayable	SinopharmGroupYibinPharmaceuticalsCo.,Ltd.	281,130.03	286,441.67
AccountsPayable	SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.	280,247.31	347,738.10
AccountsPayable	SinopharmHoldingPu’erCo.,Ltd.	267,364.71	126,457.83
AccountsPayable	SinopharmHoldingDalianCo.,Ltd.	260,998.30	372,970.88
AccountsPayable	SinopharmGroupRongshengPharmaceuticalCo.,Ltd.	246,191.00	412,372.07
AccountsPayable	ShanghaiMerroPharmaceuticalCo.,Ltd.	243,184.50	196,678.40
AccountsPayable	SinopharmHoldingYunnanCo.,Ltd.	239,684.27	128,094.48
AccountsPayable	SinopharmHoldingShanghaiBiomedicineCo.,Ltd.	198,359.00	182,202.00
AccountsPayable	SinopharmXinjiangPharmaceuticalCo.,Ltd.	191,183.73	94,780.05
AccountsPayable	SinopharmShanxiruifulaiPharmaceuticalCo.,Ltd	163,015.43	-
AccountsPayable	SinopharmHoldingPutianCo.,Ltd.	160,656.67	224,611.58
AccountsPayable	ShanghaiShangshengBiologicalProductsCo.,Ltd.	153,756.00	194,400.00
AccountsPayable	SichuanJiangyouZhongbaFuziTechnologyDevelopmentCo.,Ltd	148,143.06	-
AccountsPayable	ChengduInstituteofBiologicalProductsCo.,Ltd.	140,400.00	374,400.00
AccountsPayable	SinopharmHoldingsBeijingHuahongco.,Ltd.	139,337.70	68,274.07

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.	136,890.18	105,438.07
AccountsPayable	SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.	113,139.81	47,953.27
AccountsPayable	SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.	106,718.02	106,918.61
AccountsPayable	ChengduRongshengPharmacyCo.,Ltd.	100,794.89	100,000.02
AccountsPayable	SinopharmHoldingZhejiangCo.,Ltd.	100,418.02	30,316.89
AccountsPayable	SinopharmHoldingBayannurCo.,Ltd.	96,966.40	69,930.10
AccountsPayable	WuhanZhongshengYujinbiomedicalCo.,Ltd	88,504.00	-
AccountsPayable	SinopharmShantouJinshiPharmaceuticalCo.,Ltd.	88,254.41	135,961.28
AccountsPayable	SinopharmHoldingQuanzhouCo.,Ltd.	81,315.39	203,348.93
AccountsPayable	ShanghaiChaohuiPharmaceuticalCo.,Ltd.	77,054.61	1,020,709.97
AccountsPayable	SinopharmHoldingHuaideju(Xiamen)PharmacyCo.,Ltd.	76,448.34	84.48
AccountsPayable	SinopharmholdingXinteYiliPharmaceuticalCo.,Ltd	68,861.47	-
AccountsPayable	ShenyangHongqiPharmaceuticalCo.,Ltd.	65,372.23	165,983.07
AccountsPayable	SinopharmHoldingNantongCo.,Ltd	61,946.90	-
AccountsPayable	ShantouJinshiPowderInjectionCo.,Ltd.	61,662.00	72,590.24
AccountsPayable	SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.	58,450.50	76,078.94
AccountsPayable	TaijiGroupLtd	47,123.91	-
AccountsPayable	SinopharmHoldingChifengCo.,Ltd	46,663.80	-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmInnerMongoliaMedicalInstrumentCo.,Ltd	39,551.00	-
AccountsPayable	SinopharmHoldingNanpingNewPowerCo.,Ltd	38,961.61	-
AccountsPayable	SinopharmHoldingDezhouCo.,Ltd.	37,534.02	45,750.41
AccountsPayable	SinopharmSanyiMedicine(Wuhu)Co.,Ltd.	35,199.94	26,646.40
AccountsPayable	SinopharmHoldingAnhuiCo.,Ltd.	34,219.90	-
AccountsPayable	SinopharmHoldingChangzhouMedicalLogisticsCenterCo.,Ltd.	32,872.49	32,872.49
AccountsPayable	Sinopharm(Anhui)JingfangPharmaceuticalCo.,Ltd.	32,814.69	59,773.89
AccountsPayable	SinopharmholdingShanxiLinfenCo.,Ltd	31,242.18	-
AccountsPayable	ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.	30,432.28	31,024.85
AccountsPayable	SinopharmHoldingChangshaCo.,Ltd.	30,339.75	-
AccountsPayable	TaijiGroupZhejiangDongfangPharmaceuticalCo.,Ltd	30,277.66	-
AccountsPayable	SinopharmBeijingHuamiaoPharmaceuticalCo.,Ltd.	26,862.15	131,751.68
AccountsPayable	SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.	25,018.25	28,464.87
AccountsPayable	SinopharmWuhanZhonglianSiyaoPharmaceuticalCo.,Ltd.	19,500.56	147,224.95
AccountsPayable	ChongqingHaisimanPharmaceuticalCo.,Ltd.	18,488.82	18,488.82
AccountsPayable	SinopharmHoldingUlanqabCo.,Ltd.	16,092.20	36,092.20
AccountsPayable	SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.	15,958.84	10,858.84
AccountsPayable	SinopharmHoldingTaizhouCo.,Ltd.	11,239.87	17,598.01

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	ChinaNationalMedicalDevice(HuiZhou)Co.,Ltd.	8,950.00	805.31
AccountsPayable	ChinaMedicalEquipmentShandongCo.,Ltd.	7,303.36	29,843.36
AccountsPayable	SinopharmHoldingChangshaGaoxinMedicineCo.,Ltd.	5,825.00	12,900.00
AccountsPayable	SinopharmholdingHainanHongyiCo.,Ltd	4,960.00	-
AccountsPayable	ChangchunChangshengGenePharmaceuticalCo.,Ltd.	3,017.25	3,807.25
AccountsPayable	SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.	2,378.07	149,183.90
AccountsPayable	SinopharmholdingXinye(Hubei)PharmaceuticalCo.,Ltd	2,170.00	-
AccountsPayable	SinopharmHoldingOrdosCo.,Ltd.	1,771.20	1,771.20
AccountsPayable	SinopharmNutraceuticals(Shanghai)Co.,Ltd.	1,461.55	1,461.56
AccountsPayable	SinopharmDezhong(Foshan)PharmaceuticalCo.,Ltd.	1,244.76	5,453.55
AccountsPayable	SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.	1,113.85	2,229.36
AccountsPayable	SinopharmholdingGuang'anCo.,Ltd	857.31	-
AccountsPayable	GuilinPharmaceuticalCo.,Ltd.	627.25	627.25
AccountsPayable	SinopharmAnhuiGreatHealthIndustryCo.,Ltd	504.00	-
AccountsPayable	SinopharmHoldingZhangzhouCo.,Ltd.	468.00	2,119.78
AccountsPayable	SinopharmHoldingLiaochengCo.,Ltd.	174.00	174.00
AccountsPayable	SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.	127.72	127.72
AccountsPayable	ChengduListPharmaceuticalCo.,Ltd.	72.89	1,756.39
AccountsPayable	NatongBiotechnology(Beijing)Co.,Ltd	63.72	-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
AccountsPayable	SinopharmholdingJilinMedicalInstrumentCo.,Ltd	47.50	47.50
AccountsPayable	SinopharmholdingChongqingCo.,Ltd	45.00	-
AccountsPayable	SinopharmShyndec	15.61	612.78
AccountsPayable	SinopharmHoldingSuzhouCo.,Ltd.	13.09	13.09
AccountsPayable	SinopharmHoldingLinfenCo.,Ltd	5.00	5.30
AccountsPayable	SinopharmHoldingXinyuCo.,Ltd	0.01	0.01
AccountsPayable	SinopharmGroupGuangxiMedicalDeviceCo.,Ltd.	-	1,637,168.14
AccountsPayable	SinopharmHoldingShanxiJinzhongCo.,Ltd.	-	304,455.20
AccountsPayable	SinopharmHoldingBaotouCo.,Ltd.	-	16,443.00
AccountsPayable	SinopharmHoldingDalianHechengCo.,Ltd.	-	3,169.55
AccountsPayable	SinopharmHoldingShanxiJinchengCo.,Ltd.	-	2,233.33
AccountsPayable	SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.	-	209.96

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
NotesPayable	SinopharmLerentangMedicineCo.,Ltd.	178,726,114.00	133,513,118.91
NotesPayable	SinopharmHoldingSubMarketingCenterCo.,Ltd.	98,532,398.98	145,007,748.49
NotesPayable	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	86,581,666.40	34,904,620.08
NotesPayable	ChinaNationalMedicinesCo.,Ltd.	46,854,819.69	21,240,547.39
NotesPayable	SinopharmHoldingShanxiCo.,Ltd.	37,255,237.87	96,475,832.70
NotesPayable	SinopharmHoldingShanxiCo.,Ltd.	29,956,295.04	147,484,839.36
NotesPayable	SinopharmHoldingShenyangCo.,Ltd.	27,343,806.55	23,666,333.81
NotesPayable	JiangsuWanbangPharmacyMarketingCo.,Ltd.	19,093,642.80	42,481,785.07
NotesPayable	SinopharmHoldingLunanCo.,Ltd.	15,322,762.00	4,500,000.00
NotesPayable	SinopharmHoldingYangzhouCo.,Ltd.	13,766,896.93	4,300,000.00
NotesPayable	ChengduRongshengPharmacyCo.,Ltd.	12,003,000.00	10,368,750.00
NotesPayable	SinopharmHoldingInnerMongoliaCo.,Ltd.	11,789,525.01	20,429,758.48
NotesPayable	SinopharmHoldingFujianCo.,Ltd.	9,086,169.43	15,606,964.31
NotesPayable	SinopharmHoldingTongliaoCo.,Ltd.	8,146,891.51	-
NotesPayable	SinopharmHoldingJilinCo.,Ltd.	7,870,548.03	430,080.28
NotesPayable	SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.	7,734,939.35	5,681,012.75

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
NotesPayable	LanzhouBiotechnologyDevelopmentCo.,Ltd	6,720,000.00	34,920,000.00
NotesPayable	SinopharmHoldingXiamenCo.,Ltd.	6,189,287.86	3,173,200.37
NotesPayable	ChongqingYaoyouPharmaceuticalCo.,Ltd.	5,683,557.40	2,693,445.70
NotesPayable	SinopharmHoldingPingdingshanCo.,Ltd.	5,644,930.05	3,000,000.00
NotesPayable	SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.	5,339,586.09	1,978,218.04
NotesPayable	SinopharmHoldingHenanCo.,Ltd.	4,804,061.33	-
NotesPayable	SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.	4,226,969.98	2,840,425.46
NotesPayable	SinopharmGroup	3,360,257.39	15,665,754.04
NotesPayable	SinopharmHoldingHunanCo.,Ltd.	3,296,556.25	769,724.44
NotesPayable	FoshanWinteamPharmaceuticalGroupLtd.	2,988,970.44	1,047,709.72
NotesPayable	MainLuckPharmaceutical	2,505,357.14	1,274,104.80
NotesPayable	SinopharmHoldingHuaideju(Xiamen)PharmacyCo.,Ltd.	2,400,044.48	4,755,780.00
NotesPayable	ChinaOtsukaPharmaceuticalCo.,Ltd.	1,571,497.60	2,321,674.00
NotesPayable	SinopharmHoldingHulunBuirCo.,Ltd.	1,278,836.38	-
NotesPayable	SinopharmHoldingNingxiaCo.,Ltd.	1,268,500.30	2,139,620.00
NotesPayable	SinopharmJiankun(Beijing)MedicineCo.,Ltd.	1,213,920.00	1,911,680.00
NotesPayable	SinopharmHoldingDalianCo.,Ltd.	1,180,305.76	1,269,329.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
NotesPayable	SinopharmHoldingJinanCo.,Ltd.	1,107,000.00	650,000.00
NotesPayable	SinopharmHoldingHeilongjiangCo.,Ltd.	1,031,283.29	-
NotesPayable	SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.	913,177.02	1,777,689.35
NotesPayable	SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.	865,606.40	715,196.92
NotesPayable	ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.	743,698.80	267,514.80
NotesPayable	FosunPharmaceuticalDistributionJiangsuCo.,Ltd.	740,537.68	754,075.83
NotesPayable	JinzhouAvancMedicineCo.,Ltd.	609,930.00	655,110.00
NotesPayable	SinopharmHoldingYanchengCo.,Ltd.	563,801.29	967,264.56
NotesPayable	ShenzhenWanweiMedicineTradingCo.,Ltd.	521,432.00	597,769.76
NotesPayable	SinopharmZhijun	471,834.29	636,206.80
NotesPayable	TaijiGroupChongqingLinglingPharmaceuticalFactoryCo.,Ltd	427,400.50	-
NotesPayable	ShanghaiTransfusionTechnologyCo.,Ltd.	402,400.00	251,500.00
NotesPayable	SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.	330,347.20	116,747.00
NotesPayable	SinopharmWuhanBloodProductsCo.,Ltd.	281,200.00	420,000.00
NotesPayable	WuhanZhongshengJinBiopharmaceuticalCo.,Ltd	265,512.00	-
NotesPayable	SinopharmHoldingBayannurCo.,Ltd.	221,930.30	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
NotesPayable	SinopharmHoldingQuanzhouCo.,Ltd.	212,549.38	1,347,279.74
NotesPayable	SinopharmHoldingAnshanCo.,Ltd.	199,777.75	63,415.75
NotesPayable	SinopharmGroupRongshengPharmaceuticalCo.,Ltd.	112,420.00	278,588.10
NotesPayable	SinopharmHoldingNanpingNewPowerCo.,Ltd	97,439.62	100,557.27
NotesPayable	SinopharmWuhanZhonglianSiyaoPharmaceuticalCo.,Ltd.	50,000.00	-
NotesPayable	SinopharmHoldingChangshaCo.,Ltd.	46,237.84	29,765.60
NotesPayable	SinopharmYixinPharmaceuticalCo.,Ltd.	-	14,416,290.57
NotesPayable	SinopharmLerentangShijiazhuangMedicineCo.,Ltd.	-	2,946,186.04
NotesPayable	SinopharmHoldingTianjinCo.,Ltd.	-	2,365,453.12
NotesPayable	ChinaMedicalDevicesCo.,Ltd	-	1,743,360.00
NotesPayable	SinopharmGroupShanxiMedicalDevicesCo.,Ltd.	-	1,431,000.00
NotesPayable	SinopharmHoldingJinzhouCo.,Ltd.	-	1,222,139.83
NotesPayable	SinopharmHoldingLinfenNinglePharmaceuticalCo.,Ltd.	-	564,116.00
NotesPayable	SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.	-	537,224.53
NotesPayable	SinopharmHoldingShanxiJinzhongCo.,Ltd.	-	102,211.00
NotesPayable	FujianChentianJinlingPharmaceuticalCo.,Ltd.	-	71,204.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
OtherPayable	SinopharmGroup	5,313,664.01	4,146,496.53
OtherPayable	NationalPharmaceuticalGroupPharmaceuticalLogisticsCo.,Ltd	4,715,402.44	2,825,718.21
OtherPayable	ZhenfangZhang	4,322,499.97	3,919,999.95
OtherPayable	ChinaPharmaceuticalGroupShanghaiCo.,Ltd	1,660,431.38	3,619,450.06
OtherPayable	ChinaTraditionalChineseMedicineCo.,Ltd	1,300,000.00	1,300,000.00
OtherPayable	SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.	518,400.00	165,906.00
OtherPayable	NationalPharmaceuticalHealthOnlineCo.,Ltd	414,492.64	185,980.18
OtherPayable	ShanghaiNorthWingGuodaPharmaceuticalCo.,Ltd	286,498.20	364,905.28
OtherPayable	SinopharmHoldings(TianjinBinhai)PharmaceuticalCo.,Ltd	241,760.00	-
OtherPayable	ShanghaiTongyuInformationTechnologyCo.,Ltd	180,338.49	249,892.49
OtherPayable	SinopharmholdingHunanWei'anpharmacychainCo.,Ltd	104,625.76	104,626.65
OtherPayable	SinopharmHoldingsBeijingHuahongco.,Ltd.	104,156.84	-
OtherPayable	SinopharmHoldingSubMarketingCenterCo.,Ltd.	37,817.38	37,871.38
OtherPayable	ZhijunPingshan	25,458.72	-
OtherPayable	FoshanWinteamPharmaceuticalGroupLtd.	7,280.00	-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
OtherPayable	SinopharmGroupChemicalReagentCo.,Ltd	6,980.00	-
OtherPayable	JiangsuWanbangPharmacyMarketingCo.,Ltd.	2,800.00	-
OtherPayable	FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.	6.28	6.28
OtherPayable	PingdingshanPushengPharmaceuticalCo.,Ltd	-	515,857.96
OtherPayable	SinopharmHoldingYangzhouCo.,Ltd.	-	372,571.40
OtherPayable	FujianChentianJinlingPharmaceuticalCo.,Ltd.	-	50,000.00
OtherPayable	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.		22,401.28
OtherPayable	HaiyanZhang	-	1,422.03
OtherPayable	ChengduInstituteofBiologicalProductsCo.,Ltd.	-	327.60
OtherPayable	SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.	-	126.63
OtherPayable	ShenzhenWanweiMedicineTradingCo.,Ltd.	-	123.46

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
Contractliability	SinopharmlerentangQinhuangdaoPharmaceuticalCo.,Ltd	72,666.90	97,625.80
Contractliability	SinopharmHoldingShenyangCo.,Ltd.	64,281.72	64,395.72
Contractliability	SinopharmHoldingYunnanCo.,Ltd.	64,039.40	186,666.45
Contractliability	SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	50,924.30	-
Contractliability	SinopharmHoldingQianxinanCo.,Ltd	30,905.31	-
Contractliability	SinopharmHoldingWuhuCo.,Ltd	30,384.00	30,384.00
Contractliability	SinopharmlerentangCangzhouPharmaceuticalCo.,Ltd	25,691.00	25,691.00
Contractliability	SinopharmHoldingHulunBuirCo.,Ltd.	21,177.25	21,177.25
Contractliability	SinopharmHoldingGansuCo.,Ltd	21,960.00	21,960.00
Contractliability	SinopharmGroupGuizhou(Zunyi)MedicalInstrumentCo.,Ltd	5,743.36	-
Contractliability	SinopharmlerentangShijiazhuangmedicalmanagementCo.,Ltd	5,134.40	-
Contractliability	SinopharmHoldingGuizhoumedicaldeviceCo.,Ltd	2,929.38	1,140.71
Contractliability	SinopharmlerentangTangshanPharmaceuticalCo.,Ltd	1,734.36	-
Contractliability	JiangmenXinhuiJianfengPharmaceuticalCo.,Ltd	1,368.00	-
Contractliability	SinopharmHoldingChongqingCo.,Ltd	755.62	3,523.35
Contractliability	SinopharmInstrumentGuizhouQiannanCo.,Ltd	524.51	-

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

6.Amountsduefrom/torelatedparties(Continued)

(2).AccountsPayable(Continued)

Item	RelatedParty	30June2021	31December2020
Contractliability	SinopharmHoldingTongrenCo.,Ltd	438.00	-
Contractliability	SinopharmHoldingInnerMongoliaCo.,Ltd.	83.60	83.60
Contractliability	Sinopharmholding(Shandong)medicaldeviceCo.,Ltd	64.00	-
Contractliability	SinopharmHoldingHuai'anCo.,Ltd	19.40	19.40
Contractliability	SinopharmHoldingNantongCo.,Ltd	-	1,074,470.38
Contractliability	Qiandainternationaltrade(Shanghai)Co.,Ltd	-	783,640.00
Contractliability	SinopharmHoldingAnhuiCo.,Ltd.	-	154,870.80
Contractliability	SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.	-	98,901.00
Contractliability	SinopharmLerentangMedicineCo.,Ltd.	-	40,366.72
Contractliability	SinopharmHoldingJilinCo.,Ltd.	-	23,017.49
Contractliability	SinopharmHoldingShaanxiCo.,Ltd	-	14,791.76
Contractliability	SinopharmlerentangChengdePharmaceuticalCo.,Ltd	-	10,976.96
Contractliability	SinopharmlerentangHengshuiPharmaceuticalCo.,Ltd	-	10,276.41
Contractliability	SinopharmHoldingTaizhouCo.,Ltd.	-	6,593.40
Contractliability	DongyuanAccord	-	855.00
Contractliability	SinopharmHoldingJiangxiCo.,Ltd.	-	190.98

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.CommitmentsofRelatedPartyLeasecommitmentRent-out

RelatedParty	30June2021	31December2020
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.	199,999.99	266,666.66
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimited	85,085.99	187,187.99

Rent-in

RelatedParty	30June2021	31December2020
SinopharmHoldingYangzhouCo.,Ltd.	16,794,214.38	19,560,000.00
ZhangYechuan	8,910,988.61	5,777,181.67
SinopharmGroupMedicineLogisticCo.,Ltd.	7,290,000.00	-
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.	7,208,388.45	7,717,215.87
ShenyangPharmaceuticalCo.,Ltd.	7,142,857.14	2,976,190.55
SinopharmGroup	6,631,429.92	-
LerentangInvestmentGroupCo.,Ltd.	5,617,201.82	10,178,669.70
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.	2,748,595.47	-
GuangxiYifangTianjiangPharmaceuticalCo.,Ltd.	2,723,965.98	3,974,949.26
Xiongxinyuan	2,582,102.83	-
GuangdongJiyuantangDevelopmentCo.,Ltd.	1,990,209.48	3,180,113.86
LiFang	1,906,800.00	2,179,200.00
SinopharmHoldingBeijingCo.,Ltd.	1,557,142.84	123,809.52
ShenyangShengdiouTradingCo.,Ltd.	1,499,269.22	-
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.	1,385,714.26	1,628,571.40
SinopharmHoldingShanxiJinchengCo.,Ltd	1,200,000.00	-
WangYang	936,917.10	-
ZhangZhenfang	805,000.00	805,000.00
NanjingYuanguangTradingCo.,Ltd.	750,000.00	571,488.75

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

7.CommitmentsofRelatedParty(Continued)Leasecommitment(Continued)Rent-in(Continued)

RelatedParty	30June2021	31December2020
TaishanXiangranhuiTradeCo.,Ltd.	479,468.57	843,949.00
ZhangHaiyan	451,530.48	537,244.90
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	415,363.22	870,588.42
SinopharmXinjiangPharmaceuticalCo.,Ltd.	388,571.43	777,142.86
GuJinhua	344,190.00	378,609.00
GuHaiqun	342,774.31	446,873.35
ZhijunPingshan	313,990.88	364,908.32
ZhangGuitang	240,285.59	-
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.	216,191.74	-
SinopharmHoldingXinjiangXinteKaramayPharmaceuticalCo.,Ltd.	215,968.52	-
ShanghaiBaizhongBusinessDevelopment(Group)Co.,Ltd.	151,568.54	-
Southeast(Quanzhou)BiotechnologyPharmaceuticalCo.,Ltd.	118,025.28	-
BeijingHuafangInvestmentCo.,Ltd.	91,428.57	345,908.56
HunanMinshengtangInvestmentCo.,Ltd.	-	1,097,581.46
ShenzhenJiufengInvestmentCo.,Ltd.	-	166,666.67
Pu'erSongmaoMedicineGroupCo.,Ltd.	-	37,335.24
TaishanQunkangPharmacyCo.,Ltd.	-	11,258.41

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

8.Others

RelatedParty

30June2021

31December2020

Short-termBorrowing
SinopharmGroupFinanceCo.,Ltd.	581,796,571.46	14,338,732.53

Entrustedloan
CNPGC(1)	31,633,794.44	31,637,173.89
JilinProvinceYiheInvestmentConsultingCo.,Ltd.(2)	75,450,000.00	56,700,000.00

(1)CNPGCentrustedSinopharmGroupFinanceCo.,Ltd.withthisborrowingtotheGroup.TheentrustedborrowingincludestheprincipalofRMB31,600.00thousandandtheoutstandinginterestreceivableofRMB33.79thousand.

(2)TheloanisabankloanentrustedbyJilinYiheInvestmentConsultingCo.,Ltd.tothegroup.

Othernon-currentliabilities
SinopharmGroupCo.,Ltd.	35,061,743.31	35,061,743.31

Cashdepositewithinarelatedparty
SinopharmGroupFinanceCo.,Ltd.	1,636,830.68	101,779,861.57
Forthesixmonthsended30June2021,theannualinterestratesoftheabovedepositsare0.35%to1.15%.(Inyear2020,theannualinterestratesoftheabovedepositsare0.35%to1.89%.)

Leaseliability
SinopharmHoldingYangzhouCo.,Ltd.	15,391,588.00
ShaoguanWujiangDistrictMuyangMedicineInformationConsultantCo.,Ltd.	6,252,122.18	6,628,838.10
LerentangInvestmentGroupCo.,Ltd.	5,489,599.52	6,112,542.74
ZhangYechuan	4,527,961.17	5,201,907.68
GuangxiYifangTianjiangPharmaceuticalCo.,Ltd.	3,243,616.53	3,434,525.25
XiongXinyuan	2,582,102.83	2,873,340.76
GuangdongJiyuantangDevelopmentCo.,Ltd.	1,743,569.88	3,085,854.50
ShenyangShengdiouTradingCo.,Ltd.	1,499,269.22	1,468,641.78
SinopharmHoldingBeijingCo.,Ltd.	1,494,302.29	130,936.97
BeijingSinopharmTianyuanRealEstate&PropertyManagementCo.,Ltd.	1,313,142.67
LiFang	1,293,405.86
WangYang	936,917.10
SinopharmHoldingShanxiJinchengCo.,Ltd.	587,475.03
ZhangHaiyan	427,589.17	503,526.40
SinopharmXinjiangPharmaceuticalCo.,Ltd.	387,110.55	378,950.29

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

8.Others(Continued)

RelatedParty

30June2021

31December2020

Leaseliability(Continued)
GuHaiqun	331,772.12	427,942.87
ZhijunPingshan	294,545.87	338,800.77
ZhangGuitang	228,947.93
BeijingHuafangInvestmentCo.,Ltd.	216,830.68	336,640.65
ShanghaiBaizhongBusinessDevelopment(Group)Co.,Ltd.	151,568.54	300,058.00
Southeast(Quanzhou)BiotechnologyPharmaceuticalCo.,Ltd.	116,951.13
SinopharmHolding(China)FinancingLeaseCo.,Ltd.	91,512.93	388,839.95
SinopharmGroup		172,342.31
Pu'erSongmaoMedicineGroupCo.,Ltd.		37,330.98
Total	48,601,901.20	31,821,020.00

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XICommitmentsandcontingencies

1.Commitments

(1)	Capitalcommitments

Capitalexpenditurescontractedforatthebalancesheetdatebutnotrecognizedinbalancesheetareanalyzedasfollows:

30June2021

30June2021	31December2020
RMB‘0,000	RMB‘0,000

Buildings,machineryandequipment

42.16

42.16

2.Contingencies

Asofthebalancesheetdate,therewerenocontingenciesthattheGroupwasrequiredtodisclose.

XIIOthersignificantevents

1.SegmentreportingOperatingsegments

Formanagementpurposes,theGroupisorganizedintobusinessunitsbasedonitsproductsandservicesandhasthreereportableoperatingsegmentsasfollows:

(1)TheHeadOffice,whichismainlyengagedintheinvestmentandmanagementofbusinesses;

(2)Pharmaceuticaldistributionsegment,whichismainlyengagedinthedistributionofmedicineandpharmaceuticalproductstocustomers;

(3)Retailpharmacysegment,whichisthemanagementoftheoperationofGuodaPharmacy.ManagementmonitorstheresultsoftheGroup’soperatingsegmentsseparatelyforthepurposeofmakingdecisionsaboutresourceallocationandperformanceassessment.Segmentperformanceisevaluatedbasedonreportablesegmentprofit,whichismeasuredconsistentlywiththeGroup’sprofitbeforetax.Inter-segmentsalesandtransfersaretransactedwithreferencetothesellingpricesusedinthetransactionscarriedoutwiththirdpartiesatthethenprevailingmarketprices.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIOthersignificantevents(Continued)

1.Segmentreporting(Continued)

Operatingsegments(Continued)

Operatingsegmentinformationasatandforthesemiyearended

HeadOffice

Pharmaceuticaldistribution

Pharmaceuticalretail

Eliminationbetweensegments

Total

Principaloperationsincome	-	22,714,878,520.83	10,625,590,134.69	(499,204,175.96)	32,841,264,479.56
Principalcostofsales	-	(21,415,481,154.82)	(8,237,771,652.36)	497,003,293.22	(29,156,249,513.96)
Incomefrominvestmentsinassociates	157,696,473.52	(749,864.47)	749,788.76	-	157,696,397.81
Netprofit	804,194,136.76	462,450,144.61	263,262,365.37	(621,912,192.25)	907,994,454.49
Totalassets	14,935,672,415.11	25,483,335,796.44	16,344,255,324.13	(12,572,385,131.73)	44,190,878,403.95
Totalliabilities	(3,580,219,319.14)	(19,600,657,390.32)	(10,497,431,348.24)	6,975,557,587.13	(26,702,750,470.57)

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements

1.Accountsreceivable

Theaccountsreceivablebycategoryareanalyzedbelow:

30June2021

30June2021

31December2020

Grosscarryingamount

Provisionforbaddebt

Bookvalue

Grosscarryingamount

Provisionforbaddebt

Bookvalue

Amount

Proportion

Amount

Proportion

Amount

Proportion

Amount

Proportion

Itemsforwhichprovisionforbaddebtisrecognisedseparately	25,150,432.16	3.58%		(334,294.70)	1.33%	24,816,137.46		18,549,524.82	3.04%		(334,294.70)	1.80%	18,215,230.12
Itemsforwhichprovisionforbaddebtisrecognizedbygroup(creditriskcharacteristics)	676,458,655.12	96.42%		(1,664.00)	-	676,456,991.12		591,360,071.01	96.96%		-	-	591,360,071.01

701,609,087.28

100.00%

(335,958.70)

0.05%

701,273,128.58

609,909,595.83

100.00%

(334,294.70)

0.05%

609,575,301.13

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

1.Accountsreceivable(Continued)

At30June2021,accountsreceivablethatareindividuallyassessedforprovisionsareasfollows:

Debtor’sname

Debtor’sname

Carryingamount

Baddebtprovision

Rate

Assessmentforimpairment

ReceivablesfromsubsidiariesoftheGroup	24,816,137.46	-	-	Internalrelatedparties,withlower-tierrecoveryrisk
ClientA	323,044.50	(323,044.50)	100.00%	Debtorhadmismanagement,subjecttoseriousfinancialdifficulties,andtheexpectedrecoverabilityisverylow
ClientB	11,250.20	(11,250.20)	100.00%	Debtorhadmismanagement,subjecttoseriousfinancialdifficulties,andtheexpectedrecoverabilityisverylow

25,150,432.16

(334,294.70)

Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss:

30June2021

		30June2021
		Estimateddefaultamount		Expectedcreditlossinentirelifetime	Expectedcreditlossrate
Within1year		676,425,237.12		-	-
1to2years		33,418.00		(1,664.00)	4.98%

676,458,655.12

(1,664.00)

-

TheaccountsreceivableforwhichtheCompanyrecognisedprovisionforbaddebtsusingtheaginganalysismethodarepresentedasfollows:

30June2021

30June2021Within1year

Within1year					701,241,374.58
1to2years					33,418.00
2to3years		-		-	334,294.70

-	701,609,087.28

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

1.Accountsreceivable(Continued)

Baddebtprovisionforthecurrentperiodasfollows:

Openingbalance

Increasesduringtheperiod

Reversalduringtheperiod

Write-offduringtheperiod

Other

Closingbalance

Baddebtprovision

334,294.70

1,664.00

-

-

-

335,958.70

Asat30June2021,thetopfiveaccountsreceivablebycustomerareasfollows:

Amount

Amount

%ofthetotalaccountsreceivable

Baddebtprovisionamount

Top1Accountreceivable		75,221,487.68	10.72%	-
Top2Accountreceivable		40,139,214.96	5.72%	-
Top3Accountreceivable		39,234,570.32	5.59%	-
Top4Accountreceivable		24,895,974.53	3.55%	-
Top5Accountreceivable		24,378,296.97	3.47%	-

203,869,544.46

29.05%

-

Accountsreceivablederecognisedduetotransferoffinancialassetswasasfollows:

FromJanuarytoJune2021,theCompanyfactoredasmallportionofaccountsreceivableatamortisedcosttofinancialinstitutions.TheamountofaccountsreceivablederecognisedwasRMB26,097,254.38(fromJanuarytoJune2020:

RMB156,689,648.43),andtheamountoflossrecognisedthroughInvestmentincomewasRMB221,815.32(fromJanuarytoJune2020:RMB1,526,968.25).

Notestofinancialstatements(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

2.Otherreceivables

30June2021

31December2020

Otherreceivables

3,467,427,719.16

3,562,309,346.07

Categoryofotherreceivablesbynatureisasfollows:

Nature

Nature

30June2021

31December2020

Amountsduefromsubsidiaries	3,442,240,233.02	3,539,822,609.73
Receivableofequitytransactions	8,980,000.00	8,980,000.00
Deposit	331,867.02	343,834.42
Others	71,367,604.27	68,533,518.66

3,522,919,704.31

3,617,679,962.81

Changesinbaddebtprovisionforthe12-monthexpectedcreditlossesandlifetimeexpectedcreditlossesonotherreceivablesareasfollows:

	Stage1	Stage2	Stage3
Baddebt	Expectedcreditlossesoverthenext12months	Entirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred)	Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred)	Total

Balanceat1January2021	-	56,394.50	55,314,222.24	55,370,616.74
Balanceat1January2021duringtheperiod
Provisionsduringtheperiod	-	4,709.88	127,901.60	132,611.48
Reversalduringtheperiod	-	(11,243.07)	-	(11,243.07)

Balanceat30June2021

-

49,861.31

55,442,123.84

55,491,985.15

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

2.Otherreceivables(Continued)

Theaginganalysisofotherreceivableswasasfollows:

30June2021Within1year

Within1year	3,465,946,636.42
1to2years	2,490,521.42
2to3years	436,281.36
Over3years	54,046,265.11

Total

3,522,919,704.31

Baddebtprovisionforthecurrentperiodasfollows:

Openingbalance

Increasesduringtheperied

Reversalduringtheperiod

Write-offduringtheperiod

Other

Closingbalance

Baddebtprovision

55,370,616.74

132,611.48

(11,243.07)

-

-

55,491,985.15

Asat30June2021，theaccumulatedtopfiveotherreceivablesareanalysedbelow:

Nature

Nature

Amount

Age

%oftotalamount

Baddebtprovision

SinopharmGuangzhou	Entrustedborrowings	950,965,833.42	Within1year	26.99%	-
SinopharmGuangxi	Entrustedborrowings	566,090,705.45	Within1year	16.07%	-
SouthPharma&Trade	Entrustedborrowings	200,193,333.25	Within1year	5.68%	-
SinopharmGuangdongYuexing	Entrustedborrowings	173,834,848.77	Within1year	4.93%	-
SinopharmDongguan	Entrustedborrowings	161,153,558.44	Within1year	4.57%	-

2,052,238,279.33

58.24%

-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

3.Long-termequityinvestments

30June2021			31December2020
Originalvalue	Baddebtprovision	Carryingamount	Originalvalue	Baddebtprovision	Carryingamount

Investmentsinsubsidiaries	5,614,677,427.58	-	5,614,677,427.58	5,614,677,427.58	-	5,614,677,427.58
Investmentsinassociates	2,439,507,057.51	39,930,000.00	2,399,577,057.51	2,298,920,817.58	39,930,000.00	2,258,990,817.58

8,054,184,485.09

39,930,000.00

8,014,254,485.09

7,913,598,245.16

39,930,000.00

7,873,668,245.16

(1)	Subsidiaries

31December2020

Increases

Decrease

30June2021

Amountofprovisionforimpairment

SinopharmShenzhenJianmin	60,054,911.04		-		-		60,054,911.04		-
SinopharmShenzhenMaterial	15,450,875.93		-		-		15,450,875.93		-
SinopharmShenzhenLogistics	5,019,062.68		-		-		5,019,062.68		-
SinopharmGuangzhou	3,588,689,716.80		-		-		3,588,689,716.80		-
SinopharmGuangxi	525,456,951.07		-		-		525,456,951.07		-
SinopharmYanfeng	38,207,800.00		-		-		38,207,800.00		-
GuodaPharmacy	1,361,800,110.06		-		-		1,361,800,110.06		-
AccordDevices	19,998,000.00		-		-		19,998,000.00		-
					-				-
	5,614,677,427.58		-		-		5,614,677,427.58		-

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

3.Long-termequityinvestments(Continued)

(2)	Associates
		Changesintheperiod
			Openingbalance	Profitorlossundertheequitymethod	Adjustmentinothercomprehensiveincome	Otherchangesinequity	Cashdividendorprofitsdeclared	Closingbalance	Provisionofimpairment
	MainLuckPharmaceutical		322,696,745.87	34,596,706.61	-	-	-	357,293,452.48	-
	ZhijunSuzhou		-	-	-	-	-	-	39,930,000.00
	SinopharmZhijun		425,557,825.11	28,056,303.69	-	-	-	453,614,128.80	-
	ZhijunTrade		10,408,675.18	64,801.68	-	-	-	10,473,476.86	-
	ZhijunPingshan		176,566,795.90	25,603,869.60	-	-	-	202,170,665.50	-
	SinopharmShyndec		1,323,760,775.52	69,374,791.94	64,854.90	(460,868.29)	(16,714,220.20)	1,376,025,333.87	-

2,258,990,817.58

157,696,473.52

64,854.90

(460,868.29)

(16,714,220.20)

2,399,577,057.51

39,930,000.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

4.Operatingrevenueandcost

	Forthesixmonthsended30June2021		Forthesixmonthsended30June2020
	Revenue	Cost	Revenue	Cost
Principaloperations	2,062,334,204.15	1,982,274,379.60	1,750,454,957.66	1,679,162,910.91
Otheroperations	16,035,919.21	9,145,932.20	22,032,405.90	10,401,151.33

2,078,370,123.36

1,991,420,311.80

1,772,487,363.56

1,689,564,062.24

Classification	Forthesixmonthsended30June2021
Byproduct
Include:
Pharmaceuticals	1,971,490,771.22
Medicaldevicesanddisposables	86,143,203.37
Diagnosticreagents	4,700,229.56
Other	11,402,530.41

Byarea
Include:
China	2,073,736,734.56

Bymajoractivities
Include:
Pharmaceuticaldistribution	2,062,334,204.15
Others	11,402,530.41

Bycontractduration
Include:
Atapointintime	2,062,334,204.15
Overtime	11,402,530.41

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIIINotestokeyitemsofthecompanyfinancialstatements(Continued)

4.Operatingrevenueandcost(Continued)

InformationabouttheCompany’sobligationsisasfollows:

(1)Revenueisrecognisedwhencontrolofthegoodshastransferredandpaymentisgenerallyduewithin30to210daysfromdelivery;

(2)Revenueisrecognisedintheservicedurationandthepaymentisgenerallyduewithin30to210dayssincetheserviceiscompleted.

Informationrelatedtothesalespriceallocatedtotheremainingobligations:

TheamountofincomecorrespondingtotheobligationthathasbeensignedbuthasnotbeenfulfilledorhasnotyetfulfilledisRMB8,566,647.98,whichisexpectedtoberecognizedwithin1year.

Revenueisasfollows:

30June2021

30June2021

30June2020

Revenuefromcontractswithcustomers	2,073,736,734.56		1,768,294,423.43
Rentals	4,633,388.80		4,192,940.13

2,078,370,123.36

1,772,487,363.56

5.Investmentincome

Forthesixmonthsended30June2021

Forthesixmonthsended30June2020

Gainonlong-termequityinvestmentsunderthecostmethod	619,290,387.90		612,502,685.91
Gainonlong-termequityinvestmentsundertheequitymethod	157,696,473.52		133,549,495.38
Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcostmeasuredatamortisedcost	(221,815.32)		(1,526,968.25)
?Dividendsfromotherfinancialassets	3,599,555.61		4,109,881.90
?Others	-		998,665.84

780,364,601.71

749,633,760.78

Supplementaryinformationtofinancialstatements

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIVSupplementaryinformationtofinancialstatements

1.Scheduleofnon-recurringprofitorloss

Amountfor30June2021

Illustration

Gainsandlossesfromdisposalofnon-currentassets	(802,029.11)	Mainlyprobabilityofgainandlossesfromtheendoflease
Governmentgrantsrecognizedinincomestatementforthecurrentyear,exceptforthosecloselyrelatedtotheordinaryoperationoftheCompanywhichtheGroupenjoyedconstantlyaccordingtotheallotmentstandardsorquantitativecriteriaofthecountry	35,363,341.68	MainlyprobabilityofexemptionandothergovernmentgrantsforspecialpurposeandfinanceDiscount
Theinvestmentcostofanenterprisetoacquireasubsidiary,anassociateandajointventure,whichislessthanprofitsderivedfromthefairvalueoftheidentifiablenetassetsoftheinvestedunitwheninvesting	578,610.41
Reversalofbaddebtprovisionforaccountsreceivableandcontractassetsthatweretestedforimpairmentindividually	88,994.76
Non-operatingincomeandexpensesotherthantheaforesaiditems	7,540,783.96	Mainlyprobabilityofthenonoperatingincomegeneratedfromthewriteoffoffundsthatdonotneedtobepaidinthecurrentperiod
Other	1,717,435.90
Less:Impactofincometax	12,962,326.01
Impactofnon-controllinginterestsaftertax	11,034,206.56

20,490,605.03Basisforpreparationofdetailedlistofnon-recurringprofitorlossitems:

TheGroup'srecognitionofnon-recurringprofitorlossitemsisinaccordancewiththeprovisionsofExplanatoryannouncementNo.1oninformationdisclosurebycompaniesofferingsecuritiestothepublic-non-recurringprofitorloss.

Appendix(Continued)Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

XIVSupplementaryinformationtofinancialstatements(Continued)

2.Returnonequity(“ROE”)andearningspershare(“EPS”)

WeightedaverageROE(%)	BasicEPS(RMB/Share)
	BasicEPS(RMB/Share)	DilutedEPS(RMB/Share)

Netprofitattributabletoordinaryshareholdersoftheparent	5.22%	1.73	1.73
Netprofitafterdeductingnon-recurringprofitorlossattributabletotheCompany’sordinaryshareholdersoftheparent	5.08%	1.68	1.68