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

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

ItemsReferstoContents
ListedCompany,Company,theCompany,SinopharmAccord,theGroupReferstoChinaNationalAccordMedicinesCorporationLtd.
SINOPHARMReferstoChinaNationalAccordMedicinesCorporationLtd.
SinopharmHoldingReferstoSinopharmGroupCo.,Ltd,ControllingshareholderoftheCompany
CompanyLawReferstoCompanyLawofthePeople’sRepublicofChina
SecuritiesLawReferstoSecuritiesLawofthePeople’sRepublicofChina
Yuan,10thousandYuan,100millionYuanReferstoRMB,RMB10thousand,RMB100million
Terminology:Refersto
4DbusinessReferstoSPDhospitallogisticssupplychainextensionbusiness,IVDdiagnosticreagentbusiness,CSSDdisinfectionservice,andMWDequipmentlifecyclemanagementbusiness
GPOReferstoGrouppurchasingorganizations
Abbreviation:Refersto
SinopharmHoldingGuangzhouReferstoSinopharmHoldingGuangzhouCo.,Ltd.
GuodaDrugstoreReferstoSinopharmHoldingGuodaDrugstoreCo.,Ltd.
SinopharmHoldingGuangxiReferstoSinopharmHoldingGuangxiCo.,Ltd.
ChinaNationalZhijunReferstoChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.
ZhijunPharmacyTradeReferstoShenzhenZhijunPharmacyTradeCo.,Ltd.
ZhijunPingshanReferstoChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.
MainLuckPharmaceuticalsReferstoShenzhenMainLuckPharmaceuticalsInc.

SectionIICompanyProfileandMainFinancialIndexesI.Companyprofile

ShortformofthestockSinopharmAccord,AccordBStockcode000028,200028
StockexchangeforlistingShenzhenStockExchange
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
LegalrepresentativeLinZhaoxiong

II.Person/Waytocontact

SecretaryoftheBoard
NameChenChangbing
Contactadd.AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince
Tel.+(86)75525875195
Fax.+(86)75525195435
E-mailgyyzinvestor@sinopharm.com

III.Others

1.WayofcontactWhetherregistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanychangedinreportingperiodornot

□Applicable√NotapplicableRegistrationsaddress,officesaddressandcodesaswellaswebsiteandemailoftheCompanyhasnochangeinreportingperiod,foundmoredetailsinAnnualReport2020.

2.InformationdisclosureandpreparationplaceWhetherinformationdisclosureandpreparationplacechangedinreportingperiodornot

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

□Yes√No

CurrentperiodSameperiodoflastyearIncrease/decreaseinthisreporty-o-y(+,-)
Operatingrevenue(RMB)33,163,091,887.3927,169,940,188.5222.06%
NetprofitattributabletoshareholdersofthelistedCompany(RMB)741,445,013.25643,451,580.5915.23%
NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(RMB)720,954,408.22627,017,019.4514.98%
Netcashflowarisingfromoperatingactivities(RMB)1,229,373,283.571,438,204,043.35-14.52%
Basicearningspershare(RMB/Share)1.731.5015.33%
Dilutedearningspershare(RMB/Share)1.731.5015.33%
WeightedaverageROE5.22%4.91%Increase0.31percentagepoints
EndofcurrentperiodEndoflastperiodIncrease/decreaseinthisreport-endoverthatoflastperiod-end(+,-)
Totalassets(RMB)44,190,878,403.9539,594,533,471.6511.61%
NetassetsattributabletoshareholderoflistedCompany(RMB)14,346,870,065.7913,948,322,652.332.86%

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

ItemAmountNote
Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)-802,029.11Mainlyprobabilityofgainandlossesfromtheendoflease.
Governmentalsubsidycalculatedintocurrentgainsandlosses(whilecloselyrelatedwiththenormalbusinessoftheCompany,excludingthefixed-amountorfixed-proportiongovernmentalsubsidyaccordingtotheunifiednationalstandard)35,363,341.68MainlyprobabilityofexemptionandothergovernmentgrantsforspecialpurposeandfinanceDiscount.
Investmentcostswhileacquiringsubsidiaries,jointventuresandassociatedenterprise,lessthanfairvalueoftheidentifiablenetassetsfrominvestedenterprisewhichshouldbeenjoined578,610.41
Switchbackofprovisionfordepreciationofaccountreceivableandcontractualassetsthatareindividuallytestedforimpairment88,994.76
Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems7,540,783.96Mainlyprobabilityofthenonoperatingincomegeneratedfromthewriteoffoffundsthatdonotneedtobepaidinthecurrentperiod.
Othergains/lossessatisfyadefinitionofextraordinarygains/losses1,717,435.90
Less:Impactonincometax12,962,326.01
Impactonminorityshareholders’equity(post-tax)11,034,206.56
Total20,490,605.03--

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.

RegionDirect-salestoreFranchisedoutlet
NumbersSalesrevenue(in10thousandNumbersDistributionrevenue(in10
Yuan)thousandYuan)
North4,428488,11364030,263
EastChina1,014122,45060727,825
SouthChina49776,4221583,802
CentralChina31028,2771423,232
Northwest32249,521224
Southwest31921,436--
Total6,890786,2191,54965,146

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.

RegionDirect-salestoreFranchisedoutlet
NumberofstoreincreasedTotalarea(squaremeters)NumberofstoresshutdownNumberofstoreincreasedNumberofstoresshutdown
North42144,735-87106-10
EastChina818,064-4124-16
SouthChina414,272-2017-27
CentralChina232,276-117-2
Northwest353,758-82-
Southwest313,829-1--
Total63266,933-168156-55

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

RegionNumberofstoresStoresobtainedthequalificationof“DesignatedretailpharmaciesofmedicalRatiointotalpharmaciesin
insurance”regions
North4,4283,95589%
EastChina1,01477977%
SouthChina49742786%
CentralChina31024679%
Northwest32227585%
Southwest31927687%
Total6,8905,95886%

4.Top10storesintermsofoperatingrevenueThecumulativeoperatingrevenuefromtop10storestakes8.7%intheCompany’soveralloperatingrevenue.

NameofthestoreAddressDateofopeningOperationmodePropertyownership
SinopharmHebeiLerentangMedicineChainCo.,Ltd.(GeneralStore)ShijiazhuangSeptember2010DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd.(GeneralStore)HohhotcityMarch2003DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.(ZhongliStore)TaiyuanSeptember2002DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.(EryuanStore)TaiyuanFebruary2011DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(ShowroomStore)ShenzhenDecember2006DirectlyoperatedRentalproperties
BeijingJinxiangPharmacyChainCo.,Ltd.(XidanJinxiangPharmacy)BeijingMay1997DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.(YangzhouBaiyulanMedicineShop)YangzhouSeptember1991DirectlyoperatedRentalproperties
FujianGuodaDrugstoreChainCo.,Ltd.(XiamenNewSpecialDrugStore)XiamenMarch2005DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(Buxinvillagebranch)ShenzhenApril2017DirectlyoperatedRentalproperties
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.(LianhuaNorthBranch)ShenzhenDecember2003DirectlyoperatedRentalproperties

5.Operatingefficiencyofdirect-salestoresinreportingperiod

RegionNumberofstoresOperatingareaofthestores(squaremeters)Dailyaverageefficiency(tax-included,Yuan/SquareMeters)Rentalefficiency(tax-included,annualsalesvolume/rental)
North4,428555,9154914
EastChina1,014127,2515313
SouthChina49755,3107616
CentralChina31036,2154313
Northwest32238,3967127
Southwest31938,8613015

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

6.Structureofthecategoryatretailterminal

CategoryFirsthalfof2021Firsthalfof2020
Healthcareproducts4.7%6.5%
Conveniencefood0.8%0.9%
RxDrug54.5%52.9%
OTC25.3%27.2%
TraditionalChinesemedicine3.9%5.7%
Personalcare1.1%1.2%
Homeconvenience0.2%0.3%
Householdhealthproducts5.3%5.0%
Proportionofothercategories4.1%0.2%

7.Purchasingandsupplies:

GoodssuppliersofGuodaDrugstorearemainlyexternalsuppliersandassistaffiliatedenterpriseofSINOPHARMandprivatebrands.Topfivesuppliersforyearof2021:

RankingPurchaseamount(taxincluded)(10thousandyuan)Procurementratio
No.110,3007.5%
No.26,7534.9%
No.36,1094.4%
No.44,5303.3%
No.54,3453.2%

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

CurrentperiodSameperiodoflastyearY-o-yincrease/decreaseReasonsforchanges
Operatingrevenue33,163,091,887.3927,169,940,188.5222.06%Ay-o-yincreaseof22.06%;intheyear,rapidgrowthofrevenuefromvarytypesofdistribution,andunderthevigorousdevelopmentofretailbusiness,operatingrevenueincreasedy-o-y.
Operatingcosts29,216,837,201.0723,971,029,719.4421.88%Ay-o-ygrowthof21.88%;thegrowthtrendisbasicallyinlinewiththerevenue.
Sellingexpenses2,307,485,529.771,728,738,818.6033.48%Ay-o-ygrowthof33.48%;insecondof2020,subsidiaryoftheCompany-GuodaDrugstoreacquiretheChengdaFangyuanPharmaceuticalGroupCo.,Ltd,thanthesalesexpenseshavegreatlygrowthoversameperiodlastyear.
Administrativeexpenses492,536,936.71443,287,144.9211.11%Nomajorchanges
Financecosts107,243,003.1565,313,829.6264.20%Ay-o-ygrowthof64.20%;inthesecondhalfof2020,alargeamountofequity
acquisitionconsiderationhavebeenpaid,balanceofbanksavingsdeclined,thantheinterestincomefromsavingsdecreasedonay-o-ybasis,andtheinterestonsupplychainfinancingincreasedinthePeriod
Incometaxexpenses238,426,259.04210,106,764.3513.48%Nomajorchanges
Netcashflowsfromoperatingactivities1,229,373,283.571,438,204,043.35-14.52%Nomajorchanges
Netcashflowsfrominvestingactivities-291,260,821.37-666,346,816.8756.29%Ay-o-ygrowthof56.29%;theamountpaidfortheacquisitionofsubsidiariesbysubsidiary-GuodaDrugstoreinthecurrentperioddecreasedfromthesameperiodlastyear
Netcashflowsfromfinancingactivities-806,011,505.39-1,197,318,438.5132.68%Ay-o-ygrowthof32.68%;thepaymentstonon-financialinstitutionsfelly-o-y,andatsameperiodlastyear,theinvestmentamountpaidforacquisitionoftheenterprise(PudongNewAreaofShanghaiPharmaceuticalMedicineLtd)underthesamecontrolbysubsidiaryoftheCompany-GuodaDrugstore
Netincreaseincashandcashequivalent132,492,959.44-425,509,148.00131.14%Ay-o-ygrowthof131.14%;paymentsfromsubsidiary-GuodaDrugstoreforacquisitiondecreasedoverthatoflastyear

Majorchangesonprofitcompositionorprofitresourcesinreportingperiod

□Applicable√NotapplicableNomajorchangesonprofitcompositionorprofitresourcesoccurredinreportingperiod.Constitutionofoperationrevenue

InRMB

CurrentperiodSameperiodlastyearIncrease/decreasey-o-y(+,-)
AmountRatioinoperationrevenueAmountRatioinoperationrevenue
Totalofoperationrevenue33,163,091,887.39100%27,169,940,188.52100%22.06%
Accordingtoindustries
Pharmaceuticaldistribution23,157,094,599.1769.83%19,185,884,075.6870.61%20.70%
Retailpharmacy9,853,255,644.4829.71%7,876,117,404.6928.99%25.10%
Other152,741,643.740.46%107,938,708.150.40%41.51%
Accordingtoproducts
Pharmaceuticals30,006,046,182.1190.48%24,375,725,625.6589.71%23.10%
Medicaldevicesanddisposables2,210,930,715.286.67%2,185,440,182.478.04%1.17%
Diagnosticreagents515,191,908.401.55%335,716,038.171.24%53.46%
Medicalequipment278,181,437.860.84%165,119,634.080.61%68.47%
Other152,741,643.740.46%107,938,708.150.40%41.51%
Accordingtoregion
China33,163,091,887.39100.00%27,169,940,188.52100.00%22.06%

Abouttheindustries,products,orregionsaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit

√Applicable□Notapplicable

InRMB

OperatingrevenueOperatingcostGrossprofitratioIncrease/decreaseofoperatingrevenuey-o-yIncrease/decreaseofoperatingcosty-o-yIncrease/decreaseofgrossprofitratioy-o-y
Accordingtoindustries
Pharmaceuticaldistribution23,157,094,599.1721,760,517,286.116.03%20.70%20.73%-0.03%
Retailpharmacy9,853,255,644.487,355,870,065.1125.35%25.10%24.21%0.54%
Accordingtoproducts
Pharmaceuticals30,006,046,182.1126,306,817,487.3312.33%23.10%22.20%0.65%
Accordingtoregion
China33,163,091,887.3929,216,837,201.0711.90%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

EndofcurrentperiodEndoflastyearRatiochangesNotesofmajorchanges
AmountRatiointotalassetsAmountRatiointotalassets
Cashandbankbalances5,876,638,427.5613.30%5,998,204,295.8715.15%-1.85%Nomajorchanges
Accountsreceivable17,761,176,449.2540.19%13,799,971,014.2234.85%5.34%Nomajorchanges
Contractassets17,066,105.530.04%15,177,731.640.04%0.00%Nomajorchanges
Inventories7,219,658,618.6216.34%6,285,010,674.4615.87%0.47%Nomajorchanges
Investmentproperties123,389,130.710.28%127,444,379.940.32%-0.04%Nomajorchanges
Long-termequityinvestment2,427,605,792.215.49%2,287,019,627.995.78%-0.29%Nomajorchanges
Fixassets840,386,519.641.90%854,191,083.272.16%-0.26%Nomajorchanges
Constructioninprocess64,636,735.930.15%46,631,190.230.12%0.03%Nomajorchanges
Right-of-useassets2,523,874,174.715.71%2,356,952,392.995.95%-0.24%Nomajorchanges
Short-termborrowings4,632,933,904.3910.48%1,612,187,020.124.07%6.41%ThesupplychainfinancingincreasedinthePeriod
Contractliabilities316,827,151.780.72%368,600,357.140.93%-0.21%Nomajorchanges
Long-termborrowings61,633,794.440.14%31,637,173.890.08%0.06%Nomajorchanges
Leaseliabilities1,361,131,352.803.08%1,303,054,163.903.29%-0.21%Nomajorchanges

2.Mainforeignassets

□Applicable√Notapplicable

2.Assetsandliabilitymeasuredbyfairvalue

√Applicable□Notapplicable

InRMB

ItemOpeningamountGain/lossofchangesinfairvalueCumulativechangesoffairvaluereckonedintoequityImpairmentaccrualinthePeriodAmountpurchasedinthePeriodAmountsoldinthePeriodOtherchangesEndingamount
Financialassets
Otherequityinstrumentinvestment99,488,340.2899,488,340.28
Othernon-120,972,350.24-2,997,441.73117,974,908
currentfinancialassets.51
Receivablefinancing1,404,987,700.38-1,059,080,812.83345,906,887.55
Totalofabove1,625,448,390.90-1,062,078,254.56563,370,136.34
Financialliability0.000.00

Contentofotherchanges

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

2.Inthefinancingofreceivables,otherchangeswerecausedbychangesinbankacceptancebillsheldinthecurrentperiod.WhetherthemeasurementattributeformainassetsoftheCompanyhavechangedsignificantlyinthereportingperiod

□Yes√No

4.Assetsrightrestrictiontillendofreportingperiod

2021-6-302020-12-31Note
Cashandbankbalances338,186,269.94593,091,037.88(1)
Endorsednotesreceivableandreceivablefinancing20,196,089.4927,939,151.58(2)
Pledgedreceivablefinancing-2,620,000.00(3)
358,382,359.43623,650,189.46

(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

CompanynameTypeMainbusinessRegistercapitalTotalassetsNetassetsOperatingrevenueOperatingprofitNetprofit
SinopharmHoldingGuangzhouCo.,Ltd.Subsidiary"Salesofdrugs,medicalapparatusandinstruments,cargotransport,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing"3,553,249,393.1717,918,202,144.734,512,441,243.7517,320,141,510.68446,580,622.00330,710,871.11
SinopharmHoldingGuodaDrugstoreCo.,Ltd.Subsidiary"Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemical1,683,333,333.0016,344,255,324.135,846,823,975.8910,841,326,194.08339,519,962.59263,262,365.37
medicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&exportoftechnology"
SinopharmHoldingGuangxiCo.,Ltd.Subsidiary"Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts"521,407,965.795,054,481,196.101,141,609,797.483,232,583,872.71101,502,050.1287,430,862.81

Particularaboutsubsidiariesobtainedordisposedinreportperiod

√Applicable□Notapplicable

CompanyThemethodofobtainingandhandlingsubsidiariesduringthereportperiodTheinfluencetothewholeproductionandperformance
YunnanGuodaDishengPharmaceuticalCo.,Ltd.AcquisitionExpandlocalmedicinewholesalebusinesslayout,andwithoutmajorinfluenceonperformanceoftheCompany
YunnanGuodaDishengDrugstoreChainCo.,Ltd.AcquisitionExpandlocalmedicineretailbusinesslayout,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

SessionofmeetingTypeRatioofinvestorparticipationDateofmeetingDateofdisclosureResolutions
AnnualGeneralMeetingof2020AGM64.31%2021-04-282021-04-29JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofAGMof2020No.:2021-19
FirstExtraordinaryShareholdersGeneralMeeting2021ExtraordinaryShareholdersGeneralMeeting63.27%2021-06-252021-06-26JuchaoWebsite—(http://www.cninfo.com.cn)"ResolutionNoticeofFirstExtraordinaryShareholdersGeneralMeeting2021No.:2021-25

2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore

□Applicable√Notapplicable

II.Changesofdirectors,supervisorsandseniorexecutives√Applicable□Notapplicable

NameTitleTypeDateReasons
LiDongjiuDirectorOfficeleaving2021-03-01Workscheduleadjustment
ZhaoXiaochuanDeputyGMDismissal2021-05-21Workscheduleadjustment
JiangXiuchangDirectorResignaftertermofoffice2021-06-25RenewaloftheBOD
LiXiaojuanDirectorBeelected2021-06-25RenewaloftheBOD
ZhouSongDirectorBeelected2021-06-25RenewaloftheBOD

III.ProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod

□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistributed,nobonussharesandhasnoshareconvertedfromcapitalreserveeitherforthesemi-annualyear.

IV.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√NotapplicableTheCompanyhasnoequityincentiveplan,employeestockownershipplansorotheremployeeincentivesinPeriod.

SectionVEnvironmentalandSocialResponsibility

1.Majorenvironmentprotection

ThelistedCompanyanditssubsidiarywhetherbelongtothekeysewageunitsreleasedfromenvironmentalprotectiondepartment

□Yes√Novoluntarydisclosure

Company/subsidiaryNameofMajorPollutantsandParticularPollutantsEmissionMethodQuantityofDischargeOutletDistributionofDischargeOutletEmissionConcentrationExecutedPollutantDischargeStandardsTotalEmissionsApprovedTotalEmissionsExcessiveDischarge
MainLuckPharmaceuticalsCODTubeDischarge1DischargeOutletofWasteWater13mg/LDischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-20080.012ton/year0.05ton/yearN/A
MainLuckPharmaceuticalsAmmoniaNitrogenTubeDischarge1DischargeOutletofWasteWater0.5mg/LDischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-20080.0005ton/year0.009ton/yearN/A
MainLuckPharmaceuticalsPhosphateTubeDischarge1DischargeOutletofWasteWater0.05mg/lDischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-0.00005ton/year0.0005ton/yearN/A
GB21908-2008
MainLuckPharmaceuticalsBODTubeDischarge1DischargeOutletofWasteWater3mg/LDischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-20080.003ton/year0.014ton/yearN/A
MainLuckPharmaceuticalsSSTubeDischarge1DischargeOutletofWasteWater2mg/LDischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-20080.002ton/year0.03ton/yearN/A
ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.CODTubeDischarge1DischargeOutletofWasteWater29㎎/LTable-2in“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”0.6995ton/year7.306ton/yearN/A
ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd.AmmoniaNitrogenTubeDischarge1DischargeOutletofWasteWater1.3738㎎/LTable-2in“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”0.0331ton/year0.812ton/yearN/A
ChinaNationalZhijunTotalphosphorusTubeDischarge1DischargeOutletofWaste0.038㎎/LTable-2in“DischargeStandards0.0009ton/year0.041ton/yearN/A
(Shenzhen)PharmaceuticalCo.,Ltd.WaterofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008”
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.CODTubeDischarge1DischargeOutletofWasteWater21.83㎎/LThestricteronebetween“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008)”and“EnvironmentalQualityStandardsforSurfaceWater”(GB3838-2002)forClassIVwater(AmmoniaNitrogenuptoClassV)0.609ton/year2.16ton/yearN/A
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.AmmoniaNitrogenTubeDischarge1DischargeOutletofWasteWater0.287㎎/L
0.008ton/year0.144ton/yearN/A
2002)forClassIVwater(AmmoniaNitrogenuptoClassV)
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.TotalphosphorusTubeDischarge1DischargeOutletofWasteWater0.018㎎/LThestricteronebetween“DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory(GB21908-2008)”and“EnvironmentalQualityStandardsforSurfaceWater”(GB3838-2002)forClassIVwater(AmmoniaNitrogenuptoClassV)0.0005ton/year0.0216ton/yearN/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

RelatedpartyRelationshipMaximumdailydepositlimit(in10thousandyuan)DepositinterestraterangeOpeningbalance(in10thousandyuan)Amountoccurred(in10thousandyuan)Endingbalance(in10thousandyuan)
SinopharmGroupFinanceCo.,LtdThesameultimatecontrolling30,000.000.35%-1.15%10,177.99-10,014.31163.68

Loanbusiness

shareholderRelatedparty

RelatedpartyRelationshipLoanline(in10thousandyuan)LoaninterestraterangeOpeningbalance(in10thousandyuan)Amountoccurred(in10thousandyuan)Endingbalance(in10thousandyuan)
SinopharmGroupFinanceCo.,LtdThesameultimatecontrollingshareholder100,000.003.6%-3.7%1,432.2856,734.4158,166.69

Creditextensionorotherfinancialbusiness

RelatedpartyRelationshipTypeofbusinessTotalamount(in10thousandyuan)Actualamount(in10thousandyuan)
SinopharmGroupFinanceCo.,LtdThesameultimatecontrollingshareholderCredit100,000.0058,166.69
SinopharmGroupFinanceCo.,LtdThesameultimatecontrollingshareholderBankacceptancebilldiscount32,376.1532,376.15
SinopharmGroupFinanceCo.,LtdThesameultimatecontrollingshareholderEntrustedloan3,160.003,160.00

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)
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappeningActualguaranteelimitGuaranteetypeCollateral(ifapplicable)Counter-guaranteesituation(ifapplicable)GuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
N/A
GuaranteebetweentheCompanyandthesubsidiaries
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappeningActualguaranteelimitGuaranteetypeCollateral(ifapplicable)Counter-guaranteesituation(ifapplicable)GuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
SinopharmHoldingGuangzhouCo.,Ltd.April2,202130,000May20,202130,000Jointliabilityassurance2021.05.20-2022.05.20NY
SinopharmHoldingGuangzhouCo.,Ltd.April2,202170,000May10,202170,000Jointliabilityassurance2021.05.10-2022.05.09NY
SinopharmHoldingGuangzhouCo.,Ltd.April22,202060,000December8,202030,499.62Jointliabilityassurance2020.12.08-2021.12.03NY
SinopharmHoldingGuangzhouCo.,Ltd.April2,202115,000June28,202115,000Jointliabilityassurance2021.06.28-2022.06.27NY
SinopharmHoldingGuangzhouCo.,Ltd.April2,202195,000May20,202164,038.5Jointliabilityassurance2021.05.20-2022.05.20NY
SinopharmHoldingGuangzhouCo.,Ltd.April22,202020,000October20,20202,197.68Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingGuangzhouCo.,Ltd.April22,202047,000August31,202028,423.37Jointliabilityassurance2020.08.31-2021.08.31NY
SinopharmHoldingGuangzhouCo.,Ltd.April22,20205,000August6,2020Jointliabilityassurance2020.08.06-2021.08.05NY
SinopharmHoldingApril2,20215,000May20,2021657.98Jointliability2021.05.20-NY
GuangdongYuexingCo.,Ltd.assurance2022.05.20
SinopharmHoldingGuangdongYuexingCo.,Ltd.April22,202012,000October20,20204,090.08Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingGuangdongYuexingCo.,Ltd.April2,202115,000May10,202111,313.14Jointliabilityassurance2021.05.10-2022.05.09NY
SinopharmHoldingGuangdongYuexingCo.,Ltd.April22,20203,000January10,20212,545.93Jointliabilityassurance2021.01.10-2022.01.09NY
SinopharmHoldingGuangdongYuexingCo.,Ltd.April22,20205,000November20,2020Jointliabilityassurance2020.11.20-2021.11.19NY
SinopharmHoldingGuangdongHengxingCo.,Ltd.April22,202015,000September27,20207,176.7Jointliabilityassurance2020.09.27-2021.09.27NY
SinopharmHoldingGuangdongHengxingCo.,Ltd.April2,20213,000April28,2021467.34Jointliabilityassurance2021.04.28-2022.04.27NY
SinopharmHoldingFoshanCo.,Ltd.April22,2020500October20,2020149.29Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingFoshanCo.,Ltd.April2,20212,000May10,2021Jointliabilityassurance2021.05.10-2022.05.10NY
SinopharmHoldingFoshanCo.,Ltd.April22,20202,500March23,2021153.41Jointliabilityassurance2021.03.23-2022.03.22NY
SinopharmHoldingZhaoqingCo.,Ltd.April22,20202,500October20,20201,303.45Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingZhaoqingCo.,Ltd.April2,20212,000June1,2021762.47Jointliabilityassurance2021.06.01-2022.05.11NY
SinopharmHoldingZhaoqingCo.,Ltd.April2,20213,000June30,2021500.48Jointliabilityassurance2021.06.30-2022.06.29NY
GuangdongNanfangPharmaceutApril22,202019,500July1,20205,942.14Jointliability2020.07.01-2021.06.3NY
icalForeignTradeCo.,Ltd.assurance0
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.April22,202015,000October16,20209,009.66Jointliabilityassurance2020.10.16-2021.10.15NY
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.April22,202020,000September27,202010,264.71Jointliabilityassurance2020.09.27-2021.09.27NY
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.April22,20203,000October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.April22,202010,000November12,20204,703.63Jointliabilityassurance2020.11.12-2021.11.03NY
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.April22,20205,000September25,2020Jointliabilityassurance2020.09.25-2021.09.24NY
FoshanNanhaiMedicineCo.,Ltd.April22,20201,500October20,20201,091.78Jointliabilityassurance2020.10.20-2021.10.19NY
FoshanNanhaiMedicineCo.,Ltd.April22,202010,000March22,20215,259.87Jointliabilityassurance2021.03.22-2022.03.21NY
FoshanNanhaiMedicineCo.,Ltd.April22,20207,000March1,20214,214.8Jointliabilityassurance2021.03.01-2022.02.28NY
FoshanNanhaiMedicineCo.,Ltd.April2,20213,000June24,2021Jointliabilityassurance2021.06.24-2022.05.11NY
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.April22,20202,000October20,2020573.55Jointliabilityassurance2020.10.20-2021.10.19NY
FoshanNanhaiUptodate&SpecialMedicinesApril22,202010,000March22,20215,505.71Jointliabilityassurance2021.03.22-2022.03.21NY
Co.Ltd.
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.April22,20207,000March1,20211,490.57Jointliabilityassurance2021.03.01-2022.02.28NY
FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd.April2,20213,000June24,2021Jointliabilityassurance2021.06.24-2022.05.11NY
SinopharmHolding(Jiangmen)Co.,Ltd.April22,20201,500October20,2020121.33Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHolding(Jiangmen)Co.,Ltd.April2,20215,000May26,20211,791.69Jointliabilityassurance2021.05.26-2022.05.11NY
SinopharmHolding(Jiangmen)Co.,Ltd.April22,20203,000September21,20201,864.86Jointliabilityassurance2020.09.21-2021.09.20NY
SinopharmHolding(Jiangmen)Co.,Ltd.April2,20214,000May31,20213,447.41Jointliabilityassurance2021.05.31-2022.05.31NY
SinopharmHoldingMeizhouCo.,Ltd.April22,20201,000October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingMeizhouCo.,Ltd.April22,20204,000June29,20201,000Jointliabilityassurance2020.06.29-2021.06.28NY
SinopharmHoldingMeizhouCo.,Ltd.April2,20215,000June3,20214,387.21Jointliabilityassurance2021.06.03-2022.05.11NY
SinopharmHoldingMeizhouCo.,Ltd.April2,20216,000June21,20213,000Jointliabilityassurance2021.06.21-2022.03.19NY
SinopharmHoldingZhongshanCo.,Ltd.April22,20201,000October20,2020900Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingZhongshanCo.,Ltd.April22,20202,000November18,20201,628.39Jointliabilityassurance2020.11.18-2021.11.17NY
SinopharmHoldingZhongshanCo.,Ltd.April2,20213,000May26,2021Jointliabilityassurance2021.05.26-2022.05.11NY
SinopharmHoldingApril2,20211,000May31,2021Jointliability2021.05.31-NY
ZhongshanCo.,Ltd.assurance2022.05.30
SinopharmHoldingShantouCo.,Ltd.April22,2020500October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingShantouCo.,Ltd.April22,20203,000August31,20201,450Jointliabilityassurance2020.08.31-2021.08.30NY
SinopharmHoldingShantouCo.,Ltd.April2,20212,000June3,20211,100Jointliabilityassurance2021.06.03-2022.05.11NY
SinopharmHoldingShantouCo.,Ltd.April22,20202,000March31,2021Jointliabilityassurance2021.03.31-2022.03.30NY
SinopharmHoldingHuizhouCo.,Ltd.April22,20201,000October20,2020790.16Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingHuizhouCo.,Ltd.April22,20203,000October20,2020469.36Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingHuizhouCo.,Ltd.April22,20201,000September3,2020854.16Jointliabilityassurance2020.09.03-2021.09.02NY
SinopharmHoldingHuizhouCo.,Ltd.April2,20214,000June3,2021494.52Jointliabilityassurance2021.06.03-2022.05.11NY
SinopharmHoldingZhanjiangCo.,Ltd.April22,20202,000October20,20201,380Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingZhanjiangCo.,Ltd.April22,20205,000August10,20204,376.38Jointliabilityassurance2020.08.10-2021.08.09NY
SinopharmHoldingZhanjiangCo.,Ltd.April2,20218,000May19,20213,361.79Jointliabilityassurance2021.05.19-2022.05.19NY
SinopharmHoldingZhanjiangCo.,Ltd.April22,20203,000September18,2020Jointliabilityassurance2020.09.18-2021.09.17NY
SinopharmHoldingZhuhaiCo.,Ltd.April22,20201,000October20,2020999.93Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingZhuhaiCo.,Ltd.April22,20203,000August5,20202,855.15Jointliabilityassurance2020.08.05-2021.08.04NY
SinopharmApril2,4,000June1,2,716.27Joint2021.06.0NY
HoldingZhuhaiCo.,Ltd.20212021liabilityassurance1-2022.05.11
SinopharmHoldingZhuhaiCo.,Ltd.April22,20202,000May15,20201,173.51Jointliabilityassurance2020.05.15-2021.05.15NY
SinopharmHoldingDongguanCo.,Ltd.April2,20213,000June3,2021Jointliabilityassurance2021.06.03-2022.05.11NY
SinopharmHoldingDongguanCo.,Ltd.April22,20202,000October20,20201,500Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingDongguanCo.,Ltd.April22,20203,000June24,20201,500Jointliabilityassurance2020.06.24-2021.06.23NY
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.April2,202110,000May10,20219,842Jointliabilityassurance2021.05.10-2022.05.09NY
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.April2,20215,000April2,20214,973.42Jointliabilityassurance2021.04.02-2022.04.01NY
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.April22,20209,000October19,20208,649.36Jointliabilityassurance2020.10.19-2021.10.18NY
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.April22,20204,000October20,20201,840.56Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingGuangdongDongfangNewSpecialMedicineCo.,Ltd.April2,20213,000May19,20212,996.1Jointliabilityassurance2021.05.19-2022.05.11NY
SinopharmHoldingApril22,20201,000October20,2020747.21JointliabilityTheminorit2020.10.20-NY
ShaoguanCo.,Ltd.assuranceyshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.10.19
SinopharmHoldingShaoguanCo.,Ltd.April2,20213,000June11,2021948.71JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.11-2022.05.11NY
SinopharmHoldingMaomingCo.,Ltd.April2,20214,500May31,2021315.98Jointliabilityassurance2021.05.31-2022.05.11NY
SinopharmHoldingMaomingCo.,Ltd.April22,20203,000July28,2020370.58Jointliabilityassurance2020.07.28-2021.07.27NY
SinopharmHoldingGuangzhouHuaduCo.,Ltd.April22,20203,000September27,2020549.56JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.09.27-2021.09.27NY
SinopharmHoldingGuangzhouHuaduCo.,Ltd.April22,20203,000February24,2021JointliabilityassuranceTheminorityshareholdershavesignedtheequity2021.02.24-2022.02.23NY
pledgecontractandregisteredtheirequitypledges
SinopharmHoldingHeyuanCo.,Ltd.April2,20215,000June3,20214,069.64JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.03-2022.05.11NY
SinopharmHoldingHeyuanCo.,Ltd.April2,20213,000May6,2021JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.05.06-2022.03.19NY
SinopharmHoldingFoshanMedicalSuppliesSupplyChainCo.,Ltd.April22,20201,000March1,20213.59JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.03.01-2022.02.28NY
SinopharmAccord(Guangzhou)MedicineCo.,Ltd.April2,20212,000May18,2021JointliabilityassuranceTheminorityshareholdershavesignedthe2021.05.18-2022.05.11NY
equitypledgecontractandregisteredtheirequitypledges
SinopharmAccord(Guangzhou)MedicineCo.,Ltd.April22,20201,000August17,2020JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.08.17-2021.08.16NY
SinopharmHoldingGuangxiCo.,Ltd.April2,202130,000May25,202129,239.38Jointliabilityassurance2021.05.25-2022.05.25NY
SinopharmHoldingGuangxiCo.,Ltd.April22,202016,000October20,20209,589.29Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingGuangxiCo.,Ltd.April22,202020,000June16,20208,000Jointliabilityassurance2020.06.16-2021.06.15NY
SinopharmHoldingGuangxiCo.,Ltd.April22,202010,000May28,20205,792.22Jointliabilityassurance2020.05.28-2021.05.28NY
SinopharmHoldingGuangxiCo.,Ltd.April2,202125,000June28,2021998.02Jointliabilityassurance2021.06.28-2022.06.28NY
SinopharmHoldingGuangxiCo.,Ltd.April22,202010,000September1,20204,992.2Jointliabilityassurance2020.09.01-2021.08.31NY
SinopharmHoldingGuangxiCo.,Ltd.April2,202120,000May20,202112,085.89Jointliabilityassurance2021.05.20-2022.05.20NY
SinopharmHoldingGuangxiCo.,Ltd.April22,202015,000September11,2020Jointliabilityassurance2020.09.11-2021.09.10NY
SinopharmHoldingLiuzhouCo.,Ltd.April22,20205,000October20,20201,000.97JointliabilityassuranceTheminorityshareholders2020.10.20-2021.10.19NY
havesignedthecounter-guaranteecontract
SinopharmHoldingLiuzhouCo.,Ltd.April22,202010,000June21,20201,997.56JointliabilityassuranceTheminorityshareholdershavesignedthecounter-guaranteecontract2020.06.21-2021.06.20NY
SinopharmHoldingLiuzhouCo.,Ltd.April22,202010,000March4,20212,276.4JointliabilityassuranceTheminorityshareholdershavesignedthecounter-guaranteecontract2021.03.04-2022.02.08NY
SinopharmHoldingLiuzhouCo.,Ltd.April22,20205,000July1,20204,393.51JointliabilityassuranceTheminorityshareholdershavesignedthecounter-guaranteecontract2020.07.01-2021.06.30NY
SinopharmHoldingLiuzhouCo.,Ltd.April2,20219,000May17,20213,000JointliabilityassuranceTheminorityshareholdershavesignedthecounter-guaranteecontract2021.05.17-2022.05.16NY
SinopharmHoldingLiuzhouCo.,Ltd.April22,202010,000December21,20205,469.88JointliabilityassuranceTheminorityshareholdershavesignedthe2020.12.21-2021.12.21NY
counter-guaranteecontract
SinopharmHoldingGuilinCo.,Ltd.April22,2020200October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingGuilinCo.,Ltd.April2,20212,000May26,20212,000Jointliabilityassurance2021.05.26-2022.05.25NY
SinopharmHoldingWuzhouCo.,Ltd.April22,2020300October20,2020145.95Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingWuzhouCo.,Ltd.April2,20213,000May26,2021Jointliabilityassurance2021.05.26-2022.05.25NY
SinopharmHoldingWuzhouCo.,Ltd.April22,20202,000August7,20202,000Jointliabilityassurance2020.08.07-2021.08.07NY
SinopharmHoldingBaiseCo.,Ltd.April22,2020500October20,2020384.15Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingBaiseCo.,Ltd.April2,20213,000May26,2021Jointliabilityassurance2021.05.26-2022.05.25NY
SinopharmHoldingYulinCo.,ltd.April22,20201,000October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingYulinCo.,ltd.April2,20213,000May26,20212,000Jointliabilityassurance2021.05.26-2022.05.25NY
SinopharmHoldingBeihaiCo.,Ltd.April22,2020500October20,2020Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingBeihaiCo.,Ltd.April2,20212,000May20,2021800Jointliabilityassurance2021.05.20-2022.05.20NY
SinopharmHoldingBeihaiCo.,Ltd.April2,20213,000May26,20213,000Jointliabilityassurance2021.05.26-2022.05.25NY
SinopharmHoldingGuigangCo.,Ltd.April22,20201,000January29,20211,000Jointliabilityassurance2021.01.29-2022.01.28NY
SinopharmHoldingGuigangApril2,20212,000May26,20212,000Jointliabilityassurance2021.05.26-2022.05.2NY
Co.,Ltd.5
SinopharmHoldingShenzhenYanfengCo.,Ltd.April22,20204,000October20,20204,000JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.20-2021.10.19NY
SinopharmHoldingShenzhenYanfengCo.,Ltd.April22,20208,000May28,20207,363.96JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.05.28-2021.05.28NY
SinopharmHoldingShenzhenYanfengCo.,Ltd.April22,20204,000January10,20211,405.81JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.01.10-2022.01.09NY
SinopharmHoldingShenzhenYanfengCo.,Ltd.April22,20205,000November2,20205,000JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir2020.11.02-2021.07.13NY
equitypledges
SinopharmHoldingShenzhenJianminCo.,ltd.April22,20203,000October20,20202,036.14Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingShenzhenJianminCo.,ltd.April22,20202,000March17,2021Jointliabilityassurance2021.03.17-2021.11.05NY
SinopharmHoldingShenzhenJianminCo.,ltd.April22,20203,000January10,2021998.48Jointliabilityassurance2021.01.10-2022.01.09NY
SinopharmHoldingShenzhenJianminCo.,ltd.April2,20213,000June22,2021Jointliabilityassurance2021.06.22-2022.05.11NY
SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd.April22,2020500October20,202077.14Jointliabilityassurance2020.10.20-2021.10.19NY
SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd.April2,20211,500June22,2021Jointliabilityassurance2021.06.22-2022.05.11NY
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.April22,20205,000June18,2020824JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.06.18-2021.05.18NY
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.April22,20203,000November10,2020546.99JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractand2020.11.10-2021.11.09NY
registeredtheirequitypledges
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd.April22,20203,000March24,2021267JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.03.24-2021.08.13NY
Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1)501,500.00Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(B2)801,052.89
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3)941,500.00Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4)520,489.63
Guaranteesofsubsidiariestosubsidiaries
NameoftheCompanyguaranteedRelatedAnnouncementdisclosuredateGuaranteelimitActualdateofhappeningActualguaranteelimitGuaranteetypeCollateral(ifapplicable)Counter-guaranteesituation(ifapplicable)GuaranteetermImplemented(Y/N)Guaranteeforrelatedparty(Y/N)
BeijingJinxiangDrugstoreMedicineChainCo.,LtdApril22,20204,200December21,20202,491.52Jointliabilityassurance2020.12.21-2021.12.20NY
FujianGuodaDrugstoreChainCo.,Ltd.April22,20201,200July29,2020Jointliabilityassurance2020.07.29-2021.07.30NY
FujianGuodaDrugstoreChainCo.,Ltd.April22,20201,800October21,20201,299.14Jointliabilityassurance2020.10.21-2021.10.20NY
FujianGuodaMedicinesCo.,Ltd.April22,2020600August13,2020210.57Jointliabilityassurance2020.08.13-2021.08.13NY
GuodaApril2,1,200June10,547.06JointThe2021.06.1NY
Drugstore(Pu'er)SongmaoCo.,Ltd.20212021liabilityassuranceminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges0-2022.05.12
GuodaDrugstore(Pu'er)SongmaoCo.,Ltd.April22,20201,200September1,2020JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.09.01-2021.08.31NY
GuodaYiheDrugstoreJilinCo.,Ltd.April22,20204,080September23,20202,915.18Jointliabilityassurance2020.09.23-2021.09.22NY
GuodaYiheDrugstoreJilinCo.,Ltd.April22,20203,000July15,2020Jointliabilityassurance2020.07.15-2021.07.15NY
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.April22,20203,000December21,20202,996.31JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.April22,20201,800October21,20201,181.47JointliabilityassuranceTheminorityshareholdershavesignedthe2020.10.21-2021.10.20NY
equitypledgecontractandregisteredtheirequitypledges
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.April2,20219,000June8,20218,953.63JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.08-2022.05.12NY
SinopharmHoldingGuodaShanxiMedicinesCo.,Ltd.April22,202015,000May21,20208,063.64Jointliabilityassurance2020.05.21-2021.05.14NY
SinopharmHoldingGuodaShanxiMedicinesCo.,Ltd.April22,20201,200October21,2020900Jointliabilityassurance2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd.April22,20201,800December21,2020894.45Jointliabilityassurance2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreBayanNurCo.,Ltd.April2,2021600June4,2021418.46JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.04-2022.05.12NY
SinopharmHoldingGuodaDrugstoreApril22,20206,000October21,20201,978.87Jointliabilityassurance2020.10.21-2021.10.2NY
GuangdongCo.,Ltd.0
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.April22,20201,800December21,2020515.87Jointliabilityassurance2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd.April2,20216,000June22,20213,586.44Jointliabilityassurance2021.06.22-2022.05.12NY
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.April22,20201,800October21,2020274.77Jointliabilityassurance2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd.April22,2020600December21,2020582.07Jointliabilityassurance2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd.April22,20201,200December21,2020918.64JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd.April22,20201,800June11,2020677.38JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.06.11-2021.05.14NY
SinopharmHoldingApril2,2021600June4,2021595.45Jointliability2021.06.04-NY
GuodaDrugstoreHulunBuirCo.,Ltd.assurance2022.05.12
SinopharmHoldingGuodaDrugstoreHulunBuirCo.,Ltd.April22,2020300October21,2020299.19Jointliabilityassurance2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.April22,20201,800October21,20201,127.75JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.April2,20211,200April2,2021549.33JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.04.02-2022.04.01NY
SinopharmHoldingGuodaDrugstoreJiangmenChainCo.,Ltd.April22,20201,800December21,2020642.06JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreJiangmenApril22,20203,000December28,2020904.54JointliabilityassuranceTheminorityshareholders2020.12.28-2021.12.27NY
ChainCo.,Ltd.havesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd.April22,2020600December21,2020474.23JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,LtdApril22,20201,800.00September23,20201,109.97JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.09.23-2021.08.19NY
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,LtdApril22,20201,800July21,20201,215.9JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.07.21-2021.07.21NY
SinopharmHoldingGuodaDrugstoreApril22,20206,000October21,20204,267.06JointliabilityassuranceTheminorityshareho2020.10.21-2021.10.20NY
InnerMongoliaCo.,Ltdldershavesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,LtdApril22,20204,800December21,20201,928.6JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,LtdApril2,20211,800June7,20211,531.37JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.07-2022.05.12NY
SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,LtdApril2,20213,600April28,20213,363.63JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.04.28-2021.12.31NY
SinopharmHoldingGuodaApril22,20204,800December25,20203,551.98JointliabilityassuranceTheminority2020.12.25-2021.04.2NY
DrugstoreShanxiYiyuanChainCo.,Ltd.shareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges1
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.April2,20215,040May6,2021JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.05.06-2022.05.05NY
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.April22,20203,600November28,202072.39JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.11.28-2021.11.27NY
SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd.April22,20209,000October21,20207,581.6JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.21-2021.10.20NY
SinopharmHoldingApril2,20214,200June8,20213,437.3JointliabilityTheminorit2021.06.08-NY
GuodaDrugstoreShanxiYiyuanChainCo.,Ltd.assuranceyshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2022.05.12
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.April22,20201,800November27,20201,390.97Jointliabilityassurance2020.11.27-2021.11.27NY
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.April2,20212,400June20,2021810.57Jointliabilityassurance2021.06.20-2022.06.20NY
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.August24,20192,400April13,2020115.48Jointliabilityassurance2020.04.13-2021.04.12NY
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.April22,20203,000June29,2020547.41Jointliabilityassurance2020.06.29-2021.06.28NY
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.April22,20206,000December21,20204,752.98JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreShenyangApril22,20206,000November4,20202,312.34JointliabilityassuranceTheminorityshareholders2020.11.04-2021.11.04NY
ChainCo.,Ltd.havesignedtheequitypledgecontractandregisteredtheirequitypledges
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.April22,202012,000October21,202011,999.51JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd.April2,202113,800June1,202113,746.37JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.01-2022.05.12NY
SinopharmHoldingGuodaDrugstoreUlanqabCo.,Ltd.April2,2021600June4,202123.69JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.04-2022.05.12NY
SinopharmHoldingGuodaDrugstoreApril22,20203,000December8,20201,804.79Jointliabilityassurance2020.12.08-2021.12.08NY
XinjiangNewSpecialMedicineChainCo.,Ltd.
SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd.April2,20214,800May26,20213,271.49Jointliabilityassurance2021.05.26-2022.05.12NY
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.April22,20201,200October21,2020921.83Jointliabilityassurance2020.10.21-2021.10.20NY
SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd.April22,20201,200December21,20201,139.33Jointliabilityassurance2020.12.21-2021.12.20NY
SinopharmHoldingGuodaDrugstoreZhengzhouChainCo.,Ltd.April22,2020300December21,2020JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.April22,20206,000November24,20203,762.85JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequity2020.11.24-2021.11.23NY
pledges
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.April22,20203,000October21,20202,674.68JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.21-2021.10.20NY
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.April22,20206,000November30,2020607.42JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.11.30-2021.11.29NY
SinopharmHoldingTianheJilinMedicinesCo.,Ltd.April2,20216,000April28,2021JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.04.28-2022.04.27NY
HunanGuodaMinshentangDrugstoreChainCo.,Ltd.April22,20201,800October21,20201,432.55JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir2020.10.21-2021.10.20NY
equitypledges
HunanGuodaMinshentangDrugstoreChainCo.,Ltd.April22,20201,200December21,202076.92JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.12.21-2021.12.20NY
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.April2,202115,000June22,202110,897.58Jointliabilityassurance2021.06.22-2022.06.21NY
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.October22,20206,000December21,20205,370.28Jointliabilityassurance2020.12.21-2021.12.20NY
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.April2,20214,800June1,20211,288.3Jointliabilityassurance2021.06.01-2022.05.12NY
LiaoningChengdaFangyuanMedicineChainCo.,Ltd.October22,20206,000October22,20205,838.3Jointliabilityassurance2020.10.22-2021.10.20NY
LiaoningGuodaMedicinesCo.,Ltd.April22,2020600October21,2020600Jointliabilityassurance2020.10.21-2021.10.20NY
LiaoningGuodaMedicinesCo.,Ltd.April2,20213,000June1,20212,993.3Jointliabilityassurance2021.06.01-2022.05.12NY
InnerMongoliaGuodaMedicineCo.,Ltd.April2,20212,400June7,2021Jointliabilityassurance2021.06.07-2022.05.12NY
NingxiaGuodaDrugstoreChainCo.,Ltd.April22,20202,400September7,20201,593.6Jointliabilityassurance2020.09.07-2021.09.06NY
NingxiaApril22,1,200December10.45Joint2020.12.2NY
GuodaDrugstoreChainCo.,Ltd.202021,2020liabilityassurance1-2021.12.20
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.April22,20203,600October28,2020JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.10.28-2021.10.27NY
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.April22,20203,600July9,20201,332.00JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2020.07.09-2021.07.09NY
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.April2,202115,000June8,202112,120.00JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.08-2022.05.12NY
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.April22,20205,400October21,20205,400JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontract2020.10.21-2021.10.20NY
andregisteredtheirequitypledges
ShanxiGuodaWanminDrugstoreChainCo.,Ltd.April2,20213,000April29,2021720JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.04.29-2022.04.15NY
PudongNewAreaofShanghaiPharmaceuticalMedicineCo.,Ltd.April22,20203,000July24,2020Jointliabilityassurance2020.07.24-2021.07.23NY
YanjiXiangheMedicinesCo.,Ltd.April2,20211,800June8,2021120JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.08-2022.05.12NY
YushuDinghePharmaceuticalTechnologyCo.,Ltd.April2,20211,800June8,2021840JointliabilityassuranceTheminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges2021.06.08-2022.05.12NY
Totalamountofapprovingguaranteeforsubsidiaries107,640.00Totalamountofactualoccurredguaranteefor344,749.89
inreportperiod(C1)subsidiariesinreportperiod(C2)
Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3)285,720.00Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4)172,572.81
TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee)
Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1)609,140.00Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2)1,145,802.78
Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3)1,227,220.00Totalbalanceofactualguaranteeattheendofreportperiod(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

BeforetheChangeIncrease/DecreaseintheChange(+,-)AftertheChange
AmountProportionNewsharesissuedBonussharesPublicreservetransferintosharecapitalOthersSubtotalAmountProportion
I.Restrictedshares5,508,8831.29%5,508,8831.29%
1.State-ownedshares
2.State-ownedlegalperson’sshares5,505,7701.29%5,505,7701.29%
3.Otherdomesticshares3,1130.00%3,1130.00%
Including:Domesticlegalperson’sshares00.00%00.00%
Domesticnaturalperson’sshares3,1130.00%3,1130.00%
4.Foreignshares
Including:Foreignlegalperson’sshares
Foreignnaturalperson’sshares
II.Unrestrictedshares422,618,10098.71%422,618,10098.71%
1.RMBordinaryshares367,733,62585.89%367,733,62585.89%
2.Domesticallylistedforeignshares54,884,47512.82%54,884,47512.82%
3.Overseaslistedforeignshares
4.Others
III.Totalshares428,126,983100.00%428,126,983100.00%

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-end43,600Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)0
Particularsaboutcommonsharesheldabove5%byshareholdersortoptencommonshareholders
FullnameofShareholdersNatureofshareholderProportionofsharesheldAmountofcommonsharesheldattheendofreportingperiodChangesinreportperiodAmountofrestrictedcommonsharesheldAmountofcommonsharesheldwithoutrestrictionInformationofsharespledged,taggedorfrozen
StateofshareAmount
SinopharmGroupCo.,Ltd.State-ownedCorporation56.06%239,999,9915,505,770234,494,221
FIRSTSENTIERINVESTORSGLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUNDForeignCorporation2.68%11,469,64411,469,644
HongKongSecuritiesClearingCompanyLtdForeignCorporation2.58%11,033,94811,033,948
ChinaNationalPharmaceuticalForeignTradeState-ownedCorporation1.24%5,323,0435,323,043
Corp.
NationalSocialSecurityFund413PortfolioDomesticnonstate-ownedCorporation0.98%4,200,0324,200,032
BBHBOSS/AFIDELITYFD-CHINAFOCUSFDForeignCorporation0.78%3,358,7613,358,761
ChinaConstructionBankCorporation-ChinaEuropeValueDiscoveryEquityFundDomesticnonstate-ownedCorporation0.73%3,111,8753,111,875
CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplanDomesticnonstate-ownedCorporation0.66%2,822,8012,822,801
FidelityInvestmentManagement(HongKong)Limited-Client’sfundForeignCorporation0.54%2,308,2372,308,237
VANGUARDEMERGINGMARKETSSTOCKINDEXFUNDForeignCorporation0.41%1,756,3871,756,387
ExplanationonassociatedrelationshipamongtheaforesaidshareholdersSinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.
Descriptionoftheaboveshareholdersinrelationtodelegate/entrustedvotingrightsandabstentionfromvotingrights.Notapplicable
Particularabouttoptenshareholderswithun-lockupcommonstocksheld
Shareholders’nameAmountofcommonsharesheldwithoutrestrictionatPeriod-endTypeofshares
TypeAmount
SinopharmGroupCo.,Ltd234,494,221RMBordinaryshares234,494,221
FIRSTSENTIERINVESTORS11,469,644Domestically11,469,644
GLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUNDlistedforeignshares
HongKongSecuritiesClearingCompanyLtd11,033,948RMBordinaryshares11,033,948
ChinaNationalPharmaceuticalForeignTradeCorp.5,323,043RMBordinaryshares5,323,043
NationalSocialSecurityFund413Portfolio4,200,032RMBordinaryshares4,200,032
BBHBOSS/AFIDELITYFD-CHINAFOCUSFD3,358,761Domesticallylistedforeignshares3,358,761
ChinaConstructionBankCorporation-ChinaEuropeValueDiscoveryEquityFund3,111,875RMBordinaryshares3,111,875
CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplan2,822,801RMBordinaryshares2,822,801
FidelityInvestmentManagement(HongKong)Limited-Client’sfund2,308,237RMBordinaryshares2,308,237
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND1,756,387Domesticallylistedforeignshares1,756,387
Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-lockupcommonshareholdersandbetweentop10un-lockupcommonshareholdersandtop10commonshareholdersSinopharmGroupCo.,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)

ASSETSNoteV30June202131December2020
Currentassets
Cashandbankbalances15,876,638,427.565,998,204,295.87
Notesreceivable2606,070,192.39622,115,477.04
Accountsreceivable317,761,176,449.2513,799,971,014.22
Receivablefinancing4345,906,887.551,404,987,700.38
Advancestosuppliers5615,602,916.31480,313,574.71
Otherreceivables6662,274,841.26535,228,747.69
Incl:Dividendreceivable--
Inventories77,219,658,618.626,285,010,674.46
ContractAssets817,066,105.5315,177,731.64
Othercurrentassets9101,585,930.05121,082,863.45
Totalcurrentassets33,205,980,368.5229,262,092,079.46
Non-currentassets
Long-termequityinvestments102,427,605,792.212,287,019,627.99
Otherequityinstrumentinvestment1199,488,340.2899,488,340.28
Othernon-currentfinancialassets12117,974,908.51120,972,350.24
Investmentproperties13123,389,130.71127,444,379.94
Fixedassets14840,386,519.64854,191,083.27
Constructioninprogress1564,636,735.9346,631,190.23
Right-of-useassets162,523,874,174.712,356,952,392.99
Intangibleassets17751,492,524.18734,345,179.40
Goodwill182,932,001,316.632,747,375,281.11
Long-termprepaidexpenses19523,192,988.98457,705,276.09
Deferredtaxassets2096,595,749.3392,118,767.81
Othernon-currentassets21484,259,854.32408,197,522.84
Totalnon-currentassets10,984,898,035.4310,332,441,392.19
Totalassets44,190,878,403.9539,594,533,471.65

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDEQUITYNoteV30June202131December2020
Currentliabilities
Short-termborrowings224,632,933,904.391,612,187,020.12
Notespayable236,780,425,089.177,520,165,274.69
Accountspayable249,642,504,836.507,697,451,142.50
Receiptsinadvance2514,868,097.9712,352,466.64
Contractliabilities26316,827,151.78368,600,357.14
Employeebenefitspayable27242,205,983.09357,212,047.10
Taxpayable28298,201,588.13316,867,149.16
Otherpayables291,531,899,017.871,599,166,881.14
Non-currentliabilitiesduewithinoneyear30798,170,618.10748,732,059.89
Othercurrentliabilities3122,432,447.9724,787,078.55
Totalcurrentliabilities24,280,468,734.9720,257,521,476.93
Non-currentliabilities
Long-termborrowings3261,633,794.4431,637,173.89
Leaseliabilities331,361,131,352.801,303,054,163.90
Long-termpayables346,938,189.006,938,189.00
Long-termemployeebenefitspayable351,262,000.001,319,000.00
Provisions3668,663,166.7968,808,166.79
Deferredincome3791,315,333.8989,843,583.37
Deferredtaxliabilities20200,498,143.67205,921,408.66
Othernon-currentliabilities38630,839,755.01740,862,989.59
Totalnon-currentliabilities2,422,281,735.602,448,384,675.20
Totalliabilities26,702,750,470.5722,705,906,152.13

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDEQUITYNoteV30June202131December2020
Equity
Sharecapital39428,126,983.00428,126,983.00
Capitalsurplus404,372,043,185.434,372,504,053.72
Othercomprehensiveincome4138,547,872.6238,483,017.72
Surplusreserve42214,063,491.50214,063,491.50
Retainedearnings439,294,088,533.248,895,145,106.39
Totalequityattributabletoownersoftheparent14,346,870,065.7913,948,322,652.33
Non-controllinginterests3,141,257,867.592,940,304,667.19
Totalequity17,488,127,933.3816,888,627,319.52
Totalliabilitiesandequity44,190,878,403.9539,594,533,471.65

TheaccompanyingnotesformanintegralpartofthesefinancialstatementsThefinancialstatementshavebeensignedby:

Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(Continued)

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteVForthesixmonthsended30June2021Forthesixmonthsended30June2020
Operatingrevenue4433,163,091,887.3927,169,940,188.52
Less:Operatingcosts4429,216,837,201.0723,971,029,719.44
Taxesandsurcharges4575,989,854.5869,505,309.32
Sellingexpenses462,307,485,529.771,728,738,818.60
Administrativeexpenses47492,536,936.71443,287,144.92
Financecosts48107,243,003.1565,313,829.62
Incling:Interestexpense147,057,897.99133,350,510.68
Interestincome38,758,729.7865,512,550.22
Add:Interestexpense4947,249,616.2635,855,298.32
Investmentincome50156,587,066.32105,206,349.26
Incling:Investmentincomefromassociates157,696,397.81133,604,904.16
Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost(7,039,046.60)(33,507,102.64)
Creditimpairmentlosses51(28,664,985.44)(21,580,231.52)
Impairmentlosses52(416,915.26)(1,743,888.30)
Gainondisposalofassets53(588,799.55)4,305,324.80
Operatingprofits1,137,165,344.441,014,108,219.18
Add:Non-operatingincome5412,493,320.445,219,980.22
Less:Non-operatingexpenses553,237,951.353,008,892.52
Totalprofit1,146,420,713.531,016,319,306.88
Less:Incometaxexpenses56238,426,259.04210,106,764.35
Netprofit907,994,454.49806,212,542.53
NetProfitfromcontinuingoperations907,994,454.49806,212,542.53
Netprofitattributabletoownersoftheparent741,445,013.25643,451,580.59
Profitorlossofnon-controllinginterests166,549,441.24162,760,961.94

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(Continued)

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteVForthesixmonthsended30June2021Forthesixmonthsended30June2020
Othercomprehensiveincome,netoftax64,854.90122,186.89
Othercomprehensiveincome,netoftax,attributabletoownersoftheparent64,854.90122,186.89
Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss64,854.90122,186.89
Othercomprehensiveincomeusingtheequitymethodthatwillbereclassifiedtoprofitorloss64,854.90122,186.89
Totalcomprehensiveincome908,059,309.39806,334,729,42
Incl:Totalcomprehensiveincomeattributabletoownersoftheparent741,509,868.15643,573,767.48
Totalcomprehensiveincomeattributabletonon-controllinginterests166,549,441.24162,760,961.94
Earningspershare
Basicearningspershare1.731.50
Dilutedearningspershare1.731.50

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021Attributabletoownersoftheparent
SharecapitalCapitalsurplusOthercomprehensiveincomeSurplusreservesRetainedearningsSubtotalNon-controllinginterestsTotalequity
I.Balanceatendofprioryear428,126,983.004,372,504,053.7238,483,017.72214,063,491.508,895,145,106.3913,948,322,652.332,940,304,667.1916,888,627,319.52
Add:Businesscombinationinvolvingentitiesundercommoncontrol---
II.Balanceatbeginningofyear428,126,983.004,372,504,053.7238,483,017.72214,063,491.508,895,145,106.3913,948,322,652.332,940,304,667.1916,888,627,319.52
III.Changesfortheyear-(460,868.29)64,854.90-398,943,426.85398,547,413.46200,953,200.40599,500,613.86
(1)Totalcomprehensiveincome--64,854.90-741,445,013.25741,509,868.15166,549,441.24908,059,309.39
(2)Owners’contributionsandreductionincapital-(460,868.29)--(460,868.29)58,773,146.3858,312,278.09
1.Capitalcontributionsbyowners------15,680,000.0015,680,000.00
2.Others-(460,868.29)--(460,868.29)43,093,146.3842,632,278.09
(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.Balanceatendofyear428,126,983.004,372,043,185.4338,547,872.62214,063,491.509,294,088,533.2414,346,870,065.793,141,257,867.5917,488,127,933.38

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2020Attributabletoownersoftheparent
SharecapitalCapitalsurplusOthercomprehensiveincomeSurplusreservesRetainedearningsSubtotalNon-controllinginterestsTotalequity
I.Balanceatendofprioryear428,126,983.004,363,007,511.5745,917,342.77214,063,491.507,755,295,537.0812,806,410,865.922,553,426,974.3115,359,837,840.23
Add:Businesscombinationinvolvingentitiesundercommoncontrol-107,759,447.87--(3,029,877.91)104,729,569.96109,412,866.52214,142,436.48
II.Balanceatbeginningofyear428,126,983.004,470,766,959.4445,917,342.77214,063,491.507,752,265,659.1712,911,140,435.882,662,839,840.8315,573,980,276.71
III.Changesfortheyear-(97,854,894.55)122,186.89-386,575,390.79288,842,683.13154,985,375.48443,828,058.61
(1)Totalcomprehensiveincome--122,186.89-643,451,580.59643,573,767.48162,760,961.94806,334,729.42
(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.Balanceatendofyear428,126,983.004,372,912,064.8946,039,529.66214,063,491.508,138,841,049.9613,199,983,119.012,817,825,216.3116,017,808,335.32

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CONSOLIDATEDCASHFLOWSTATEMENT

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

NoteVForthesixmonthsended30June2021Forthesixmonthsended30June2020

1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodandthe

renderingofservices

Cashreceivedfromsalesofgoodandtherenderingofservices32,800,434,055.1227,735,103,033.02
Receiptsoftaxesandsurchargesrefunds9,380,253.278,145,306.66
Othercashreceiptsrelatingtooperatingactivities57368,590,875.46707,202,110.00
Totalcashinflowsfromoperatingactivities33,178,405,183.8528,450,450,449.68
Cashpaymentsforgoodsandservices28,541,885,459.3524,305,374,637.56
Cashpaymentstoandonbehalfofemployees1,708,255,657.441,278,474,969.40
Paymentsofalltypesoftaxesandsurcharges766,110,586.13724,722,540.88
Othercashpaymentsrelatingtooperatingactivities57932,780,197.36703,674,258.49
Totalcashoutflowsfromoperatingactivities31,949,031,900.2827,012,246,406.33
Netcashflowsfromoperatingactivities581,229,373,283.571,438,204,043.35

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments

Cashreceiptsfromreturnsofinvestments2,997,441.7319,027,649.76
Cashreceiptsfromreturnsoninvestments22,643,935.3184,166,102.10
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets537,887.384,352,536.98
Othercashreceiptsrelatingtoinvestingactivities5754,984.6022,040,000.00
Totalcashinflowsfrominvestingactivities26,234,249.02129,586,288.84

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteVForthesixmonthsended30June2021Forthesixmonthsended30June2020

2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)Cashpaymentstoacquirefixedassets,intangible

assetsandotherlong-termassets

Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets145,820,319.98116,186,214.91
Cashpaymentsforinvestments70,724,113.0020,545,399.15
Netcashpaymentsforacquisitionofsubsidiariesandotherbusinessunits100,950,637.41659,201,491.65
Othercashpaymentsrelatingtoinvestingactivities--
Totalcashoutflowsfrominvestingactivities317,495,070.39795,933,105.71
Netcashflowsfrominvestingactivities(291,260,821.37)(666,346,816.87)

3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers

Cashproceedsfrominvestmentsbyothers15,680,000.00-
Incl:Cashreceiptsfromcapitalcontributionsfromnon-controllinginterestsofsubsidiaries15,680,000.00-
Cashreceiptsfromborrowings915,684,894.52589,920,037.57
Othercashreceiptsrelatingtofinancingactivities57104,090,555.62334,349,840.06
Totalcashinflowsfromfinancingactivities1,035,455,450.14924,269,877.63
Cashrepaymentsfordebts511,076,477.58284,200,000.00
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses492,345,229.08432,276,651.88
Incl:Dividendsorprofitpaidtonon-controllingshareholdersofsubsidiaries22,846,959.8210,890,773.58
Othercashpaymentsrelatingtofinancingactivities57838,045,248.871,405,111,664.26
Totalcashoutflowsfromfinancingactivities1,841,466,955.532,121,588,316.14
Netcashflowsfromfinancingactivities(806,011,505.39)(1,197,318,438.51)

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteVForthesixmonthsended30June2021Forthesixmonthsended30June2020
4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS392,002.63(47,935.97)
5.NETINCREASE/DECREASEINCASHANDCASHEQUIVALENTS58132,492,959.44(425,509,148.00)
Add:Cashandcashequivalentsatbeginningoftheyear5,405,113,257.998,426,071,170.16
6.CASHANDCASHEQUIVALENTSATENDOFYEAR585,537,606,217.438,000,562,022.16

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET

Asat30June2021(ExpressedinRenminbiYuan)

ASSETSNoteXIV30June202131December2020
Currentassets
Cashandbankbalances3,365,069,497.523,020,909,473.71
Notesreceivable64,759,826.0130,984,449.44
Accountsreceivable1701,273,128.58609,575,301.13
Receivablesfinancing2,436,398.0130,248,631.32
Advancestosuppliers4,566,924.776,722,204.59
Otherreceivables23,467,427,719.163,562,309,346.07
Inventories189,783,318.68172,275,777.63
CurrentAssets103,944.56139,154.54
Othercurrentassets39,482.3839,482.38
Totalcurrentassets7,795,460,239.677,433,203,820.81
Non-currentassets
Long-termequityinvestments38,014,254,485.097,873,668,245.16
Othernon-currentfinancialassets117,974,908.51120,972,350.24
Investmentproperties1,436,098.781,452,132.04
Fixedassets12,027,831.9813,279,902.76
Right-of-useassets4,581,076.345,142,755.88
Intangibleassets5,801,168.944,622,268.00
Long-termprepaidexpenses4,189,589.434,335,802.92
Deferredtaxassets9,245,324.819,025,057.52
Othernon-currentassets36,250,241.8412,967,715.50
Totalnon-currentassets8,205,760,725.728,045,466,230.02
Totalassets16,001,220,965.3915,478,670,050.83

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDSHAREHOLDERS’EQUITY30June202131December2020
Currentliabilities
Short-termborrowings878,608,520.99157,892,942.24
Notespayable393,434,370.38756,364,719.49
Accountspayable507,406,947.28407,275,713.49
Contractliabilities8,566,647.981,807,562.61
Employeebenefitspayable34,107,984.2236,672,344.48
Taxpayables16,253,302.5613,975,905.04
Otherpayables2,720,704,209.773,167,152,583.28
Non-currentliabilitiesduewithinoneyear1,078,862.941,056,120.58
Othercurrentliabilities1,434,414.00636,200.63
Totalcurrentliabilities4,561,595,260.124,542,834,091.84
Non-currentliabilities
Long-termborrowings31,633,794.4431,637,173.89
Leaseliabilities3,909,950.014,455,967.97
Long-termpayables800,000.00800,000.00
Deferredincome603,137.94827,658.18
Othernon-currentliabilities22,866,538.5811,042.52
Totalnon-currentliabilities59,813,420.9737,731,842.56
Totalliabilities4,621,408,681.094,580,565,934.40

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYBALANCESHEET(Continued)

Asat30June2021(ExpressedinRenminbiYuan)

LIABILITIESANDSHAREHOLDERS’EQUITY30June202131December2020
Shareholders’equity
Sharecapital428,126,983.00428,126,983.00
Capitalsurplus4,467,530,563.304,467,991,431.59
Othercomprehensiveincome(63,178.42)(128,033.32)
Surplusreserve214,063,491.50214,063,491.50
Retainedearnings6,270,154,424.925,788,050,243.66
Totalshareholders’equity11,379,812,284.3010,898,104,116.43
Totalliabilitiesandshareholders’equity16,001,220,965.3915,478,670,050.83

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYINCOMESTATEMENTForthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

NoteXIVForthesixmonthsended30June2021Forthesixmonthsended30June2020
Operatingrevenue42,078,370,123.361,772,487,363.56
Less:Operatingcosts41,991,420,311.801,689,564,062.24
Taxesandsurcharges2,488,284.742,582,640.86
Sellingexpenses35,959,501.7331,376,377.04
Administrativeexpenses46,619,035.0943,060,479.75
Financecosts(55,486,414.78)(43,838,117.34)
Incl:Interestexpense27,864,903.2821,928,061.34
Interestincome83,409,776.8666,569,319.85
Add:Otherincomes1,931,159.58629,921.47
Investmentincome5780,364,601.71749,633,760.78
Incl:Investmentincomefromassociates157,696,473.52133,549,495.38
Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost(221,815.32)(1,526,968.25)
Creditimpairmentlosses(123,032.41)(976,022.96)
Impairmentlosses(281,770.77)(242,731.87)
Gainondisposalofassets80,996.38-
Operatingprofits839,341,359.27798,786,848.43
Add:Non-operatingincome408,885.121,596.77
Less:Non-operatingexpenses-52,122.72
Totalprofit839,750,244.39798,736,322.48
Less:Incometaxexpenses15,144,476.739,645,280.09
Netprofit824,605,767.66789,091,042.39
Profitorlossfromcontinuingoperations824,605,767.66789,091,042.39
Othercomprehensiveincome,netoftax64,854.90122,186.89
Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss64,854.90122,186.89
Othercomprehensiveincomeusingtheequitymethodthatwillbereclassifiedtoprofitorloss64,854.90122,186.89
Totalcomprehensiveincome824,670,622.56789,213,229.28

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYSTATEMENTOFCHANGESINEQUITY

Forthesixmonthsended30June2021(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021SharecapitalCapitalsurplusOthercomprehensiveincomeSurplusreserveRetainedearningsTotalequity
I.Balanceatendofprioryear428,126,983.004,467,991,431.59(128,033.32)214,063,491.505,788,050,243.6610,898,104,116.43
II.Changesfortheyear-(460,868.29)64,854.90-482,104,181.26481,708,167.87
(1)Totalcomprehensiveincome--64,854.90-824,605,767.66824,670,622.56
(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.Balanceatendofyear428,126,983.004,467,530,563.30(63,178.42)214,063,491.506,270,154,424.9211,379,812,284.30

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITY(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2020SharecapitalCapitalsurplusOthercomprehensiveincomeSurplusreserveRetainedearningsTotalequity
I.Balanceatendofprioryear428,126,983.004,468,385,307.32(133,366.19)214,063,491.504,996,184,257.3410,106,626,672.97
II.Changesfortheyear-14,135.44122,186.89-532,214,852.59532,351,174.92
(1)Totalcomprehensiveincome--122,186.89-789,091,042.39789,213,229.28
(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.Balanceatendofyear428,126,983.004,468,399,442.76(11,179.30)214,063,491.505,528,399,109.9310,638,977,847.89

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENTForthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021Forthesixmonthsended30June2020

1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceivedfromsalesofgoodandthe

renderingofservices

Cashreceivedfromsalesofgoodandtherenderingofservices2,051,451,080.041,959,922,054.30
Othercashreceiptsrelatingtooperatingactivities31,548,087.0356,400,693.21
Totalcashinflowsfromoperatingactivities2,082,999,167.072,016,322,747.51
Cashpaymentsforgoodsandservices1,882,952,590.621,808,113,785.36
Cashpaymentstoandonbehalfofemployees61,431,053.3756,731,764.12
Paymentsofalltypesoftaxesandsurcharges36,319,473.8234,728,524.87
Othercashpaymentsrelatingtooperatingactivities11,443,446.2236,411,653.42
Totalcashoutflowsfromoperatingactivities1,992,146,564.031,935,985,727.77
Netcashflowsfromoperatingactivities90,852,603.0480,337,019.74

2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments

Cashreceiptsfromreturnsofinvestments2,997,441.7332,664,096.76
Cashreceiptsfromreturnsoninvestments214,065,210.12252,042,116.93
Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets339,163.00-
Othercashreceiptsrelatingtoinvestingactivities2,324,825,373.521,575,127,297.73
Totalcashinflowsfrominvestingactivities2,542,227,188.371,859,833,511.42
Cashpaymentsforacquisitionoffixedassets,intangibleassetsandotherlong-termassets2,302,398.2310,386,641.64
Othercashpaymentsrelatingtoinvestingactivities2,155,040,000.001,309,671,874.11
Totalcashoutflowsfrominvestingactivities2,157,342,398.231,320,058,515.75
Netcashflowsfrominvestingactivities384,884,790.14539,774,995.67

Theaccompanyingnotesformanintegralpartofthesefinancialstatements

COMPANYCASHFLOWSTATEMENT(Continued)

Forthesixmonthsended30June2021

(ExpressedinRenminbiYuan)

Forthesixmonthsended30June2021Forthesixmonthsended30June2020

3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceiptsfromborrowings

Cashreceiptsfromborrowings280,000,000.0032,264,821.52
Othercashreceiptsrelatingtofinancingactivities18,653,623,031.3316,113,679,647.75
Totalcashinflowsfromfinancingactivities18,933,623,031.3316,145,944,469.27
Cashrepaymentsfordebts30,164,821.5243,700,000.00
Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses363,151,913.01272,655,694.83
Othercashreceiptsrelatingtofinancingactivities18,673,121,608.9915,582,101,156.66
Totalcashoutflowsfromfinancingactivities19,066,438,343.5215,898,456,851.49
Netcashflowsfromfinancingactivities(132,815,312.19)247,487,617.78
4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS392,002.63(47,935.97)
5.NETINCREASEINCASHANDCASHEQUIVALENTS343,314,083.62867,551,697.22
Add:Cashandcashequivalentsatbeginningoftheyear3,020,909,473.712,894,333,956.38
6.CASHANDCASHEQUIVALENTSATENDOFYEAR3,364,223,557.333,761,885,653.60

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.

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

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

(9)FinancialinstrumentsAfinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.RecognitionandderecognitionTheGrouprecognisesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.

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(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.

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(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.

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(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.

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(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.

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(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”.

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(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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(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:

EstimatedusefullivesEstimatedresidualvalueAnnualdepreciation(amortization)rates
BuildingsandConstructions5-35years0-5%2.71-19.00%
Landuserights40-50yearsorNofixedusefullife-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:

CategoriesUsefullives
LanduserightsBetweentheapprovedusefulperiodandtheCompany’soperatingperiod
Software3-10years
TrademarksandBranduserights10yearsorNofixedlife
Distributionnetwork10-20years
Franchisingrights10years
Favorableleases16-20years

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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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.

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

IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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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IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)

(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)

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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:

CategoriesTaxbaseTaxrate
Valueaddedtax(“VAT”)Taxablevalueaddedamount(TaxpayableiscalculatedbyusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod)1%,3%,5%,6%,9%,13%
CitymaintenanceandconstructiontaxAmountofVAT5%or7%
Corporateincometax(“CIT”)Taxableincome15%,20%or25%
EducationalsurchargeAmountofVAT3%
LocaleducationalsurchargeAmountofVAT2%

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

30June202131December2020
Cashonhand4,898,795.546,707,125.90
Cashatbanks5,533,553,362.085,398,406,132.09
Cashandcashequivalent5,532,707,421.895,398,406,132.09
Undueinterestreceivable(Note1)845,940.19-
Othermonetaryfunds(Note2)338,186,269.94593,091,037.88
5,876,638,427.565,998,204,295.87

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

30June202131December2020
Commercialacceptancebills606,070,192.39622,115,477.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

2.Notesreceivable(Continued)

Thecarryingamountofnotesreceivablethataffectedthechangesinprovisionthisyearisasfollows:

30June2021

30June202131December2020
CarryingamountBaddebtprovisionsBookValueCarryingamountBaddebtprovisionsBookValue
AmountProportionAmountProportionAmountProportionAmountProportion
Itemsforwhichprovisionforbaddebtsisrecognisedindividually10,301,666.471.70%585,955.985.69%9,715,710.4927,634,855.484.43%1,479,520.325.35%26,155,335.16
Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics)596,354,481.9098.30%--596,354,481.90595,960,141.8895.57%--595,960,141.88
606,656,148.37100.00%585,955.980.10%606,070,192.39623,594,997.36100.00%1,479,520.320.24%622,115,477.04

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

VNotestotheconsolidatedfinancialstatements(Continued)

2.Notesreceivable(Continued)

On30June2021,notesreceivablethatareindividuallyassessedforprovisionsareasfollows:

Carryingamount

CarryingamountBaddebtprovisionExpectedcreditlossrateAssessmentforimpairment
ClientA723,189.592,972.460.41%Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofcollection.
ClientB9,578,476.88582,983.526.09%Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofcollection.
10,301,666.47585,955.98

Provisionforbaddebtsinthecurrentperiodasfollows:

Currentchangeamount

Currentchangeamount
OpeningbalanceProvisionReversalintheyearWrite-offintheyearOthersClosingbalance
Individualprovisionforbaddebts1,479,520.32-(893,564.34)--585,955.98
1,479,520.32-(893,564.34)--585,955.98
ReceivablesfinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2021areasfollows:
30June2021
DerecognisedNotderecognised
Commercialacceptancebills-125,089.80

Attheendoftheperiod,thecompanytransferredtheacceptancenotestoaccountsreceivableduetothedrawer'sfailuretoperformthecontract:

Amounttransferredto

accountsreceivableattheendoftheperiod

Amounttransferredto

accountsreceivableattheendoftheperiodCommercialacceptancebills

Commercialacceptancebills2,090,087.17

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

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable

(1)Theaccountsreceivablebycategory

30June2021

30June202131December2020
GrosscarryingamountProvisionforbaddebtGrosscarryingvalueGrosscarryingamountProvisionforbaddebtGrosscarryingvalue
AmountProportionAmountProportionAmountProportionAmountProportion
Itemsforwhichprovisionforbaddebtisrecognizedseparately1,017,692,611.965.69%(29,993,339.31)2.95%987,699,272.65674,370,776.754.85%(29,223,931.45)4.33%645,146,845.30
Inculdes:
Itemsforwhichprovisionforbaddebtisrecognizedbygroup16,864,163,256.2194.31%(90,686,079.61)0.54%16,773,477,176.6013,218,113,690.6095.15%(63,289,521.68)0.48%13,154,824,168.92
Includes:
17,881,855,868.17100.00%(120,679,418.92)0.67%17,761,176,449.2513,892,484,467.35100.00%(92,513,453.13)0.67%13,799,971,014.22

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

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

(1)TheaccountsreceivablebycategoryAccountsreceivablethatareindividuallyassessedforprovisions

Accountsreceivablethatareindividuallyassessedforprovisions
30June2021
CarryingamountBaddebtprovisionProportionAssessmentforimpairment
Receivableofmedicalinsurance514,818,583.40(6,606,210.91)1.28%Thereceivableofmedicalinsurancehaslower-tierdefaultrisk.
ClientA11,559,178.29(11,559,178.29)100.00%Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficultiesandrelatedtomultiplelawsuits,iswithlower-tierrecoverability.
ClientB2,447,976.74(2,447,976.74)100.00%Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring.
ClientC2,365,253.03(2,365,253.03)100.00%Debtorhadirregularoperationsofsubjecttoseriousfinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withhighlyriskofgoingbankruptcyorfinancialrestructuring.
Others486,501,620.50(7,014,720.34)1.44%Partofthereceivabletakeslongerthanusualtorecover,andhasriskofrecoverability.
1,017,692,611.96(29,993,339.31)-
Provisionforbaddebtsbyportfolio:
30June2021
CarryingamountBaddebtprovisionAccrualproportion
Combinationbycreditriskcharacteristics16,864,163,256.2190,686,079.610.54%

Provisionforbaddebtsofaccountsreceivableaccordingtothegeneralmodelofexpectedcreditloss

30June2021

30June2021
EstimateddefaultamountExpectedcreditlossinentirelifetimeExpectedcreditlossrate
Within1year16,312,880,752.43(40,974,307.84)0.25%
1to2years511,922,099.65(34,341,536.99)6.71%
2to3years27,850,847.18(7,831,498.28)28.12%
Over3years11,509,556.95(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
Within1year17,299,413,843.64
1to2years515,740,902.78
2to3years36,094,871.65
Over3years30,606,250.10

(2)Changesinbaddebtprovision,recoveryorreverse

Baddebtprovisionforthecurrentperiod

17,881,855,868.17

Openingbalance

OpeningbalanceAmountchangesincurrentperiodClosingbalance
IncreasesReversalwrite-offIncreasesinmerger
Accountsreceivablebaddebtprovision92,513,453.1338,699,564.83(10,675,833.06)(35,935.36)178,169.38120,679,418.92

ImportantrecoveredorreverseditemsofprovisionforindividuallyassessedbaddebtsfromJanuarytoJune2021arelistedbelow:

Recoveredorreversedamount

RecoveredorreversedamountMethodofrecoveryorreversion
ClientA62,252.15Paymentcollection
ClientB25,278.00Paymentcollection
ClientC19,152.28Paymentcollection

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

3.Accountsreceivable(Continued)

(3)Accountsreceivableactuallywrittenoffinthecurrentperiod

ProjectWriteoffamount
ClientA35,935.36
35,935.36

(4)Thetopfiveaccountsreceivableanalysedbycustomer

Amount%ofthetotalaccountsreceivableBaddebtprovisionamount
Top1Accountreceivable250,098,236.841.40%(920,455.72)
Top2Accountreceivable248,454,363.201.39%(1,958,560.00)
Top3Accountreceivable209,855,263.241.17%(1,432,489.42)
Top4Accountreceivable184,205,023.091.03%(1,592,971.29)
Top5Accountreceivable161,208,692.820.90%(426,533.84)
1,053,821,579.195.89%(6,331,010.27)

(5)Accountsreceivablederecognizedduetothefinancialassetstransferred

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

4.Receivablefinancing

30June202131December2020
Bankacceptancebills345,906,887.551,404,987,700.38

ReceivablefinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat30June2021

30June2021

30June2021Derecognised

DerecognisedNotDerecognised
Bankacceptancebills1,841,760,515.5620,070,999.69

5.Advancestosuppliers

(1)Theagingofadvancestosuppliers
30June202131December2020
Amount%oftotalbalanceAmount%oftotalbalance
Within1year611,349,475.0999.31%480,215,111.4299.98%
1to2years4,253,441.220.69%42,225.290.01%
2to3years--56,238.000.01%
615,602,916.31100.00%480,313,574.71100.00%

Theillustrationofthereasonswhyadvancepaymentswithamorethanone-yearagingwhiletheamountsaresignificantnotsettledintime:

Nil.(2)

(2)Thetopfiveadvancestosuppliersbycustomeron30June2021
AmountProportionoftotalbalance
Totalamountoftopfiveadvancestosuppliers217,538,246.1335.34%

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables

30June202131December2020
Otherreceivables662,274,841.26535,228,747.69

(1)Otherreceivables(a)Categoryofotherreceivablesbynature

(a)Categoryofotherreceivablesbynature30June2021

30June202131December2020
Deposits294,986,764.47287,130,364.44
Receivableofpricereductioncompensationandpurchasingrebates141,495,787.0285,263,225.16
Receivableofthepharmaceuticalelectronictradingplatform49,995,673.2060,267,511.03
Entrustedborrowings46,334,222.2446,334,222.24
Pettycashadvancetoemployees52,673,098.7022,994,684.93
Receivableofequitytransactions8,980,000.008,980,000.00
Receivableduefromrelatedparties23,094,951.862,867,594.20
Others115,368,379.0590,580,362.96
732,928,876.54604,417,964.96

(b)Changesinbaddebtprovision

Stage1

Stage1Stage2Stage3
BaddebtExpectedcreditlossesoverthenext12monthsEntirelifetimeexpectedcreditlosses(Nocreditimpairmentoccurred)Entirelifetimeexpectedcreditlosses(Creditimpairmentoccurred)Total
Balanceat1January2021-7,305,149.9061,884,067.3769,189,217.27
Balanceat1January2021duringtheperiod
Provisionsduringtheperiod-2,441,341.87171,144.992,612,486.86
Reversalduringtheperiod-(1,146,204.24)(1,464.61)(1,147,668.85)
Balanceat30June2021-8,600,287.5362,053,747.7570,654,035.28

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

6.Otherreceivables(Continued)

Theaginganalysisofotherreceivableswasasfollows:

30June2021Within1year

Within1year592,791,636.86
1to2years57,692,718.34
2to3years11,332,912.33
Over3years71,111,609.01

732,928,876.54(c)Changesinbaddebtprovision,recoveryorreverse

(c)Changesinbaddebtprovision,recoveryorreverseProvisionforbaddebtsinthecurrentperiodasfollows:

Provisionforbaddebtsinthecurrentperiodasfollows:

Currentchangeamount

Currentchangeamount
OpeningbalanceProvisionReversalintheyearWrite-offintheyearOtherClosingbalance
Provisionforimpairmentofotherreceivables69,189,217.272,612,486.86(1,147,668.85)--70,654,035.28
69,189,217.272,612,486.86(1,147,668.85)--70,654,035.28

(d)Thetop5partiesthatowedthelargestamountsofotherreceivablebalances

Nature

NatureAmountAge%oftotalamountProvisionofbaddebt
SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.(Note1)Entrustedborrowings46,334,222.24Over3years6.32%46,334,222.24
GuangdongPharmaceuticalelectronictradingplatformPharmaceuticaltradingplatformrepaymentnotyetcleared36,837,497.58Within1year5.03%-
ShenzhenAdministrationofsocialinsurancefundDeposit20,029,963.00Within1year2.73%-
TCM-IntegratedCancerCenterofSouthernMedicalUniversityDepositoflogisticsextensionservicesproject20,000,000.00Over3years2.73%-
BayerHealthcareCo.Ltd.Purchaserebatesreceivableandpricereductioncompensation16,117,671.62Within1year2.20%-
139,319,354.4419.01%46,334,222.24

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

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

7.Inventories

(1)Inventoriesbycategory
30June202131December2020
BookvalueProvisionfordeclinesinvalueofinventoriesandimpairmentofcontractperformancecostsNetbookvalueBookvalueProvisionfordeclinesinvalueofinventoriesorimpairmentofcontractperformancecostsNetbookvalue
Rawmaterials890,219.51-890,219.511,959,948.73-1,959,948.73
Workinprogress133,216.20-133,216.20244,341.19-244,341.19
Finishedgoods7,228,118,772.03(12,979,519.90)7,215,139,252.136,292,866,195.61(12,997,334.35)6,279,868,861.26
Lowcostconsumables3,495,930.78-3,495,930.782,937,523.28-2,937,523.28
7,232,638,138.52(12,979,519.90)7,219,658,618.626,298,008,008.81(12,997,334.35)6,285,010,674.46
(2)Provisionfordeclinesinvalueofinventoriesandimpairmentofcontractperformancecosts
31December2020IncreasesDecreases30June2021
ProvisionAdditionduetocombinationReversalorwrite-offOthers
Finishedgoods12,997,334.355,022,800.14314,857.50(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

9.31December202131December2020
BookValueProvisionNetBookValueBookValueProvisionNetBookValue
Medicaldevicesandequipmentguaranteefunds17,144,247.2578,141.7217,066,105.5315,195,530.95-17,799.3115,177,731.64-

Anaginganalysisofcontractassetswithprovisionforimpairmentareasfollows:

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

30June2021
EstimateddefaultamountExpectedcreditlossinentirelifetimeExpectedcreditlossrate
Within1year17,144,247.2578,141.720.46%

Changesinprovisionforcontractassetsarepresentedasfollows:

30June2021
ProjectProvisionincurrentperiodReversalincurrentperiodwriteofffReason
Provisionforimpairmentofcontractassets60,622.700(280.29)-Provisionforbaddebtsofcontractassetsshallbemadeaccordingtoexpectedcreditlosses

9.Othercurrentassets

30June202131December2020
InputVATtobecredited95,822,907.79114,251,111.76
Corporateincometaxtobededucted5,264,487.905,981,268.15
Others498,534.36850,483.54
101,585,930.05121,082,863.45

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

10.Long-termequityinvestments

Investee31December2020Changesincurrentperiod30June2021Provisionforimpairment
ProfitoflossunderequitymethodOthercomprehensiveincomeadjustmentOtherchangesinequityCashdividenddeclaredbyinvestee
Associates
ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”)(a)322,696,745.8734,596,706.61---357,293,452.48-
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.(“ShanghaiBeiyi”)(b)11,190,188.07749,788.76---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)425,557,825.1128,056,303.69---453,614,128.80-
ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.(“ZhijunTrade”)(i)10,408,675.1864,801.68---10,473,476.86-
SinopharmGroupZhijun(Shenzhen)PingShanPharmaceuticalCo.,Ltd.(“ZhijunPingshan”)(i)176,566,795.9025,603,869.60---202,170,665.50-
ShanghaiShyndecPharmaceuticalCo.,Ltd,(“SinopharmShyndec”)(i)1,323,760,775.5269,374,791.9464,854.90(460,868.29)(16,714,220.20)1,376,025,333.87-
2,287,019,627.99157,696,397.8164,854.90(460,868.29)(16,714,220.20)2,427,605,792.212,253,917.84

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

30June202131December2020
SinopharmHealthOnlineCo.,Ltd.67,056,227.4067,056,227.40
SinopharmGuodaHubeiCo.,Ltd.18,279,788.5918,279,788.59
ShanghaiGuodaShuguangPharmacyCo.,Ltd.8,242,076.028,242,076.02
ShanghaiGuorenPharmacyCo.,Ltd.5,493,260.455,493,260.45
HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd.416,987.82416,987.82
99,488,340.2899,488,340.28

单位:元

RecognizeddividendincomeAccumulatedprofitsAccumulatedLossAmounttransferredfromothercomprehensiveincometoretainedearningsReasonsdesignatedtobemeasuredatfairvaluewithchangesincludedinothercomprehensiveincomeReasonsfortransferofothercomprehensiveincometoretainedearnings
SinopharmHealthOnlineCo.,Ltd.-55,056,227.40--Nontradableequityinstruments
SinopharmGuodaHubeiCo.,Ltd.2,280,159.5017,279,788.59--Nontradableequityinstruments
ShanghaiGuodaShuguangPharmacyCo.,Ltd.50,000.007,971,316.02--Nontradableequityinstruments
ShanghaiGuorenPharmacyCo.,Ltd.-5,393,260.45--Nontradableequityinstruments
HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd.-101,987.82--Nontradableequityinstruments
2,330,159.5085,802,580.28--

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

12.Othernon-currentfinancialassets

30June202131December2020
Financialassetmeasuredatfairvaluethroughcurrentprofitorloss117,974,908.51120,972,350.24

.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

13.InvestmentpropertiesSubsequentmeasurementunderthecostmodel:

BuildingsandconstructionsLanduserightTotal
Originalcost
Openingbalance225,645,845.7820,988,818.44246,634,664.22
Increaseamountincurrentperiod1,137,337.42-1,137,337.42
Purchase---
Transferfrominventories\fixedassets\constructioninprogress1,137,337.42-1,137,337.42
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)
Closingbalance222,902,007.2720,147,498.83243,049,506.10
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)
Decreaseamountincurrentperiod2,589,746.83235,490.602,825,237.43
Transfertointangibleassets-235,490.60235,490.60
Transfertofixedassets2,589,746.83-2,589,746.83
Closingbalance(110,593,441.21)7,766,934.18(118,360,375.39)
Provisionforimpairment
OpeningbalanceandClosingbalance(1,300,000.00)-(1,300,000.00)
Carryingamount
Atendoftheperiod111,008,566.0612,380,564.65123,389,130.71
Atbeginningoftheperiod114,369,466.5813,074,913.36127,444,379.94

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets

30June202131December2020
Fixedassets840,386,519.64854,191,083.27
(1)Conditionoffixedassets
BuildingsandconstructionsMachineryandequipmentMotorvehiclesOfficeequipmentsElectronicequipmentsTotal
Originalcost
Openingbalance704,639,396.43305,450,662.6496,751,717.47365,642,213.00121,068,984.001,593,552,973.54
Increaseamountincurrentperiod4,138,624.7014,781,603.5010,636,685.3316,626,307.1725,827,199.0472,010,419.74
Purchase257,448.7712,411,677.509,041,665.5514,689,654.3523,670,703.5560,071,149.72
Transferfromconstructioninprogress-2,194,159.00---2,194,159.00
TransferfromInvestmentproperties3,881,175.93----3,881,175.93
Businesscombinations-175,767.001,595,019.781,936,652.822,156,495.495,863,935.09
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)
Closingbalance707,407,020.71319,663,665.93104,455,524.07379,314,689.74142,506,542.451,653,347,442.90

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

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets(Continued)

(1)Conditionoffixedassets(Continued)

Buildings

BuildingsMachineryandequipmentMotorvehiclesOfficeequipmentsElectronicequipmentsTotal
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)
Decreaseamountincurrentperiod418,887.13427,677.742,364,303.931,555,286.722,626,161.347,392,316.86
Disposalorretirement22,815.68427,677.742,364,303.931,555,286.722,626,161.346,996,245.41
Transfertoinvestmentproperties396,071.45----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
Atendofperiod452,977,836.29145,435,791.8143,726,500.03147,579,724.7250,666,666.79840,386,519.64
Atbeginningoftheperiod466,215,405.38157,208,507.4038,416,446.16149,074,073.4043,276,650.93854,191,083.27

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

VNotestotheconsolidatedfinancialstatements(Continued)

14.Fixedassets(Continued)

(2)ConditionofFixedassetsfallingtoaccomplishcertificationoftitleBookvalue

BookvalueReasonfornotobtainingcertificationoftitle
Buildingsandconstructions25,199,513.22Asat30June2021,theCompanyhasnotyetobtainedthecertificationoftitleforNo.13JingxingNorthStreet,TiexiDistrict,Shenyang.Thetransferor,theState-ownedAssetsSupervisionandAdministrationCommission,wasstillprocessingthecaseandhadprovidedarelevantnotification.
Buildingsandconstructions40,072,822.06Asat30June2021,theCompanyhasnotyetobtainedthecertificationoftitleforNo.53NanshizhongStreet,TiexiDistrict,Shenyang.Thetransferor,theState-ownedAssetsSupervisionandAdministrationCommission,wasstillprocessingthecaseandhadprovidedarelevantnotification.
Buildingsandconstructions536,550.04Asat30June2021,theconstructionareaisgreaterthantheapprovedarea,theGroupcannothandlethehousingpropertyrightcertificatelocatedat31YiheStreet,KaiyuaninTielingCity,KaiyuanCityPlanningBureauhadprovidedaconstructionprojectcompletionplanningacceptancecertificate.
Buildingsandconstructions119,844.81On30June2021,duetotheneedforself-usestorage,theGrouphasbuiltitsownsimplewarehouselocatedat2BaiyuRoad,SujiatunDistrict,Shenyang.TheGroupisunabletoobtainahometitlecertificateforthepropertythere..

15.Constructioninprogress

30June202131December2020
Constructioninprogress64,636,735.9346,631,190.23
(1)Conditionofconstructioninprogress
30June202131December2020
CarryingbalanceImpairmentCarryingamountCarryingbalanceImpairmentCarryingamount
Warehouseimprovementproject6,015,123.20-6,015,123.202,357,739.84-2,357,739.84
Newofficebuildingproject2,449,885.09-2,449,885.092,654,403.71-2,654,403.71
Supplychainextensionproject14,289,469.53-14,289,469.5312,248,729.81-12,248,729.81
Softwareproject28,344,537.25-28,344,537.2519,443,779.83-19,443,779.83
Otherconstructionprojects13,537,720.86-13,537,720.869,926,537.04-9,926,537.04
64,636,735.93-64,636,735.9346,631,190.23-46,631,190.23

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

15.Constructioninprogress(Continued)

(2)Changesofsignificantconstructioninprogressincurrentperiod
ProjectnameBudgetOpeningbalanceIncreaseDecreaseClosingbalanceProportionofinvestmenttobudgetSourceoffunds
TransferredtofixedassetsTransferredtoLong-termprepaidexpenses
Warehouseimprovementproject13,241,063.702,357,739.849,311,593.332,194,159.003,460,050.976,015,123.2093.08%Owncapital
NewofficebuildingProject3,600,282.072,654,403.71--204,518.622,449,885.0910.54%Owncapital
Supplychainextensionproject24,311,152.0012,248,729.812,040,739.72--14,289,469.5358.22%Owncapital
Softwareproject113,000,000.0019,443,779.838,900,757.42--28,344,537.2525.08%Owncapital
Otherconstructionprojects225,408,891.749,926,537.0420,559,244.54-16,948,060.7213,537,720.8613.17%Owncapital
379,561,389.5146,631,190.2340,812,335.012,194,159.0020,612,630.3164,636,735.93

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

VNotestotheconsolidatedfinancialstatements(Continued)

16.Right-of-useassets

BuildingsandconstructionsMachinery,transportandofficeequipmentOthersTotal
Originalcost
Openingbalance3,642,726,568.576,617,052.552,418,809.353,651,762,430.47
Increaseamountincurrentperiod722,812,718.72255,241.57-723,067,960.29
Incl:Businesscombinationsnotundercommoncontrol41,709,665.65--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)
Closingbalance4,095,827,051.985,482,979.002,418,809.354,103,728,840.33
Accumulateddepreciation
Openingbalance1,289,526,014.835,092,290.96191,731.691,294,810,037.48
Increaseamountincurrentperiod493,418,631.21166,716.1647,473.92493,632,821.29
Provision493,418,631.21166,716.1647,473.92493,632,821.29
Decreaseamountincurrentperiod(207,845,002.04)(743,191.11)-(208,588,193.15)
Disposal(207,845,002.04)(743,191.11)-(208,588,193.15)
Closingbalance1,575,099,644.004,515,816.01239,205.611,579,854,665.62
Carryingamount
Atendoftheperiod2,520,727,407.98967,162.992,179,603.742,523,874,174.71
Atbeginningoftheperiod2,353,200,553.741,524,761.592,227,077.662,356,952,392.99

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

17.Intangibleassets

LanduserightsSoftwareTrademarksandbrandsuserightsFavorableleasesDistributionnetworkFranchiseTotal
Originalcost
Openingbalance88,694,377.76198,298,230.20282,036,925.12127,486,000.00283,573,678.24710,000.00980,799,211.32
Increaseamountincurrentperiod841,319.616,604,973.4640,440,000.00---47,886,293.07
Purchases-6,383,557.95----6,383,557.95
Businesscombinationsnotundercommoncontrol-221,415.5140,440,000.00---40,661,415.51
Transferfrominvestmentproperties841,319.61-----841,319.61
-
Closingbalance89,535,697.37204,903,203.66322,476,925.12127,486,000.00283,573,678.24710,000.001,028,685,504.39
-
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)

LanduserightsSoftwareTrademarksandbrandsuserightsFavorableleasesDistributionnetworkFranchiseTotal
Provisionforimpairment
Openingbalance-------
Closingbalance-------
Carryingamount
Atendoftheyear57,741,676.9582,214,316.93310,865,292.8086,064,495.27214,606,742.23-751,492,524.18
-
Atbeginningoftheyear58,029,516.7987,137,399.19276,976,141.3189,607,473.21222,594,648.90-734,345,179.40

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill

(1)OriginalBookValueofgoodwill

NamesoftheinvesteeormattersofforminggoodwillOpeningbalanceIncreaseduringthisperiodDecreaseduringthisperiodClosingbalance
MergerofholdingsnotundercommoncontrolBusinesscombinationsnotundercommoncontrol
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&Trade2,755,680.62---2,755,680.62
FoshanNanhai88,877,850.51---88,877,850.51
SinopharmHoldingZhuhaiCo.,Ltd.(“SinopharmZhuhai”)6,772,561.476,772,561.47
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)

NamesoftheinvesteeormattersofforminggoodwillOpeningbalanceIncreaseduringthisperiodDecreaseduringthisperiodClosingbalance
MergerofholdingsnotundercommoncontrolBusinesscombinationsnotundercommoncontrol
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
GuodaNeimenggu70,485,777.00---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.‘sStoreAcquisition13,420,000.00---13,420,000.00
BeijingGoldenElephantPharmacyMedicineChainCompanyLimited(“BeijingGoldenElephant”)64,140,124.36---64,140,124.36
GuodaTaishan26,826,120.55---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’er71,064,684.79---71,064,684.79
ShanghaiPudongNewAreaPharmaceuticalsCo.,Ltd.(“PudongPharmaceuticals”)65,978,042.6165,978,042.61
ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.520,836,246.17---520,836,246.17
ChengDafangPharmaceuticalGroupCo.,Ltd1,182,443,676.11---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
2,772,375,281.11152,157,935.5232,468,100.002,957,001,316.63

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

VNotestotheconsolidatedfinancialstatements(Continued)

18.Goodwill(Continued)

(2)Provisionofimpairmentloss

NamesoftheinvesteeormattersofforminggoodwillOpeningbalanceIncreaseDecreaseClosingbalance
GuodaQuanzhou25,000,000.00--25,000,000.00

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

Thecarryingvalueofgoodwillisapportionedaccordingtotheproportionofeachassetgrouporcombinationofassetgroupsatfairvalueofthetotalamountofgoodwillatfairvalue.Itisshownasfollows:

30June202131December2020
Pharmaceuticaldistribution152,865,497.03152,865,497.03
Pharmaceuticalretail2,779,135,819.602,594,509,784.08
2,932,001,316.632,747,375,281.11

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

PharmaceuticaldistributionPharmaceuticalretail
Revenuegrowthrateinthebudgetperiod1.79%-16.00%2.67%-16.43%
Sustainablegrowthrate3.00%3.00%
Grossmargin3.56%-6.40%12.40%-50.58%
Discountrate12.40%-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

OpeningbalanceAdditionsAmortizationOtherdecreaseClosingbalance
Fixedassetimprovementexpenditure336,895,157.1373,939,831.4563,049,121.271,789,848.54345,996,018.77
Acquisitionexpendituretoobtaintherighttooperate95,802,321.9570,780,659.8610,579,442.60-156,003,539.21
Others25,007,797.011,655,150.465,469,516.47-21,193,431.00
457,705,276.09146,375,641.7779,098,080.341,789,848.54523,192,988.98

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

20.Deferredtaxassets/liabilities

(1)Deferredtaxassetsbeforeoffseting
30June202131December2020
DeductibletemporarydifferencesDeferredtaxassetsDeductibletemporarydifferencesDeferredtaxassets
Provisionforimpairmentofassets196,487,679.4346,536,628.81170,577,875.5640,697,280.41
Deductibletaxloss32,245,677.798,061,419.4630,798,485.937,699,621.49
Impactofleasecriteria109,849,225.1227,234,338.9393,685,083.0922,420,179.23
Accruedexpenses108,024,144.5725,409,713.77113,445,282.3626,095,709.73
Memberbonuspoints61,049,011.9914,722,901.7559,179,220.9814,575,814.61
Accruedpayroll45,855,424.2210,861,893.4447,280,390.0811,210,512.95
Others20,119,732.624,832,303.9721,096,550.784,641,850.41
573,630,895.74137,659,200.13536,062,888.78127,340,968.83
(2)Deferredtaxliabilitiesbeforeoffseting
30June202131December2020
TaxabletemporarydifferencesDeferredtaxliabilitiesTaxabletemporarydifferencesDeferredtaxliabilities
Fairvalueadjustmentforbusinesscombinationnotinvolvingenterprisesundercommoncontrol716,667,762.07179,197,391.85713,703,864.68178,425,966.17
Changesinfairvalueoffinancialassetsthroughothercomprehensiveincome85,802,580.2821,450,645.0785,802,580.2821,450,645.07
One-timedeductionforfixedassetsunderfivemillionyuan123,264,042.4330,816,010.64126,722,799.3131,679,099.86
Divisionrestructuringassetstoassessvalue-addeddifferences16,029,854.964,007,463.7417,160,546.404,290,136.60
Others28,333,035.976,090,083.1725,205,927.865,297,761.98
970,097,275.71241,561,594.47968,595,718.53241,143,609.68

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

20.Deferredtaxassets/liabilities(Continued)

(3)Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachother:
30June202131December2020-
Deferredtaxassets/liabilities-NetTemporarydifferencesafterset-offDeferredtaxassets/liabilities-NetTemporarydifferencesafterset-off
Deferredtaxassets41,063,450.8096,595,749.3335,222,201.0292,118,767.81
Deferredtaxliabilities41,063,450.80200,498,143.6735,222,201.02205,921,408.66
(4)Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognizedasdeferredtaxassetsarepresentedasfollows:
30June202131December2020
Deductibletemporarydifferences11,920,797.799,435,555.39
Deductibleloss61,373,403.2561,373,403.25
73,294,201.0470,808,958.64
(5)Theaforesaidunrecognizeddeductiblelosseswilldue:
30June202131December2020
20212,563,056.082,563,056.08
20227,261,117.977,261,117.97
202311,977,477.5611,977,477.56
202422,579,176.4422,579,176.44
202516,992,575.2016,992,575.20
61,373,403.2561,373,403.25

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

21.Othernon-currentassets

30June202131December2020
CarryingbalanceImpairmentCarryingamountCarryingbalanceImpairmentCarryingamount
Physicalassetsreservespecificallyauthorized331,870,456.97-331,870,456.97260,590,932.98-260,590,932.98
Securitydeposit100,326,250.00(70,000.00)100,256,250.00114,186,431.57-114,186,431.57
Prepaymentforprojectandequipment40,757,628.00-40,757,628.0024,809,091.30-24,809,091.30
Contractassets8,238,308.92(120,404.87)8,117,904.057,081,263.45(82,188.73)6,999,074.72
Other3,257,615.30-3,257,615.301,611,992.27-1,611,992.27
484,450,259.19(190,404.87)484,259,854.32408,279,711.57(82,188.73)408,197,522.84

22.Short-termborrowings

30June202131December2020
Creditborrowings4,632,933,904.391,612,187,020.12

23.Notespayable

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

30June202131December2020
Commercialacceptancebills93,061,594.9456,360,197.69
Bankacceptancebills6,687,363,494.237,463,805,077.00
6,780,425,089.177,520,165,274.69

At30June2021,thetotalamountofnotespayablethatwereduebutnotyetpaidwasnil(31December2020:nil).

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

24.Accountspayable

30June202131December2020
Paymentforgoods9,642,504,836.507,697,451,142.50

At30June2021,significantaccountspayableagedoveroneyearwasanalyzedbelow:

AmountReason
Paymentforgoods429,971,551.39Hasnotbeensettled

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

25.Receiptsinadvance

30June202131December2020
Advancedleasepayment14,868,097.9712,352,466.64

26.Contractliabilities

30June202131December2020
Contractliabilities316,827,151.78368,600,357.14

TheendingbalanceofcontractliabilitiesistheadvancepaymentsreceivedbytheGroup.AftertheGroupreceivestheadvancepaymentsbythecustomerforthesalesofgoods,itwillgenerallyperformtheperformanceobligationandrecognisetherevenuewithinabout6months.

27.Employeebenefitspayable

31December2020IncreaseDecrease30June2021
Short-termemployeebenefits(1)347,602,975.861,442,005,710.811,554,869,193.60234,739,493.07
Post-employmentbenefits(definedcontributionplan)(2)9,216,204.49135,235,733.49137,243,137.067,208,800.92
Terminationbenefits392,866.75560,719.50695,897.15257,689.10
357,212,047.101,577,802,163.801,692,808,227.81242,205,983.09

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

27.Employeebenefitspayable(Continued)

(1)Short-termemployeebenefits
31December2020IncreaseDecrease30June2021
Salaries,bonuses,allowancesandgrants330,233,181.611,259,235,407.051,376,555,529.89212,913,058.77
Staffwelfare1,469,381.0732,807,596.6733,096,433.741,180,544.00
Socialsecuritycontribution2,194,328.5274,031,911.0874,006,336.502,219,903.10
Incl:Medicalinsurance1,531,693.9568,900,758.2568,513,264.141,919,188.06
Workinjuryinsurance84,285.352,846,079.322,857,214.9773,149.70
Maternityinsurance578,349.222,285,073.512,635,857.39227,565.34
Housingfunds1,650,393.1952,281,928.0652,197,609.561,734,711.69
Laborunionfundsandemployeeeducationfunds11,183,869.7022,386,728.9220,702,330.3412,868,268.28
Othershort-termbenefits871,821.771,262,139.03(1,689,046.43)3,823,007.23
347,602,975.861,442,005,710.811,554,869,193.60234,739,493.07
(2)Definedcontributionplan
31December2020IncreaseDecrease30June2021
Basicpensioninsurance3,593,380.27128,854,477.21127,826,836.984,621,020.50
Unemploymentinsurance106,718.123,965,369.333,905,028.02167,059.43
Contributiontopensionfund5,516,106.102,415,886.955,511,272.062,420,720.99
9,216,204.49135,235,733.49137,243,137.067,208,800.92

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

28.Taxpayable

30June202131December2020
Value-addedtax75,280,000.02102,586,862.95
CorporateIncometaxes182,236,074.48173,016,908.47
Individualincometax7,083,305.636,790,402.61
Citymaintenanceandconstructionsurtax6,333,456.106,993,947.17
Stampduty7,697,463.218,243,076.57
Waterconservancyfund5,572,222.755,586,926.64
Educationalsurcharge5,131,997.405,254,608.43
Propertytax1,300,695.62664,697.78
Landusetax148,696.0454,028.60
Others7,417,676.887,675,689.94
298,201,588.13316,867,149.16

29.Otherpayables

30June202131December2020
Interestpayable16,255,309.7535,572,620.82
Dividendpayable7,911,748.366,389,320.96
Otherpayables1,507,731,959.761,557,204,939.36
1,531,899,017.871,599,166,881.14
(1)Interestpayable
30June202131December2020
Factoringinterestonaccountsreceivable16,255,309.7535,572,620.82

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

29.Otherpayables(Continued)

(2)Dividendpayable30June2021

30June202131December2020
ShanghaiFosunPharmaceutical(Group)Co.,Ltd.4,835,511.584,835,511.58
DividendpayabletoZhangZhenfang1,389,639.311,389,639.31
MeiluoPharmaceuticalCo.,Ltd.164,170.07164,170.07
LongfengDu526,506.14-
DongWang336,202.71-
HaimingLiu177,616.53-
GuozhuTang69,777.92-
XianchengLiu88,808.27-
ShaojunYan44,404.13-
HaiyuLiu38,060.69-
QinghuaWang126,868.95-
ZhanchengLiang114,182.06-
7,911,748.366,389,320.96

At30June2021and31December2020,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid.

(3)Otherpayables30June2021

30June202131December2020
Deposit484,838,817.90472,800,624.92
Payablesforfactoringprograms325,153,045.22576,523,284.81
Accruedexpenses210,959,892.77213,950,722.34
Equitypayables207,199,828.2538,702,372.01
Payablesforrentals95,120,391.9168,417,303.16
Payablesforconstructioninprogressandequipment44,723,287.8940,898,589.59
Payablestoindividuals26,098,245.6025,869,320.67
Collectionofothers20,055,565.0519,119,286.19
Payablesforlandtransferpayments12,597,500.0012,597,500.00
Temporaryloans11,198,533.0011,017,981.51
Payablestorelatedparties5,138,862.345,093,263.36
Others64,647,989.8372,214,690.80
1,507,731,959.761,557,204,939.36

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

29.Otherpayables(Continued)

At30June2021,significantotherpayablesover1yearare:

AmountpayableReasonforoutstanding
Equitypayable36,000,000.00Paymentconditionsnotmet
Deposits37,744,837.63Paymentconditionsnotmet
Accruedexpenses6,223,452.82Paymentconditionsnotmet
Payablesforlandtransferpayments12,597,500.00Paymentconditionsnotmet

30.Non-currentliabilitiesduewithin1year

92,565,790.4530June2021

30June202131December2020
Leaseliabilitiesduewithin1year798,170,618.10748,732,059.89

31.Othercurrentliabilities

30June202131December2020
Pre-collectedVAT20,997,225.6124,142,106.09
OutputVATtoberecognized1,435,222.36644,972.46
22,432,447.9724,787,078.55

32.Long-termborrowings

31December202131December2020
Creditloan30,000,000.00-
Entrustedloans31,633,794.4431,637,173.89-
61,633,794.4431,637,173.89

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

30June202131December2020
Leasepayment2,159,301,970.902,051,786,223.79
Less:Leaseliabilitiesduewithin1year798,170,618.10748,732,059.89
1,361,131,352.801,303,054,163.90

34.Long-termpayables

30June202131December2020
Payablesforspecificprojects6,938,189.006,938,189.00

Payablesforspecificprojects:

31December2020IncreaseDecrease30June2021Reasonsofderredincome
Specialfundsgrantedbygovernment(1)800,000.00--800,000.00Fundsgrantedbygovernment
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

30June202131December2020
Earlyretirementbenefitspayable1,262,000.001,319,000.00

36.Provisions

30June202131December2020
Pendinglitigationorarbitration(1)68,663,166.7968,808,166.79

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

VNotestotheconsolidatedfinancialstatements(Continued)

37.Deferredincome

OpeningbalanceIncreaseDecreaseClosingbalanceReasonsofdeferredincome
Governmentgrants89,610,262.617,520,212.935,962,539.8491,167,935.70Governmentgrant
VATAdditionaldeduction233,320.76835,816.61921,739.18147,398.19VATadditionaldeduction
89,843,583.378,356,029.546,884,279.0291,315,333.89

Asat30June2021,deferredincomefromgovernmentgrantsareasfollows:

Governmentgrants

program

GovernmentgrantsprogramOpeningbalanceAdditionAmountincludedinnon-operatingincomeAmountincludedinotherincomeOffsetcostamountincurrentperiodClosingbalanceAssetrelated/incomerelated
ResettlementCompensation(Note)70,158,624.05-1,349,204.28--68,809,419.77Assetrelated
Fundsfortheconstructionofamodernsupplychainsysteminthecentralcirculationfieldin20184,353,019.547,450,000.00-2,143,819.53-9,659,200.01-Assetrelated
LogisticsprojectNanningEconomicDevelopmentZoneconstructionsupportfund4,846,565.87--93,203.22-4,753,362.65Assetrelated
Guangzhoulogisticsstandardizationpilotproject1,722,518.87--273,123.42-1,449,395.45Assetrelated
ShenyangTiexiGovernmenthousingsubsidies1,325,001.32--40,561.32-1,284,440.00Assetrelated
Otherprojects7,204,532.9670,212.93-2,037,129.4525,498.625,212,117.82Asset/Incomerelated

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

VNotestotheconsolidatedfinancialstatements(Continued)

38.Othernon-currentliabilities

30June202131December2020
Governmentalmedicalreservefunds(1)600,009,111.26711,029,182.37
Productpromotionaccumulativepointsprogramme(2)30,824,503.2229,815,911.17
Other6,140.5317,896.05
630,839,755.01740,862,989.59
(1)Governmentalmedicalreservefundsarethefundsreceivedfromthenationalandlocalgovernmentsforpurchasingreservemedicalsupplies.(2)TheProductpromotionaccumulativepointsprogrammereferstothoseproduct-originatedaccumulativepointsthatremainmorethanoneyearsurplusbeforetheexpirationdate.

39.Sharecapital

Movementduringthecurrentyear31December2020

31December2020IssueofnewshareOthersSubtotal30June2021
Shares428,126,983.00---428,126,983.00

40.Capitalsurplus

31December2020IncreaseDecrease30June2021
Sharepremium2,118,174,787.27--2,118,174,787.27
Othercapitalsurplus2,254,329,266.45-(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
31December2020OccurrenceamountbeforetaxAttributabletoshareholdersofownersoftheparent30June2021
Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytoprofitorloss38,611,051.04--38,611,051.04
Incl:Changeinthefairvalueofotherequityinvestments38,611,051.04--38,611,051.04
Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss(128,033.32)64,854.9064,854.90(63,178.42)
Incl:Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss(128,033.32)64,854.9064,854.90(63,178.42)
38,483,017.7264,854.9064,854.9038,547,872.62

42.Surplusreserve

31December2020IncreaseDecrease30June2021
Statutorysurplusreserves214,063,491.50--214,063,491.50

43.Retainedearnings

30June202131December2020
Retainedearningsatbeginningofyearbeforeretrospectiveadjustmentandrestatement8,895,145,106.397,755,295,537.08
Theretrospectiveadjustmentandrestatement-(3,029,877.91)
Retainedearningsatbeginningofyearafterretrospectiveadjustmentandrestatement8,895,145,106.397,752,265,659.17
Add:Netprofitattributabletotheparent741,445,013.251,401,892,593.23
Less:Dividendpayableoncommonstock342,501,586.40256,876,189.80
Other-2,136,956.21
RetainedearningsonJune30,20209,294,088,533.248,895,145,106.39

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

Forthesixmonthsended30June2021Forthesixmonthsended30June2020
RevenueCostRevenueCost
Principaloperations32,841,264,479.5629,156,249,513.9626,944,450,698.0323,953,267,481.54
Otheroperations321,827,407.8360,587,687.11225,489,490.4917,762,237.90
33,163,091,887.3929,216,837,201.0727,169,940,188.5223,971,029,719.44
ClassificationHeadOfficePharmaceuticaldistributionPharmaceuticalretailEliminationbetweensegmentsTotal
Byproduct
Incl:
Pharmaceuticals-19,828,394,853.8510,676,855,504.22(499,204,175.96)30,006,046,182.11
Medicaldevicesanddisposables-2,076,206,193.67134,724,521.61-2,210,930,715.28
Diagnosticreagents-515,191,908.40--515,191,908.40
Medicalequipments-278,181,437.86--278,181,437.86
Others4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
Byarea
Incl:
China4,532,508.3722,809,753,652.9310,811,580,025.83(505,142,474.51)33,120,723,712.62
Bytypesofactivity
Incl:
Pharmaceuticaldistribution-21,697,696,043.601,958,602,731.53(499,204,175.96)23,157,094,599.17
Retailpharmacy-1,000,278,350.188,852,977,294.30-9,853,255,644.48
Others4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
Bycontractduration
Incl:
Atapointintime-22,697,974,393.7810,811,580,025.83(499,204,175.96)33,010,350,243.65
Overtime4,532,508.37111,779,259.15-(5,938,298.55)110,373,468.97
4,532,508.3722,809,753,652.9310,811,580,025.83(505,142,474.51)33,120,723,712.62

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

Forthesixmonthended30June2021Forthesixmonthended30June2020
Revenuefromcontractswithcustomers33,120,723,712.6227,139,718,273.17
Rentals42,368,174.7730,221,915.35
33,163,091,887.3927,169,940,188.52

45.Taxandsurcharges

Forthesixmonthended30June2021Forthesixmonthended30June2020
Citymaintenanceandconstructiontax27,877,507.4628,121,494.67
Educationalsurcharge20,257,170.1520,311,577.25
Propertytax4,224,163.722,492,284.79
Landtax768,836.09317,162.91
Vehicleandvesselusetax85,991.9672,575.73
Stampduty21,497,447.3717,140,178.76
Others1,278,737.831,050,035.21
75,989,854.5869,505,309.32

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

46.Sellingexpenses

Forthesixmonthended30June2021Forthesixmonthended30June2020
Employeespayrollandwelfarebenefits1,197,067,119.97904,925,594.87
Depreciationexpensesofright-of-useassets479,540,503.22387,380,924.52
Rentalexpenses117,046,188.5260,573,717.68
Technicalservicefee84,303,596.2145,620,729.98
Amortizationoflong-termdeferredexpenses69,802,526.3752,138,560.36
Depreciationexpenses56,762,708.3043,808,801.59
Transportationcharges52,564,735.7651,095,840.37
Utilities39,863,463.7334,081,779.59
Officeallowances35,013,829.0027,895,774.76
Storageexpenses25,614,256.0918,300,237.30
Promotionandmarketingexpenses18,804,920.9915,399,693.56
Propertymanagementfee16,975,156.9715,659,321.63
Entertainmentexpenses14,061,877.539,358,003.62
Marketdevelopmentfee8,168,582.424,517,975.19
Repairingfees7,118,061.327,147,598.96
Travelallowances2,939,453.781,845,288.42
Conferenceexpenses525,946.12292,483.51
Others81,312,603.4748,696,492.69
2,307,485,529.771,728,738,818.60

47.Administrativeexpenses

Forthesixmonthended30June2021Forthesixmonthended30June2020
Employeespayrollandwelfarebenefits360,049,901.79325,153,640.16
Depreciationexpenses17,675,510.9016,351,496.61
Rentalexpenses16,196,265.775,390,672.79
Officeallowances14,281,405.1912,677,148.40
Depreciationexpensesofright-of-useassets12,957,819.9410,925,364.40
Amortizationofintangibleassets11,402,009.798,991,474.97
Amortizationoflong-termdeferredexpenses8,283,676.966,808,445.06
Entertainmentexpenses7,342,000.004,596,522.19
Technicalservicefee6,691,393.4911,527,561.19
Propertymanagementfee4,749,071.863,089,556.70
Vehiclemanagementexpenses3,659,483.253,169,051.19
Travelallowances3,444,399.911,822,634.84
Utilities3,107,684.091,919,161.42
Repairingfees2,852,529.462,898,331.91
Agencyservicefee2,841,366.733,411,279.41
Promotionandmarketingexpenses304,402.822,180,552.03
Others16,698,014.7622,374,251.65
492,536,936.71443,287,144.92

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

48.Financecosts

Forthesixmonthended30June2021Forthesixmonthended30June2020
Interestexpenses147,057,897.99133,350,510.68
Less:Interestincome38,758,729.7865,512,550.22
Cashdiscount18,968,417.8120,153,456.44
Exchangesgain/(loss)(415,927.10)47,935.97
Others18,328,179.8517,581,389.63
107,243,003.1565,313,829.62

Abreakdownforinterestincomeisasfollows:

Forthesixmonthended30June2021Forthesixmonthended30June2020
Cash38,758,729.7865,512,550.22

49.Otherincomes

Forthesixmonthended30June2021Forthesixmonthended30June2020
Governmentgrantsrelatedtodailyoperatingactivities33,966,095.0125,786,877.95
VATreductionforsmall-scaletaxpayers11,566,085.358,383,678.31
VATadditionaldeduction929,058.98864,634.59
Taxationservicechargerefund788,376.92820,107.47
47,249,616.2635,855,298.32

50.Investmentincome

Forthesixmonthended30June2021Forthesixmonthended30June2020
Long-termequityinvestmentincomeundertheequitymethod157,696,397.81133,604,904.16
Dividendincomefromotherequityinvestmentsthatarestillheld2,330,159.50-
Investmentincomefromfinancialassetsatfairvaluethroughprofitorloss3,599,555.614,109,881.90
Investmentincomefromthederecognitionoffinancialassetsmeasuredatamortisedcost(7,039,046.60)(33,507,102.64)
Others998,665.84
156,587,066.32105,206,349.26

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

51.Creditimpairmentlosses

Forthesixmonthended30June2021Forthesixmonthended30June2020
Impairmentlossofotherreceivables(1,464,818.01)(1,401,731.20)
Impairmentlossofaccountsreceivable(28,023,731.77)(20,178,500.32)
Impairmentlossofnotesreceivables893,564.34-
Impairmentlossofothernon-currentfinancialassets(70,000.00)-
(28,664,985.44)(21,580,231.52)

52.Impairmentlosses

Forthesixmonthended30June2021Forthesixmonthended30June2020
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

Forthesixmonthended30June2021Forthesixmonthended30June2020
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

Forthesixmonthended30June2021Forthesixmonthended30June2020Amountclassifiedasnon-recurringprofitorloss
Governmentgrants1,349,204.281,349,204.281,349,204.28
Gainondisposalofnon-currentassets60,184.802,171.0160,184.80
Gainfromwritingofftheunnecessarypayment7,298,605.35199,266.477,298,605.35
Others3,785,326.013,669,338.463,789,726.01
12,493,320.445,219,980.2212,493,320.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

54.Non-operatingincome(Continued)

Governmentgrantsincludedincurrentperiodprofitorloss:

ProjectNameGovernmentDepartmentReasonsforGovernmentgrantsTypeAffectstheprofitorlossofthisyearSpecialsubsidyForthesixmonthsended30June2021Forthesixmonthsended30June2020Relatedtoasset/income
ResettlementCompensationofNo.7ZhongyaoRoadNanningEconomic&TechnologicalDevelopmentAreaManagementCommitteeSubsidySubsidiesfromlocalgovernmentforsupportpoliciessuchasattractinginvestmentYesNo1,349,204.281,349,204.28Assetrelated

55.Non-operatingexpenses

Forthesixmonthended30June2021Forthesixmonthended30June2020Amountclassifiedasnon-recurringprofitorloss
Donationexpenses158,990.50527,677.41158,990.50
Lossesarisingfromdamageandobsolescenceofnon-currentassets273,414.36373,790.44273,414.36
Penaltyexpenses1,220,928.37467,582.501,220,928.37
Others1,584,618.121,639,842.171,584,618.12
3,237,951.353,008,892.523,237,951.35

56.Incometaxexpenses

Forthesixmonthended30June2021Forthesixmonthended30June2020
Currentincometax248,326,505.55213,477,221.94
Deferredincometax(9,900,246.51)(3,370,457.59)
238,426,259.04210,106,764.35

Thereconciliationfromincometaxcalculatedbasedonapplicabletaxratesandtotalprofitpresentedintheconsolidatedfinancialstatementstotheincometaxesislistedbelow:

Forthesixmonthended30June2021

Forthesixmonthended30June2021Profitbeforeincometax

Profitbeforeincometax1,146,420,713.53
Taxattheapplicabletaxrate286,605,178.38
Effectofdifferenttaxratesforsomesubsidiaries(27,341,828.05)
Adjustmentsinrespectofcurrenttaxofpreviousperiods9,250,796.99
Incomenotsubjecttotax(39,424,099.45)
Expensesnotdeductiblefortax5,188,447.29
Unrecogniseddeductibletemporarydifferencesandtaxlosses4,147,763.88
Incometax238,426,259.04

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Notestoitemsinthecashflowstatement

(1)Othercashreceiptsrelatingtooperatingactivities
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Receivedthespecialemergencyreservefund-330,000,000.00
Rentincome42,368,174.7730,221,915.35
Interestincome38,758,729.7865,499,031.75
Receivedothergovernmentgrantsexcepttaxrefund35,612,619.0328,018,379.40
Others251,851,351.88253,462,783.50
368,590,875.46707,202,110.00
(2)Othercashpaymentsrelatingtooperatingactivities
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Rentalexpenses133,233,956.7065,964,390.47
Transportationcharges52,564,735.7651,095,840.37
Officeexpenses49,295,234.1940,572,923.16
Utilities42,971,147.8236,000,941.01
Storageexpenses25,614,256.0918,300,237.30
Entertainmentexpenses21,403,877.5313,954,525.81
Advertisingexpenses19,109,323.8117,580,245.59
Travelexpenses6,383,853.693,667,923.26
Others582,203,811.77456,537,231.52
932,780,197.36703,674,258.49
(3)Othercashreceiptsrelatingtoinvestingactivities
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Receivedfromcapitalpool(1)-22,000,000.00
Others54,984.6040,000.00
54,984.6022,040,000.00

(1)PudongPharmaceuticals,asubsidiaryofthemergerofenterprisesunderthecommoncontrolofGuodaPharmacyin

2020,andrecoveredthefundsoriginallycollectedtothecashpoolinthesameperiodin2020.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

57.Notestoitemsincashflowstatement(Continued)

(4)Othercashreceiptsrelatingtofinancingactivities
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Receivedloanprovidedbyminorityshareholders69,150,000.00149,900,000.00
Financingrestrictedmonetaryfundsreceived34,940,555.62128,449,840.06
ReceivedloanprovidedbySinmpharm-56,000,000.00
104,090,555.62334,349,840.06
(5)Othercashpaymentsrelatingtofinancingactivities
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Leasepayment536,275,009.28466,492,796.45
Bankfactoringpayable251,370,239.59281,994,828.44
Repaymentoftheloanprovidedbyminorityshareholders50,400,000.00304,000,000.00
InvestmentfundofShanghaiPudongPharmaceuticals-163,115,049.98
RepaymentoftheloanprovidedbySinmpharm-114,000,000.00
Purchaseofequityofminorityshareholders-52,309,117.11
Others-23,199,872.28
838,045,248.871,405,111,664.26

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)

58.Supplementaryinformationofcashflowstatement

(1)Reconciliationofnetprofittocashflowsfromoperatingactivities
Forthesixmonthended30June2021Forthesixmonthended30June2020
Netprofit907,994,454.49806,212,542.53
Add:Provisionsforassetimpairment29,081,900.7023,324,119.82
Depreciationoffixedassets78,401,603.0261,147,847.16
Depreciationofright-of-useassets493,632,821.29388,208,804.99
Amortizationofintangibleassets30,503,457.6922,955,311.98
Amortizationoflong-termprepaidexpenses79,098,080.3451,031,038.60
Gains/(losses)ondisposaloffixedassets,intangibleassetsandotherlong-termassets588,799.55(4,658,628.06)
Lossefromobsolescenceofnon-currentassets213,229.56371,619.43
Financeexpenses126,395,365.24124,862,298.31
Investmentlosses(156,587,066.32)(105,206,349.26)
(Increase)/decreaseindeferredtaxassets(10,036,816.58)(1,027,041.92)
(Decrease)/increaseindeferredtaxliabilities417,984.79(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)/increaseinoperatingpayableitems3,561,205,596.30(133,395,115.40)
Others18,300,754.852,315,060,479.17
Netcashgeneratedfromoperatingactivities1,229,373,283.571,438,204,043.35

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

VNotestotheconsolidatedfinancialstatements(Continued)

58.Supplementaryinformationofcashflowstatement(Continued)

(2)Movementofcash
Forthesixmonthsended30June2021Forthesixmonthsended30June2020
Cashattheendoftheperiod5,537,606,217.438,000,562,022.16
Less:Cashatthebeginningoftheperiod5,405,113,257.998,426,071,170.16
Netincreaseincash132,492,959.44(425,509,148.00)

(3)

Forthesixmonthsended

30June2021

Forthesixmonthsended

30June2021Cashandcashequivalentspaidforacquisitionsofsubsidiariesandotheroperatingunits

Cashandcashequivalentspaidforacquisitionsofsubsidiariesandotheroperatingunits129,668,139.12
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:Cashandcashequivalentsheldbysubsidiariesandotheroperatingunitsattheacquisitiondate28,717,501.71
Incl:DishengPharmaceutical7,723,702.95
DishengChainCo.,Ltd.20,993,798.76
Netcashoutflow/(inflow)onacquisitionofthesubsidiariesandotheroperatingunits100,950,637.41
(4)Cashandcashequivalent
30June202131December2020
Cash5,537,606,217.435,405,113,257.99
Inclue:Cashonhand4,898,795.546,707,125.90
Bankdepositsondemand5,532,707,421.895,398,406,132.09
Endingbanlancecashandcashequivalent5,537,606,217.435,405,113,257.99

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

VNotestotheconsolidatedfinancialstatements(Continued)

59.Assetsunderrestrictedownershiporrightofuse

BookvalueReasons
Cashandcashequivalents338,186,269.94Note1
Endorsednotesreceivableandreceivablefinancing20,196,089.49Note2

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

TypeAmountItemsoffinancialstatementsTheamountrecordedintoprofitorlossforthecurrentperiod
Taxreturn12,016,071.91Otherincome12,016,071.91
Stabilitationallowances11,572,570.54Otherincome/Deferredincome11,572,570.54
Constructionfundofthemodernsupplychainsysteminthecentralcirculationfieldin20182,143,819.51Otherincome/Deferredincome2,143,819.51
SubsidiesfromfoodandstrategicreservesadministrationofGuangdongprovince1,946,573.87Otherincome1,946,573.87
MedicalReserveSubsidiesfromShenzhenmunicipalhealthcommission1,437,149.37Otherincome1,437,149.37
Governmentsupportfund1,361,117.00Otherincome1,361,117.00
ResettlementCompensationofNo.7ZhongyuRoad1,349,204.28Non-operatingincome/Deferredincome1,349,204.28
EnterpriseEconomicReward733,317.46Otherincome/Deferredincome733,317.46
GovernmentgrantsforCOVID-19422,595.35Otherincome422,595.35
VATreductionorexemptionforself-employmentretiredsoldiers300,870.00Otherincome300,870.00
Guangzhoulogisticsstandardizationpilotprojectallowance273,123.42Otherincome/Deferredincome273,123.42

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VNotestotheconsolidatedfinancialstatements(Continued)60Governmentgrants(Continued)

TypeAmountItemsoffinancialstatementsTheamountrecordedintoprofitorlossforthecurrentperiod
Specialfundsforindustrialtransformationandupgradingindualizedintegrationprojects224,520.24Otherincome/Deferredincome224,520.24
RentsubsidyfromGuangzhouHigh-techIndustrialDevelopmentZone216,700.85Otherincome216,700.85
ServiceIndustryEnterpriseMarketDevelopmentSubsidyProjectinNanning200,000.00Otherincome200,000.00
SubsidyfundformedicinereserveinFoshan150,000.00Otherincome150,000.00
Comprehensiveexperimentalmodernserviceindustrysubsidies150,000.00Otherincome/Deferredincome150,000.00
LogisticsprojectconstructionsupportfundfromNanningeconomicdevelopmentcommittee93,203.22Otherincome/Deferredincome93,203.22
Fundsforthelogisticsinformationplatformprojectofthepharmaceuticalstoragecentre71,428.56Otherincome/Deferredincome71,428.56
Guangzhouspecialsubsidyforcommerceandtradecirculationindustry50,000.04Otherincome/Deferredincome50,000.04
SpecialFundfortheconstructionofEnterpriseResearchanddevelopmentInstitutionsinGuangzhou44,705.94Otherincome/Deferredincome44,705.94
HousepurchasesubsidyfromthegovernmentofTiexiDistrict,Shenyang40,561.32Otherincome/Deferredincome40,561.32
SubsidyforindustrializationapplicationprojectofpharmaceuticalcoldchainpatentincubatorfromGuangzhouliwandistrict12,499.98Otherincome/Deferredincome12,499.98
Medicalintelligentsupplychaine-commerceserviceplatformtechnologyprojectsubsidyfromGuangzhouliwandistrict9,861.24Otherincome/Deferredincome9,861.24
Othergovernmentgrants543,447.58Otherincome/Financecosts/Administrative/Sellingexpenses/Deferredincome543,447.58

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VI.Changesinscopeofconsolidation

1.Businesscombinationnotinvolvingenterprisesundercommoncontrol

1.1AcquiringDishengPharmaceutical.AndDishengchain

AcquireeThedateofacquiringtherightAcquistioncostoftherightProportionofrightsownedbytheGroupMethodsofacquisitiontherightAcquisitiondateThebasisfordeterminingthedateofpurchaseIncomeearnedfromtheacquisitiondateto30June2021Netprofitearnedfromtheacquisitiondateto30June2021
DishengPharmaceutical(a)15March202114,130,000.0070.00%Acquisition15March2021Thepurchaseractuallyacquirescontrolovertheacquiredcompany88,507,060.89964,797.79
DishengchainCo.,Ltd.(b)15March2021238,000,000.0070.00%Acquisition15March2021Thepurchaseractuallyacquirescontrolovertheacquiredcompany116,656,427.7112,161,419.65

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

AcquisitioncostsDishengPharmaceuticalDishengchain
Cash14,130,000.00238,000,000.00
Acquisitioncosts14,130,000.00238,000,000.00
Less:thefairvaluesofacquiredidentifiablenetassets14,708,610.4185,842,064.48
Goodwillarisingfromacquisition/Acquisitioncostsexceedingthefairvaluesofacquiredidentifiablenetassets(578,610.41)152,157,935.52

Thefairvalueofthecostofacquisitionisrecognizedaccordingtothepriceactuallypaid.

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

VI.Changesinscopeofconsolidation(Continued)

1.Businesscombinationsnotinvolvingenterprisesundercommoncontrol(Continued)

1.3Thefairvaluesofacquiredidentifiableassetsandliabilitiesontheacquisitiondate

DishengPharmaceuticalDishengchain
FairvalueCarryingamountFairvalueCarryingamount
Cashandbankbalances7,723,702.957,723,702.9520,993,798.7620,993,798.76
Accountsreceivable30,471,781.2430,471,781.2423,414,107.1823,414,107.18
Inventories19,829,957.3219,829,957.3245,829,051.0645,829,051.06
Fixedassets1,335,373.901,335,373.902,000,261.192,000,261.19
Intangibleassets--40,661,415.51221,415.51
Advancestosuppliers2,318,717.102,318,717.1091,212.9491,212.94
Otherreceivables2,129,844.692,129,844.693,414,254.843,414,254.84
Othercurrentassets5,329,820.935,329,820.934,627,358.054,627,358.05
Long-termprepaidexpenses724,925.12724,925.127,783,811.557,783,811.55
Right-of-useassets--41,047,873.2941,047,873.29
Deferredtaxassets31,947.5931,947.59249,467.13249,467.13
Accountspayable47,041,828.7047,041,828.7013,321,430.5013,321,430.50
Deferredtaxliabilities--6,066,000.00-
Contractliabilities123,430.92123,430.921,818,156.151,818,156.15
Employeebenefitspayable490,428.65490,428.655,316,750.155,316,750.15
Taxpayable408,921.64408,921.645,707,308.605,707,308.60
Otherpayables819,160.34819,160.347,477,165.097,477,165.09
Non-currentliabilitiesduewithinoneyear--15,482,505.3215,482,505.32
Leaseliabilities--12,291,775.0012,291,775.00
Netassets21,012,300.5921,012,300.59122,631,520.6988,257,520.69
Less:equityofminorityshareholders6,303,690.186,303,690.1836,789,456.2126,477,256.21
Netassetsacquired14,708,610.4114,708,610.4185,842,064.4861,780,264.48

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:

NantongPuji2March20212March2021
FairvalueCarryingamount
Fixedassets788,300.00788,300.00
Inventories1,751,439.121,751,439.12
Long-termprepaidexpenses100,300.00100,300.00
Total2,640,039.122,640,039.12
Pricepaid14,138,139.1214,138,139.12
Goodwillarisingfromacquisition11,498,100.0011,498,100.00

Operatingresultsandcashflowsof15directly-managedstoresofNantongPujifortheperiodfromtheacquisitiondatetotheendoftheJunearepresentedasfollows:

2March2021to30June2021Operatingrevenue

Operatingrevenue7,016,410.53
Netprofit303,795.13
cashflowsfromoperatingactivities871,784.36

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:

ShanxiHuiminKangweipharmacy8February20218February2021
FairvalueCarryingamount
Fixedassets1,740,000.001,740,000.00
Inventories7,290,000.007,290,000.00
Total9,030,000.009,030,000.00
Pricepaid30,000,000.0030,000,000.00
Goodwillarisingfromacquisition20,970,000.0020,970,000.00

Operatingresultsandcashflowsof32directly-managedstoresofShanxiHuiminKangweipharmacyfortheperiodfromtheacquisitiondatetotheendoftheJunearepresentedasfollows:

8February2021to30June2021Operatingrevenue

Operatingrevenue15,240,595.69
Netprofit292,600.01
cashflowsfromoperatingactivities209,519.17

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities

1.Interestsininsubsidiaries

(1)ThecompositionoftheGroup:
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmGuilinGuilinGuilinCommercial-100.00%Establishment
SinopharmBaiseBaiseBaiseCommercial-100.00%Establishment
SinopharmHoldingZhongshanCo.,Ltd.ZhongshanZhongshanCommercial-100.00%Establishment
SinopharmGuigangGuigangGuigangCommercial-100.00%Establishment
SinopharmBeihaiBeihaiBeihaiCommercial-100.00%Establishment
SinopharmHoldingGuangzhouMedicalTreatmentGuangzhouGuangzhouCommercial-51.00%Establishment
SinopharmHoldingShenzhenJianminCo.,Ltd.(hereafterreferedas"SinopharmShenzhenJianmin")ShenzhenShenzhenCommercial100.00%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenTraditional&HerbalMedicineCo.,Ltd.(hereafterreferdas“SinopharmTraditional&HerbalMedicine")ShenzhenShenzhenCommercial100.00%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingShenzhenLogisticsCo.,Ltd.(hereafterreferedas“SinopharmShenzhenLogistics")ShenzhenShenzhenServices100.00%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuangzhouGuangzhouGuangzhouCommercial100.00%-Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongHengxingCo.,Ltd.GuangzhouGuangzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmYulinYulinYulinCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmLiuzhouLiuzhouLiuzhouCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangdongHuixinInvestmentCo.,Ltd.GuangzhouGuangzhouService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingFoshanCo.,Ltd.FoshanFoshanCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongYuexingCo.,Ltd.(hereafterreferedas“SinopharmGuangdongYuexing”)GuangzhouGuangzhouCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongLogisticsCo.,Ltd.GuangzhouGuangzhouService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuangxiNanningNanningCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiLogisticNanningNanningService100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmWuzhouWuzhouWuzhouCommercial99.90%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmDongguanDongguanDongguanCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmZhanjiangZhanjiangZhanjiangCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmYanfengShenzhenShenzhenCommercial51.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmMeizhouMeizhouMeizhouCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHuizhouHuizhouHuizhouCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmZhaoqingZhaoqingZhaoqingCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmJiangmenJiangmenJiangmenCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmShaoguanShaoguanShaoguanCommercial-70.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingShantouCo.,LtdShantouShantouCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
FoshanNanhaiFoshanFoshanCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiUptodate&SpecialMedicinesCo.,Ltd.FoshanFoshanCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
FoshanNanhaiMedicineCo.,Ltd.FoshanFoshanCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(a)GuangzhouGuangzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SouthPharma&TradeGuangzhouGuangzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmZhuhaiZhuhaiZhuhaiCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmMaomingMaomingMaomingCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol

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

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmHoldingGZMedicalTechnologyCo.,Ltd.GuangzhouGuangzhouCommercial-51.00%Establishment
SinopharmHoldingGZMedicalSupplyChainServiceCo.,Ltd.GuangzhouGuangzhouCommercial-51.00%Establishment
SinopharmHoldingHeyuanCo.,Ltd.HeyuanHeyuanCommercial-70.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
GuodaPharmacyShanghaiShanghaiCommercial60.00%-Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuoda.ShanghaiShanghaiCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGuodaPharmacyChainStoreCo.,Ltd.BeijingBeijingCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
TianjinGuodaPharmacyChainStoreCo.,Ltd.TianjinTianjinCommercial-80.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiConsultingNanningNanningCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmHoldingGuodaPharmacyGuangdongCo.,Ltd.ShenzhenShenzhenCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuangxiGuodaLiuzhouLiuzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangGuodaHangzhouHangzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
YangzhouGuodaYangzhouYangzhouCommercial-93.68%Businesscombinationsinvolvingentitiesundercommoncontrol
NingxiaGuodaYinchuanYinchuanCommercial-70.00%Businesscombinationsinvolvingentitiesundercommoncontrol
NanjingGuodaNanjingNanjingCommercial-60.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShandongGuodaLinyiLinyiCommercial-55.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShenyangGuodaShenyangShenyangCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
FujianChainXiamenXiamenCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
AnhuiGuodaPharmacyChainStoreCo.,Ltd.HefeiHefeiCommercial-60.00%Businesscombinationsinvolvingentitiesundercommoncontrol
QuanzhouGuodaQuanzhouQuanzhouCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanminTaiyuanTaiyuanCommercial-85.00%Businesscombinationsinvolvingentitiesundercommoncontrol
HunanGuodaHengyangHengyangCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
LiyangGuodaLiyangLiyangCommercial-80.00%Businesscombinationsinvolvingentitiesundercommoncontrol
HenanGuodaPingdingshanPingdingshanCommercial-60.00%Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaGuodaHohhotHohhotCommercial-96.70%Businesscombinationsinvolvingentitiesundercommoncontrol
HebeiLerentangShijiazhuangShijiazhuangCommercial-60.00%Businesscombinationsinvolvingentitiesundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
JiangmenGuodaJiangmenJiangmenCommercial-65.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaYiyuanTaiyuanTaiyuanCommercial-80.00%Businesscombinationsinvolvingentitiesundercommoncontrol
XinjiangGuodaUrumqiUrumqiCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ForMeMedicinesShanghaiShanghaiCommercial-97.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiForMeYiXingPharmacyChainStoreCo.,Ltd.ShanghaiShanghaiCommercial-99.76%Businesscombinationsinvolvingentitiesundercommoncontrol
BeijingGoldenElephantBeijingBeijingCommercial-53.13%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiTongfengPharmacyLogisticsCo.,Ltd.TaiyuanTaiyuanCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ChangzhiWanminChangzhiChangzhiCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanxiGuodaWanminClinicManagementChainCo.,Ltd.TaiyuanTaiyuanMedicalservices-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd.ShanghaiShanghaiCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ZhejiangIntlmedicinePharmacyDongshanCo.,Ltd.HangzhouHangzhouCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiDongshengGuodaShanghaiShanghaiCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmGuodaDrugStore(Shenzhen)ChainCo.,Ltd.ShenzhenShenzhenCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuodaGuangzhouChainGuangzhouGuangzhouCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodongChineseTraditionalMedicineClinicCo.,Ltd.ShanghaiShanghaiMedicalclinic-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiGuodaDongxinPharmacyChainStoreCo.,Ltd.ShanghaiShanghaiCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiYutaitangChineseTraditionalMedicineClinicCo.,Ltd.ShanghaiShanghaiCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SanheLiyangGoldenElephantPharmacyCo.,Ltd.LangfangLangfangCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
XiaoyiWanminXiaoyiXiaoyiCommercial-70.00%Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaHulunBuirGuodaHulunBuirHulunBuirCommercial-51.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ForMeXuhuiShanghaiShanghaiCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
InnerMongoliaUlanqabGuoda.UlanqabUlanqabCommercial-60.00%Establishment
TaishanGuodaTaishanTaishanCommercial-70.00%Businesscombinationsinvolvingentitiesundercommoncontrol
SinopharmLerentangShijiazhuangPharmaceuticalShijiazhuangShijiazhuangCommercial-100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ManchuriaGuodaManchuriaManchuriaCommercial-51.00%Establishment
SinopharmGuodaDrugStoreAnshanChainCo.,Ltd.AnshanAnshanCommercial-51.00%Establishment

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
SinopharmHoldingGuodaYongshengDrugStore(Shanghai)Co.,Ltd.ShanghaiShanghaiCommercial-55.00%Establishment
SinopharmHoldingFoshanMedicalConsumablesSupplyChainCo.,Ltd.FoshanFoshanCommercial-70.00%Establishment
SinopharmGuangxiSupplyChainNanningNanningCommercial-30.60%Establishment
ShanghaiHaohaiGuodaShanghaiShanghaiCommercial-51.00%Establishment
SinopharmBaiyiPharmacyNanningNanningCommercial-51.00%Establishment
SinopharmHezhouHezhouHezhouCommercial-100.00%Establishment
SinopharmHoldingNationalPharmacyZhengzhouChainCo.,Ltd.ZhengzhouZhengzhouCommercial-60.00%Establishment
ShanghaiRuijingGuodaShanghaiShanghaiCommercial-55.00%Establishment
FujianGuodaPharmaceuticalCo.,Ltd.XiamenXiamenCommercial-100.00%Establishment
SinopharmQinzhouQinzhouQinzhouCommercial-100.00%Establishment
SinopharmHechiHechiHechiCommercial-100.00%Establishment
SinopharmHoldingGuangzhouHuaduCo.,Ltd.GuangzhouGuangzhouCommercial-70.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingGuodaShanxiPharmaceuticalCo.,Ltd.TaiyuanTaiyuanCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
TaiyuanTongxinliGuodaPharmacyCo.,Ltd.TaiyuanTaiyuanCommercial-100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
BayannaoerBayannaoerBayannaoerCommercial-80.00%Establishment
GuodaInnerMongoliaPharmaceuticalHohhotHohhotCommercial-100.00%Establishment
SinopharmHoldingGuodaYongxingtangChain(Chaoyang)Co.,Ltd.ChaoyangChaoyangCommercial-51.00%Establishment
SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd(b)(“AccordDevices”)ShenzhenShenzhenCommercial60.00%Establishment
SinopharmHoldingGuozhiPharmacy(Heyuan)Co.,Ltd.HeyuanHeyuanCommercial70.00%Establishment
LiaoningGuodaPharmaceuticalCo.,Ltd.ShenyangShenyangCommercial100.00%Establishment
SinopharmHoldingGuangyiHealthManagement(Zhanjiang)Co.,Ltd.ZhanjiangZhanjiangCommercial60.00%Establishment
GuangzhouMedicineGuangzhouGuangzhouCommercial70.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
Guodapharmacy(Chaoyang)RenaiCo.,Ltd.ChaoyangChaoyangCommercial51.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
GuodaPu’erSongmaoPuerPuerCommercial60.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
ShanghaiDingqunShanghaiShanghaiMedicalservices100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.ChangchunChangchunCommercial85.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinYiheChangchunChangchunCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinDonglongMedicalLogistisdistributionCo.,Ltd.ChangchunChangchunCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
YushuDingheMedicalTechnologyCo.,Ltd.ChangchunChangchunCommercial51.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
GuodapharmacyJilinCo.,Ltd.(c)ChangchunChangchunCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
YanjiXiangheMedicalCo.,Ltd.YanjiYanjiCommercial51.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
PudongPharmaceuticalsShanghaiShanghaiCommercial75.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiYanghetangPharmaceuticalChainManagementCo.,Ltd.ShanghaiShanghaiCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
ShanghaiPudongYanghetangTCMClinicCo.,Ltd.ShanghaiShanghaiCommercial100.00%Businesscombinationsinvolvingentitiesundercommoncontrol
GuodaPharmacy(Rizhao)Co.,Ltd.RizhaoRizhaoCommercial100.00%Establishment
LiaoningHealthPharmacyShenyangShenyangCommercial100.00%Establishment
BeijingJinxiangGuoxingpharmaceuticalchainCo.,Ltd.BeijingBeijingCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
SinopharmAccord(Yangjiang)MedicineCo.,Ltd.YangjiangYangjiangCommercial70.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningGuodapharmacyDalianDalianCommercial100.00%Establishment
LiaoningHuludaoGuodapharmacyCo.,Ltd(d)HuludaoHuludaoCommercial100.00%Establishment
JinzhongYuciGuodaWanminclinicCo.,LtdJinzhongJinzhongCommercial100.00%Establishment
GuodaJianfeng(Jiangmen)pharmaceuticalchainCo.,LtdJiangmenJiangmenCommercial51.00%Establishment
ChengdaFangyuanPharmaceuticalGroupCo.,LtdShenyangShenyangCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
ShandongChengdaFangyuanpharmaceuticalchainCo.,LtdQingdaoQingdaoCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanpharmaceuticalchainCo.,LtdShenyangShenyangCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningZhichengXingdaadvertisingmediaCo.,LtdBenxiBenxiMedicalservices100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
ChengdaFangyuan(Liaoning)newdrugspecialdrugchainCo.,LtdShenyangShenyangCommercial80.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanvocationalandtechnicaltrainingschoolShenyangShenyangMedicalservices100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)
(1)ThecompositionoftheGroup(Continued):
SubsidiariesPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholdingWaysofacquisition
DirectIndirect
LiaoningChengdaFangyuanPharmaceuticalCo.,LtdShenyangShenyangCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
DalianZhengdaPharmaceuticalCo.,LtdDalianDalianCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
HebeiChengdaFangyuanpharmaceuticalchainCo.,LtdQnghuangdaoQnghuangdaoCommercial100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanPharmaceuticalLogisticsCo.,LtdShenyangShenyangMedicalservices100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
LiaoningChengdaFangyuanLogisticsCo.,LtdShenyangShenyangMedicalservices100.00%Businesscombinationsinvolvingentitiesnotundercommoncontrol
JilinChengdaFangyuanPharmaceuticalCo.,LtdChangchunChangchunCommercial80.00%Businesscombinationsinvolvingentitiesnotundercommoncontro
JilinChengdaFangyuanpharmaceuticalchainCo.,LtdChangchunChangchunCommercial99.00%Businesscombinationsinvolvingentitiesnotundercommoncontro
InnerMongoliaChengdaFangyuanMedicineChifengChifengCommercial70.00%Businesscombinationsinvolvingentitiesnotundercommoncontro
InnerMongoliaChengdaFangyuanpharmaceuticalchainCo.,LtdChifengChifengCommercial99.00%Businesscombinationsinvolvingentitiesnotundercommoncontro
HuiminLuliang(e)LvliangLvliangCommercial51.00%Establishment
DishengPharmaceutical(f)XishuangbannaXishuangbannaCommercial70.00%Businesscombinationsinvolvingentitiesnotundercommoncontro
Dishengchain(g)XishuangbannaXishuangbannaCommercial70.00%Businesscombinationsinvolvingentitiesnotundercommoncontro

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIInterestsinotherentities(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)

VIIInterestsinotherentities(Continued)
1.Interestsinsubsidiaries(Continued)

(2)Importantnon-whollyownedsubsidiary

SubsidiariesMinorityshareholdingratioProfitorlossattributabletominorityshareholdersinthecurrentperiodDispatchofdividendstominorityshareholdersinthecurrentperiodMinorityshareholders'equity
GuodaPharmacy40.00%79,549,416.99-2,028,470,458.01

(3)Keyfinancialinformationofimportantnon-whollyownedsubsidiaries

Subsidiaries30June202131December2020
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilities
GuodaPharmacy9,335,400,322.927,008,855,001.2116,344,255,324.139,037,608,731.161,459,822,617.0810,497,431,348.248,886,545,970.796,570,327,751.0415,456,873,721.838,541,421,518.151,375,989,559.149,917,411,077.29
SubsidiariesForthesixmonthsended30June2021Forthesixmonthsended30June2020
OperatingrevenueNetprofitTotalcomprehensiveincomeCashflowfromoperatingactivitiesOperatingrevenueNetprofitTotalcomprehensiveincomeCashflowfromoperatingactivities
GuodaPharmacy10,841,326,194.08263,262,365.37263,262,365.37786,526,215.878,613,020,309.15248,037,573.90248,037,573.90470,794,143.55

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

VII.Interestsinotherentities(Continued)

2.Interestsinassociates

PrincipalplaceofbusinessPlaceofincorporationNatureofbusinessShareholding(%)Accounting
DirectIndirect
Associates
MainLuckPharmaceuticalShenzhenShenzhenManufacturing35.19%-Equity
ZhijunSuzhouSuzhouSuzhouManufacturing33.00%-Equity
SinopharmZhijunShenzhenShenzhenManufacturing49.00%-Equity
ZhijunTradeShenzhenShenzhenCommercial49.00%-Equity
ZhijunPingshanShenzhenShenzhenManufacturing49.00%-Equity
SinopharmShyndecShanghaiShanghaiBusinessserviceindustry16.28%-Equity
ShanghaiBeiyiShanghaiShanghaiCommercial-26.00%Equity
ShanghaiLiyiShanghaiShanghaiCommercial-35.00%Equity
GuangdongJienuoGuangzhouGuangzhouCommercial-29.00%Equity
DongyuanaccordHeyuanHeyuanCommercial-45.00%Equity
ShanghaiRenbeiShanghaiShanghaiCommercial-30.00%Equity
GuangdongJianhuiZhanjiangZhanjiangPublic-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/Forthesixmonthsended30June20211January2020/Forthesixmonthsended30June2020
SinopharmShyndecZhijunMedicineMainLuckPharmaceuticalSinopharmShyndecZhijunMedicineMainLuckPharmaceutical
Currentassets11,543,472,621.581,310,424,165.501,150,192,274.2410,162,475,190.651,176,812,039.371,076,146,345.00
Non-currentassets8,262,496,257.36241,317,313.08120,177,914.288,087,979,595.07238,613,242.87124,495,504.04
Totalassets19,805,968,878.941,551,741,478.581,270,370,188.5218,250,454,785.721,415,425,282.241,200,641,849.04
Currentliabilities7,742,313,859.56621,599,563.08246,923,526.166,194,362,158.11541,117,019.88275,509,215.17
Non-currentliabilities1,879,414,378.304,398,795.458,120,000.002,236,726,740.995,822,904.958,120,000.00
Totalliabilities9,621,728,237.86625,998,358.53255,043,526.168,431,088,899.10546,939,924.83283,629,215.17
Non-controllinginterests1,731,996,575.52--1,688,157,191.81--
Shareholders’equityattributabletoshareholdersoftheparent8,452,244,065.56925,743,120.051,015,326,662.368,131,208,694.81868,485,357.41917,012,633.87
Portionofnetassetscalculatedbyshareholdingratio1,376,025,333.87453,614,128.80357,293,452.481,323,760,775.52425,557,825.11322,696,745.87
Carryingvalueofequityinvestmentinjointventures1,376,025,333.87453,614,128.80357,293,452.481,323,760,775.52425,557,825.11322,696,745.87
Operatingrevenue7,632,136,688.61746,410,222.02476,292,028.696,211,855,587.54659,730,341.51475,122,136.41
Netprofit541,049,057.9257,257,762.6498,308,111.37427,914,866.0435,512,234.8898,199,603.82
Totalcomprehensiveincome541,447,429.5357,257,762.6498,308,111.37428,665,399.7535,512,234.8898,199,603.82
Dividendsreceivedfromjointventuresthisperiod16,714,220.20--16,714,220.20-63,342,000.00

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VII.Interestsinotherentities(Continued)

2.Interestsinassociates(Continued)

Summaryfinancialinformationofunimportantjointventuresandassociatedenterprises:

Excesslossesincurredbyjointventuresorassociates:

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

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

30June2021/Forthesixmonthsended30June20211January2020/Forthesixmonthsended30June2020
associatedenterprises:
Carryingvalueofequityinvestment240,672,877.06215,004,281.49
Netprofit25,668,595.5728,478,625.69
Totalcomprehensiveincome25,668,595.5728,478,625.69

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments

1.Classificationoffinancialinstruments

30June2021:

FinancialassetsFinancialassetsatfairvaluethroughprofitorlossFinancialassetsatamortisedcostFinancialassetsatfairvaluethroughothercomprehensiveincomeTotal
MandatorilyrequiredMandatorilyrequiredDesignated
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-currentfinancialassets117,974,908.51---117,974,908.51
Otherequityinstrumentinvestment---99,488,340.2899,488,340.28
117,974,908.5124,905,224,473.82345,906,887.5599,488,340.2825,468,594,610.16
FinancialliabilitiesFinancialliabilitiesatamortisedcost
Short-termborrowings4,632,933,904.39
Notespayable6,780,425,089.17
Accountspayable9,642,504,836.50
Otherpayables1,530,963,581.23
Non-currentliabilitiesduewithin1year798,170,618.10
Leaseliabilities1,361,131,352.80
Long-termborrowings61,633,794.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

VIIIRisksrelatedtofinancialinstruments(Continued)

1.Classificationoffinancialinstruments(Continued)31December2021:

FinancialassetsFinancialassetsatfairvaluethroughprofitorlossFinancialassetsatamortisedcostFinancialassetsatfairvaluethroughothercomprehensiveincomeTotal
MandatorilyrequiredMandatorilyrequiredDesignated
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-currentfinancialassets120,972,350.24---120,972,350.24
Otherequityinstrumentinvestment---99,488,340.2899,488,340.28
120,972,350.2420,955,519,534.821,404,987,700.3899,488,340.2822,580,967,925.72
FinancialliabilitiesFinancialliabilitiesatamortisedcost
Short-termborrowings1,612,187,020.12
Notespayable7,520,165,274.69
Accountspayable7,697,451,142.50
Otherpayables1,599,166,881.14
Non-currentliabilitiesduewithin1year748,732,059.89
Leaseliabilities1,303,054,163.90
Long-termborrowings31,637,173.89

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
Within1year1to2years2to5yearsAbove5yearsTotal
Short-termborrowings4,709,466,709.01---4,709,466,709.01
Long-termborrowings-2,431,600.0062,818,460.27-65,250,060.27
Notespayable6,780,425,089.17---6,780,425,089.17
Accountspayable9,642,504,836.50---9,642,504,836.50
Otherpayables1,530,963,581.23---1,530,963,581.23
Non-currentliabilitiesduewithin1year875,756,920.06---875,756,920.06
Leaseliabilities-647,956,518.10715,415,984.3196,740,307.761,460,112,810.17
23,539,117,135.97650,388,118.10778,234,444.5896,740,307.7625,064,480,006.41

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

VIIIRisksrelatedtofinancialinstruments(Continued)

3.Risksoffinancialinstruments(Continued)

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

31December2020
Within1year1to2years2to5yearsAbove5yearsTotal
Short-termborrowings1,630,237,831.47---1,630,237,831.47
Long-termborrowings-1,216,600.0032,313,062.78-33,529,662.78
Notespayable7,520,165,274.69---7,520,165,274.69
Accountspayable7,697,451,142.50---7,697,451,142.50
Otherpayables1,599,166,881.14---1,599,166,881.14
Non-currentliabilitiesduewithin1year866,553,230.12---866,553,230.12
Leaseliabilities-607,074,838.58682,420,061.0586,860,654.771,376,355,554.40
19,313,574,359.92608,291,438.58714,733,123.8386,860,654.7720,723,459,577.10

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:

30June202131December2020
Gearingratio60.43%57.35%

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

IX.Disclosureoffairvalue

1.Assetsandliabilitiesatfairvalue30June2021:

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Continuousmeasurementoffairvalue
Receivablefinancing-345,906,887.55-345,906,887.55
Otherinvestmentinequityinstruments-99,488,340.28-99,488,340.28
Othernon-currentfinancialassets--117,974,908.51117,974,908.51
-445,395,227.83117,974,908.51563,370,136.34

31December2020

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Continuousmeasurementoffairvalue
Receivablefinancing-1,404,987,700.38-1,404,987,700.38
Otherinvestmentinequityinstruments-99,488,340.28-99,488,340.28
Othernon-currentfinancialassets--120,972,350.24120,972,350.24
-1,504,476,040.66120,972,350.241,625,448,390.90

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

IX.Disclosureoffairvalue(Continued)

2.Assetsandliabilitiesdisclosedatfairvalue30June2021:

Inputappliedinthemeasurementoffairvalue
QuotedpricesinactivemarketsSignificantobservableinputsSignificantunobservableinputsTotal
Level1Level2Level3
Long-termborrowings-61,633,794.44-61,633,794.44

3.Estimationoffairvalue

ThefollowingarethebookvalueandfairvalueoffinancialinstrumentsoftheGroup,excludingthosethathaveimmaterialdifferenceinbookvalueandfairvalue:

CarryingamountFairvalue
30June202131December202030June202131December2020
Financialliabilities----
Long-termborrowings61,633,794.4431,637,173.8961,633,794.4431,637,173.89

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’snameRegisteredaddressNatureofbusinessSharecapitalProportionofownershipinterestintheCompanyProportionofvotingpowerintheCompany
SinopharmGroupCo.,Ltd.ShanghaiIndustrialinvestmentholding,trusteeofapharmaceuticalenterprise,assetsreorganization,distributionandretailofmedicinesandpharmaceuticalproducts,etc.3,120,656,191.0056.06%56.06%

TheultimatecontrollingpartyoftheCompanyisCNPGC.

2.SubsidiariesRefertoNoteVII1fordetailsofsubsidiaries.

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

3.Associates

RefertoNoteVII2fordetailsofassociates.Thesituationofotherjointventuresorassociatesthathaverelatedpartytransactionswiththecompanyduringthecurrentperiodorthebalanceoftherelatedpartytransactionswiththecompanyinthepreviousperiodisasfollows:

PleaserefertoNoteX5fordetails.

4.Otherrelatedparties

CompanynameRelatedpartyrelationships
LanzhouBiotechnologyDevelopmentCo.,Ltd.ControlledbyCNPGC
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.ControlledbyCNPGC
ChinaNationalPharmaceuticalForeignTradeCorporationControlledbyCNPGC
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)

CompanynameRelatedpartyrelationships
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
TaijiGroupControlledbyCNPGC
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
ChinaSinopharmInternationalCorporationControlledbyCNPGC
GuangdongYifangPharmaceuticalCo.,Ltd.ControlledbyCNPGC

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

CompanynameRelatedpartyrelationships
SinopharmFengliaoxing(Foshan)MedicinesCo.,Ltd.ControlledbyCNPGC
SinopharmGroupFengliaoxingPharmacy(Foshan)Co.,Ltd.ControlledbyCNPGC
GuangxiYifangTianjiangPharmaceuticalCo.,Ltd.ControlledbyCNPGC
SinopharmGroupFinancialCo.,Ltd.ControlledbyCNPGC
InnostarBiotechnologyNantongCo.,LtdControlledbyCNPGC
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)

CompanynameRelatedpartyrelationships
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)

CompanynameRelatedpartyrelationships
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)

CompanynameRelatedpartyrelationships
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)

CompanynameRelatedpartyrelationships
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)

CompanynameRelatedpartyrelationships
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)

CompanynameRelatedpartyrelationships
SinopharmHoldingZhuanyePharmacy(Dongfang)Co.,Ltd.ControlledbySinopharmGroup
SinopharmHoldingHunanWeianPharmacyMedicineChainCompanyLimitedControlledbySinopharmGroup
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)

CompanynameRelatedpartyrelationships
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
GuHaiqunMinorityshareholdersofasubsidiary
ShenzhenJiufengInvestmentCo.,Ltd.Minorityshareholdersofasubsidiary
ZhangHaiyanMinorityshareholdersofasubsidiary
TaishanQunkangPharmacyCo.,Ltd.Minorityshareholdersofasubsidiary
Pu'erSongmaoMedicineGroupCo.,Ltd.Minorityshareholdersofasubsidiary

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

X.Relatedpartyrelationshipsandtransactions(Continued)

4.Otherrelatedparties(Continued)

CompanynameRelatedpartyrelationships
HangzhouXihuDistrictCommercialCo.,Ltd.Minorityshareholdersofasubsidiary
JilinProvinceYiheInvestmentConsultingCo.,Ltd.Minorityshareholdersofasubsidiary
DuLongfengMinorityshareholdersofasubsidiary
LiHuichunMinorityshareholdersofasubsidiary
ZhangZhenfangMinorityshareholdersofasubsidiary
PingdingshanPushengPharmaceuticalCo.,Ltd.Minorityshareholdersofasubsidiary
XiongXinyuanMinorityshareholdersofasubsidiary
ShenyangShengdiouTradingCo.,Ltd.Minorityshareholdersofasubsidiary
ShanghaiBaizhongBusinessDevelopment(Group)Co.,Ltd.Minorityshareholdersofasubsidiary
ZhangYechuanFamilymembersoftheactualcontrollerofminorityshareholdersofasubsidiary
WangYangFamilymembersoftheactualcontrollerofminorityshareholdersofasubsidiary
LiFangTheactualcontrollerofminorityshareholdersofasubsidiary
GuJinhuaTheactualcontrollerofminorityshareholdersofasubsidiary
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
SuzhouEryePharmaceuticalLimitedCompanySubsidiaryofFosunPharm
HunanDongtingPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.Otherrelatedparties(Continued)

CompanynameRelatedpartyrelationships
GlaxoSmithKlinePharmaceuticals(Suzhou)Co.,Ltd.SubsidiaryofFosunPharm
ShanghaiTransfusionTechnologyCo.,Ltd.SubsidiaryofFosunPharm
ShenyangHongqiPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
GuilinPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
JinzhouAvancMedicineCo.,Ltd.SubsidiaryofFosunPharm
JiangsuHuanghePharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
HunanYaoyouMedicinesCo.,Ltd.SubsidiaryofFosunPharm
SuzhouLaishiTransfusionEquipmentSubsidiaryofFosunPharm
ChengduListPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
ChongqingHaisimanPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
FoshanChanchengPharmaceuticalCo.,Ltd.SubsidiaryofFosunPharm
ShenzhenHengshengHospitalSubsidiaryofFosunPharm
FoshanChanchengCentralHospitalCo.,Ltd.SubsidiaryofFosunPharm
FoshanChanyixingMedicineDevelopmentCo.,Ltd.SubsidiaryofFosunPharm
ShenzhenChindexMedicalBeautyClinicSubsidiaryofFosunPharm
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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHoldingSubMarketingCenterCo.,Ltd.Purchaseofgoods567,957,995.488,910,000,000.00NO548,051,256.56
ChinaNationalMedicinesCo.,Ltd.Purchaseofgoods378,976,943.17NO309,588,426.46
SinopharmHoldingShanxiCo.,Ltd.Purchaseofgoods291,169,816.86NO302,659,086.81
SinopharmHoldingShenyangCo.,Ltd.Purchaseofgoods218,687,438.90NO91,252,243.44
SinopharmLerentangMedicineCo.,Ltd.Purchaseofgoods212,774,916.08NO144,033,107.71
SinopharmHoldingShanxiCo.,Ltd.Purchaseofgoods204,598,556.55NO168,218,597.08
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.Purchaseofgoods132,068,068.87NO76,699,225.00
SinopharmGroupCo.,Ltd.Purchaseofgoods130,357,912.20NO101,625,946.62
FreseniusKabiHuaruiPharmaceuticalsCo.,Ltd.Purchaseofgoods83,397,212.70NO60,511,824.27
JiangsuWanbangPharmacyMarketingCo.,Ltd.Purchaseofgoods80,954,984.16NO97,184,029.57
LanzhouBiotechnologyDevelopmentCo.,Ltd.Purchaseofgoods68,090,371.68NO48,840,600.00
SinopharmHoldingYangzhouCo.,Ltd.Purchaseofgoods51,592,777.55NO38,126,655.70
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.Purchaseofgoods45,696,541.00NO34,152,784.08
SinopharmHoldingLunanCo.,Ltd.Purchaseofgoods40,999,864.55NO26,448,807.82
SinopharmHoldingInnerMongoliaCo.,Ltd.Purchaseofgoods40,632,946.46NO35,570,487.58
ChongqingYaoyouPharmaceuticalCo.,Ltd.Purchaseofgoods37,011,667.64NO26,949,678.43
ShanghaiShyndecPharmaceuticalMarketingCo.,Ltd.Purchaseofgoods36,421,939.26NO82,302.92
ChinaNationalPharmaceuticalForeignTradeCorporationPurchaseofgoods31,428,461.51NO8,156,658.48
SinopharmHoldingJilinCo.,Ltd.Purchaseofgoods30,157,192.13NO11,181,666.83
SinopharmYixinPharmaceuticalCo.,Ltd.Purchaseofgoods28,345,022.18NO8,249,563.42

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

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
ShanghaiHenliusBiopharmaceuticalsCo.,Ltd.Purchaseofgoods26,663,502.358,910,000,000.00NO-
SinopharmHoldingFujianCo.,Ltd.Purchaseofgoods26,242,880.93NO21,032,808.12
MainLuckPharmaceuticalPurchaseofgoods25,917,861.73NO16,716,318.29
FoshanWinteamPharmaceuticalGroupLtd.Purchaseofgoods23,659,412.81NO11,624,754.37
SinopharmHoldingHenanCo.,Ltd.Purchaseofgoods22,693,352.04NO22,896,338.50
SinopharmHoldingShandongCo.,Ltd.Purchaseofgoods22,619,090.27NO9,870,222.38
SinopharmHoldingLerentangPharmaceuticalCo.,Ltd.Purchaseofgoods19,472,073.81NO16,213,399.66
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.Purchaseofgoods19,340,530.98NO-
SouthwestPharmaceuticalCo.,Ltd.Purchaseofgoods17,542,194.64NO-
SinopharmHoldingBeijingCo.,Ltd.Purchaseofgoods17,360,821.15NO32,520,572.80
SinopharmHoldingXinjiangXinteShenrongPharmaceuticalCo.,Ltd.Purchaseofgoods17,310,598.75NO-
SinopharmHoldingJiangsuCo.,Ltd.Purchaseofgoods16,730,745.30NO10,137,097.99
SinopharmHoldingTongliaoCo.,Ltd.Purchaseofgoods16,039,594.19NO5,810,230.35
SinopharmZhijunPurchaseofgoods15,931,558.84NO12,126,208.66
SinopharmGroupGuoruiMedicineCo.,Ltd.Purchaseofgoods15,180,518.65NO2,675,445.41
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.Purchaseofgoods14,889,163.04NO4,168,839.16
ChengduRongshengPharmacyCo.,Ltd.Purchaseofgoods14,584,099.03NO8,518,290.00
TibetYaoyouMedicinesCo.,Ltd.Purchaseofgoods14,011,950.98NO10,576,537.72
SinopharmHoldingHunanCo.,Ltd.Purchaseofgoods13,204,231.22NO8,970,281.71

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

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
ShenzhenWanweiMedicineTradingCo.,Ltd.Purchaseofgoods13,151,952.248,910,000,000.00NO11,467,474.49
YichangHumanwellPharmaceuticalCo.,Ltd.Purchaseofgoods12,457,905.62NO7,649,748.62
SinopharmPharmaceuticals(Shanghai)Co.,Ltd.Purchaseofgoods12,051,455.59NO3,507,017.31
SinopharmHoldingPingdingshanCo.,Ltd.Purchaseofgoods11,979,529.78NO15,984,508.75
SinopharmHoldingXiamenCo.,Ltd.Purchaseofgoods11,957,608.14NO8,217,598.96
JinzhouAvancPharmaceuticalCo.,Ltd.Purchaseofgoods11,829,570.34NO7,185,929.54
ChinaOtsukaPharmaceuticalCo.,Ltd.Purchaseofgoods11,763,554.47NO6,256,674.56
ZhijunPingshanPurchaseofgoods10,838,947.13NO11,851,634.26
SinopharmHoldingChangzhouCo.,Ltd.Purchaseofgoods10,160,654.93NO11,126,503.85
SinopharmXingshaPharmaceuticals(Xiamen)Co.,Ltd.Purchaseofgoods9,851,650.37NO5,872,922.23
SinopharmLerentangShijiazhuangMedicineCo.,Ltd.Purchaseofgoods9,697,409.23NO7,471,038.17
YunnanSinopharmHoldingDongchangMedicineCo.,Ltd.Purchaseofgoods9,191,104.74NO989,799.95
SinopharmHoldingJinzhouCo.,Ltd.Purchaseofgoods8,931,064.40NO3,117,332.78
ShanghaiChaohuiPharmaceuticalCo.,Ltd.Purchaseofgoods7,770,056.47NO3,912,114.41
SinopharmHoldingNingxiaCo.,Ltd.Purchaseofgoods7,527,437.99NO12,243,904.08
SinopharmHoldingAnshanCo.,Ltd.Purchaseofgoods7,386,999.04NO584,206.98
SinopharmGroupShanxiMedicalDevicesCo.,Ltd.Purchaseofgoods6,568,011.43NO4,980,871.81
JiangxiEryeMedicineMarketingCo.,Ltd.Purchaseofgoods6,315,288.30NO6,456,636.49
SinopharmHoldingShanxiZhongjianMedicialDeviceChainCo.,Ltd.Purchaseofgoods6,180,889.71NO7,522,898.44

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
FosunPharmaceuticalDistributionJiangsuCo.,Ltd.Purchaseofgoods5,932,515.368,910,000,000.00NO2,481,349.10
SinopharmHoldingJinanCo.,Ltd.Purchaseofgoods5,593,031.01NO3,208,390.44
SinopharmHoldingShanxiDajiuzhouMedicineCo.,Ltd.Purchaseofgoods5,438,916.55NO4,606,542.22
TaijiGroupChongqingFulingPharmaceuticalCo.,Ltd.Purchaseofgoods5,323,305.69NO-
SinopharmJiankun(Beijing)MedicineCo.,Ltd.Purchaseofgoods4,529,929.13NO1,444,828.32
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.Purchaseofgoods4,477,305.68NO1,124,358.11
SinopharmAdvanced(Shanghai)MedicineDeviceCo.,Ltd.Purchaseofgoods4,359,697.01NO649,215.02
BeijingHuashengPharmaceuticalBiotechnologyDevelopmentCo.,Ltd.Purchaseofgoods4,230,984.00NO1,450,504.18
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.Purchaseofgoods4,051,307.75NO2,283,462.26
TaijiGroupChongqingTongjungePharmaceuticalCo.,Ltd.Purchaseofgoods3,955,453.47NO-
SinopharmFengliaoxing(Foshan)PharmaceuticalDrugsCo.,Ltd.Purchaseofgoods3,765,974.30NO2,745,736.27
ShanghaiShangshengBiologicalProductsCo.,Ltd.Purchaseofgoods3,748,316.28NO1,506,116.50
SinopharmHoldingChuangkeMedicialTechnology(Guangxi)Co.,Ltd.Purchaseofgoods3,741,777.16NO796,460.19
ShanghaiInternationalPharmaceuticalTradeCo.,Ltd.Purchaseofgoods3,215,831.81NO3,897,527.05
SinopharmGroupRongshengPharmaceuticalCo.,Ltd.Purchaseofgoods2,917,177.22NO1,911,884.91

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
ChinaNationalMedicalDeviceCo.,Ltd.Purchaseofgoods2,866,958.608,910,000,000.00NO26,548.67
SinopharmHoldingHeilongjiangCo.,Ltd.Purchaseofgoods2,700,433.59NO2,533,432.31
SinopharmHoldingHuaidejuPharmaceutical(Xiamen)Co.,Ltd.Purchaseofgoods2,654,950.93NO-
SichuanHexinPharmaceuticalCo.,Ltd.Purchaseofgoods3,903,635.62NO2,257,987.38
SinopharmHoldingWuxiCo.,Ltd.Purchaseofgoods2,439,252.13NO8,550,202.41
SinopharmHoldingHulunBuirCo.,Ltd.Purchaseofgoods2,425,267.22NO1,564,568.11
SinopharmZhonglianPharmaceuticalGroupCo.,Ltd.Purchaseofgoods2,350,922.70NO907,465.81
SinopharmHoldingBeijingKangchenBio-PharmaceuticalCo.,Ltd.Purchaseofgoods2,321,886.33NO(550,607.22)
SinopharmGroupSouthwestMedicineCo.,Ltd.Purchaseofgoods2,313,721.29NO372,966.72
SinopharmHoldingTianjinCo.,Ltd.Purchaseofgoods2,113,934.18NO2,168,770.41
SuzhouEryePharmaceuticalLimitedCompanyPurchaseofgoods1,942,102.86NO1,489,545.90
SinopharmHoldingLinfenNinglePharmaceuticalCo.,Ltd.Purchaseofgoods1,922,967.49NO160,565.02
SinopharmHoldingXinjiangSpecialDrugsKaramayPharmaceuticalCo.,Ltd.Purchaseofgoods1,801,633.72NO2,704,084.84
HunanDongtingPharmaceuticalCo.,Ltd.Purchaseofgoods1,673,060.75NO1,885,047.92
ChinaNationalPharmaceuticalIndustryCo.,Ltd.Purchaseofgoods1,658,893.69NO1,509,682.80
SinopharmHoldingDalianCo.,Ltd.Purchaseofgoods1,618,603.64NO1,450,198.00
SinopharmLiaoningMedicalEquipmentCo.,Ltd.Purchaseofgoods1,610,762.20NO3,970,884.24

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHoldingBeijingTianxingPuxinBiologicalMedicalCo.,Ltd.Purchaseofgoods1,591,292.218,910,000,000.00NO34,820,929.08
ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd.Purchaseofgoods1,553,305.70NO506,283.18
SinopharmLuya(Shandong)PharmaceuticalCo.,Ltd.Purchaseofgoods1,537,349.20NO2,381,688.57
SinopharmHoldingYanchengCo.,Ltd.Purchaseofgoods1,355,193.79NO1,623,042.70
SinopharmTongjitang(Guizhou)PharmaceuticalCo.,Ltd.Purchaseofgoods1,342,043.34NO2,616,939.67
GlaxosmithklinePharmaceuticals(Suzhou)Co.,Ltd.Purchaseofgoods1,312,782.80NO6,570,287.55
SinopharmChuankangPharmaceuticalCo.,Ltd.Purchaseofgoods1,292,333.10NO1,699,176.97
HuayiPharmaceuticalCo.,Ltd.Purchaseofgoods1,266,831.84NO176,144.72
SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,LtdPurchaseofgoods1,156,691.29NO-
SinopharmHoldingFuzhouCo.,Ltd.Purchaseofgoods1,152,589.16NO2,117,865.83
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.Purchaseofgoods1,017,142.82NO1,717,968.13
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Purchaseofgoods984,816.68NO2,391,565.82
SinopharmHoldingYunnanCo.,Ltd.Purchaseofgoods805,065.42NO143,973.45
SinopharmShantouJinshiPharmaceuticalCo.,Ltd.Purchaseofgoods781,581.70NO1,077,980.94
SinopharmHoldingAnhuiHuaningMedicineCo.,Ltd.Purchaseofgoods781,575.58NO1,434,252.18
SinopharmHoldingXinjiangSpecialDrugsKashgarPharmaceuticalCo.,Ltd.Purchaseofgoods773,057.14NO627,174.03

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.Purchaseofgoods753,274.358,910,000,000.00NO1,300,658.82
SinopharmHoldingNantongCo.,Ltd.Purchaseofgoods697,002.20NO-
SinopharmWeiqidaPharmaceuticalCo.,Ltd.Purchaseofgoods690,157.52NO668,790.52
SinopharmHoldingBiopharmaceutical(Tianjin)Co.,Ltd.Purchaseofgoods682,560.86NO414,430.28
ShanghaiTransfusionTechnologyCo.,Ltd.Purchaseofgoods667,699.12NO712,212.39
SinopharmHoldingQuanzhouCo.,Ltd.Purchaseofgoods662,423.54NO880,856.56
ShenyangHongqiPharmaceuticalCo.,Ltd.Purchaseofgoods653,104.18NO359,010.73
SinopharmHoldingSpecialDrugsShiheziPharmaceuticalCo.,Ltd.Purchaseofgoods607,344.52NO132,136.11
ChengduInstituteofBiologicalProductsCo.,Ltd.Purchaseofgoods562,767.00NO475,738.80
SinopharmHoldingBenxiCo.,Ltd.Purchaseofgoods559,188.59NO-
ShanghaiMerroPharmaceuticalCo.,Ltd.Purchaseofgoods542,162.94NO749,178.23
SinopharmGroupYibinPharmaceuticalsCo.,Ltd.Purchaseofgoods536,821.03NO433,524.84
SinopharmholdingsHubeiCo.,Ltd.Purchaseofgoods531,440.87NO58,060,607.87
YunnanTianjiangYifangPharmaceuticalCo.,Ltd.Purchaseofgoods497,209.07NO-
GuilinPharmaceuticalCo.,Ltd.Purchaseofgoods491,568.15NO351,228.30
SinopharmholdingsBeijingHuahongCo.,Ltd.Purchaseofgoods471,946.23NO2,856,735.70
SinopharmHoldingShanghaiBiomedicineCo.,Ltd.Purchaseofgoods408,296.15NO282,209.74
SinopharmGroupShanxiRuifulaiCo.,Ltd.Purchaseofgoods404,922.04NO-
SinopharmHoldingYangzhouMedicalTreatmentEquipmentCo.,Ltd.Purchaseofgoods371,264.92NO1,209,038.66

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2010
WuhanZhongshengYujinBiologicalMedicineCo.,Ltd.Purchaseofgoods354,016.008,910,000,000.00NO-
ShantouJinshiPowderInjectionCo.,Ltd.Purchaseofgoods351,589.74NO300,803.34
SinopharmHoldingChifengCo.,Ltd.Purchaseofgoods347,527.93NO-
SinopharmXinjiangPharmaceuticalCo.,Ltd.Purchaseofgoods341,818.02NO368,206.57
SinopharmHoldingZhejiangCo.,Ltd.Purchaseofgoods317,534.11NO194,238.02
SinopharmHoldingPuerCo.,Ltd.Purchaseofgoods296,085.02NO446,396.77
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.Purchaseofgoods295,539.81NO2,181,662.15
SinopharmWuhanBloodProductsCo.,Ltd.Purchaseofgoods281,200.00NO24,800.00
JinzhouAvancMedicineCo.,Ltd.Purchaseofgoods265,412.37NO2,780,545.99
SinopharmHoldingHubeiLikangPharmaceuticalCo.,Ltd.Purchaseofgoods260,747.00NO-
SinopharmHoldingHainanHongyiCo.,Ltd.Purchaseofgoods258,280.38NO17,043.48
SinopharmHoldingPutianCo.,Ltd.Purchaseofgoods257,643.78NO466,764.43
SinopharmSichuanPharmaceuticalCo.,Ltd.Purchaseofgoods253,894.16NO144,648.00
SinopharmHoldingBayannurCo.,Ltd.Purchaseofgoods234,878.49NO667,045.83
SinopharmHoldingAnhuiCo.,Ltd.Purchaseofgoods180,725.82NO2,398,623.06
TaijiGroupPurchaseofgoods166,678.24NO-
JiangsuHuanghePharmaceuticalCo.,Ltd.Purchaseofgoods162,782.30NO-
SichuanJiangyouZhongbaAconitiScienceandTechnologyDevelopmentCo.,Ltd.Purchaseofgoods142,201.82NO-
SinopharmHoldingHunanPharmaceuticalDevelopmentCo.,Ltd.Purchaseofgoods136,860.13NO157,222.35

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
TheFourthPharmaceuticalCo.,Ltd.ofZhonglianGroupPurchaseofgoods124,447.868,910,000,000.00NO(1,875.00)
HunanYaoyouMedicinesCo.,Ltd.Purchaseofgoods121,513.28NO-
SinopharmHoldingShanxiMingdikangMedicineCo.,Ltd.Purchaseofgoods110,206.77NO42,957.42
SinopharmHoldingNanpingNewforceCo.,LtdPurchaseofgoods105,027.03NO122,980.30
SinopharmHoldingXinye(Hubei)MedicineCo.,Ltd.Purchaseofgoods101,222.21NO56,646.03
SinopharmHoldingChangshaCo.,Ltd.Purchaseofgoods84,558.36NO1,783,867.44
TaijiGroupZhejiangDongfangPharmaceuticalCo.,Ltd.Purchaseofgoods79,709.72NO-
SinopharmHoldingXinjiangSpecialDrugsYiliPharmaceuticalCo.,Ltd.Purchaseofgoods68,861.47NO-
SinopharmHoldingKunmingCo.,Ltd.Purchaseofgoods58,396.46NO-
TaijiGroupSichuanMianyangPharmaceuticalCo.,Ltd.Purchaseofgoods48,842.47NO-
SinopharmHoldingChangdeCo.,Ltd.Purchaseofgoods48,318.59NO-
SinopharmHoldingSanyiMedicine(Wuhu)Co.,Ltd.Purchaseofgoods37,095.80NO46,347.42
SinopharmShyndecPurchaseofgoods36,180.53NO9,493,936.28
SinopharmHoldingOrdosCo.,Ltd.Purchaseofgoods35,001.77NO-
SinopharmInnerMongoliaMedicalEquipmentCo.,Ltd.Purchaseofgoods35,000.88NO-
SinopharmJingfang(Anhui)PharmaceuticalCo.,Ltd.Purchaseofgoods20,306.19NO766,468.52
TaijiGroupSichuanNanchongPharmaceuticalCo.,Ltd.Purchaseofgoods18,751.86NO-
SinopharmHoldingDalianHechengCo.,Ltd.Purchaseofgoods17,404.47NO48,749.02

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHoldingHainanCo.,Ltd.Purchaseofgoods13,042.998,910,000,000.00NO111,398.23
SinopharmMedicalInstrument(Huizhou)Co.,Ltd.Purchaseofgoods10,618.77NO-
SinopharmGroupMedicineLogisticCo.,Ltd.Purchaseofgoods9,450.54NO11,161.53
SinopharmHoldingChangshaGaoxinMedicineCo.,Ltd.Purchaseofgoods9,380.53NO32,964.60
SinopharmHoldingNanjingWendePharmaceuticalCo.,Ltd.Purchaseofgoods9,026.54NO9,026.54
SinopharmGroupLinfenCo.,Ltd.Purchaseofgoods8,257.25NO107,014.36
SinopharmDevice(Guangdong)MedicalTechnologyCo.,Ltd.Purchaseofgoods6,578.33NO52,672.56
SinopharmLiaoningMedicalEquipmentCo.,Ltd.Purchaseofgoods4,424.78NO-
SinopharmHoldingZhangzhouCo.,Ltd.Purchaseofgoods2,835.40NO73,228.32
SinopharmHoldingYangzhouBiologicalProductsCo.,Ltd.Purchaseofgoods1,850.00NO49,400.00
SuzhouLaishiTransfusionEquipmentPurchaseofgoods1,019.47NO-
NatonBiotechnology(Beijing)Co.,Ltd.Purchaseofgoods63.72NO-
SinopharmShenzhenMedicineDeviceCo.,Ltd.Purchaseofgoods-NO4,689,458.43
ShanghaiZenoBiotechnologyCo.,Ltd.Purchaseofgoods-NO4,424,779.00
SinopharmHoldingHubeiGuodaPharmacyCo.,Ltd.Purchaseofgoods-NO3,749,173.52
ChinaNationalScientificInstruments&MaterialsI&EShenzhenCo.,Ltd.Purchaseofgoods-NO3,716,814.16
SinopharmHoldingChongqingCo.,Ltd.Purchaseofgoods-NO3,106,188.00
SinopharmMedicalInstrumentHainanCo.,Ltd.Purchaseofgoods-NO2,109,734.51

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHoldingWuhanHongshenMedicineCo.,Ltd.Purchaseofgoods-8,910,000,000.00NO1,415,929.21
Sinopharm(Dalian)MedicialDeviceCo.,Ltd.Purchaseofgoods-NO928,255.76
SinopharmHoldingChuangkeYuanzheMedicialTechnology(Shanghai)Co.,Ltd.Purchaseofgoods-NO672,566.40
SinopharmHoldingLinyiMedicialDeviceCo.,Ltd.Purchaseofgoods-NO633,769.93
SinopharmHebeiMedicalInstrumentCo.,Ltd.Purchaseofgoods-NO607,424.77
SinopharmGuangdongGlobalPharmaceuticalCo.,Ltd.Purchaseofgoods-NO581,499.90
LiaoningPilotFreeTradeZoneChinaMedicalDeviceTechnologyCo.,Ltd.Purchaseofgoods-NO260,176.99
ChengduListPharmaceuticalCo.,Ltd.Purchaseofgoods-NO204,849.56
FujianChentianJinlingPharmaceuticalCo.,Ltd.Purchaseofgoods-NO138,669.72
SinopharmHoldingShanxiJinzhongCo.,Ltd.Purchaseofgoods-NO119,470.72
SinopharmHoldingShanxiRunheMedicineCo.,Ltd.Purchaseofgoods-NO93,171.55
SinopharmGroupMed-TechCo.,Ltd.Purchaseofgoods-NO92,920.35
SinopharmDezhong(Foshan)PharmaceuticalCo.,Ltd.Purchaseofgoods-NO53,734.51
SinopharmHoldingRizhaoCo.,Ltd.Purchaseofgoods-NO34,498.69
SinopharmHoldingJiangxiCo.,Ltd.Purchaseofgoods-NO28,244.60
SinopharmHoldingChengduPharmaceuticalCo.,Ltd.Purchaseofgoods-NO11,307.62
SinopharmHoldingShiyanCo.,Ltd.Purchaseofgoods-NO2,088.50
SinopharmHoldingUlanqabCo.,Ltd.Purchaseofgoods-NO2,043.91

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmHoldingShanxiJinchengCo.,Ltd.Purchaseofgoods-8,910,000,000.00NO171.81
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)NO126,066.66
SinopharmGroupShanghaiMedicineDeviceCo.,Ltd.Purchaseofgoods(209.96)NO308,584.08
SinopharmHoldingDezhouCo.,Ltd.Purchaseofgoods(223.18)NO108,484.59
SinopharmHoldingTaizhouCo.,Ltd.Purchaseofgoods(350.45)NO81,224.26
ChinaMedicalEquipmentShandongCo.,Ltd.Purchaseofgoods(2,177.00)NO14,427.65
SinopharmHoldingGuang’anCo.,Ltd.Purchaseofgoods(6,594.69)NO-
SinopharmGroupMedicineLogisticCo.,Ltd.Storageandtransportcost,informationsystemaccessfee9,631,686.3380,000,000.00NO8,264,849.06
SinopharmGroupConsultingservicefee2,269,577.44NO-
SinopharmHuixinqinyuan(Beijing)TechnologyDevelopmentCo.,Ltd.Consultingservicefee658,831.86NO-
SinopharmHoldingZhihuiminsheng(Tianjin)PharmaceuticalCo.,Ltd.Storageandtransportcost;Consultingservicefee518,400.00NO-
ShanghaiTongyuInformationTechnologyCo.,Ltd.Consultingservicefee,informationsystemaccessfee476,169.82NO187,905.67

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

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedpartyTypeoftransactionForthesixmonthsended30June2021ApprovedtradingquotawhetherthetransactionlimitisexceededForthesixmonthsended30June2020
SinopharmForeignTrade(Beijing)Co.,Ltd.Equipmentmaintenancefee141,592.9280,000,000.00NO-
SinopharmHoldingHenanCo.,Ltd.Consultingservicefee106,046.95NO-
ChinaNationalPharmaceuticalForeignTradeCorporationEquipmentmaintenancefee68,938.05NO-
GuorunMedicalSupplyChainService(Shanghai)Co.,Ltd.Informationsystemaccessfee49,056.60NO12,264.15
SinopharmGroupGuangdongMedicineDeviceCo.,Ltd.Operationservicefee34,651.32NO-
XinjiangBaitongPropertyServiceCo.,Ltd.Propertyfee1,150.44NO-
SinopharmHoldingJilinCo.,Ltd.Consultingservicefee109.23NO-
SinopharmHealthOnlineCo.,Ltd.Consultingservicefee-NO7,008,590.59
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.Consultingservicefee-NO1,492,677.11
SinopharmPharmaceuticalLogisticsCo.,Ltd.Storageandtransportcost;Consultingservicefee-NO93,635.83
SinopharmLogisticsBeijingCo.,Ltd.Storageandtransportcost;Consultingservicefee-NO54,060.78

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

(1)Relatedpartytransactions-goodsandservices(Continued)Saleofgoodsandrenderingofservices

RelatedPartyTypeoftransactionForthesixmonthsended30June2021Forthesixmonthsended30June2020
SinopharmGroupSaleofgoods139,234,971.54110,426,213.05
FoshanChanchengPharmaceuticalCo.,Ltd.Saleofgoods68,883,280.0049,079,098.20
SinopharmHoldingHainanCo.,Ltd.Saleofgoods56,647,385.5560,158,578.46
ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.Saleofgoods51,633,689.1061,896,587.65
SinopharmLerentangMedicineCo.,Ltd.Saleofgoods30,299,085.6122,566,166.73
SinopharmHoldingBeijingCo.,Ltd.Saleofgoods20,211,375.9812,909,717.52
SinopharmHoldingHainanHongyiCo.,Ltd.Saleofgoods19,732,331.4313,367,342.74
SinopharmHoldingWenzhouCo.,Ltd.Saleofgoods16,294,606.3414,794,703.17
SinopharmLingyunBiopharmaceutical(Shanghai)Co.,Ltd.Saleofgoods15,169,815.6310,455,648.05
SinopharmHoldingShandongCo.,Ltd.Saleofgoods14,001,108.696,925,017.46
HandanSinopharmLerentangPharmacyChainCo.,Ltd.Saleofgoods13,521,643.141,075,458.43
ShenzhenHengshengHospitalSaleofgoods13,376,757.2510,629,421.43
SinopharmHoldingHenanCo.,Ltd.Saleofgoods12,870,576.339,642,957.94
FoshanChanchengCentralHospitalCo.,Ltd.Saleofgoods12,092,528.877,665,327.44
BeijingGoldenElephantFosunPharmaceuticalCo.,Ltd.Saleofgoods10,239,238.4910,679,779.77
SinopharmholdingsBeijingHuahongCo.,Ltd.Saleofgoods10,138,011.455,763,714.05
SinopharmGroupXinjiangSpecialDrugsNationalPharmaceuticalCo.,Ltd.Saleofgoods8,887,736.051,587,426.88
SinopharmHoldingNantongCo.,Ltd.Saleofgoods8,373,035.187,861,952.62
SinopharmHoldingJinzhouCo.,Ltd.Saleofgoods7,182,756.9272,477.87
SinopharmHoldingSubMarketingCenterCo.,Ltd.Saleofgoods6,713,774.055,584,808.87
SinopharmHoldingDonghongMedical(Shanghai)Co.,Ltd.Saleofgoods6,709,036.12784,084.53
SinopharmHoldingShanxiCo.,Ltd.Saleofgoods6,114,523.082,812,873.37

Notestofinancialstatements(Continued)

Forthesixmonthsended30June2021(AllamountsinRenminbi“RMB”unlessotherwisestated)

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedPartyTypeoftransactionForthesixmonthsended30June2021Forthesixmonthsended30June2020
SinopharmGroup(Tianjin)EasternBokangPharmaceuticalCo.,Ltd.Saleofgoods5,801,373.684,803,387.32
SinopharmHoldingHubeiCo.,Ltd.Saleofgoods5,725,139.4118,913,611.09
SinopharmHoldingYangzhouCo.,Ltd.Saleofgoods5,243,275.793,233,686.62
SinopharmLerentang(Langfang)PharmaceuticalTradeCo.,Ltd.Saleofgoods4,540,492.3118,101.77
FoshanChanyixingMedicineDevelopmentCoLtd.Saleofgoods4,356,266.823,705,867.85
SinopharmLerentangTangshanMedicineCo.,Ltd.Saleofgoods3,561,044.84661,960.55
SinopharmLerentangXingtaiPharmaceuticalCo.,Ltd.Saleofgoods3,311,038.77-
SinopharmLerentangHebeiMedicalInstrumentTradeCo.,Ltd.Saleofgoods3,187,482.23492,572.13
SinopharmHoldingShanghaiLikangPharmaceuticalCo.,Ltd.Saleofgoods2,986,283.703,680,499.78
SinopharmHoldingJilinCo.,Ltd.Saleofgoods2,942,030.471,599,917.79
SinopharmHoldingTianjinCo.,Ltd.Saleofgoods2,941,625.351,822,107.93
ShanghaiMerroPharmaceuticalCo.,Ltd.Saleofgoods2,858,507.183,312,398.44
SinopharmLerentangQinhuangdaoPharmaceuticalTradingCo.,LtdSaleofgoods2,637,455.3516,467.26
SinopharmHoldingShanxiCo.,Ltd.Saleofgoods2,569,451.463,053,010.35
SinopharmHoldingGuizhouMedicalDeviceCo.,Ltd.Saleofgoods2,506,974.27255,175.71
SinopharmLerentangBaodingTradingCo.,Ltd.Saleofgoods2,386,692.15-
SinopharmLerentangBaodingHongkangPharmaceuticalChainCo.,Ltd.Saleofgoods2,371,766.361,716,599.10
HutchisonWhampoaSinopharmPharmaceuticals(Shanghai)Co.,Ltd.Saleofgoods2,280,410.621,724,205.31
SinopharmSichuanPharmaceuticalCo.,Ltd.Saleofgoods2,270,896.315,574,204.53
SinopharmHoldingYunnanCo.,Ltd.Saleofgoods2,197,412.021,875,892.22
SinopharmHoldingHunanCo.,Ltd.Saleofgoods2,170,058.361,594,378.72

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

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedPartyTypeoftransactionForthesixmonthsended30June2021Forthesixmonthsended30June2020
SinopharmHoldingShanxiCo.,Ltd.Saleofgoods1,759,444.55190,595.28
SinopharmHoldingXinjiangSpecialDrugsWesternPharmaceuticalCo.,Ltd.Saleofgoods1,732,284.482,349,651.28
SinopharmHoldingAnhuiCo.,Ltd.Saleofgoods1,714,909.943,490,356.70
SinopharmGroupSouthwestMedicineCo.,Ltd.Saleofgoods1,686,783.921,891,076.22
SinopharmLerentangHengshuiMedicineCo.,Ltd.Saleofgoods1,541,096.39158,792.13
SinopharmHoldingDalianCo.,Ltd.Saleofgoods1,505,999.431,320,364.57
ShanghaiGuodaLingyunPharmacyCo.,Ltd.Saleofgoods1,444,193.49786,887.13
SinopharmHoldingAnshanCo.,Ltd.Saleofgoods1,410,135.08-
ChinaNationalMedicinesCo.,Ltd.Saleofgoods1,269,341.132,178,096.79
SinopharmHoldingJiangxiCo.,Ltd.Saleofgoods1,230,819.17499,633.43
SinopharmHolding(Hubei)HankouPharmacyCo.,Ltd.Saleofgoods1,164,258.24-
SinopharmHoldingAnhuiPharmaceuticalCo.,Ltd.Saleofgoods1,152,047.45693,361.90
SinopharmHoldingXuzhouCo.,Ltd.Saleofgoods1,108,631.541,271,612.79
ShanghaiLiyiPharmacyCo.,LtdSaleofgoods1,102,980.44690,837.84
SinopharmHoldingShangqiuCo.,Ltd.Saleofgoods1,039,646.02-
SinopharmHoldingFujianCo.,Ltd.Saleofgoods992,070.4351,109,674.50
SinopharmHoldingGansuCo.,Ltd.Saleofgoods863,189.43662,808.94
SinopharmHoldingGuizhouCo.,Ltd.Saleofgoods836,038.24749,381.57
SinopharmHoldingNingxiaCo.,Ltd.Saleofgoods766,385.82607,397.50
SinopharmHoldingChongqingTaiminPharmaceuticalCo.,Ltd.Saleofgoods675,555.69174,838.95
SinopharmHoldingWuxiCo.,Ltd.Saleofgoods651,490.72545,114.34
SinopharmHoldingAnshunCo.,Ltd.Saleofgoods637,336.24626,960.18
SinopharmHoldingTongrenCo.,Ltd.Saleofgoods608,054.18347,824.70

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

X.Relatedpartyrelationshipsandtransactions(Continued)

5.MajortransactionsbetweentheGroupanditsrelatedparties(Continued)

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

RelatedPartyTypeoftransactionForthesixmonthsended30June2021Forthesixmonthsended30June2020
SinopharmHoldingLerentangHebeiPharmaceuticalCo.,Ltd.Saleofgoods585,023.94477,391.38
SinopharmHoldingGuizhou(Zunyi)MedicalEquimentCo.,Ltd.Saleofgoods551,323.97722,382.88
SinopharmHoldingJiangsuCo.,Ltd.Saleofgoods526,573.72578,180.26
SinopharmHoldingZunyiCo.,Ltd.Saleofgoods497,385.521,078,617.62
SinopharmHoldingWuhuCo.,Ltd.Saleofgoods483,333.34421,019.02
SinopharmLerentangCangzhouMedicineCo.,Ltd.Saleofgoods441,107.9727,143.36
SinopharmHoldingDalianHechengCo.,Ltd.Saleofgoods440,610.0739,122.93
ShenzhenChindexMedicalBeautyClinicSaleofgoods388,613.6797,277.83
SinopharmHoldingShanghaiBiomedicineCo.,Ltd.Saleofgoods367,752.21282,212.28
ShanghaiShengxinPharmacyCo.,Ltd.Saleofgoods352,446.68-
SinopharmLerentangQinhuangdaoMedicineCo.,Ltd.Saleofgoods352,417.43107,256.67
SinopharmLerentangTangshanMedicineCo.,Ltd.Saleofgoods330,239.40-
SinopharmBaiseDeviceCo.,Ltd.Saleofgoods328,663.72102,654.87
SinopharmHoldingShanxiPharmacyCo.,Ltd.Saleofgoods274,021.65-
SinopharmHoldingQinghaiCo.,Ltd.Saleofgoods262,068.06253,282.77
JiangmenXinhuiDistrictJianfengPharmaceuticalCo.,Ltd.Saleofgoods253,856.26-
SinopharmHoldingHongheCo.,Ltd.Saleofgoods233,627.39411,978.99