ChinaNationalAccordMedicinesCorporationLtd.
AnnualReport2021
March2022
SectionI.ImportantNotice,ContentsandInterpretationBoardofDirectors,SupervisoryCommittee,alldirectors,supervisorsandseniorexecutivesofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoastheCompany)herebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthereality,accuracyandcompletionofthewholecontents.LinZhaoxiong,PrincipaloftheCompany,GuGuolin,personinchargerofaccountingworksandWangYing,personinchargeofaccountingorgan(accountingprincipal)herebyconfirmthattheFinancialReportof2021AnnualReportisauthentic,accurateandcomplete.AlldirectorsareattendedtheBoardMeetingforreportdeliberation.TheprofitdistributionplanthatdeliberatedandapprovedbytheBoardis:
basedontotalstockissued428,126,983shares,distributed6.00Yuan(taxincluded)bonusincashforevery10-shareholdbyallshareholders,0sharesbonusissued(taxincluded)andnocapitalizingofcommonreservescarriedout.
Contents
SctionIImportantNotice,ContentsandInterpretation ...... 1
SectionIICompanyProfileandMainFinancialIndexes ...... 5
SectionIIIManagementDiscussionandAnalysis ...... 10SectionIVCorporateGovernance..................................................................错误！未定义书签。SectionVEnviornmentalandSocialResponsibility.....................................错误！未定义书签。SectionVIImportantEvents ...... 83
SectionVIIChangesinsharesandparticularaboutshareholders...........错误！未定义书签。9SectionVIIIPreferredStock.........................................................................错误！未定义书签。9SectionIXBonds............................................................................................错误！未定义书签。0SectionXFinancialReport............................................................................错误！未定义书签。1
DocumentsAvailableforReference
I.ThefinancialstatementscarriedwiththesignatureandsealsofthepersoninchargeoftheCompany,personinchargerofaccountingworksandpersoninchargeofaccountingorgan(accountingsupervisor);
II.TheoriginalauditreportbearingthesealofaccountingfirmandtheoriginalauditreportsignedandsealbytheCPA;
III.OriginaltextofalldocumentsoftheCompanyaswellasthemanuscriptoftheannouncementdisclosedonthewebsitedesignatedbyCSRC.
Interpretation
Items
| Items | Refersto | Contents |
| ListedCompany,Company,theCompany,SinopharmAccord,theGroup | Refersto | ChinaNationalAccordMedicinesCorporationLtd. |
| SINOPHARM | Refersto | ChinaNationalPharmaceuticalGroupCorporation |
| SinopharmHolding | Refersto | SinopharmGroupCo.,Ltd,ControllingshareholderoftheCompany |
| CompanyLaw | Refersto | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | Refersto | SecuritiesLawofthePeople’sRepublicofChina |
| Yuan,10thousandYuan,100millionYuan | Refersto | RMB,RMB10thousand,RMB100million |
| Terminology: | Refersto | |
| 4Dbusiness | Refersto | SPDhospitallogisticssupplychainextensionbusiness,IVDdiagnosticreagentbusiness,CSSDdisinfectionservice,andMWDequipmentlifecyclemanagementbusiness |
| GPO | Refersto | Grouppurchasingorganizations |
| Abbreviation: | Refersto | |
| SinopharmHoldingGuangzhou | Refersto | SinopharmHoldingGuangzhouCo.,Ltd. |
| GuodaDrugstore | Refersto | SinopharmHoldingGuodaDrugstoreCo.,Ltd. |
| SinopharmHoldingGuangxi | Refersto | SinopharmHoldingGuangxiCo.,Ltd. |
| ChinaNationalZhijun | Refersto | ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd. |
| ZhijunPharmacyTrade | Refersto | ShenzhenZhijunPharmacyTradeCo.,Ltd. |
| ZhijunPingshan | Refersto | ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. |
| MainLuckPharmaceuticals | Refersto | ShenzhenMainLuckPharmaceuticalsInc. |
SectionIICompanyProfileandMainFinancialIndexesI.Companyinformation
Shortformofthestock
| Shortformofthestock | SinopharmAccord,AccordB | Stockcode | 000028,200028 |
| Stockexchangeforlisting | ShenzhenStockExchange | ||
| NameoftheCompany(inChinese) | 国药集团一致药业股份有限公司 | ||
| ShortformoftheCompany(inChinese) | 国药一致 | ||
| ForeignnameoftheCompany(ifapplicable) | ChinaNationalAccordMedicinesCorporationLtd. | ||
| ShortformofforeignnameoftheCompany(ifapplicable) | SinopharmAccord | ||
| Legalrepresentative | LinZhaoxiong | ||
| Registrationsadd. | AccordPharm.Bldg,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | ||
| Codeforregistrationsadd | 518029 | ||
| Historicalchangesintheregistrationaddress | Nochanges | ||
| Officesadd. | AccordPharm.Bldg,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | ||
| Codesforofficeadd. | 518029 | ||
| Company’sInternetWebSite | http://www.szaccord.com.cn | ||
| gyyz0028@sinopharm.com | |||
II.Person/Waytocontact
| SecretaryoftheBoard | Securitiesaffairsrepresentative | |
| Name | ChenChangbing | WangZhaoyu |
| Contactadd. | AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince | AccordPharm.Bldg.,No.15,BaGuaSiRoad,FutianDistrict,Shenzhen,GuangdongProvince |
| Tel. | +(86)75525875222 | +(86)75525875222 |
| Fax. | +(86)75525195435 | +(86)75525195435 |
| gyyzinvestor@sinopharm.com | gyyz0028@sinopharm.com |
III.Informationdisclosureandpreparationplace
| WebsiteoftheStockExchangewheretheannualreportoftheCompanydisclosed | SecuritiesTimes,ChinaSecuritiesJournal,HongKongCommercialDaily |
| MediaandWebsitewheretheannualreportofthe | http://www.szse.cn;http://www.cninfo.com.cn |
Companydisclosed
| Companydisclosed | |
| Preparationplaceforannualreport | SecretariatoftheBoardofDirectors |
IV.RegistrationchangesoftheCompany
| Organizationcode | 91440300192186267U |
| Changesofmainbusinesssincelisting(ifapplicable) | Nochange. |
| Previouschangesforcontrollingshareholders(ifapplicable) | Nochange. |
V.Otherrelevantinformation
CPAengagedbytheCompany
| NameofCPA | Ernst&YoungCPA(SpecialGeneralpartnership) |
| Officesadd.forCPA | 21/F,ChinaResourcesBuilding,No.5001,ShennanEastRoad,LuohuDistrict,Shenzhen |
| Signingaccountant | DengDongmei,LiYuanfeng |
SponsorengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableFinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinreportingperiod
□Applicable√NotapplicableVI.Mainaccountingdataandfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
| 2021 | 2020 | Changesinthecurrentyearoverthepreviousyear(+,-) | 2019 | |
| Operatingrevenue(RMB) | 68,357,809,571.99 | 59,649,455,012.03 | 14.60% | 52,786,807,476.28 |
| NetprofitattributabletoshareholdersofthelistedCompany(RMB)(Note1) | 1,336,427,752.22 | 1,401,892,593.23 | -4.67% | 1,267,931,291.32 |
| NetprofitattributabletoshareholdersofthelistedCompanyafterdeductingnon-recurringgainsandlosses(RMB) | 1,286,305,975.28 | 1,369,652,035.50 | -6.09% | 1,226,765,271.97 |
| Netcashflowarisingfromoperatingactivities(RMB) | 1,655,180,976.87 | 1,502,746,598.47 | 10.14% | 2,012,653,189.74 |
Basicearningspershare(RMB/Share)(Note1)
| Basicearningspershare(RMB/Share)(Note1) | 3.12 | 3.27 | -4.59% | 2.96 |
| Dilutedearningspershare(RMB/Share) | 3.12 | 3.27 | -4.59% | 2.96 |
| WeightedaverageROE(Note1) | 9.29% | 10.49% | 1.20percentagepointsdown | 10.31% |
| Year-endof2021 | Year-endof2020 | Changesatendofthecurrentyearcomparedwiththeendofpreviousyear(+,-) | Year-endof2019 | |
| Totalassets(RMB) | 42,783,682,431.81 | 39,594,533,471.65 | 8.05% | 34,028,843,214.20 |
| Netassetsattributabletoshareholderoflistedcompany(RMB) | 14,924,938,052.50 | 13,948,322,652.33 | 7.00% | 12,911,140,435.88 |
Note1:NetprofitattributabletoshareholdersofthelistedCompanyhas4.67%declinedfromayearearlier,basicEPSdrop4.59%correspondingly,weightedaverageROEdecreasedby1.20percentagepoints,mainlybecauseaccordingtotheresultsofimpairmenttestsongoodwillandintangibleassetsfortheyear,followtheprincipleofprudence,thegoodwillandintangibleassets(brandrightsandsalesnetwork)fromsubordinatesubsidiary-ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd(andtheSinopharmHoldingTianhePharmaceuticalCo.,Ltd)arebeingaccruedbytheCompany,foundmoreinNoticeonAssetsImpairmentProvisionbyChinaNationalAccordMedicinesCorporationLtd.(NoticeNo.:2022-03).Meanwhile,thereare1155newdirector-operatedstoresopenedin2021intheretailsector,withthelargeinitialinvestmentandnonbenefitsgeneratedtemporaryandmultipleinfluencesasindustrypoliciesandepidemic,theprofitspaceshrinks.Theloweroneofnetprofitbeforeandafterdeductingtheextraordinarygains/lossesinthelastthreefiscalyearsisnegative,andtheauditreportoflastyearshowsthattheabilitytocontinueoperatingisuncertain
□Yes√NoTheloweroneofnetprofitbeforeandafterdeductingtheextraordinarygains/lossesisnegative
□Yes√NoVII.DifferenceoftheaccountingdataunderaccountingrulesinandoutofChina
1.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothIAS(InternationalAccountingStandards)andChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√Notapplicable
TheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherIAS(InternationalAccountingStandards)orChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.
2.Differenceofthenetprofitandnetassetsdisclosedinfinancialreport,underbothforeignaccountingrulesandChineseGAAP(GenerallyAcceptedAccountingPrinciples)
□Applicable√NotapplicableTheCompanyhadnodifferenceofthenetprofitornetassetsdisclosedinfinancialreport,undereitherforeignaccountingrulesorChineseGAAP(GenerallyAcceptedAccountingPrinciples)intheperiod.VIII.Quarterlymainfinancialindex
InRMB
Firstquarter
| Firstquarter | Secondquarter | Thirdquarter | Fourthquarter | |
| Operatingrevenue | 16,049,966,325.75 | 17,113,125,561.64 | 17,046,925,131.18 | 18,147,792,553.42 |
| Netprofitattributabletoshareholdersofthelistedcompany | 328,800,560.24 | 412,644,453.01 | 332,710,261.54 | 262,272,477.43 |
| Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses | 321,593,612.98 | 399,360,795.24 | 323,929,049.31 | 241,422,517.75 |
| Netcashflowarisingfromoperatingactivities | -306,748,999.24 | 1,536,122,282.81 | 190,693,254.22 | 235,114,439.08 |
Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedinthecompany’squarterlyreportandsemi-annualreport
□Yes√No
IX.Itemsandamountsofextraordinaryprofit(gains)/loss
√Applicable□Notapplicable
InRMB
| Item | 2021 | 2020 | 2019 | Note |
| Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets) | 2,819,900.34 | 5,969,522.10 | 2,340,925.97 | Thegainsondisposalofright-to-useassesarisingfromoff-leaseintheperiod |
| Governmentalsubsidyreckonedintocurrentgains/losses(whilecloselyrelatedwiththe | 75,900,940.54 | 65,568,137.35 | 49,299,242.48 | Mainlyforreceivingofallkindsofspecialsubsidies |
normalbusinessoftheCompany,thegovernmentsubsidythataccordwiththeprovisionofnationalpoliciesandarecontinuouslyenjoyedinlinewithacertainstandardquotaorquantityareexcluded)
| normalbusinessoftheCompany,thegovernmentsubsidythataccordwiththeprovisionofnationalpoliciesandarecontinuouslyenjoyedinlinewithacertainstandardquotaorquantityareexcluded) | etc.intheperiod | |||
| Investmentcostswhileacquiringsubsidiaries,jointventuresandassociatedenterprise,lessthanfairvalueoftheidentifiablenetassetsfrominvestedenterprisewhichshouldbeenjoined | 219,279.00 | 70.96 | 14.65 | Negativegoodwillfromsubsidiaryacquisition. |
| Currentnetgain/lossesofthesubsidiarymergerunderthesamecontrolfrombeginningoftheperiodtocombinationdate | -4,059,241.89 | |||
| Switchbackofprovisionfordepreciationofaccountreceivablethatindividuallytestedforimpairment | 1,491,750.76 | 578,362.65 | 1,310,345.38 | |
| Gainsandlossesfromexternalentrustedloans | 3,460,037.16 | |||
| Consigningfeereceivedforconsignedoperation | 961,488.75 | |||
| Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems | 20,642,938.09 | -11,819,894.60 | 17,179,002.78 | Thenon-operatingincomearisingfromthewrittenoffamountthatdoesnotneedtobepaidduringtheperiod |
| Othergains/lossessatisfyadefinitionofextraordinarygains/losses | 3,891,236.81 | 3,835,445.51 | 508,168.93 | |
| Less:Impactonincometax | 24,001,469.59 | 16,223,813.42 | 17,317,723.70 | |
| Impactonminorityshareholders’equity(post-tax) | 30,842,799.01 | 16,628,761.57 | 11,554,752.41 | |
| Total | 50,121,776.94 | 32,240,557.73 | 41,166,019.35 | -- |
Detailsofothergains/lossessatisfyadefinitionofextraordinarygains/losses:
□Applicable√NotapplicableTherearenoothergains/lossesitemsthatsatisfythedefinitionofextraordinarygains/lossesintheCompany.Explaintheitemsdefinedasextraordinaryprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
□Applicable√NotapplicableTherearenoitemsdefinedasextraordinaryprofit(gain)/lossaccordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss
SectionIIIManagementDiscussionandAnalysisI.IndustrytheCompanyoperatesduringthereportingperiodTheCompanyshallcomplywiththerelevantdisclosurerequirementforretailingindustriesofShenzhenStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesNo.3-DisclosureofIndustryInformation
(1)Macroenvironmentoftheindustry2021isthefirstyearofChina’s14
thFive-YearPlan,macroenvironmentcontinuestochanges.Undertheepidemicbackground,China’seconomycontinuestorecoverwithsteadygrowthinGDPandhigh-qualityindevelopment;withfrequentlyintroductionofthemedicalreformpolicy,thecountry’simplementationofHealthyChinaStrategyhaspromotedthebalanceddistributionofhigh-qualitymedicalresources;Theaggravatingtrendofagingpopulationanduniversalthree-childpolicymadethemarketdemandofhealthindustry,sanatoriaserviceindustrycombiningmedicalcare&healthcareandpediatricdrugsgettinghigher.WiththereleaseofOutlineDevelopmentPlanfortheGuangdong-HongKong-MacaoGreaterBayAreaandintroductionofseveralpolices,theconstructionofGreaterBayAreaintermsofhealthcareearnsanewprofit.
(2)Basicinformation,developmentstagesandperiodicfeaturesoftheindustryIn2021,thepharmaceuticalindustryembracegreaterchallengesandopportunitiesduetothecontinuessoaringofpharmaceuticalmarket,sustainabledeepeningofmedicalinsurance,hospitalanddrugindustryco-reformationandintensiveintroductionofmedicalindustry.
1.DevelopmentofpharmaceuticalterminalmarketIn2021,terminalmarketofthepharmaceuticalstartingwarmingup.However,affectedbythenumerousspreadofepidemicandaccelerationofthecentralizedprocurement,developmentofpharmaceuticalterminalmarketcontinuestobeunderpressure.AccordingtothestatisticsofthePDB(datareleasedbyPHIIC)domesticsamplehospitalsmarket,themarketsizeofsamplehospitalsinthefirstthreequartersof2021reboundedby10.24%comparedtothesameperiodof2020.However,duetothelowerbasenumberin2020andaffectedbyfactorsasepidemicandcentralizedprocurement,thegrowthofhospitalmarketmonth-on-monthcontinuestoslowdown.Thethirdquarterof2021onlyhas1.86%upfromthesecondquarter,thesalesfromhospitalmarketinthewholeyearof2021haveacertaingapwiththatof2019.
AccordingtothedrugretailsfromChinaMonitorHealth(CMH),salesvolumeoftheretailpharmaciesincreasedby3.0%nationwideinthefirstthreequartersof2021.Inthesecondhalfoftheyear,undertheinfluenceofrecurrenceofepidemicinlocalareasofthecountry,theepidemicprevention&controlmeasuresofretailpharmaciesinsomeareasarebecomingstricter.Banonthesaleofepidemicdrugsandaffectedbythecentralizedprocurementofmedicalinstitutions,somepatientsreturnedtothehospitalsandprimarymedicalinstitutions,thecustomerflowfromretailpharmacieshasbeenchallengedwithjust0.3%upmonth-to-monthinthethirdquarter.
2.PharmaceuticalindustrypolicesandinfluencesThemedicalindustrypolicesintensivelyintroduced,andco-reformationofmedicalinsurance,hospitalanddrugindustryarecontinueddeepeningin2021.Intermsofmedicine,mainlyinvolvesthepoliciesasdrugregistration&approval,bulkdrugs,drugpatent,drugvigilance,TCMandformulagranuledevelopment;Intermsofmedicalinsurance,policiesasvolume-basedprocurement,adjustment&negotiationofmedicalinsurancecatalogue,medicalinsurance“dualchannel”,DRG/DIPpaymentandmedicalinsuranceforurban&ruralresidentsareincluded;andintermsofmedicaltreatment,mainlyincludeslong-termprescriptions,reformsatpublichospitals,hierarchicalmedical,reformationofmedicalhealthcareservicesandexperienceofSanming’smedicalreformationinpromoting.
(1)Normalization&institutionalizationofvolume-basedprocurementandgradualexpansionofcoveragehaveagreatimpactonpharmaceuticalindustrySixbatchesofcentralizedprocurementfordrugsareorganizedbythestate,234kindsofdrugsprocuredintotal,andthemarketamountaccountsforaround30%ofthechemicalandbiologicaldrugsprocuredbypublicmedicalinstitutions.Specialprocurementofinsulinwascarriedoutin2021,expandingthecentralizedprocurementfromchemicaldrugstobiologicaldrugsforthefirsttime.Centralizedprocurementofhigh-valuemedicalconsumablesarefocusoncardiologyandorthopedics,thetwomostconcernedareastothegeneralpublic.Theconcentratedpurchaseofheartstenthasbeenrunningforayearsmoothly,and1.69millionselectedstentsbeingused,nearly
1.6timesoftheannualagreedprocurementquantity.In2021,theconcentratedpurchaseofjointprosthesisareorganizedbythestateagainstorthopedicconsumableswhichismorecomplicatetofurtherexpandthecoverageofreforms.
Impactofvolume-basedprocurementonpharmaceuticalbusiness:squeezedsalesrevenueandgrossmarginhaveagreatimpactontherevenuegrowthandprofitspaceofthecommercialenterprises;soaringdistributioncosts,higherdemandingofdeliveryfrequencyforcentralizedprocurementvarieties,especiallytheprimarycareinstitutionsnewlyoperates,thesinglepurchasingquantityissmallandfrequencyofdeliveryishigh,whichincreasesthedistributioncostssignificantly;thedistancehadbeenenlargedbetweenmedicalcommercialenterprises,andtheincrementofcentralizedprocurementvarietiesbringschallengesandopportunitiestothecommercialenterprises:duetothefactorsasscaling,collectivization,informatizaionandcapitalchain,thepunycommercialenterpriseshavebeenunabletosustainandundertake
theburdenofvolume-basedprocurement;Instead,thelargepharmaceuticalcommercialenterprisesownsnumerousvarietyofreserves,abundanceincapital,fastdeliverycapabilityandwiderangeofhospitalaccounts,whichprovidesconvenientconditionsforenterprises.Althoughtheoverallgrossprofitfromdistributiondecreased,theindustrystatuswillbefurtherconsolidatedaspartofthecostsdigestedbysizeeffectofvolume-basedprocurement.Impactofvolume-basedprocurementonpharmacyretail:Winingvarietiesareselectedbycuttingprices,andthepriceshangupsidedownamongvarietiesoperatedindrugstore,facingpressuretoreducetheprices.eventhoughparticipateincentralizedprocurementandsolvethechannelproblems,westillfacingpricepressure;monomerpharmacieshavelostthecompetitiveadvantagesunderthetrendofcentralizedprocurementwhenthespeedofmergers&acquisitionaccelerated,therateofchainfordrugstoresimproveonemorestepastheaccelerationofpharmacymergers&acquisition;speedinguptheonlinelayoutandreducingthedrugprices,thedrugstoregraduallydevelopsonlinebusinessastheoperationcostsgoesup.
(2)Promotingestablishmentofhierarchiccareandmedicalpartnerships,thegrassrootsmarketisgraduallybeingopenedupOnNovember4,2021,theNationalHealthCommissionprintedandissuedthe1,000CountiesProjects-WorkPlanoftheComprehensiveCapacityImprovementforCounty-levelHospitals(2021-2025),tomeettheneedsofpeoplesincountyaresformedicalservicesasthestartingpoint,consolidatedandexpendedtheeffectiveconnectionbetweentheachievementsinpovertyalleviationandruralrevitalization,speedingupandimprovethehierarchiccaresystem,promotingthecounty-levelhospitalstoahigh-qualitydevelopmentstage.Andstrivefor5yearsofhardworking,1000county-levelhospitalsatleastacrossthecountryhavereachedthemedicalservicestandardofthird-classhospitals,layingasolidfoundationforachievingthesolutionofgeneraldiseasesincitiesandcounties.On22November2021,thegeneralofficeofNationalHealthCommissionprintedandissuedtheNoticeonPromotionofSanming’sExperienceinHierarchicMedicalandEstablishmentofMedicalPartnership,itisproposedtobuildahierarchicmedicalpatternwithprimarydiagnosisconstruction,two-wayreferralandupper&lowerlinkage,focusonpromotinghigh-qualitydevelopmentofpublichospitals,andadvancing8keytasksofhierarchicmedicalandconstructionofmedicalpartnership.Thehierarchicmedicalandconstructionofmedicalpartnershipwillforcethehospitaljointprocurementandmedicalinsurance-pricedtotheground.Firstly,unifythecatalog.Theminimumthresholdfordrugsincatalogwillbeprice;expendingthepromotionareas,onceintheprocurementcatalog,itmeanstheproductshaveaccesstomultiplehospitalswithinthemedicalpartnership,thehuge-crowdstrategyinthepastthatrunningtothehospitalfordrugsisexpectedtoreducecosts.Secondly,unifythedistribution.Theinitiativeofmedical
institutionstoupstreamdistributionbusinessandpharmaceuticalenterpriseshasbeenimprovedgreatly,whethersecondbargainingordistribution,paymentcollection,thetrendofmedicalinstitutionsuppressupper-and-midstreamindustry&commerceishardertoreverse.Finally,volume-basedprocurement.Quantityandpricingconnectedandreducingpricebyquantity,onthebasisofcentralizedprocurement,everysinglemedicalpartnershipfurtherbargainingonvolume-basedpricingwithasecondbargainingresulted.
(3)The“dualchannel”helptheimplementationofmedicineswithnegotiatedpricesandbeneficialtotheretailbusinessdevelopmentThedualchannelpolicyacceleratedtheprescriptioncirculationandseparationofdispensingfromprescription(SDP),someofthefunctionoforiginalin-hospitalmanagementofdrugsaretransferringtotheoutsideofthehospital,toensureequalrulesofpaymentbymedicalinsuranceforcompliantinstitutionsbothinandoutofthehospital;relevantnationalmeetingalsoindicatedthatthesupervisionformedicalinsurancefundwillbestrengthenedbyenhancingtheprescriptioncirculationcenterasthecore.Inthefuture,underthebackgroundofpolicyguidance,complianceandincreasingrequirementsforprofessionalism,thecompetitivenessofpharmaceuticalleadingenterpriseswillbeenhancedandtheindustryconcentrationwillfurtherimproved.
II.MainbusinessoftheCompanyduringthereportingperiod
TheCompanyshallcomplywiththerelevantdisclosurerequirementforretailingindustriesofShenzhenStockExchangeSelf-RegulatoryGuidelinesforListedCompaniesNo.3-DisclosureofIndustryInformation(i)MainbusinessoftheCompanyincludespharmaceuticaldistributionandpharmaceuticalretail,specificallyasfollows:
1.Inthefieldofpharmaceuticaldistribution,theCompanymainlybasedinGuangdong&Guangxi,leadinginthescaleofpharmaceuticaldistributioninthetworegions.Asof31December2021,therewere1,092secondary&tertiarymedicalinstitutions;7,870grass-rootsmedicalclientsand6,414retailterminalcustomers(chainpharmacies,singlestores,andself-paypharmacyinhospitals).Intermsofdistribution,GuangdongandGuangxiregionshavesubdividedtheformatmarkets,pharmaceuticaldistributionandapparatusconsumables,retaildirectsalesandretaildiagnosisandtreatment,medicalinstrumentlinkage,retaildevelopment,andtheentireindustrybusinessmaintainsarelativelyleadingpositionintheindustry;innovativebusinesscontinuestodevelopnewcustomercooperationmodelsandbecomeamedicalsupplychainmanagementsolutionandserviceproviders;improvenationallogisticsplanningandconstruction,providethird-partylogisticsprofessionalservices,andcreateleadinglogisticsandsupplychainservicecapabilities.Throughcontinuousintegrationofdistributionandlogistics,deeppenetrationintotheterminalmarketandimprovingthestepwisedistributionnetwork.Tobuildanintelligentsupplychain,committedtobecomethepharmaceuticalandhealthproducts&serviceproviderwiththemostinfluential,thehighestshares,themostcomprehensivevariety,thebestserviceandthefastestdistributioninSouthChina.
2.Inthepharmaceuticalretailfield,GuodaDrugstoreisaleadingpharmaceuticalretailerinsalesscalethroughoutthecountryBytheendof2021,GuodaDrugstorehasoperated8,798stores,covering20provinces,autonomousregionsandmunicipalities,whichhasformedadrugstorenetworkscoveringeasternandnorthernChina,southerncoastalcities,andgraduallyexpandedintonortheast,centralplainsandinlandcities,thesalesscaleofwhichhasexceeded22billions,maintaintheleadingsaleswithinindustry;Guodadrugstore,thebusinessofwhichweremainlyrelyingonsocialretaildrugstores,hasbeenputtinggreatattentiononthedevelopmentofprofessionalservicesystemwithmedicalresourcesascorecompetitiveness,buildingagroupofstoreswithprofessionalcommercialactivities,whichareabletoprovideretailsandtherapyservicesthatintegratingmedicalserviceandhealth-careproductssalesandcooperatewithhospitals;atthesametime,theCompanyhasbeenvigorouslydevelopingnewbusiness,exploringandexpandingnewsaleschannels,improvingprofessionalservices,beingdedicatedtotransitfromatraditionalmedicalretailintoaninnovativeserviceenterprise.Bymeansofconventionalproductsretailmanagement,improvingmajorbrandsandexploringbusinesscooperationwithsupplier,acceleratingtheestablishmentandimprovementofDTPbusinessandcontinuationofhealthcareservicesystem,Guodahasbuiltindustry-leadingprofessionalserviceability.(ii)Businessmodels
1.Businessofdistribution
(1)ProcurementmodelIntermsofprocurement,thecompanyhasestablishedaprocurementmechanismof"frontend--backend"divisionoflaborandcooperation,whicheffectivelyreducestheprocurementcost.The"frontend"isthepurchasingdepartment,which,accordingtobusinessneeds,looksforsupplyofgoods,establishesfirst-runvarieties,comparespricesandconductsbusinessnegotiationsonproductqualityrequirements,leadtime,supplypriceandpaymentterms,inaddition,effectivelymanagessuppliers,includingsupplierqualification,servicequality,integritydegree,etc.,establishessupplierfiles,andorganizessupplierevaluations.The"backend"isthesupplychaindepartment,whichisresponsibleforintegratingsupplychainresources,graspingsupplychaininformationasawhole,realizingprofessionaldivisionoflabor,promotingintegratedmanagement,creatingintegratedservicebackground,assistingthe"frontend"business,andcompletingdailypurchasecontractsandorders.
(2)SalesmodelIntermsofsalesmodel,thecompanyhascarriedouttransformationandinnovationaccordingtothe"onebodyandtwowings"strategyofdistributionsector.Fortraditionalbusiness,thedistributionimplementsthebusinessmodelof"networksubmersion"insouthernChina,andisthemainchannelsupplierofdrugsinGuangdongandGuangxi,andhasachievedfullcoverageofthenationalpharmaceuticalmarket.Atthesametime,wewillbuildspecialbusinessessuchasequipment,medicalbeauty,medicalcareandhealth,TCMdecoctionpiecesandimport,andvigorouslyexpandtheendmarketssuchasbasic-levelmedicalinstitutionsandprivatehospitalstoimproveproductsupplyguaranteeandbasic-levelnetworkcoveragecapability.
Theretaildirectsellingbusinessundertakesthecompany’s"integrationofwholesaleandretail"strategy,promotesthenationalretailterminallayout,anddeeplydevelopsinsouthernChinaandradiatedacrossthecountrybasedonthenationaltoponehundred+professionalDTPdrugstores,projectcentralizedprocurement,thethirdterminalagentsandotherdistributionnetworks;Atthesametime,thecompanyprovidescustomerswithone-stopoverallsolutionsanddiversifiedvalue-addedservicesandinnovativeservices;1)Promotetheimplementationofmedicalserviceinnovationmodelthroughhospitalsupplychainproject,equipmentSPD,regionaldistribution,regionalmedicalservices(inspection,disinfection),andoutsourcingandacceptanceofprescriptionsprescriptiondispensingandundertaking,etc..ThesubsidiariesSinopharmHoldingGuangzhouMedicalTechnologyCo.,Ltd.,SinopharmHoldingGuangzhouMedicalManagementCo.,Ltd.,andSinopharmHoldingGuangzhouMedicalSupplyChainServiceCo.,Ltd.havecarriedouteffectivebusinessexpansionandpracticeonprofessionalserviceproductssuchasmedicalequipmentlifecyclemanagement,reagentconsumablesanddisinfectionbusiness.2)Intermsofthird-partylogisticsbusiness,weundertakethewarehousing,distributionandothervalue-addedservicesforthird-partycustomerssuchaspharmaceuticalequipmentmanufacturers,pharmaceuticalequipmentbusiness,centersfordiseasecontrol,vaccinemanufacturers,etc.,andprovideprofessionalthird-partylogisticssolutionsforintegratedbusinessessuchasthird-partybondedlogisticstonationalwarehousing,distributionandlogisticsservices.
(3)LogisticsanddistributionmodelAfterlong-termdevelopmentandaccumulation,thelogisticscenterhasestablishedacompletemodernpharmaceuticallogisticsservicesystem,andintegratedwarehousinganddistributionandintelligentsupplychainserviceabilities.Thelogisticscenterhasmorethan180,000squaremetersofwarehousespaceandmorethan260self-operatedtransportvehiclesinGuangdongandGuangxi.Theservedcustomersincludeupstreamanddownstreamclientsofdistributionandoperationheadquarters,third-partylogisticscustomersincludeinnovativepharmaceuticalcompanies,diseasecontrolcustomers,pharmaceuticalequipmentmanufacturersandcommercialcompanies,vaccinemanufacturers,etc.Thedistributionscopecoversthewholecountry.Distributionterminalsincludedirectsellingcustomersofhospitals,basic-levelmedicalcustomers,smallsocialmedicalcustomers,commercialcustomers,retaildirectsellingcustomers,centersfordiseasecontrol,individuals,etc.RelyingonthenationallogisticsresourcesofSinopharmHoldingandcombinedwiththeresourcesofcarriers,thelogisticscenterhasachievedfullcoverageofnationalurbanandruralmedicallogistics.Thecompany'slogisticsproductsmainlyincludewarehousinginspectionservices,storageservices,deliveryservices,insuranceandsupplychainoptimizationandothervalue-addedservices;aswellasdeliveryservicesinmedialtransportationcities,specialcarservicesformedicines,medialexpressdeliveryservices,supplychainoptimizationandothervalue-addedservices.
2.Retailbusiness
(1)ProcurementmodelTheprocurementmodelofGuodaDrugstoreisdividedintocentralizedprocurementandlocalprocurement.Theprocurementmodelofcentralizedprocurementcanbedividedintounifiedsigningseparatepurchasingand
unifiedsigningunifiedpurchasing.Forunifiedsigningseparatepurchasing,theheadquartersuniformlysignstripartitecontract(headquarters,regionalcompanyandsupplier),andtheregionalcompanydirectlypurchasesfromsupplier.Forunifiedsigningunifiedpurchasing,theheadquartersandsuppliersignthecontracts,theheadquarterscentralizedlygathersthegoodsandthendistributestoregionalcompanyforsales.Theprocurementmodeloflocalprocurementisthattheregionalcompanydirectlysignscontractswithsupplier,andpurchasesandsellsbyitself.In2021,thesalesofcentralizedprocurementaccountedfor44%,whilethesalesoflocalprocurementaccountedfor56%.
(2)SalesmodelTheretailbusinessofGuodaDrugstoreismainlycarriedoutintheformofchainoperation,includingcompany-ownedstoresandfranchisedstores.ByTheendofDecember2021,therewere8,798storeintotal,including7,257directlyownedstores,1,541franchisedstores,covering20provincial-levelmarkets;themainbusinessisChinesepatentdrugsandgenericmedicines,traditionalChinesemedicinedecoctionpieces,medicalequipment,healthfood,healthyfoodandsupplies,etc..Intermsofbusinessmodel,itactivelypromotesonlinetoofflineInternet+medicine,andexplores"5+X"retailanddiagnosisandtreatmentinnovativestorescombiningtraditionalChinesemedicine,Westernmedicine,rehabilitationandphysiotherapyservices.Atthesametime,itcontinuouslyoptimizestheslowdiseasediagnosisandtreatmentandmembermanagementnewmodel,nowtherearenearly24millionactivemembers,establisheshealthrecordsforcustomerswithchronicdisease,followupandpaycloseattentioninalongterm,andcooperateswithtoprankedsuppliersathomeandabroad,constantlyenhancesprofessionalpharmaceuticalaffairsserviceability,providequalityhealthproductsandservicesforthemajorityofthepeople,andfulfillsthesocialresponsibilityofastate-ownedenterprise.
(3)LogisticsanddistributionmodelThelogisticsandwarehousingmanagementmodeloftheheadquartersandsubsidiariesofGuodaDrugstorehastwomaintypes,thefirstisself-operatedlogisticsmodel,namelythesubsidiariesrentwarehousesforthewarehousinganddistributionservicesofstoresandexternalcustomers,thesecondisthemodeltoentruststatecontrolsystemforlogisticsdistribution,namelythesubsidiariesentrustthelocalstatecontrolsystemforstorageandtransportationbasedonfactorssuchascostorresourcesharing.Atpresent,entrusteddistributionaccountsfor27%.Therearethreemodesoftransportation,i.e.self-operateddistribution,entrustingathirdpartyfortransportation,andmixedtransportationmanagement-self-operated+entrustedmode.(iii)Thecompany's2021annualperformanceandmainworkTheyear2021wasasignificantmomentofthehundredthanniversaryofthecommunistpartyofChinaandakeynodeinthehistoryintersectionofthe"twoonehundredyears",pandemicpreventionandcontrolandsocio-economicdevelopmentwereunderpressureathome,SinopharmAccordadheredtoXiJinpingThoughtonSocialismwithChineseCharacteristicsforaNewEra,thoroughlyimplementedthespiritsofthethe19
thNationalCongressoftheCPCandallthepreviousplenarysessionsofthe19
th
CentralCommitteeoftheC.P.C.,fullyimplementedthegeneralrequirementsofpartybuildingandtheparty’sorganizationalprincipleinthenewera,
earnestlyimplementedthedeploymentrequirementsofSINOPHARMandSinopharmHolding,focusedonthestrategicpolicyof"technologyenergized,serviceupgrade,wholesaleandretailintegration,andindustry-financedualdrive",andcontinuedtopromotethe"14
th
Five-Year"strategicplanningofSinopharmAccord's"1-2-6",i.e.onecoredualnetworksandsixplatforms.Undertheannualworkingideaof"buildinganewdevelopmentpatternandsustaininghigh-qualitydevelopment",40,000employeesofSinopharmAccordmadeconcertedeffortsandachievedthegoalofopeninganewsituation,respondingtothechangingsituationandstabilizingtheoverallsituationatthefirstyearofthe"14
th
Five-yearPlan".Operationin2021Intheyearof2021,undertheinfluenceofCOVID-19andpoliciesascentralizedprocurementofdrugs,inthefaceofpressure,multiplemeasuresweretakenbySinopharmAccordtostartheyearwithvigor.Cumulativeoperationrevenuereached68,358millionyuanfortheyear,a14.60%increasedonay-o-ybasis;operationprofithas1,952millionyuan,declinedby9.77%fromayearearlierandthenetprofitattributabletoshareholderoflistedcompanyamountedto1336millionyuanwith4.67%downonay-o-ybasis.Themainreasonfordeclinedinprofitisaccordingtotheresultsofimpairmenttestsongoodwillandintangibleassetsfortheyear,followtheprincipleofprudence,thegoodwillandintangibleassets(brandrightsandsalesnetwork)fromsubordinatesubsidiary-ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd(andtheSinopharmHoldingTianhePharmaceuticalCo.,Ltd)arebeingaccruedbytheCompany.Meanwhile,thereare1155newdirector-operatedstoresopenedin2021intheretailsector,withthelargeinitialinvestmentandnonbenefitsgeneratedtemporaryandmultipleinfluencesasindustrypoliciesandepidemic,theprofitspaceshrinks.In2021,SinopharmAccordachievedatotaloperatingrevenueof46,833millionyuanindistributionbusiness,ay-o-yincreaseof14.03%;netprofitachieved947millionyuan,ay-o-ygrowthof10.74%,ofwhich:revenuefromtraditionalmedicaldirect-salesof31,900millionyuan,ay-o-yincreaseof15%;retaildirectsalesrevenueof6,200millionyuan,1%upfromayearearlier;retaildiagnosisandtreatmentrevenueof2,000millionyuan,19%uponay-o-ybasisandcommercialdistributionrevenueof5,200millionyuan,19%growthonay-o-ybasis.In2021,GuodaDrugstorecompletedanoperatingrevenueof22,478millionyuanintotal,ay-o-ygrowthof
15.64%,thenetprofitamountedas184millionyuan,61.38%downfromayearearlier.Thenetprofitattributabletoparentcompanywas65millionyuan,ay-o-ydeclineof80.88%,ofwhich:retail(directoperationstoresandfranchisedstoresincluded)revenueof17,990millionyuan,16.3%upfromayearearlier;revenuefromterminaldistributionof4,100millionyuan,ay-o-yincreaseof15%.Theaccumulativeinvestmentincomefromassociateswas333millionyuanfortheyearof2021,ay-o-ydecreaseof5.91%.
1.Centralenterprisetakestheresponsibilitytofightagainsttheepidemic
AsofDecember2021,subsidiariesofSinopharmAccordhaveobtained67(including2centralmedicalreservequalifications;12provincial&municipal-levelqualifications;25reservesofdirectfundallocationfromcentral;28qualificationsforgovernmentepidemicprevention&controlandspecialprocurement)qualificationsformedicineandanti-epidemicsuppliesreserves,andcompletedemergencydistributionofsuppliestomanyepidemicareasinGuangdongandGuangxisuccessively.Undertakingthewarehousing&distributionoperationfordiseasecontrol&preventionvaccineinvaryareaswithintheGuangdongandGuangxi,settingupaspecialcommandgroup/operationteamforvaccineswithrapidresponseonduty24hoursaday.Nearly2,000squaremetersofcoldstoragehasbeencontributedand120refrigeratedtrucksonduty,undertaking60%ofthewarehousing&distributionservicesforCOVID-19inGuangdongProvince,40diseasecontrolcentershavebeencontractedandcovering1,700vaccinationsitesapproximately.TheCompanyassistedinthedeliveryofmorethan3.4milliondosesofCOVID-19vaccinesinGuangxiProvinceandcoveringmorethan130vaccinationsites.Intheclosedenvironmentofthepandemicoutbreakquarantinezone,GuodaDrugstoreandthedistributionprofessionalpharmacies,SinopharmAccord’ssubordinates,providedemergencymedicineservices,respondedtopandemicpreventionandcontrolrequirementsofthelocalgovernment,launchedonlineemergencymodeof"enterpriseWeChatgroupcustomerserviceguide+storeorderreceiving,logisticsspecialvehicledistribution",openednormally,andprovidedprofessionalconsultationanddeliveryservicesforpatientswithchronicdiseasesinthequarantineareas.WeassistedhospitalsinopeningInternetprescriptioncirculationchannelstomeettheneedsofpatientsinquarantineareasforonlinefurtherconsultationanddruguse.Anumberofsubsidiariesofthecompanyhavewonanti-epidemicawardsfromthegovernmentandindustryassociations.ThemeritoriousdeedsofthecompanyinfightingagainstCOVID-19pandemichavebeenincludedinthebriefingonstudyandeducationofpartyhistorycarriedoutbythestate-ownedassetssystemofGuangdongProvinceandintheGuangdongYouthLeagueNewsoftheGuangdongCommunistYouthLeague.
2.DistributionbusinessofSinopharmAccord:consolidatedtraditionalbusiness,developedinnovativebusiness,andconstantlyimprovedmarketcompetitiveness
(1)Traditionalbusiness:
Thetraditionalbusinessfurtherstimulatedvitality,becamestrongerandbigger,andledtheindustry.ThedistributionbusinessofSinopharmAccordhasactivelyseizedtheopportunityofthecentralizedprocurementpolicyandfullyobtainedthedistributionrightsofthecentralizedprocurementvarieties,andtheannualdistributionrateofallnationalandprovincialcentralizedprocurementpointsinGuangdongandGuangxiexceeded95%,andthepointdistributionraterankedatthetop.Atthesametime,weactivelyseizedthedual-channelmarketopportunityandstrivedfortherighttodistributedual-channelproducts.Theentrusteddistributionrateofproductsexceeded80%.Thelinkageofpurchaseandsalesacceleratedtheicebreakingofupstreamanddownstream,andthemarketsharecontinuedtoincrease;promotedmarketingtransformation,builtaprofessionalmarketingteaminthefieldoftumoursandchronicdiseases,andcarriedoutin-depthCSOcooperationmodel;strengthenedthedevelopmentandintroductionofnewpotentialsuppliers,andcontinuedtooptimizethelevel-to-
levelmanagementofsuppliers,theinstitutionalizationpromotedthedevelopmentofsuppliercooperationprojects,andintroduced700newproductsthroughmultiplechannels.ThegainrateofTCMdecoctionpiecesinhospitalsincreased,andthemarketexpansionofrefineddecoctionpiecesachievedinitialresults,withayear-on-yearincreaseof45%inoverallbusiness;andthemedicalbeautyhaslaunchedaC-endmarketingmodel.
(2)Retaildirectselling:
Promotedthenationaltop100chainprojects,increasedthedepthofcooperation,andimprovedproductintroduction.Acceleratedthenetworklayoutofmemberstores,thetotalnumberofmemberstoreshasreached1,313,andthesalesincreasedby66%onayear-on-yearbasis.ContinuedtogivefullplaytotheB2Badvantages,optimizedonlineplatformservices,increasedonlinemarketableproductspecifications,andmadesalespromotionfortargetedproductspecificationstoincreasethecustomers'onlineorderingfrequency.
(3)Retaildiagnosisandtreatment:
ContinuedtoacceleratethelayoutofretaildiagnosisandtreatmentstoresinGuangdongandGuangxi.Therewere120drugstores(anetincreaseof20storesthroughouttheyear)ofSinopharmHoldinginGuangdongandGuangxi,including91storesinGuangdongand29storesinGuangxi.35storeshaveobtainedthe"two-channel"qualification,andcontinuedtogivefullplaytothebrandadvantagesof"medicalinsurance+commercialinsurance",withasteadygrowthtrendinsales.Therewere31prescriptioncirculationprojects,thetotalcirculationvolumeincreasedby124%.
(4)Equipmentconsumablesbusiness:
Activelyexpandedandbuiltbusinessplatformswithupstreammanufacturers,setupamedicaldeviceexperiencecenter,exploredthemarketingmodelofhomemedicaldevices,formedaclinicalserviceteam,realizedtheextensionoftheservicefunctionofcommercialplatform,exploredthecooperationmodeloflargeaccesstomedicaldevices,anddevelopedtheprovincialintegrationofmedicaldevices.
(5)Innovativebusiness:
Activelypromotedservicetransformation,anddevelopedthein-hospitaltoClogistics/services,homeandcommunitymedicalcareandhealthcare,medicalunion/medicalcommunityprimarymedicalservices,retaildiagnosisandtreatment/retaildirectsellingandotherdirections.Integratedresources,promotedtheprofessionalandplatform-basedconstructionofinnovativebusiness,andsetupindustrybenchmark.Forexample,theprescriptioncirculationprojectoftheFirstAffiliatedHospitalofSunYat-senUniversityandthemedicalconsumablesSPDprojectofShenzhenSecondPeople'sHospitalwonthetoptendemonstrationcasesofpharmaceuticalsupplychainserviceinnovation.ThemedicalsuppliesSPDmanagementserviceprojectofAffiliatedHospitalofYoujiangMedicalUniversityforNationalities,thewholeprocesstraceabilitysystemofTCMdecoctionpiecesandtheintelligentallocationscheme(TSD+scheme)wereawardedasexcellentcasesofpharmaceuticalsupplychain.
(6)Third-partylogistics:
Vigorouslydevelopedthird-partylogisticsservices,addedSinopharmHoldingGuangzhouShanghaiequipmentwarehouse,SinopharmHoldingGuangzhoupublicbondedwarehouse.Diseasecontrolbusinesshadayear-on-yeargrowthof197%,innovativepharmaceuticalbusinesshadayear-on-yeargrowthof201%,pharmaceuticalequipmentbusinesshadayear-on-yeargrowthof15%.Thevaccinebusinessmaintaineditsleadingpositionintheregionalmarket.
3.BusinessofGuodaDrugstore:focusedonstrategy,improvedqualityandefficiency,consolidatedthestockbusinessscale,andexploredinnovativebusinessdevelopment
(1)AcceleratedthenetworklayoutofthewholenetworkandpromotetheexpansionandsubmersionofstoresBytheendof2021,GuodaDrugstorehadatotalof8,798stores,anincreaseof1,138storescomparedwiththebeginningoftheyear,amongwhich,newlyopened1,155direct-salestoresandclosed347stores,anetincreaseof808stores,andanetincreaseof93franchisedstores.Thegrowthrateofnewlyopenedstoreshitarecordhigh.244storesinvolvedintheinvestmentandacquisitionproject,7storesweretransferred.Furthersankthenetworklayout,expandedthecountymarket,hasestablished58countystores.Acceleratedthedevelopmentoffranchisebusiness,setupthefranchisemanagementdepartment,integratedthebrandadvantagesandresourceadvantagesofGuoda,unifiedthestandardprocess,andformedastandardizedmanagementmode.
(2)Focusedonbuildingself-operatede-commerceplatformsandcontinuouslypromotedonlineandofflineintegrationFocusedonthedevelopmentandconstructionofself-supportingplatforms,whichhavebeenlaunchedatmorethan6,000storesin26regionalcompanies.Builtthewe-mediaplatformofGuodaDrugstore,sofar14regionalsubsidiarieshaveopened28WeChatvideoaccounts.ImprovedtheO2Ooperationqualityofthird-parties,thenumberofonlinestoresincreasedto7,000,andtheoperatingvarietiesincreasedto2,000SKU/stores.O2Ogrossmarginkeptincreasing,andO2OdrugsalesatnightintroducedtrafficplatformssuchasPingAnGoodDoctor.Theannualsalesofe-commercebusiness(includingB2C)reached2230million,anincreaseof99.6%onayear-on-yearbasis.
(3)Continuedtoinnovatebusinessmodelsandcreatenewpharmaceuticalretail
1)Activelycarriedouttheprescriptionoutflowprojectandbuiltinternethospitals:inresponsetothe"two-channel"policyofmedicalinsurance,newlyincreased13medicalinsurancestoresthroughouttheyear;cooperatedwith16internethospitalplatforms,launchedprescriptionoutflowprojectsinShenzhen,InnerMongolia,Xinjiang,JilinandShenyang,createdone-stopserviceof"internetdiagnosisandtreatment+onlineprescriptioncirculation+homedeliveryofdrugs".JointlyandnewlyestablishedJiarenMedicalandHealth(Hainan)Co.,Ltd.,andhasobtainedthelicenseofinternethospitalandcompletedsystemconnection.
2)Createdanewretailmodelandpromotedserviceupgrading:createdthefirstnewconceptstoreintegratingSPS+bighealth,andthestoredesignwonthe"TopTenDrugstoreRetailModelInnovationAward";340stores
wereopen24hoursadaytoprovidedrugpurchaseservicesatnight;setup217pandaself-servicemedicinevendingmachinestoprovideintelligentserviceforself-servicemedicinepurchasing.
3)Exploredtheconstructionofdigitalintelligenceunattendedpharmacy:activelyexploreddigitalshelves+machinevision+multi-sensorfusiontechnologytorealizethenon-inductivepayment,artificialintelligenceassistingin-storecustomersandtrackingofpurchaseddrugs,andotherdigitalapplicationscenarios,piloted"non-inductivepayment"atShenzhenGuodaDrugstore,andpiloted"two-dimensionalbarcodepayment"atShanghaiLonghuaEastRoadstore.
(4)Continuedtopayattentiontotheimprovementofgrossprofit,andsetupaprojectteamfortheimprovementofgrossprofit(procurement,commodities,privatebrands,marketingandoperation),focusingontheadjustmentofsalesstructureandthecontrolofgrossprofitmarginofcommodities.Themainindicatorofgrossprofitmarginbasicallyreachedtheannualtarget.
(5)VigorouslypromotedthesystematicdevelopmentofprivatebrandsPromotedthebusinesssystematicconstructionofprivatebrands,OEMbusinessofprivatebrandsand"Guozhi"productsincreasedby115%onayear-on-yearbasis.Creatednewmodelsandnewgrowthpoints,andcreatedthesalesmodeloftrend-settingproduct"JieBaoNuo"cottonpadsandtheinnovativedevelopmentmodelofindustrialandcommercialcooperationofSinopharmsystem.
(6)ContinuedtobuildaprofessionalpharmaceuticalservicesystemCarriedoutdrugandinformationplatformtraining,covering31,863shopassistantsandmanagementpersonnelnationwide,focusingonfivemodules:professionalbasis,patienteducation,practicalapplication,chronicdiseasecommoditiesandrelatedcommodities.Organizedthetrainingoflicensedpharmacists,and476employeesobtainedthequalificationoflicensedpharmacists.Providedhealthmanagementservices,providedprofessionalservicesformorethan7millionchronicdiseasemembersthroughhealthdetection,memberfiling,healtheducationandmedicationguidanceandothermeans.Improvedthemembershipstickiness,GuodaDrugstorehascooperatedwiththethird-partyYiyouhuitobuildthemembershipplatform,andhascarriedout7cooperationprojectswithNovartis,Merck,Huizhi,Celebrex,Weiguandothermanufacturers.
4.Improvedquality,increasedefficiencyandsoughtbenefitsRegularlypromotedthespecialworkofimprovingqualityandefficiency.Increasedthecapitalconcentration,enjoyedthetaxpreference,revitalizedresourcesandsavedcosts.Thehumanresourcesinputandbusinessmaintainedgoodcoordination,andthepersonnelscalecontinuedtobedynamicallyoptimized.Thegrowthrateoftheteamscalewasmuchlowerthanthegrowthrateoftherevenuescale.Acceleratedthecontinuousoptimizationofthecompany'sbusinessstructure,andcontinuedtocarryoutthereductionin"accountsreceivableandinventory".Adoptedoneenterpriseonepolicyforsubordinateloss-makingenterprises,refinedthemeasurestostoplosses,andincreasedtheintensityofspecialassessment.
5.ContinuedtopromotecomprehensivedigitaltransformationPromotedintegratedmanagementofinformationandcontinuouslyoptimizedmanagementprocessesandbusinesslinkswithdigitalprojects.Strengthenedbasicmanagementofinformation,establishedastableandefficientsupportsystemforinfrastructureequipment,carriedoutdatabaseinspectionandoptimization,andcompletedtheconstructionofGuangzhou-Shenzhendisasterrecoveryplatform.Promotedtheimplementationofdigitalprojectsofmanagementplatformandbusinesssystem,improvedthefinancialsharingplatform,GuoduDrugstoreswitchedtoNCunifiedfinancialplatform,andpilotedthelaunchoffinancialrobots.Distributioncenteredonthestrategicdeploymentof"onebodyandtwowings",andcarriedouttheconnectionofautomationspecialprojectsforsupplychain,micromall,dualchannel,prescriptioncirculation,etc..GuoduDrugstorehaspromotedtheestablishmentofanumberofdigitaltransformationprojectssuchasunmannedintelligentpharmacy,optimizedbusinesssystem,promotedtheonlineuseoftheunifiedDTPsystem,andoptimizedandconstructedtheonlinemallsystemandOMSsystem.
6.Technologyenergized,optimizedtheefficiencyofthesupplychainContinuedtopromotethelogisticsnetworkplanning,atpresent,thecompanyhas61self-operated+entrustedlogisticscenters,withatotalareaof370,000squaremeters,whichhaveestablishedtheindicatorsystemforsupplychainlogisticsmonitoringthroughoutthecountry,carriedoutthenationallogisticsplanningandB2B2Cplanningfortheintegrationofwholesaleandretail,brokethescatteredlayoutof"oneplaceonewarehouse",improvedtheefficiencyofwarehousenetwork.Madeoverallarrangementsforlogisticsandwholesaleandzerointegration,jointsupply,jointinventory,andjointnetwork.Promotedthedigitalintelligencetransformationoflogisticswarehouses,createdthe3Asmartlogisticssolution(AS/RS+AMR+AI),usedOCR+AIvisualidentificationsystem,SinopharmGroupGuangdongLogisticsintroducedmechanicalarm,AGVintelligentvehicleandotherintelligentequipmenttoopenuplogisticsmanagementsystem,thewarehousingdensityincreasedby10%,overallefficiencyincreasedby25%.AGVunmannedwarehouserealizeditsownFYWMSsystemdockingAGVscheduling,realizedmulti-floorintelligentequipmentscheduling,andeffectivelyimprovedsupplychainefficiency.
7.ContinuedtopromotethecorestrategyofintegratingwholesaleandretailingExploredtheconnotationandvalueof"integratingwholesaleandretail"andpromotedtheextensionofresourcestotheupstreamanddownstreamoftheindustrialchain.Launchedtheexpansionofthepilotareafortheintegrationofwholesaleandretail,andadded10regionsincludingShanxiandInnerMongoliaforpromotioninatotalof15regions.Basedontheprincipleof"oneplace,onepolicy",thepilotprojectcontinuedtobepromoteddynamicallyandreliedontheoperationcharacteristicsofeachregiontooutputeffectivebusinessmodelsandprofitmodels.ThecoordinatedsalesofwholesaleandretailinGuangdongProvincereached1030million.Operationoftheretailstoresduringthereportingperiod:
1.Bytheendof2021,GuodaDrugstorehas7,257direct-salestores,salesrevenueamountedto16,640millionyuan;andhas1,541franchisedstores,thedistributionrevenueamountedas1,340millionyuan.
Region
| Region | Direct-salestore | Franchisedoutlet | ||
| Numbers | Salesrevenue(in10thousandYuan) | Numbers | Distributionrevenue(in10thousandYuan) | |
| North | 4,627 | 1,034,759 | 669 | 61,877 |
| EastChina | 1,086 | 261,094 | 603 | 57,809 |
| SouthChina | 555 | 157,400 | 117 | 7,390 |
| CentralChina | 312 | 56,665 | 147 | 6,397 |
| Northwest | 346 | 105,873 | 5 | 108 |
| Southwest | 331 | 48,492 | 0 | 0 |
| Total | 7,257 | 1,664,283 | 1,541 | 133,581 |
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
(1)Therewere1,155newdirect-salestoresopenedand347closedin2021,anetincreaseof808stores.
| Region | Direct-salestore | |
| Numberofstoreincreased | Totalarea(squaremeters) | |
| North | 748 | 77,154 |
| EastChina | 170 | 19,529 |
| SouthChina | 99 | 11,382 |
| CentralChina | 32 | 3,212 |
| Northwest | 61 | 6,539 |
| Southwest | 45 | 5,248 |
| Total | 1155 | 123,064 |
(2)MedicalinsurancequalificationofthestoresAsofDecember31,2021,theCompanyhas7,257chainstoreswithdirectlyselling,and6,338pharmacystoresobtainedthequalificationof“Designatedretailpharmaciesofmedicalinsurance”,representing87%ofthetotalpharmaciesoftheCompany.
| Region | Numberofstores | Storesobtainedthequalificationof | Ratiointotalpharmaciesin |
“Designatedretailpharmaciesofmedical
insurance”
| “Designatedretailpharmaciesofmedicalinsurance” | regions | ||
| North | 4,627 | 4,170 | 90% |
| EastChina | 1,086 | 855 | 79% |
| SouthChina | 555 | 458 | 83% |
| CentralChina | 312 | 250 | 80% |
| Northwest | 346 | 295 | 85% |
| Southwest | 331 | 310 | 94% |
| Total | 7,257 | 6,338 | 87% |
2.Changeofmainsellingindex
| Year | Percustomertransaction(RMB) | Proportionofprescriptiondrugs | Proportionofmedicalinsurancesalesindirect-salestores | Proportionofthedirectmembersales | Proportionoftransactiontimesofdirectmembers |
| 2020 | 90 | 52% | 41% | 67% | 59% |
| 2021 | 90 | 54% | 41% | 70% | 64% |
(1)Classifyaccordingtoregion
| Region | Amountofsalesgrowth(tax-free,in10thousandyuan) | Grossmargin | Netprofitratio |
| North | 209,211 | 23% | 3% |
| EastChina | -4,176 | 21% | 0% |
| SouthChina | -2,431 | 24% | 1% |
| CentralChina | -5,148 | 26% | 1% |
| Northwest | 24,064 | 20% | 2% |
| Southwest | 29,828 | 41% | 8% |
(2)Operatingefficiencyofdirect-salestoresduringthereportingperiod
| Region | Numberofstores | Operatingareaofthestores(squaremeters) | Dailyaverageefficiency(tax-included,Yuan/SquareMeters) | Rentalefficiency(tax-included,annualsalesvolume/rental) |
| North | 4627 | 575,992 | 48 | 15 |
| EastChina | 1086 | 136,491 | 52 | 14 |
| SouthChina | 555 | 64,102 | 65 | 15 |
| CentralChina | 312 | 36,301 | 43 | 14 |
| Northwest | 346 | 41,115 | 71 | 28 |
| Southwest | 331 | 40,200 | 33 | 11 |
Note:Dailyaverageefficiency=Averagedailyoperatingincome/Operatingareaofthestores;Averagedailyoperatingrevenue=Operatingrevenue(tax-included)ofthestoreintheYear/OperatingdaysofstoreintheYear.
Rentalefficiency=Annualsalesvolume/Yearlyrental
3.Top10storesintermsofoperatingrevenueThecumulativeoperatingrevenuefromtop10storestakes6.4%inGuodaDrugstore’soveralloperatingrevenue.
Nameofthestore
| Nameofthestore | Address地址 | Dateofopening | Buildingarea（m2） | Operationmode | Propertyownership |
| HeadstoreofLerentang | 1/F,No.57QingyuanStreet | 2010/9/16 | 1206 | Directlyoperated | Rentalproperties |
| Headstore | (1/F,2/F)No.65TongdaoNorthStreet,HuiminDistrict,Hohhot | 2003/3/18 | 1290.35 | Directlyoperated | Rentalproperties |
| YiYuanZongliStore | OppositetheoutpatientdepartmentofShandaFirstHospital,No.88JiefangSouthRoad | 2002/9/27 | 821.8 | Directlyoperated | Rentalproperties |
| YiYuanErYuanStore | OppositetheShandaSecondHospital,No.232WuyiRoad,XinghualingDistrict,Taiyuan,ShanxiProvince | 2011/2/14 | 629.9 | Directlyoperated | Rentalproperties |
| XidanGoldenElephant | No.114XidanNorthStreet,XichengDistrict,Beijing | 1997/5/3 | 783.66 | Directlyoperated | Rentalproperties |
| Showroom | North1/F,No.816Building,SungangStorageDistrict,Bao’anNorthRoad | 2006/12/23 | 260 | Directlyoperated | Rentalproperties |
| YangzhouBaiyulanPharmacyMall | No.511WenchangMiddleRoad | 1991/9/1 | 840 | Directlyoperated | Rentalproperties |
| BuXinvillage | No.101,1/FPodiumXilongLiyuan,BeiliSouthRoad,LuohuDistrict,Shenzhen | 2017/4/1 | 337 | Directlyoperated | Rentalproperties |
| XiamenNewSpecialDrugstore | No.14Shop,ZhenhaiGarden,No.97ZhenhaiRoad,SimingDistrict | 2005/3/30 | 133 | Directlyoperated | Rentalproperties |
| LianhuaNorth | LianhuaBuilding,LianhuaSecondVillage,HongliWestRoad,FutianDistrict, | 2003/12/1 | 120.33 | Directlyoperated | Rentalproperties |
Shenzhen
4.Structureofthecategoryatretailterminal
ShenzhenCategory
| Category | 2021 | 2020 |
| RxDrug | 54.40% | 52.11% |
| OTC | 25.60% | 25.83% |
| Householdhealthproducts | 5.30% | 4.29% |
| Healthcareproducts | 4.60% | 5.03% |
| TCM | 4.00% | 1.25% |
| Proportionofothercategories | 3.80% | 3.00% |
| Personalcare | 1.20% | 0.34% |
| Conveniencefood | 0.90% | 0.84% |
| Homeconvenience | 0.20% | 7.33% |
| Total | 100% | 100% |
5.PurchasingandsuppliesGoodssuppliersofGuodaDrugstorearemainlyexternalsuppliersandassistaffiliatedenterpriseofSINOPHARMandprivatebrands.Topfivesuppliersforyearof2021:
| Ranking | Purchaseamount(taxincluded)(10thousandyuan) | Procurementratio |
| No.1 | 82,276.79 | 3.9% |
| No.2 | 65,267.62 | 3.1% |
| No.3 | 56,673.88 | 2.7% |
| No.4 | 56,620.11 | 2.7% |
| No.5 | 50,971.50 | 2.4% |
6.MembermanagementandservicebusinessIn2021,themembershipsalesaccountedfor67%withnochangeinthesharesfrom2020.Atthesametime,thenumberofmembertransactionsin2021hasincreasedby25%fromayearearlier.Theproportionofmembertransactionsintotaltransactionsincreasedfrom56%in2018to64%in2021.Thenumberofmembertransactionshasmaintainedasteadyannualgrowthduringthecontinuousimprovementofsalesinthepastthreeyears,whichplayedakeysupportingroleinthesteadyimprovementofthecompany'sperformance.TheCompanyhasimproveditsoperatingefficiencybyoptimizingtheproductstructure.In2021,thepercustomertransactionfrommemberswas108yuanwhile82yuanfromnon-members.Themaindifference
betweenmembersandnon-membersliesinthedegreeofbrandrecognitionandthedifferentiationofthetypesofgoodspurchased.
7.WarehousingandlogisticsduringthereportingperiodBytheendof2021,GuodaDrugstorehasatotalof33logisticcenters/distributioncentersin20provinces(including9commissionedlogisticsand24ownedlogistics)andownswarehousingof190,000squaremetersnationwide;ofwhich,1463squaremetersforcoldstoragewith3880cubicmetersinvolume,whichareusedforstorageandcirculationofnormaltemperature,shadyandcool,andrefrigeratedproducts,guaranteedthecommoditydistributionforallcustomers;owns173logisticvehiclesinthecountryand20vehiclesforrefrigeration;NumberofthelogisticsworkforcenationwidefromGuodawas1387;theannualthroughputhave20,490,000piecesthroughoutthecountryandannualorderswere98,860,000pieces.
8.On-linesalesduringthereportingperiodIn2021,on-linesaleshaveagrowthof56%fromayearearlier,including33%upfromself-operatedplatform,thethird-partyO2Obusinessincreasedby93%onay-o-ybasisand8%upfromB2Cbusiness.O2Onetworklayoutcoveringmorethan7,000storesin23provincesnationwide.
9.UndertakeprescriptionoutflowandchronicdiseasemanagementWiththecontinuousdeepeningofthenationalpharmaceuticalreform,thebasisofthemodelofrealizingthehighaddedvalueofmedicinewithdoctors'laborhasbeencollapsedthroughpoliciessuchasvolume-basedprocurement,centralizedbidding,anddual-channel,andprescriptionoutflowhasgraduallybecomeatrend.In2021,theoverallprescriptionsalesofGuodaDrugstorewas9,980million(includingDTP),ayear-on-yearincreaseof21.3%.TookXinjiangregionasanexample,thesalesofprescriptiondrugsin2021was720million(includingDTP),ayear-on-yearincreaseof60%.Thesalesofprescriptiondrugshavehadamajorimpactonchaindrugstores.Inordertobetterundertaketheprescriptionoutflow,itisnecessarytostrengthenprofessionalservicecapacityandestablishchronicdiseasemanagementteam.In2021,GuodaDrugstoreorganizedweeklyonlinelearningfordiabetesspecialistsandhypertensionspecialists,covering26regions,andtrained2,593diabetesspecialistsand2,568hypertensionspecialists.Atotalof1.01millionmembersofdiabetesand970,000membersofhypertensionhavebeenrecorded,andthesalesofdiabetesandhypertensionproductsincreasedby11.7%and14.2%onayear-on-yearbasis.
10.DevelopmentofinnovativebusinessIn2021,theinnovativebusinessofGuodaDrugstorewasdrivenbythebusinessmodelofdoctor+medicine+insurance.InNovember2021,JialongHealthCo.,Ltd.,inwhichGuodaDrugstoreholdsstakes,obtainedthequalificationofHainanInternetHospital,layingafoundationforGuodaDrugstoretorealizeonlineservicesand
medicaltreatment.Intermsofcommercialinsurance,thesalesincreasedby159%onayear-on-yearbasisin2021,involvingmulti-facetedbusinessattemptssuchasfundinsurance,seriousdiseasesandchronicdiseases.Thee-commercebusinesscontinuedtomaintainrapidgrowthintheconstructionofself-operatedplatformsandO2O.Theself-operatedplatformsrealizedemployeecommissionmodel,introducedsomebighealthproductsforonlinedistribution,in2021,GuodaDrugstoreachievedbreakthroughsintheself-mediaandlivebroadcastbusiness,completedmorethan340livebroadcasts,workedwithMeituan,Ele.meandothercooperativebrandstocreateshortvideosandotherpublicity,andenhancedtheoverallbrandimageofthecompany.Meanwhile,theself-servicedrugpurchasemachinebusiness,whichhadbeenpilotedandexploredsince2019,achievedagoodbreakthroughin2021.Bytheendof2021,atotalof217self-servicedrugpurchasemachineswereinstalledinairports,stations,hospitals,enterprises,parks,pharmaciesandotherchannels.
III.Corecompetitivenessanalysis
1.StrongnetworkcoverageandlayoutRelyingontheperfectdistributionnetworkandvarietyresources,SinopharmAccordhasunifiedthewholesaleandretailresources.TheCompanyownscompletedrugdistributionnetwork,salesofallformshaveachievedasteadygrowth.
(1)Therewere27prefecture-levelcitiesinGuangdongandGuangdongfullycovermedicalinstitutionsatalllevels,smallsocialmedicalinstitutions,andretailchainsingle-storeterminals;intermsofretaildiagnosisandtreatment,DTPandhospital-sidepharmacies(SinopharmHoldingDrugstore)reaching120;
(2)GuodaDrugstorehas8,798retailstoresandchainnetworkspans20provincesandautonomousregions,coveringmorethan150citiesinChina.
2.AbundantvarietyresourcesAfteryearsofhardwork,theCompany’sdistributionbusinesshasaccumulatedrichvarietyresourcesinpharmaceuticals,consumablesandotherfields,andestablishedextensivecooperativerelationswiththousandsofdomesticmanufacturersandcommercialenterprises,andestablishedstablebusinessrelationshipswithhundredsofimportandjointventures,theoveralloperatingproductregulationsexceed60,000.GuodaDrugstoreoperatesnearly180,000merchandises.Withitsrelativelycomprehensivepurchasingnetworkandyearsofexperienceincommoditymanagement,GuodaDrugstorehasestablishedamerchandisesystemwithwidecoverage,highprofessionalization,andrichvarieties.
3.CompletelogisticsanddistributionsystemIntermsofdistribution,warehousingandtransportationnetwork,thelogisticscenterhasmorethan180,000squaremetersofwarehousespaceinGuangdongandGuangxi;5logisticscenters,23distributioncenters,and1
transferstationhaveformedasteppedlogisticsdistributionnetwork.RelyingonSinopharmHolding'snationallogisticsresourcesandcombinedwiththecarrierresources,wehaveachievedfullcoverageofnationalurbanandruralmedicallogistics.Intermsofinformatizationandautomation,ithasamodernlogisticsmanagementsystem,includingWMSwarehousemanagementsystem,TMSintelligentdispatchingsystem,logisticsvisualizationsystem,AGVgoods-to-personsystem,mechanicalarmandfive-sidedscanningcodeinstrument,torealizethedigitalizationandintelligentizationoflogistics,andcontinuouslyimprovetheefficiencyandqualityoflogisticsservices.Intermsofoperationmanagement,ithasimplementedunifiedstandardizedoperationnormsandmanagement,andimplementedintegratedqualitymanagementsystem,integratedinformationmanagement,integratedoperationmanagement.Ithasimplementedunifiedplanning,unifieddeployment,andunifiedmanagementforlogisticsresourcesmanagement.GuodaDrugstoreownsanationwidemodernlogisticsanddistributionsystem,andthelogisticswarehousesarelocatedin20provinces,has33large-and-smalllogisticswarehouses,coveringanareaofabout190,000squaremetersintotal.Theheadquarterslogisticsmanagementisresponsibleforthelogisticswarehousesmanagementofallthesubsidiaryinthecountry,makesplanningandconstructionforthelogisticsnetwork,andcollectsandanalyzestheinformationofeachwarehouse,itisthehighestlogisticsmanagementorganization.Theheadquarterslogisticsprovidesthemainlinedistributionofthecollectivelypurchasedcommoditiestoeachwarehouse,andthesubsidiaries’logisticsofeachregionprovidesallcommoditydistributiontolocalstoresandexternalcustomers.Thecompanieswithwholesalequalificationscanalsodowholesaledistributionbetweenwarehouses.
4.AdvantagesofstoreswithmedicalinsuranceresourcesanddualchannelIntermsofdistributionandretail,bytheendof2021,37pharmaciesin24citiesinGuangdongandGuangxihaveobtainedthequalificationof"dual-channel"pharmacy.Amongthem,25storesin14citiesinGuangdongprovincehaveobtainedthequalificationof"dual-channel"pharmacy,servingmorethan100,000oftheinsuredintotal,theirprofessionalandmeticulousserviceshavebeenapprovedbythelocalinsured,medicalinsurance,hospitalsandindustryassociations.Intermsofthedevelopmentofpharmaceuticalretail,thesubsidiariesofGuodaDrugstoregenerallyhaveahigherabilitytoobtainmedicalinsuranceresources,witharelativelyhighproportionofmedicalinsurancesalesandstableoperation.Bytheendof2021,therewere6,338medicalinsurancestores,andthesalesofdirectly-operatedmedicalinsurancestores,includingtax,reached16.69billionyuan,roseby17%onayear-on-yearbasis.Thesalesofdirectly-operatedmedicalinsurancecards,includingtax,amountedto7.4billionyuan,roseby26%onayear-on-yearbasis.Therewere102dual-channelstoreswithcumulativesalesof2.8billionyuan.
5.TheadvantagesofComplianceTheCompanyhadabigleadunderanincreasinglystringentregulatoryenvironmentforthereasonthatithaskeptemphasizinglegalizationandcomplianceintheprocessofoperationandmanagement.
6.TheSinopharmbrandwithuniqueinfluentialBrandoftheCompanyanddistribution,industrychild-brandandcontrollingshareholderandactualcontroller’sbrandcomedowninonecontinuousline,dependingonpowerfulforceofcentralenterprises,theCompany’spopularityandinfluenceareprominentdaybydayintheindustry.
IV.Mainbusinessanalysis
1.OverviewFoundmorein“II.MainbusinessoftheCompanyduringthereportingperiod”inSectionIIIManagementDiscussionandAnalysis”
2.Revenueandcost
(1)Constituteofoperationrevenue
InRMB
2021
| 2021 | 2020 | Increase/decreasey-o-y(+,-) | |||
| Amount | Ratioinoperationrevenue | Amount | Ratioinoperationrevenue | ||
| Totaloperationrevenue | 68,357,809,571.99 | 100% | 59,649,455,012.03 | 100% | 14.60% |
| Accordingtoindustries | |||||
| Pharmaceuticaldistribution | 47,415,894,164.79 | 69.36% | 41,771,721,959.60 | 70.03% | 13.51% |
| Retailpharmacy | 20,546,784,164.42 | 30.06% | 17,626,007,757.96 | 29.55% | 16.57% |
| Other | 395,131,242.78 | 0.58% | 251,725,294.47 | 0.42% | 56.97% |
| Accordingtoproducts | |||||
| Pharmaceuticals | 60,694,809,091.70 | 88.79% | 54,004,558,520.07 | 90.54% | 12.39% |
| Medicaldevicesanddisposables | 5,831,199,233.19 | 8.53% | 4,010,735,060.66 | 6.72% | 45.39% |
| Diagnosticreagents | 994,724,313.55 | 1.46% | 947,638,322.63 | 1.59% | 4.97% |
| Medicalequipment | 441,945,690.77 | 0.65% | 434,797,814.20 | 0.73% | 1.64% |
| Other | 395,131,242.78 | 0.57% | 251,725,294.47 | 0.42% | 56.97% |
| Accordingtoregion | |||||
| China | 68,357,809,571.99 | 100.00% | 59,649,455,012.03 | 100.00% | 14.60% |
| Accordingtosalesmodel | |||||
| Directsales | 38,830,595,892.43 | 56.80% | 34,359,157,282.46 | 57.60% | 13.01% |
| Directoperated | 20,185,616,638.57 | 29.53% | 17,322,376,918.91 | 29.04% | 16.53% |
| Distribution | 8,585,298,272.36 | 12.56% | 7,412,564,677.14 | 12.43% | 15.82% |
| Franchise | 361,167,525.85 | 0.53% | 303,630,839.05 | 0.51% | 18.95% |
Other
| Other | 395,131,242.78 | 0.58% | 251,725,294.47 | 0.42% | 56.97% |
(2)Abouttheindustries,products,regionsandsalesmodelaccountingforover10%ofthecompany’soperatingincomeoroperatingprofit
√Applicable□Notapplicable
InRMB
| Operatingrevenue | Operatingcost | Grossprofitratio | Increase/decreaseofoperatingrevenuey-o-y | Increase/decreaseofoperatingcosty-o-y | Increase/decreaseofgrossprofitratioy-o-y | |
| Accordingtoindustries | ||||||
| Pharmaceuticaldistribution | 47,415,894,164.79 | 44,666,346,065.22 | 5.80% | 13.51% | 13.93% | -0.34% |
| Retailpharmacy | 20,546,784,164.42 | 15,429,302,517.26 | 24.91% | 16.57% | 16.31% | 0.17% |
| Accordingtoproducts | ||||||
| Pharmaceuticals | 60,694,809,091.70 | 53,331,853,978.64 | 12.13% | 12.39% | 12.48% | -0.07% |
| Accordingtoregion | ||||||
| China | 68,357,809,571.99 | 60,339,298,052.24 | 11.73% | 14.60% | 14.73% | -0.10% |
| Accordingtosalesmodel | ||||||
| Directsales | 38,830,595,892.43 | 36,407,984,196.22 | 6.24% | 13.01% | 13.40% | -0.31% |
| Directoperated | 20,185,616,638.57 | 15,419,114,595.98 | 23.61% | 16.53% | 16.34% | 0.12% |
| Distribution | 8,585,298,272.36 | 8,258,361,869.00 | 3.81% | 15.82% | 16.33% | -0.42% |
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmainbusinessbasedonlatestoneyear’sscopeofperiod-end
□Applicable√Notapplicable
(3)Incomefromphysicalsaleslargerthanincomefromlabors
√Yes□No
| Industry | Item | Unit | 2021 | 2020 | Increase/decreasey-o-y(+,-) |
| Medicinecirculation | Sales | Yuan | 67,962,678,329.21 | 59,397,729,717.56 | 14.42% |
| Inventory | Yuan | 7,632,642,537.46 | 6,298,008,008.81 | 21.19% |
Explanationonreasonsforthey-o-ychangeofmorethan30%inrelevantdata
□Applicable√Notapplicable
(4)FulfillmentofthesignificantsalescontractsorsignificantprocurementcontractsignedbytheCompanyuptothereportingperiod
□Applicable√Notapplicable
(5)ConstituteofoperationcostAccordingtoindustry
InRMB
Industries
| Industries | Item | 2021 | 2020 | Increase/decreasey-o-y(+,-) | ||
| Amount | Ratioinoperationcost | Amount | Ratioinoperationcost | |||
| Pharmaceuticaldistribution | Salescost | 44,666,346,065.22 | 74.03% | 39,206,149,975.93 | 74.55% | 13.93% |
| Retailpharmacy | Salescost | 15,429,302,517.26 | 25.57% | 13,265,264,981.82 | 25.22% | 16.31% |
| Other | Othercost | 243,649,469.76 | 0.40% | 120,352,506.62 | 0.23% | 102.45% |
NoteN/A
(6)WhetherthechangesinthescopeofconsolidationinReportingPeriod
√Yes□NoDetailsofthechangesinthescopeofconsolidationinreportingPeriodfoundmoreinNoteVIofSectionX.FinancialReport.
(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinReportingPeriod
□Applicable√Notapplicable
(8)Majorsalesandmainsuppliers
MajorsalesclientoftheCompany
| Totaltopfiveclientsinsales(RMB) | 3,290,310,903.48 |
| Proportionintotalannualsalesvolumefortopfiveclients | 4.80% |
| Ratioofrelatedpartiesinannualtotalsalesamongthetopfiveclients | 0.00% |
InformationoftopfiveclientsoftheCompany
Serial
| Serial | Name | Salesamount(RMB) | Proportionintotalannualsales |
| 1 | No.1 | 986,633,581.55 | 1.44% |
| 2 | No.2 | 693,712,842.71 | 1.01% |
| 3 | No.3 | 569,811,978.70 | 0.83% |
| 4 | No.4 | 542,410,122.37 | 0.79% |
| 5 | No.5 | 497,742,378.15 | 0.73% |
| Total | -- | 3,290,310,903.48 | 4.80% |
Othersituationofmainclients
□Applicable√NotapplicableMainsuppliersoftheCompany
| Totalpurchaseamountfromtopfivesuppliers(RMB) | 7,149,354,710.42 |
| Proportionintotalannualpurchaseamountfortopfivesuppliers | 11.24% |
| Ratioofrelatedpartiesinannualtotalsalesamongthetopfivesuppliers | 1.44% |
InformationoftopfivesuppliersoftheCompany
| Serial | Suppliers | Purchaseamount(RMB) | Proportionintotalannualpurchases |
| 1 | No.1 | 4,198,796,922.26 | 6.60% |
| 2 | No.2 | 913,988,957.83 | 1.44% |
| 3 | No.3 | 707,108,393.82 | 1.11% |
| 4 | No.4 | 676,680,463.56 | 1.06% |
| 5 | No.5 | 652,779,972.95 | 1.03% |
| Total | -- | 7,149,354,710.42 | 11.24% |
OthernotesofmainsuppliersoftheCompany
□Applicable√Notapplicable
3.Expenses
InRMB
2021
| 2021 | 2020 | Increase/decreasey-o-y(+,-) | Noteofmajorchanges | |
| Sellingexpenses | 4,752,862,965.09 | 3,943,134,095.75 | 20.54% | Mainlyduetotheincrementalimpactbroughtbyacquisition,aswellasincreaseinthey-o-ygrowthoflaborcosts,depreciationofright-to-useassetsandrentalfeesfromcompanyexpansion,alargerincreaseincurrentsalesexpensesresultedcomparedwiththesameperiodoflastyear |
| Administrativeexpenses | 1,045,635,601.17 | 1,008,178,815.78 | 3.72% | Nomajorchangesoccurred |
| Financecosts | 212,482,801.90 | 119,855,169.85 | 77.28% | Mainlyduetothelarge-scaleacquisitionin2020,andcorrespondingconsiderationfortheacquisitionarepaidinsuccession,theinterestfromdepositdeclinedcorrespondinglyforthedecreaseofbankdeposit. |
4.R&Dexpenses
□Applicable√Notapplicable
5.Cashflow
InRMB
| Item | 2021 | 2020 | Increase/decreasey-o-y(+,-) |
| Totalcashinflowsfromoperatingactivities | 72,335,807,374.26 | 63,412,452,004.15 | 14.07% |
| Totalcashoutflowsfromoperatingactivities | 70,680,626,397.39 | 61,909,705,405.68 | 14.17% |
| Netcashflowsfromoperatingactivities | 1,655,180,976.87 | 1,502,746,598.47 | 10.14% |
| Totalcashinflowsfrominvestingactivities | 173,179,559.74 | 211,813,981.71 | -18.24% |
| Totalcashoutflowsfrominvestingactivities | 628,711,629.74 | 2,995,043,135.68 | -79.01% |
| Netcashflowsfrominvestingactivities | -455,532,070.00 | -2,783,229,153.97 | 83.63% |
| Netcashflowsfrominvestingactivities | 1,055,771,929.93 | 1,166,552,513.20 | -9.50% |
| Totalcashoutflowsfromfinancingactivities | 2,927,412,453.05 | 2,906,975,331.01 | 0.70% |
Netcashflowsfromfinancingactivities
| Netcashflowsfromfinancingactivities | -1,871,640,523.12 | -1,740,422,817.81 | -7.54% |
| Netdecreasedamountofcashandcashequivalent | -671,601,035.64 | -3,020,957,912.17 | 77.77% |
Mainreasonsfory-o-ymajorchangesinaspectofrelevantdata
√Applicable□Notapplicable
(1)Totalcashoutflowsfrominvestingactivitieshas79.01%downfromayearearlier,mainlybecausethepaymentforsubsidiaryacquisitionincurrentperiodbyGuodaDrugstoredecreasedcomparedwiththesameperiodofpreviousyear;
(2)Netcashflowsfrominvesting:has83.63%upfromayearearlier,mainlybecausethepaymentforsubsidiaryacquisitionincurrentperiodbyGuodaDrugstoredecreasedcomparedwiththesameperiodofpreviousyear;
(3)Netdecreasedamountofcashandcashequivalent:has77.77%upfromayearearlier,mainlybecausethepaymentforsubsidiaryacquisitionincurrentperiodbyGuodaDrugstoredecreasedcomparedwiththesameperiodofpreviousyear;andthecashreceivedfromsalesandprovinglaborserviceincreasedwiththesoaringoperationrevenueintheperiod.ReasonsofmajordifferencebetweenthecashflowofoperationactivityinreportperiodandnetprofitoftheCompany
□Applicable√Notapplicable
V.Analysisofthenon-mainbusiness
□Applicable√NotapplicableVI.Analysisofassetsandliabilities
1.Majorchangesofassetscomposition
InRMB
| Year-endof2021 | Year-beginof2021 | Ratiochanges(+,-) | Notesofmajorchanges | |||
| Amount | Ratiointotalassets | Amount | Ratiointotalassets | |||
| Cashandbankbalances | 5,126,159,080.94 | 11.98% | 5,998,204,295.87 | 15.15% | -3.17% | Nomajorchangesoccurred |
| Accountreceivable | 15,964,603,345.91 | 37.31% | 13,799,971,014.22 | 34.85% | 2.46% | Nomajorchangesoccurred |
| Contractassets | 29,061,159.52 | 0.07% | 15,177,731.64 | 0.04% | 0.03% | Nomajorchangesoccurred |
| Inventories | 7,621,541,595.08 | 17.81% | 6,285,010,674.46 | 15.87% | 1.94% | Nomajorchangesoccurred |
| Investmentproperties | 113,981,497.23 | 0.27% | 127,444,379.94 | 0.32% | -0.05% | Nomajorchangesoccurred |
Long-termequityinvestments
| Long-termequityinvestments | 2,459,832,546.74 | 5.75% | 2,287,019,627.99 | 5.78% | -0.03% | Nomajorchangesoccurred |
| Fixassets | 868,626,258.43 | 2.03% | 854,191,083.27 | 2.16% | -0.13% | Nomajorchangesoccurred |
| Constructioninprogress | 49,849,506.70 | 0.12% | 46,631,190.23 | 0.12% | 0.00% | Nomajorchangesoccurred |
| Right-to-useassets | 2,575,240,340.00 | 6.02% | 2,356,952,392.99 | 5.95% | 0.07% | Nomajorchangesoccurred |
| Short-termborrowings | 1,930,467,146.38 | 4.51% | 1,612,187,020.12 | 4.07% | 0.44% | Nomajorchangesoccurred |
| Contractliabilities | 431,303,231.37 | 1.01% | 368,600,357.14 | 0.93% | 0.08% | Nomajorchangesoccurred |
| Long-termborrowings | 71,637,173.89 | 0.17% | 31,637,173.89 | 0.08% | 0.09% | Nomajorchangesoccurred |
| Leaseliabilities | 1,375,427,877.28 | 3.21% | 1,303,054,163.90 | 3.29% | -0.08% | Nomajorchangesoccurred |
Foreignassetsaccountforahighproportion
□Applicable√Notapplicable
2.Assetsandliabilitymeasuredbyfairvalue
√Applicable□Notapplicable
InRMB
1.Assetsandliabilitiesatfairvalue2021
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Continuousmeasurementoffairvalue | ||||
| Receivablesfinancing | - | 1,027,226,940.21 | - | 1,027,226,940.21 |
| Otherinvestmentinequityinstruments | - | 62,488,312.99 | - | 62,488,312.99 |
| Othernon-currentfinancialassets | - | - | 135,974,908.51 | 135,974,908.51 |
-
| - | 1,089,715,253.20 | 135,974,908.51 | 1,225,690,161.71 |
2020
Inputappliedinthemeasurementoffairvalue
| Inputappliedinthemeasurementoffairvalue | ||||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total | |
| Level1 | Level2 | Level3 | ||
| Continuousmeasurementoffairvalue | ||||
| Receivablesfinancing | - | 1,404,987,700.38 | - | 1,404,987,700.38 |
| Otherinvestmentinequityinstruments | - | 99,488,340.28 | - | 99,488,340.28 |
| Othernon-currentfinancialassets | - | - | 120,972,350.24 | 120,972,350.24 |
-
| - | 1,504,476,040.66 | 120,972,350.24 | 1,625,448,390.90 |
2.Assetsandliabilitiesdisclosedatfairvalue
2021
| Inputappliedinthemeasurementoffairvalue | |||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total |
| Level1 | Level2 | Level3 | |
Long-termborrowings
| Long-termborrowings | - | 71,637,173.89 | - | 71,637,173.89 |
2020
| Inputappliedinthemeasurementoffairvalue | |||
| Quotedpricesinactivemarkets | Significantobservableinputs | Significantunobservableinputs | Total |
| Level1 | Level2 | Level3 | |
Long-termborrowings
| Long-termborrowings | - | 31,637,173.89 | - | 31,637,173.89 |
WhetherthemeasurementattributeformainassetsoftheCompanyhavechangedsignificantlyinthereportingperiod
□Yes√No
3.Assetsrightrestrictiontillendofreportingperiod
2021
| 2021 | 2020 | Note |
Cashandcashequivalents
| Cashandcashequivalents | 392,646,858.59 | 593,091,037.88 | (1) |
| Notesreceivablethatwereendorsed | 31,886,681.19 | 4,095,283.92 | (2) |
| Receivablesfinancingthatwerepledged | - | 2,620,000.00 | (3) |
424,533,539.78
| 424,533,539.78 | 599,806,321.80 |
(1)Asat31December2021,theGrouphaddepositsofbankacceptancebills,Medicalreservefunds,andotherrestrictedcashofRMB392,646,858.59(31December2020:RMB593,091,037.88)(AnnotationV-1inSectionX.FinancialReport)(2)Asat31December2021,theGrouphadnotesreceivableofRMB31,886,681.19(31December2020:notesreceivableofRMB4,095,283.92),whichwereendorsedbutnothavematured(AnnotationV-2inSectionX.FinancialReport)(3)Asat31December2021,theGrouphadnopledgedreceivablesfinancing(31December2020:2,620,000.00)(AnnotationV-4inSectionX.FinancialReport)VII.Investmentanalysis
1.Overallsituation
√Applicable□Notapplicable
(1)Duringthereportingperiod,theCompanyacquiredthetwoenterprisesincashwithcombinedunderthedifferentcontrol,includingYunnanGuodaDishengPharmaceuticalCo.,Ltd.(70%equity)andYunnanGuodaDishengPharmacyChainCo.,Ltd.(70%equity).NewsubsidiariesareestablishedbytheCompany,includingGuodaDrugstore(Heze)Co.,Ltd.(51%equity),SinopharmHoldingGuigangPharmacyCo.,Ltd.(100%equity)andHunanGuodaDrugstoreMedicineCo.,Ltd.(100%equity).
(2)Duringthereportingperiod,theCompanycompletedthecapitalcontributionforGuodaWanminHuiminKangweiPharmacyLvliangCo.,LtdandSinopharmHoldingGuodaJianfeng(Jiangmen)MedicineChainCo.,Ltd,-thenewenterprisesestablishedin2020,andpartofthecapitalcontributionforLiaoningHuludaoGuodaDrugstoreCo.,Ltd-thenewenterpriseestablishedin2020.
(3)Duringthereportingperiod,theCompanycompletedthecapitalincreasetoShanghaiPudongPharmaceuticalandHerbalMaterialsCo.,Ltd(75%equity)andShanghaiYanghetangPharmaceuticalChainOperationCo.,Ltd.(100%equity),aftercapitalincrease,theshareholdingratioremainedunchanged.
(4)Duringthereportingperiod,theCompanyacquiredtheassetsof15directoperatedstoresunderSinopharmHoldingNantongPujiPharmacyChainCo.,Ltdand32directoperatedstoresunderShanxiHuiminKangwei
DrugstoreChainCo.,Ltdincash.
(5)Duringthereportingperiod,theCompanytakes25%equityofJialong(Hainan)HealthManagementGroupCo.,Ltd.
(6)TheCompanysubscribestheSinopharmZhongjinMedicalIndustryFund(phaseII)duringthereportingperiod.Initialcapitalcontributionhasbeenpaid.FoundmoreinAnnotationV-(12),AnnotationVIandAnnotationVIIinSectionX.FinancialReport.
2.Themajorequityinvestmentobtainedinthereportingperiod
□Applicable√Notapplicable
3.Themajornon-equityinvestmentdoinginthereportingperiod
□Applicable√Notapplicable
4.Financialassetsinvestment
(1)Securitiesinvestment
□Applicable√NotapplicableThecompanyhadnosecuritiesinvestmentinthereportingperiod.
(2)Derivativeinvestment
□Applicable√NotapplicableThecompanyhadnoderivativeinvestmentinthereportingperiod.
5.Applicationofraisedproceeds
□Applicable√NotapplicableTheCompanyhadnoapplicationofraisedproceedsinthereportingperiod.VIII.Salesofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotapplicableTheCompanyhasnosalesofmajorassetsinthePeriod.
2.Salesofmajorequity
□Applicable√NotapplicableIX.Analysisofmainholdingcompanyandstock-jointlycompanies
√Applicable□NotapplicableSubsidiaryandjoint-stockenterprisewithanimpactofmorethan10%ontheCompany’snetprofit
InRMB
Company
name
| Companyname | Type | Mainbusiness | Registercapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| SinopharmHoldingGuangzhouCo.,Ltd. | Subsidiary | Salesofdrugs,medicalapparatusandinstruments,freighttransportation,storage,loadingandunloading,glasswares,cosmeticsanddailymerchandise;otherbusinessservices,otherprofessionalconsultation,variousgoodsagencyandforself-operation,import&exportoftechnology,housesleasing | 3,553,249,393.17 | 18,509,814,495.03 | 4,863,231,359.84 | 35,615,183,095.63 | 916,466,812.83 | 681,500,987.20 |
| SinopharmHoldingGuodaDrugstoreCo.,Ltd.（note1） | Subsidiary | Chinesetraditionalpatentmedicine,chemicalpreparations,antibiotics,bio-chemicalmedicine,biologicalmedicine,diagnosismedicine,biologicalmedicinewithfeaturesoftreatmentanddiagnosis,shapedpackingfood,chemicalproducts,andvariouscommodityandtechniqueholdbyself-supportandagencyaswellasimport&exportoftechnology | 1,683,333,333.00 | 15,983,835,238.55 | 5,682,312,476.11 | 22,477,630,028.55 | 296,932,584.24 | 184,049,100.87 |
SinopharmHoldingGuangxiCo.,Ltd.
| SinopharmHoldingGuangxiCo.,Ltd. | Subsidiary | Retailanddistributioninrespectofpharmaceuticalproductsandmedicalapparatusandinstruments,wholesaleandretailsofhealthproducts | 521,407,965.79 | 4,942,831,190.03 | 1,228,470,399.97 | 6,547,103,824.95 | 198,578,757.26 | 174,291,465.30 |
Particularaboutsubsidiariesobtainedordisposedinreportperiod
√Applicable□Notapplicable
| Companyname | Themethodofobtainingandhandlingsubsidiariesduringthereportperiod | Theinfluencetothewholeproductionandperformance |
| YunnanGuodaDishengPharmaceuticalCo.,Ltd. | Acquisition | Expandthebusinesslayoutofmedicinedistributioninlocalarea,andwithoutmajorinfluenceonperformanceoftheCompany |
| YunnanGuodaDishengPharmacyChainCo.,Ltd. | Acquisition | Expandthebusinesslayoutofmedicineretailinlocalarea,andwithoutmajorinfluenceonperformanceoftheCompany |
| GuodaDrugstore(Heze)Co.,Ltd. | Establishment | Expandthebusinesslayoutofmedicineretailinlocalarea,andwithoutmajorinfluenceonperformanceoftheCompany |
| SinopharmHoldingGuigangPharmacyCo.,Ltd | Establishment | Expandthebusinesslayoutofmedicineretailinlocalarea,andwithoutmajorinfluenceonperformanceoftheCompany |
| HunanGuodaDrugstoreMedicineCo.,Ltd. | Establishment | Expandthebusinesslayoutofmedicinedistributioninlocalarea,andwithoutmajorinfluenceonperformanceoftheCompany |
Explanationonmainholdingandstock-jointlyenterpriseNote1:ThenetprofitofGuodaDrugstore,asubsidiaryoftheCompany,decreasedby61.38%comparedwiththesameperiodoflastyear,whichwasmainlyduetotheresultsoftheimpairmenttestongoodwillandintangibleassetsthisyear.Followingtheprincipleofprudence,GuodaDrugstoremadeprovisionforimpairmentofgoodwillandintangibleassets(branduserightsandsalesnetwork)ofitssubsidiaries,ShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.(andSinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.),pleaseseedetailsintheNoticeonProvisionsforImpairmentofChinaNationalAccordMedicinesCorporationLtd.(No.:2022-03).Atthesametime,therewere1155newlyopeneddirect-operatedstoresin2021,ofwhichtheinitialinvestmentwaslargeandthebenefitshavenotyetappeared.Duetomultipleinfluencessuchasindustrypoliciesandthepandemic,theprofitspaceshrank.
X.StructuredvehiclecontrolledbytheCompany
□Applicable√NotapplicableXI.FutureDevelopmentProspects
(i)Industrypatternandtrend
(1)Astheconcentrationofthepharmaceuticalindustryincreases,thebusinessmodelwillbereconstructed.AccordingtotheGuidingOpinionsonPromotingHigh-qualityDevelopmentofDrugCirculationIndustryinthe"14th
Five-yearPlan"PeriodissuedbytheMinistryofCommerce,theoverallgoalby2025istocultivate1-3large-scaledigitalandcomprehensivedrugcirculationenterprisesofover500billionyuanand5-10large-scaledigitalandcomprehensivedrugcirculationenterprisesofover100billionyuan,andthedrugretailchainrateiscloseto70%.Itcanbeseenthatthestatesupportsandencouragestheformationofanationalandregionalleadingpattern,whethertheupstreamoriginaldrugmanufacturers,genericdrugmanufacturers,orthemidstreamdistributionenterprises,willacceleratetheriseofmarketconcentration,whilethesmallandmediumsizecirculationenterpriseswithweakcomprehensivestrengthwillbeeliminated,thebusinessmodelofthecirculationindustrywillbereconstructed.
(2)Withtheaccelerationandexpansionofcentralizedprocurement,thegrossprofitmarginisfurtherreduced.Thescopeofvolume-basedcentralizedprocurementwillcontinuetoexpand,drugpriceswillfurtherdecrease,andgrossprofitmarginwillbefurtherreduced.Chemicalmedicine,Chinesepatentmedicineandbiologicalmedicinewillcarryoutvolume-basedcentralizedprocurementinanall-roundway,andhigh-valuemedicalconsumableswillfocusonorthopedicconsumables,drugballoons,dentalimplantsandothervarieties.Atthesametime,cross-regionalalliancevolume-basedprocurementwithquantitywillgraduallybecomeatrend;whilemoreandmorevarietiesofChinesepatentmedicineandbiologicalagentswillbeincludedinthecentralizedprocurement.Withthefurtherexpansionofcentralizedprocurement,thegrossmarginofpharmaceuticalconsumableswillfurtherdecline.
(3)Theinnovation,transformationandupgradingofthepharmaceuticalmarkethasacceleratedthereshuffleoftheindustry.Asthemedicalreformentersthedeepend,themedicalecologyhaschangedgreatlyduetovolume-basedprocurementandmedicalinsurancenegotiation.Policiesencourageinnovation.Inthefaceofthenewpattern,traditionalpharmaceuticalenterprisesseektransformationinmarketingmodels,researchanddevelopmentstrategies,overseaslayoutsandotheraspectstocopewithorleadthedevelopmentoftheindustrytrends.Accordingtothenationalpolicyorientationandtheincreasinglyfiercecompetitionamongcirculationenterprises,circulationenterpriseswillconstantlypromotebusinessmodelinnovationandserviceinnovation,andimprovebusinessperformancewhilesteadilydevelopingthescale.
(4)Theincreaseinmarketdemandforpharmaceuticalconsumptionanddiversifiedpaymentfundswilljointlysupportthescaleofthepharmaceuticalretailmarket.AccordingtotheforecastofMENET.COM.CN,by2029,themarketsizeofretaildrugstoreterminalalonewillreach1.15trillionyuan.
(5)Innovativedrugs,traditionalChinesemedicineandothercategorieswillbecomethemainforcedrivingthepharmaceuticalretailmarketinChina.Accordingtothe"14thFive-YearPlan"forPharmaceuticalIndustryDevelopmentjointlyissuedbytheninegovernmentdepartmentsonJanuary2022,aninnovation-drivendevelopmentpatternwillbefullyformed,withmoreoriginalinnovativedrugsand"leading"products,Chinawillbecomeanimportantsourceofglobalpharmaceuticalinnovation.AccordingtotheforecastofIQVIA,inthenextfiveyears,drivenbytheincreaseinthenumberandconsumptionofinnovativedrugsonthemarket,China'spharmaceuticalexpenditurewillgrowata3.8%CAGR,andthegrowthwillbemainlydrivenbytheinnovatorbranddrugs,withaCAGRof10.4%from2022to2026.Retailpharmacieswillenjoythiswaveofout-of-hospitalmarketdividendoftheseinnovativedrugsthroughthe"dualchannel"qualification.
(6)Withthereformof"linkageofmedicalservices,medicalinsurance,andmedicine",thedrugpriceshavedroppedcomprehensively,theretailpharmaciesneedtoacceleratethedevelopmentandtransformationdrivenbyinnovativeservicesandcultivatenewrevenuegrowthpoints.Comparedwiththetransformationandinnovationideasoftheworld-classenterprises,suchastheinnovativemedicalandhealthservicestrategyofWalgreensBootsAlliance,andvigorouslydevelopshealthcareclinicservicessuchasVillageMD,andHealthCorner.(ii)Possiblerisks
1.TheCOVID-19pandemiccontinuestoaffect.AlthoughtheCOVID-19pandemichasbeeneffectivelybroughtundercontrolinChina,therearestillsporadicoutbreaks.Incaseofanoutbreakwithinthecompany'sbusinessarea,thedeclineofoutpatientvisitsandoutpatientdrugconsumptionwillstillhaveasignificantimpactonthecompany'sbusinesswithinthecurrentstrictpreventionandcontrolmeasures.
2.Policyrisks:Nationalpolicieshavedirectguidanceandinfluenceonthedevelopmentofpharmaceuticalretailindustry.Underthepremiseofcontrollingthecostofmedicalinsurance,thecentralizedandvolume-basedprocurementofdrugshavebecomenormalizedandinstitutionalized,andthepricesofdrugshavedroppedinanall-roundway.Inadditiontofull-scaleincreaseinthevarietyandquantityofdrugsbycentralizedprocurement,drugpricelinkagemechanismhasalsobeensuccessivelyimplementedinsomeregions.Thesupplychainabilityandprofitabilityofretaildrugstoresarefacingchallenges.Atthesametime,thesupervisionofmedicalinsurancefundisbecomingstricter.Theinformatizationconstructionofmedicalinsurancewillbeacceleratedcomprehensively,andanationalunifiedmedicalinsuranceinformationplatformwillbebuilt.Inthefuture,thenationalunifiedmedicalinsuranceinformationplatformwillbeverticallyandhorizontallyconnected,internallyandexternallyinterconnected,andecologicallyintegrated,andthemedicalinsuranceinformationwillbecomprehensivelytransparent.Thesupervisionofmedicalinsurancefundwillbeupgradedcomprehensively,withhigherrequirementsoncomplianceoperationofpharmacies,thecompliancecostsofpharmacieswillincrease.
PoliciesonrulesofInternetdiagnosisandtreatmenthavebeenissued,andstrictrestrictionshavebeenimposedonissuingprescriptionsforthefirstvisitandonthestatisticsofmedicationinformation.Businessoperationsofdrugstoressuchasonlinediagnosisandtreatmentandpharmaceuticale-commercealsofacegreatercompliancerequirements.
3.Marketchangesandmarketcompetitionrisks:Thepharmaceuticalretailindustryhasenteredastageofhigh-qualitydevelopment,thegrowthrateofmarketsizehassloweddown,whiletheoverallnumberofstoresisstillincreasing.Inthisenvironment,thecompetitionintheindustryintensifies,allmajorchainstoresareseizingtheopportunitytoexpandtheirstorevolumebymeansofself-opening,franchising,andmergersandacquisitions,andtheindustryconcentrationcontinuestoincrease.Theuptrendofcustomerflowinofflinedrugstoresisblocked,whichisnotonlysqueezedbyonlinechannels,butalsoaffectedbythereturnofsomepatientstohospitalscausedbycentralizedprocurement.Retailpharmaciesfacechallengesfromhorizontalcompetition,onlinechannelcompetition,andcompetitionfrommedicalinstitutions,especiallyprimarymedicalinstitutions.Asascale-leadingchaindrugstoreenterpriseintheindustry,GuodaDrugstorehasastorenetworkcovering20provincesandcitiesacrossthecountry.BackedbySinopharmGroupandSinopharmAccord,ithascompetitiveadvantagesinsupplychaincapabilities,hospitalchannelresources,brandvalue,andlogisticscapabilities.However,astheindustrycompetitionintensifies,therearestillchallengestomaintaintheindustry'sleadingposition,scaleandcompetitiveadvantage.
4.Publicopinionrisks:ThepopularityoftheInternethasledtotherapidspreadofnetworkinformation.Withthecontinuousexpansionofonlinesocialnetworks,thespreadofinformationisnotonlythroughtraditionalmedia,butalsothroughthedynamicsofsocialaccountsharing,sopublicopinionhasbecomeamoreimportantrisk.
5.Compliancerisks:Inrecentyears,drugmanagementhasbecomestricterandGSPregulationshavebecomemorestringent.Forexample,theappearanceinconformityofTraditionalChineseMedicinedecoctionpiecesandthemoldandmoth-eatendrugsarealltreatedascounterfeitandinferiormedicines.Penaltiesforviolationshavebeenincreased.Inadditiontoexposureandgraduallyrisingfines,penaltiessuchasrevocationofmedicalinsurancequalificationshavealsooccurredfromtimetotime.Theimplementationoftheneweditionofthe"DrugAdministrationLaw"meansthatwewillfacethemostseverepunishmentunderthestrongestsupervision.Governmentmarketmanagementactivitiessuchasmonitoring,inspectionandpunishmentincooperationwithpandemicmanagementarealsobecomingmorefrequent.
6.Theriskofgoodwillimpairments:On31December2021,thebookvalueofgoodwillinconsolidatefinancialstatementlistedas2,776millionYuan,anddistributedtotheassetsgroupofdistributiondivisionandretaildivision.InaccordancewiththeAccountingStandardsforBusinessEnterprises,theCompanycarriedoutannualimpairmenttestforthegoodwill.ImpairmentofgoodwillwillreleasedontheNoteIII.-17and33,NoteV-18listedundertheSectionX.FinancialReport
(iii)Thecompany’sbusinessplanIn2022,SinopharmAccordwillcontinuetocomprehensivelystrengthentheleadershipoftheparty,accuratelygraspthenewdevelopmentstage,thoroughlyimplementthenewdevelopmentconcept,andacceleratetheconstructionofanewdevelopmentpattern.Takinghigh-qualitydevelopmentasthemainlinegoal,guidedbythe"14thFive-YearPlan"strategicplan,focusingoncustomervalue,andtaking"technologicalempowerment,serviceupgrade,wholesaleandretailintegration,andindustry-financedualdrive"asthecoredevelopmentmeasures,wewillbuilda"1-2-6"digitalmedicalandhealthcareservicesystembasedonomni-channel,full-category,andfull-lifecycle.,paycloseattentiontothedevelopment,changesandtrendsofthenationalmedicalreformpolicy,strengthentheresearchandjudgmentofindustrypolicytrends,coordinateeffortstoensuresteadygrowth,makestructuraladjustments,promoteinnovation,strengthenscienceandtechnology,andguardagainstrisks,and"seekchangeinstability"and"increasestabilityinchange"toachievehigh-qualitydevelopment.
1.Puttheemphasisondevelopmentofbothinternalgrowthandexternalexpansion,andmaintainaleadingpositionintheindustryStrengthentheguidanceofstrategicplanning,whilesteadilydevelopingtraditionalbusinesses,wewilldoagoodjobininternalinnovationanddevelopmentandexternalM&Aexpansiontocontinuouslyincreasemarketshares.Strengthenthedistributionsegmentandconsolidatetheleadingposition;expandtheretailsegmentandimproveprofitability.
2.Comparewithfirst-classmanagementimprovementandenhanceenterprisecompetitivenessMakeupforweakness,deepenorganizationalreformandmanagementinnovation,promotethemodernizationofmanagementcapabilitiesandmanagementsystems,andimprovesupportforstrategyimplementationandbusinesstransformation.Focusonhumanresourceefficiencyandbenefitgoals,optimizethedevelopmentofmanagement,talents,andorganizations,andmaintainahighmatchingrateandahighsupplyrateamongtalents,strategies,andbusiness.Customer-oriented,insistonmanagementimprovementandvaluecreation.Focusingoncustomerneedsandcombinedwithbusinessscenariostoacceleratetheapplicationofbigdata,artificialintelligenceandothertechnologies,strengthenthepromotionofdigitaltransformationprojects,anddriveinnovativeservicesandsupplychainupgradeswithdigitization.
3.Adjustthestructuretopromotetransformationandbuildanewvalue-drivenbusinessmodelGraspthechangesindemandintheupstreamanddownstreamoftheindustrialchain,focusoncustomervalueorientation,buildanomni-channel,full-industry-chain,andfull-life-cycleservicesystem,andwindevelopmentopportunitiesintheinnovativeservicetrack.
4.DistributionofSinopharmAccordfocusesonthestrategyof"onebodyandtwowings",andcontinuesthetransformation,innovationanddevelopment
Strengthenstrategicgoalorientation,facechanges,focusonshare,andimproveefficiency.Continuetodevelopretailbusiness,improvenetwork,enrichvarieties,coordinatewholesaleandretail,andmakecharacteristicdevelopment,soastostrengthenandupgradecompetitiveadvantages.Establishamarketingservicesystem,integratewholesaleandretailnetworkresources,expandCSOproductprojects,promotemarketingsystemandteambuilding,andimprovethemarketingservicecapabilitiesofmedicalinstitutionsandendconsumers.Continuetopromotebusinesstransformationandinnovation,integratedigitaltransformationandsupplychainoptimizationintothebusiness,andachievemodelbreakthroughandscaleimprovementofinnovativebusiness.Providecomprehensive4Doverallservicesolutionstoenhanceintegratedservicecapabilities;continuetoexpandtheleadingadvantagesofSPDbusiness,promotetheupgradeofserviceplatformsandoperationandmaintenancecapabilities;continuetopromotetheupgradeofvalue-addedservicesofthird-partylogistics,andexploreandbuildwarehousedistribution+coldchain+SPD+2C+logisticsservicecapability.
5.GuodaDrugstorequicklyexpandsitsscale,anddigsdeepintothemarkettoimproveefficiencyStrengthenstrategicguidance,furtherincreaseregionalbusinessintegrationandacceleratethemergersandacquisitionsofintentionalcooperationprojects,enhanceself-openingstoresandfranchisecooperation,acceleratenationalretaillayout,furtherfillblankmarkets,andexpandnewprovincial-levelmarketlayouts.Continuetopromotethenationalintegratedoperation,enhancetheadvantagesofeconomiesofscale,andbuildthecorecompetitivenessofGuoda.Strengthentheonlinelayout,focusonincreasingtheconstructionofself-operatedplatformsandInternethospitals,andexplorethelayoutofcommercialhealthinsurance.Activelyrespondtothe"dual-channel"policy,andstrivetoachievefullcoverageofdual-channeldesignatedpharmaciesinallprovincesandcities.Strengthenthebreakthroughofallproductsandthecombinedactionbetweenpurchaseandsales,systematicallypromotetheimprovementofgrossprofitmargin,andcontinuetopromotethedevelopmentofitsownbrandproductseriesandtheconstructionofmarketingsystem.Promotetheintegrationofretailbrandresourcesinanorderlymanner,andstrengthentheretailbrandinfluenceof"GuodaDrugstore".Continuetopromotedigitaltransformation,andcontinuouslyimproveprofessionalservicecapabilities.
6.Promotethefullcoverageofwholesaleandretailintegration,andexplorevariousmodelsforoperationContinuetopromotethefusionofwholesaleandretailintegrationofSinopharmAccord,inaccordancewiththemodelof"onepolicyforoneplace,dynamicpromotion"andbasedontheoperationcharacteristicsofvariousregions,andoutputeffectivebusinessmodelsandprofitmodels.Onthebasisoftheoriginal15pilotareas,add13areastoachievefullcoverageof28areasacrossthecountry.Encourageregionalexplorationofbusinessintegration,equityintegration,organizationalintegration,membershipstoresandothermodeloperations,andcontinuetopromoteall-roundcoordinationofwholesaleandretailintegrationthroughbusinessprocurementcoordination,logisticscoordination,combinedactionofretailequipment,andmanagementcoordination.
7.Guidebyhigh-qualitypartybuilding,andcreateacleanandpositivedevelopmentenvironment
Comprehensivelystrengthentheparty'spoliticalandideologicalbuilding,andadheretotheintegrationofpartyleadershipandcorporategovernance.Deepentheconstructionofprimarypartyorganizations,andpromotecomprehensiveandstrictgovernanceoftheparty.Cultivateandcreateawarm,profound,broadandhighcorporateculturethatmatchesthedevelopmentofthe"14
th
Five-YearPlan"strategicplanofSinopharmAccordtohelpthedevelopmentofthecompany.
XII.Receptionofresearch,communicationandinterviewsduringthereportingperiod
√Applicable□Notapplicable
Time
| Time | Location | Way | Receptionobject | Type | Maincontentsofthediscussionandtheinformationprovided | Basicsituationindexofinvestigation |
| 2021-04-12 | AccordPharmacyBldg. | Telephoning | Institutions | Institutions | PerformanceandoperationoftheCompany | Recordoftheinvestorrelationsactivities(No.:2021-1) |
| 2021-04-28 | AccordPharmacyBldg. | Fieldresearch | Institutions | Institutions,individual | BasicoperatingsituationoftheCompanyandfutureoutlook | ResolutionoftheAnnualGeneralMeeting2020(NoticeNo.:2021-19) |
| 2021-06-25 | AccordPharmacyBldg. | Fieldresearch | Institutions | Institutions,individual | BasicoperatingsituationoftheCompany | ResolutionoftheFirstExtraordinaryShareholders’GeneralMeetingof2021(NoticeNo.:2021-25) |
| 2021-11-30 | AccordPharmacyBldg. | Other | Individual | Individual | BasicoperatingsituationoftheCompanyandfutureoutlook | OnlinecollectivereceptiondayforinvestorsoflistedcompaniesinShenzhen2021https://rs.p5w.net/html/130747.shtml |
SectionIV.CorporateGovernance
I.CorporategovernanceoftheCompanyDuringthereportingperiod,thecompanystrictlyfollowedtherequirementsoftheCompanyLaw,SecuritiesLaw,GovernmentGuidelinesforListedCompaniesandtherelevantlawsandregulationsoftheChinaSecuritiesRegulatoryCommissionandShenzhenStockExchange,continuouslyimprovedthecompany’scorporategovernancestructure,andestablishedandimprovedthecompany’sinternalcontrol.Thegeneralmeetingofshareholders,theboardofdirectorsandtheboardofsupervisorshavestandardizedoperations,independentdirectorsandspecializedcommitteesoftheboardofdirectorshaveperformedtheirrespectiveduties,continuouslystrengthenedcompanymanagement,controlledandpreventedrisks,standardizedcompanyoperations,andimprovedoperationalefficiency.Thecompanygraduallyformedagovernancemechanismwithclearpowersandresponsibilities,standardizedoperations,mutualcoordination,andmutualchecksandbalancesamongpowerinstitutions,decision-makinginstitutions,supervisoryinstitutions,andmanagers.Duringthereportingperiod,thecompanystrengthenedinternalcoordinationandcommunication,revisedandimprovedinternalcontrolmechanismasRulesofProcedureoftheBoardandMeasuresfortheAdministrationofRelatedTransactions,andsortedoutvariousworkprocesses,andfurtherimprovedthecompany’smanagementqualityandoperationalefficiency.Atthesametime,itcontinuouslystrengthenedthemanagementofinsideinformation,furtherimprovedtheprocesssystemsofinsideinformationmanagement,strengthenedthedisclosureofinformation,improvedthemanagementofinvestorrelations,strengthenedandimprovedthemanagementofaffiliatedcompanies,sothatthecompany’sstandardoperationlevelhasbeenfurtherimproved.Inthefuture,thecompanywillcontinuetostrictlyimplementthespecificrequirementsoftheregulatoryagencies,strengthentheimplementation,improvetheevaluationmechanism,andimprovethecorporategovernancestructure,atthesametime,strengthensupervision,andstrivetopromotegovernancetoahigherlevel.
IsthereanydifferencebetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC?
□Yes√NoTherearenodifferencesbetweentheactualconditionofcorporategovernanceandrelevantregulationsaboutcorporategovernanceforlistedcompanyfromCSRC.
II.IndependenceoftheCompanyrelativetocontrollingshareholderandtheactualcontrollerinensuringtheCompany’sassets,personnel,finance,organizationandbusinessesTheCompanytotallyseparatesfromthecontrollingshareholdersinbusiness,personnel,assets,institutions,financialandotheraspects,withindependentandcompleteself-managementability.
1.Thebusiness:theCompanywasindependentfromcontrollingshareholders,havingacompletebusinesssystemandself-managingability;thecompanyhasindependentprocurementandsalessystemthusallprocurementandsalesisinchargeofthepurchasingdepartmentandsubordinatesubsidiary;eachsegmentisseparated;theCompanyisalegalmarketpersonwithindependentoperation.
2.Personnel:proceduresofthecontrollingshareholdernominatingdirectorsandgeneralanddeputygeneralmanagerarelegal;nointerveneontheappointmentandremovalofpersonnelmadebytheboardofdirectorsandshareholders’meetinghappened;theCompanysetupindependenthumanresourcedepartment,responsibleforassessment,trainingandsalaryreviewonstaff,makingrulesandregulationsandhandbooktheemployeesshouldabideby.Labor,personnel,wagesandpension,medicalinsuranceandotherinsuranceareindependentlymanaged.
3.Institution:productionandoperationmechanismandadministrativemanagementiscompletelyindependentfromthecontrollingshareholderoractualcontroller;officesandsitesofbusinessoperationseparatefromthecontrollingshareholder;theCompanyestablishedcorporategovernancestructurewheretheboardofdirectors,boardofsupervisorsandmanagerscarryouttheirdutiesandexercisetheirrespectivedutiesinaccordancewithrelevantprovisionsofthearticlesofassociation.
4.Asset:propertyandrightsrelationshipbetweentheCompanyandthecontrollingshareholderisclear,withindependentoperations;thecompanyhasindependentproductionsystem,auxiliaryproductionsystemandsupportingsystem;industrialpropertyrights,trademarks,non-patentedtechnologyandotherintangibleassetsownedbytheCompanyanditssubsidiary.
5.Financialaspects:theCompanyestablishedindependentfinancialdepartmentsandindependentfinancialaccountingsystem;theCompanyopenedabankaccountindependently;thefinancialstaffisindependentwithouttakingpart-timeandreceivingremunerationinthecontrollingshareholder;theCompanypaystaxindependently.
III.Horizontalcompetition
√Applicable□Notapplicable
Type
| Type | Typesofaffiliationswithlistedcompanies | Nameofcompany | Natureofthecompany | Reason | Solutionmeasure | Workscheduleandfollow-upplan |
| Horizontalcompetition | Controllingshareholder | SinopharmHolding | SASAC | DistributionsubsidiaryofSinopharmHoldingestablishedsomesocialretailpharmacy,whichmighthavehorizontalcompetitionwiththeGuodaDrugstore,the | InDecember2016,SinopharmHoldingissuedacommitmentletterofavoidinghorizontalcompetitionwithSinopharmAccord,andpromise | OnJuchaoWebsite,theNoticeonRelatedTransactionsofControllingShareholdersMeettheCommitmentsandSolvetheHorizontalCompetitionAmongSocial |
subordinateenterpriseofthelistedcompanyafterrestructuring
subordinateenterpriseofthelistedcompanyafterrestructuringtosolvethehorizontalcompetitioninrespectofpharmaceuticalretailbusinessinanappropriatewaywithinfiveyearssincethedatewhenreorganizationcompleted
| RetailPharmacy(NoticeNo.:2021-42)andtheNoticeonProgressofEnteringtheLetterofIntentbyControllingSubsidiary(NoticeNo.:2022-05)werereleasedbytheCompanyrespectivelyonDecember31,2021andMarch25,2021,matterswithhorizontalcompetitionconcernedarecontinuingtoberesolved. | ||||||
| Horizontalcompetition | Theactualcontroller | SINOPHARM | SASAC | DistributionsubsidiaryofSINOPHARMestablishedsomesocialretailpharmacy,whichmighthavehorizontalcompetitionwiththeGuodaDrugstore,thesubordinateenterpriseofthelistedcompanyafterrestructuring | InDecember2016,SINOPHARMissuedacommitmentletterofavoidinghorizontalcompetitionwithSinopharmAccord,andpromisetosolvethehorizontalcompetitioninrespectofpharmaceuticalretailbusinessinanappropriatewaywithinfiveyearssincethedatewhenreorganizationcompleted | OnJuchaoWebsite,theNoticeonRelatedTransactionsofControllingShareholdersMeettheCommitmentsandSolvetheHorizontalCompetitionAmongSocialRetailPharmacy(NoticeNo.:2021-42)andtheNoticeonProgressofEnteringtheLetterofIntentbyControllingSubsidiary(NoticeNo.:2022-05)werereleasedbytheCompanyrespectivelyonDecember31,2021andMarch25,2021,matterswithhorizontalcompetitionconcernedarecontinuingtoberesolved. |
IV.AGM(AnnualGeneralMeeting)andextraordinaryshareholders’generalmeetingheldinthePeriod
1.AGM
| Sessionofmeeting | Type | Ratioofinvestorparticipation | Date | Dateofdisclosure | Indexofdisclosure |
| AnnualGeneralMeetingof2020 | AGM | 64.31% | April28,2021 | April29,2021 | “NoticeofResolutionofAGMof2020”No.:2021- |
| 19 | |||||
| Firstextraordinarygeneralmeetingof2021 | Extraordinarygeneralmeeting | 63.27% | June25,2021 | June26,2021 | 2021-25“NoticeofResolutionofFirstextraordinarygeneralmeetingof2021”No.:2021-25 |
2.Requestforextraordinarygeneralmeetingbypreferredstockholderswhosevotingrightsrestore
□Applicable√Notapplicable
V.Directors,supervisorsandseniorofficers
1.Basicinformation
| Name | Title | Workingstatus | Sex | Age | Startdatedofofficeterm | Enddateofofficeterm | Sharesheldatperiod-begin(share) | Stockoptions | Numberofrestrictedsharesgranted(share) | Numberofsharesincreasedinthisperiod(share) | Numberofsharesdecreasedinthisperiod(share) | Otherchanges(share) | Sharesheldatperiod-end(share) | Reasonsforincreaseordecreaseofshares |
| ChenShengqun | Independentdirector | Currentlyinoffice | M | 59 | April17,2018 | 1,500 | 0 | 0 | 0 | 0 | 0 | 1,500 | ||
| ChenChangbin | DeputyGM,SecretaryoftheBoard | Currentlyinoffice | M | 54 | January13,2015 | 2,651 | 0 | 0 | 0 | 0 | 0 | 2,651 | ||
| Total | -- | -- | -- | -- | -- | -- | 4,151 | 0 | 0 | 0 | 0 | 0 | 4,151 | -- |
Duringthereportingperiod,whethertherewasanydepartureofdirectorsandsupervisorsanddismissalofSeniorOfficers
√Yes□NoInMarch2021,Mr.LiDongjiuappliedforresignationasdirectorof8
thBOD,memberofstrategycommitteeoftheBoardandmemberoflegal&compliancecommitteeoftheBoardduetotheworkadjustment.InNovember2021,Mr.ZhouSongappliedforresignationasdirectorof9
th
BOD,memberofriskinternalcontrol&auditingcommitteeoftheBoardandmemberoflegal&compliancecommitteeoftheBoardduetotheworkarrangement.
Changesofdirectors,supervisorsandseniorexecutives
√Applicable□Notapplicable
Name
| Name | Title | Type | Date | Reasons |
| LiDongjiu | Director | Officeleaving | March2,2021 | Adjustmentofworkarrangement,andnolongerservesasDirectorandotherpositionoftheCompany |
| ZhaoXiaochuan | DeputyGM | Appointment | May21,2021 | Adjustmentofworkarrangement |
| JiangXiuchang | Director | Leavingattheendofthetermofoffice | June25,2021 | ChangeofBoardofDirectors |
| LiXiaojuan | Director | Beelected | June25,2021 | ChangeofBoardofDirectors |
| ZhouSong | Director | Beelected | June25,2021 | ChangeofBoardofDirectors |
| LiuTianyao | DeputyGM | Leavingattheendofthetermofoffice | September30,2021 | Leavingattheendofthetermofoffice |
| ZhouSong | Director | Officeleaving | November3,2021 | Adjustmentofworkarrangement,andolongerservesasDirectorandotherpositionoftheCompany |
2.Post-holding
Professionalbackground,majorworkingexperienceandpresentmainresponsibilitiesinCompanyofdirectors,supervisorsandseniorexecutiveatthepresent
1.MembersofBODMr.LiuYong,joinedSinopharmGroupCo.,LtdinJanuary2003andservesasexecutivedirectorandpresidentofSinopharmHoldingsinceNovember2017andactsasdeputypartysecretaryofSinopharmHoldingsinceJanuary2018;Mr.Liuownover26yearsofworkingexperience,amongwhich,over23yearsarerelatedtomanagementexperienceinmedicineandhealthcareproductsindustry.Heisapharmacist-in-chargeandlicensedpharmacist.DuringtheperiodfromJuly1992toJuly1999,Mr.LiuworkedintheShanghaiPharma,andsuccessivelyservedasdeputygeneralmanagerofthemarketingdepartmentofShanghaiBranchofChinaNationalPharmaceuticalGroupCorporationandShanghaiGuodaDrugstoreChainCompanyLimitedfromJuly1999toApril2003.Mr.LiuservedasGMandpartysecretaryoftheSinopharmHoldingShenyangCo.,LtdfromApril2003toNovember2009;adeputypresidentofSinopharmHoldingfromJanuary2009toNovember2017;theSecretaryoftheBoardofSinopharmHoldingfromOctober2016toNovember2017andGeneralCounselofSinopharmHoldingfromJanuary2014toDecember2017.Currently,healsoactsastheDirectorofSINOPHARM,SinopharmHoldingGuodaDrugstoreCo.,Ltd.,ChinaNationalScientificInstruments&MaterialsCo.,LtdandChinaNationalMedicalEquipmentCo.,Ltd.;andexecutiveDirectorofSinopharmHoldingDistributionCenterCo.,Ltd.,andchairmanofSinopharmHoldingHongKongCo.,Ltd.andSinopharm
CICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd.Mr.LiuservesasDirectorofthe7
thBODoftheCompanysinceJanuary2017andChairmanofthe7
th
,8thand9thBODoftheCompanysinceOctober2017.Mr.LianWanyongisvicepresidentofSinopharmGroupCo.,Ltd.HejoinedChinaNationalPharmaceutical(Group)CorporationGuangzhouCompanyin1996andsuccessivelyservedasproductdirectorofYuexingPharmaceuticalCo.,Ltd.andseniorproductmanagerofHongKongTianjianInternationalCo.,Ltd.FromAugust2002toJanuary2004,heservedasdeputymanagerofthefinancialdepartmentofBarrlaboratories,Inc.,USA.FromJanuary2004toJune2005,hewasappointedasmanagerofoperationalauditdepartmentofChinaMedicinalMaterialsGroupCompany.FromJuly2005toJanuary2008,hewasappointedasdeputydirectoroffinancialassetmanagementdepartmentanddirectorofinvestmentmanagementdepartmentofChinaNationalPharmaceutical(Group)Corporation.FromDecember2010toFebruary2014,heservedasdeputygeneralmanagerofBeijingSinopharmAssetManagementCenter,fromApril2014toJanuary2018,heservedasdeputydirectorofthePolicyResearchOfficeofChinaNationalPharmaceuticalGroupCorporation.SinceJanuary2018,hehasbeenservingasvicepresidentofSinopharmGroupCo.,Ltd.,andMr.LianisconcurrentlyservingaschairmanofSinopharmHoldingAnhuiCo.,Ltd.,SinopharmHoldingHubeiCo.,Ltd.,andSinopharmHoldingChangshaCo.,Ltd.,anddirectorofChinaNationalMedicinesCorporationLtd.,directorofSinopharmCICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd.,directorofWestChinaDentalCo.,LtdandDirectorofSinopharmHoldingHunanCo.,Ltd.HeservesasDirectorof8
th
and9thBODoftheCompanysinceApril2018.Ms.LiXiaojuanisthechieffinancialofficerofSinopharmGroupCo.,Ltd.FromApril2001toFebruary2005,shesuccessivelyservedastheprojectmanagerofBeijingTianhuaAccountingFirmandthedeputydirectorofthestrategiccooperationdepartmentofTOPSUNGroupCo.,Ltd.;fromFebruary2005toAugust2010,shesuccessivelyservedasthemanagerofthefinancialdepartment,directoroftheauditingandsupervisoryoffice,andmanageroftheauditdepartmentofChinaNationalPharmaceuticalIndustryCo.,Ltd.;fromAugust2010toFebruary2021,shesuccessivelyservedasdeputydirectoroftheinvestmentmanagementdepartment,deputydirectoranddirectoroftheauditdepartment,anddirectorofthefinancedepartmentofSinopharm;ChiefFinancialOfficerofthecompany;sinceMarch2021,sheservesasthechieffinancialofficerofSinopharmGroupCo.,Ltd.,andnowconcurrentlyservesasthepresidentofSinopharmGroupGuizhouCo.,Ltd.andHutchisonWhampoaSinopharmPharmaceutical(Shanghai)Co.,Ltd.,anddirectorofChinaNationalMedicinesCorporationLtd.,andSinopharmHoldingHongKongCo.,Ltd.,andsheisadirectoroftheninthboardofdirectorsofthecompanyfromJune2021.Mr.WuYijian,secretaryoftheboardofSinopharmGroupCompanyLimited,andconcurrentlyservesasthepresidentofmanysubsidiariessuchasSinopharmGroupShanxiandSinopharmInnerMongolia.SinceJuly1993,heservedinSanjiuEnterpriseGroupandsuccessivelyservedasthesalesdirectorofSanjiuMedical&PharmaceuticalTradingCo.,Ltd.,thechiefoperatingofficerofSanjiuMedical&PharmaceuticalChainCo.,Ltd.,andthedeputygeneralmanagerofShanghaiSanjiuTechnologyDevelopmentCo.,Ltd.SinceJune2004,heservedinFosunPharmaceuticalGroup,andsuccessivelyservedasgeneralmanagerofShanghaiFosun
PharmaceuticalInvestmentCo.,Ltd.,generalmanagerofShanghaiFosunPharmaceuticalCo.,Ltd.,andgeneralmanagerofShanghaiFumeiPharmacyCo.,Ltd.From2014totheendof2015,heservedasthevicepresidentofShanghaiYuyuanTouristMartCo.,Ltd.Mr.WuiscurrentlyservingasthepresidentofChinaNationalShanxiCo.,Ltd,SinopharmHoldingShanxiCo.,ltd,SinopharmHoldingInnerMongoliaCo.,Ltd.,ChinaNationalHealthOnlineCo.,Ltd,andadirectorofSinopharmCICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd.FromSeptember2016toMay2019,heconcurrentlyservedasthechairmanoftheboardofsupervisorsofSinopharmAccord.FromNovember2020,heservesasadirectorofthe8
th
and9
thboardofdirectorsoftheCompany.Mr.LinZhaoxiong:DirectorandGMofSinopharmAccord.Hasservedasdeputymanagerandmanagerofpharmaceuticaldepartment,managerofPharmaceuticalcorporationsanddirectorofoperationandmanagementdepartmentduringhisworkinChinaPharmaceutical(Group)GuangzhouCo.,LtdfromJanuary1999toDecember2003insuccession;HehasactedasthedeputygeneralmanagerofSinopharmHoldingGuangzhouCo.,Ltd;thegeneralmanagerofSinopharmHoldingGuangzhouCo.,LtdfromDecember2006toDecember2008;HehasservedasthedeputygeneralmanageroftheCompanyfromDecember2008toMarch2016;MrLinservesasthechairmanofSinopharmHoldingGuodaDrugstoreCo.,LtdsinceOctober2017;andGMoftheCompanysinceMarch2016,Directorofthe7
th
,8
thand9thBODoftheCompanysinceApril2016.Mr.LinMinisthedeputygeneralmanageroftheCompany.HeworkedinChinaNationalPharmaceutical(Group)GuangzhouCompanyfromJanuary2001toNovember2003,successivelyservedasassistantmanageranddeputymanagerofPharmaceuticalDepartment,deputypurchasingmanagerofPharmaceuticalCompany,andservedascitypharmaceuticalsalesdirectorofSinopharmGuangzhouCo.,Ltd.fromNovember2003toJanuary2005,fromJanuary2005toDecember2008,heservedasdeputygeneralmanagerofSinopharmHoldingGuangzhouCo.,Ltd.,andconcurrentlyservedasgeneralmanagerofSinopharmHoldingGuangzhouCo.,Ltd.fromMarch2016toSeptember2021.HeservedasdeputygeneralmanageroftheCompanysinceDecember2008,fromNovember2020,hehasbeenservingasadirectorofthe8
th
and9thboardofdirectorsoftheCompany.Mr.ChenHonghui,ProfessoranddoctoralsupervisorinManagementofLingnan(University)College.FromJuly1993toJune2003,heworkedintheSchoolofManagementofWuhanUniversityofScienceandTechnologyasateachingassistantandlecturer.FromJuly2003untilnow,hehasbeenworkinginLingnan(University)Collegeandmanagementcollegeasanassociateprofessorandprofessor.From2007to2012,heservedasthedeputydeanofLingnan(University)College;from2008to2019,heservedasthedirectoroftheBusinessManagementDepartmentandEconomicManagementDepartmentofLingnan(University)College.Mr.ChenisconcurrentlyservingasthevicechairmanofGuangdongInternationalSocialResponsibility,independentdirectorofCabbeenFashionLimited,andindependentdirectorofGuangzhouGrandbuyCo.,Ltd.SinceMarch2017,hehasbeenservingasanindependentdirectorofthe7
th
,8
th
and9
th
boardofdirectorsoftheCompany.
Mr.OuYongliang,PracticingLawyerofChina,VicePresidentofGuangdongProvinceLawSociety,the8
th
and
thvicepresidentofAllChinaLawyersAssociation,the9
th
and10
th
presidentofGuangdongLawyersAssociation,directorofGuangdongHopesunLawFirm,chairmanofGuangdongPublicWelfareFoundationforPromotingtheRuleofLaw,memberofthe12thGuangdongProvincialCommitteeofCPPCC,expertconsultantofthe11thPartyCongressoftheGuangdongProvincialCommitteeoftheCommunistPartyofChina,legislativeconsultantofthe12
th
StandingCommitteeofGuangdongProvincialPeople'sCongress,speciallyinvitedmemberofthe11thGuangdongProvincialCommitteeoftheCPPCC,memberofJudgesandProcuratorsSelectionCommitteeofGuangdongProvince,representativeoftheNinthCongressoftheGuangzhouMunicipalityoftheCommunistPartyofChina,anarbitratoroftheShanghaiInternationalArbitrationCommission,anarbitratoroftheShenzhenInternationalArbitrationCommission,anarbitratoroftheGuangzhouArbitrationCommission.SinceApril2018,hehasbeenservingasanindependentdirectorofthe8
th
and9thboardofdirectorsoftheCompany.Mr.ChenShengqunisanassociateresearcherandsenioraccountant,hehasbeenteachingattheShanghaiNationalAccountingInstitutesince2013.Mr.ChencameoutofthepostdoctoralresearchstationofShanghaiUniversityofFinanceandEconomicsin1998asthefirstpostdoctoralfellowinmanagementaccounting.HewasemployedasaseniorresearcherattheCAFRCenteroftheHongKongPolytechnicUniversityandiscurrentlyavisitingprofessorofEDPcurriculumattheXiamenUniversity.Since1998,Mr.ChenhasservedasdirectorofthefinancedivisionofChinaPacificInsuranceCo.,Ltd.,in2002,hewastransferredtoserveasdeputygeneralmanagerofthefinancingplandepartmentofChinaPacificInsuranceCo.,Ltd.(presidingwork),attheendof2003,hejoinedChinaReinsuranceGroupandsuccessivelyservedasgeneralmanagerofthefundapplicationdepartmentofChinaContinentInsurance(concurrentlygeneralmanagerofthestrategicdevelopmentdepartment,andgeneralmanagerassistantofChinaReAssetManagementCompany.Heservesasindependentdirectorofthe
th
and9
th
BODoftheCompanysinceApril2018.Ms.SuWeiwei:Doctorofpharmacy,secondaryprofessorofSchoolofLifeSciencesofSunYat-SenUniversityandadoctoralsupervisor.SheworkedinGuangdongpharmaceuticalUniversityfromJuly1987toApril2000,andsuccessivelyservedasateachingassistant,lecturers,associateprofessorandprofessor,sheservesasasecondaryprofessorinSunYat-SenUniversitysinceMay2000.Ms.SuWeiweihavedevotedherselftotheresearchanddevelopmentofinnovativedrugsformanyyears,andachievedtwochemicalclinicalpermissionforfirst-typenewdrugsandoneclinicalpermissionforthefifth-typenewdrugsofTCM(traditionalChinesemedicine),owns88itemswithindependentintellectualpropertyrights.Heservesasindependentdirectorofthe
th
and9
th
BODoftheCompanysinceJanuary2019.
2.MembersofBOSMr.WenDeyong,joinedSinopharmGroupCo.,Ltd.inSeptember2017,andhasbeenservingasanon-executivedirectorofSinopharmGroupCo.,Ltd.tothisday.FromSeptember1995toMay2016,Mr.Wenservedasatechnicianinthehydro-acupunctureworkshopofChongqingNo.6PharmaceuticalFactory,fieldsalesmanof
salesdepartmentofChongqingYaoPharma,salesdirectorofChongqingYaoPharmaCo.,Ltd.,generalmanagerofsalesdepartment2ofChongqingYaoPharmaCo.,Ltd.,generalmanagerofNorthernCompanyofChongqingHaisimanPharmaceuticalCo.,Ltd.,vicepresidentofChongqingYaoPharma,presidentofChongqingYaoPharma,currentlyservesascontactpresidentofShanghaiFosunPharmaceutical(Group)Co.,Ltd.,theCo-ChairmanandPresidentofgenericdrugs&manufacturingdivision,directorofpharmaceuticalbusinessmanagementcommittee,andservedasvicepresidentofFosunPharmaceuticalfromJune2016toOctober2020,seniorVicePresidentofFosunPharmaceuticalfromOctober2020toJanuary2022;Hehasbeenthechairmanoftheboardofsupervisorsofthe8
th
and9th
boardofsupervisorsoftheCompanysinceJuly2019.Ms.LiuJingyun,DirectorofthecapitaldepartmentofSinopharmGroupCo.,Ltd.andhesuccessivelyholdateachingpostinNanjingRadioandTelevisionUniversity,worksinSinopharmGroupCo.,Ltd.sinceNovember2003andservesasdeputydirectorofassetsmanagementdepartment,directorofthefinancial&assetsmanagementdept.andDirectorofministryoffinanceandcreditmanagement.Sheservesassupervisorofthe7
th
,
thand9thsupervisorycommitteeoftheCompanysinceSeptember2016.Ms.ChenGuojing:sheworkedinShenzhenAccordMedicinalMaterialsCompanyinDecember1999,nowsheservesastheofficedirectoranddirectorofsecuritydepartmentanddirectoroflegalcompliancedepartmentintheCompany.Ms.ChenservedasthefinancialmanageranddeputychiefofFinanceandFundsDepartmentoftheCompanyfromJune2005toDecember2013,sheisthememberoftradeunionfederationsoftheCompanyandchairmanofthefirsttradeunionsinceMarch2009;sheservedaschief(part-time)oftheauditingdepartmentoftheCompanyfromJanuary2013toAugust2017,andchief(part-time)oftheriskandoperationmanagementoftheCompanyfromJanuary2014toMay2016.Sheservesasstaffsupervisorofthe8
thand9
th
supervisorycommitteeoftheCompanysinceAugust2018.
3.SeniorexecutiveMr.LinZhaoxiong,foundinaforesaidpreviousworkexperience.Mr.LinMin,foundinaforesaidpreviousworkexperience.Mr.LinXinyang:DeputyGMoftheCompany.HetooktheturnsofdeputyGMofNanfangPharm.Co.,deputyGMofChinaPharmaceutical(Group)GuangzhouCompanyYuexingCompany,generalsupervisorofPDofSinopharmHoldingGuangzhouCompanysuccessivelysinceJanuary1996;tookthepostofdeputyGMofSinopharmHoldingGuangzhouCompanyfromJanuary2004toSeptember2021;servesasdeputyGMoftheCompanysinceJanuary2005.Mr.LangBaochunisdeputysecretaryofthepartycommittee,secretaryofthedisciplinarycommittee,chairmanofthelaborunionandgeneralcounseloftheCompany.FromSeptember2007toMarch2008,heservedasdeputydirectorofgeneralofficeofSinopharmGroupCo.,Ltd.,fromMarch2008toDecember2009,heservedas
generalmanagerofShanghaiChuanghuiInvestmentCo.,Ltd.,fromJanuary2010toMay2010,heservedasdirectoroftheresearchofficeofShanghaiShibeiHi-Tech(Group)Co.,Ltd.,fromJune2010toSeptember2011,heservedasdeputydirectorofthepresident’sofficeofSinopharmGroupCo.,Ltd.,fromOctober2011toDecember2015,heservedasdirectorofthestrategicplanningdepartmentofSinopharmGroupCo.,Ltd.,fromJanuary2016toJune2017,heservedassecretaryofthepartycommitteeofSinopharmGuodaDrugstoreCo.,Ltd.,fromMarch2016toFebruary2018,heservedasdeputysecretaryofthepartycommitteeandsecretaryofthedisciplinarycommitteeoftheCompany.SinceMarch2018,hehasbeenservingasdeputysecretaryofthepartycommittee,secretaryofthedisciplinarycommittee,andchairmanofthelaborunionoftheCompany.HeservesasGeneralCounseloftheCompanysinceAugust2018Mr.GuGuolinisthechieffinancialofficeroftheCompany.HejoinedSinopharmGroupCo.,Ltd.inMay2011,andservedastheseniormanagerofthefinancialmanagementdepartmentofSinopharmGroupCo.,Ltd.fromMaytoJuly2011;fromJuly2011toMay2014,heservedasthechieffinancialofficerofSinopharmHoldingNingxiaCo.,Ltd.SinceMay2014,hehasservedasthechieffinancialofficerofSinopharmSichuanPharmaceuticalGroupCo.,Ltd.andconcurrentlyasthechieffinancialofficerofSinopharmHoldingSichuanPharmaceuticalCo.,Ltd.SinceMay2020,hehasbeenservingasthechieffinancialofficeroftheCompany.Mr.ChenChangbin:DeputyGMoftheCompany,andSecretaryoftheBoard.HehasservedassecretaryofboardofdirectorsoftheCompanysinceDecember2000;hehasalsoworkedasthedirectorofplanninginvestmentmanagementdepartmentoftheCompanyaswellasassistantgeneralmanager,inchargeofstrategicplanning,investmentandmergersandacquisitions,capitaloperation,affairsrelatedtothreemajormeetingsandinternationalco-operation.HehasactedasthedeputygeneralmanageroftheCompanysinceApril2017.
Post-holdinginshareholder’sunit
√Applicable□Notapplicable
Name
| Name | Nameofshareholder’sunit | Positioninshareholder’sunit | Commencementdateoftenure | Terminationdate | Whethertoreceivecompensationandallowancesintheshareholders’unit(Y/N) |
| LiuYong | SinopharmGroupCo.,Ltd | ExecutiveDirector,President | November1,2017 | Y | |
| LiuYong | SinopharmGroupCo.,Ltd | Deputypartysecretary | January1,2018 | Y | |
| LianWanyong | SinopharmGroupCo.,Ltd | DeputyPresident | January1,2018 | Y |
LiXiaojuan
| LiXiaojuan | SinopharmGroupCo.,Ltd | CFO | March1,2021 | Y | |
| WuYijian | SinopharmGroupCo.,Ltd | SecretaryoftheBoard | January1,2019 | Y | |
| LiuJingyun | SinopharmGroupCo.,Ltd | DirectorofCapitaldepartment | July1,2016 | Y |
Post-holdinginotherunit
√Applicable□Notapplicable
| Name | Nameofotherunits | Positioninotherunit | Commencementdateoftenure | Terminationdate | Whethertoreceivecompensationandallowancesinotherunit(Y/N) |
| LiuYong | ChinaNationalMedicinesCorporationLtd. | Director | November1,2017 | ||
| LiuYong | SinopharmHoldingGuodaDrugstoreCo.,Ltd. | Director | October1,2017 | ||
| LiuYong | ChinaNationalScientificInstruments&MaterialsCo.,Ltd. | Director | December1,2018 | ||
| LiuYong | ChinaNationalMedicalEquipmentCo.,Ltd. | Director | December1,2018 | ||
| LiuYong | SinopharmHoldingDistributionCenterCo.,Ltd. | ExecutiveDirector | August1,2020 | ||
| LiuYong | SinopharmHoldingHongKongCo.,Ltd. | Chairman | January1,2021 | ||
| LiuYong | SinopharmCICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd. | Chairman | January1,2021 | ||
| LianWanyong | ChinaNationalMedicinesCorporationLtd | Director | December1,2017 | ||
| LianWanyong | SinopharmCICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd. | Director | July1,2018 | ||
| LianWanyong | WestChinaDentalCo.,Ltd | Director | January1,2019 | ||
| LianWanyong | SinopharmHoldingAnhuiCo.,Ltd. | Chairman | January1,2019 | ||
| LianWanyong | SinopharmHoldingChangshaCo.,Ltd. | Chairman | June1,2019 | ||
| LianWanyong | SinopharmHoldingHubeiCo.,Ltd. | Chairman | January1,2020 | ||
| LianWanyong | SinopharmHoldingHunanCo.,Ltd. | Director | March1,2020 | ||
| LiXiaojuan | SinopharmHoldingGuzhouMongoliaCo.,Ltd. | Chairman | April1,2021 |
LiXiaojuan
| LiXiaojuan | SinopharmHoldingHutchisonWhampoaPharmaceuticals(Shanghai)Co.,Ltd. | Chairman | April1,2021 |
| LiXiaojuan | ChinaNationalMedicinesCorporationLtd. | Director | April1,2021 |
| LiXiaojuan | SinopharmHoldingGroupH.K.Co.,Ltd. | Director | June1,2021 |
| WuYijian | ChinaNationalShanxiCo.,Ltd | Chairman | March1,2019 |
| WuYijian | SinopharmHoldingShanxiCo.,ltd | Chairman | March1,2019 |
| WuYijian | SinopharmHoldingInnerMongoliaCo.,Ltd. | Chairman | March1,2019 |
| WuYijian | SinopharmCICC(Shanghai)PrivateEquityInvestmentManagementCo.,Ltd. | Director | March1,2019 |
| WuYijian | ChinaNationalHealthOnlineCo.,Ltd. | Chairman | May1,2020 |
Punishmentofsecuritiesregulatoryauthorityinrecentthreeyearstothecompany’scurrentandoutgoingdirectors,supervisorsandseniormanagementduringthereportingperiod
□Applicable√Notapplicable
3.Remunerationfordirectors,supervisorsandseniorexecutivesDecision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives
(i)Remunerationdecisionprocedureofdirectors,supervisors,seniormanagement:
TheCompanyimplementedtheannualsalarysystemforseniorexecutivesbasedonthe2021annualperformanceappraisal(scheme)onmanagementstaff,paidannualsalaryremunerationaccordingtotheappraisalresults.Remunerationandappraisalcommitteeofthecompany'sboardofdirectorsisresponsiblefortheformulationandexaminationofsalaryplanandprogramaswellasformulationandexaminationofsalaryplanandassessmentstandardsofdirectors(notincludingtheindependentdirectors),supervisorsandseniorexecutives.Theyalsoevaluatetheperformanceassessmentofdirectors,supervisorsandseniorofficersinaccordancewiththeassessmentcriteria,compensationscheme.(ii)RemunerationdeterminingbasisThemainprinciplesofmakingstandardofcompensationare:(1)thecompany'soverallbusinessandtheprofitlevel;(2)theoverallsalarylevelanddynamicindexoverpastyears;(3)differenceinpositionandduty;(4)relativeimportanceandrisksofposition;(5)relatedpostsalarylevelinthesameindustry;(6)individualprofessionalability.(iii)ActualpaymentExecutivesgetmonthlybasicsalaryandannualsalaryaftertheissuanceofannualexamination.Remunerationfordirectors,supervisorsandseniorexecutivesinreportingperiod
In10thousandYuan
| Name | Title | Sex(F/M) | Age | Post-holdingstatus | Totalremuneration | Receivedremuneration |
beforetaxobtainedfromtheCompany
| beforetaxobtainedfromtheCompany | fromrelatedpartyoftheCompany(Y/N) | |||||
| LiuYong | Chairman | M | 52 | Currentlyinoffice | 0 | Y |
| JiangXiuchang | Director | M | 57 | Officeleaving | 0 | Y |
| LianWanyong | Director | M | 51 | Currentlyinoffice | 0 | Y |
| LiDongjiu | Director | M | 56 | Officeleaving | 0 | Y |
| LiXiaojuan | Director | F | 45 | Currentlyinoffice | 0 | Y |
| ZhouSong | Director | M | 39 | 离任 | 0 | Y |
| WuYijian | Director | M | 51 | Currentlyinoffice | 0 | Y |
| LinZhaoxiong | Director,GM | M | 54 | Currentlyinoffice | 250 | N |
| LinMin | Director,PartySecretary,DeputyGM | M | 57 | Currentlyinoffice | 225 | N |
| ChenHonghui | Independentdirector | M | 50 | Currentlyinoffice | 12 | N |
| OuYongliang | Independentdirector | M | 52 | Currentlyinoffice | 12 | N |
| ChenShengqun | Independentdirector | M | 59 | Currentlyinoffice | 12 | N |
| SuWeiwei | Independentdirector | F | 62 | Currentlyinoffice | 12 | N |
| WenDeyong | Chairmanofsupervisorycommittee | M | 50 | Currentlyinoffice | 0 | Y |
| LiuJingyun | Supervisor | F | 45 | Currentlyinoffice | 0 | Y |
| ChenGuojing | Staffsupervisor | F | 51 | Currentlyinoffice | 83.78 | N |
| ZhaoXiaochuan | DeputyGM | M | 58 | Officeleaving | 83.33 | N |
| LiuTianrao | DeputyGM | M | 42 | Officeleaving | 131.25 | N |
| LinXinyang | DeputyGM | M | 57 | Currentlyinoffice | 175 | N |
LangBaochun
| LangBaochun | Deputypartysecretary,Secretaryofcommitteefordisciplineinspection,Generalcounsel | M | 58 | Currentlyinoffice | 175 | N |
| GuGuolin | CFO | M | 46 | Currentlyinoffice | 162.5 | N |
| ChenChangbin | DeputyGM,SecretaryoftheBoard | M | 54 | Currentlyinoffice | 162.5 | N |
| Total | -- | -- | -- | -- | 1,496.36 | -- |
VI.Responsibilityperformanceofdirectorsduringthereportingperiod
1.Theboardofdirectorsduringthereportingperiod
| Sessionofmeeting | Dateofmeeting | Disclosuredate | Meetingresolutions |
| The22thsessionof8thboardofdirectors | February26,2021 | February27,2021 | Resolutionannouncementonthe22thsessionof8thboardofdirectors |
| The23thsessionof8thboardofdirectors | March31,2021 | April2,2021 | Resolutionannouncementontheboardofdirectors |
| The24thsessionof8thboardofdirectors | April23,2021 | April24,2021 | Fulltextofthefirstquarterreportof2021 |
| The1stExtraordinaryMeetingofthe8thBoardofDirectorsof2021 | May21,2021 | May22,2021 | Resolutionannouncementonthe1stExtraordinaryMeetingofthe8thBoardofDirectorsof2021 |
| The25thsessionof8thboardofdirectors | June8,2021 | June9,2021 | Resolutionannouncementonthe25thsessionof8thboardofdirectors |
| The1stsessionof9thboardofdirectors | July16,2021 | July17,2021 | Resolutionannouncementonthe1stsessionof9thboardofdirectors |
| The2ndsessionof9thboardofdirectors | August13,2021 | August17,2021 | Resolutionannouncementonsemi-annualreportoftheboardofdirectors |
| The1stExtraordinaryMeetingofthe9thBoardofDirectorsof | September30,2021 | October8,2021 | Resolutionannouncementonthe1stExtraordinaryMeetingof |
2021
| 2021 | the9thBoardofDirectorsof2021 | ||
| The3rdsessionof9thboardofdirectors | October19,2021 | October20,2021 | ThirdQuarterReportof2021 |
| The4thsessionof9thboardofdirectors | December30,2021 | December31,2021 | Resolutionannouncementonthe4thsessionof9thSupervisoryboard |
2.TheattendingofdirectorstoBoardmeetingsandshareholdersgeneralmeeting
| TheattendingofdirectorstoBoardMeeting&shareholdersgeneralmeeting | |||||||
| Director | TimesofBoardmeetingsupposedtoattendinthereportperiod | TimesofPresence | Timesofattendingbycommunication | Timesofentrustedpresence | TimesofAbsence | AbsenttheMeetingforthesecondtimeinarow(Y/N) | Timesattendingtheshareholdersgeneralmeeting |
| LiuYong | 10 | 5 | 5 | 0 | 0 | N | 0 |
| JiangXiuchang | 5 | 2 | 3 | 0 | 0 | N | 0 |
| LianWanyong | 10 | 5 | 5 | 0 | 0 | N | 1 |
| LiDongjiu | 1 | 1 | 0 | 0 | 0 | N | 0 |
| LiXiaojuan | 5 | 3 | 2 | 0 | 0 | N | 0 |
| ZhouSong | 4 | 2 | 2 | 0 | 0 | N | 0 |
| WuYijian | 10 | 5 | 5 | 0 | 0 | N | 0 |
| LinZhaoxiong | 10 | 5 | 5 | 0 | 0 | N | 2 |
| LinMin | 10 | 5 | 5 | 0 | 0 | N | 2 |
| ChenHonghui | 10 | 5 | 5 | 0 | 0 | N | 1 |
| OuYongliang | 10 | 5 | 5 | 0 | 0 | N | 1 |
| ChenShengqun | 10 | 5 | 5 | 0 | 0 | N | 1 |
| SuWeiwei | 10 | 4 | 5 | 1 | 0 | N | 1 |
ExplanationofabsenttheBoardMeetingforthesecondtimeinarow
3.ObjectionforrelevanteventsfromdirectorsDirectorscomeupwithobjectionaboutCompany’srelevantmatters
□Yes√NoDirectorshavenoobjectionsforrelevanteventsinreportingperiod
4.Otherexplanationaboutresponsibilityperformanceofdirectors
Theopinionsfromdirectorshavebeenadopted
√Yes□NoExplanationonadvicethataccepted/notacceptedfromdirectorsDuringthereportingperiod,directorsoftheCompanyperformedtheirdutiesinacareful,diligent,dedicatedattitudeinaccordancewithrequirementsofrelevantlaws,regulationsandprovisions,offeredsomeusefulsuggestionsandopinionsonbusinessdecision-making,legalaffairs,financialmanagementandotheraspects;carefullyexaminedimportantmattersthoseneededopinionsofindependentdirectors,madeindependentjudgmentsandissuedawrittenindependentopiniononmajorrelatedtransactions,dailyrelatedtransactions,accountancyhiringandothermatters,playingapositiveroleinsafeguardingthelegitimaterightsandinterestsofsmallshareholders.Besides,Companydirectorsplayedanimportantroleinoperationofspecializedcommittee.Atthesametime,theCompanycanguaranteeCompanydirectorsofthesamerighttoknow.Duringthereportingperiod,CompanydirectorshavenoobjectionontherelatedissuesoftheCompany.VII.Thespecializedcommitteesundertheboardduringthereportingperiod
Committeename
| Committeename | Members | Numberofmeetingsheld | Dateofmeeting | Meetingcontent | Importantcommentsandsuggestionsmade | Otherperformanceofduties | Specificcircumstancesoftheobjection(ifapplicable) |
| RiskInternalControlandAuditCommitteeoftheBoard | ChenShengqun(convener),ChenHonghui,OuYongliang,SuWeiwei,JiangXiuchang,LianWanyong,LinZhaoxiongandLinMin | 1 | March24,2021 | 1.FinancialReportof2020;2.SummaryReportonErnst&YoungCPA(SpecialGeneralpartnership)EngagedintheAuditingWorkforyearof2020;3.ProposalonRenewaloftheInstitutionforAnnualReportandAuditingofInternalControlforyearof2021;4. | Consent |
InternalcontrolSelf-AssessmentReport2020;SinopharmAccord-SpecialReportontheDepositandUseofProceedsforyearof2020.
| InternalcontrolSelf-AssessmentReport2020;SinopharmAccord-SpecialReportontheDepositandUseofProceedsforyearof2020. | |||||
| RemunerationandAppraisalCommitteeoftheBoard | ChenHonghui(convener),ChenShengqun,OuYongliang,SuWeiwei,LiuYong,JiangXiuchangandWuYijian | 1 | March26,2021 | Reviewtheremunerationdisclosedforthedirectors,supervisorsandseniorexecutivesforyearof2020 | Consent |
| NominationCommitteeoftheBoard | SuWeiwei(convener),ChenShengqun,OuYongliang,LiuYongandLinZhaoxiong | 1 | June7,2021 | ApprovedtheProposalonDeliberationoftheQualificationofDirectorsof9thBODoftheCompany | Afterreviewing,the7non-independentdirectorsof9thBOD,nominatedbyshareholdersandthe4independentdirectorsof9thBOD,nominatedby8thBOD,are |
qualifiedtoservesasthedirectorofthelistedcompany.
VIII.WorksfromSupervisoryCommittee
TheCompanyhasrisksinreportingperiodthatfoundinsupervisoryactivityfromsupervisorycommittee
□Yes√NoSupervisorycommitteehasnoobjectionaboutsupervisioneventsinreportingperiod.IX.Particularsofworkforce
1.Numberofstaff,professionalcompositionandeducationbackground
qualifiedtoservesasthedirectorofthelistedcompany.Thenumberofcurrentemployeesofparentcompanyatperiod-end(people)
| Thenumberofcurrentemployeesofparentcompanyatperiod-end(people) | 120 |
| Thenumberofcurrentemployeesofmainsubsidiariesatperiod-end(people) | 39,266 |
| Totalnumberofcurrentemployeesatperiod-end(people) | 39,386 |
| Thetotalnumberofemployeesinpayroll(people) | 39,386 |
| Thetotalnumberofretiredstaffandworkersthattheparentcompanyandmainsubsidiariesneedtobearthecosts(people) | 1,731 |
| Professionalcomposition | |
| Categoryofprofessionalcomposition | Numberofprofessionalcomposition(people) |
| Productionstaff | 20 |
| Salesman | 30,522 |
| Technicalstaff | 333 |
| Financialstaff | 753 |
| Administrativestaff | 150 |
| Other | 7,608 |
| Total | 39,386 |
| Educationbackground | |
| Categoryofeducation | Number(people) |
| Post-graduatequalificationandabove | 192 |
| Undergraduate | 6,153 |
| Juniorcollege | 15,254 |
| Collegedegree | 17,787 |
| Total | 39,386 |
2.RemunerationpolicySinopharmAccordandthesubordinateenterprisesprovideperfectcompensationandbenefitsforthestaff,thecompensationleveliscloselycombinedwithorganization(totalamountoflabor,compensationstrategy,jobvalue),staff(capacitydevelopment,performanceresults),andmarket(marketlevel,talentcompetition).Thecompanyadjuststheremunerationforstaffhavingabilitiesandcontributionseveryyearbytheresponsibilitysorting,positionevaluation,targetremunerationrangepositioning,andthestaffannualworkperformanceandabilityassessment;atthesametime,performancebonusesandperformancecloselylinktogether,andrealizewin-winoftheinterestsofcompanyandtheinterestsofemployees.Payattentiontotheincomegrowthrequirementsoflow-incomegroups,developannualwagegrowthprogram,andimplementafterthedeliberationandapprovaloftheworkers'congress.
3.TrainingprogramsSinopharmAccordanditssubordinatecompaniesattachgreatimportancetobuildinglearningorganizations,investtrainingresourceseveryyeartotrainanddevelopemployeesatalllevels.In2021,thetrainingworkwasmoreproactiveinpromotingthetransformationintermsoflearningsharing,trainingempowermentandtalentdevelopment.Withtheheadquartersasthehub,connectedtotheoperationheadquarters,andpromotedtheintegratedconstructionoftheknowledgeandexperiencesharingsystemandthetraining.Intheformoftrainingprograms,releasedthepowerfuldrivingforceofthetalentengine,improvedorganizationalcapabilities,andacceleratedthelearningandsharingoforganizationalexperiencetoenablehigh-qualitydevelopmentofbusiness.
(1)Optimizethetrainingmanagementsystem,revisethetrainingsystemmanagementsystem,theemployeetrainingmanagementsystem,theinternaltrainermanagementsystem,theemployeecontinuingeducationmanagementsystem,theinternmanagementsystem,theinternallecturermanagementsystem,optimizeinternaltrainersmanagementprocess,annualtrainingneedsandplanmanagementprocess,andtrainingimplementationprocess.
(2)Theheadquarters,operationheadquarters,andkeysubsidiariesallsetupfull-timetrainingpoststoassistmanagersatalllevelstocarryoutemployeetraining.Thecompanyhaspromotedathree-leveltrainingmodelthroughoutthecompany,designedandcompiledthe"2021SinopharmAccordTrainingManagementWorkGuideManual".Forthefirsttime,themanualintegratesthepastworkexperienceofSinopharmAccord’strainingandthefollow-upworkrequirementsintoastandardworkmanual,whichissharedwithallstafftrainingmanagersofSinopharmAccordtolearntogether,andservesasanimportantreferenceforHRlinesandmanagerstopromotethetrainingwork.
(3)AccordheadquartersunitedwiththejointoperationheadquarterstoorganizeofflinetrainingfornewcadresofSinopharmAccord's"DragonCultivationPlan"in2021.Inthisproject,bycombiningthecultivatingrouteof
"enteringthemodel-roleconversion-managementimprovement"withthetrainingof"learningknowledgeonline",communicatingoffline,trainingskills,post-trainingjobtransformation",acceleratedthegrowthrateofnewcadres,accumulatedtalentsforthecompany'slong-termhigh-qualitydevelopment,andincreasedstrongdevelopmentmomentum.
(4)Accordheadquarterscooperatedwiththeoperationheadquartersandsubsidiaries,andlaunchedthedouble-excellentplannerclassPKcompetitionwiththethemeofinnovation.ThiscompetitioncoveredallthestaffofSinopharmAccord,withthegoalofoutputtinghigh-qualityinnovativethemedcoursewareandsupportinglecturers,theexcellentinnovativecoursesweredisseminatedandsharedintheAccordsystemafterthecompetition,whichwasalarge-scaleeventpavingthewayforthefutureplanningoftheinternaltrainersysteminthe14
th
Five-YearPlan.Morethan220peopleparticipatedinthelarge-scalecompetition.Afterthecompetition,theexcellentparticipatinglecturerswereorganizedtogivelessons.
(5)Thehumanresourcecenterunitedwiththehumanresourcedepartmentofthedistributionoperationheadquarters,themixingcultivationproject"PerformanceImprovementProject"thattook"SPDbusiness"astheentrypoint,aimedatimprovingworkrelatedto"SPDbusiness",andtook"onlinelearning,offlinetraining,practiceaftertraining"astheoperationmodewonthe2021PerformanceImprovementBestPracticeAwardoftheInternationalSocietyforPerformanceImprovement.
(6)Continuedtopromoteonlinetraining.The"SinopharmOnlineLearning"platformhasopenedmorethan5,400accounts,coveringallsubsidiariesacrossthecountry,andtheaverageonlinelearninghoursofallemployeesexceeds33hours.
4.Laboroutsourcing
√Applicable□Notapplicable
Totalnumberofworkinghoursoflaboroutsourcing(Hour)
| Totalnumberofworkinghoursoflaboroutsourcing(Hour) | 3,489,048 |
| Totalremunerationpaidoflaboroutsourcing(RMB) | 85,338,901.00 |
X.Profitdistributionplanandcapitalizingofcommonreservesplan
Formulation,ImplementationandAdjustmentofProfitDistributionPolicyEspeciallyCashDividendpolicyduringtheReportingPeriod
√Applicable□Notapplicable
On28April2021,theprofitdistributionplanforyearof2020wasdeliberatedandapprovedbyannualgeneralmeetingof2020,thatistakingtotal428,126,983sharesasbase,distributed8.00yuan(taxincluded)foreach10sharesincash.Theannouncementof2020interestdistributionimplementationwasreleasedon11June2021by
theBoard(publishedinSecuritiesTimes,ChinaSecuritiesJournal,HongKongCommercialDailyandJuchaoWebsitehttp://www.cninfo.com.cn),theprofitdistributionplanforyearof2020wascompleted,anddividendforpublicshareswasdistributedtotheaccountofshareholdersdated21June2021(A-share)and23June2021(B-share)respectively.
Specialexplanationoncashdividendpolicy
| Specialexplanationoncashdividendpolicy | |
| SatisfyregulationsofGeneralMeetingorrequirementofArticleofAssociation(Y/N): | Y |
| Well-definedandclearlydividendstandardsandproportion(Y/N): | Y |
| Completedrelevantdecision-makingprocessandmechanism(Y/N): | Y |
| Independentdirectorsperformdutiescompletelyandplayaproperrole(Y/N): | Y |
| Minorityshareholdershaveopportunitytoexpressopinionsanddemandstotallyandtheirlegalrightsarefullyprotected(Y/N): | Y |
| Conditionandproceduresarecomplianceandtransparentwhilethecashbonuspolicyadjustedorchanged(Y/N): | Notapplicable |
TheCompanyisprofitableduringthereportingperiodandtheparentcompanyhaspositiveprofitavailablefordistributiontoshareholderswithoutcashdividenddistributionplanproposed
□Applicable√NotapplicableProfitdistributionplanandcapitalizingofcommonreservesplanforthePeriod
√Applicable□Notapplicable
| Numberofbonussharesforeach10shares(Share) | 0 |
| Numberofdividendsforeach10shares(Yuan)(taxincluded) | 6.00 |
| Numberofconversionsforeach10shares(Share) | 0.00 |
| Baseofthesharesforthedistribution(Share) | 428,126,983 |
| Cashdividendamount(Yuan)(taxincluded) | 256,876,189.80 |
| Amountofcashdividendsbyotherways(e.g.sharerepurchased)(Yuan) | 0.00 |
| Totalcashdividends(includingotherways)(Yuan) | 256,876,189.80 |
| Distributableprofit(Yuan) | 6,499,660,099.63 |
| Proportionoftotalcashdividends(includingotherways)tothetotalprofitdistributed | 100% |
| Currentcashdividend | |
| IftheCompanyisinamaturestageofdevelopmentandhasmajorcapitalexpendituresarrangement,theminimumproportionofcashdividendintheprofitdistributionshouldbe40%whencarryingouttheprofitdistribution | |
| Explanationontheprofitdistributionplanforcapitalreservetransferring | |
XI.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives
□Applicable√NotapplicableTheCompanyhasnoequityincentiveplan,employeestockownershipplansorotheremployeeincentives.
XII.Constructionandimplementationofinternalcontrolsystemduringthereportingperiod
1.ConstructionandimplementationofinternalcontrolDuringthereportingperiod,thecompanyupdatedandimprovedtheinternalcontrolsysteminaccordancewiththeguidelinesoftheBasicNormsforEnterpriseInternalControlandcombinedwithchangesintheinternalandexternalenvironment,internalorganizationsandmanagementrequirements,andcomprehensivelysortedoutandrevisedthebusinessprocessesofeachlinkofthecompany,therebymakingtheinternalcontrolsystemmoreperfect.Thecompany'sriskinternalcontrolmanagementsystem,whichiscomposedoftheriskandinternalcontrolauditcommitteeandtheinternalauditdepartment,supervisesandevaluatesthecompany'sinternalcontrolmanagement.Thecompany'sinternalcontrolcancoverthemainaspectsofthecompany'soperationandmanagement,andtherearenomajoromissions;theunits,businessesandmattersandhigh-riskfieldsincludedintheevaluationscopehavecoveredthemainaspectsofthecompany'soperationandmanagement,andtherearenomajoromissions;thecompany'sinternalcontroldesignissound,reasonable,theimplementationofinternalcontrolhasbeenbasicallyeffective,andtherearenomajoromissions.Throughtheoperation,analysisandevaluationoftheinternalcontrolsystem,thecompanyhaseffectivelypreventedrisksinoperationandmanagementandpromotedtherealizationofthegoalofinternalcontrol.
2.DetailsofmajordefectsinICappraisalreportthatfoundinreportingperiod
□Yes√NoXIII.Managementandcontrolsonthesubsidiaryduringreportingperiod
Nameofcompany
| Nameofcompany | Integrationplan | Integrationprogress | Problemsencounteredinintegration | Actionstaken | Resolveprogress | Follow-upresolutionplan |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A |
XIV.Internalcontrolself-assessmentreportorinternalcontrolauditreport
1.AppraisalReportofInternalControl
Disclosuredateoffullinternalcontrolevaluationreport
| Disclosuredateoffullinternalcontrolevaluationreport | March30,2022 | |
| Disclosureindexoffullinternalcontrolevaluationreport | “Self-evaluationreportofinternalcontrolfor2021ofChinaNationalAccordMedicinesCorporationLtd.”inJuchaowebsite(http://www.cninfo.com.cn) | |
| Theratioofthetotalassetsofunitsincludedinthescopeofevaluationaccountingforthetotalassetsonthecompany'sconsolidatedfinancialstatements | 100.00% | |
| Theratiooftheoperatingincomeofunitsincludedinthescopeofevaluationaccountingfortheoperatingincomeonthecompany'sconsolidatedfinancialstatements | 100.00% | |
| DefectsEvaluationStandards | ||
| Category | FinancialReports | Non-financialReports |
| Qualitativecriteria | Financialreportdefectsaremainlyjudgedanddecidedbythedegreeofinfluenceandthelikelihoodofoccurrencetothemisstatementsoffinancialreportscausedbydefects.(1)Significantdefects:acombinationofoneormultipleinternalcontroldefectsthatexistsininternalcontrolandmaycausethematerialmisstatementsinfinancialstatementscannotbeprevented,foundorcorrectedintime;(2)Majordefects:acombinationofoneormultipleinternalcontroldefectsthatexistsininternalcontrolandhaslowerseveritylevelthansignificantdefectsbutstillshouldbeconcernedbythesuperintendentsofenterprisefinancialreports;(3)Commondefects:otherdefectsexceptforsignificantandmajordefects. | Non-financialreportdefectsaremainlyjudgedanddecidedbythedegreeofinfluenceandthelikelihoodofoccurrenceofdefectstothevalidityofbusinessprocess.(1)Significantdefects:acombinationofoneormultipleinternalcontroldefectsthatmaycausetheenterprise’sseriousdeviationtointernalcontrolobjectives;(2)Majordefects:acombinationofoneormultipleinternalcontroldefectswhoseseveritylevelandeconomicconsequencesarelowerthansignificantdefectsbutstillmaycausetheenterprise’sdeviationtointernalcontrolobjectives;(3)Commondefects:otherdefectsexceptforsignificantandmajordefects. |
| Quantitativestandard | Aquantitativecriteriondeterminesthedegreeofimportanceofmisstatements(includingmissingreports)intheconsolidatedstatementsoflisted | Aquantitativecriteriondeterminesthedegreeofimportanceofthecompany’sdefectsbasedontheamountofdirectlossandthedegreeofsignificant |
companiesbasedontheconsolidatedstatementdata.
(1)Significantdefects:equaltoorgreaterthan5%ofprofitbeforetax;
(2)Majordefects:Between1%and5%ofprofitbeforetax;
(3)Commondefects:Lessthanorequalto1%ofprofitbeforetax
| companiesbasedontheconsolidatedstatementdata.(1)Significantdefects:equaltoorgreaterthan5%ofprofitbeforetax;(2)Majordefects:Between1%and5%ofprofitbeforetax;(3)Commondefects:Lessthanorequalto1%ofprofitbeforetax | influencetothecompany.(1)Significantdefects:theamountofdirectpropertylossisormorethan10millionYuan,orhasbeenofficiallydisclosedandcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies;(2)Majordefects:theamountofdirectpropertylossisbetween5millionand10millionYuan,orhasbeenpunishedbythenationalgovernmentdepartmentsbuthasnotcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies;(3)Commondefects:theamountofdirectpropertylossisbetween0.1millionand5millionYuan,orhasbeenpunishedbytheprovincialorsub-provincialgovernmentdepartmentsbuthasnotcausednegativeeffectstoperiodicreportdisclosureofthejoint-stockcompanies. | |
| Amountofsignificantdefectsinfinancialreports | 0 | |
| Amountofsignificantdefectsinnon-financialreports | 0 | |
| Amountofimportantdefectsinfinancialreports | 0 | |
| Amountofimportantdefectsinnon-financialreports | 0 | |
2.Auditingreportofinternalcontrol
√Applicable□Notapplicable
| DeliberationsinAuditReportofInternalControl | |
| Accordingtorelevantregulationsand“BasicRulesofInternalControlforEnterprises”,ChinaNationalAccordMedicinesCorporationLtd.inallmajoraspects,keepsanefficiencyofinternalcontroloffinancialreportdated31December2021 | |
| Disclosuredetailsofauditreportofinternalcontrol | Disclosed |
| Disclosuredateofauditreportofinternalcontrol(full-text) | March30,2022 |
Indexofauditreportofinternalcontrol(full-text)
| Indexofauditreportofinternalcontrol(full-text) | “AuditReportofInternalControlofChinaNationalAccordMedicinesCorporationLtd.”releasedonJuchaoWebsite(http://www.cninfo.com.cn) |
| OpiniontypeofauditingreportofIC | Standardunqualified |
| Whetherthenon-financialreporthadmajordefects | No |
CarriedoutmodifiedopinionforinternalcontrolauditreportfromCPA
□Yes√NoTheinternalcontrolauditreport,issuedbyCPA,hasconcertedopinionwithself-evaluationreport,issuedfromtheBoard
√Yes□NoXV.RectificationofSelf-examinationProblemsinSpecialGovernanceActionsinListedCompanyAccordingtotheOpinionsonFurtherImprovingtheQualityofListedCompanies(GF[2020]No.14)oftheStateCouncil,sincethecompanyreceivedtheNoticeofShenzhenSecuritiesRegulatoryBureauonPromotingtheMainResponsibilityofListedCompaniesintheAreaUnderAdministrationtoImprovetheGovernanceLevelandAchieveHighQualityDevelopment(SZJGSZ[2020]No.128)fromtheChinaSecuritiesRegulatoryCommissionShenzhenSecuritiesRegulatoryBureau,itconductedaseriousself-examinationofthecompanyinstrictaccordancewithrelevantlawsandadministrativeregulations,suchastheCompanyLawandtheSecuritiesLaw,aswellastheArticlesofAssociation,theRulesofProcedurefortheGeneralMeetingofShareholders,theRulesofProcedureoftheBoardofDirectors,theRulesofProcedureoftheBoardofSupervisorsandotherinternalrulesandregulations.Theproblemsfoundinthisself-examinationandtherectificationareasfollows:
1.Thecompanyhadasituationwheretherewasnoelectionatexpirationoftermsofofficeoftheboardofdirectors.Specificrectification:ThetermofofficeoftheeighthboardofdirectorsandtheeighthboardofsupervisorsofthecompanyexpiredonApril17,2021.OnApril2,2021,thecompanydisclosedthe"IndicativeAnnouncementonthePostponementofElectionatExpirationofTermofOfficeoftheBoardofDirectorsandtheBoardofSupervisors".OnJune8,2021,thecompanyheldthetwenty-fifthmeetingoftheeighthboardofdirectorsandtheeighteenthmeetingoftheeighthboardofsupervisors,andheldthefirstextraordinarygeneralmeetingofshareholdersin2021onJune25,2021,atwhichtherelevantproposalsontheelectionoftheninthboardofdirectorsandtheboardofsupervisorsofthecompanywerereviewedandapproved,andtheelectionwascompleted.Completiontimeofofrectification:June25,2021
2.Thecompanyhadasituationwherethedirectors,supervisorsandseniorexecutivesfailedtoattend(asnon-votingattendees)orentrustotherstoattendthegeneralmeetingofshareholders,theboardofdirectorsmeeting,theboardofsupervisorsmeetingandothermeetingsontheirbehalfasrequired.Specificrectification:Aftertheself-examination,thecompany'sboardofficeimmediatelyreiteratedtothecompany'sdirectors,supervisorsandseniorexecutivestheregulatoryrequirementsforholdingageneralmeetingofshareholders:"Whenthecompanyholdsageneralmeetingofshareholders,alldirectors,supervisorsandthesecretaryoftheboardshallattendthemeeting,andmanagersandotherseniorexecutivesshallattendthemeetingasnonvotingattendees.”Thedirectors,supervisorsandseniorexecutiveswhowereindeedunabletoattendtheshareholders’meetingduetotheimpactofthepandemic,thecompanywilluseITtechnology(networkvideo+teleconferencesystem,etc.)toprovidepositiveconditionsfordirectors,supervisorsandseniorexecutivestocommunicatewithshareholdersinrealtimeindifferentplaces,andprovidegreaterconvenienceforthemtoperformtheirduties.Completiontimeofofrectification:April28,2021Takingthisself-examinationandrectificationactivityasanopportunity,thecompanycarefullyorganizedthedirectors,supervisorsandseniorexecutivestostudytheOpinionsonFurtherImprovingtheQualityofListedCompanies,keepthe"FourAwes"inmind,adheretothefourbottomlinesof"notdisclosingfalseinformation,notengagingininsidertrading,notmanipulatingmarketprices,andnotharmingtheinterestsoflistedcompanies”.Infuture,thecompanywillconscientiouslyimplementtherectificationmeasures,effectivelyimprovethestandardoperationlevelandcorporategovernanceeffectivenessofstate-controlledlistedcompanies,andstrivetobecomeagovernancemodelforstate-controlledlistedcompanies.
SectionV.EnvironmentalandSocialResponsibility
1.Majorenvironmental
ThelistedCompanyanditssubsidiarywhetherbelongstothekeysewageunitsreleasedfromenvironmentalprotectiondepartment
□Yes√NoAdministrativepunishmentforenvironmentalproblemsduringthereportingperiod
Nameofcompanyorsubsidiary
| Nameofcompanyorsubsidiary | Reasonforpunishment | Violation | Punishmentresult | Theimpactontheproductionandoperationoflistedcompanies | TheCompany'srectificationmeasures |
| N/A | N/A | N/A | N/A | N/A | N/A |
Otherenvironmentalinformationdisclosedrefertokeypolluters
| Company/subsidiary | NameofMajorPollutantsandParticularPollutants | EmissionMethod | QuantityofDischargeOutlet | DistributionofDischargeOutlet | EmissionConcentration | ExecutedPollutantDischargeStandards | TotalEmissions | ApprovedTotalEmissions | ExcessiveDischarge |
| MainLuckPharmaceuticals | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 15mg/L | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008 | 0.030ton/year | 0.12ton/year | N/A |
| MainLuckPharmaceuticals | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0．5mg/L | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008 | 0.001ton/year | 0.02ton/year | N/A |
| MainLuckPharmaceuticals | Phosphate | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.05mg/l | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008 | 0.0001ton/year | 0.001ton/year | N/A |
| MainLuck | BOD | Nanotubes | 1 | Discharge | 5mg/L | DischargeStandardsofWater | 0.01ton/y | 0.04ton/y | N/A |
Pharmaceuticals
| Pharmaceuticals | emissions | OutletofWasteWater | PollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008 | ear | ear | ||||
| MainLuckPharmaceuticals | SS | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 5mg/L | DischargeStandardsofWaterPollutantsforPharmaceuticalindustryMixing/CompoundingandFormulationCategory-GB21908-2008 | 0.01ton/year | 0.04ton/year | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District1) | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 240.08㎎/L | Grade-B(GB/T31962-2015)inWastewaterQualityStandardsforDischargetoMunicipalSewers | 717.16 | 2640 | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District1) | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 1.03㎎/L | Grade-B(GB/T31962-2015)inWastewaterQualityStandardsforDischargetoMunicipalSewers | 3.13 | 350.7 | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District2) | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 132.18㎎/L | Grade-B(GB/T31962-2015)inWastewaterQualityStandardsforDischargetoMunicipalSewers | 199.97 | 1440 | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District2) | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 2.55㎎/L | Grade-B(GB/T31962-2015)inWastewaterQualityStandardsforDischargetoMunicipalSewers | 3.27 | 256.5 | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District2) | Particulates | Organisedemissions | 1 | Exhaustexhaustport | 3.12㎎/m? | DB14／1929-2019-LandmarkofEmissionStandardofAirPollutantsforBoiler | 1.98 | 19.683 | N/A |
| SinopharmWeiqidaPharmaceuticalCo.,Ltd.(District2) | Sulfurdioxide | Organisedemissions | 1 | Exhaustexhaustport | 8.19㎎/m? | DB14／1929-2019-LandmarkofEmissionStandardofAirPollutantsforBoiler | 5.41 | 68.733 | N/A |
| Sinopharm | Nitrogen | 1 | Exhaust | 19.02㎎/m? | DB14／1929-2019- | 13.95 | 101.88 | N/A |
WeiqidaPharmaceuticalCo.,Ltd.(District2)
| WeiqidaPharmaceuticalCo.,Ltd.(District2) | oxides | Organisedemissions | exhaustport | LandmarkofEmissionStandardofAirPollutantsforBoiler | |||||
| ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 24㎎/L | Table2intheDischargeStandardofWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategoryGB21908-2008 | 1.53120 | 5.3874 | N/A |
| ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.9269㎎/L | Table2intheDischargeStandardofWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategoryGB21908-2008 | 0.05910 | 0.8979 | N/A |
| ChinaNationalZhijun(Shenzhen)PharmaceuticalCo.,Ltd. | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.04㎎/L | Table2intheDischargeStandardofWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategoryGB21908-2008 | 0.00260 | N/A | N/A |
| ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 19.58㎎/L | ThemorestricterstandardsbetweenWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategory(GB21908-2008)andtheIV-water(AmmoniaNitrogenuptogradeV)inEnvironmentalQualityStandardforSurfaceWater(GB3838-2002) | 1.376 | 2.628 | N/A |
| ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.211㎎/L | ThemorestricterstandardsbetweenWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategory(GB21908-2008)andtheIV-water(AmmoniaNitrogenuptogradeV)inEnvironmentalQualityStandardforSurfaceWater(GB3838-2002) | 0.014 | 0.1752 | N/A |
ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd.
| ChinaNationalZhijun(Shenzhen)PingshanPharmaceuticalCo.,Ltd. | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.02㎎/L | ThemorestricterstandardsbetweenWaterPollutantsforPharmaceuticalIndustryMixing/CompoundingandFormulationCategory(GB21908-2008)andtheIV-water(AmmoniaNitrogenuptogradeV)inEnvironmentalQualityStandardforSurfaceWater(GB3838-2002) | 0.0008 | 0.02628 | N/A |
| ShanghaiTianweiBiopharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 105.89mg/L | TheDischargeStandardofPollutantsforBio-pharmaceuticalIndustry(DB31/373-2010) | 3.225 | 15.5382 | N/A |
| ShanghaiTianweiBiopharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 1.73mg/L | TheDischargeStandardofPollutantsforBio-pharmaceuticalIndustry(DB31/373-2010) | 0.054 | 1.2012 | N/A |
| ShanghaiTianweiBiopharmaceuticalCo.,Ltd. | Totalnitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 7.51mg/L | TheDischargeStandardofPollutantsforBio-pharmaceuticalIndustry(DB31/373-2010) | 0.229 | 1.8263 | N/A |
| ShanghaiTianweiBiopharmaceuticalCo.,Ltd. | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.72mg/L | TheDischargeStandardofPollutantsforBio-pharmaceuticalIndustry(DB31/373-2010) | 0.024 | 0.238 | N/A |
| SinopharmChuankangPharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 62.28mg/L | WastewaterQualityStandardsforDischargetoMunicipalSewers(GB/T31962-2016) | 1.1131 | 11.33 | N/A |
| SinopharmChuankangPharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 1.58mg/L | WastewaterQualityStandardsforDischargetoMunicipalSewers(GB/T31962-2016) | 0.0283 | 1.02 | N/A |
| SinopharmChuankangPharmaceuti | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.836mg/L | WastewaterQualityStandardsforDischargetoMunicipalSewers(GB/T31962-2016) | 0.0149 | 0.181 | N/A |
calCo.,Ltd.
| calCo.,Ltd. | |||||||||
| JiangsuWeiqidaPharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 287.78 | IntegratedWastewaterDischargeStandard(GB8978-1996)-Tertiarystandardsintable-4 | 32.38 | 46.82 | N/A |
| JiangsuWeiqidaPharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 2.87 | IntegratedWastewaterDischargeStandard(GB8978-1996)-Tertiarystandardsintable-4 | 0.31 | 4.21 | N/A |
| JiangsuWeiqidaPharmaceuticalCo.,Ltd. | Totalnitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 21.76 | IntegratedWastewaterDischargeStandard(GB8978-1996)-Tertiarystandardsintable-4 | 1.88 | 5.696 | N/A |
| JiangsuWeiqidaPharmaceuticalCo.,Ltd. | Totalphosphorus | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 1.92 | IntegratedWastewaterDischargeStandard(GB8978-1996)-Tertiarystandardsintable-4 | 0.21 | 0.65 | N/A |
| SinopharmYixinPharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 7.0145mg/L | Protocolconcentration | 0.6192 | 2.44 | N/A |
| SinopharmYixinPharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 0.0706mg/L | Protocolconcentration | 0.0058 | 0.39 | N/A |
| SinopharmYixinPharmaceuticalCo.,Ltd. | Nox | Organisedemissions | 1 | Exhaustexhaustport | 0.4123kg/h | EmissionStandardofAirPollutantsforBoilers(GB13271-2014) | 2.8294 | 4.64 | N/A |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | COD | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 66.82mg/L | IndirectDischargeStandardofWaterPollutantsforPharmaceuticalIndustryChemicalSynthesisProductsCategory(DB41/756-2012) | 13.9283 | 95.144 | N/A |
| ShanghaiModernHasen(Shangqiu)PharmaceuticalCo.,Ltd. | AmmoniaNitrogen | Nanotubesemissions | 1 | DischargeOutletofWasteWater | 2.30mg/L | IndirectDischargeStandardofWaterPollutantsforPharmaceuticalIndustryChemicalSynthesisProductsCategory(DB41/756-2012) | 0.50557 | 13.239 | N/A |
ConstructionandoperationofpollutionpreventionandcontrolfacilitiesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholding(anditsaffiliates)haveestablishedpollutionpreventionandcontrolfacilitiesforwastewater.Inthedailymanagementprocess,enterprisesestablishmanagementproceduresandoperatinginstructionsforenvironmentalprotectionfacilities,andensurethenormalandcompliantoperationofanti-pollutionfacilitiesthroughsystemimplementationandresponsibilityimplementation.Allenterprisesarecontinuouslyinvestingfundsandsteppingupthetransformationandimprovementofpollutionpreventionandcontrolfacilitiestoensurethestableoperationofpollutionpreventionfacilitiesandimprovethedisposalcapacityofenvironmentalprotectionfacilities.EnvironmentalimpactassessmentofconstructionprojectsandotherenvironmentalprotectionadministrativelicensesAtpresent,theprojectsofallkeymonitoringunitshavecarriedoutenvironmentalimpactassessmentsandobtainedapprovals.Theprojectstobebuiltalsocarryouttherelevantadministrativereviewproceduresaccordingtothe“threesimultaneous”requirementsoftheenvironmentalprotectionfacilitiesoftheconstructionproject.EmergencyplanforenvironmentalemergenciesAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholding(anditsaffiliates)haveformulatedtheEmergencyPlanforEnvironmentalEmergenciesandreportedthemaccordingtotheregulatoryrequirementsofthelocalregulatoryauthorities.Accordingtothemanagementrequirementsoftheemergencyplan,thekeyunitsregularlycarryoutemergencyplandrillstofurtherprovidetheenterprises’emergencyresponsecapability.Environmentalself-monitoringschemeAtpresent,theabove-mentionedenvironmentalpollutionkeymonitoringunitsinwhichtheCompanyhasashareholding(anditsaffiliates)haveestablishedenvironmentalself-detectionschemeandplan,andimplementedself-inspection,third-partydetectionandothermonitoringmethodsaccordingtothegovernmentrequirements.Relevantmonitoringdataandreportshavebeenarchivedandsaved.Measurestakentoreducingthecarbonemissionsduringthereportingperiodandtheireffectiveness
√Applicable□Notapplicable(i)Promotetheapplicationofthe"fournewtechnologies".
1.ThewestwallofZhanjiangDistributionCenterofGuangdongLogisticsisseverelyexposedtosunlight,thetemperatureofwarehouseincreasesafterthewallabsorbsheat,sothecoolingintensityoftheair-conditioningunitincreases.Itisproposedtosealthewallwiththermalinsulationboardtoeffectivelycutofftheheattransferofthewallandreducetheenergyconsumptionoftheairconditioner.
2.MostofthefloorsoftheGaotangwarehousearemainlymadeofsteelframestructureandcolorsteelplate,andthewarehousehasbeeninuseformorethantenyears,withtheagingofmaterials,theinsulationeffectdecreases,resultinginincreasedenergyconsumptionofwarehouseairconditioning.Itisproposedtopaintalayerofthermalinsulationcoatingontheroofofthewarehousetoeffectivelyblockthetransferofexternalheat,whichcanreducetheindoortemperatureofthewarehousebyabout5-10°C,achievingthegoalofenergysaving,environmentalprotectionandreducingelectricityconsumption.
3.HenanGuodainvestedmorethan300,000yuantoreplacetheoriginal2dieseltransportvehicleswithnewenergyelectricvehicles.Thetotalmileagethisyearwasabout25,810kilometers,thetotalpowerconsumption
was14,450kWhatacostofabout14,450yuan,convertingcomprehensiveenergyconsumptionof1.77tons.Comparedwithdieselvehicles,thecomprehensiveenergyconsumptionreducedby2.34tonsonayear-on-yearbasis,adecreaseofabout57%,andsavedcostofabout12,500yuan.(ii)Strengthenenergyconsumptionmanagementandcontrol,economiesgofirst
1.Reducethecostofusingthepublicvehicles.Theofficialbusinessvehiclesshallbemanageduniformly,andthesystemofdispatchingvehiclesshallbereviewedandapprovedbytheoffice,soastoreducethenumberofseparateorrepeateddispatchingofvehicles,andprivateuseofpublicvehiclesisstrictlyprohibited.Strengthenthemanagementofvehicleuse,andimplementsystemssuchasfixed-pointrefuelingandsinglevehiclefuelconsumptionregistration.Minimizethelosscausedbyhumanfactorsasmuchaspossible.In2021,SinopharmAccord'svehiclefuelconsumptiondroppedby33.48tonscomparedwiththesameperiodlastyear.Thenextstepistofocusonplanningthemonitoringofvehiclefuelconsumption.
2.Strictlyeconomizeonelectricity.Thecompanystartsfromsavingakilowatt-hourofelectricitytoblockthewasteloopholes.Firstly,strengthenthemanagementofelectricalequipment:whenusingofficeautomationequipmentsuchascomputers,printers,andcopiers,itisrequiredtominimizestandbyconsumption.Secondly,replacethepassagewayandcorridorlightingwithenergy-savinglamps,andsettimeandvoicecontroldevicestoautomaticallyturnonandoff,whichbetterputanendtothephenomenonofeternallighting.Thirdly,addspongestripstoallthewindowstoimprovethetightnessofdoorsandwindows,andopentheairconditionerseasonallytosaveelectricity.
3.Strengthenwaterconservation.Strengthenthedailymaintenanceandmanagementofwaterequipment,getintothehabitofturningoffthetapwhenleaving,preventleakage,andbettereliminatethephenomenonthatthewaterkeepsrunning.ReasonsfornotdisclosingotherenvironmentalinformationTheabovecompaniesarealljointstockcompaniesoftheCompany.Neitherthecompanynoritsholdingsubsidiariesbelongtothekeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment.
II.SocialResponsibility“SocialResponsibilityReportofSinopharmAccordin2021”canbeseeninJuchaowebsitereleasedonthesamedate(http://www.cninfo.com.cn)
III.ConsolidatingandexpandingtheachievementsofpovertyalleviationandruralrevitalizationTheCompanyhasnotcarriedouttargetedpovertyalleviationinthereportingperiod
SectionVI.ImportantEventsI.Implementationofcommitment
1.CommitmentscompletedinPeriodandthosewithoutcompletedtillendofthePeriodfromactualcontroller,shareholders,relatedparties,purchaserandcompanies
√Applicable□Notapplicable
Commitment
reason
| Commitmentreason | Promiseby | Typeofcommitments | Contentofcommitments | Commitmentdate | Commitmentterm | Implementation |
| Sharereformcommitment | ||||||
| Commitmentsinreportofacquisitionorequitychange | SinopharmHolding | Commitmentofshareholders | ""Asalargepharmaceuticalcommercialenterprisewhosebusinessinvolvespharmaceuticalwholesaleandretail,SinopharmHoldingmayoverlapwiththeCompanyingeographicalsegmentationduringitsfuturebusinessdevelopment.Toavoidthepotentialpeercompetitionbroughtbysuchgeographicaloverlap,SinopharmHoldingundertakesthat,uponthetransferofsharesofSinopharmHoldingGuangzhouitheldtoSinopharmAccord,“1.itwillnotnewly-establishorbroadenwithinGuangdonganybusinessoperationthatactuallycompetewiththatofSinopharmAccord,orsetupanynewsubsidiariesorsubordinateenterpriseswhoengageinsuchbusiness.2.ItwillenterintobusinessdelineationwithSinopharmAccordandSinopharmHoldingGuangzhou,therebygivingthethreepartiescleargeographicalareastocarryoutpharmaceuticalwholesaleandretailbusinesses,soastoavoidpotentialpeercompetition.Apartfromabove,SinopharmHoldingwillnolongernewly-establishany | 2005-06-21 | Long-termeffective | Normallyimplementing |
enterprisethatmaycompetewithSinopharmAccordintheproductionandR&Dofpharmaceuticalproducts.”
| enterprisethatmaycompetewithSinopharmAccordintheproductionandR&Dofpharmaceuticalproducts.” | ||||||
| Commitmentsinassetsreorganization | SinopharmGroupCo.,Ltd | Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation | "SinopharmHoldingmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbethecontrollingshareholderofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptotheissuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas“thisreorganization”),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmHoldingGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletion | 2016-12-28 | Long-termeffective | Normallyimplementing |
dateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedtonationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstoreassetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharm
AccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange.”
| AccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothereasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Sincetheissuedateofthiscommitmentletter,theCompanypromisestoindemnifySinopharmAccordforallactuallosses,damagesandexpensescausedbytheCompanyinviolationofanycommitmentsunderthiscommitmentletter.6.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongerthecontrollingshareholderofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange.” | |||||
| SINOPHARM | Commitmentsonhorizontalcompetition,relationtransactionandcapitaloccupation | “SINOPHARMmadecommitmentsintheReportaboutChinaNationalAccordMedicinesCorporationLtd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallbetheactualcontrollerofChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasSinopharmAccord)uptothe | 2016-12-28 | Long-termeffective | Normallyimplementing |
issuedateofthiscommitmentletter,afterthecompletionofthismajorassetsreorganization(hereinafterreferredtoas“thisreorganization”),SinopharmAccordshallnolongerholdsharesoroperaterelevantbusinessesofpharmaceuticalindustry,themainbusinesswillbecomethenationalpharmaceuticalretailandpharmaceuticaldistributionbusinessinGuangdongandGuangxi.InordertosupportthebusinessdevelopmentofSinopharmAccordandavoidhorizontalcompetitionwithSinopharmAccordanditscontrollingenterprises,theCompanymadefollowingirrevocablecommitmentsandpromises:1,afterthecompletionofthisreorganization,asforthesocialretaildrugstoreassetsexceptforSinopharmGroupGuodaDrugstoreCo.,Ltd.anditssubsidiariesandbranchesownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriatemeasurestosolvethehorizontalcompetitionprobleminthepharmaceuticalretailbusinessbetweentheCompanyandSinopharmAccordwithin5yearssincethecompletiondateofthisreorganization.2.TheCompany'swayofresolvinghorizontalcompetitionproblemsincludesandisnotlimitedtopurchasingthesocialretaildrugstoreassetssubordinatedtotheCompanybySinopharmAccord,takingtheentrustedoperation,leasingorcontractingoperationbySinopharmAccordanditscontrollingenterprisesinaccordancewiththemethodspermittedtonationallawstoholdorcontrolthesocialretaildrugstoreassets,ortransferringthecontrollingstakeofthesocialretaildrugstore
assetsbytheCompany.3.Iftheshareholdersofthesocialretaildrugstoreassets(hereinafterreferredtoas"thethirdparty")oftheCompanyortheenterprisescontrolledbytheCompanyhaveoraregoingtoperformthepreemptiverightsunderthesameconditionsinaccordancewithrelevantlawsandcorrespondingArticlesofAssociation,thentheabovecommitmentwillnotbeapplicable,butinthiscase,theCompanyshouldtryitsutmosttourgethethirdpartytowaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywillurgetheenterprisescontrolledbytheCompanytotransferthesocialretaildrugstoreassetstothethirdpartytosolvethehorizontalcompetitionproblem.4.ThepharmaceuticaldistributionassetscurrentlyownedorcontrolledbytheCompanyaredistributedoutsideGuangdongandGuangxiregions,thereisnohorizontalcompetitionwithSinopharmAccord,theCompanywillnotengageinthesameorsimilaroperationbusinessestoSinopharmAccordinGuangdongandGuangxiinthefuture,iftheCompanyanditsholdingenterprisesobtainthenewbusinessopportunitiesconstitutingsubstantialhorizontalcompetition(hereinafterreferredtoascompetitivenewbusiness)withinthepharmaceuticaldistributionbusinessscopeofSinopharmAccordinGuangdongandGuangxi,theCompanywillsendwrittennoticetoSinopharmAccordandtryitsutmosttofirstlyprovidethenewbusinessopportunitiestoSinopharmAccordoritsholdingenterprisesaccordingtothe
reasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange.”
| reasonableandfairtermsandconditionssoastoavoidthehorizontalcompetitionwithSinopharmAccordanditsholdingenterprises.5.Thiscommitmentletterterminateswhenfollowingcircumstancesoccur(subjecttotheearlierone):(1)theCompanyisnolongertheactualcontrollerofSinopharmAccord;or(2)thesharesofSinopharmAccordterminatethelistingatthestockexchange.” | ||||||
| Commitmentsmakeininitialpublicofferingorre-financing | SinopharmHolding | Commitmentofshareholders | "SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toAvoidHorizontalCompetition:“First,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrol(inadditiontoSinopharmAccordanditscontrollingenterprises,hereinafterthesame)don’thavebusinessesandoperationsconstitutingthesubstantialhorizontalcompetitiontoSinopharmAccordanditscontrollingenterprises.Second,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitiesinGuangdongandGuangxiwhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalbusinessservices.Third,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolshallnotengage,participateinordobusinessesandactivitieswhichconstitutesubstantialcompetitiontoSinopharmAccordandpharmaceuticalindustrybusinesses.Fourth,theCompanyshallnottakeadvantageofthecontroltoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordand | 2013-09-05 | Long-termeffective | Controllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
othershareholders(especiallymediumandsmallshareholders).Thiscommitmentlettertakeseffectfromtheissuedate,andremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.”
| othershareholders(especiallymediumandsmallshareholders).Thiscommitmentlettertakeseffectfromtheissuedate,andremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.” | |||||
| SinopharmHolding | Commitmentofshareholders | "SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:“First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany(“relatedparty”forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidednorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyand | 2013-09-05 | Long-termeffective | Controllingshareholderisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
relatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingofstockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteestoparticipateintheshareholders'generalmeeting,equallyexercisethecorrespondingrightsandtakethecorrespondingobligationsinaccordancewiththeconstitutionsofSinopharmAccord,nottotakeadvantageofcontrollingshareholderstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withinthe
effectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.”
| effectiveperiodofthecommitment,iftheCompanyviolatesthiscommitmentandcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.” | |||||
| SINOPHARM | Commitmentofactualcontroller | ""SINOPHARMmadecommitmentsintheCommitmentLetterAboutChinaNationalPharmaceuticalGroupCorporationtoAvoidHorizontalCompetitionwithChinaNationalAccordMedicinesCorporationLtd.:“First,inthenextfiveyears,Sinopharmplanstotakeappropriatemeasures(includingassetsreplacementoracquisition,equityreorganization,etc.)toresolvethehorizontalcompetitionbetweenSinopharmWeiqidaandSinopharmAccord.Second,inadditiontothepastmattersandmattersdisclosedinthiscommitmentletter,theCompanyandtheCompany’swholly-owned,controllingorotherenterpriseswithactualcontrolrights(exceptforSinopharmAccordanditscontrollingenterprises,thesameasbelow)shallnotdirectlyengagedin,participateinordothebusinessesanactivitiesconstitutingactualcompetitiontotheproductionandoperationofSinopharmAccordinChina.TherelevantcommitmentsaboutavoidinghorizontalcompetitionthattheCompanymadeinthepaststillremainineffect.Third,theCompanyshallnottakeadvantageofthecontrolrelationshiptoSinopharmAccordtodamagethelegitimaterightsandinterestsofSinopharmAccordanditsshareholders(especiallythemediumandsmallshareholders).Fourth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsin | 2013-10-16 | Long-termeffective | ActualControllerisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
effectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.”
| effectfortheentireperiodwhentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.” | |||||
| SINOPHARM | Commitmentofactualcontroller | "SINOPHARMmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toRegulatetheRelatedTransactionswithChinaNationalAccordMedicinesCorporationLtd.:“First,whentheCompanyiscontrollingSinopharmAccord,theCompanyandthecompaniesandenterprisesdirectlyandindirectlycontrolledbytheCompany(“relatedparty”forshort)willstrictlyregulatetherelatedtransactionswithSinopharmAccordanditscontrollingenterprises.Second,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallsignnormativerelatedtransactionagreementinaccordancewithrelevantlawswithSinopharmAccord.SinopharmAccordimplementstheapprovalproceduresandfulfillstheinformationdisclosureobligationsoftherelatedtransactionsaccordingtorelevantlaws,regulations,rules,othernormativedocumentsandtheconstitutionsofSinopharmAccord.Third,fortherelatedtransactionsthatcannotbeavoidedorhavereasonablereasonstooccur,theCompanyandrelatedpartyshallabidebytheopen,fairandjustmarketprinciplesandconfirmthepriceofrelatedtransactionsinaccordancewiththepricethattheindependentthirdpartywithoutassociationsetsforthesameandsimilartransactions,andensurethefairnessofthepriceoftherelatedtransactions.Fourth,whentheboardofdirectorsandthegeneralmeetingof | 2013-09-22 | Long-termeffective | ActualControllerisimplementinrealearnest,SinopharmAccordwillactivelyurgedthecontrollingshareholderandactualcontrollertofulfillcommitments |
2.ConcerningassetsorprojectoftheCompany,whichhasprofitforecast,andreportingperiodstillinforecastingperiod,explainreasonsofreachingtheoriginalprofitforecast
□Applicable√Notapplicable
II.Non-operationalfundoccupationfromcontrollingshareholdersanditsrelatedparty
√Applicable□Notapplicable
stockholdersofSinopharmAccordvoteontherelatedtransactionsinvolvingtheCompanyandotherenterprisescontrolledbytheCompany,theCompanyshallfulfillthenecessaryobligationsthattheassociateddirectorsandassociatedshareholdersabstainfromvotinginaccordancewiththerelevantprovisions,andabidebythelegalproceduresforapprovingrelatedtransactionsandtheinformationdisclosureobligations.Fifth,theCompanyguaranteesnottotakeadvantageofactualcontrollerstatustoseekimproperbenefitsorutilizerelatedtransactionstoillegallytransferthefundsandprofitsofSinopharmAccord,andnottodamagethelegitimaterightsandinterestsofothershareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord.Sixth,thiscommitmentlettercomesintoforcefromtheissuedateandremainsineffectfortheentireperiodwhentheCompanyactsastheactualcontrolleroritsrelatedpartyofSinopharmAccord.
Sharehol
dersorrelatedparty
| Shareholdersorrelatedparty | Typeofrelated | Durationforoccupying | Causes | Openingamount | Newfundsoccupiedinthereportingperiod | Totalamountreimbursedinthereportingperiod | Closingamount | Balanceasofthedatewhenannualreportdisclosed | Reimbursementmethodexpected | Reimbursementamountexpected | Repaymenttimeexpected(Month) |
| SinopharmZhijun(Suzhou)PharmaceuticalCo.,Ltd. | Other | Jan.of2018-present | Entrustedloan | 4,633.42 | 0.00 | 0.00 | 4,633.42 | 4,633.42 | Other | ||
| Total | 4,633.42 | 0.00 | 0.00 | 4,633.42 | 4,633.42 | -- | -- | ||||
| Totalvalueatendoftheperiodasapercentageofthelatestauditednetassets | 0.31% | ||||||||||
| Relevantdecisionprocedures | The“proposaloncontinuetoprovideentrustedloanstoSinopharmZhijun(Suzhou)PharmaceuticalCo.,Ltd.”wasdeliberatedandapprovedby29thsessionof7thBODdatedJanuary26,2018 | ||||||||||
| Explanationonreasonsfornewoccupationofnon-operationfundsbycontrollingshareholdersanditsrelatedpartiesintheperiod,prosecutionofthoseresponsibleandmeasuresproposedbytheBoard | Notapplicable | ||||||||||
| Explanationonreasonsforfailuretopayofftheoccupationofnon-operationfundsasschedule,prosecutionofthoseresponsibleandmeasuresproposedbytheBoard | SinopharmZhijun(Suzhou)PharmaceuticalCo.,Ltdfailedtocollectedtheentrustedloansoverdue,onMay11,2021,theCourtruledthatSinopharmZhijun(Suzhou)PharmaceuticalCo.,Ltdwasbankruptanddesignatedlocalgovernmentasthebankruptcyadministration.Atpresent,thematterisinthestageofdeclarationofclaimfiling,andtheCompanyhasmadeafullprovisionforbaddebtsontheentrustedloanduetotheprincipleofprudence. | ||||||||||
| SpecifauditopinionofthefundoccupationbyCPA | Foundmoreinthe“ExplanationonFundOccupationbyControllingShareholdersanditsRelatedPartiesforyearof2021”releasedonMarch30,2022 | ||||||||||
| Reasonsfortheinconsistencybetweenthenon-operationfundoccupationbycontrollingshareholdersanditsrelatedpartiesdisclosedinAnnualReportandthe | Notapplicable | ||||||||||
SpecificAuditOpinion
III.Externalguaranteeoutoftheregulations
□Applicable√NotapplicableNoexternalguaranteeoutoftheregulationsoccurredintheperiod.IV.Statementonthelatest“modifiedauditreport”byBOD
□Applicable√NotapplicableV.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for“QualifiedOpinion”thatissuedbyCPA
□Applicable√Notapplicable
VI.Explanationofthechangesinaccountingpolices,accountingestimatesorcorrectionofsignificantaccountingerrorscomparedwiththefinancialreportofthepreviousyear
□Applicable√NotapplicableTheCompanyhadnochangesinaccountingpolicies,accountingestimatesorcorrectionofsignificantaccountingerrorsduringthereportingperiod.VII.Comparewithlastyear’sfinancialreport;explainchangesinconsolidationstatement’sscope
√Applicable□NotapplicableDetailsofchangesinconsolidationstatement’sscopecanbeseeninNoteVIofSectionX.FinancialReport.
VIII.Appointmentandnon-reappointment(dismissal)ofCPA
Accountingfirmappointed
SpecificAuditOpinionNameofdomesticaccountingfirm
| Nameofdomesticaccountingfirm | Ernst&YoungCPA(SpecialGeneralpartnership) |
| Remunerationfordomesticaccountingfirm(in10thousandYuan) | 621.48 |
| Continuouslifeofauditingservicefordomesticaccountingfirm | 6 |
| NameofdomesticCPA | DengDongmei,LiYuanfen |
ContinuouslifeofCPAfromthedomesticaccountingfirmforauditingservice
| ContinuouslifeofCPAfromthedomesticaccountingfirmforauditingservice | DengDongmei(1year),LiYuanfen(3years) |
| Nameofforeignaccountingfirm(ifapplicable) | N/A |
| Continuouslifeofauditingserviceforforeignaccountingfirm(ifapplicable) | N/A |
| NameofforeignCPA(ifapplicable) | N/A |
| ContinuouslifeofauditingserviceforforeignCPA(ifapplicable) | N/A |
Re-appointedaccountingfirmsinthisperiod
□Yes√NoAppointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor
√Applicable□NotapplicableInthePeriod,theCompanyengagedErnst&YoungCPA(SpecialGeneralpartnership)astheauditbodyforinternalcontrol,andauditingchargeforinternalcontrolamountingas1,120,982.00yuan.
IX.Particularaboutdelistingafterannualreportdisclosed
□Applicable√NotapplicableX.Bankruptcyreorganization
□Applicable√NotapplicableNobankruptcyreorganizationfortheCompanyinreportingperiod.XI.SignificantlitigationandarbitrationoftheCompany
□Applicable√NotapplicableNosignificantlitigationandarbitrationoccurredinthereportingperiod.XII.Penaltyandrectification
□Applicable√NotapplicableNopenaltyandrectificationfortheCompanyinreportingperiod.XIII.Integrityofthecompanyanditscontrollingshareholdersandactualcontrollers
√Applicable□Notapplicable
Inreportingperiod,controllingshareholderandactualcontrolleroftheCompanyhasasoundintegrity,andtherearenocasesoffailuretoimplementtheeffectivejudgementofthecourtandthelargeamountofdebtdueandunliquidated
XIV.Majorrelatedtransaction
1.Relatedtransactionwithroutineoperationconcerned
√Applicable□Notapplicable
Related
party
| Relatedparty | Relationship | Typeoftransaction | Content | Pricingprinciples | Price(in10thousandyuan) | Amount(in10thousandyuan) | Percentageoftheamountinsimilartransactions | Tradingamountapproved(in10thousandyuan) | Whetherovertheapprovedlimitedornot(Y/N) | Clearingformforrelatedtransaction | Availablesimilarmarketprice(in10thousandyuan) | Dateofdisclosure | Indexofdisclosure引 |
| SinopharmHoldingDistributionCenterCo.,Ltd. | Hasthesamecontrollingshareholder | Purchasingofgoods | Purchasingofgoods | Marketprice | 105,178.02 | 105,178.02 | 1.65% | 160,000 | N | Cashandnotessettlement | 105,178.02 | 2021-04-02 | JuchaoWebsite:NoticeNo.:2021-09 |
| ChinaNationalMedicinesCorporationLtd | Hasthesamecontrollingshareholder | Purchasingofgoods | Purchasingofgoods | Marketprice | 75,120.40 | 75,120.40 | 1.18% | 90,000 | N | Cashandnotessettlement | 75,120.40 | 2021-04-02 | JuchaoWebsite:NoticeNo.:2021-09 |
| Total | -- | -- | 180,298.42 | -- | 250,000 | -- | -- | -- | -- | -- | |||
| Detailofsalesreturnwithmajoramountinvolved | N/A | ||||||||||||
| Reporttheactualimplementationoftheday-to-dayrelatedtransactionswhichwereprojectedabouttheirtotalamountbytypesduringthereportingperiod(ifapplicable) | Therelatedtransactionsaresettledbycashandnote,accordingtothe“proposalonpredictionoftheroutinerelatedtransactionsbetweentheCompanyanditssubsidiariesandrelatedpartiesforyearof2021”deliberatedandapprovedby23rdsessionof8thBODheldonMarch31,2021,andthe“NoticeonPredictionofRoutineRelatedTransactionsin2021”(NoticeNo.:2021-09)releasedonApril2,2021,duringthereportingperiod,salesofgoodsfromrelatedpartiesaccountedfor67.27%oftheamountpredictedforthewholeyear;purchasingofgoodsfromrelatedpartiesaccountedfor76.87%oftheamountpredictedforthewholeyear;therentalincomeofhousesandequipmentfromrelatedpartiesaccountedfor38.66%oftheamountpredictedforthewholeyear;theexpenditureofleasingforhousesandequipmentfromrelatedpartiesaccountedfor79.24%of | ||||||||||||
theamountpredictedforthewholeyear;thelaborservicesprovidedfromrelatedpartiesaccountedfor68.46%oftheamountpredictedforthewholeyear;thelaborservicereceivedbyrelatedpartiesaccountedfor36.20%oftheamountpredictedforthewholeyearandtotalothervaryrelatedtransactionsaccountedfor74.91%oftheamountpredictedforthewholeyear.
| theamountpredictedforthewholeyear;thelaborservicesprovidedfromrelatedpartiesaccountedfor68.46%oftheamountpredictedforthewholeyear;thelaborservicereceivedbyrelatedpartiesaccountedfor36.20%oftheamountpredictedforthewholeyearandtotalothervaryrelatedtransactionsaccountedfor74.91%oftheamountpredictedforthewholeyear. | |
| Reasonsformajordifferencesbetweentradingpriceandmarketreferenceprice(ifapplicable) | Notapplicable |
2.Relatedtransactionsbyassetsacquisitionandsold
□Applicable√NotapplicableNorelatedpartytransactionsbyassetsacquisitionandsoldfortheCompanyinPeriod.
3.Mainrelatedtransactionsofmutualinvestmentoutside
□Applicable√NotapplicableNomainrelatedtransactionsofmutualinvestmentoutsidefortheCompanyinreportingperiod.
4.Contactofrelatedcreditanddebt
□Applicable√NotapplicableNocontactofrelatedcreditanddebtoccurredinthereportingperiod.
5.Contactwiththerelatedfinancecompanies
√Applicable□NotapplicableDepositbusiness
| Relatedparty | Relationship | Maximumdailydepositlimit(in10thousandyuan) | Depositinterestraterange | Openingbalance(in10thousandyuan) | AmountforthePeriod | EndingBalance(10thousandyuan) | |
| TotaldepositamountforthePeriod(10thousandyuan) | ThetotalamountwithdrawninthePeriod(10thousandyuan) | ||||||
| ChinaNationalFinanceCorporationLtd | Thesameultimatecontrollingshareholder | 30,000 | 0.35%-1.89% | 10,177.99 | 213,307.07 | 223,287.62 | 197.44 |
Loanbusiness
Relatedparty
| Relatedparty | Relationship | Loanline(10thousandyuan) | Loaninterestraterange | OpeningBalance(10thousandyuan) | AmountforthePeriod | EndingBalance(10thousandyuan) | |
| TotalloanamountforthePeriod(10thousandyuan) | TotalrepaymentamountforthePeriod(10thousandyuan) | ||||||
| ChinaNationalFinanceCorporationLtd | Thesameultimatecontrollingshareholder | 100,000 | 3.50%-3.70% | 1,432.28 | 130,884.13 | 123,089.04 | 9,227.37 |
Creditextensionorotherfinancialbusiness
| Relatedparty | Relationship | Typeofbusiness | Totalamount(10thousandyuan) | Actualamount(10thousandyuan) |
| ChinaNationalFinanceCorporationLtd | Thesameultimatecontrollingshareholder | Credit | 100,000 | 130,884.13 |
| ChinaNationalFinanceCorporationLtd | Thesameultimatecontrollingshareholder | Bankacceptancebilldiscount | 87,693.77 | 87,693.77 |
| ChinaNationalFinanceCorporationLtd | Thesameultimatecontrollingshareholder | Entrustedloan | 3,160 | 3,160 |
6.TransactionsbetweenthefinancecompanycontrolledbytheCompanyandrelatedparties
□Applicable√NotapplicableTherearenodeposits,loans,creditsorotherfinancialbusinessbetweenthefinancecompaniescontrolledbytheCompanyandrelatedparties
7.Othermajorrelatedtransactions
□Applicable√NotapplicableNoothermajorrelatedpartytransactionsoccurredintheperiod.XV.Significantcontractandimplementations
1.Trusteeship,contractandleasing
(1)Trusteeship
□Applicable√Notapplicable
TheCompanyhadnotrusteeshipinthereportingperiod.
(2)Contract
□Applicable√NotapplicableNocontractfortheCompanyinreportingperiod.
(3)Leasing
□Applicable√NotapplicableNoleasingfortheCompanyinreportingperiod.
2.Majorguarantees
√Applicable□Notapplicable
In10thousandYuan
ParticularsabouttheexternalguaranteeoftheCompanyandthesubsidiaries(Barringtheguaranteeforsubsidiaries)
| ParticularsabouttheexternalguaranteeoftheCompanyandthesubsidiaries(Barringtheguaranteeforsubsidiaries) | ||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifapplicable) | Counter-guaranteesituation(ifapplicable) | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| Notapplicable | ||||||||||
| GuaranteebetweentheCompanyandthesubsidiaries | ||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifapplicable) | Counter-guaranteesituation(ifapplicable) | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 30,000 | May20,2021 | 30,000 | Jointliabilityassurance | 2021.05.20-2022.05.20 | N | Y | ||
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 70,000 | May10,2021 | 37,572.58 | Jointliabilityassurance | 2021.05.10-2022.05.09 | N | Y | ||
SinopharmHoldingGuangzhouCo.,Ltd.
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 50,000 | December27,2021 | 3,677.27 | Jointliabilityassurance | 2021.12.27-2022.12.26 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 15,000 | June28,2021 | Jointliabilityassurance | 2021.06.28-2022.06.27 | N | Y | ||
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 95,000 | May20,2021 | 60,959.61 | Jointliabilityassurance | 2021.05.20-2022.05.20 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 15,000 | July14,2021 | 2,992.12 | Jointliabilityassurance | 2021.07.14-2022.07.13 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 20,000 | October20,2021 | 1,924.47 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingGuangzhouCo.,Ltd. | April2,2021 | 42,000 | September23,2021 | Jointliabilityassurance | 2021.09.23-2022.09.23 | N | Y | ||
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | April2,2021 | 5,000 | May20,2021 | 4,396.63 | Jointliabilityassurance | 2021.05.20-2022.05.20 | N | Y | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | April2,2021 | 12,000 | October20,2021 | 10,563.1 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | April2,2021 | 15,000 | May10,2021 | 7,127.6 | Jointliabilityassurance | 2021.05.10-2022.05.09 | N | Y | |
| SinopharmHoldingGuangdong | April2,2021 | 3,000 | December1,2021 | 2,879.59 | Jointliabilityassuranc | 2021.12.01-2022.11.30 | N | Y |
YuexingCo.,Ltd.
| YuexingCo.,Ltd. | e | ||||||||
| SinopharmHoldingGuangdongYuexingCo.,Ltd. | April22,2020 | 5,000 | November20,2020 | 210.07 | Jointliabilityassurance | 2020.11.20-2021.11.19 | N | Y | |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | April2,2021 | 15,000 | October22,2021 | 2,674.29 | Jointliabilityassurance | 2021.10.22-2022.10.22 | N | Y | |
| SinopharmHoldingGuangdongHengxingCo.,Ltd. | April2,2021 | 3,000 | April28,2021 | 45.09 | Jointliabilityassurance | 2021.04.28-2022.04.27 | N | Y | |
| SinopharmHoldingFoshanCo.,Ltd. | April2,2021 | 500 | October20,2021 | 77.02 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingFoshanCo.,Ltd. | April2,2021 | 2,000 | May10,2021 | 180.21 | Jointliabilityassurance | 2021.05.10-2022.05.10 | N | Y | |
| SinopharmHoldingFoshanCo.,Ltd. | April22,2020 | 2,500 | March23,2021 | 22.44 | Jointliabilityassurance | 2021.03.23-2022.03.22 | N | Y | |
| SinopharmHoldingZhaoqingCo.,Ltd. | April2,2021 | 2,500 | October20,2021 | 997.87 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingZhaoqingCo.,Ltd. | April2,2021 | 2,000 | June1,2021 | 593.32 | Jointliabilityassurance | 2021.06.01-2022.05.11 | N | Y | |
| SinopharmHoldingZhaoqingCo.,Ltd. | April2,2021 | 3,000 | June30,2021 | 99.39 | Jointliabilityassurance | 2021.06.30-2022.06.29 | N | Y |
GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd.
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | April2,2021 | 19,500 | July1,2021 | 12,633.74 | Jointliabilityassurance | 2021.07.01-2022.06.30 | N | Y | |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | April2,2021 | 15,000 | October13,2021 | 4,137 | Jointliabilityassurance | 2021.10.13-2022.10.12 | N | Y | |
| GuangdongNanfangPharmaceuticalForeignTradeCo.,Ltd. | April2,2021 | 10,000 | December5,2021 | 1,132.07 | Jointliabilityassurance | 2021.12.05-2022.11.18 | N | Y | |
| FoshanNanhaiMedicineCo.,Ltd. | April2,2021 | 1,500 | October20,2021 | 270.56 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| FoshanNanhaiMedicineCo.,Ltd. | April22,2020 | 10,000 | March22,2021 | 2,236.08 | Jointliabilityassurance | 2021.03.22-2022.03.21 | N | Y | |
| FoshanNanhaiMedicineCo.,Ltd. | April22,2020 | 7,000 | March1,2021 | Jointliabilityassurance | 2021.03.01-2022.02.28 | N | Y | ||
| FoshanNanhaiMedicineCo.,Ltd. | April2,2021 | 2,500 | September10,2021 | 923 | Jointliabilityassurance | 2021.09.10-2022.09.10 | N | Y | |
| FoshanNanhaiMedicineCo.,Ltd. | April2,2021 | 3,000 | June24,2021 | 2,579.02 | Jointliabilityassurance | 2021.06.24-2022.05.11 | N | Y | |
| FoshanNanhaiUptodate& | April2,2021 | 2,000 | October20,2021 | 80.76 | Jointliabilityassuranc | 2021.10.20-2022.10.19 | N | Y |
SpecialMedicinesCo.Ltd.
| SpecialMedicinesCo.Ltd. | e | ||||||||
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | April22,2020 | 10,000 | March22,2021 | 3,702.73 | Jointliabilityassurance | 2021.03.22-2022.03.21 | N | Y | |
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | April22,2020 | 7,000 | March1,2021 | Jointliabilityassurance | 2021.03.01-2022.02.28 | N | Y | ||
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | April2,2021 | 2,500 | September10,2021 | Jointliabilityassurance | 2021.09.10-2022.09.10 | N | Y | ||
| FoshanNanhaiUptodate&SpecialMedicinesCo.Ltd. | April2,2021 | 3,000 | June24,2021 | Jointliabilityassurance | 2021.06.24-2022.05.11 | N | Y | ||
| SinopharmHolding(Jiangmen)Co.,Ltd. | April2,2021 | 1,500 | October20,2021 | 716.46 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHolding(Jiangmen)Co.,Ltd. | April2,2021 | 5,000 | May26,2021 | 3,866.04 | Jointliabilityassurance | 2021.05.26-2022.05.11 | N | Y | |
| SinopharmHolding(Jiangmen)Co.,Ltd. | April2,2021 | 4,000 | May31,2021 | 280.9 | Jointliabilityassurance | 2021.05.31-2022.05.31 | N | Y | |
| SinopharmHoldingMeizhouCo., | April2,2021 | 1,000 | October20,2021 | 999.87 | Jointliabilityassuranc | 2021.10.20-2022.10.19 | N | Y |
Ltd.
| Ltd. | e | ||||||||
| SinopharmHoldingMeizhouCo.,Ltd. | April2,2021 | 5,000 | June3,2021 | 4,526.57 | Jointliabilityassurance | 2021.06.03-2022.05.11 | N | Y | |
| SinopharmHoldingMeizhouCo.,Ltd. | April2,2021 | 6,000 | June21,2021 | 1,420.43 | Jointliabilityassurance | 2021.06.21-2022.03.19 | N | Y | |
| SinopharmHoldingZhongshanCo.,Ltd. | April2,2021 | 1,000 | October20,2021 | 600 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingZhongshanCo.,Ltd. | April2,2021 | 2,000 | August17,2021 | 370 | Jointliabilityassurance | 2021.08.17-2022.08.16 | N | Y | |
| SinopharmHoldingZhongshanCo.,Ltd. | April2,2021 | 3,000 | May26,2021 | 2,232.21 | Jointliabilityassurance | 2021.05.26-2022.05.11 | N | Y | |
| SinopharmHoldingShantouCo.,Ltd. | April2,2021 | 500 | October20,2021 | 500 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingShantouCo.,Ltd. | April2,2021 | 3,000 | October21,2021 | 1,000 | Jointliabilityassurance | 2021.10.21-2022.06.28 | N | Y | |
| SinopharmHoldingShantouCo.,Ltd. | April2,2021 | 2,000 | June3,2021 | 800.27 | Jointliabilityassurance | 2021.06.03-2022.05.11 | N | Y | |
| SinopharmHoldingHuizhouCo.,Ltd. | April2,2021 | 1,000 | October20,2021 | 652.69 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingHuizhouCo.,Ltd. | April22,2020 | 3,000 | October20,2020 | 25.63 | Jointliabilityassurance | 2020.10.20-2021.10.19 | N | Y |
SinopharmHoldingHuizhouCo.,Ltd.
| SinopharmHoldingHuizhouCo.,Ltd. | April2,2021 | 4,000 | June3,2021 | 2,145.87 | Jointliabilityassurance | 2021.06.03-2022.05.11 | N | Y | |
| SinopharmHoldingZhanjiangCo.,Ltd. | April2,2021 | 2,000 | October20,2021 | 1,935 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingZhanjiangCo.,Ltd. | April2,2021 | 5,000 | October25,2021 | 1,816.38 | Jointliabilityassurance | 2021.10.25-2022.10.24 | N | Y | |
| SinopharmHoldingZhanjiangCo.,Ltd. | April2,2021 | 8,000 | May19,2021 | 4,630.48 | Jointliabilityassurance | 2021.05.19-2022.05.19 | N | Y | |
| SinopharmHoldingZhuhaiCo.,Ltd. | April2,2021 | 1,000 | October20,2021 | 1,000 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingZhuhaiCo.,Ltd. | April2,2021 | 3,000 | July8,2021 | 2,125.8 | Jointliabilityassurance | 2021.07.08-2022.07.07 | N | Y | |
| SinopharmHoldingZhuhaiCo.,Ltd. | April2,2021 | 4,000 | June1,2021 | 3,994.07 | Jointliabilityassurance | 2021.06.01-2022.05.11 | N | Y | |
| SinopharmHoldingZhuhaiCo.,Ltd. | April2,2021 | 4,000 | May1,2021 | Jointliabilityassurance | 2021.07.01-2022.04.28 | N | Y | ||
| SinopharmHoldingDongguanCo.,Ltd. | April2,2021 | 2,000 | October20,2021 | 1,527.79 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingDongguanCo.,Ltd. | April2,2021 | 3,000 | June3,2021 | 1,075.81 | Jointliabilityassurance | 2021.06.03-2022.05.11 | N | Y | |
| Sinopharm | April2, | 5,000 | July1,2021 | 1,851.53 | Joint | 2021.07.01- | N | Y |
HoldingDongguanCo.,Ltd.
| HoldingDongguanCo.,Ltd. | 2021 | liabilityassurance | 2022.02.27 | |||||||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 10,000 | May10,2021 | 7,373.5 | Jointliabilityassurance | 2021.05.10-2022.05.09 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 5,000 | April2,2021 | 4,998.57 | Jointliabilityassurance | 2021.04.02-2022.04.01 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 3,000 | July13,2021 | 2,860.13 | Jointliabilityassurance | 2021.07.13-2022.07.12 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 9,000 | October13,2021 | 7,444.06 | Jointliabilityassurance | 2021.10.13-2022.10.12 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 4,000 | October20,2021 | 3,999.1 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 2,500 | August19,2021 | 2,180.31 | Jointliabilityassurance | 2021.08.19-2022.08.18 | N | Y | ||
| GuangdongDongfangNewSpecialMedicineCo.,Ltd | April2,2021 | 3,000 | May19,2021 | 2,998.61 | Jointliabilityassurance | 2021.05.19-2022.05.11 | N | Y | ||
| SinopharmHoldingShaoguan | April2,2021 | 1,000 | October20,2021 | 1,000 | Jointliabilityassuranc | Theminorityshareholdershavesignedthe | 2021.10.20-2022.10.19 | N | Y |
Co.,Ltd.
| Co.,Ltd. | e | equitypledgecontractandregisteredtheirequitypledges | ||||||||
| SinopharmHoldingShaoguanCo.,Ltd. | April2,2021 | 3,000 | June11,2021 | 2,253.95 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.11-2022.05.11 | N | Y | |
| SinopharmHoldingMaomingCo.,Ltd. | April2,2021 | 4,500 | May31,2021 | 841.86 | Jointliabilityassurance | 2021.05.31-2022.05.11 | N | Y | ||
| SinopharmHoldingMaomingCo.,Ltd. | April2,2021 | 5,000 | August16,2021 | Jointliabilityassurance | 2021.08.16-2022.03.19 | N | Y | |||
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | April2,2021 | 3,000 | October22,2021 | 657.51 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.10.22-2022.10.22 | N | Y | |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | April2,2021 | 2,000 | September27,2021 | 36.54 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.09.27-2022.09.26 | N | Y | |
| SinopharmHoldingGuangzhouHuaduCo.,Ltd. | April22,2020 | 3,000 | February24,2021 | 592.73 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.02.24-2022.02.23 | N | Y | |
| SinopharmHolding | April2,2021 | 5,000 | June3,2021 | 3,680 | Jointliability | Theminorityshareholders | 2021.06.03-2022.05.11 | N | Y |
HeyuanCo.,Ltd.
| HeyuanCo.,Ltd. | assurance | havesignedtheequitypledgecontractandregisteredtheirequitypledges | ||||||||
| SinopharmHoldingHeyuanCo.,Ltd. | April2,2021 | 3,000 | May6,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.05.06-2022.03.19 | N | Y | ||
| SinopharmHoldingFoshanMedicalSuppliesSupplyChainCo.,Ltd. | April22,2020 | 1,000 | March1,2021 | 3.59 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.03.01-2022.02.28 | N | Y | |
| SinopharmAccord(Guangzhou)MedicineCo.,Ltd. | April2,2021 | 2,000 | May18,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.05.18-2022.05.11 | N | Y | ||
| SinopharmAccord(Yangjiang)MedicineCo.,Ltd. | April2,2021 | 5,000 | June1,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.01-2022.05.11 | N | Y | ||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 30,000 | May25,2021 | 15,581.7 | Jointliabilityassurance | 2021.05.25-2022.05.25 | N | Y | ||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 16,000 | October20,2021 | 11,083.91 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | ||
| Sinopharm | April2, | 15,000 | August27, | 10,323.75 | Joint | 2021.08.27- | N | Y |
HoldingGuangxiCo.,Ltd.
| HoldingGuangxiCo.,Ltd. | 2021 | 2021 | liabilityassurance | 2022.08.26 | ||||||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 10,000 | December31,2021 | Jointliabilityassurance | 2021.12.31-2022.12.30 | N | Y | |||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 25,000 | June28,2021 | 6,932.51 | Jointliabilityassurance | 2021.06.28-2022.06.28 | N | Y | ||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 10,000 | September3,2021 | Jointliabilityassurance | 2021.09.03-2022.06.30 | N | Y | |||
| SinopharmHoldingGuangxiCo.,Ltd. | April2,2021 | 20,000 | May20,2021 | 13,848.08 | Jointliabilityassurance | 2021.05.20-2022.05.20 | N | Y | ||
| SinopharmHoldingLiuzhouCo.,Ltd. | April2,2021 | 5,000 | October20,2021 | 1,964.52 | Jointliabilityassurance | Theminorityshareholdershavesignedthecounter-guaranteecontract | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingLiuzhouCo.,Ltd. | April2,2021 | 10,000 | July21,2021 | 2,761.75 | Jointliabilityassurance | Theminorityshareholdershavesignedthecounter-guaranteecontract | 2021.07.21-2022.07.20 | N | Y | |
| SinopharmHoldingLiuzhouCo.,Ltd. | April22,2020 | 10,000 | March4,2021 | 3,368.64 | Jointliabilityassurance | Theminorityshareholdershavesignedthecounter-guaranteecontract | 2021.03.04-2022.02.08 | N | Y | |
| SinopharmHoldingLiuzhouCo.,Ltd. | April2,2021 | 5,000 | September29,2021 | 3,133.76 | Jointliabilityassurance | Theminorityshareholdershavesignedthecounter-guarantee | 2021.09.29-2022.07.01 | N | Y |
contract
| contract | ||||||||||
| SinopharmHoldingLiuzhouCo.,Ltd. | April2,2021 | 9,000 | May17,2021 | 3,000 | Jointliabilityassurance | Theminorityshareholdershavesignedthecounter-guaranteecontract | 2021.05.17-2022.05.16 | N | Y | |
| SinopharmHoldingBeihaiCo.,Ltd. | April2,2021 | 2,000 | May20,2021 | 1,500 | Jointliabilityassurance | 2021.05.20-2022.05.20 | N | Y | ||
| SinopharmHoldingBeihaiCo.,Ltd. | April2,2021 | 3,000 | May26,2021 | 3,000 | Jointliabilityassurance | 2021.05.26-2022.05.25 | N | Y | ||
| SinopharmHoldingGuigangCo.,Ltd. | April2,2021 | 2,000 | May26,2021 | 2,000 | Jointliabilityassurance | 2021.05.26-2022.05.25 | N | Y | ||
| SinopharmHoldingWuzhouCo.,Ltd. | April22,2020 | 2,000 | August7,2020 | 2,000 | Jointliabilityassurance | 2020.08.07-2021.08.07 | N | Y | ||
| SinopharmHoldingGuigangCo.,Ltd. | April22,2020 | 1,000 | January29,2021 | 1,000 | Jointliabilityassurance | 2021.01.29-2022.01.28 | N | Y | ||
| SinopharmHoldingGuilinCo.,Ltd. | April2,2021 | 2,000 | May26,2021 | 2,000 | Jointliabilityassurance | 2021.05.26-2022.05.25 | N | Y | ||
| SinopharmHoldingYulinCo.,Ltd. | April2,2021 | 3,000 | May26,2021 | 2,000 | Jointliabilityassurance | 2021.05.26-2022.05.25 | N | Y | ||
| SinopharmHoldingMedicineSupplyChainService(Guangxi)Co.,Ltd. | April2,2021 | 706 | August20,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.08.20-2022.08.19 | N | Y |
SinopharmHoldingShenzhenYanfengCo.,Ltd.
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | April2,2021 | 4,000 | October20,2021 | 3,340 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | April2,2021 | 8,000 | October11,2021 | 863.96 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.10.26-2022.10.11 | N | Y | |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | April2,2021 | 4,000 | December1,2021 | 974.25 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.01-2022.11.30 | N | Y | |
| SinopharmHoldingShenzhenYanfengCo.,Ltd. | April2,2021 | 5,000 | July8,2021 | 140 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.07.08-2022.05.27 | N | Y | |
| SinopharmHoldingShenzhenJianminCo.,ltd. | April2,2021 | 3,000 | October20,2021 | 2,490.06 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | ||
| SinopharmHoldingShenzhenJianminCo.,ltd. | April2,2021 | 2,000 | December8,2021 | 1,680 | Jointliabilityassurance | 2021.12.08-2022.11.18 | N | Y | ||
| SinopharmHoldingShenzhenJianminCo., | April2,2021 | 1,000 | December1,2021 | 998.48 | Jointliabilityassurance | 2021.12.01-2022.11.30 | N | Y |
ltd.
| ltd. | ||||||||||
| SinopharmHoldingShenzhenJianminCo.,ltd. | April2,2021 | 3,000 | June22,2021 | Jointliabilityassurance | 2021.06.22-2022.05.11 | Y | Y | |||
| SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd. | April2,2021 | 1,500 | June22,2021 | Jointliabilityassurance | 2021.06.22-2022.05.11 | Y | Y | |||
| SinopharmHoldingShenzhenMedicinalMaterialsCo.,Ltd. | April2,2021 | 500 | October20,2021 | Jointliabilityassurance | 2021.10.20-2022.10.19 | N | Y | |||
| SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd. | April2,2021 | 3,000 | October20,2021 | 2,360.02 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.10.20-2022.10.19 | N | Y | |
| SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd. | April22,2020 | 3,000 | March24,2021 | 2,500 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.03.24-2022.03.24 | N | Y | |
| SinopharmAccordMedicalDevices(Shenzhen)Co.,Ltd. | April2,2021 | 5,000 | November22,2021 | 5,000 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.22-2022.05.11 | N | Y | |
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(B1) | 865,206 | Totalamountofactualoccurredguaranteefor | 1,294,382.95 | |||||||
subsidiariesinreportperiod(B2)
| subsidiariesinreportperiod(B2) | ||||||||||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(B3) | 877,206 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(B4) | 381,547.28 | |||||||
| Guaranteesofsubsidiariestosubsidiaries | ||||||||||
| NameoftheCompanyguaranteed | RelatedAnnouncementdisclosuredate | Guaranteelimit | Actualdateofhappening | Actualguaranteelimit | Guaranteetype | Collateral(ifapplicable) | Counter-guaranteesituation(ifapplicable) | Guaranteeterm | Implemented(Y/N) | Guaranteeforrelatedparty(Y/N) |
| BeijingJinxiangDrugstoreMedicineChainCo.,Ltd | April2,2021 | 4,200 | December24,2021 | 2,203.87 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | ||
| FujianGuodaDrugstoreChainCo.,Ltd. | April2,2021 | 1,200 | August13,2021 | 763.33 | Jointliabilityassurance | 2021.08.13—2022.08.12 | N | Y | ||
| FujianGuodaDrugstoreChainCo.,Ltd. | April2,2021 | 1,800 | November2,2021 | 1,281.77 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| FujianGuodaMedicinesCo.,Ltd. | April2,2021 | 600 | August13,2021 | 444.74 | Jointliabilityassurance | 2021.08.13—2022.08.12 | N | Y | ||
| GuodaDrugstore(Pu'er)SongmaoCo.,Ltd. | April2,2021 | 1,200 | June10,2021 | 790.53 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.10—2022.05.12 | N | Y | |
| GuodaYiheDrugstoreJilinCo.,Ltd. | April2,2021 | 4,080 | September10,2021 | 3,990.96 | Jointliabilityassurance | 2021.09.10—2022.09.10 | N | Y | ||
ChinaNationalHebeiLerentangMedicineChainCo.,Ltd.
| ChinaNationalHebeiLerentangMedicineChainCo.,Ltd. | April2,2021 | 3,000 | December24,2021 | 2,752.49 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| ChinaNationalHebeiLerentangMedicineChainCo.,Ltd. | April2,2021 | 4,800 | November2,2021 | 4,797.21 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| ChinaNationalHebeiLerentangMedicineChainCo.,Ltd. | April2,2021 | 9,000 | June8,2021 | 4,224.86 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.08—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaForMePharmacyShanghaiChainCo.,Ltd. | April2,2021 | 1,800 | July9,2021 | 270.29 | Jointliabilityassurance | 2021.07.09—2022.05.24 | N | Y | ||
| SinopharmHoldingGuodaForMePharmacyShanghaiChainCo.,Ltd. | April2,2021 | 1,800 | November23,2021 | 896.24 | Jointliabilityassurance | 2021.11.23—2022.04.22 | N | Y | ||
| SinopharmHoldingGuodaShanxiMedicinesCo.,Ltd. | April2,2021 | 13,200 | July12,2021 | 13,230 | Jointliabilityassurance | 2021.07.12—2022.05.12 | N | Y | ||
| SinopharmHoldingGuodaShanxi | April2,2021 | 6,000 | November2,2021 | 6,000 | Jointliabilityassuranc | 2021.11.02— | N | Y |
MedicinesCo.,Ltd.
| MedicinesCo.,Ltd. | e | 2022.11.01 | ||||||||
| SinopharmHoldingGuodaDrugstore(Shenzhen)ChainCo.,Ltd. | April2,2021 | 1,800 | December24,2021 | 1,045.73 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreBayanNurCo.,Ltd. | April2,2021 | 600 | June4,2021 | 594.77 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.04—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | April2,2021 | 6,000 | November2,2021 | 2,115.66 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | April2,2021 | 1,800 | December24,2021 | 308.03 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreGuangdongCo.,Ltd. | April2,2021 | 6,000 | June22,2021 | 4,139.96 | Jointliabilityassurance | 2021.06.22—2022.05.12 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreGuangxiChainCo.,Ltd. | April2,2021 | 1,800 | November2,2021 | 293.54 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| Sinopharm | April2, | 600 | December | 340.09 | Joint | 2021.12.24 | N | Y |
HoldingGuodaDrugstoreGuangxiChainCo.,Ltd.
| HoldingGuodaDrugstoreGuangxiChainCo.,Ltd. | 2021 | 24,2021 | liabilityassurance | —2022.12.23 | ||||||
| SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd. | April2,2021 | 1,200 | December24,2021 | 959.28 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| SinopharmHoldingGuodaDrugstoreHenanChainCo.,Ltd. | April2,2021 | 1,800 | August18,2021 | 1,787.35 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.08.18—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaDrugstoreHulunBuirCo.,Ltd. | April2,2021 | 600 | June4,2021 | 595.13 | Jointliabilityassurance | 2021.06.04—2022.05.12 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreHulunBuirCo.,Ltd. | April2,2021 | 600 | November2,2021 | 522.41 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| SinopharmHoldingGuoda(Jiangmen)PharmaceuticalCo.,Ltd. | April2,2021 | 1,800 | November2,2021 | 722.55 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| SinopharmHoldingGuoda(Jiangmen) | April2,2021 | 1,200 | April2,2021 | 610.36 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledge | 2021.04.02—2022.04.01 | N | Y |
PharmaceuticalCo.,Ltd.
| PharmaceuticalCo.,Ltd. | contractandregisteredtheirequitypledges | |||||||||
| SinopharmHoldingGuoda(Jiangmen)PharmaceuticalCo.,Ltd. | April2,2021 | 1,800 | December24,2021 | 622.91 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| SinopharmHoldingGuoda(Jiangmen)PharmaceuticalCo.,Ltd. | April22,2020 | 3,000 | December28,2020 | 1,570.21 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2020.12.28—2021.12.27 | N | Y | |
| SinopharmHoldingGuodaDrugstoreNanjingChainCo.,Ltd. | April2,2021 | 600 | December24,2021 | 504.09 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd | April2,2021 | 1,800 | November4,2021 | 687.58 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.04—2022.11.03 | N | Y | |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd | April2,2021 | 1,800 | July22,2021 | 1,799.07 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.07.22—2022.07.22 | N | Y | |
| SinopharmHoldingGuodaDrugstoreInner | April2,2021 | 6,000 | November2,2021 | 5,888.73 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractand | 2021.11.02—2022.11.01 | N | Y |
MongoliaCo.,Ltd
| MongoliaCo.,Ltd | registeredtheirequitypledges | |||||||||
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd | April2,2021 | 4,800 | December24,2021 | 760.72 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd | April2,2021 | 1,800 | June7,2021 | 1,771.69 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.07—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaDrugstoreInnerMongoliaCo.,Ltd | April2,2021 | 6,600 | December30,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.30—2022.12.29 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | April2,2021 | 5,040 | May6,2021 | 1,136.95 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.05.06—2022.05.05 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | April22,2020 | 3,600 | November28,2020 | 1,851.66 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2020.11.28—2021.11.27 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChain | April2,2021 | 3,000 | November8,2021 | 2,785.24 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir | 2021.11.08—2022.11.07 | N | Y |
Co.,Ltd.
| Co.,Ltd. | equitypledges | |||||||||
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | April2,2021 | 9,000 | November2,2021 | 8,952.94 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | April2,2021 | 5,400 | December6,2021 | 3,663.23 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.06—2022.12.05 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShanxiYiyuanChainCo.,Ltd. | April2,2021 | 4,200 | June8,2021 | 4,158.69 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.08—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | April2,2021 | 1,800 | December13,2021 | Jointliabilityassurance | 2021.12.13—2022.04.22 | N | Y | |||
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | April2,2021 | 2,400 | June20,2021 | 1,961.58 | Jointliabilityassurance | 2021.06.20—2022.06.20 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | April2,2021 | 2,400 | July16,2021 | Jointliabilityassurance | 2021.07.16—2022.07.16 | N | Y |
SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd.
| SinopharmHoldingGuodaDrugstoreShanghaiChainCo.,Ltd. | April2,2021 | 3,000 | July9,2021 | 1,827.27 | Jointliabilityassurance | 2021.07.09—2022.05.24 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | April2,2021 | 6,000 | December24,2021 | 1,328.35 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | April2,2021 | 6,000 | December16,2021 | 3,626.66 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.16—2022.12.16 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | April2,2021 | 15,000 | November2,2021 | 11,099.87 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| SinopharmHoldingGuodaDrugstoreShenyangChainCo.,Ltd. | April2,2021 | 13,800 | June1,2021 | 13,797.89 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.01—2022.05.12 | N | Y | |
| SinopharmHoldingGuodaDrugstoreUlanqabCo.,Ltd. | April2,2021 | 600 | June4,2021 | 20.84 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.04—2022.05.12 | N | Y |
SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd.
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd. | April2,2021 | 3,000 | December6,2021 | 1,089.96 | Jointliabilityassurance | 2021.12.06—2022.12.06 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreXinjiangNewSpecialMedicineChainCo.,Ltd. | April2,2021 | 4,800 | May26,2021 | 4,765.48 | Jointliabilityassurance | 2021.05.26—2022.05.12 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd. | April2,2021 | 1,200 | November2,2021 | 853.23 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| SinopharmHoldingGuodaDrugstoreYangzhouDadeshengChainCo.,Ltd. | April2,2021 | 1,200 | December24,2021 | 980.09 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | ||
| SinopharmHoldingTianheJilinMedicinesCo.,Ltd. | April2,2021 | 6,000 | November9,2021 | 4,004.43 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.09—2022.11.08 | N | Y | |
| SinopharmHolding | April2,2021 | 3,000 | November2,2021 | 2,641.2 | Jointliability | Theminorityshareholders | 2021.11.02— | N | Y |
TianheJilinMedicinesCo.,Ltd.
| TianheJilinMedicinesCo.,Ltd. | assurance | havesignedtheequitypledgecontractandregisteredtheirequitypledges | 2022.11.01 | |||||||
| SinopharmHoldingTianheJilinMedicinesCo.,Ltd. | April2,2021 | 6,000 | April28,2021 | 1,316.77 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.04.28—2022.04.27 | N | Y | |
| HunanGuodaMinshentangDrugstoreChainCo.,Ltd. | April2,2021 | 1,800 | November2,2021 | 1,211.89 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| HunanGuodaMinshentangDrugstoreChainCo.,Ltd. | April2,2021 | 1,200 | December24,2021 | 614.48 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.24—2022.12.23 | N | Y | |
| LiaoningChengdaFangyuanMedicineChainCo.,Ltd. | April2,2021 | 15,000 | June22,2021 | 11,540.81 | Jointliabilityassurance | 2021.06.22—2022.06.21 | N | Y | ||
| LiaoningChengdaFangyuanMedicineChainCo.,Ltd. | April2,2021 | 6,000 | December24,2021 | 4,217.04 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | ||
| LiaoningChengdaFangyuanMedicineChainCo., | April2,2021 | 4,800 | June1,2021 | 4,794.3 | Jointliabilityassurance | 2021.06.01—2022.05.12 | N | Y |
Ltd.
| Ltd. | ||||||||||
| LiaoningChengdaFangyuanMedicineChainCo.,Ltd. | April2,2021 | 6,000 | November2,2021 | 3,445.24 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | ||
| LiaoningGuodaMedicinesCo.,Ltd. | April2,2021 | 3,000 | November2,2021 | Jointliabilityassurance | 2021.11.02—2022.11.01 | N | Y | |||
| LiaoningGuodaMedicinesCo.,Ltd. | April2,2021 | 3,000 | June1,2021 | 2,999.46 | Jointliabilityassurance | 2021.06.01—2022.05.12 | N | Y | ||
| InnerMongoliaGuodaMedicineCo.,Ltd. | April2,2021 | 2,400 | June7,2021 | 2,399.56 | Jointliabilityassurance | 2021.06.07—2022.05.12 | N | Y | ||
| NingxiaGuodaDrugstoreChainCo.,Ltd. | April2,2021 | 2,400 | September6,2021 | 2,383.2 | Jointliabilityassurance | 2021.09.06—2022.09.06 | N | Y | ||
| NingxiaGuodaDrugstoreChainCo.,Ltd. | April2,2021 | 1,200 | December24,2021 | Jointliabilityassurance | 2021.12.24—2022.12.23 | N | Y | |||
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 3,600 | December22,2021 | 1,980 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.12.22—2022.12.21 | N | Y | |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 2,400 | August17,2021 | 720 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractand | 2021.08.17—2022.02.04 | N | Y |
registeredtheirequitypledges
| registeredtheirequitypledges | ||||||||||
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 3,600 | July15,2021 | 3,600 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.07.15—2022.07.15 | N | Y | |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 15,000 | June8,2021 | 11,940 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.08—2022.05.12 | N | Y | |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 7,200 | November2,2021 | 7,200 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.11.02—2022.11.01 | N | Y | |
| ShanxiGuodaWanminDrugstoreChainCo.,Ltd. | April2,2021 | 3,000 | April29,2021 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.04.29—2022.04.15 | N | Y | ||
| YanjiXiangheMedicinesCo.,Ltd. | April2,2021 | 1,800 | June8,2021 | 1,200 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheirequitypledges | 2021.06.08—2022.05.12 | N | Y | |
| YushuDinghePharmaceuticalTechnologyCo.,Ltd. | April2,2021 | 1,800 | June8,2021 | 415.14 | Jointliabilityassurance | Theminorityshareholdershavesignedtheequitypledgecontractandregisteredtheir | 2021.06.08—2022.05.12 | N | Y |
equitypledges
| equitypledges | ||||||
| Totalamountofapprovingguaranteeforsubsidiariesinreportperiod(C1) | 291,720 | Totalamountofactualoccurredguaranteeforsubsidiariesinreportperiod(C2) | 792,084.85 | |||
| Totalamountofapprovedguaranteeforsubsidiariesattheendofreportingperiod(C3) | 298,320 | Totalbalanceofactualguaranteeforsubsidiariesattheendofreportingperiod(C4) | 201,809.61 | |||
| TotalamountofguaranteeoftheCompany(totalofthreeabovementionedguarantee) | ||||||
| Totalamountofapprovingguaranteeinreportperiod(A1+B1+C1) | 1,156,926 | Totalamountofactualoccurredguaranteeinreportperiod(A2+B2+C2) | 2,086,467.8 | |||
| Totalamountofapprovedguaranteeattheendofreportperiod(A3+B3+C3) | 1,175,526 | Totalbalanceofactualguaranteeattheendofreportperiod(A4+B4+C4) | 583,356.89 | |||
| TheproportionofthetotalamountofactuallyguaranteeinthenetassetsoftheCompany(thatisA4+B4+C4) | 39.09% | |||||
| Including: | ||||||
| Amountofguaranteeforshareholders,actualcontrolleranditsrelatedparties(D) | 0 | |||||
| Thedebtsguaranteeamountprovidedfortheguaranteedpartieswhoseassets-liabilityratioexceed70%directlyorindirectly(E) | 0 | |||||
| ProportionoftotalamountofguaranteeinnetassetsoftheCompanyexceed50%(F) | 0 | |||||
| Totalamountoftheaforesaidthreeguarantees(D+E+F) | 0 | |||||
| Explanationsonpossiblybearingjointandseveralliquidatingresponsibilitiesforundueguarantees(ifapplicable) | 0 | |||||
| Explanationsonexternalguaranteeagainstregulatedprocedures(ifapplicable) | 0 | |||||
Explanationonguaranteeusingthecompositeway
3.Entrustotherstocashassetmanagement
(1)Trustfinancing
□Applicable√NotapplicableTheCompanyhadnotrustfinancinginthereportingperiod.
(2)Entrustedloans
□Applicable√NotapplicableThecompanyhadnoentrustedloansinthereportingperiod.
4.Othermaterialcontracts
□Applicable√NotapplicableNoothermaterialcontractsfortheCompanyinreportingperiod.XVI.Explanationonothersignificantevents
□Applicable√NotapplicableNoothersignificanteventsneedtoexplaininthereportingperiod.XVII.SignificanteventofsubsidiaryoftheCompany
□Applicable√Notapplicable
SectionVII.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital
1.ChangesinShareCapital
InShare
BeforetheChange
| BeforetheChange | Increase/DecreaseintheChange(+,-) | AftertheChange | |||||||
| Amount | Proportion | Newsharesissued | Bonusshares | Capitalizationofpublicreserve | Others | Subtotal | Amount | Proportion | |
| I.Restrictedshares | 5,508,883 | 1.29% | 5,508,883 | 1.29% | |||||
| 1.Sharesholdbythestate | |||||||||
| 2.State-ownedlegalperson’sshares | 5,505,770 | 1.29% | 5,505,770 | 1.29% | |||||
| 3.Otherdomesticshareholding | 3,113 | 0.00% | 3,113 | 0.00% | |||||
| Including:Domesticlegalperson’sshares | 0 | 0.00% | 0 | 0.00% | |||||
| Domesticnaturepersonshares | 3,113 | 0.00% | 3,113 | 0.00% | |||||
| 4.Foreignshareholding | |||||||||
| Including:sharesholdbyoverseaslegalperson | |||||||||
| Shareholdbyoverseasnaturalperson | |||||||||
| II.Unrestrictedshares | 422,618,100 | 98.71% | 422,618,100 | 98.71% | |||||
| 1.RMBOrdinaryshares | 367,733,625 | 85.89% | 367,733,625 | 85.89% | |||||
| 2.Domesticallylistedforeignshares | 54,884,475 | 12.82% | 54,884,475 | 12.82% | |||||
| 3.Foreignshareslistedabroad | |||||||||
| 4.Other | |||||||||
| III.Totalshares | 428,126,983 | 100.00% | 428,126,983 | 100.00% | |||||
Reasonsforsharechanged
□Applicable√NotapplicableApprovalofsharechanged
□Applicable√NotapplicableOwnershiptransferofsharechanged
□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinlatestyearandperiod
□Applicable√NotapplicableOtherinformationnecessarytodisclosefortheCompanyorneedtodisclosedunderrequirementfromsecurityregulators
□Applicable√Notapplicable
2.Changesofrestrictedshares
□Applicable√NotapplicableII.Securitiesissuanceandlisting
1.Securityoffering(withoutpreferredstock)inReportingPeriod
□Applicable√Notapplicable
2.Changesoftotalsharesandshareholdersstructureaswellasexplanationonchangesofassetsandliabilitystructure
□Applicable√Notapplicable
3.Currentinternalstaffshares
□Applicable√NotapplicableIII.ParticularsaboutshareholderandactualcontrolleroftheCompany
1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding
InShare
Totalcommonstock
| Totalcommonstock | 44,290 | Totalcommonstock | 42,450 | Totalpreferredshareholderswith | 0 | Totalpreferred | 0 |
shareholdersinreportingperiod-end
| shareholdersinreportingperiod-end | shareholdersatendoflastmonthbeforeannualreportdisclosed | votingrightsrecoveredatendofreportingperiod(ifapplicable) | shareholderswithvotingrightsrecoveredatendoflastmonthbeforeannualreportdisclosed(ifapplicable) | ||||||||
| Particularsaboutsharesheldabove5%byshareholdersortoptenshareholders | |||||||||||
| FullnameofShareholders | Natureofshareholder | Proportionofsharesheld | Totalshareholdersattheendofreportperiod | Changesinreportperiod | Amountoflock-upsharesheld | Amountofun-restrictedsharesheld | Informationofsharespledged,taggedorfrozen | ||||
| Stateofshare | Amount | ||||||||||
| SinopharmGroupCo.,Ltd. | State-ownedCorporation | 56.06% | 239,999,991 | 5,505,770 | 234,494,221 | ||||||
| FIRSTSENTIERINVESTORSGLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUND | ForeignCorporation | 2.52% | 10,802,495 | 10,802,495 | |||||||
| HongKongSecuritiesClearingCompanyLtd. | ForeignCorporation | 2.19% | 9,383,011 | 9,383,011 | |||||||
| ChinaNationalPharmaceuticalForeignTradeCorp. | State-ownedCorporation | 1.24% | 5,323,043 | 5,323,043 | |||||||
| NationalSocialSecurityFund413Portfolio | Domesticnonstate-ownedCorporation | 1.06% | 4,530,032 | 4,530,032 | |||||||
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | ForeignCorporation | 0.78% | 3,358,761 | 3,358,761 | |||||||
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | ForeignCorporation | 0.54% | 2,301,737 | 2,301,737 | |||||||
| ICBC-GuolianAndeshengSmallSelectedSecuritiesInvestmentFund | Domesticnonstate-ownedCorporation | 0.38% | 1,632,000 | 1,632,000 | |||||||
VANGUARDEMERGINGMARKETSSTOCKINDEXFUND
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | ForeignCorporation | 0.37% | 1,603,189 | 1,603,189 | |||
| CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplan | Domesticnonstate-ownedCorporation | 0.34% | 1,470,224 | 1,470,224 | |||
| Strategyinvestorsorgeneralcorporationcomestop10shareholdersduetorightsissue(ifapplicable) | |||||||
| Explanationonassociatedrelationshipamongtheaforesaidshareholders | SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | ||||||
| Descriptionoftheaboveshareholdersinrelationtodelegate/entrustedvotingrightsandabstentionfromvotingrights. | |||||||
| Specialnoteontherepurchaseaccountamongthetop10shareholders(ifapplicable) | |||||||
| Particularabouttoptencommonshareholderswithun-restrictsharesheld | |||||||
| Shareholders | Amountofun-restrictcommonsharesheldatperiod-end | Typeofshares | |||||
| Type | Amount | ||||||
| SinopharmGroupCo.,Ltd. | 234,494,221 | RMBordinaryshares | 234,494,221 | ||||
| FIRSTSENTIERINVESTORSGLOBALUMBRELLAFUNDPLC-FSSACHINAGROWTHFUND | 10,802,495 | Domesticallylistedforeignshares | 10,802,495 | ||||
| HongKongSecuritiesClearingCompanyLtd. | 9,383,011 | RMBordinaryshares | 9,383,011 | ||||
| ChinaNationalPharmaceuticalForeignTradeCorp. | 5,323,043 | RMBordinaryshares | 5,323,043 | ||||
NationalSocialSecurityFund413Portfolio
| NationalSocialSecurityFund413Portfolio | 4,530,032 | RMBordinaryshares | 4,530,032 |
| BBHBOSS/AFIDELITYFD-CHINAFOCUSFD | 3,358,761 | Domesticallylistedforeignshares | 3,358,761 |
| FidelityInvestmentManagement(HongKong)Limited-Client’sfund | 2,301,737 | RMBordinaryshares | 2,301,737 |
| ICBC-GuolianAndeshengSmallSelectedSecuritiesInvestmentFund | 1,632,000 | RMBordinaryshares | 1,632,000 |
| VANGUARDEMERGINGMARKETSSTOCKINDEXFUND | 1,603,189 | Domesticallylistedforeignshares | 1,603,189 |
| CPICFund-ChinaPacificLifeInsuranceCo.,Ltd.-with-profitinsurance-CPICFundChinaPacificLifeEquityRelativeIncome(GuaranteedDividend)singleassetsmanagementplan | 1,470,224 | RMBordinaryshares | 1,470,224 |
| Expiationonassociatedrelationshiporconsistentactorswithinthetop10un-restrictshareholdersandbetweentop10un-restrictshareholdersandtop10shareholders | SinopharmGroupCo.,Ltd.andChinaNationalPharmaceuticalForeignTradeCorporationhavethesameactualcontroller,whichisChinaNationalPharmaceuticalGroupCorporation.ItisunknownthatthereexistsnoassociatedrelationshiporbelongstotheconsistentactionistamongtheothertradableshareholdersregulatedbytheManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies. | ||
| Explanationontop10shareholdersinvolvingmarginbusiness(ifapplicable) | |||
Whethertoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldhaveabuy-backagreementdealinginreportingperiod
□Yes√NoThetoptencommonstockshareholdersortoptencommonstockshareholderswithun-restrictsharesheldoftheCompanyhavenobuy-backagreementdealinginreportingperiod.
2.ControllingshareholderoftheCompany
Natureofcontrollingshareholders:centralstate-ownedholdingTypeofcontrollingshareholders:legalperson
| Controllingshareholders | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| SinopharmGroupCo.,Ltd. | YuQingming | January8,2003 | 74618434-4 | Industrialinvestmentholding;managementandassets |
reorganizationentrustedbypharmaceuticalenterprise;Chinesemedicine,Chinesemedicinetablets,chemicalmedicinepreparations,chemicalrawmaterials,antibiotics,biochemicaldrugs,biologicalproducts,narcoticdrugs,psychotropicsubstances,toxicdrugsformedicaluse(compatiblewiththebusinessscope),medicineIVDReagents,vaccine,Anabolicagents,wholesaleofpeptidehormones,medicaldeviceoperation,foodsalesmanagement(non-physicalmethod),technologydevelopment,technologytransfer,technicalconsultation,technicalserviceinthefieldofmedicaltechnology,chemicalrawmaterialsandproducts(excepthazardouschemicals,monitoringchemicals,fireworksandfirecrackers,flammablesandexplosives,explosivesforcivilianuse),wholesaleofdisinfectionproducts,dailynecessities,textilesandknitwearandprotectiveequipmentformedicalstaff,salesoflaborprotectionsupplies,dailymask(non-medical)sales,logisticsandrelatedconsultingservices,operatingvarioustypesofgoodsandimportandexportoftechnology(notattacheddirectoryofimportandexportcommodities),butexcludedtheimportandexportofgoodsandtechnologytheStatelimitsorprohibitthecompany.Etc.(Withtheexceptionofprojectssubjecttoapprovalaccordingtothelaw,carryoutbusinessactivitiesindependentlyaccordingtothebusinesslicense)
| reorganizationentrustedbypharmaceuticalenterprise;Chinesemedicine,Chinesemedicinetablets,chemicalmedicinepreparations,chemicalrawmaterials,antibiotics,biochemicaldrugs,biologicalproducts,narcoticdrugs,psychotropicsubstances,toxicdrugsformedicaluse(compatiblewiththebusinessscope),medicineIVDReagents,vaccine,Anabolicagents,wholesaleofpeptidehormones,medicaldeviceoperation,foodsalesmanagement(non-physicalmethod),technologydevelopment,technologytransfer,technicalconsultation,technicalserviceinthefieldofmedicaltechnology,chemicalrawmaterialsandproducts(excepthazardouschemicals,monitoringchemicals,fireworksandfirecrackers,flammablesandexplosives,explosivesforcivilianuse),wholesaleofdisinfectionproducts,dailynecessities,textilesandknitwearandprotectiveequipmentformedicalstaff,salesoflaborprotectionsupplies,dailymask(non-medical)sales,logisticsandrelatedconsultingservices,operatingvarioustypesofgoodsandimportandexportoftechnology(notattacheddirectoryofimportandexportcommodities),butexcludedtheimportandexportofgoodsandtechnologytheStatelimitsorprohibitthecompany.Etc.(Withtheexceptionofprojectssubjecttoapprovalaccordingtothelaw,carryoutbusinessactivitiesindependentlyaccordingtothebusinesslicense) | ||
| Equityofotherdomestic/oversealistedcompanycontrolby | SinopharmGroupCo.,Ltd.hold54.72percentequityofChinaNationalMedicinesCorporationLtd(Stockcode:600511)uptotheendofPeriod. | |
controllingshareholderaswellasstock-jointinreportperiod
Changesofcontrollingshareholdersinreportingperiod
□Applicable√NotapplicableTheCompanyhadnochangesofcontrollingshareholdersinreportingperiod.
3.ActualcontrolleroftheCompanyandpersonsactinginconcertNatureofactualcontroller:centralstate-ownedassetsmanagementTypeofactualcontroller:legalperson
controllingshareholderaswellasstock-jointinreportperiodActualcontrolling
shareholders
| Actualcontrollingshareholders | Legalperson/personinchargeoftheunit | Dateoffoundation | Organizationcode | Mainoperationbusiness |
| ChinaNationalPharmaceuticalGroupCorporation | LiuJingzhen | March26,1987 | 10000588-8 | Chinesepatentdrug,traditionalChinesemedicinespreparedinready-to-useforms,traditionalChinesemedicinalmaterials,chemicalAPI,chemicalmedicinepreparation,antibiotics,biochemicaldrugandbiologicpharmacy(Licenseforpharmaceuticaltradingrunsuntil12May2020);mandatoryforpharmaceuticalenterprise,assetreorganization;consultingserviceofmedicineindustrialinvestment;exhibitionofmedicaldevices;consultingserviceswithmainbusinessconcerned.(theenterprisehasindependentchoicesonoperationitemsforbusiness;inrightofexequaturtorunifreferstopermissionoperation;operationactivitythatprohibitedorrestrictedbytheCityGovernmentarenotallowed) |
Equityofdomestic/oversealistedcompanycontrolbyactualcontrollerinreportperiod
| Equityofdomestic/oversealistedcompanycontrolbyactualcontrollerinreportperiod | Name | Nameoflistedcompanywithsharesheld | Totalshareholdersheld(10thousandshares) | Proportionofsharesheld | |
| SINOPHARM | SinopharmHolding | 20,728.95 | 6.64% | ||
| SinopharmHoldingIndustrialInvestmentCo.,Ltd. | 157,155.60 | 50.36% | |||
| SinopharmHolding | SinopharmHolding | 41,284.17 | 54.72% | ||
| SinopharmHolding | SinopharmAccord | 24,000.00 | 56.06% | ||
| SIPS | SinopharmModern | 23,951.26 | 23.32% | ||
| SinopharmAccord | SinopharmModern | 16,714.22 | 16.28% | ||
| ChinaBiotechnologyCo.,Ltd. | BTBP | 62,673.65 | 45.64% | ||
| ChengduInstituteofBiologicalProductsCo.,Ltd. | 4,848.43 | 3.53% | |||
| BeijingInstituteofBiologicalProductsCo.,Ltd. | 1,305.72 | 0.95% | |||
| SINOPHARMH.K.Co.,Ltd. | ChinaTCM | 163,470.56 | 32.46% | ||
| TaiChiGroupCo.,Ltd. | TaiChiGroup | 15,381.23 | 27.62% | ||
| ChongqingFulingDistrictXilanBiotechnologyCo.,Ltd. | 1,189.53 | 2.14% | |||
| ChongqingTaijiMedicinalAnimalandPlantResources | 36.73 | 0.07% |
DevelopmentCo.,Ltd.
Changesofactualcontrollerinreportingperiod
□Applicable√NotapplicableNochangesofactualcontrollersfortheCompanyinreportingperiod.PropertyrightandcontrollingrelationshipbetweentheactualcontrollerandtheCompanyisasfollow:
ActualcontrollercontrollingtheCompanybyentrustorotherassetsmanagement
□Applicable√Notapplicable
4.Thetotalnumberofsharespledgedbycontrollingshareholdersorthefirstmajorityshareholderanditspersonsactinginconcertaccountsfor80%ofthesharesheldbythem
□Applicable√Notapplicable
5.Particularsaboutotherlegalpersonshareholderswithover10%sharesheld
□Applicable√Notapplicable
6.Limitationandreducingtheholdingsofsharesofcontrollingshareholders,actualcontrollers,restructuringsideandothercommitmentsubjects
□Applicable√Notapplicable
IV.Thespecificimplementationofsharesbuy-backduringthereportingperiod
Implementationprogressofsharesbuy-back
□Applicable√NotapplicableImplementationprogressofthereductionofrepurchasessharesbycentralizedbidding
□Applicable√Notapplicable
SectionVIII.PreferredStock
□Applicable√NotapplicableTheCompanyhadnopreferredstockinthePeriod.
SectionIX.Bonds
□Applicable√Notapplicable
SectionX.FinancialReport
AUDITOR’SREPORTErnst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.TotheshareholdersofChinaNationalAccordMedicinesCorporationLtd.(I)Opinion
WehaveauditedthefinancialstatementsofChinaNationalAccordMedicinesCorporationLtd.(the“Company”),whichcomprisetheconsolidatedandthecompanybalancesheetsasat31December2021,andtheconsolidatedandthecompanyincomestatements,theconsolidatedandthecompanystatementsofchangesinequityandtheconsolidatedandthecompanystatementsofcashflowsfortheyearthenended,andnotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandthecompanyfinancialpositionasat31December2021,andtheconsolidatedandthecompanyfinancialperformanceandcashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises(“ASBEs”).
(II)Basisforopinion
WeconductedourauditinaccordancewithChinaStandardsonAuditing(“CSAs”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Code”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
(III)Keyauditmatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Foreachmatterbelow,ourdescriptionofhowourauditaddressedthematterisprovidedinthatcontext.WehavefulfilledtheresponsibilitiesdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancialstatementssectionofourreport,includinginrelationtothesematters.Accordingly,ourauditincludedtheperformanceofproceduresdesignedtorespondtoourassessmentoftherisksofmaterialmisstatementofthefinancialstatements.Theresultsofourauditprocedures,includingtheproceduresperformedtoaddressthemattersbelow,providethebasisforourauditopinionontheaccompanyingfinancialstatements.
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(III)Keyauditmatters(continued)
Keyauditmatter
| Keyauditmatter | Howourauditaddressedthekeyauditmatter |
| Impairmentofgoodwill | |
| ThecarryingvalueofgoodwillamountedtoRMB2,775,645,585.32asat31December2021andwasallocatedtotheCompany’sassetgroupsunderpharmaceuticaldistributionandpharmaceuticalretail.UnderASBEs,themanagementoftheCompanyisrequiredtoperformtheimpairmenttestforgoodwillannually.Theimpairmenttestisbasedontherecoverableamountsoftherespectiveassetgroupstowhichthegoodwillisallocated.Therecoverableamountsoftheassetgroupsaredeterminedaccordingtothepresentvalueoftheassetgroups'expectedfuturecashflows.Astheimpairmenttestprocessofgoodwillinvolvessignificantjudgementofthemanagement,thetestresultshighlydependonthemanagement'sestimatesandassumptions,suchastheestimationoftheforecastedfuturecashflowsandthediscountrateoftheassetgroups.Theseestimatesareaffectedbythemanagement'sjudgementonthefuturemarketandeconomicenvironment.Usingdifferentestimatesandassumptionswillsignificantlyimpacttherecoverablevalueoftheassetgroupsinwhichthegoodwillislocated.Therefore,thismatterwasimportanttoouraudit,andwedetermineditasakeyauditmatter.TheCompany’sdisclosuresaboutimpairmentofgoodwillareincludedinNoteIII(17.Impairmentofassets,33.Significantaccountingjudgementsandestimates)andNoteV(18.Goodwill)totheconsolidatedfinancialstatements. | Theproceduresperformedtoaddressthismatterareasfollows:1)Performingwalk-throughtestingintheprocessrelatedtogoodwillandcontroltestingonidentifiedkeycontrolpoints;2)Involvinginternalevaluationexpertstoassistinevaluatingthegoodwillimpairmentmethodandforecastedkeyparametersadoptedbymanagementintheimpairmenttest,especiallythediscountrateandperpetualgrowthrate;3)Re-examiningthesalesrevenueandoperatingresultsofthefutureyearsadoptedinthecashflowforecast,comparingwiththehistoricaloperatingresultsoftherelatedassetgroups,especiallythefuturesalesgrowthrate,expectedgrossprofitmargin,relatedexpenses,etc.,andevaluatingtheanalysesmadebythemanagementontheimpactoftheCOVID-19epidemic;4)Performingsensitivitytestingonandanalysingkeyassumptionsusedinimpairmenttesting;and5)Re-examiningthesufficiencyofmanagement'sdisclosureregardinggoodwill. |
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(III)Keyauditmatters(continued)
Keyauditmatter
| Keyauditmatter | Howourauditaddressedthekeyauditmatter |
| Impairmentofaccountsreceivable | |
| MajorclientsoftheCompanyaremedicalestablishments,pharmacychainstores,monomerdrugstores,communitymedicalservicecentres,downstreamdistributioncompanies,etc.Asat31December2021,thecarryingvalueofaccountsreceivableintheconsolidatedfinancialstatementsoftheCompanywasRMB15,964,603,345.91.Themanagementclassifiestheaccountsreceivableintodifferentcombinationsofcreditriskcharacteristicswhileconsideringthefactorssuchasthecustomertype,creditperiodandcollectionhistory.Foreachcategoryofcombinationsofcreditriskcharacteristics,themanagementadoptstheexpectedcreditlossmodeltoestimateandmakeprovisionforbaddebts.Management'sestimationoftheexpectedcreditlosstakesintoaccountallreasonableandevidence-basedinformation,includingthecustomer'shistoricaldefaultrateandotherspecificfactors(suchasthecustomertype,collectionhistoryandbaddebtwrite-offs),aswellasforward-lookinginformationincombinationwithfactorssuchastheexpectedmacroeconomicenvironment.Inthemeantime,themanagementpaysattentiontothecollectionofaccountsreceivable,especiallyindividuallysignificantaccountsreceivableorlong-agedaccountsreceivabletoidentifyadditionalsignsofdefaultorimpairmentanddeterminewhetheradditionalbaddebtprovisionisrequired. | Theproceduresperformedtoaddressthismatterareasfollows:1)Realisingandtestingmanagement’sinternalcontrolthatrelatedtotheimpairmentofaccountsreceivable;2)Re-examiningandevaluatingthe"ExpectedCreditLossModel"usedbythemanagementtoestimatebaddebtsofaccountsreceivable,includingthemanagement'sdivisionofdifferentcombinationsofcreditriskcharacteristicsofaccountsreceivable,theestimationoftheexpectedcreditlossonaccountsreceivableforcombinationsofcreditriskcharacteristics,andhistoricalandotherforward-lookinginformationusedintheestimation.Re-examinedthemanagement'sassessmentoftheimpactofCOVID-19epidemiconthecreditriskofcustomers;3)Discussingwiththemanagementregardingtherecoverabilityofindividuallysignificantaccountsreceivableorlong-agedaccountsreceivableandevaluatingtheadequacyofprovisionforbaddebts;and4)Re-examiningthesufficiencyofthemanagement’sdisclosurerelatedtoaccountsreceivable. |
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(III)Keyauditmatters(continued)
Keyauditmatter
| Keyauditmatter | Howourauditaddressedthekeyauditmatter |
| Impairmentofaccountsreceivable(Continued) | |
| Theclassificationofdifferentcategoriesofcombinationsofcreditriskcharacteristicsandtheestimationoftheexpectedcreditlossrateofaccountsreceivable,involvesignificantmanagement’sjudgementandestimation,withgreatestimationuncertainty,andthesettingofvariousparametersbasedonstatisticsandanalysisoftherelativelycomplexhistoricaldata.Therefore,thismatterwasimportanttoouraudit,andwedetermineditasakeyauditmatter.TheCompany’sdisclosuresaboutimpairmentofaccountsreceivableareincludedinNoteIII(8.Financialinstruments,33.Significantaccountingjudgementsandestimates)andNoteV(3.Accountsreceivable)totheconsolidatedfinancialstatements. | |
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(IV)Otherinformation
ThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,otherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.(V)ResponsibilitiesofthemanagementandthosechargedwithgovernanceforthefinancialstatementsThemanagementoftheCompanyisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithASBEs,andfordesigning,implementingandmaintainingsuchinternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationoffinancialstatementstobefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,managementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccounting,unlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperationsorhasnorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(VI)Auditor’sresponsibilitiesfortheauditofthefinancialstatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandaregenerallyconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:
(1)Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraud
orerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditprocedures
thatareappropriateinthecircumstances.
(3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccounting
estimatesandrelateddisclosuresmadebythemanagement.
(4)Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,
basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthe
disclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
(6)Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesor
businessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Weareresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainsolelyresponsibleforourauditopinion.
AUDITOR’SREPORT(Continued)
Ernst&YoungHuaMing(2022)ShenZiNo.61295118_H01
ChinaNationalAccordMedicinesCorporationLtd.(VI)Auditor’sresponsibilitiesfortheauditofthefinancialstatements(continued)Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependenceandtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Ernst&YoungHuaMingLLPChineseCertifiedPublicAccountant:DengDongMei
(Engagementpartner)
ChineseCertifiedPublicAccountant:LiYuanFenBeijing,thePeople’sRepublicofChina28March2022
ImportantNoticeThisauditor’sreportisanEnglishtranslationoftheauditor’sreportfortheauditengagementswhichadoptCSAs.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET31December2021ExpressedinRenminbiYuan
ASSETS
| ASSETS | NoteV | 31December2021 | 31December2020 |
Currentassets
| Currentassets | |||
| Cashandbankbalances | 1 | 5,126,159,080.94 | 5,998,204,295.87 |
| Notesreceivable | 2 | 680,196,380.57 | 622,115,477.04 |
| Accountsreceivable | 3 | 15,964,603,345.91 | 13,799,971,014.22 |
| Receivablesfinancing | 4 | 1,027,226,940.21 | 1,404,987,700.38 |
| Advancestosuppliers | 5 | 520,930,545.31 | 480,313,574.71 |
| Otherreceivables | 6 | 718,089,129.10 | 535,228,747.69 |
| Inventories | 7 | 7,621,541,595.08 | 6,285,010,674.46 |
| Contractassets | 8 | 29,061,159.52 | 15,177,731.64 |
| Othercurrentassets | 9 | 160,607,355.66 | 121,082,863.45 |
Totalcurrentassets
| Totalcurrentassets | 31,848,415,532.30 | 29,262,092,079.46 |
Non-currentassets
| Non-currentassets | |||
| Long-termequityinvestments | 10 | 2,459,832,546.74 | 2,287,019,627.99 |
| Otherequityinstrumentinvestment | 11 | 62,488,312.99 | 99,488,340.28 |
| Othernon-currentfinancialassets | 12 | 135,974,908.51 | 120,972,350.24 |
| Investmentproperties | 13 | 113,981,497.23 | 127,444,379.94 |
| Fixedassets | 14 | 868,626,258.43 | 854,191,083.27 |
| Constructioninprogress | 15 | 49,849,506.70 | 46,631,190.23 |
| Right-of-useassets | 16 | 2,575,240,340.00 | 2,356,952,392.99 |
| Intangibleassets | 17 | 669,926,562.82 | 734,345,179.40 |
| Goodwill | 18 | 2,775,645,585.32 | 2,747,375,281.11 |
| Long-termprepaidexpenses | 19 | 633,975,441.76 | 457,705,276.09 |
| Deferredtaxassets | 20 | 129,740,169.77 | 92,118,767.81 |
| Othernon-currentassets | 21 | 459,985,769.24 | 408,197,522.84 |
Totalnon-currentassets
| Totalnon-currentassets | 10,935,266,899.51 | 10,332,441,392.19 |
Totalassets
| Totalassets | 42,783,682,431.81 | 39,594,533,471.65 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET(CONTINUED)31December2021ExpressedinRenminbiYuan
LIABILITIESANDEQUITY
| LIABILITIESANDEQUITY | NoteV | 31December2021 | 31December2020 |
Currentliabilities
| Currentliabilities | |||
| Short-termborrowings | 22 | 1,930,467,146.38 | 1,612,187,020.12 |
| Notespayable | 23 | 7,660,216,823.68 | 7,520,165,274.69 |
| Accountspayable | 24 | 9,057,718,968.14 | 7,697,451,142.50 |
| Receiptsinadvance | 25 | 19,289,567.44 | 12,352,466.64 |
| Contractliabilities | 26 | 431,303,231.37 | 368,600,357.14 |
| Employeebenefitspayable | 27 | 340,197,125.33 | 357,212,047.10 |
| Taxpayable | 28 | 337,164,080.19 | 316,867,149.16 |
| Otherpayables | 29 | 1,714,746,986.46 | 1,599,166,881.14 |
| Non-currentliabilitiesduewithinoneyear | 30 | 848,328,648.14 | 748,732,059.89 |
| Othercurrentliabilities | 31 | 39,585,469.65 | 24,787,078.55 |
Totalcurrentliabilities
| Totalcurrentliabilities | 22,379,018,046.78 | 20,257,521,476.93 |
Non-currentliabilities
| Non-currentliabilities | |||
| Long-termborrowings | 32 | 71,637,173.89 | 31,637,173.89 |
| Leaseliabilities | 33 | 1,375,427,877.28 | 1,303,054,163.90 |
| Long-termpayables | 34 | 6,938,189.00 | 6,938,189.00 |
| Long-termemployeebenefitspayable | 35 | 1,202,000.00 | 1,319,000.00 |
| Provisions | 36 | - | 68,808,166.79 |
| Deferredincome | 37 | 86,917,051.78 | 89,843,583.37 |
| Deferredtaxliabilities | 20 | 175,948,328.93 | 205,921,408.66 |
| Othernon-currentliabilities | 38 | 664,381,065.65 | 740,862,989.59 |
Totalnon-currentliabilities
| Totalnon-currentliabilities | 2,382,451,686.53 | 2,448,384,675.20 |
Totalliabilities
| Totalliabilities | 24,761,469,733.31 | 22,705,906,152.13 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDBALANCESHEET(CONTINUED)31December2021ExpressedinRenminbiYuan
LIABILITIESANDEQUITY
| LIABILITIESANDEQUITY | NoteV | 31December2021 | 31December2020 |
Equity
| Equity | |||
| Sharecapital | 39 | 428,126,983.00 | 428,126,983.00 |
| Capitalsurplus | 40 | 4,371,802,107.43 | 4,372,504,053.72 |
| Othercomprehensiveincome | 41 | 21,874,198.36 | 38,483,017.72 |
| Surplusreserves | 42 | 214,063,491.50 | 214,063,491.50 |
| Retainedearnings | 43 | 9,889,071,272.21 | 8,895,145,106.39 |
Totalequityattributabletoownersof
theparent
| Totalequityattributabletoownersoftheparent | 14,924,938,052.50 | 13,948,322,652.33 | |
| Non-controllinginterests | 3,097,274,646.00 | 2,940,304,667.19 |
Totalequity
| Totalequity | 18,022,212,698.50 | 16,888,627,319.52 |
Totalliabilitiesandequity
| Totalliabilitiesandequity | 42,783,682,431.81 | 39,594,533,471.65 |
Thefinancialstatementshavebeensignedby:
Legalrepresentative:Financialcontroller:HeadofAccountingDepartment:
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENTYearended31December2021ExpressedinRenminbiYuan
NoteV
| NoteV | 2021 | 2020 |
Operatingrevenue
| Operatingrevenue | 44 | 68,357,809,571.99 | 59,649,455,012.03 |
| Less:Operatingcosts | 44 | 60,339,298,052.24 | 52,591,767,464.37 |
| Taxesandsurcharges | 45 | 169,467,568.27 | 154,631,447.20 |
| Sellingexpenses | 46 | 4,752,862,965.09 | 3,943,134,095.75 |
| Administrativeexpenses | 47 | 1,045,635,601.17 | 1,008,178,815.78 |
| Financecosts | 48 | 212,482,801.90 | 119,855,169.85 |
| Including:Interestexpense | 288,038,760.87 | 258,189,163.79 | |
| Interestincome | 74,297,769.23 | 136,455,990.10 | |
| Add:Otherincome | 49 | 103,418,063.10 | 72,363,808.19 |
| Investmentincome | 50 | 292,380,503.40 | 283,951,956.10 |
| Including:Investmentincomefromassociates | 333,397,116.38 | 354,345,705.65 | |
| Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (47,404,044.48) | (76,142,835.36) | |
| Creditimpairmentlosses | 51 | (42,790,399.76) | (25,975,320.08) |
| Impairmentlosses | 52 | (242,904,866.51) | (5,179,285.75) |
| Gainondisposalofassets | 53 | 4,245,372.77 | 6,791,962.50 |
Operatingprofits
| Operatingprofits | 1,952,411,256.32 | 2,163,841,140.04 | |
| Add:Non-operatingincome | 54 | 36,364,721.36 | 17,660,920.58 |
| Less:Non-operatingexpenses | 55 | 13,923,128.14 | 24,265,611.84 |
Totalprofit
| Totalprofit | 1,974,852,849.54 | 2,157,236,448.78 | |
| Less:Incometaxexpenses | 58 | 447,210,654.67 | 435,940,050.06 |
Netprofit
| Netprofit | 1,527,642,194.87 | 1,721,296,398.72 |
Netprofitclassifiedbycontinuingoperations
| Netprofitclassifiedbycontinuingoperations | |||
| Profitorlossfromcontinuingoperations | 1,527,642,194.87 | 1,721,296,398.72 |
Netprofitclassifiedbyattributionofownership
| Netprofitclassifiedbyattributionofownership | |||
| Netprofitattributabletoownersoftheparent | 1,336,427,752.22 | 1,401,892,593.23 | |
| Non-controllinginterests | 191,214,442.65 | 319,403,805.49 |
Othercomprehensiveincome,netoftax
| Othercomprehensiveincome,netoftax | (27,708,827.55) | (12,394,161.92) |
Othercomprehensiveincome,netoftax,attributabletoownersofthe
parent,
| Othercomprehensiveincome,netoftax,attributabletoownersoftheparent, | 41 | (16,608,819.36) | (7,434,325.05) |
Othercomprehensiveincomethatwillnotbereclassifiedtoprofitor
loss
| Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | |||
| Changeinthefairvalueofotherequityinvestments | (16,650,012.28) | (7,439,657.92) |
Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | 41,192.92 | 5,332.87 |
Othercomprehensiveincome,netoftax,attributabletonon-
controllinginterests
| Othercomprehensiveincome,netoftax,attributabletonon-controllinginterests | 41 | (11,100,008.19) | (4,959,836.87) |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDINCOMESTATEMENT(CONTINUED)Yearended31December2021ExpressedinRenminbiYuan
NoteV
| NoteV | 2021 | 2020 |
Totalcomprehensiveincome
| Totalcomprehensiveincome | 1,499,933,367.32 | 1,708,902,236.80 | |
| Including: | |||
| Totalcomprehensiveincomeattributabletoownersoftheparent | 1,319,818,932.86 | 1,394,458,268.18 | |
| Totalcomprehensiveincomeattributabletonon-controllinginterests | 180,114,434.46 | 314,443,968.62 |
Earningspershare
| Earningspershare | 59 | ||
| Basicearningspershare | 3.12 | 3.27 | |
| Dilutedearningspershare | 3.12 | 3.27 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITYYearended31December2021ExpressedinRenminbiYuan
| 2021 | Attributabletoownersoftheparent | |||||||
| Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Subtotal | Non-controllinginterests | Totalequity | |
I.Balanceatendofprioryear
| I.Balanceatendofprioryear | 428,126,983.00 | 4,372,504,053.72 | 38,483,017.72 | 214,063,491.50 | 8,895,145,106.39 | 13,948,322,652.33 | 2,940,304,667.19 | 16,888,627,319.52 |
II.Changesfortheyear
| II.Changesfortheyear | - | (701,946.29) | (16,608,819.36) | - | 993,926,165.82 | 976,615,400.17 | 156,969,978.81 | 1,133,585,378.98 |
| (1)Totalcomprehensiveincome | - | - | (16,608,819.36) | - | 1,336,427,752.22 | 1,319,818,932.86 | 180,114,434.46 | 1,499,933,367.32 |
| (2)Owners’contributionsandreductionincapital | - | (701,946.29) | - | - | - | (701,946.29) | 66,531,116.93 | 65,829,170.64 |
| 1.Capitalcontributionsbyowners | - | - | - | - | - | - | 26,306,656.30 | 26,306,656.30 |
| 2.Businesscombinationinvolvingentitiesnotundercommoncontrol | - | - | - | - | - | - | 40,224,460.63 | 40,224,460.63 |
| 3.Others | - | (701,946.29) | - | - | - | (701,946.29) | - | (701,946.29) |
| (3)Profitdistribution | - | - | - | - | (342,501,586.40) | (342,501,586.40) | (89,675,572.58) | (432,177,158.98) |
| 1.Distributiontoequityowners | - | - | - | - | (342,501,586.40) | (342,501,586.40) | (89,675,572.58) | (432,177,158.98) |
III..Balanceatendofyear
| III..Balanceatendofyear | 428,126,983.00 | 4,371,802,107.43 | 21,874,198.36 | 214,063,491.50 | 9,889,071,272.21 | 14,924,938,052.50 | 3,097,274,646.00 | 18,022,212,698.50 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY(CONTINUED)Yearended31December2021ExpressedinRenminbiYuan
| 2020 | Attributabletoownersoftheparent | |||||||
| Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Subtotal | Non-controllinginterests | Totalequity | |
I.Balanceatendofprioryear
| I.Balanceatendofprioryear | 428,126,983.00 | 4,363,007,511.57 | 45,917,342.77 | 214,063,491.50 | 7,755,295,537.08 | 12,806,410,865.92 | 2,553,426,974.31 | 15,359,837,840.23 |
| Add:Businesscombinationinvolvingentitiesundercommoncontrol | - | 107,759,447.87 | - | - | (3,029,877.91) | 104,729,569.96 | 109,412,866.52 | 214,142,436.48 |
II.Balanceatbeginningofyear
| II.Balanceatbeginningofyear | 428,126,983.00 | 4,470,766,959.44 | 45,917,342.77 | 214,063,491.50 | 7,752,265,659.17 | 12,911,140,435.88 | 2,662,839,840.83 | 15,573,980,276.71 |
III.Changesfortheyear
| III.Changesfortheyear | - | (98,262,905.72) | (7,434,325.05) | - | 1,142,879,447.22 | 1,037,182,216.45 | 277,464,826.36 | 1,314,647,042.81 |
| (1)Totalcomprehensiveincome | - | - | (7,434,325.05) | - | 1,401,892,593.23 | 1,394,458,268.18 | 314,443,968.62 | 1,708,902,236.80 |
| (2)Owners’contributionsandreductionincapital | - | (98,262,905.72) | - | - | (2,136,956.21) | (100,399,861.93) | 28,361,747.23 | (72,038,114.70) |
| 1.Capitalcontributionsbyowners | - | - | - | - | - | - | 5,700,000.00 | 5,700,000.00 |
| 2.Businesscombinationinvolvingentitiesundercommoncontrol | (97,869,029.99) | (97,869,029.99) | (65,246,019.99) | (163,115,049.98) | ||||
| 3.Businesscombinationinvolvingentitiesnotundercommoncontrol | 87,907,767.22 | 87,907,767.22 | ||||||
| 4.Others | - | (393,875.73) | - | - | (2,136,956.21) | (2,530,831.94) | (2,530,831.94) | |
| (3)Profitdistribution | - | - | - | - | (256,876,189.80) | (256,876,189.80) | (65,340,889.49) | (322,217,079.29) |
| 1.Distributiontoequityowners | - | - | - | - | (256,876,189.80) | (256,876,189.80) | (65,340,889.49) | (322,217,079.29) |
IV.Balanceatendofyear
| IV.Balanceatendofyear | 428,126,983.00 | 4,372,504,053.72 | 38,483,017.72 | 214,063,491.50 | 8,895,145,106.39 | 13,948,322,652.33 | 2,940,304,667.19 | 16,888,627,319.52 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCASHFLOWSYearended31December2021ExpressedinRenminbiYuan
NoteV
| NoteV | 2021 | 2020 |
1.CASHFLOWSFROMOPERATINGACTIVITIES
1.CASHFLOWSFROMOPERATINGACTIVITIESCashreceiptsfromthesaleofgoodsandthe
renderingofservices
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 71,597,279,035.48 | 61,701,348,065.17 | |
| Receiptsoftaxesandsurchargesrefunds | 13,542,582.57 | 13,720,143.80 | |
| Othercashreceiptsrelatingtooperatingactivities | 60 | 724,985,756.21 | 1,697,383,795.18 |
Totalcashinflowsfromoperatingactivities
| Totalcashinflowsfromoperatingactivities | 72,335,807,374.26 | 63,412,452,004.15 |
Cashpaymentsforgoodsandservices
| Cashpaymentsforgoodsandservices | 63,898,617,747.51 | 56,018,201,099.73 | |
| Cashpaymentstoandonbehalfofemployees | 3,369,629,673.47 | 2,708,413,782.73 | |
| Paymentsofalltypesoftaxesandsurcharges | 1,577,115,837.20 | 1,512,079,139.15 | |
| Othercashpaymentsrelatingtooperatingactivities | 60 | 1,835,263,139.21 | 1,671,011,384.07 |
Totalcashoutflowsfromoperatingactivities
| Totalcashoutflowsfromoperatingactivities | 70,680,626,397.39 | 61,909,705,405.68 |
Netcashflowsfromoperatingactivities
| Netcashflowsfromoperatingactivities | 61 | 1,655,180,976.87 | 1,502,746,598.47 |
2.CASHFLOWSFROMINVESTINGACTIVITIES
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments
| Cashreceiptsfromreturnsofinvestments | 2,997,441.73 | 19,027,649.76 | |
| Cashreceivedfrominvestmentincome | 169,110,875.76 | 160,164,584.49 | |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 1,016,257.65 | 8,570,072.79 | |
| Othercashreceiptsrelatingtoinvestingactivities | 60 | 54,984.60 | 24,051,674.67 |
Totalcashinflowsfrominvestingactivities
| Totalcashinflowsfrominvestingactivities | 173,179,559.74 | 211,813,981.71 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.CONSOLIDATEDSTATEMENTOFCASHFLOWS(CONTINUED)Yearended31December2021ExpressedinRenminbiYuan
NoteV
| NoteV | 2021 | 2020 |
2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)
2.CASHFLOWSFROMINVESTINGACTIVITIES(Continued)Cashpaymentstoacquirefixedassets,intangibleassets
andotherlong-termassets
| Cashpaymentstoacquirefixedassets,intangibleassetsandotherlong-termassets | 370,430,625.89 | 293,826,061.63 | |
| Cashpaymentsforinvestments | 147,024,601.44 | 50,117,666.41 | |
| Netcashpaymentsforacquisitionofsubsidiariesandotherbusinessunits | 61 | 109,950,637.41 | 2,646,097,210.38 |
| Othercashpaymentsrelatingtoinvestingactivities | 60 | 1,305,765.00 | 5,002,197.26 |
Totalcashoutflowsfrominvestingactivities
| Totalcashoutflowsfrominvestingactivities | 628,711,629.74 | 2,995,043,135.68 |
Netcashflowsfrominvestingactivities
| Netcashflowsfrominvestingactivities | (455,532,070.00) | (2,783,229,153.97) |
3.CASHFLOWSFROMFINANCINGACTIVITIES
3.CASHFLOWSFROMFINANCINGACTIVITIESCashproceedsfrominvestmentsbyothers
| Cashproceedsfrominvestmentsbyothers | 21,206,123.00 | 5,700,000.00 | |
| Including:Cashreceiptsfromcapitalcontributionsfromnon-controllinginterestsofsubsidiaries | 21,206,123.00 | 5,700,000.00 | |
| Cashreceiptsfromborrowings | 932,684,894.52 | 801,520,037.57 | |
| Othercashreceiptsrelatingtofinancingactivities | 60 | 101,880,912.41 | 359,332,475.63 |
Totalcashinflowsfromfinancingactivities
| Totalcashinflowsfromfinancingactivities | 1,055,771,929.93 | 1,166,552,513.20 |
Cashrepaymentsfordebts
| Cashrepaymentsfordebts | 1,007,061,372.10 | 427,347,200.00 | |
| Cashpaymentsfordistributionofdividendsorprofitandinterestexpenses | 672,562,452.24 | 613,704,450.41 | |
| Including:Dividendsorprofitpaidtonon-controllingshareholdersofsubsidiaries | 62,024,277.21 | 63,799,218.94 | |
| Othercashpaymentsrelatingtofinancingactivities | 60 | 1,247,788,628.71 | 1,865,923,680.60 |
Totalcashoutflowsfromfinancingactivities
| Totalcashoutflowsfromfinancingactivities | 2,927,412,453.05 | 2,906,975,331.01 |
Netcashflowsfromfinancingactivities
| Netcashflowsfromfinancingactivities | (1,871,640,523.12) | (1,740,422,817.81) |
4.EFFECTOFFOREIGNEXCHANGERATECHANGESON
CASHANDCASHEQUIVALENTS
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | 390,580.61 | (52,538.86) |
5.NETDECREASEINCASHANDCASH
EQUIVALENTS
| 5.NETDECREASEINCASHANDCASHEQUIVALENTS | (671,601,035.64) | (3,020,957,912.17) | |
| Add:Cashandcashequivalentsatbeginningoftheyear | 5,405,113,257.99 | 8,426,071,170.16 |
6.CASHANDCASHEQUIVALENTSATENDOFYEAR
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 61 | 4,733,512,222.35 | 5,405,113,257.99 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET31December2021ExpressedinRenminbiYuan
ASSETS
| ASSETS | NoteXIV | 31December2021 | 31December2020 |
Currentassets
| Currentassets | |||
| Cashandbankbalances | 3,098,512,437.04 | 3,020,909,473.71 | |
| Notesreceivable | 1 | 12,015,516.75 | 30,984,449.44 |
| Accountsreceivable | 2 | 592,400,308.87 | 609,575,301.13 |
| Receivablesfinancing | 3 | - | 30,248,631.32 |
| Advancestosuppliers | 11,762,344.40 | 6,722,204.59 | |
| Otherreceivables | 4 | 5,003,805,208.01 | 3,562,309,346.07 |
| Inventories | 226,490,178.26 | 172,275,777.63 | |
| Contractassets | 139,021.45 | 139,154.54 | |
| Othercurrentassets | 39,482.38 | 39,482.38 |
Totalcurrentassets
| Totalcurrentassets | 8,945,164,497.16 | 7,433,203,820.81 |
Non-currentassets
| Non-currentassets | |||
| Long-termequityinvestments | 5 | 8,044,896,142.86 | 7,873,668,245.16 |
| Othernon-currentfinancialassets | 135,974,908.51 | 120,972,350.24 | |
| Investmentproperties | 951,035.32 | 1,452,132.04 | |
| Fixedassets | 12,824,750.51 | 13,279,902.76 | |
| Right-of-useassets | 4,010,087.19 | 5,142,755.88 | |
| Intangibleassets | 5,682,864.94 | 4,622,268.00 | |
| Long-termprepaidexpenses | 6,438,007.85 | 4,335,802.92 | |
| Deferredtaxassets | 10,017,097.43 | 9,025,057.52 | |
| Othernon-currentassets | 26,652,335.10 | 12,967,715.50 |
Totalnon-currentassets
| Totalnon-currentassets | 8,247,447,229.71 | 8,045,466,230.02 |
Totalassets
| Totalassets | 17,192,611,726.87 | 15,478,670,050.83 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET(CONTINUED)31December2021ExpressedinRenminbiYuan
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
LIABILITIESANDSHAREHOLDERS’EQUITY
| LIABILITIESANDSHAREHOLDERS’EQUITY | NoteXIV | 31December2021 | 31December2020 |
Currentliabilities
| Currentliabilities | |||
| Short-termborrowings | 555,138,734.59 | 157,892,942.24 | |
| Notespayable | 596,268,853.45 | 756,364,719.49 | |
| Accountspayable | 480,059,192.74 | 407,275,713.49 | |
| Contractliabilities | 3,231,968.16 | 1,807,562.61 | |
| Employeebenefitspayable | 36,339,296.20 | 36,672,344.48 | |
| Taxpayables | 14,768,716.45 | 13,975,905.04 | |
| Otherpayables | 3,832,642,249.25 | 3,167,152,583.28 | |
| Non-currentliabilitiesduewithinoneyear | 1,112,137.32 | 1,056,120.58 | |
| Othercurrentliabilities | 837,570.27 | 636,200.63 |
Totalcurrentliabilities
| Totalcurrentliabilities | 5,520,398,718.43 | 4,542,834,091.84 |
Non-currentliabilities
| Non-currentliabilities | |||
| Long-termborrowings | 31,637,173.89 | 31,637,173.89 | |
| Leaseliabilities | 3,343,830.66 | 4,455,967.97 | |
| Long-termpayables | 800,000.00 | 800,000.00 | |
| Deferredincome | 392,720.10 | 827,658.18 | |
| Othernon-currentliabilities | 26,986,064.76 | 11,042.52 |
Totalnon-currentliabilities
| Totalnon-currentliabilities | 63,159,789.41 | 37,731,842.56 |
Totalliabilities
| Totalliabilities | 5,583,558,507.84 | 4,580,565,934.40 |
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYBALANCESHEET(CONTINUED)31December2021ExpressedinRenminbiYuan
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
LIABILITIESANDSHAREHOLDERS’EQUITY
| LIABILITIESANDSHAREHOLDERS’EQUITY | NoteXIV | 31December2021 | 31December2020 |
Shareholders’equity
| Shareholders’equity | |||
| Sharecapital | 428,126,983.00 | 428,126,983.00 | |
| Capitalsurplus | 4,467,289,485.30 | 4,467,991,431.59 | |
| Othercomprehensiveincome | (86,840.40) | (128,033.32) | |
| Surplusreserves | 214,063,491.50 | 214,063,491.50 | |
| Retainedearnings | 6,499,660,099.63 | 5,788,050,243.66 |
Totalshareholders’equity
| Totalshareholders’equity | 11,609,053,219.03 | 10,898,104,116.43 |
Totalliabilitiesandshareholders’equity
| Totalliabilitiesandshareholders’equity | 17,192,611,726.87 | 15,478,670,050.83 |
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYINCOMESTATEMENTYearended31December2021ExpressedinRenminbiYuan
NoteXIV
| NoteXIV | 2021 | 2020 |
Operatingrevenue
| Operatingrevenue | 6 | 4,229,561,647.31 | 3,853,659,001.12 |
| Less:Operatingcosts | 6 | 4,064,320,850.06 | 3,674,872,961.34 |
| Taxesandsurcharges | 5,552,059.25 | 6,565,048.14 | |
| Sellingexpenses | 55,048,780.46 | 67,202,266.56 | |
| Administrativeexpenses | 85,083,535.11 | 90,803,215.82 | |
| Financecosts | (114,327,284.10) | (89,275,535.72) | |
| Including:Interestexpense | 54,994,093.64 | 45,645,501.85 | |
| Including:Interestincome | 171,740,832.27 | 137,302,390.98 | |
| Add:Otherincome | 3,731,248.01 | 4,977,883.40 | |
| Investmentincome | 7 | 955,848,072.40 | 969,166,523.86 |
| Including:Investmentincomefromassociates | 333,164,462.64 | 353,352,207.87 | |
| Incomefromthederecognitionoffinancialassetsmeasuredatamortisedcost | (206,333.75) | (1,796,917.66) | |
| Creditimpairmentlosses | (3,427,601.84) | (965,769.74) | |
| Impairmentlosses | (1,274,168.04) | (500,485.27) | |
| Gainondisposalofassets | 119,379.12 | (165.97) |
Operatingprofits
| Operatingprofits | 1,088,880,636.18 | 1,076,169,031.26 | |
| Add:Non-operatingincome | 649,755.23 | 1,925.53 | |
| Less:Non-operatingexpenses | 3,043,885.49 | 388,863.31 |
Totalprofit
| Totalprofit | 1,086,486,505.92 | 1,075,782,093.48 | |
| Less:Incometaxexpenses | 32,375,063.55 | 27,039,917.36 |
Netprofit
| Netprofit | 1,054,111,442.37 | 1,048,742,176.12 | |
| Including:Profitorlossfromcontinuingoperations | 1,054,111,442.37 | 1,048,742,176.12 |
Othercomprehensiveincome,netoftax
| Othercomprehensiveincome,netoftax | 41,192.92 | 5,332.87 |
Othercomprehensiveincomethatmaybe
reclassifiedtoprofitorloss
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | 41,192.92 | 5,332.87 |
Totalcomprehensiveincome
| Totalcomprehensiveincome | 1,054,152,635.29 | 1,048,747,508.99 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITYYearended31December2021ExpressedinRenminbiYuan
2021
| 2021 | Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Totalequity |
I.Balanceatendofprioryear
| I.Balanceatendofprioryear | 428,126,983.00 | 4,467,991,431.59 | (128,033.32) | 214,063,491.50 | 5,788,050,243.66 | 10,898,104,116.43 |
II.Changesfortheyear
| II.Changesfortheyear | - | (701,946.29) | 41,192.92 | - | 711,609,855.97 | 710,949,102.60 |
| (1)Totalcomprehensiveincome | - | - | 41,192.92 | - | 1,054,111,442.37 | 1,054,152,635.29 |
| (2)Owners’contributionsandreductionincapital | - | (701,946.29) | - | - | - | (701,946.29) |
| 1.Others | - | (701,946.29) | - | - | - | (701,946.29) |
| (3)Profitdistribution | - | - | - | - | (342,501,586.40) | (342,501,586.40) |
| 1.Distributiontoowners | - | - | - | - | (342,501,586.40) | (342,501,586.40) |
III.Balanceatendofyear
| III.Balanceatendofyear | 428,126,983.00 | 4,467,289,485.30 | (86,840.40) | 214,063,491.50 | 6,499,660,099.63 | 11,609,053,219.03 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCHANGESINEQUITY(CONTINUED)Yearended31December2021ExpressedinRenminbiYuan
2020
| 2020 | Sharecapital | Capitalsurplus | Othercomprehensiveincome | Surplusreserves | Retainedearnings | Totalequity |
I.Balanceatendofprioryear
| I.Balanceatendofprioryear | 428,126,983.00 | 4,468,385,307.32 | (133,366.19) | 214,063,491.50 | 4,996,184,257.34 | 10,106,626,672.97 |
II.Changesfortheyear
| II.Changesfortheyear | - | (393,875.73) | 5,332.87 | - | 791,865,986.32 | 791,477,443.46 |
| (1)Totalcomprehensiveincome | - | - | 5,332.87 | - | 1,048,742,176.12 | 1,048,747,508.99 |
| (2)Owners’contributionsandreductionincapital | - | (393,875.73) | - | - | - | (393,875.73) |
| 1.Others | - | (393,875.73) | - | - | - | (393,875.73) |
| (3)Profitdistribution | - | - | - | - | (256,876,189.80) | (256,876,189.80) |
| 1.Distributiontoowners | - | - | - | - | (256,876,189.80) | (256,876,189.80) |
III.Balanceatendofyear
| III.Balanceatendofyear | 428,126,983.00 | 4,467,991,431.59 | (128,033.32) | 214,063,491.50 | 5,788,050,243.66 | 10,898,104,116.43 |
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCASHFLOWSYearended31December2021ExpressedinRenminbiYuan
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
NoteXIV
| NoteXIV | 2021 | 2020 |
1.CASHFLOWSFROMOPERATINGACTIVITIES
1.CASHFLOWSFROMOPERATINGACTIVITIES
Cashreceiptsfromthesaleofgoodsandthe
renderingofservices
| Cashreceiptsfromthesaleofgoodsandtherenderingofservices | 4,482,924,175.09 | 4,009,125,652.17 | |
| Othercashreceiptsrelatingtooperatingactivities | 64,151,272.51 | 152,617,741.86 |
Totalcashinflowsfromoperatingactivities
| Totalcashinflowsfromoperatingactivities | 4,547,075,447.60 | 4,161,743,394.03 |
Cashpaymentsforgoodsandservices
| Cashpaymentsforgoodsandservices | 4,246,556,694.01 | 3,813,436,197.34 | |
| Cashpaymentstoandonbehalfofemployees | 95,803,718.56 | 94,005,053.76 | |
| Paymentsofalltypesoftaxesandsurcharges | 76,032,450.12 | 87,642,227.22 | |
| Othercashpaymentsrelatingtooperatingactivities | 28,369,766.73 | 69,706,005.74 |
Totalcashoutflowsfromoperatingactivities
| Totalcashoutflowsfromoperatingactivities | 4,446,762,629.42 | 4,064,789,484.06 |
Netcashflowsfromoperatingactivities
| Netcashflowsfromoperatingactivities | 100,312,818.18 | 96,953,909.97 |
2.CASHFLOWSFROMINVESTINGACTIVITIES
2.CASHFLOWSFROMINVESTINGACTIVITIESCashreceiptsfromreturnsofinvestments
| Cashreceiptsfromreturnsofinvestments | 2,997,441.73 | 32,664,096.76 | |
| Cashreceiptsfrominvestmentincome | 781,665,378.58 | 753,109,725.64 | |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 423,563.00 | 20,210.00 | |
| Othercashreceiptsrelatingtoinvestingactivities | 5,195,613,459.25 | 2,774,679,815.57 |
Totalcashinflowsfrominvestingactivities
| Totalcashinflowsfrominvestingactivities | 5,980,699,842.56 | 3,560,473,847.97 |
Cashpaidforacquisitionoffixedassets,
intangibleassetsandotherlong-termassets
| Cashpaidforacquisitionoffixedassets,intangibleassetsandotherlong-termassets | 7,415,164.06 | 13,691,557.76 | |
| Cashpaymentsforinvestments | 18,000,000.00 | - | |
| Othercashpaymentsrelatingtoinvestingactivities | 6,509,461,277.00 | 4,372,908,047.02 |
Totalcashoutflowsfrominvestingactivities
| Totalcashoutflowsfrominvestingactivities | 6,534,876,441.06 | 4,386,599,604.78 |
Netcashflowsfrominvestingactivities
| Netcashflowsfrominvestingactivities | (554,176,598.50) | (826,125,756.81) |
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.COMPANYSTATEMENTOFCASHFLOWS(CONTINUED)Yearended31December2021ExpressedinRenminbiYuan
Theaccompanyingnotesformanintegralpartofthesefinancialstatements.
NoteXIV
| NoteXIV | 2021 | 2020 |
3.CASHFLOWSFROMFINANCINGACTIVITIES
3.CASHFLOWSFROMFINANCINGACTIVITIESCashreceiptsfromborrowings
| Cashreceiptsfromborrowings | 280,000,000.00 | 63,864,821.52 | |
| Othercashreceiptsrelatingtofinancingactivities | 44,512,657,890.34 | 35,223,164,337.16 |
Totalcashinflowsfromfinancingactivities
| Totalcashinflowsfromfinancingactivities | 44,792,657,890.34 | 35,287,029,158.68 |
Cashrepaymentsfordebts
| Cashrepaymentsfordebts | 30,164,821.52 | 43,700,000.00 | |
| Cashpaymentsfordistributionofdividends,profitorinterestexpenses | 394,368,619.63 | 308,496,896.99 | |
| Othercashpaymentsrelatingtofinancingactivities | 43,837,048,286.15 | 34,079,032,358.66 |
Totalcashoutflowsfromfinancingactivities
| Totalcashoutflowsfromfinancingactivities | 44,261,581,727.30 | 34,431,229,255.65 |
Netcashflowsfromfinancingactivities
| Netcashflowsfromfinancingactivities | 531,076,163.04 | 855,799,903.03 |
4.EFFECTOFFOREIGNEXCHANGERATE
CHANGESONCASHANDCASHEQUIVALENTS
| 4.EFFECTOFFOREIGNEXCHANGERATECHANGESONCASHANDCASHEQUIVALENTS | 390,580.61 | (52,538.86) |
5.NETINCREASEINCASHANDCASH
EQUIVALENTS
| 5.NETINCREASEINCASHANDCASHEQUIVALENTS | 77,602,963.33 | 126,575,517.33 | |
| Add:Cashandcashequivalentsatbeginningoftheyear | 3,020,909,473.71 | 2,894,333,956.38 |
6.CASHANDCASHEQUIVALENTSATENDOF
YEAR
| 6.CASHANDCASHEQUIVALENTSATENDOFYEAR | 3,098,512,437.04 | 3,020,909,473.71 |
CHINANATIONALACCORDMEDICINESCORPORATIONLTD.NOTESTOFINANCIALSTATEMENTSYearended31December2021ExpressedinRenminbiYuan
IProfileoftheCompany
AsapprovedbythePeople’sGovernmentofShenzhen(SFBF(1993)No.356),ChinaNationalAccordMedicinesCorporationLtd.(hereinafterreferredtoasthe“theCompany”),formerlyknownasShenzhenHealthMineralWaterCorp.,Ltd.,wasregisteredasajointstockliabilitylimitedcompanyon1February1993throughstocktransformation.InMarch1993,withtheapprovalfromtheShenzhenBranchofthePeople’sBankofChina,theCompanyissued30millionAshares(including16.5millionpublicshares,3.5millionemployeesharesand10millioncorporationshares)and20millionBshares.Afterthisissuance,theCompany’ssharecapitalwasRMB105.00million.Throughconvertingcapitalsurplusintosharecapital,bonusissuesandissuanceofsharesforyears,thesharecapitaloftheCompanyincreasedto428.13millionasat31December2021.InNovember2000,theCompanyenteredintoanAssetExchangeAgreementwithShenzhenInvestmentManagementCompany,theoriginalmajorshareholderoftheCompany,toexchangealltheassetsandliabilitiesoftheCompanyasof31August2000forShenzhenInvestmentManagementCompany’s100%equityinterestsin11pharmaceuticalcompaniesandcertainpropertiesaswellas51%equityinterestsinShenzhenTefaModernComputerCo.,Ltd.TheaboveassetexchangeproposalwasapprovedbyshareholdersintheSecondExtraordinaryGeneralMeetingon29December2000.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),thenatureoftheseshareschangedfromstate-ownedstocktostate-ownedlegalentitystockandSinopharmGroupbecamethelargestshareholderoftheCompany.On14April2006,theCompany’sproposalonreformationofsegregatedstockswasapproved.TogainliquidityfortherestrictedstocksoftheCompany,theholdersoftherestrictedstocksoftheCompanyagreedtopaythefollowingconsideration:basedonthestockregistrationasof27April2006,theCompanyissuedbonusshareson28April2006attheratioof3sharestoevery10AsharestoliquidatedA-shareholderswhichwentpubliconthesameday.Afterthisbonusissue,thetotalnumberofsharesoftheCompanyremainedunchangedwithcorrespondingchangesinthecompositionofshareholdings.On14March2014,theCompanyissued74,482,543ordinaryshares(Ashares)throughthenon-publicoffering.TheparvaluepershareisRMB1.00yuan.Thesharesshallnotbetransferredwithin36monthssincetheissuedate.ThetotalnumberofsharesoftheCompanywas362,631,943sincethedateofissue.TheCompanyacquiredthecompaniesundercommoncontrol,includingSinopharmHoldingGuodaDrugstoreCo.,Ltd.(“GuodaDrugstore”),FoshanNanhaiMedicineGroupCo.,Ltd.(“FoshanNanhai”),GuangdongSouthPharmaceuticalForeignTradeCo.,Ltd.(“SouthPharma&Trade”)andSinopharmHoldingGuangdongDongFangUptodate&SpecialMedicinesCo.,Ltd.(“GuangdongUptodate&SpecialMedicines”)byissuingsharesandraisedsupportingfundsbyissuingsharestoPingAnAssetManagementCo.,Ltd.toacquirethenon-controllinginterestofSouthPharma&Trade.Theabovetransactionswerecompletedon31December2016,andtherelevantsharesweresuccessfullyissuedandlistedon5January2017.Afterwards,thetotalnumberofsharesoftheCompanyincreasedto428,126,983.
IProfileoftheCompany(Continued)
Asof31December2021,thetotalsharecapitalwas428,126,983.TheCompanyisregisteredwithShenzhenAdministrationforIndustry&Commerce.ItsUniformSocialCreditCodeis91440300192186267U.TheoperationperiodoftheCompanyisfrom2August1986tothelongterm.TheregisteredcapitaloftheCompanyisRMB428.13million.ThelegalrepresentativeoftheCompanyisLinZhaoxiong.TheapprovedscopeofbusinessoftheCompanyanditssubsidiaries(together“theGroup”)includes:thewholesaleofChineseherbalslices,traditionalChinesemedicinepreparations,bulkpharmaceuticaldrugs,chemicalpreparations,bulkantibioticdrugs,antibioticpreparations,biochemicaldrugs,biologicalproducts(includingvaccinesandinvitrodiagnosticreagentspsychotropicdrugsandpreparations,narcoticdrugs,toxicdrugsformedicaluse,proteinassimilationpreparationandpeptidehormones;thetradingofdietarysupplements;industrialinvestmentholding;domestictrade;materialsupplyandthemarketingindustry(otherthanspeciallicensing);thesaleofambulances;thetradingofsecond-classandthird-classmedicalequipment;projectinvestment;propertymanagementandtheleasingofself-ownedproperties;pharmacovigilanceandmedicalinformationconsulting;parkingoperation;logisticsandrelatedservices;thepackageagencybusiness;logisticdesign;importandexportservices(excludingprojectsthatareprohibitedbythecountry;andrestrictiveprojectshavetobeapprovedbeforeoperating).SubsidiariesconsolidatedinthefinancialstatementsforthecurrentyearandchangeintheconsolidationscopeareshowninNoteVI.TheGroup’sparentandultimateparentcompaniesareSinopharmGroupandChinaNationalPharmaceuticalGroupCorporation(“CNPGC”),respectively.ThesefinancialstatementswereauthorisedforissuebytheboardofdirectorsoftheCompanyon28March2022.IIBasisofpreparation
ThefinancialstatementswerepreparedinaccordancewiththeBasicStandardandspecificstandardsofAccountingStandardsforBusinessEnterprisesissuedbytheMinistryofFinanceandthespecificaccountingstandards,applicationguidance,interpretationandotherrelevantregulationsissuedoramendedthereafter(hereaftercollectivelyreferredtoas“AccountingStandardsforBusinessEnterprises”or“CAS”).Thesefinancialstatementsarepreparedonagoingconcernbasis.Exceptforcertainfinancialinstruments,thefinancialstatementshavebeenpreparedusingthehistoricalcostastheprincipleofmeasurement.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates
TheGroupdeterminesthespecificaccountingpoliciesandestimatesbasedonitsfeaturesofproductionandoperation,primarilycomprisingthemethodsofprovisionforexpectedcreditlossesonreceivables,valuationofinventories,depreciationoffixedassetsandamortisationofintangibleassets,themeasurementmodelofinvestmentproperties,recognitionandmeasurementofrevenue.
1.StatementofcompliancewithAccountingStandardsforBusinessEnterprises
ThefinancialstatementspresenttrulyandcompletelythefinancialpositionsoftheGroupandtheCompanyasat31December2021,andthefinancialperformanceandthecashflowsfortheyearthenendedinaccordancewithAccountingStandardsforBusinessEnterprises.
2.Accountingyear
TheGroup’saccountingyearbeginson1Januaryandendson31December.
3.Functionalcurrency
ThefunctionalcurrencyisRenminbi.TheCompany’sfunctionalandpresentationcurrencyisRenminbi(RMB).ThecurrencyunitisRMBYuanunlessotherwisestated.
4.Businesscombinations
Businesscombinationsareclassifiedintobusinesscombinationsinvolvingentitiesundercommoncontrolandbusinesscombinationsnotinvolvingentitiesundercommoncontrol.(a)Businesscombinationsinvolvingentitiesundercommoncontrol
Abusinesscombinationinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Inabusinesscombinationinvolvingentitiesundercommoncontrol,theentitythat,atthecombinationdate,obtainscontrolofanothercombiningentityistheabsorbingentity,whilethatothercombiningentityistheentitybeingabsorbed.Thecombinationdateisthedateonwhichtheabsorbingentityeffectivelyobtainscontrolontheentitybeingabsorbed.Assetsandliabilities(includinggoodwillarisingfromtheultimatecontrollingshareholder’sacquisitionofthepartybeingabsorbed)thatareobtainedbytheabsorbingpartyinabusinesscombinationshallbemeasuredattheircarryingamountsatthecombinationdateasrecordedbythepartybeingabsorbed.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortheaggregatefacevalueofsharesissuedasconsideration)shallbeadjustedtosharepremiumundercapitalsurplus.Ifthecapitalsurplusisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
4.Businesscombinations(Continued)(b)Businesscombinationsinvolvingenterprisesnotundercommoncontrol
Abusinesscombinationnotinvolvingentitiesundercommoncontrolisabusinesscombinationinwhichallofthecombiningentitiesarenotultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination.Inabusinesscombinationnotinvolvingentitiesundercommoncontrol,theentitythat,ontheacquisitiondate,obtainscontrolofanothercombiningentityistheacquirer,whilethatothercombiningentityistheacquiree.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.
5.Consolidatedfinancialstatements
Thescopeoftheconsolidatedfinancialstatements,whichincludethefinancialstatementsoftheCompanyandallofitssubsidiaries,isdeterminedonthebasisofcontrol.AsubsidiaryisanentitythatiscontrolledbytheCompany(suchasanenterprise,adeemedseparateentity,orastructuredentitycontrolledbytheCompany).
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
5.Consolidatedfinancialstatements(Continued)
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.
6.Cashandcashequivalents
CashcomprisestheGroup’scashonhandandbankdepositsthatcanbereadilywithdrawnondemand.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcash,andaresubjecttoaninsignificantriskofchangesinvalue.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
7.Foreigncurrencytranslation
ForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognisedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalisedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedatesofthetransactions.Foreigncurrencycashflowsaretranslatedusingthespotexchangeratesprevailingonthedatesofcashflows.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.
8.Financialinstruments
Financialinstrumentsarethecontractsthatformedthefinancialassetsofoneentity,andatthesametimeformedthefinancialliabilitiesorequityinstrumentsofotherentities.RecognitionandderecognitionoffinancialinstrumentsFinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.TheGroupderecognisesafinancialasset,partofafinancialassetorgroupoffinancialassets,i.e.,offsetfromtheaccountsandstatementoffinancialposition,ifeitherofthefollowingconditionsissatisfied:
(1)Thecontractualrightstothecashflowsfromthefinancialassetexpire;or
(2)Thecontractualrightstothecashflowsfromthefinancialassetaretransferredout,orobligatedtotransferoutallgeneratedcashflowsonreceipt;and(a)substantiallyalltherisksandrewardsofownershipofthefinancialassetaretransferredtothetransferee;or(b)theGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset,buthasnotretainedcontrolofthefinancialasset.Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelled,orexpires.Whenanexistingfinancialliabilityisreplacedbyanotherfromthesamelenderonsubstantiallydifferentterms,orthetermsofanexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreatedasaderecognitionoftheoriginalliabilityandarecognitionofanewliability,andthedifferencebetweentherespectivecarryingamountsisrecognisedinprofitorloss.Regularwaypurchasesandsalesoffinancialassetsarerecognisedandderecognisedusingtradedateaccounting.Regularwaypurchasesorsalesarepurchasesorsalesoffinancialassetsthatrequiredeliverywithintheperiodgenerallyestablishedbyregulationorconventioninthemarketplace.ThetradedateisthedatethattheGroupcommittedtopurchaseorsellafinancialasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
ClassificationandmeasurementoffinancialassetsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristicsandtheGroup’sbusinessmodelformanagingthem:
financialassetsatfairvaluethroughprofitorloss,financialassetsatamortisedcost,orfinancialassetsatfairvaluethroughothercomprehensiveincome,accordingtotheGroup’sbusinessmodelformanagingfinancialassetsandthecontractcashflowcharacteristicsofthefinancialassets.Financialassetsaremeasuredatfairvalueatinitialrecognition,providedthataccountsreceivableorbillsreceivablenotcontainingsignificantfinancingcomponentsorforwhichfinancingcomponentsofnotmorethan1yeararenottakenintoconsiderationshallbemeasuredattheirtransactionpricesatinitialrecognition.Forfinancialassetsatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss;whileforotherfinancialassets,therelevanttransactioncostsarerecognisedintheirinitialrecognitionamount.Thesubsequentmeasurementoffinancialassetsdependsontheirclassificationasfollows:
DebtinvestmentsmeasuredatamortisedcostTheGroupmeasuresfinancialassetsatamortisedcostifbothofthefollowingconditionsaremet:Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollectcontractualcashflows;Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Interestincomeofthiskindoffinancialassetsisrecognisedusingtheeffectiveinterestmethod.Gainsandlossesarerecognisedintheincomestatementwhentheassetisderecognised,modifiedorimpaired.DebtinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupmeasuresdebtinvestmentsatfairvaluethroughothercomprehensiveincomeifbothofthefollowingconditionsaremet:thefinancialassetisheldwithinabusinessmodelwiththeobjectiveofbothholdingtocollectcontractualcashflowsandselling;thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Changesinfairvaluesarerecognisedinothercomprehensiveincomeexceptthatinterestincome,impairmentlossesandexchangedifferencesarerecognisedincurrentprofitorloss.Uponderecognition,thecumulativefairvaluechangerecognisedinothercomprehensiveincomeistransferredtoprofitorloss.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
Classificationandmeasurementoffinancialassets(Continued)EquityinvestmentsatfairvaluethroughothercomprehensiveincomeTheGroupirrevocablychoosestodesignatesomenon-tradableequityinstrumentinvestmentsasfinancialassetsatfairvaluethroughothercomprehensiveincome.Onlytherelevantdividendincome(excludingdividendincomeexplicitlyrecoveredaspartofinvestmentcost)isrecognisedinprofitorloss,andsubsequentchangesinfairvalueareincludedinothercomprehensiveincomewithoutprovisionforimpairment.Whenfinancialassetsarederecognised,theaccumulatedgainsorlossespreviouslyrecognisedinothercomprehensivegainsaretransferredfromothercomprehensiveincomeandrecognisedinretainedearnings.FinancialassetsatfairvaluethroughprofitorlossThefinancialassetsotherthantheabovefinancialassetsmeasuredatamortisedcostandfinancialassetsatfairvaluethroughothercomprehensiveincomeareclassifiedasfinancialassetsatfairvaluethroughprofitorloss.Suchfinancialassetsaresubsequentlymeasuredatfairvaluewithnetchangesinfairvaluerecognisedinprofitorlossexceptforthederivativesdesignatedashedginginstrumentsinaneffectivehedge.Onlywhenanaccountingmismatchiseliminatedorsignificantlydecreased,financialassetsaredesignatedasfinancialassetsatfairvaluethroughprofitorlossatinitialrecognition.Whenanenterpriseinitiallydesignatesafinancialassetasafinancialassetatfairvaluethroughprofitorloss,itcannotbereclassifiedtootherfinancialassets;andotherfinancialassetscannotbere-designatedafterinitialrecognitionasfinancialassetsmeasuredatfairvaluethroughprofitorloss.ClassificationandmeasurementoffinancialliabilitiesTheGroup’sfinancialliabilitiesare,oninitialrecognition,classifiedintofinancialliabilitiesatfairvaluethroughprofitorloss,otherfinancialliabilities.Forfinancialliabilitiesatfairvaluethroughprofitorloss,therelevanttransactioncostsaredirectlyrecognisedinprofitorloss,andtherelatedtransactioncostsofotherfinancialliabilitiesarerecognisedintheirinitialamount.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
Classificationandmeasurementoffinancialliabilities(Continued)Subsequentmeasurementoffinancialliabilitiesisdeterminedbyitsclassification:
FinancialliabilitiesatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludefinancialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)andfinancialliabilitiesdesignateduponinitialrecognitionasatfairvaluethroughprofitorloss.Financialliabilitiesheldfortrading(includingderivativeinstrumentsattributabletofinancialliabilities)aresubsequentlymeasuredatfairvalue.Allchangesinfairvalueofsuchfinancialliabilitiesarerecognisedinprofitorloss.Financialliabilitiesdesignatedatfairvaluethroughprofitorlossaresubsequentlymeasuredatfairvalueandgainsorlossesarerecognisedinprofitorloss,exceptforthegainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincome.IfgainsorlossesarisingfromtheGroup’sowncreditriskwhicharepresentedinothercomprehensiveincomewillleadtoorexpandaccountingmismatchinprofitorloss,theGroupwillincludeallthechangesinfairvalue(includingtheamountaffectedbychangesintheGroup’sowncreditrisk)ofsuchfinancialliabilitiesinprofitorloss.Onlyifoneofthefollowingconditionsismetcanfinancialliabilitiesbedesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossoninitialrecognition:
(1)Itcaneliminateorsignificantlyreducetheaccountingmismatch.
(2)Theformalwrittendocumentoftheriskmanagementorinvestmentstrategyhasstatedthattheportfoliooffinancialinstrumentsismanaged,evaluatedandreportedtokeymanagersonthebasisoffairvalue.
(3)Thefinancialliabilityisahybridinstrumentthatcontainsoneormoreembeddedderivatives,unlesstheembeddedderivativeshavenosignificantchangeinthecashflowsofthehybridinstrument,ortheembeddedderivativesshouldobviouslynotbeseparatedfromtherelatedhybridinstruments.
(4)Mixedinstrumentscontainembeddedderivativesthatneedtobesplitbutcannotbemeasuredseparatelyatthetimeofacquisitionoronsubsequentbalancesheetdays.Whenanenterprisedesignatesafinancialliabilityasafinancialliabilityatfairvaluethroughprofitorloss,itcannotbereclassifiedasotherfinancialliabilities;norcanotherfinancialliabilitiesbere-designatedasfinancialliabilitiesatfairvaluethroughprofitorlossafterinitialrecognition.OtherfinancialliabilitiesForsuchfinancialliabilities,subsequentmeasurementismadeatamortisedcostusingtheeffectiveinterestratemethod.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
ImpairmentoffinancialassetsBasedontheexpectedcreditlosses(“ECLs”),theGrouprecognisesanallowanceforECLsforthefinancialassetsmeasuredatamortisedcost,debtinvestmentsatfairvaluethroughothercomprehensiveincomeandcontractassets.Foraccountsreceivableandcontractassetsthatdonotcontainsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountofexpectedcreditlossesequivalenttotheentirelifecycle.Foraccountsreceivableandcontractassetswithsignificantfinancingcomponents,theGroupusesasimplifiedmeasurementmethodtomeasurelossprovisionsinaccordancewiththeamountoftheexpectedcreditlossequivalenttotheentirelifetime.Forfinancialassetsotherthanthosemeasuredwithsimplifiedvaluationmethods,theGroupevaluatesateachbalancesheetdatewhetheritscreditriskhassignificantlyincreasedsinceinitialrecognition.Theperiodduringwhichcreditriskhasnotsignificantlyincreasedsinceinitialrecognitionisconsideredthefirststage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossforthenext12monthsandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;theperiodduringwhichcreditriskhassignificantlyincreasedsinceinitialrecognitionalthoughnocreditimpairmenthasoccurredisconsideredthesecondstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentirevalidperiodandshallcomputeinterestincomeaccordingtothebookbalanceandeffectiveinterestrate;andtheperiodduringwhichcreditimpairmenthasoccurredafterinitialrecognitionisconsideredthethirdstage,atwhichtheGroupshallmeasurethelossprovisionbasedontheamountoftheexpectedcreditlossfortheentireperiodandshallcomputeinterestincomeaccordingtotheamortisedcostandeffectiveinterestrate.Forfinancialinstrumentswithrelativelylowcreditriskatthebalancesheetdate,theGroupassumesthatitscreditriskhasnotsignificantlyincreasessinceinitialrecognition.TheGroupevaluatestheexpectedcreditlossesonfinancialinstrumentsonasingleandcombinedbasis.Takingintoaccountthecreditriskcharacteristicsofdifferentcustomers,theGroupevaluatestheexpectedcreditlossesonaccountsreceivablebasedontheagingportfolio.RefertoNoteVIII(3)forthedisclosureoftheGroup'scriteriaforjudgingthesignificantincreaseincreditrisk,thedefinitionofassetswithimpairedcreditlosses,andtheassumptionofmeasuringexpectedcreditlosses.WhentheGroupnolongerreasonablyexpectstobeabletorecoverallorpartofthecontractcashflowsofthefinancialassets,theGroupdirectlywritesdownthecarryingamountofthefinancialasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
8.Financialinstruments(Continued)
OffsettingoffinancialinstrumentsFinancialassetsandfinancialliabilitiesareoffsetandthenetamountisreportedinthebalancesheetifthereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,ortorealisethefinancialassetsandsettlethefinancialliabilitiessimultaneously.TransferoffinancialassetsAfinancialassetisderecognisedwhentheGrouphastransferredsubstantiallyalltherisksandrewardsoftheassettothetransferee.AfinancialassetisnotderecognisedwhentheGroupretainssubstantiallyalltherisksandrewardsofthefinancialasset.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipoffinancialassets,therelatedaccountingtreatmentsofsuchfinancialassetsareasfollows:theGroupderecognisesfinancialassetswhenitretainsnocontrolonthem,andassociatedassetsandliabilitiesarerecognisedatthesametime.IftheGroupretainscontrolofthefinancialasset,itrecognisesthefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognisesanassociatedliability.Continuinginvolvementthattakestheformofafinancialguaranteeoverthetransferredassetismeasuredattheloweroftheoriginalcarryingamountoftheassetandthefinancialguarantee.TheamountofthefinancialguaranteeisthemaximumamountofconsiderationthattheGroupcouldberequiredtorepay.
9.Inventories
Inventoriesincluderawmaterials,workinprogress,finishedgoodsandturnovermaterials,andaremeasuredatthelowerofcostandnetrealizablevalue.Inventoriesareinitiallycarriedatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandothercosts.Costisdeterminedontheweightedaveragebasis.Turnovermaterialsincludelow-valueconsumablesandpackingmaterials,whichareontheimmediatewrite-offbasis.TheGroupadoptstheperpetualinventorysystem.Atthebalancesheetdate,inventoriesarestatedatthelowerofcostandnetrealizablevalue.Theinventoriesarewrittendownbelowcosttonetrealizablevalueandthewrite-downisrecognisedinprofitorlossifthecostishigherthanthenetrealizablevalue.Whenthecircumstancesthatpreviouslycausedtheinventoriestobewrittendownbelowcostnolongerexist,inwhichcasethenetrealizablevalueofinventoriesbecomeshigherthanthecarryingamount,theamountofthewrite-downisreversed.Thereversalislimitedtotheamountoftheoriginalwrite-down,andisrecognisedinprofitorloss.Netrealizablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.Finishedgoodsarewrittendowncategorybycategory.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
10.Long-termequityinvestments
Long-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociates.Along-termequityinvestmentisinitiallymeasuredatitsinitialinvestmentcostonacquisition.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostshallbetheshareofthecarryingamountofequityoftheacquireeintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyasatthecombinationdate.Thedifferencebetweentheinitialinvestmentcostandbookvalueofconsiderationofcombinationisadjustedtocapitalreserves,andtoretainedearningsifcapitalreservesisinsufficient.Othercomprehensiveincomerecognisedbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswitchestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.Forlong-termequityinvestmentsarisingfrombusinesscombinationinvolvingenterprisesnotundercommoncontrol,theinvestmentcostshallbethecombinationcost.(Forabusinesscombinationachievedinstages,theinitialinvestmentcostisdeterminedasthesumofthecarryingamountofequityoftheacquireeandtheadditionalinvestmentcostsonthecombinationdate.)Thecombinationcostinvolvestheassetspaidbytheacquirer,liabilitiesincurredandthefairvalueofequitysecurities.Othercomprehensiveincomesrecognisedusingtheequitymethodbeforethecombinationdateisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorloss.Equitywhichstillinvolvesalong-terminvestmentafterdisposalisreclassifiedtoprofitorlossonapro-ratabasisandequitywhichswitchestoafinancialinstrumentafterdisposalisfullyreclassifiedtoprofitorloss.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.”TheCompany'sfinancialstatementsusingthecostmethodofaccountingforlong-termequitycanexercisecontrolovertheinvestee.Controlisthepowertogovernthefinancialandoperatingpoliciesoftheinvesteesoastoobtainbenefitsfromitsoperatingactivities.IndeterminingwhethertheCompanyisabletoexercisecontrolovertheinvestee,theeffectofpotentialvotingrightsovertheinvesteeisconsidered,suchasconvertibledebtsandwarrantscurrentlyexercisable.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
10.Long-termequityinvestments(Continued)
Forlong-termequityinvestmentsaccountedforusingthecostmethod,theyaremeasuredattheinitialInvestmentcosts.Thecostoflong-termequityinvestmentsisadjustedwithadditionalinvestmentordivestment.Cashdividendsorprofitdistributiondeclaredbytheinvesteesarerecognisedasinvestmentincomeinprofitorloss.TheequitymethodisadoptedwhentheGrouphasjointcontrol,orexercisessignificantinfluenceovertheinvestee.Jointcontrolisthecontractuallyagreedsharingofcontrolofanarrangement,whichexistsonlywhendecisionsabouttherelevantactivitiesrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butisnotcontrolorjointcontrolwithotherpartiesoverthosepolicies.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sinterestinthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup’sinterestinthefairvaluesoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceischargedtoprofitorloss,andthecostofthelong-termequityinvestmentisadjustedaccordingly.Undertheequitymethod,aftertheGrouphasacquiredalong-termequityinvestment,theGrouprecognisesitsshareoftheinvestee’sprofitorloss,aswellasitsshareoftheinvestee’sothercomprehensiveincome,asinvestmentincomeorlossandothercomprehensiveincome,andadjuststhecarryingamountoftheinvestmentaccordingly.TheGrouprecognisesitsshareoftheinvestee’sprofitorlossaftermakingappropriateadjustmentstotheinvestee’sprofitorlossbasedonthefairvalueoftheinvestee’sidentifiableassetsattheacquisitiondate,usingtheGroup’saccountingpoliciesandperiods.UnrealisedprofitsandlossesfromtransactionswithitsjointventuresandassociatesareeliminatedtotheextentoftheGroup’sinvestmentsintheassociatesorjointventures(exceptforassetsthatconstituteabusiness).ThecarryingamountoftheinvestmentisreducedbasedontheGroup’sshareofanyprofitdistributionsorcashdividendsdeclaredbytheinvestee.TheGroup’sshareofnetlossesoftheinvesteeisrecognisedtotheextentthatthecarryingamountoftheinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteeisreducedtozero,exceptthattheGrouphastheobligationstoassumefurtherlosses.TheGroup’sshareoftheinvestee’sequitychanges,otherthanthosearisingfromtheinvestee’sprofitorloss,othercomprehensiveincomeorprofitdistribution,isrecognisedintheGroup’sequity,andthecarryingamountofthelong-termequityinvestmentisadjustedaccordingly.Upondisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandthecarryingamountisrecognisedinprofitorloss.Foralong-termequityinvestmentaccountedforusingtheequitymethod,whentheGroupdiscontinuesusingtheequitymethodduetodisposal,allamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilities.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitorloss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossinitsentirety.WhentheGroupcontinuestousetheequitymethod,theamountspreviouslyrecognisedinothercomprehensiveincomeareaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedoftherelatedassetsorliabilitiesandreclassifiedtoprofitorlossonapro-ratabasis.Equitypreviouslyrecognisedresultingfromtheinvestee’sequitychangesotherthanprofitor
loss,othercomprehensiveincomeandprofitdistributionisreclassifiedtoprofitorlossonapro-ratabasis.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
11.Investmentproperties
Investmentpropertiesarepropertiesheldtoearnrentalincomeand/orforcapitalappreciation.Investmentpropertiesincludelanduserightsleasedout,landuserightsheldfortransferuponcapitalappreciation,andbuildingsleasedout.Investmentpropertiesaremeasuredinitiallyatcost.SubsequentexpendituresincurredinrelationtoinvestmentpropertiesareincludedinthecostofinvestmentpropertieswhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtheircostscanbereliablymeasured;otherwise,theexpendituresarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupadoptsthecostmodelforsubsequentmeasurementofinvestmentproperties.Buildingsandlanduserightsaredepreciatedoramortisedtotheirestimatednetresidualvaluesovertheirestimatedusefullives.Theestimatedusefullives,theestimatednetresidualvaluesthatareexpressedasapercentageofcostandtheannualdepreciation(amortisation)ratesofinvestmentpropertiesareasfollows:
Estimatedusefullives
| Estimatedusefullives | Estimatedresidualvalue | Annualdepreciation(amortisation)rates |
Buildingsandconstructions
| Buildingsandconstructions | 5-35years | 0-5% | 2.71-19.00% |
| Landuserights | 40-50yearsornofixedusefullife | 0% | 2.00-2.50% |
Whenaninvestmentpropertyistransferredtoowner-occupiedproperty,itisreclassifiedasafixedassetorintangibleassetatthedateoftransfer.Whenanowner-occupiedpropertyistransferredoutforearningrentalsorforcapitalappreciation,thefixedassetorintangibleassetisreclassifiedasaninvestmentpropertyatitscarryingamountatthedateoftransfer.Theinvestmentproperties’usefullife,netresidualvalueanddepreciation(amortisation)methodappliedarereviewedandadjustedasappropriateattheendofeachyear.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
12.Fixedassets
FixedassetsarerecognisedonlywhentheeconomicbenefitsassociatedwiththeassetwillprobablyflowintotheGroupandthecostoftheassetcanbemeasuredreliably.Subsequentexpendituresincurredforafixedassetthatmeetstherecognitioncriteriashallbeincludedinthecostofthefixedasset,andthecarryingamountofthecomponentofthefixedassetthatisreplacedshallbederecognised.Otherwise,suchexpendituresarerecognisedinprofitorlossasincurred.Fixedassetsareinitiallymeasuredatcost,bytakingintoaccounttheeffectofanyassetretirementobligations.Thecostofapurchasedfixedassetcomprisesthepurchaseprice,relevanttaxesandanydirectlyattributableexpenditureforbringingtheassettoworkingconditionforitsintendeduse.Depreciationiscalculatedusingthestraight-linemethod.Theusefullives,estimatedresidualvalueratesandannualdepreciationratesofeachcategoryofthefixedassetsareasfollows:
EstimatedusefullivesEstimatedresidualvaluesAnnualdepreciationratesBuildingsand
constructions20-35years3-5%2.71-4.85%Machinery5-14years3-5%6.79-19.40%Motorvehicles3-10years5%9.50-31.67%Officeequipment3-10years5%9.50-31.67%Electronicequipment3-10years0-5%9.50-33.33%TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastateachyearend,andmakeadjustmentsifnecessary.
13.Borrowingcosts
BorrowingcostsareinterestandothercostsincurredbytheGroupinconnectionwiththeborrowingofthefunds.Borrowingcostsincludeinterest,amortisationofdiscountsorpremiumsrelatedtoborrowings,ancillarycostsincurredinconnectionwiththearrangementofborrowings,andexchangedifferencesarisingfromforeigncurrencyborrowings.Theborrowingcoststhataredirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetarecapitalised.Theamountsofotherborrowingcostsincurredarerecognisedasanexpenseintheperiodinwhichtheyareincurred.Qualifyingassetsareassets(fixedassets,investmentproperties,inventories,etc.)thatnecessarilytakeasubstantialperiodoftimeofacquisition,constructionorproductiontogetreadyfortheirintendeduseorsale.Theborrowingcostsshallnotbecapitalisedunlesstheysimultaneouslymeetthefollowingrequirements:
(1)Theassetdisbursementshavealreadyincurred;
(2)Theborrowingcostshavealreadyincurred;and
(3)Theacquisitionandconstructionorproductionactivitieswhicharenecessarytopreparethe
assetforitsintendeduseorsalehavealreadystarted.
Whenthequalifiedassetunderacquisitionandconstructionorproductionisreadyfortheintendeduseorsale,thecapitalizationoftheborrowingcostsshallbeceased.Borrowingcostsincurredaftertheintendeduseorsaleshallberecordedinthecurrentprofitsandlosses.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
13.Borrowingcosts(Continued)
Duringtheperiodofcapitalization,thecapitalisedamountofinterestineachaccountingperiodshallbecalculatedanddeterminedinthewaysbelow:
(1)Theenterpriseshallcalculateanddeterminetheinterestofaspecificloanbydeducting
interestincomeoftheloancapitaldepositinthebankorinvestmentincomeobtainedfromatemporaryinvestment.
(2)Theenterpriseshallcalculateanddeterminetheto-be-capitalisedamountofinterestonthegeneralborrowingbymultiplyingtheweightedaverageassetdisbursementofthepartoftheaccumulativeassetdisbursementsminusthegeneralborrowingbythecapitalizationrateofthegeneralborrowingused.Capitalisationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallybyactivitiesotherthanthosenecessarytogettheassetreadyforitsintendeduseorsale,whenthesuspensionisforacontinuousperiodofmorethan3months.Borrowingcostsincurredduringtheseperiodsarerecognisedasanexpenseinprofitorlossuntiltheacquisition,constructionorproductionisresumed.
14.Right-of-useassets
Theright-of-useassetsoftheGroupmainlyincludebuildingsandconstructions,machinery,vehicles,officeequipmentandotherassetssuchaslanduserights.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.
15.Constructioninprogress
Thecostofconstructioninprogressisdeterminedaccordingtotheactualexpendituresincurredfortheconstruction,includingallnecessaryconstructionexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshallbecapitalisedbeforetheconstructionisreadyforitsintendeduse,andotherrelevantexpenditures.Anitemofconstructioninprogressistransferredtofixedassetswhentheassetisreadyforitsintendeduse.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
16.Intangibleassets
IntangibleassetsarerecognisedandmeasuredoninitialrecognitionatcostonlyiftherelatedeconomicbenefitswillprobablyflowintotheGroupandtheircostscanbemeasuredreliably.However,theintangibleassetsacquiredthroughabusinesscombinationnotinvolvingenterprisesundercommoncontrolshouldbemeasuredatfairvalueseparatelyasintangibleassetswhentheirfairvaluescanbereliablymeasured.TheusefullifeoftheintangibleassetsshallbeassessedaccordingtotheestimatedbeneficialperiodexpectedtogenerateeconomicbenefitsfortheGroup.AnintangibleassetshallberegardedashavinganindefiniteusefullifewhenthereisnoforeseeablelimittotheperiodoverwhichtheassetisexpectedtogenerateeconomicbenefitsfortheGroup.Theusefullivesoftheintangibleassetsareasfollows:
Categories
| Categories | Usefullives |
Landuserights
| Landuserights | BetweentheapprovedusefulperiodandtheCompany’soperatingperiod | |
| Software | 3-10years | |
| Trademarksandbranduserights | 10yearsornofixedusefullife | |
| Distributionnetwork | 10-20years | |
| Franchise | 10years | |
| Favourableleases | 16-20years |
LanduserightsobtainedbytheGroupareusuallyaccountedforasintangibleassets.Asfortheconstructionofplants,factoriesandotherbuildingsoftheGroup,therelatedlanduserightsandotherbuildingswereaccountedforasintangibleassetsandfixedassets,respectively.Purchasecostsoflanduserightsandbuildingswereallocatedtointangibleassetsandfixedassetsseparately.Purchasecostswererecognisedascostoffixedassets,onlyiftheseparationwasimpracticable.Intangibleassetswithafiniteusefullifeareamortisedovertheirestimatedusefullivesusingthestraight-linemethod.Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortisationmethodatleastonceateachfinancialyearend,andmakesadjustmentswhennecessary.LanduserightsallocatedbytheStateareregardedasanintangibleassetwithanindefiniteusefullifeduetoanuncertainusefullife.Theimpairmenttestshouldbeconductedfortheintangibleassetswiththeindefiniteservicelifeeveryyeartodeterminewhethertheimpairmentexists.Theintangibleassetswiththeindefiniteservicelifeshallnotbeamortised,andtheCompanyshallmakethereviewoftheservicelifeoftheintangibleassetsduringeveryaccountingperiod.Ifevidenceprovethatusefullivesarefinite,theGroupaccountsfortheintangibleassetsinaccordancewithintangibleassetswithafiniteusefullife.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
16.Intangibleassets(Continued)
InternalresearchanddevelopmentprojectTheGroupclassifiestheexpensesforinternalresearchanddevelopmentasresearchcostsanddevelopmentcosts.Allresearchcostsarechargedtothecurrentprofitorlossasincurred.ExpenditureincurredonprojectstodevelopnewproductsiscapitalisedanddeferredonlywhentheGroupcandemonstratethetechnicalfeasibilityofcompletingtheintangibleassetsothatitwillbeavailableforuseorsale,itsintentiontocompleteanditsabilitytouseorselltheasset,howtheassetwillgeneratefutureeconomicbenefits(includingdemonstrationthattheproductderivedfromtheintangibleassetortheintangibleassetitselfwillbemarketableor,inthecaseofinternaluse,theusefulnessoftheintangibleassetassuch),theavailabilityoftechnicalandfinancialresourcestocompletetheprojectandprocuretheuseorsaleoftheintangibleasset,andtheabilitytomeasurereliablytheexpenditureduringthedevelopment.Productdevelopmentexpenditurewhichdoesnotmeetthesecriteriaisexpensedwhenincurred.Expenditureforinvestigation,evaluationandselectionofproductionprocessandnewdrugresearchesisrecognisedinprofitorlossintheperiodinwhichitisincurred.Expenditureonthedesignation,measurementofthefinalutilizationoftheproductionprocessandnewdrugsbeforemassproductioniscapitalisedonlyifallofthefollowingconditionsaresatisfied:
(1)developmentoftheproductionprocessandnewdrugshasbeenfullydemonstratedbythetechnicalteam;
(2)managementhasapprovedthebudgetofdrugproductiondevelopmentandnewdrugs;
(3)marketresearchanalysissuggeststhattheproductsproducedbythenewproductiontechnologyareabletobepromoted;
(4)adequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;
(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe
reliablymeasured.Otherdevelopmentcoststhatdonotmeettheconditionsabovearerecognisedinprofitorlossintheperiodinwhichtheyareincurred.Developmentcostspreviouslyrecognisedasexpensesarenotrecognisedasanassetinasubsequentperiod.Capitalisedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
17.Impairmentofassets
TheGroupdeterminestheimpairmentofassets,otherthantheimpairmentofinventories,investmentpropertiesmeasuredusingthefairvaluemodel,deferredtaxassets,financialassetsandassetsclassifiedasheldforsale,usingthefollowingmethods:
TheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatanassetmaybeimpaired.Ifanyindicationexiststhatanassetmaybeimpaired,theGroupestimatestherecoverableamountoftheassetandperformsimpairmenttesting.Goodwillarisingfromabusinesscombinationandanintangibleassetwithanindefiniteusefullifearetestedforimpairmentatleastateachyearend,irrespectiveofwhetherthereisanyindicationthattheassetmaybeimpaired.Intangibleassetsthathavenotbeenreadyfortheirintendedusearetestedforimpairmenteachyear.Therecoverableamountofanassetisthehigherofitsfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.TheGroupestimatestherecoverableamountonanindividualbasisunlessitisnotpossibletoestimatetherecoverableamountoftheindividualasset,inwhichcasetherecoverableamountisdeterminedfortheassetgrouptowhichtheassetbelongs.Identificationofanassetgroupisbasedonwhethermajorcashinflowsgeneratedbytheassetgrouparelargelyindependentofthecashinflowsfromotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislessthanitscarryingamount,thecarryingamountisreducedtotherecoverableamountbytheGroup.Thereductioninthecarryingamountistreatedasanimpairmentlossandrecognisedinprofitorloss.Aprovisionforimpairmentlossoftheassetisrecognisedaccordingly.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,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
18.Long-termprepaidexpenses
Long-termprepaidexpensesincludetheexpenditureforimprovementstofixedassetsunderoperatingleases,andotherexpendituresthathavebeenmadebutshouldberecognisedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortisedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortisation.
19.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.
20.Employeebenefits
Employeebenefitsmainlyincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefitsincurredinexchangeforservicerenderedbyemployeesorvariousformsofrewardsorcompensationduetoseveranceoflabourrelation.Short-termemployeebenefitsTheactualoccurredshort-termemployeebenefitsarerecognisedasliabilitiesduringtheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployeesandascostsofassetsorexpensestowhichevertheemployeeserviceisattributable.Post-employmentbenefits(definedcontributionplans)TheemployeesintheGroupparticipateinsocialinsuranceandunemploymentinsuranceschemesadministratedbythelocalgovernments,andtherelatedexpendituresarerecordedincostofrelatedassetsorprofitorlossintheperiodwhentheyincurred.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
20.Employeebenefits(Continued)
Post-employmentbenefits(definedbenefitplans)TheGroupoperatesadefinedbenefitpensionscheme.Nofundshavebeeninjectedintothescheme.Thecostofbenefitsprovidedunderthedefinedbenefitschemeiscalculatedusingtheexpectedbenefitaccrualunitapproach.Remeasurementarisingfromdefinedbenefitpensionschemes,includingactuarialgainsorlosses,changesintheassetcapeffect(deductingamountsincludedinnetinterest)andreturnsonschemeassets(deductingamountsincludedinnetinterest),isinstantlyrecognisedinthebalancesheetandchargedtoshareholders’equitythroughothercomprehensiveincomefortheperiodduringwhichitisincurred.Itwillnotbereversedtoprofitandlossinsubsequentperiods.Previousservicecostsarerecognisedascurrentexpenseswhen:thedefinedbenefitschemeisrevised,ortherelevantrestructuringcostsorterminationbenefitsarerecognisedbytheGroup,whicheverearlier.Netinterestisarrivedatbymultiplyingnetliabilitiesornetassetsofdefinedbenefitswithadiscountrate.Changesinnetobligationsofdefinedbenefitsarerecognisedasoperatingcostsandadministrationexpensesintheincomestatement.Servicecostsincludecurrentservicescosts,pastservicecostsandsettlementofprofitorloss.Netinterestincludeinterestincomefromschemeassets,interestexpensesforschemeobligationsandinterestoftheassetcapeffect.TerminationbenefitsTheGrouprecognisesaliabilityforterminationbenefitsandchargestoprofitorlossattheearlierofthefollowingdates:a)whentheGroupcannolongerwithdrawfromtheterminationplanortheredundancyoffer;andb)whentheGrouprecognisescostsorexpenseforarestructuringplanwhichinvolvesthepaymentofterminationbenefits.TheGroupoffersterminationbenefitstotheemployeeswhoacceptinternalretirementarrangements.Terminationbenefitsreferstosalariesandsocialbenefitspaidtotheemployeeswhovoluntarilyretireandapprovedbythemanagementbeforethelegalretirementage.TheGrouppaysterminationbenefitsfromthedateofthestartingofinternalretirementarrangementstolegalretirementage.Whenmeetingtherecognitioncriteria,terminationbenefitsarerecognisedasliabilitiesfromthedateonwhichtheemployeesstopofferingservicestothelegalretirementdateandrecognisedinprofitorlossasincurred.Thechangeofterminationbenefits’actuarialassumptionsanddifferenceincurredbytheadjustmentofwelfarestandardsarerecognisedinprofitorlossasincurred.Theterminationbenefitsexpectedtobesettledwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.Otherlong-termemployeebenefitsOtherlong-termemployee’benefitsprovidedtoemployeesshallberecognisedandmeasuredasnetliabilitiesornetassetswhereprovisionsregardingpost-employmentbenefitsareapplicable,providedthatchangesshallbeincludedinthecurrentprofitandlossorrelatedassetcosts.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
21.Leaseliabilities
Atthecommencementdateofthelease,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate,exceptforshort-termleasesandleasesoflow-valueassets.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheinterestrateimplicitintheleaseasthediscountrate.Ifthatratecannotbereadilydetermined,theGroupusesthelessee’sincrementalborrowingrate.TheGroupcalculatestheinterestexpensesoftheleaseliabilityineachperiodduringtheleasetermusingtheconstantperiodicrateofinterest,andrecognisessuchinterestexpensesinprofitorloss,exceptthoseinthecostsoftherelatedassetasrequired.Variableleasepaymentsthatarenotincludedinthemeasurementoftheleaseliabilitiesarerecognisedinprofitorlossasincurred,exceptthoseinthecostsoftherelatedassetasrequired.Afterthecommencementdateofthelease,theGroupremeasuresleaseliabilitieswithchangedpresentvalueoftheleasepaymentswhenfixedpayment,expectedunguaranteedresidualvaluepayable,theinterestrateimplicitintheleaseasthediscountrate,purchaseoptions,optionstoextendtheleaseordeterminationoftheleasetermchange.
22.Provisions
AnobligationrelatedtoacontingencyshallberecognisedbytheGroupasaprovisionwhenallofthefollowingconditionsaresatisfied,exceptforcontingentconsiderationsandcontingentliabilitiesassumedinabusinesscombinationnotinvolvingenterprisesundercommoncontrol:
(1)TheobligationisapresentobligationoftheGroup;
(2)ItisprobablethatanoutflowofeconomicbenefitsfromtheGroupwillberequiredtosettletheobligation;and
(3)Theamountoftheobligationcanbemeasuredreliably.Theprovisionsareinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoneyasawhole.Thecarryingamountofprovisionsisreviewedatthebalancesheetdate.Wherethereisclearevidencethatthecarryingamountofaprovisiondoesnotreflectthecurrentbestestimate,thecarryingamountisadjustedtothecurrentbestestimate.Acontingentliabilityrecognisedinabusinesscombinationnotinvolvingentitiesundercommoncontrolisinitiallymeasuredatfairvalue.Subsequently,itismeasuredatthehigherof:(i)theamountthatwouldberecognisedinaccordancewiththegeneralpolicyforprovisionsabove;and(ii)theamountinitiallyrecognisedlesscumulativeamortisationrecognisedinaccordancewiththepolicyforrevenuerecognition.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
23.Share-basedpayments
Ashare-basedpaymentisclassifiedaseitheranequity-settledshare-basedpaymentoracash-settledshare-basedpayment.Anequity-settledshare-basedpaymentisatransactioninwhichtheGroupreceivesservicesandusessharesorotherequityinstrumentsasconsiderationforsettlement.Anequity-settledshare-basedpaymentinexchangeforservicesreceivedfromemployeesismeasuredatthefairvalueoftheequityinstrumentsgrantedtotheemployees.Ifsuchequity-settledshare-basedpaymentcouldvestimmediately,relatedcostsorexpensesatanamountequaltothefairvalueonthegrantdatearerecognised,withacorrespondingincreaseincapitalreserves;ifsuchequity-settledshare-basedpaymentcouldnotvestuntilthecompletionofservicesforavestingperiod,oruntiltheachievementofaspecifiedperformancecondition,theGroupateachbalancesheetdateduringthevestingperiodrecognisestheservicesreceivedforthecurrentperiodasrelatedcostsandexpenses,withacorrespondingincreaseincapitalreserves,atanamountequaltothefairvalueoftheequityinstrumentsatthegrantdate.Thefairvalueisdeterminedusingthebinomialmodel.Forawardsthatdonotultimatelyvestbecausenon-marketperformanceandserviceconditionshavenotbeenmet,noexpenseisrecognised.Whereawardsincludeamarketornon-vestingcondition,thetransactionsaretreatedasvestingirrespectiveofwhetherthemarketornon-vestingconditionissatisfied,providedthatallotherperformanceandserviceconditionsaresatisfied.Wherethetermsofanequity-settledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified,iftheoriginaltermsoftheawardaremet.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.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
24.Revenuefromcontractswithcustomers
RevenuefromcontractswithcustomersisrecognisedwhentheGrouphasfulfilleditsperformanceobligationsinthecontracts,thatis,whenthecustomerobtainscontrolofrelevantgoodsorservices.Controlofrelevantgoodsorservicesreferstotheabilitytodirecttheuseofthegoods,ortheprovisionoftheservices,andobtainsubstantiallyalloftheremainingbenefitsfromthegoodsorservices.ContractsforthesaleofgoodsAcontractforthesaleofgoodsbetweentheGroupandthecustomerusuallyonlyincludestheperformanceobligationtotransferthegoods.Therevenueisrecognisedatthepointoftransferringthecontrolofgoodsintimebasedonthefollowingindicators,whichinclude:apresentrighttopaymentforgoods,thetransferofsignificantrisksandrewardsofownershipofgoods,thetransferoflegaltitletogoods,thetransferofphysicalpossessionofgoods,thecustomer'sacceptanceofgoods.ServicecontractsAcontractfortherenderingofservicesbetweentheGroupandthecustomerusuallyincludesperformanceobligationssuchasstorageandlogistics,Consultingandothermedicalservices.BecausethecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup'sperformanceastheGroupperforms,andtheGrouphasanenforceablerighttopaymentforperformancecompletedtodate,therevenueisrecognisedovertimeonlyiftheGroupcanreasonablymeasureitsprogresstowardsthecompletesatisfactionoftheperformanceobligation.TheGroupdeterminestheprogressoftheperformanceofcontractsinaccordancewiththeinputmethod.Iftheprogresstowardsthecompletesatisfactionoftheperformanceobligationcannotbereasonablymeasured,buttheGroupexpectstorecoverthecostsincurredinsatisfyingtheperformanceobligation,therevenueisrecognisedonlytotheextentofthecostsincurreduntilsuchtimethattheGroupcanreasonablymeasuretheprogresstowardsthecompletesatisfactionoftheperformanceobligation.VariableconsiderationSomeoftheGroup'scontractswithcustomersincludingarrangementsofsalesrebatesresultinvariableconsideration.TheGroupdeterminesthebestestimateofvariableconsiderationbyusingtheexpectedvaluemethodorthemostlikelyamountmethod.However,thetransactionpriceincludingvariableconsiderationisonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.ConsiderationpayabletocustomersWhereconsiderationispayablebytheGrouptoacustomer,suchconsiderationpayableshallbedeductedagainstthetransactionprice,andagainstcurrentrevenueupontherecognitionofrevenueorthepaymentof(orthecommitmenttopay)theconsiderationtothecustomer(whicheverislater),saveforconsiderationpayabletothecustomerforthepurposeofacquiringfromthecustomerotherclearlyseparableproducts.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
24.Revenuefromcontractswithcustomers(Continued)
ReturnclausesInconnectionwithsaleswithareturnclause,revenueisrecognisedaccordingtotheamountofconsiderationitexpectstobeentitledtoforthetransfertoacustomerwhenthecustomeracquirescontroloftherelevantproducts.Amountsexpectedtoberefundedforthereturnofsalesarerecognisedasliabilities.Atthesametime,thebalanceofthecarryingvalueoftheproductexpectedtobereturnedupontransferlessexpectedcostsfortherecallofsuchproduct(includinganimpairmentlossoftherecalledproduct)shallberecognisedasanasset(i.e.costofreturnreceivables),andthenetamountofthecarryingvalueofthetransferredproductuponthetransferlesstheaforesaidassetcostshallbetransferredtocost.Ateachbalancesheetdate,theGroupreassessesthefuturereturnofsalesandremeasurestheaboveassetsandliabilities.SignificantfinancingcomponentWhenthecontractcontainsasignificantfinancingcomponent,theGroupdeterminesthetransactionpricebasedonanamountthatreflectsthepricethatacustomerwouldhavepaidforthegoodsorservicesincashatthetimeofobtainingthecontrolofthegoodsorservices,andamortisesthedifferencebetweenthetransactionpriceandtheconsiderationpromisedinthecontractundertheeffectiveinterestmethodwithinthecontractperiodusingthediscountratethatdiscountsthenominalamountofthecontractconsiderationtothecurrentsellingpriceofthegoodsorservices.TheGroupdoesnotconsidertheeffectsofasignificantfinancingcomponentinthecontractifitisexpectedthattheperiodbetweenwhenthecustomerobtainscontrolofthegoodsorservicesandwhenthecustomerpaysforsuchgoodsorserviceswillbeoneyearorless.WarrantiesTheGroupprovidesawarrantyinconnectionwiththesaleofagoodinaccordancewiththecontractandtherelevantlawsandregulations,etc.Foranassurance-typewarrantythatprovidesthecustomertheassurancethatthegoodcomplieswithagreed-uponspecifications,theGroupaccountsforthewarrantyinaccordancewithNoteIII(22).Foraservice-typewarrantythatprovidesacustomerwithaserviceinadditiontotheassurancethattheproductcomplieswithagreed-uponspecifications,theGroupaccountsforitasaseparateperformanceobligation.Onthebasisoftherelativeproportionbetweenthestand-alonesellingpriceofthegoodandtheservice-typewarranty,aportionofthetransactionpriceisallocatedtotheservice-typewarrantyandrevenueisrecognisedwhenacustomerobtainedcontrolofthegood.Whenassessingwhetheraservice-typewarrantyprovidesacustomerwithaseparateserviceinadditiontotheassurancethatthegoodcomplieswithagreed-uponspecifications,theGroupconsiderswhetherthewarrantyisrequiredbylaw,thelengthofthewarrantycoverageperiodandthenatureofthetasksthattheGrouppromisestoperform,etc.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
24.Revenuefromcontractswithcustomers(Continued)
LoyaltypointsprogrammeTheGroupgrantsacustomerwithloyaltypointsuponthesaleofthegoodsorrenderingofservices,whichcanberedeemedbythecustomersforfreeordiscountedgoodsorservices.Theloyaltypointsprogrammegivesrisetoaseparateperformanceobligationastheyprovideamaterialrighttothecustomer.Aportionofthetransactionpriceisallocatedtotheloyaltypointsawardedtothecustomerbasedontherelativeproportionbetweenthestand-alonesellingpriceofthegoodsorservicesandtheloyaltypoints.Revenueisrecognisedwhenthecustomerobtainscontrolofthegoodsorservicesredeemedwiththeloyaltypointsortheloyaltypointsexpire.Principal/agentWhentheGroupobtainscontrolofgoodsoranotherassetfromathirdpartyandthentransfersittothecustomer,theGroupisentitledtodeterminethetransactionpriceofthegoodsorservicesonitsown,i.e.,theGroupcontrolsthegoodsorservicesbeforetransferringtothecustomer.Thus,theGroupisaprincipalandrecognisesrevenueinthegrossamountofconsiderationreceivedorreceivable.Otherwise,theGroupisanagentandrecognisesrevenueintheamountofanyfeeorcommissiontowhichitexpectstobeentitledfromthecustomer.Theamountisthenetamountofthegrossconsiderationreceivedorreceivableafterpayingtheotherpartytheconsiderationreceivedinexchangeforthegoodsorservicestobeprovidedbythatpartyordeterminedbytheagreed-uponamountorproportionofcommissions,etc.
25.Contractassetsandcontractliabilities
TheGrouppresentscontractassetsorcontractliabilitiesdependingontherelationshipbetweenthesatisfactionofitsperformanceobligationsandthecustomer’spaymentinthebalancesheet.TheGroupoffsetsthecontractassetsandcontractliabilitiesunderthesamecontractandpresentsthenetamount.ContractassetsAcontractassetistherighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andthatrightisconditionedonsomethingotherthanthepassageoftime.FordetailsofhowtheGroupmeasuresandaccountsfortheECLsofacontractasset,refertoNoteIII(8).ContractliabilitiesAcontractliabilityistheobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsiderationoranamountofconsiderationisduefromthecustomer,suchasanamountofconsiderationthatanentityhasreceivedbeforethetransferofthepromisedgoodsorservices.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
26.Assetsrelatingtocontractcost
TheGroup’scontractcostassetsincludethecoststoobtainandfulfilacontractandareclassifiedasinventories,othercurrentassetsandothernon-currentassetsbyliquidity.TheGrouprecognisesasanassettheincrementalcostsofobtainingacontractwithacustomeriftheGroupexpectstorecoverthosecosts,unlesstheamortisationperiodoftheassetisoneyearorless.Otherthanthecostswhicharecapitalisedasinventories,fixedassetsandintangibleassets,etc.,costsincurredtofulfilacontractwithacustomerarecapitalisedasanassetifallofthefollowingcriteriaaremet:
(1)thecostsrelatedirectlytoacontractortoananticipatedcontract,includingdirectlabour,directmaterials,overheads(orsimilarexpenses),coststhatareexplicitlychargeabletothecustomerandothercoststhatareincurredonlybecauseanentityenteredintothecontract;
(2)thecostsgenerateorenhanceresourcesoftheGroupthatwillbeusedinsatisfying
performanceobligationsinthefuture;and
(3)thecostsareexpectedtoberecovered.Thecontractcostassetisamortisedandchargedtoprofitorlossonasystematicbasisthatisconsistentwiththepatternoftherevenuetowhichtheassetrelatedisrecognised.TheGroupaccruesprovisionsforimpairmentandrecognisesimpairmentlossestotheextentthatthecarryingamountofacontractcostassetexceeds:
(1)theremainingamountofconsiderationthattheentityexpectstoreceiveinexchangefor
thegoodsorservicestowhichtheassetrelates;less
(2)thecoststhatareexpectedtobeincurredtotransferthoserelatedgoodsorservices.TheGrouprecognisesinprofitorlossareversaloftheimpairmentlosspreviouslyrecognisedtotheextentthatthedifferencebetween(1)and(2)exceedsthecarryingamountoftheassetduetothesubsequentchangesofthefactorscausingassetimpairmentinpreviousperiods,butthecarryingamountafterthereversaldoesnotexceedthecarryingamountoftheassetatthereversaldateifnoimpairmentlossisotherwiserecognised.
27.Governmentgrants
Governmentgrantsarerecognisedwhenallattachingconditionswillbecompliedwithandthegrantswillbereceived.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofatransferofanon-monetaryasset,itismeasuredatfairvalue;iffairvalueisnotreliablydeterminable,itismeasuredatanominalamount.Governmentgrantsrelatedtoassetsrefertothelong-termassetsformedbyacquisition,construction,orothermannersasstipulatedingovernmentdocuments.Ifthegovernmentdocumentsarenotclear,thegovernmentgrantsrelatedtoassetsarejudgedbasedonthebasicconditionsthatmustbemettoobtainthegrants.Whenthelong-termassetsareformattedthroughacquisition,construction,orothermanners,thegrants'amountshallberegardedasthegovernmentgrantsrelatedtoassets.Otherwise,thegrants'amountshallberegardedasthegovernmentgrantsrelatedtoincome.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
27.Governmentgrants(Continued)
Agovernmentgrantrelatedtoincomeisaccountedforasfollows:(i)ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognisedasdeferredincome,andreleasedinprofitorlossoroffsetagainstrelatedexpensesovertheperiodsinwhichtherelatedcostsarerecognised;or(ii)ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,itisrecognisedimmediatelyinprofitorlossoroffsetagainstrelevantexpenses.Agovernmentgrantrelatingtoanassetshallbeoffsetagainstthecarryingamountsofrelevantassets,orrecognisedasdeferredincomeandamortisedinprofitorlossovertheusefullifeoftherelatedassetbyannualinstalmentsinasystematicandrationalway(however,agovernmentgrantmeasuredatanominalamountisrecogniseddirectlyinprofitorloss).Wheretheassetsaresold,transferred,retiredordamagedbeforetheendoftheirusefullives,theremainingdeferredincomeisreleasedtoprofitorlossfortheperiodinwhichtherelevantassetsaredisposedof.
28.Incometax
Incometaxcomprisescurrentanddeferredtax.Incometaxisrecognisedasincomeorexpenseinprofitorloss,orrecogniseddirectlyinequityifitarisesfromabusinesscombinationorrelatestoatransactionoreventwhichisrecogniseddirectlyinequity.CurrenttaxliabilitiesorassetsarisingfromthecurrentandpriorperiodsattheamountexpectedtobepaidbytheGrouporreturnedbythetaxauthorityarecalculatedaccordingtorelatedtaxlaws.Deferredtaxisprovidedusingthebalancesheetliabilitymethod,onalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts,andtemporarydifferencesbetweenthetaxbasesandthecarryingamountsoftheitems,whichhaveataxbaseaccordingtorelatedtaxlawsbutarenotrecognisedasassetsandliabilities.Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferences,except:
(1)whenthetaxabletemporarydifferencearisesfromtheinitialrecognitionofgoodwill,oranassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeoftransaction,affectsneitheraccountingprofitnortaxableprofitorloss;and
(2)inrespectoftaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,
associatesandjointventures,whenthetimingofthereversalofthetemporarydifferencescanbecontrolledanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
28.Incometax(Continued)
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.
29.Leases
IdentificationofleasesAtinceptionofacontract,theGroupassesseswhetherthecontractis,orcontains,alease.Acontractis,orcontains,aleaseifthecontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftimeinexchangeforconsideration.Toassesswhetheracontractconveystherighttocontroltheuseofanidentifiedassetforaperiodoftime,theGroupassesseswhether,throughouttheperiodofuse,thecustomerhasbothoftherighttoobtainsubstantiallyalloftheeconomicbenefitsfromuseoftheidentifiedassetandtherighttodirecttheuseoftheidentifiedasset.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
29.Leases(Continued)
IdentificationofseparateleasecomponentsForacontractthatcontainsmultipleseparateleasecomponents,theGroupseparatesthecomponentsofthecontractandaccountsforeachseparateleasecomponent.Therighttouseanunderlyingassetisaseparateleasecomponentifboth:
(1)thelesseecanbenefitfromuseoftheunderlyingasseteitheronitsownortogetherwith
otherresourcesthatarereadilyavailabletothelessee;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.AslesseeTheGroupaccountsasalesseeseeNoteIII(14)andNoteIII(21).LeasemodificationsLeasemodificationisachangeinthescopeofalease,ortheconsiderationforalease,thatwasnotpartoftheoriginaltermsandconditionsofthelease,forexample,addingorterminatingtherighttouseoneormoreunderlyingassets,orextendingorshorteningthecontractualleaseterm.TheGroupaccountsforaleasemodificationasaseparateleaseifboth:
(1)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore
underlyingassets;and
(2)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-
alonepricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alone
pricetoreflectthecircumstancesoftheparticularcontract.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
29.Leases(Continued)
Aslessee(Continued)Leasemodifications(Continued)Foraleasemodificationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodificationtheGroupremeasurestheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Thereviseddiscountrateisdeterminedastheinterestrateimplicitintheleasefortheremainderoftheleaseterm,orthelessee’sincrementalborrowingrateattheeffectivedateofthemodification,iftheinterestrateimplicitintheleasecannotbereadilydetermined.Foraleasemodificationthatisnotaccountedforasaseparatelease,theGroupaccountsfortheremeasurementoftheleaseliabilityby:
(1)decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfull
terminationoftheleaseforleasemodificationsthatdecreasethescopeofthelease,andrecognisingthegainorlossrelatingtothepartialorfullterminationoftheleaseinprofitorloss;or
(2)makingacorrespondingadjustmenttotheright-of-useassetforallotherlease
modifications.Short-termleasesandleasesoflow-valueassetsTheGroupconsidersaleasethat,atthecommencementdateofthelease,hasaleasetermof12monthsorless,anddoesnotcontainanypurchaseoptionasashort-termlease;andaleaseforwhichthevalueoftheindividualunderlyingassetisnotmorethanRMB40,000whenitisnewasaleaseoflow-valueassets.IftheGroupsubleasesanasset,orexpectstosubleaseanasset,theheadleasedoesnotqualifyasaleaseofalow-valueasset.TheGroupdoesnotrecognisetheright-of-useassetsandleaseliabilitiesforshort-termleasesandlow-valueassets.TheGrouprecognisesleasepaymentsonshort-termleasesandleasesoflow-valueassetsinthecostsoftherelatedassetorprofitorlossonastraight-linebasisovertheleaseterm.COVID-19relatedrentconcessionsForrentconcessionssuchasrentremissionordeferredpaymentreachedbetweentheGroupandthelessorontheexistingleasecontractdirectlycausedbytheCOVID-19epidemic,andifthefollowingconditionsaremetatthesametime,theGroupadoptsasimplifiedmethodforleasing:
(1)comparedbeforetheconcession,therentalconsiderationafterconcessionisreducedor
basicallyunchanged;
(2)theconcessionisonlyforleasepaymentspayablebefore30June2022;
(3)aftercomprehensiveconsiderationofqualitativeandquantitativefactors,nosignificant
changeinothertermsandconditionsoftheleaseisconcluded.TheGroupdoesnotevaluatewhethertheleasehasbeenchanged.Itwillcontinuetocalculatetheinterestexpenseoftheleaseliabilitiesatthesamediscountratebeforetheconcessionandrecorditintothecurrentprofitandloss.Itwillcontinuetocalculatethedepreciationoftheright-of-useassetsinthesamewayasbeforetheconcession.Forrentremissionsincurred,theGrouptakestheremittedrentasthevariableleasepayment,whentheoriginalrentpaymentobligationisrelievedbytheagreementonconcession,thecostorexpenseoftherelevantassetsshallbeoffsetaccordingtotheundiscountedamount,andtheleaseliabilitiesshallbe
adjustedaccordinglyintheconcessionagreement,etc.Forrentextensionpaymentincurred,theGroupwilloffsettheleaseliabilityrecognisedintheearlierperiodwhenitisactuallypaid.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
29.Leases(Continued)
AslessorAleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanunderlyingasset,exceptthataleaseisclassifiedasanoperatingleaseattheinceptiondate.TheGroup,asanintermediatelessor,classifiesthesubleasebyreferencetotheright-of-useassetarisingfromtheheadlease.AslessorofanoperatingleaseRentincomeunderanoperatingleaseisrecognisedonastraight-linebasisovertheleaseterm,throughprofitorloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleasereceivablesarechargedtoprofitorlossasincurred.TheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyprepaidoraccruedleasepaymentsrelatingtotheoriginalleaseaspartoftheleasepaymentsforthenewlease.
30.Dividenddistribution
Cashdividenddistributionisrecognisedasaliabilityintheperiodinwhichitisapprovedbyshareholdersattheannualshareholders’meeting.
31.Fairvaluemeasurement
TheGroupmeasuresitsequityinvestmentsatfairvalueateachbalancesheetdate.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthattheorderlytransactiontoselltheassetortransfertheliabilitytakesplaceeitherintheprincipalmarketfortheassetorliability,orintheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheGroupatthemeasurementdate.Thefairvalueofanassetoraliabilityismeasuredusingtheassumptionsthatmarketparticipantswouldusewhenpricingtheassetorliability,assumingthatmarketparticipantsactintheirbesteconomicinterest.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant’sabilitytogenerateeconomicbenefitsbyusingtheassetinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.TheGroupusesvaluationtechniquesthatareappropriateinthecircumstancesandforwhichsufficientdataandotherinformationareavailabletomeasurefairvalue,maximisingtheuseofrelevantobservableinputsandminimisingtheuseofunobservableinputs.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
31.Fairvaluemeasurement(Continued)
Allassetsandliabilitiesforwhichfairvalueismeasuredordisclosedinthefinancialstatementsarecategorisedwithinthefairvaluehierarchybasedonthelowestlevelinputthatissignificanttothefairvaluemeasurementasawhole:
Level1–basedonquotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities;Level2–basedonvaluationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisobservable,eitherdirectlyorindirectly;Level3–basedonvaluationtechniquesforwhichthelowestlevelinputthatissignificanttothefairvaluemeasurementisunobservable.Forassetsandliabilitiesthataremeasuredatfairvalueinthefinancialstatementsonarecurringbasis,theGroupdetermineswhethertransfershaveoccurredbetweenlevelsinthehierarchybyreassessingcategorisationateachbalancesheetdate.
32.Segmentinformation
TheGroupidentifiesoperatingsegmentsbasedontheinternalorganizationstructure,managementrequirementsandinternalreportingsystem,anddisclosessegmentinformationofreportablesegmentswhichisdeterminedonthebasisofoperatingsegments.AnoperatingsegmentisacomponentoftheGroupthatsatisfiesallofthefollowingconditions:
(1)thecomponentisabletoearnrevenuesandincurexpensesfromitsordinaryactivities;(2)thecomponent’soperatingresultsareregularlyreviewedbytheGroup’smanagementtomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformance,and
(3)forwhichtheinformationonfinancialposition,operatingresultsandcashflowsisavailabletotheGroup.Iftwoormoreoperatingsegmentshavesimilareconomiccharacteristicsandsatisfycertainconditions,theyareaggregatedintoonesingleoperatingsegment.
33.Significantaccountingjudgementsandestimates
Thepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffectthereportedamountsofrevenue,expenses,assetsandliabilities,andtheiraccompanyingdisclosures,andthedisclosureofcontingentliabilitiesatthebalancesheetdate.Uncertaintyabouttheseassumptionsandestimatescouldresultinoutcomesthatcouldrequireamaterialadjustmenttothecarryingamountsoftheassetsorliabilitiesaffectedinthefuture.JudgementsIntheprocessofapplyingtheGroup’saccountingpolicies,managementhasmadethefollowingjudgements,whichhavethemostsignificanteffectontheamountsrecognisedinthefinancialstatements:
Operatingleases–aslessorTheGrouphasenteredintoleaseagreementsonitsinvestmentpropertyportfolio.TheGrouphasdeterminedtheseleasestobeoperatingleases,basedonanevaluationofthetermsandconditionsoftheagreements,thatitretainssubstantiallyallthesignificantrisksandrewardsofownershipoftheseproperties.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
33.Significantaccountingjudgementsandestimates(Continued)
Judgements(Continued)BusinessmodelsTheclassificationoffinancialassetsatinitialrecognitiondependsontheGroup'sbusinessmodelformanagingfinancialassets.Whendeterminingthebusinessmodel,theGroupconsidersthemethodstoincludeevaluationandreportfinancialassetperformancetokeymanagement,therisksaffectingtheperformanceoffinancialassetsandtheriskmanagement,andthemannerinwhichtherelevantmanagementreceivesremuneration.Whenassessingwhethertheobjectiveistocollectcontractualcashflows,theGroupneedstoanalyseandjudgethereason,timing,frequencyandvalueofthesalebeforethematuritydateofthefinancialassets.ContractualcashflowcharacteristicsTheclassificationoffinancialassetsatinitialrecognitiondependsonthefinancialasset’scontractualcashflowcharacteristics,andthejudgementsonwhetherthecontractualcashflowsaresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,includingwhenassessingthemodificationofthetimevalueofmoney,thejudgementonwhetherthereisanysignificantdifferencefromthebenchmarkcashflowandwhetherthefairvalueoftheprepaymentfeaturesisinsignificantforfinancialassetswithprepaymentfeatures,etc.EstimationuncertaintyThekeyassumptionsconcerningthefutureandotherkeysourcesofestimationuncertaintyatthebalancesheetdate,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthefutureaccountingperiods,aredescribedbelow.ImpairmentoffinancialinstrumentsTheGroupusestheexpectedcreditlossmodeltoassesstheimpairmentoffinancialinstruments.TheGroupisrequiredtoperformsignificantjudgementandestimationandtakeintoaccountallreasonableandsupportableinformation,includingforward-lookinginformation.Whenmakingsuchjudgementsandestimates,theGroupinferstheexpectedchangesinthedebtor'screditriskbasedonhistoricalrepaymentdatacombinedwitheconomicpolicies,macroeconomicindicators,industryrisksandotherfactors.Thedifferentestimatesmayimpacttheimpairmentassessment,andtheprovisionforimpairmentmayalsonotberepresentativeoftheactualimpairmentlossinthefuture.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
33.Significantaccountingjudgementsandestimates(Continued)
Estimationuncertainty(Continued)Impairmentofnon-currentassetsotherthanfinancialassets(otherthangoodwill)TheGroupassesseswhetherthereareanyindicationsofimpairmentforallnon-currentassetsotherthanfinancialassetsatthebalancesheetdate.Intangibleassetswithindefiniteusefullivesaretestedforimpairmentannuallyandatothertimeswhensuchanindicationexists.Othernon-currentassetsotherthanfinancialassetsaretestedforimpairmentwhenthereareindicationsthatthecarryingamountsmaynotberecoverable.Animpairmentexistswhenthecarryingamountofanassetorassetgroupexceedsitsrecoverableamount,whichisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromit.Thecalculationofthefairvaluelesscostsofdisposalbasedonavailabledatafrombindingsalestransactionsinanarm’slengthtransactionofsimilarassetsorobservablemarketpriceslessincrementalcostsfordisposingoftheassets.Whenthecalculationsofthepresentvalueofthefuturecashflowsexpectedtobederivedfromanassetorassetgroupareundertaken,managementmustestimatetheexpectedfuturecashflowsfromtheassetorassetgroupandchooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.FurtherdetailsareincludedinNotesV(13),(14),(15),(16)and(17).ImpairmentofgoodwillTheGroupdetermineswhethergoodwillisimpairedatleastonanannualbasis.Thisrequiresanestimationofthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheassetgroups(setsofassetgroups)towhichthegoodwillisallocated.EstimatingthepresentvaluerequirestheGrouptomakeanestimateoftheexpectedfuturecashflowsfromtheassetgroups(setsofassetgroups)andalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.FurtherdetailsareincludedinNoteV(18).DeferredtaxassetsDeferredtaxassetsarerecognisedforallunusedtaxlossestotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthelossescanbeutilised.Significantmanagementjudgementisrequiredtodeterminetheamountofdeferredtaxassetsthatcanberecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.Fairvalueofnon-listedequityinvestmentsTheunlistedequityinvestmentshavebeenvaluedbasedontheexpectedcashflowsdiscountedatcurrentratesapplicableforitemswithsimilartermsandriskcharacteristics.ThisvaluationrequirestheGrouptomakeestimatesaboutexpectedfuturecashflows,creditrisk,volatilityanddiscountrates,andhencetheyaresubjecttouncertainty.LoyaltypointsTheGroupmakesreasonableestimateofthestand-alonesellingpriceoftheloyaltypointsbytakingintoaccountallrelevantinformation,suchasthestand-alonesellingpricesforthecustomertoacquireadditionalfreegoodsorservicesorthediscountsenjoyedbythecustomerusingtheloyaltypointsandthepossibilityforthecustomertoexercisetheredemptionright.TheGroupconsidersthelikelihoodforthecustomertoexercisetheredemptionrightbasedonthehistoricaldataofpointredemption,thecurrentpointredemptionandthefuturechangesforthecustomer,thefuturetrendofthemarketandotherfactors.TheGroupre-evaluatesthestand-alonesellingpriceofloyaltypointsatleastoneachbalancesheetdateanddetermines
thetransactionpricetobeallocatedtotheloyaltypointsbasedonthestand-alonesellingpriceofthere-evaluatedloyaltypoints.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
33.Significantaccountingjudgementsandestimates(Continued)
Estimationuncertainty(Continued)SaleswitharightofreturnTheGroupmakesreasonableestimateofagroupofcontractswithsimilarcharacteristicsaccordingtothesalesreturnhistoricaldata,thecurrentsalesreturnsituation,aswellascustomerchanges,marketchangesandotherrelevantinformation.Estimatesoftheexpectedreturnratemaynotberepresentativeoftheactualreturnsinthefuture.TheGroupre-evaluatesthereturnrateatleastoneachbalancesheetdateandupdatesthemeasurementoftherefundliabilitiesandtheright-of-returnassetsbasedonthere-evaluatedreturnrate.WarrantiesTheGroupmakesreasonableestimateofthewarrantyrateofagroupofcontractswithsimilarcharacteristicsbasedonhistoricalwarrantydata,currentwarranty,aswellasallrelevantinformationsuchasproductimprovements,marketchanges.Estimatesoftheexpectedwarrantyratemaynotberepresentativeoftheactualwarrantyrateinthefuture.TheGroupre-evaluatesthewarrantyrateatleastoneachbalancesheetdateandupdatesthemeasurementoftheprovisionsbasedonthere-evaluatedwarrantyrate.AssessmentofconstrainsonvariableconsiderationTheGroupestimates,withinareasonablequantity,theamountofvariableconsiderationthatmayoccurandthelikelihoodbytakingintoaccountallreasonablyavailableinformation,includinghistoricalinformation,currentinformation,andpredictiveinformation.TheGroupincludesinthetransactionpricesomeorallofanamountofvariableconsiderationestimatedonlytotheextentthatitishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccurwhentheuncertaintyassociatedwiththevariableconsiderationissubsequentlyresolved.Inassessingwhetheritishighlyprobablethatasignificantreversalintheamountofcumulativerevenuerecognisedwillnotoccuroncetheuncertaintyrelatedtothevariableconsiderationissubsequentlyresolved,theGroupconsidersboththelikelihoodandthemagnitudeoftherevenuereversal.Oneachbalancesheetdate,theGroupupdatestheestimatedtransactionprice(includingupdatingitsassessmentofwhetheranestimateofvariableconsiderationisconstrained)toreflectthecircumstancespresentattheendofthereportingperiodandthechangesincircumstancesduringthereportingperiod.Lessee’sincrementalborrowingrateIftheinterestrateimplicitintheleasecannotbereadilydetermined,theGroupmeasurestheleaseliabilityatthepresentvalueoftheleasepaymentsdiscountedusingthelessee’sincrementalborrowingrate.Accordingtotheeconomicenvironment,theGrouptakestheobservableinterestrateasthereferencebasisfordeterminingtheincrementalborrowingrate,thenadjuststheobservableinterestratebasedonitsowncircumstances,underlyingassets,leasetermsandamountsofleaseliabilitiestodeterminetheapplicableincrementalborrowingrate.
IIISummaryofsignificantaccountingpoliciesandaccountingestimates(Continued)
34.Changesinaccountingpoliciesandaccountingestimates
ChangesinaccountingpoliciesChangesinadoptionofCOVID-19relatedrentconcessionsAccordingtotheaccountingprocessregulationsonrentconcessionsrelatedtoCOVID-19(“theprocessregulations”),thesimplifiedmethodcouldbeselectedforrentconcessionsrelatedtoCOVID-19onthebasisoftheprocessregulations.Asalessee,theGrouphasadoptedthesimplifiedmethodintheprocessregulationsin2020.AccordingtothechangesinappliancescopeoftheaccountingprocessregulationsonrentconcessionsrelatedtoCOVID-19,therentconcessionperiodapplicabletothesimplifiedmethodisadjustedto"theconcessionisonlyfortheleasepaymentspayableincurredbeforeJune30,2022".Asalessee,theadoptionofthesimplifiedmethodaftertheadjustmentofthechangesoftheappliancescopeisconsistentwithitbeforethechangeforthereleventleases.TheamountofrentconcessionsincludedintheprofitfortheyearisRMB2,617,562.37.
IVTaxation
1.Maincategoriesandratesoftaxes:
Categories
| Categories | Taxbase | Taxrate |
Corporateincometax(“CIT”)
| Corporateincometax(“CIT”) | Taxableincome | 15%,20%,25% |
Value-addedtax(“VAT”)
| Value-addedtax(“VAT”) | Taxablevalue-addedamount(TaxpayableiscalculatedusingthetaxablesalesamountmultipliedbytheeffectivetaxratelessdeductibleVATinputofthecurrentperiod) | 0%,3%,5%,6%,9%,10%,13% |
Citymaintenanceandconstructiontax
| Citymaintenanceandconstructiontax | AmountofVATpaid | 5%,7% |
Educationalsurcharge
| Educationalsurcharge | AmountofVATpaid | 3% |
Localeducationalsurcharge
| Localeducationalsurcharge | AmountofVATpaid | 2% |
2.Taxpreferences
IVTaxation(Continued)
2.Taxpreferences(Continued)
In2015,subsidiariesoftheCompany,includingSinopharmHoldingGuilinCo.,Ltd.(“SinopharmGuilin”),SinopharmHoldingGuigangCo.,Ltd.(“SinopharmGuigang”),SinopharmHoldingYulinCo.,Ltd.(“SinopharmYulin”),SinopharmHoldingBaiseCo.,Ltd.(“SinopharmBaise”)andSinopharmHoldingWuzhouCo.,Ltd.(“SinopharmWuzhou”),wereapprovedtoenjoyataxconcessionforWesternDevelopmentatareducedCITrateof15%.AccordingtotheCircularoftheMinistryofFinance,theStateAdministrationofTaxation,theGeneralAdministrationofCustomsonIssuesConcerningTaxPoliciesfortheFurtherDevelopmentoftheWesternRegions(Caishui[2011]No.58)andtheAnnouncementontheContinuationoftheIncomeTaxPolicyfortheEnterpriseinWesternRegionDevelopment(CaiZhengBu[2020]No.23),theapplicableperiodisfrom1January2015to31December2030.In2017,accordingtoCaiShui[2011]No.58andtheAnnouncementontheContinuationoftheIncomeTaxPolicyfortheEnterpriseinWesternRegionDevelopment(CaiZhengBu[2020]No.23),SinopharmHoldingGuodaInnerMongoliaPharmacyChainStoreCo.,Ltd.(“GuodaInnerMongolia”)andInnerMongoliaGuodaMedicineCo.,Ltd.(“InnerMongoliaMedicine”)couldenjoyareducedCITrateof15%from1January2017to31December2030.In2019,accordingtoCaiShui[2011]No.58andtheAnnouncementontheContinuationoftheIncomeTaxPolicyfortheEnterpriseinWesternRegionDevelopment(CaiZhengBu[2020]No.23),SinopharmHoldingQinzhouCo.,Ltd.(“SinopharmQinzhou”),SinopharmHoldingHezhouCo.,Ltd.(“SinopharmHezhou”),SinopharmHoldingHechiCo.,Ltd.(“SinopharmHechi”),GuodaPharmacy(Pu’er)SongmaoCo.,Ltd.(“GuodaPu’er”)couldenjoyareducedCITrateof15%from1January2019to31December2030.In2021,accordingtoCaiShui[2011]No.58andtheAnnouncementontheContinuationoftheIncomeTaxPolicyfortheEnterpriseinWesternRegionDevelopment(CaiZhengBu[2020]No.23),YunnanGuodaDishengPharmacyChainCo.,Ltd.(“DishengPharmacyChain”),YunnanGuodaDishengMedicineCo.,Ltd.("DishengMedicine"),SinopharmHoldingMedicalSupplyChainService(Guangxi)Co.,Ltd.couldenjoyareducedCITrateof15%from1January2021to31December2030.In2021,accordingtotheNoticeontheImplementationofInclusiveTaxReductionandExemptionPoliciesforSmallandMicroEnterprises(CaiShui[2019]No.13)andAnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationontheImplementationofPreferentialIncomeTaxPoliciesforSmallandMicroEnterprisesandIndividualIndustrialandCommercialHouseholds([2021]No.12),subsidiariesoftheCompanylistedbelowqualifiedfortheconditionsofsmalllow-profitenterprises,whichthetaxableincomeofthesesubsidiariesdoesnotexceedRMB3million.Hence,fortheportionofannualtaxableincomenotexceedingRMB1million,itshallbeincludedinthetaxableincomeof12.5%,andenterpriseincometaxshallbepaidattherateof20%;fortheportionofannualtaxableincomeexceedingRMB1millionbutnotexceedingRMB3million,itshallbeincludedinthetaxableincomeof50%,andenterpriseincometaxshallbepaidattherateof20%.
IVTaxation(Continued)
3.Taxpreferences(Continued)
TheCompany’ssubsidiarieswhichqualifiedfortheconditionsofsmalllow-profitenterprisesincludingSinopharmHoldingGuigangPharmacyCo.,Ltd.(“SinopharmGuigangPharmacy”),ShanghaiGuodaDongshengPharmacyCo.,Ltd.(“ShanghaiDongsheng”),ShanghaiGuodaRuijingPharmacyCo.,Ltd.(“ShanghaiRuijing”),SinopharmHoldingGuodaPharmacyUlanqabCo.,Ltd.(“GuodaUlanqab”),ShanghaiGuodaDongxinPharmacyCo.,Ltd.(“ShanghaiDongxin”),ShanghaiGuodaShanghongQibaoPharmacyCo.,Ltd.(“ShanghaiShanghong”),ShanghaiGuodongTraditionalChineseMedicineClinicCo.,Ltd.(“ShanghaiGuodong”),SinopharmGuodaYongshengPharmacy(Shanghai)Co.,Ltd.(“GuodaYongsheng”),GuodaPharmacyManchuriaCo.,Ltd.(“GuodaManchuria”),ZhejiangSinopharmPharmacyDongshanPharmacyCo.,Ltd.(“ZhejiangDongshan”),SinopharmHoldingGuodaPharmacyGuangzhouChainCo.,Ltd.(“GuodaGuangzhou”),TaishanSinopharmHoldingGuodaQunkangPharmacyChainStoreCo.,Ltd.(“GuodaTaishan”),GuodaPharmacy(Rizhao)Co.,Ltd.(“GuodaRizhao”),SinopharmHoldingGuodaPharmacyHulunBuirCo.,Ltd.(“GuodaHulunBuir”),SinopharmHoldingGuodaPharmacyBayannurCo.,Ltd.(“GuodaBayannur”),SinopharmHoldingBaiyiPharmacyGuangxiCo.,Ltd.(“BaiyiPharmacy”),SinopharmAccord(Guangzhou)MedicineCo.,Ltd.(“GuangzhouMedicine”),GuangxiGuodaPharmaceuticalConsultingChainCo.,Ltd.(“GuangxiConsulting”),LiaoningGuodaHealthPharmacyCo.,Ltd.(“LiaoningHealthPharmacy”),LiaoningHuludaoGuodaPharmacyCo.,Ltd.(“LiaoningHuludao”),ChangzhiWanminDrugStoreCo.,Ltd.(“ChangzhiWanmin”),ShanxiGuodaWanminChainClinicManagementCo.,Ltd.(“WanminChain”),GuodaWanminHuiminKangweiPharmacyLvliangCo.,Ltd.(“HuiminLvliang”),ShanghaiFumeiXuhuiPharmacyCo.,Ltd.(“FumeiXuhui”),JilinDonglongPharmaceuticalLogisticsCo.,Ltd.(“JilinDonglong”),ShanghaiPudongYanghetangTraditionalChineseMedicineClinicCo.,Ltd.(“PudongYanghetang”),YanjiXiangheMedicineCo.,Ltd.(“YanjiXianghe”),HebeiChengdaFangyuanMedicineChainCo.,Ltd.(“HebeiChengdaFangyuan”),ShandongChengdaFangyuanMedicineChainCo.,Ltd.(“ShandongChengdaFangyuan”),LiaoningChengdaFangyuanTechnicalTrainingSchool,andDalianZhengdaPharmaceuticalCo.,Ltd.(“DalianZhengda”),etc.
VNotestotheconsolidatedfinancialstatements
1.Cashandbankbalances
31December2021
| 31December2021 | 31December2020 |
Cashonhand
| Cashonhand | 4,642,730.62 | 6,707,125.90 | |
| Cashatbanks | 4,728,869,491.73 | 5,398,406,132.09 | |
| Othercashbalances(1) | 392,646,858.59 | 593,091,037.88 |
5,126,159,080.94
| 5,126,159,080.94 | 5,998,204,295.87 | ||
| Including:Totalamountrestrictedforuseduetomortgage,pledgeorfreezing,etc. | - | 66,956,993.60 |
(1)Asat31December2021,theGroup'sothercashbalanceincludes:RMB351,801,571.62(31December2020:RMB492,734,978.75)isdepositsforbankacceptancebills,whichisacertainamountofdepositpaidwhendrawingbankacceptancebills;RMB11,456,766.10(31December,2020:RMB27,465,331.50)ismedicalreservefundsforemergencymedicalsupplies,whichissupervisedbythebank;RMB29,388,520.87(31December,2020:RMB72,890,727.63.RMB66,956,993.60isfreezingbankdepositsduetolitigation,whichwasunfrozenin2021)istheotherrestrictedcashbalances.
(1)Asat31December2021,theGroup'sothercashbalanceincludes:RMB351,801,571.62(31December2020:RMB492,734,978.75)isdepositsforbankacceptancebills,whichisacertainamountofdepositpaidwhendrawingbankacceptancebills;RMB11,456,766.10(31December,2020:RMB27,465,331.50)ismedicalreservefundsforemergencymedicalsupplies,whichissupervisedbythebank;RMB29,388,520.87(31December,2020:RMB72,890,727.63.RMB66,956,993.60isfreezingbankdepositsduetolitigation,whichwasunfrozenin2021)istheotherrestrictedcashbalances.Asat31December2021and31December2020,theGrouphasnocashandbankbalancesdepositedabroad.
Asat31December2021and31December2020,theGrouphasnocashandbankbalancesdepositedabroad.Currentdepositsearninterestattheratebasedoncurrentdepositinterestrates.Maturitiesofshort-termtimedepositsrangefrom1monthto6monthsdependingonthefundarrangementsoftheGroup,andthedepositsearninterestattherespectivedepositrates.
2.Notesreceivable
Currentdepositsearninterestattheratebasedoncurrentdepositinterestrates.Maturitiesofshort-termtimedepositsrangefrom1monthto6monthsdependingonthefundarrangementsoftheGroup,andthedepositsearninterestattherespectivedepositrates.31December2021
| 31December2021 | 31December2020 |
Bankacceptancebills
| Bankacceptancebills | 32,490,612.49 | - | |
| Commercialacceptancebills | 647,705,768.08 | 623,594,997.36 | |
| 680,196,380.57 | 623,594,997.36 |
Less:Baddebtprovisionfornotes
receivable
| Less:Baddebtprovisionfornotesreceivable | - | 1,479,520.32 |
680,196,380.57
| 680,196,380.57 | 622,115,477.04 |
VNotestotheconsolidatedfinancialstatements(Continued)
2.Notesreceivable(Continued)
Thecarryingamountofnotesreceivablethataffectedthechangesinprovisionthisyearisasfollows:
Thecarryingamountofnotesreceivablethataffectedthechangesinprovisionthisyearisasfollows:
31December2021
| 31December2021 | |||||
| Carryingamount | Baddebtprovisions | BookValue | |||
| Amount | Proportion | Amount | Proportion | ||
Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics)
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 680,196,380.57 | 100% | - | - | 680,196,380.57 |
680,196,380.57
| 680,196,380.57 | 100% | - | - | 680,196,380.57 |
31December2020
| 31December2020 | |||||
| Carryingamount | Baddebtprovisions | BookValue | |||
| Amount | Proportion | Amount | Proportion | ||
Itemsforwhichprovisionforbaddebtsisrecognisedindividually
| Itemsforwhichprovisionforbaddebtsisrecognisedindividually | 27,634,855.48 | 4.43% | (1,479,520.32) | 5.35% | 26,155,335.16 | ||
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 595,960,141.88 | 95.57% | - | - | 595,960,141.88 |
623,594,997.36
| 623,594,997.36 | 100.00% | (1,479,520.32) | 0.24% | 622,115,477.04 |
VNotestotheconsolidatedfinancialstatements(Continued)
2.Notesreceivable(Continued)
At31December2021,theGrouphadnoindividualprovisionforbaddebtsonnotesreceivable.
At31December2021,theGrouphadnoindividualprovisionforbaddebtsonnotesreceivable.At31December2020,notesreceivablethatareindividuallyassessedforprovisionsareasfollows:
At31December2020,notesreceivablethatareindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | Expectedcreditlossrate | Assessmentforimpairment |
ClientA
| ClientA | 25,673,156.00 | (1,471,457.31) | 5.73% | Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofreclaim. |
ClientB
| ClientB | 1,961,699.48 | (8,063.01) | 0.41% | Thedrawerhashistoricalcreditdefaults;thenotesreceivableareexpectedtobeatriskofreclaim. |
27,634,855.48
| 27,634,855.48 | (1,479,520.32) |
Changesinprovisionforbaddebtsonnotesreceivablearepresentedasfollows:
Changesinprovisionforbaddebtsonnotesreceivablearepresentedasfollows:
Openingbalance
| Openingbalance | Increaseintheyear | Reversalintheyear | Closingbalance |
2021
| 2021 | 1,479,520.32 | - | (1,479,520.32) | - |
2020
| 2020 | - | 1,479,520.32 | - | 1,479,520.32 |
Asat31December2021and31December2020,theGrouphadnopledgednotesreceivable.
Asat31December2021and31December2020,theGrouphadnopledgednotesreceivable.NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2021and31December2020areasfollows:
NotesreceivableendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2021and31December2020areasfollows:
31December2021
| 31December2021 | 31December2020 | |||
| Derecognised | Notderecognised | Derecognised | Notderecognised | |
Bankacceptance
bills
| Bankacceptancebills | - | 31,886,681.19 | - | - | |
| Commercialacceptancebills | - | - | - | 4,095,283.92 |
31,886,681.19
| 31,886,681.19 | 4,095,283.92 |
VNotestotheconsolidatedfinancialstatements(Continued)
2.Notesreceivable(Continued)
Asat31December2021and31December2020,notesreceivablethatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydateareasfollows:
Asat31December2021and31December2020,notesreceivablethatwereconvertedintoaccountsreceivableduetothedrawer’sinabilitytosettlethenotesonthematuritydateareasfollows:
31December2021
| 31December2021 | 31December2020 |
Commercialacceptancebills
| Commercialacceptancebills | 8,647,245.81 | 2,276,824.52 |
3.Accountsreceivable
Thecreditperiodforaccountsreceivablenormallyis3months.Accountsreceivableareinterest-free.Anaginganalysisofaccountsreceivableisasfollows:
| 31December2021 | 31December2020 |
Within1year
| Within1year | 15,860,578,973.02 | 13,575,070,031.31 |
| 1to2years | 181,098,453.86 | 263,187,281.70 |
| 2to3years | 26,520,111.62 | 31,013,755.63 |
| Over3years | 27,828,171.64 | 23,213,398.71 |
| 16,096,025,710.14 | 13,892,484,467.35 |
Less:Baddebtprovisionforaccountsreceivable
| Less:Baddebtprovisionforaccountsreceivable | 131,422,364.23 | 92,513,453.13 |
15,964,603,345.91
| 15,964,603,345.91 | 13,799,971,014.22 |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Thecarryingamountofaccountsreceivablethataffectedthechangesinprovisionthisyearisasfollows:
Thecarryingamountofaccountsreceivablethataffectedthechangesinprovisionthisyearisasfollows:
31December2021
| 31December2021 | |||||
| Carryingamount | Baddebtprovisions | Bookvalue | |||
| Amount | Proportion | Amount | Proportion | ||
Itemsforwhichprovisionforbaddebtsisrecognisedindividually
| Itemsforwhichprovisionforbaddebtsisrecognisedindividually | 1,154,059,084.62 | 7.17% | (78,449,701.36) | 6.80% | 1,075,609,383.26 | |
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 14,941,966,625.52 | 92.83% | (52,972,662.87) | 0.35% | 14,888,993,962.65 |
16,096,025,710.14
| 16,096,025,710.14 | 100.00% | (131,422,364.23) | 0.82% | 15,964,603,345.91 |
31December2020
| 31December2020 | |||||
| Carryingamount | Baddebtprovisions | Bookvalue | |||
| Amount | Proportion | Amount | Proportion | ||
Itemsforwhichprovisionforbaddebtsisrecognisedindividually
| Itemsforwhichprovisionforbaddebtsisrecognisedindividually | 674,370,776.75 | 4.85% | (29,223,931.45) | 4.33% | 645,146,845.30 | |
| Itemsforwhichprovisionforbaddebtsisrecognisedbygroup(creditriskcharacteristics) | 13,218,113,690.60 | 95.15% | (63,289,521.68) | 0.48% | 13,154,824,168.92 |
13,892,484,467.35
| 13,892,484,467.35 | 100.00% | (92,513,453.13) | 0.67% | 13,799,971,014.22 |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
At31December2021,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
At31December2021,accountsreceivablethatareindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | Expectedcreditlossrate | Assessmentforimpairment |
Receivableofmedicalinsurance
| Receivableofmedicalinsurance | 831,256,560.02 | (8,047,617.79) | 0.97% | Thereceivableofmedicalinsurancehaslower-tierdefaultrisk. |
ClientA
| ClientA | 50,201,932.55 | (50,201,932.55) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andisrelatedtomultiplelawsuits,withlower-tierrecoverability. |
| ClientB | 11,559,178.29 | (11,559,178.29) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andisrelatedtomultiplelawsuits,withlower-tierrecoverability. |
| ClientC | 2,447,976.74 | (2,447,976.74) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andisinbankruptcyliquidation. |
| Others | 258,593,437.02 | (6,192,995.99) | 2.39% | Partofthereceivablestakeslongerthanusualtorecover,andhasriskofrecoverability. |
1,154,059,084.62
| 1,154,059,084.62 | (78,449,701.36) |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
At31December2020,accountsreceivablethatwereindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
At31December2020,accountsreceivablethatwereindividuallysignificantandindividuallyassessedforprovisionsareasfollows:
Carryingamount
| Carryingamount | Baddebtprovision | Expectedcreditlossrate | Assessmentforimpairment |
Receivableofmedicalinsurance
| Receivableofmedicalinsurance | 488,783,757.67 | (6,626,589.08) | 1.36% | Thereceivableofmedicalinsurancehaslower-tierdefaultrisk. |
| ClientA | 11,559,178.29 | (11,559,178.29) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andrelatedtomultiplelawsuits,withlower-tierrecoverability. |
| ClientB | 2,447,976.74 | (2,447,976.74) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withahighriskofbankruptcyorfinancialrestructuring. |
| ClientC | 2,365,253.03 | (2,365,253.03) | 100.00% | Thedebtorhadirregularoperationssubjecttoseverefinancialdifficulties,andhasbeenplacedonanationallistofdefaulters,withahighriskofgoingbankruptcyorfinancialrestructuring. |
| Others | 169,214,611.02 | (6,224,934.31) | 3.68% | Partofthereceivablestakeslongerthanusualtorecover,andhasriskofrecoverability |
674,370,776.75
| 674,370,776.75 | (29,223,931.45) |
TheaccountsreceivableforwhichtheGrouprecognisedprovisionforbaddebtsbycreditriskcharacteristicsarepresentedasfollows:
TheaccountsreceivableforwhichtheGrouprecognisedprovisionforbaddebtsbycreditriskcharacteristicsarepresentedasfollows:
31December2021
| 31December2021 | 31December2020 | |||||
| Estimatedgrosscarryingamountatdefault | Expectedcreditlossratio | Lifetimeexpectedcreditloss | Estimatedgrosscarryingamountatdefault | Expectedcreditlossratio | Lifetimeexpectedcreditloss | |
Within1year
| Within1year | 14,735,394,393.03 | 0.24% | (36,032,738.61) | 12,930,648,987.23 | 0.20% | (26,043,994.99) | |
| 1to2years | 180,285,029.67 | 5.46% | (9,848,846.12) | 257,905,763.20 | 11.04% | (28,463,763.63) | |
| 2to3years | 20,156,291.29 | 22.24% | (4,482,412.04) | 21,112,155.47 | 17.39% | (3,671,293.61) | |
| Over3years | 6,130,911.53 | 42.55% | (2,608,666.10) | 8,446,784.70 | 60.50% | (5,110,469.45) |
14,941,966,625.52
| 14,941,966,625.52 | (52,972,662.87) | 13,218,113,690.60 | (63,289,521.68) |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Changesinprovisionforbaddebtsarepresentedasfollows:
Openingbalance
| Openingbalance | Reversalofwrite-offinpreviousyears | Increasesintheyear | Increasesinmerger | Reversalintheyear | Write-offintheyear | Closingbalance |
2021
| 2021 | 92,513,453.13 | - | 58,049,541.91 | 183,384.10 | (14,558,622.63) | (4,765,392.28) | 131,422,364.23 |
2020
| 2020 | 45,916,730.47 | 167,797.87 | 29,942,655.08 | 25,219,814.78 | (8,733,545.07) | - | 92,513,453.13 |
Accountsreceivablewrittenoffin2020areanalysedbelow:
Accountsreceivablewrittenoffin2020areanalysedbelow:
Natureofthe
receivable
| Natureofthereceivable | Amount | Reason | Write-offprocedures | Relatedpartytransactionornot |
ClientA
| ClientA | Paymentforgoods | 2,161,120.00 | Non-recoverable | Thewrite-offprocedureshavebeencompletedinaccordancewiththeinternalrulesandregulations. | No |
| ClientB | Paymentforgoods | 1,137,547.24 | Non-recoverable | Thewrite-offprocedureshavebeencompletedinaccordancewiththeinternalrulesandregulations. | No |
| ClientC | Paymentforgoods | 862,818.55 | Non-recoverable | Thewrite-offprocedureshavebeencompletedinaccordancewiththeinternalrulesandregulations. | No |
| ClientD | Paymentforgoods | 356,510.26 | Non-recoverable | Thewrite-offprocedureshavebeencompletedinaccordancewiththeinternalrulesandregulations. | No |
| Others | Paymentforgoods | 247,396.23 | Non-recoverable | Thewrite-offprocedureshavebeencompletedinaccordancewiththeinternalrulesandregulations. | No |
4,765,392.28
4,765,392.28Accountsreceivablewrittenoffin2020werenil.
Accountsreceivablewrittenoffin2020werenil.Asat31December2021,thefivelargestaccountsreceivableanalysedbycustomeraresummarisedbelow:
Asat31December2021,thefivelargestaccountsreceivableanalysedbycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
Top1accountreceivable
| Top1accountreceivable | 222,417,747.86 | (1,369,997.89) | 1.38% | |
| Top2accountreceivable | 221,550,040.23 | (2,513,061.33) | 1.38% | |
| Top3accountreceivable | 170,639,289.87 | (131,398.98) | 1.06% | |
| Top4accountreceivable | 162,489,077.59 | (2,071,467.64) | 1.01% | |
| Top5accountreceivable | 121,263,417.42 | (986,163.48) | 0.75% |
898,359,572.97
| 898,359,572.97 | (7,072,089.32) | 5.58% |
VNotestotheconsolidatedfinancialstatements(Continued)
3.Accountsreceivable(Continued)
Asat31December2020,thefivelargestaccountsreceivableanalysedbycustomeraresummarisedbelow:
Asat31December2020,thefivelargestaccountsreceivableanalysedbycustomeraresummarisedbelow:
Amount
| Amount | Baddebtprovisionamount | %ofthetotalaccountsreceivable |
Top1accountreceivable
| Top1accountreceivable | 204,532,139.94 | (895,128.97) | 1.47% | |
| Top2accountreceivable | 197,835,785.38 | (1,600,707.66) | 1.42% | |
| Top3accountreceivable | 169,474,358.70 | (10,782.57) | 1.22% | |
| Top4accountreceivable | 161,218,733.31 | (529,704.61) | 1.16% | |
| Top5accountreceivable | 153,017,656.79 | (558,855.24) | 1.10% |
886,078,674.12
| 886,078,674.12 | (3,595,179.05) | 6.37% |
In2021,theGroupfactoredaportionofaccountsreceivableatamortisedcosttofinancialinstitutions.TheamountofaccountsreceivablederecognisedwasRMB3,529,795,916.53(2020:
RMB5,131,305,168.48),andtheamountoflossrecognisedthroughinvestmentincomewasRMB47,404,044.48(2020:RMB76,142,835.36).
4.Receivablesfinancing
In2021,theGroupfactoredaportionofaccountsreceivableatamortisedcosttofinancialinstitutions.TheamountofaccountsreceivablederecognisedwasRMB3,529,795,916.53(2020:
RMB5,131,305,168.48),andtheamountoflossrecognisedthroughinvestmentincomewasRMB47,404,044.48(2020:RMB76,142,835.36).31December2021
| 31December2021 | 31December2020 |
Bankacceptancebills
| Bankacceptancebills | 1,027,226,940.21 | 1,404,987,700.38 |
Thepledgedreceivablesfinancingsareasfollows:
Thepledgedreceivablesfinancingsareasfollows:
31December2021
| 31December2021 | 31December2020 |
Bankacceptancebills
| Bankacceptancebills | - | 2,620,000.00 |
ReceivablesfinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2021and31December2020areasfollows:
ReceivablesfinancingendorsedordiscountedbytheGrouptootherpartieswhichwerenotyetdueat31December2021and31December2020areasfollows:
31December2021
| 31December2021 | 31December2020 | |||
| Derecognised | Notderecognised | Derecognised | Notderecognised | |
Bankacceptancebills
| Bankacceptancebills | 2,206,355,117.26 | - | 1,613,842,670.80 | - |
Asat31December2021and31December2020,noreceivablesfinancingwereconvertedintoaccountsreceivableduetotheticketissuer’sinabilitytosettlethenotesonthematuritydate.
VNotestotheconsolidatedfinancialstatements(Continued)
5.Advancestosuppliers
Theageofadvancestosuppliersisanalysedbelow:
Theageofadvancestosuppliersisanalysedbelow:
31December2021
| 31December2021 | 31December2020 | ||
| Amount | %oftotalbalance | Amount | %oftotalbalance |
Within1year
| Within1year | 519,225,204.09 | 99.67% | 480,215,111.42 | 99.98% |
| 1to2years | 1,705,341.22 | 0.33% | 42,225.29 | 0.01% |
| 2to3years | - | - | 56,238.00 | 0.01% |
| Over3years | - | - | - | - |
520,930,545.31
| 520,930,545.31 | 100.00% | 480,313,574.71 | 100.00% |
Asat31December2021,thefivelargestadvancestosuppliersanalysedbycustomeraresummarisedbelow:
Asat31December2021,thefivelargestadvancestosuppliersanalysedbycustomeraresummarisedbelow:
Amount
| Amount | Proportionoftotalbalance |
Totalamountofthefivelargestadvancestosuppliers
| Totalamountofthefivelargestadvancestosuppliers | 105,978,569.71 | 20.34% |
Asat31December2020,thefivelargestadvancestosuppliersanalysedbycustomeraresummarisedbelow:
Asat31December2020,thefivelargestadvancestosuppliersanalysedbycustomeraresummarisedbelow:
Amount
| Amount | Proportionoftotalbalance |
Totalamountofthefivelargestadvancestosuppliers
| Totalamountofthefivelargestadvancestosuppliers | 41,313,738.82 | 8.60% |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables
31December2021
| 31December2021 | 31December2020 |
Otherreceivables
| Otherreceivables | 718,089,129.10 | 535,228,747.69 |
Theageofotherreceivablesisanalysedbelow:
Theageofotherreceivablesisanalysedbelow:
31December2021
| 31December2021 | 31December2020 |
Within1year
| Within1year | 641,647,280.72 | 480,713,606.60 | |
| 1to2years | 35,719,505.98 | 41,156,242.37 | |
| 2to3years | 30,667,461.83 | 57,236,236.46 | |
| Over3years | 78,599,676.64 | 25,311,879.53 | |
| 786,633,925.17 | 604,417,964.96 |
Less:Baddebtprovisionforotherreceivables
| Less:Baddebtprovisionforotherreceivables | 68,544,796.07 | 69,189,217.27 |
718,089,129.10
| 718,089,129.10 | 535,228,747.69 |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Categoriesofotherreceivablesbynatureareasfollows:
Categoriesofotherreceivablesbynatureareasfollows:
31December2021
| 31December2021 | 31December2020 |
Deposits
| Deposits | 294,949,777.43 | 287,130,364.44 |
| Pendingrefunds | 129,688,000.00 | - |
| Receivableofpricereductioncompensationandpurchasingrebates | 77,286,467.71 | 85,263,225.16 |
| Receivableofthepharmaceuticalelectronictradingandotherplatforms | 67,123,290.09 | 60,267,511.03 |
| Entrustedborrowings | 46,334,222.24 | 46,334,222.24 |
| Pettycashadvancetoemployees | 20,107,746.36 | 22,994,684.93 |
| Receivableofequitytransactions | 8,980,000.00 | 8,980,000.00 |
| Receivableduefromrelatedparties | 2,412,959.70 | 2,867,594.20 |
| Others | 139,751,461.64 | 90,580,362.96 |
| 786,633,925.17 | 604,417,964.96 |
Less:Baddebtprovisionforotherreceivables
| Less:Baddebtprovisionforotherreceivables | 68,544,796.07 | 69,189,217.27 |
718,089,129.10
| 718,089,129.10 | 535,228,747.69 |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Changesinbaddebtprovisionforthe12-monthexpectedcreditlossesandlifetimeexpectedcreditlossesonotherreceivablesareasfollows:
2021
Stage112-monthexpectedcreditlosses
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
Balanceat1January2021
| Balanceat1January2021 | - | 7,305,149.90 | 61,884,067.37 | 69,189,217.27 |
| Balanceat1January2021duringtheperiod | - | - | - | - |
| --TransfertophaseII | - | - | - | - |
| --TransfertophaseIII | - | - | - | - |
| --TransfertophaseIII | - | - | - | - |
| --BacktophaseII | - | - | - | - |
| --BacktophaseI | - | - | - | - |
| Provisionsduringtheperiod | - | 3,402,082.28 | 6,248,210.57 | 9,650,292.85 |
| Reversalduringtheperiod | - | (7,815,244.23) | (1,288,514.82) | (9,103,759.05) |
| Transferoutduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | - | (1,190,955.00) | (1,190,955.00) |
| Additionduetocombination | - | - | ||
| Reversalofwrite-offinpreviousyears | - | - | - | - |
Balanceat31December2021
| Balanceat31December2021 | - | 2,891,987.95 | 65,652,808.12 | 68,544,796.07 |
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Changesinbaddebtprovisionforthe12-monthexpectedcreditlossesandlifetimeexpectedcreditlossesonotherreceivablesareasfollows:(continued)2020
Stage1
12-monthexpectedcreditlosses
| Stage112-monthexpectedcreditlosses | Stage2Lifetimeexpectedcreditlosses | Stage3Credit-impairedfinancialassets(Lifetimeexpectedcreditlosses) | Total |
Balanceat1January2020
| Balanceat1January2020 | - | 7,107,131.41 | 57,083,427.31 | 64,190,558.72 |
| Balanceat1January2020duringtheperiod | - | - | - | - |
| --TransfertophaseII | - | - | - | - |
| --TransfertophaseIII | - | - | - | - |
| --TransfertophaseIII | - | - | - | - |
| --BacktophaseI | - | - | - | - |
| Provisionsduringtheperiod | - | 2,577,812.48 | 3,656,500.59 | 6,234,313.07 |
| Reversalduringtheperiod | - | (2,904,835.82) | (42,787.50) | (2,947,623.32) |
| Write-backduringtheperiod | - | - | - | - |
| Write-offduringtheperiod | - | (124,000.00) | (4,028.03) | (128,028.03) |
| Additionduetocombination | - | 649,041.83 | 1,190,955.00 | 1,839,996.83 |
| Reversalofwrite-offinpreviousyears | - | - | - | - |
Balanceat31December2020
| Balanceat31December2020 | - | 7,305,149.90 | 61,884,067.37 | 69,189,217.27 |
Thebaddebtprovisionamountofotherreceivablesin2021wasRMB9,650,292.85(2020:
RMB6,234,313.07),withtherecoveredorreversedamountofRMB9,103,759.05(2020:
RMB2,947,623.32).Thewrite-offamountofotherreceivablesin2021wasRMB1,190,955.00(2020:RMB128,028.03).
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Asat31December2021,the5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Asat31December2021,the5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Amount
| Amount | %oftotalamount | Nature | Age | Provisionofbaddebts |
OctapharmaAG（1）
| OctapharmaAG（1） | 129,688,000.00 | 16.49% | Amounttobereturned | Within1year | - |
| GuangdongPharmaceuticalelectronictradingplatform | 57,211,999.38 | 7.27% | Repaymentnotyetclearedfromthepharmaceuticaltradingplatform | Within1year | - |
| SinopharmGroupZhijun(Suzhou)PharmaceuticalCo.,Ltd.(“ZhijunSuzhou”)(1) | 46,334,222.24 | 5.89% | Entrustedborrowings | Over3years | 46,334,222.24 |
| ShenzhenCenterforDiseaseControlandPrevention | 44,509,322.63 | 5.66% | Vaccinedistribution | Within1year | - |
| TCM-IntegratedHospitalofSouthernMedicalUniversity | 20,000,000.00 | 2.54% | Depositfromalogisticsextensionserviceproject | Over3years | - |
297,743,544.25
| 297,743,544.25 | 37.85% | 46,334,222.24 |
Asat31December2020,the5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Asat31December2020,the5partiesthatowedthelargestamountsofotherreceivablebalancesareanalysedbelow:
Amount
| Amount | %oftotalamount | Nature | Age | Provisionofbaddebts |
GuangdongPharmaceuticalelectronictradingplatform
| GuangdongPharmaceuticalelectronictradingplatform | 46,564,683.73 | 7.70% | Repaymentnotyetclearedfromthepharmaceuticaltradingplatform | Within1year | - |
| ZhijunSuzhou | 46,334,222.24 | 7.67% | Entrustedborrowings | 2to3years | 46,334,222.24 |
| AstraZeneca(Wuxi)TradingCo.,Ltd. | 22,486,430.15 | 3.72% | Receivableofpricereductioncompensationandpurchasingrebates | Within1year | - |
| TCM-IntegratedHospitalofSouthernMedicalUniversity | 20,000,000.00 | 3.31% | Depositfromalogisticsextensionserviceproject | Over3years | - |
| ChangchunSocietyMedicalInsuranceManagementBureau | 15,552,920.92 | 2.57% | Medicalinsurancedeposit | Within1year | - |
150,938,257.04
| 150,938,257.04 | 24.97% | 46,334,222.24 |
(1)ThepaymentwasmadeinadvancetoOctapharmaAGofSwitzerlandforthepurchaseofhuman
albumin.Duetotheshortageofsupply,bothagreedtoterminatetheoriginalcontractandreturntheamount.TheamountwasrefundedinJanuary2022.
(2)DuetothepooroperationofZhijunSuzhou,thesolvencyoftheloandecreasedandthecreditrisk
increased,theCompanymadeafullprovisionforbaddebtsonthisentrustedloanoutofprudence.
VNotestotheconsolidatedfinancialstatements(Continued)
6.Otherreceivables(Continued)
Asat31December2020,theamountofgovernmentgrantsreceivableisanalysedbelow:
Asat31December2020,theamountofgovernmentgrantsreceivableisanalysedbelow:
Grantsprogram
| Grantsprogram | Amount | Age | Estimatedcollectiontime,amountandbasis |
ShanghaiPudong
FinanceBureau
| ShanghaiPudongFinanceBureau | Financialsubsidy | 1,260,000.00 | Within1year | Theamountofgovernmentgrantsreceivablehasbeenapprovedandexpectedtobefullyreceivedin2022. |
Therewerenogovernmentgrantsreceivablein2020.
7.Inventories
Therewerenogovernmentgrantsreceivablein2020.Inventoriesbycategoryareanalysedbelow:
Inventoriesbycategoryareanalysedbelow:
31December2021
| 31December2021 | 31December2020 | |||||
| Bookvalue | Provision | Netbookvalue | Bookvalue | Provision | Netbookvalue | |
Rawmaterials
| Rawmaterials | 3,771,510.04 | - | 3,771,510.04 | 1,959,948.73 | - | 1,959,948.73 | |
| Finishedgoods | 7,623,665,381.94 | (11,100,942.38) | 7,612,564,439.56 | 6,292,866,195.61 | (12,997,334.35) | 6,279,868,861.26 | |
| Workinprogress | 268,702.16 | - | 268,702.16 | 244,341.19 | - | 244,341.19 | |
| Lowcostconsumables | 4,936,943.32 | - | 4,936,943.32 | 2,937,523.28 | - | 2,937,523.28 |
7,632,642,537.46
| 7,632,642,537.46 | (11,100,942.38) | 7,621,541,595.08 | 6,298,008,008.81 | (12,997,334.35) | 6,285,010,674.46 |
Provisionforinventoriesisanalysedbelow:
| 31December2021 | 1January2021 | Increases | Decreases | 31December2021 | |||
| Current | Additionduetocombination | Resale | Write-off | Others | |||
Finishedgoods
| Finishedgoods | 12,997,334.35 | 9,558,490.52 | 314,857.50 | (5,569,754.67) | (2,217,220.21) | (3,982,765.11) | 11,100,942.38 |
31December2020
| 31December2020 | 1January2020 | Increases | Decreases | 31December2020 | ||
| Current | Additionduetocombination | Resale | Others | |||
Finishedgoods
| Finishedgoods | 8,902,200.40 | 7,054,810.15 | 474,033.43 | (1,458,197.19) | (1,975,512.44) | 12,997,334.35 |
In2021,duetothesalesofgoodsinstock,provisionforinventorieswasresoldbyRMB5,569,754.67(2020:RMB1,458,197.19).
VNotestotheconsolidatedfinancialstatements(Continued)
8.Contractassets
31December2021
| 31December2021 | 31December2020 | |||||
| Bookvalue | Provision | Netbookvalue | Bookvalue | Provision | Netbookvalue | |
Medicaldevicesandequipment’swarranty
| Medicaldevicesandequipment’swarranty | 29,571,543.27 | (510,383.75) | 29,061,159.52 | 15,195,530.95 | (17,799.31) | 15,177,731.64 |
TheGroupsellsmedicaldevicesandequipmenttocustomersandprovidesrelevantinstallationservices,whichconstitutesasingleperformanceobligation.AfterthedeliveryofmedicaldevicesandequipmentbytheGroupandacceptancebycustomers,thecontrolrightsofgoodsaretransferred.TheGrouprecognisestherelevantincomeandtransferspartofthecontractconsiderationtoreceivables,andtheotherpartsareformedascontractassets.Aftertheequipmentisinstalledandtheagreedwarrantyperiodends,thecontractassetswillformanunconditionalrightofcollectionandbetransferredintoreceivables.
| TheGroupsellsmedicaldevicesandequipmenttocustomersandprovidesrelevantinstallationservices,whichconstitutesasingleperformanceobligation.AfterthedeliveryofmedicaldevicesandequipmentbytheGroupandacceptancebycustomers,thecontrolrightsofgoodsaretransferred.TheGrouprecognisestherelevantincomeandtransferspartofthecontractconsiderationtoreceivables,andtheotherpartsareformedascontractassets.Aftertheequipmentisinstalledandtheagreedwarrantyperiodends,thecontractassetswillformanunconditionalrightofcollectionandbetransferredintoreceivables. |
| Changesinprovisionforcontractassetsarepresentedasfollows: |
Openingbalance
| Openingbalance | Increaseintheyear | Reversalintheyear | Closingbalance |
2021
| 2021 | 17,799.31 | 501,422.56 | (8,838.12) | 510,383.75 |
2020
| 2020 | - | 17,799.31 | - | 17,799.31 |
Anageanalysisofcontractassetswithprovisionforimpairmentareasfollows:
| Anageanalysisofcontractassetswithprovisionforimpairmentareasfollows: | |||||||
| 31December2021 | 31December2020 | ||||||
| Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | Estimateddefaultamount | Expectedcreditlossrate | Expectedcreditlossinentirelifetime | ||
Within1year
| Within1year | 24,362,618.02 | 0.76% | 185,529.29 | 15,195,530.95 | 0.12% | 17,799.31 | |
| 1to2years | 5,208,925.25 | 6.24% | 324,854.46 | - | - | - |
29,571,543.27
| 29,571,543.27 | 1.73% | 510,383.75 | 15,195,530.95 | 0.12% | 17,799.31 |
9.Othercurrentassets
| 31December2021 | 31December2020 |
VATtaxcredit
| VATtaxcredit | 155,985,552.00 | 114,251,111.76 | |
| CITtobededucted | 3,817,409.16 | 5,981,268.15 | |
| Others | 804,394.50 | 850,483.54 |
160,607,355.66
| 160,607,355.66 | 121,082,863.45 |
VNotestotheconsolidatedfinancialstatements(Continued)
10.Long-termequityinvestments
2021
Investee
| Investee | 1January2021 | Changesintheyear | 31December2021 | Amountofprovisionforimpairment | ||||
| Additional/reducedInvestment | Profitorlossundertheequitymethod | Changesinothercomprehensiveincome | Otherchangesinequity | Cashdividendsorprofitsdeclaredfordistribution | ||||
ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”)(a)
| ShenzhenMainLuckPharmaceuticalInc.(“MainLuckPharmaceutical”)(a) | 322,696,745.87 | - | 88,173,434.93 | - | - | (70,380,000.00) | 340,490,180.80 | - |
| ShanghaiBeiyiGuodaPharmaceuticalCo.Ltd.(“ShanghaiBeiyi”)(b) | 11,190,188.07 | - | 1,249,450.80 | - | - | (1,154,400.00) | 11,285,238.87 | - |
| ShanghaiLiyiPharmacyCo.,Ltd.(“ShanghaiLiyi”)(c) | 1,147,948.30 | - | 226,367.96 | - | - | (293,232.69) | 1,081,083.57 | - |
| ShanghaiRenbeiPharmacyCo.,Ltd.(“ShanghaiRenbei”)(d) | 2,465,103.92 | 38,421.50 | - | - | - | 2,503,525.42 | - | |
| DongyuanAccordPharmaceuticalChainCo.,Ltd.(“DongyuanAccord”)(e) | 396,638.32 | - | - | - | - | - | 396,638.32 | (396,638.32) |
| SinopharmJienuoMedicalTreatmentServiceGuangdongCo.,Ltd.(“GuangdongJienuo”)(f) | 5,225,570.12 | (871,691.80) | - | - | - | 4,353,878.32 | - | |
| GuangdongJianhuiConstructionInvestmentManagementCo.,Ltd.(“GuangdongJianhui”)(g) | 8,000,000.00 | - | - | - | - | - | 8,000,000.00 | - |
| ZhijunSuzhou(h) | 1,857,279.52 | - | - | - | - | - | 1,857,279.52 | (1,857,279.52) |
| SinopharmGroupZhijun(Shenzhen)PharmaceuticalCo.,Ltd.(“ZhijunMedicine”)(i) | 425,557,825.11 | - | 110,083,777.09 | - | - | (39,098,661.04) | 496,542,941.16 | - |
| ShenzhenZhijunPharmaceuticalTradeCo.,Ltd.(“ZhijunTrade”)(i) | 10,408,675.18 | - | 498,196.67 | - | - | (529,453.96) | 10,377,417.89 | - |
| SinopharmGroupZhijun(Shenzhen)PingShanPharmaceuticalCo.,Ltd.(“ZhijunPingshan”)(i) | 176,566,795.90 | - | 41,892,944.28 | - | - | (34,553,476.37) | 183,906,263.81 | - |
| ShanghaiShyndecPharmaceuticalCo.,Ltd.(“ShyndecPharma”)(i) | 1,323,760,775.52 | - | 92,516,109.67 | 41,192.92 | (701,946.29) | (16,714,220.20) | 1,398,901,911.62 | - |
| Jialong(Hainan)HealthManagementGroupCo.,Ltd(“JialongHainan”)(j) | 2,800,000.00 | (409,894.72) | - | - | - | 2,390,105.28 | - |
2,289,273,545.83
| 2,289,273,545.83 | 2,800,000.00 | 333,397,116.38 | 41,192.92 | (701,946.29) | (162,723,444.26) | 2,462,086,464.58 | (2,253,917.84) |
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)
2020
Investee
| Investee | 1January2020 | Changesintheyear | 31December2020 | Amountofprovisionforimpairment | ||||
| Additional/reducedInvestment | Profitorlossundertheequitymethod | Changesinothercomprehensiveincome | Otherchangesinequity | Cashdividendsorprofitsdeclaredfordistribution | ||||
MainLuckPharmaceutical(a)
| MainLuckPharmaceutical(a) | 294,469,367.27 | - | 91,569,378.60 | - | - | (63,342,000.00) | 322,696,745.87 | - |
| ShanghaiBeiyi(b) | 9,887,944.98 | - | 1,302,243.09 | - | - | - | 11,190,188.07 | - |
| ShanghaiLiyi(c) | 1,039,039.88 | - | 108,908.42 | - | - | - | 1,147,948.30 | - |
| ShanghaiRenbei(d) | 1,800,000.00 | 665,103.92 | - | - | - | 2,465,103.92 | - | |
| DongyuanAccord(e) | 396,638.32 | - | - | - | - | - | 396,638.32 | (396,638.32) |
| GuangdongJienuo(f) | 6,453,679.96 | (1,228,109.84) | - | - | - | 5,225,570.12 | - | |
| GuangdongJianhui(g) | 1,854,647.81 | 6,000,000.00 | 145,352.19 | - | - | - | 8,000,000.00 | - |
| ZhijunSuzhou(h) | 1,857,279.52 | - | - | - | - | - | 1,857,279.52 | (1,857,279.52) |
| ZhijunMedicine(i) | 400,578,574.68 | - | 78,197,322.08 | - | - | (53,218,071.65) | 425,557,825.11 | - |
| ZhijunTrade(i) | 10,275,257.61 | - | 1,176,564.36 | - | - | (1,043,146.79) | 10,408,675.18 | - |
| ZhijunPingshan(i) | 120,878,018.74 | - | 76,785,503.04 | - | - | (21,096,725.88) | 176,566,795.90 | - |
| ShyndecPharma(i) | 1,235,240,098.79 | - | 105,623,439.79 | 5,332.87 | (393,875.73) | (16,714,220.20) | 1,323,760,775.52 | - |
| ShanghaidingqunEnterpriseManagementConsultingCo.,Ltd.(“ShanghaiDingqun”)(j) | 22,637,781.16 | (22,637,781.16) | - | - | - | - | - | - |
2,107,368,328.72
| 2,107,368,328.72 | (16,637,781.16) | 354,345,705.65 | 5,332.87 | (393,875.73) | (155,414,164.52) | 2,289,273,545.83 | (2,253,917.84) |
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)
Provisionforimpairmentoflong-termequityinvestments:
2021
1January2021
| 1January2021 | Increase | Decrease | 31December2021 |
ZhijunSuzhou(h)
| ZhijunSuzhou(h) | 1,857,279.52 | - | - | 1,857,279.52 |
| DongyuanAccord(e) | 396,638.32 | - | - | 396,638.32 |
2,253,917.84
| 2,253,917.84 | - | - | 2,253,917.84 |
2020
| 1January2020 | Increase | Decrease | 31December2020 |
ZhijunSuzhou(h)
| ZhijunSuzhou(h) | 1,857,279.52 | - | - | 1,857,279.52 |
| DongyuanAccord(e) | 396,638.32 | - | - | 396,638.32 |
2,253,917.84
| 2,253,917.84 | - | - | 2,253,917.84 |
(a)On4July1990,theGroup,MercianKabushikiKaishaandMainLifeCo.,Ltd.jointlyestablished
MainLuckPharmaceutical,subscribing35.19%,34.15%and30.66%ofshareholdings,respectively.Accordingtothearticlesofassociation,theboardofdirectorsofMainLuckPharmaceuticalconsistedofsixdirectors,ofwhichtwowereappointedbytheGroup.TheGroupowns33.33%ofvotingrights.Thevotingrightoftheresolutionsoftheboardofdirectorsisonepersonandonevote.Exceptfortheamendmentandsupplementofthearticlesofassociation,thesuspensionanddissolutionoftheenterprise,theincrease,transferoradjustmentoftheregisteredcapitaloftheenterprise,theassetmortgageoftheenterprise,themergeranddivisionoftheenterprisewithothereconomicorganizationsandthechangeoforganizationalform,otherresolutionsoftheboardofdirectorsmustbeadoptedbymorethantwo-thirdsofthedirectorsormorethanhalfofthedirectors.Therefore,theGrouphadsignificantinfluenceoverMainLuckPharmaceutical,andwasconsideredasanassociateoftheGroup.(b)On26July1994,theGroupjointlyestablishedShanghaiBeiyiwithShanghaiBeiyi(Group)Co.,
Ltd.andeightnaturalpersonsincludingFuchunZhu,withtheirsharepercentagesbeing26.00%,
26.00%and48.00%.Accordingtothearticlesofassociation,theboardofdirectorsofShanghaiBeiyiconsistedoffivedirectors,ofwhichtwowereappointedbytheGroup.TheGroupowns
40.00%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Therefore,theGrouphadsignificantinfluenceoverShanghaiBeiyi,andwasconsideredasanassociateoftheGroup.
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)(c)On25November2003,theGroupjointlyestablishedShanghaiLiyiwithShanghaiPudongDistrict
CentralHospitalandShanghaiLiyiTechnologyCo.,Ltd.,withthesharepercentagesbeing35.00%,
35.00%and30.00%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiLiyiconsistedoffivedirectors,ofwhichtwowereappointedbytheGroup,accountingfor
40.00%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Therefore,theGrouphadsignificantinfluenceoverShanghaiLiyi,andthus,itwasconsideredasanassociateoftheGroup.(d)On5March2019,theGroupacquired30.00%sharesinShanghaiRenbei.Accordingtothe
ArticlesofAssociation,theboardofdirectorsofShanghaiRenbeiwascomposedofthreedirectors,oneofwhomwasappointedbytheGroup,accountingfor33.33%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Theresolutiononthechangeofseniormanagersmadeatthemeetingoftheboardofdirectorsshallbeunanimouslyadoptedbyalldirectors.Therefore,theGrouphassignificantinfluenceoverShanghaiRenbei,andthus,itisconsideredasanassociateoftheGroup.(e)OnJune16,1999,theGroupacquired45.00%sharesofDongyuanCongyi.Accordingtothe
articlesofassociation,theboardofdirectorsofDongyuanconsensusiscomposedoffivedirectors,twoofwhomareappointedbythegroup,accountingfor40.00%ofthevotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Therefore,thegrouphasasignificantimpactonDongyuanconsensus,whichisanassociateofthegroup.In2007,DongyuanAccord,anassociateoftheGroup,operatedinpoorconditionsanditsfutureoperationwouldbesignificantlyuncertain,sotheGroupmadeafullprovisionforimpairmentofthelong-termequityinvestmentonit.(f)On23February2016,theGroupjointlyestablishedGuangdongJienuowithSinopharmJienuoMedicalTreatmentServiceCo.,Ltd.andGuangzhouJinluoInvestmentDevelopmentCo.,Ltd.,withthesharepercentagesbeing29.00%,51.00%and20.00%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJienuowascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20.00%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Therefore,theGrouphassignificantinfluenceoverGuangdongJienuo,andthus,itisconsideredasanassociateoftheGroup.On25July2020,theGroup,togetherwiththecurrentshareholders,SinopharmJienuoMedicalTreatmentServiceCo.,Ltd.andFoshanJiejianchengfengMedicalEquipmentCo.,Ltd.,increasedthecapitalofGuangdongJienuoby29.00%,51.00%and20.00%accordingtotheshareholdingratiosrespectively,andthetotalamountoftheincreasedcapitalwasRMB6million.
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)(g)On23November2018,theGroupjointlyestablishedGuangdongJianhuiwithGuangdong
ConstructionEngineeringGroupCo.,Ltd.,SuixiPeople'sHospitalandGuangdongJiankeArchitecturalDesignInstituteCo.,Ltd.,withthesharepercentagesbeing10.00%,79.90%,10.00%and0.10%,respectively.TheregisteredcapitalofGuangdongJianhuiwasRMB20,000,000.On22March2020,theGroupcompletedtheinvestmentofRMB2,000,000.00.AccordingtotheArticlesofAssociation,theboardofdirectorsofGuangdongJianhuiwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20.00%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson.Exceptforsomespecialmatters,otherresolutionsoftheboardofdirectorsareapprovedbymorethantwo-thirdsofalldirectors.Therefore,theGrouphassignificantinfluenceoverGuangdongJianhui,andthus,itisconsideredasanassociateoftheGroup.On30March2021,theGroupincreasedthecapitalofGuangdongJianhuibyRMB6millionaccordingtotheshareholdingratio.(h)TheGroupdisposedofits67.00%equityinterestinZhijunSuzhouinApril2016.Afterthedisposal,
theGrouphelda33.00%equityinterestofZhijunSuzhou.AccordingtotheArticlesofAssociation,theboardofdirectorsinZhijunSuzhouwascomposedoffivedirectors,oneofwhomwasappointedbytheGroup,accountingfor20.00%ofvotingrights.Thevotingrightofresolutionsoftheboardofdirectorsisonevoteforoneperson,andallresolutionsoftheboardofdirectorsarepassedbymorethanhalfofalldirectors.Asaresult,theGrouphassignificantinfluenceoverZhijunSuzhou,andthus,itisconsideredasanassociateoftheGroup.In2020,onaccountofmismanagement,therewassignificantuncertaintyinthefutureoperationoftheGroup'saffiliatedenterprise,ZhijunSuzhou.Thus,theGroupmadefullprovisionforimpairmentofthelong-termequityinvestmentinZhijunSuzhou.(i)TheGroupsubscribed15.56%ofnewissuedsharesofShyndecPharma,arelatedparty,bytransferringtheproductiveassetsinPingshanbaseandits51.00%equityinterestinthreepharmaceuticalcompanies(ZhijunMedicines,ZhijunTrade,ZhijunPingshan)oftheGroupin2016,respectively.Afterthecompletionofthereorganization,ShyndecPharmaholdsa51.00%equityinterestofeachofthethreepharmaceuticalcompanies,andtheGroupholdsa49.00%equityinterestineachofthethreepharmaceuticalcompanies.Thethreepharmaceuticalcompanieshavesetupaboardofdirectorswithatotaloffivemembers,ofwhichtheGroupappointstwodirectors.Thevotingontheresolutionsoftheboardofdirectorsisoneperson,onevote,andtheproportionofvotingrightsis40.00%.Exceptforsomespecialmatters,allresolutionsoftheboardofdirectorshavebeenadoptedbymorethanhalfofalldirectors.Theyhavesignificantinfluenceoverthethreepharmaceuticalcompanies.Atthesametime,afterthecompletionofthereorganization,theGroupholdsa15.56%equityinterestofShyndecPharma.SinceShyndecPharmaacquiredthesharesofsubsidiarieswithshare-basedpaymentinpreviousyears,theGrouphelda16.28%equityinterestofShyndecPharmaasat31December2020.ShyndecPharmasetupaboardofdirectorsthatwasresponsiblefortheshareholders'meeting,withatotalofninemembers,amongwhich,onewasappointedbytheGroup.Eachdirectorhasonevoteontheboard,taking11.11%ofthevotingrights.Exceptforspecialresolutionsadoptedbyhalfoftheboardofdirectors.TheGrouphassignificantinfluenceoverShyndecPharma.TheabovethreepharmaceuticalcompaniesandShyndecPharmaareconsideredasassociatesoftheGroup.
VNotestotheconsolidatedfinancialstatements(Continued)
9.Long-termequityinvestments(Continued)(j)On9August2021,theGroupjointlyestablishedJialongHainanwithHainanYushanChangxing
HealthManagementCo.,Ltd.,withthesharepercentagesbeing25.00%and75.00%,respectively.AccordingtotheArticlesofAssociation,theboardofdirectorsofJialongHainanwascomposedofthreedirectors,oneofwhomwasappointedbytheGroup,accountingfor33.33%ofvotingrights.Therefore,theGrouphassignificantinfluenceoverJialongHainan,andthus,itisconsideredasanassociateoftheGroup.(k)OnMay2018,theGroupandNingboMeishanBondedPortAreaQilingEquityInvestmentCenterLPjointlyestablishedShanghaiDingqun,owning2.53%and97.47%ofshareholdings.AccordingtotheArticlesofAssociation,theboardofdirectorsofShanghaiDingqunconsistedofthreedirectorsandoneofthemwasappointedbytheCompany.Eachdirectorhasonevoteontheboard,andresolutionsoftheboardaretobepassedbyasimplemajorityofvotes.Therefore,theGrouphassignificantinfluenceoverShanghaiDingqun,andthus,itisconsideredasanassociateoftheGroup.GuodaDrugstore,asubsidiaryoftheGroup,acquired100.00%sharesofShanghaiDingqunEnterpriseManagementConsultingCo.,Ltd.fromNingboMeishanBondedPortAreaQilingEquityInvestmentCenterLPandtheCompanybyRMB934,240,000.00.Theacquisitionwascompletedon7January2021,andtheCompanycontrolledShanghaiDingqunandformedabusinesscombinationnotinvolvingenterprisesundernocommoncontrol,whichwasincludedinthescopeoftheCompany'sconsolidation.
VNotestotheconsolidatedfinancialstatements(Continued)
11.Otherequityinvestments
2021
Accumulatedfairvaluechangesrecordedinothercomprehensiveincome
| Accumulatedfairvaluechangesrecordedinothercomprehensiveincome | Fairvalue | Dividendincomeforthecurrentyear | Reasonsforbeingdesignatedasfairvaluethroughothercomprehensiveincome | ||||
| Equityinstrumentsderecognisedinthecurrentyear | Equityinstrumentsthatarestillheld | ||||||
SinopharmHealthOnlineCo.,Ltd.
| SinopharmHealthOnlineCo.,Ltd. | 18,379,638.22 | 30,379,638.22 | - | - | Non-tradingequityinstrument | ||||
| SinopharmHubeiGuodaPharmacyCo.,Ltd. | 17,799,104.17 | 18,799,104.17 | - | 2,280,159.50 | Non-tradingequityinstrument | ||||
| ShanghaiGuodaShuguangDrugstoreCo.,Ltd.(a) | 8,048,510.22 | 8,319,270.22 | 50,000.00 | ||||||
| ShanghaiGuorenPharmacyCo.,Ltd. | 4,620,895.53 | 4,720,895.53 | - | 457,716.39 | Non-tradingequityinstrument | ||||
| HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd. | (45,595.15) | 269,404.85 | - | - | Non-tradingequityinstrument |
48,802,552.99
| 48,802,552.99 | 62,488,312.99 | - | 2,787,875.89 |
VNotestotheconsolidatedfinancialstatements(Continued)
11.Otherequityinstrumentinvestment(Continued)
2020
Accumulatedfairvaluechangesrecordedinothercomprehensive
income
| Accumulatedfairvaluechangesrecordedinothercomprehensiveincome | Fairvalue | Dividendincomeforthecurrentyear | Reasonsforbeingdesignatedasfairvaluethroughothercomprehensiveincome | ||||
| Equityinstrumentsderecognisedinthecurrentyear | Equityinstrumentsthatarestillheld | ||||||
SinopharmHealthOnlineCo.,Ltd.
| SinopharmHealthOnlineCo.,Ltd. | 55,056,227.40 | 67,056,227.40 | - | - | Non-tradingequityinstrument | ||||
| SinopharmHubeiGuodaPharmacyCo.,Ltd. | 17,279,788.59 | 18,279,788.59 | - | - | Non-tradingequityinstrument | ||||
| ShanghaiGuodaShuguangPharmacyCo.,Ltd.(a) | 7,971,316.02 | 8,242,076.02 | - | 50,000.00 | Non-tradingequityinstrument | ||||
| ShanghaiGuorenPharmacyCo.,Ltd. | 5,393,260.45 | 5,493,260.45 | - | 590,538.07 | Non-tradingequityinstrument | ||||
| HunanZhongbaiPharmaceuticalInvestmentCo.,Ltd. | 101,987.82 | 416,987.82 | - | - | Non-tradingequityinstrument |
85,802,580.28
| 85,802,580.28 | 99,488,340.28 | - | 640,538.07 |
(a)ShanghaiGuodaShuguangPharmacyCo.,Ltd.wasrenamedShanghaiChongdepharmacyCo.,Ltd.onAugust26,2021.
VNotestotheconsolidatedfinancialstatements(Continued)
12.Othernon-currentfinancialassets
31December2021
| 31December2021 | 31December2020 |
Financialassetsatfairvaluethroughprofitorloss
| Financialassetsatfairvaluethroughprofitorloss | 135,974,908.51 | 120,972,350.24 |
Asat31December2021,thebalanceofothernon-currentfinancialassetswasthefairvaluesofthesharesofphaseIandphaseIIofSinopharmCICCmedicalindustryfund(“IndustryFund”)thattheGrouphadsubscribed.Atthe21stMeetingofthe7thboardofdirectorswhichheldon6January2017,theGroupdeliberatedandpassedtheproposaloninvestmentsubscriptionoftheIndustryFund(PhaseI)andrelatedpartytransactionoftheGroup.AsalimitedpartnerofIndustryFund(PhaseI),theGroupintendstoinvestandsubscribefortheshareofIndustryFund(PhaseI)amountingtoRMB200million,whichshallbepaidin3instalments.TheIndustrialFund(phaseI)hasobtainedrelevantapprovalin2018andstartedtooperate.Asat31December2020,theGrouphasmadepaymentsofRMB140million.TheGroupreceivedthewithdrawalfundofthisproject’sprincipalofRMB19,027,649.76onJune2020andreceivedRMB2,997,441.73onJanuary2021fromNingboMeishanBondedPortAreaQiruiEquityInvestmentCenterLP.Atthe1stMeetingofthe9thboardofdirectorswhichheldon16July2021,theGroupdeliberatedandpassedtheproposaloninvestmentsubscriptionoftheIndustryFund(PhaseII).AsalimitedpartnerofIndustryFund(PhaseII),theGroupintendstoinvestandsubscribefortheshareofIndustryFund(PhaseII)amountedtoRMB60million,whichshallbepaidin3instalments.GongqingchengQixinEquityInvestmentPartnership(LimitedPartnership)(“GongqingchengQixin”)istheentityoftheIndustryFund.TheGrouphasmadefirstpaymentRMB18millionsinAugust2021.Asat31December2021,theGrouphasmadepaymentsofRMB18million.TheIndustrialFund(PhaseII)hasobtainedrelevantapprovalin2021andstartedtooperate.SincethecashflowsobtainedbytheGroupfromtheinvestmentoftheIndustryFundincludeboththecontractualcashflowsgeneratedbytheunderlyingassetsduringtheinvestmentperiodandthecashflowsofthedisposaloftheunderlyingassets,thecontractualcashflowsthatdonotsatisfythefinancialassetsgeneratedonaspecificdateareonlythepaymentofinterestonthebasisoftheoutstandingprincipalamount,andtherefore,theGroupclassifiestheinvestmentoftheIndustryFundintofinancialassetsmeasuredatfairvaluethroughprofitorlossandpresentstheinvestmentasothernon-currentfinancialassets.
VNotestotheconsolidatedfinancialstatements(Continued)
13.Investmentproperties
Subsequentmeasurementunderthecostmodel:
2021
Buildingsandconstructions
| Buildingsandconstructions | Landuserights | Total | ||
| Originalcost | ||||
| Openingbalance | 225,645,845.78 | 20,988,818.44 | 246,634,664.22 | |
| Transferfromfixedassets | 1,137,337.42 | - | 1,137,337.42 | |
| Transfertointangibleassets | - | (25,090.42) | (25,090.42) | |
| Transfertofixedassets | (20,570,972.44) | - | (20,570,972.44) |
Closingbalance
| Closingbalance | 206,212,210.76 | 20,963,728.02 | 227,175,938.78 |
Accumulateddepreciationandamortisation
| Accumulateddepreciationandamortisation | ||||
| Openingbalance | (109,976,379.20) | (7,913,905.08) | (117,890,284.28) | |
| Provision | (6,189,884.57) | (241,318.81) | (6,431,203.38) | |
| Transferfromfixedassets | (839,607.50) | - | (839,607.50) | |
| Transfertointangibleassets | - | 3,512.49 | 3,512.49 | |
| Transfertofixedassets | 13,263,141.12 | - | 13,263,141.12 |
Closingbalance
| Closingbalance | (103,742,730.15) | (8,151,711.40) | (111,894,441.55) |
Provisionforimpairment
| Provisionforimpairment | ||||
| Openingbalance | (1,300,000.00) | - | (1,300,000.00) |
Closingbalance
| Closingbalance | (1,300,000.00) | - | (1,300,000.00) |
Carryingamount
| Carryingamount | ||||
| Atendofyear | 101,169,480.61 | 12,812,016.62 | 113,981,497.23 |
Atbeginningofyear
| Atbeginningofyear | 114,369,466.58 | 13,074,913.36 | 127,444,379.94 |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Investmentproperties(Continued)
Subsequentmeasurementunderthecostmodel(Continued)2020
Buildingsandconstructions
| Buildingsandconstructions | Landuserights | Total |
Originalcost
| Originalcost | ||||
| Openingbalance | 243,610,633.09 | 22,719,102.03 | 266,329,735.12 | |
| Transferfromfixedassets | 200,000.00 | - | 200,000.00 | |
| Transfertointangibleassets | - | (1,730,283.59) | (1,730,283.59) | |
| Transfertofixedassets | (7,407,446.67) | - | (7,407,446.67) | |
| Disposalordisburse | (10,757,340.64) | - | (10,757,340.64) |
Closingbalance
| Closingbalance | 225,645,845.78 | 20,988,818.44 | 246,634,664.22 |
Accumulateddepreciationandamortisation
| Accumulateddepreciationandamortisation | ||||
| Openingbalance | (117,940,803.43) | (8,188,573.39) | (126,129,376.82) | |
| Provision | (5,838,206.47) | (176,289.33) | (6,014,495.80) | |
| Transferfromfixedassets | (64,379.86) | - | (64,379.86) | |
| Transfertointangibleassets | - | 450,957.64 | 450,957.64 | |
| Transfertofixedassets | 4,649,383.55 | - | 4,649,383.55 | |
| Disposalordisburse | 9,217,627.01 | - | 9,217,627.01 |
Closingbalance
| Closingbalance | (109,976,379.20) | (7,913,905.08) | (117,890,284.28) |
Provisionforimpairment
| Provisionforimpairment | ||||
| Openingbalance | (1,300,000.00) | - | (1,300,000.00) |
Closingbalance
| Closingbalance | (1,300,000.00) | - | (1,300,000.00) |
Carryingamount
| Carryingamount | ||||
| Atendofyear | 114,369,466.58 | 13,074,913.36 | 127,444,379.94 |
Atbeginningofyear
| Atbeginningofyear | 124,369,829.66 | 14,530,528.64 | 138,900,358.30 |
VNotestotheconsolidatedfinancialstatements(Continued)
13.Investmentproperties(Continued)
During2021,depreciationandamortisationofinvestmentpropertieswereRMB6,431,203.38(2020:
RMB6,014,495.80).During2021,propertieswithacarryingamountofRMB297,729.92(originalvalue:
RMB1,137,337.42,accumulateddepreciation:RMB839,607.50)wereleasedouttoathirdpartyintheformofoperatingleases.Onthedateofchangingtheuseofproperties,thefixedassetsweretransferredintoinvestmentproperties.During2021,propertieswithacarryingamountofRMB7,307,831.32(originalvalue:
RMB20,570,972.44,accumulateddepreciation:RMB13,263,141.12)weretransferredtoanowner-occupiedproperty.Onthedateofchangingtheuseofproperties,thepropertieswerereclassifiedasfixedassets.Asat31December2021,theGrouphadnoinvestmentpropertiesforwhichcertificatesoftitlehavenotbeenobtained.
VNotestotheconsolidatedfinancialstatements(Continued)
14.Fixedassets
31December2021
| 31December2021 | 31December2020 |
Fixedassets
| Fixedassets | 868,626,258.43 | 854,191,083.27 | |
| Disposaloffixedassets | - | - |
868,626,258.43
| 868,626,258.43 | 854,191,083.27 |
2021
| 2021 | ||||||
| Buildingsandconstructions | Machineryandequipment | Motorvehicles | Officeequipment | Electronicequipment | Total | |
| Originalcost | ||||||
| Openingbalance | 704,639,396.43 | 305,450,662.64 | 96,751,717.47 | 365,642,213.00 | 121,068,984.00 | 1,593,552,973.54 |
| Purchase | 1,696,893.60 | 64,861,380.71 | 14,649,138.22 | 36,791,424.25 | 44,599,211.90 | 162,598,048.68 |
| Transferfromconstructioninprogress | 336,010.23 | 5,718,395.39 | - | 3,170,559.22 | 580,888.56 | 9,805,853.40 |
| Transferfrominvestmentproperties | 20,570,972.44 | - | - | - | - | 20,570,972.44 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | 175,767.00 | 1,378,743.00 | 1,828,296.82 | 2,371,967.27 | 5,754,774.09 |
| Transfertoinvestmentproperties | (1,137,337.42) | - | - | - | - | (1,137,337.42) |
| Disposalorretirement | (244,761.96) | (4,339,706.52) | (10,380,183.71) | (12,284,466.88) | (10,846,861.86) | (38,095,980.93) |
Closingbalance
| Closingbalance | 725,861,173.32 | 371,866,499.22 | 102,399,414.98 | 395,148,026.41 | 157,774,189.87 | 1,753,049,303.80 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Fixedassets(Continued)
2021
| 2021 | ||||||
| Buildingsandconstructions | Machineryandequipment | Motorvehicles | Officeequipment | Electronicequipment | Total |
Accumulateddepreciation
| 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) |
| Provision | (27,764,804.44) | (57,298,305.05) | (9,207,720.92) | (33,305,733.71) | (35,110,266.23) | (162,686,830.35) |
| Transferfrominvestmentproperties | (13,263,141.12) | - | - | - | - | (13,263,141.12) |
| Transfertoinvestmentproperties | 839,607.50 | - | - | - | - | 839,607.50 |
| Disposalorretirement | 33,914.64 | 2,072,884.48 | 9,331,535.41 | 9,279,653.74 | 9,331,220.60 | 30,049,208.87 |
Closingbalance
| Closingbalance | (278,578,414.47) | (203,467,575.81) | (58,211,456.82) | (240,594,219.57) | (103,571,378.70) | (884,423,045.37) |
Provisionforimpairment
| Provisionforimpairment | ||||||
| Openingbalance | - | - | - | - | - | - |
Closingbalance
| Closingbalance | - | - | - | - | - | - |
Carryingamount
| Carryingamount | ||||||
| Atendofyear | 447,282,758.85 | 168,398,923.41 | 44,187,958.16 | 154,553,806.84 | 54,202,811.17 | 868,626,258.43 |
Atbeginningofyear
| Atbeginningofyear | 466,215,405.38 | 157,208,507.40 | 38,416,446.16 | 149,074,073.40 | 43,276,650.93 | 854,191,083.27 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Fixedassets(Continued)
2020
| 2020 | ||||||
| Buildingsandconstructions | Machineryandequipment | Motorvehicles | Officeequipment | Electronicequipment | Total | |
| Originalcost | ||||||
| Openingbalance | 603,848,760.59 | 239,741,250.34 | 90,023,564.89 | 322,298,724.55 | 90,133,289.24 | 1,346,045,589.61 |
| Purchase | 1,301,861.39 | 69,349,747.46 | 13,341,082.06 | 39,992,959.88 | 36,812,781.74 | 160,798,432.53 |
| Transferfromconstructioninprogress | 1,455,115.63 | 3,321,029.79 | - | 20,296.00 | - | 4,796,441.42 |
| Transferfrominvestmentproperties | 7,407,446.67 | - | - | - | - | 7,407,446.67 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | 93,390,680.73 | 1,975,018.76 | 3,873,907.17 | 16,236,211.94 | 10,210,548.23 | 125,686,366.83 |
| Transfertoinvestmentproperties | (200,000.00) | - | - | - | - | (200,000.00) |
| Disposalorretirement | (2,564,468.58) | (8,936,383.71) | (10,486,836.65) | (12,905,979.37) | (16,087,635.21) | (50,981,303.52) |
Closingbalance
| Closingbalance | 704,639,396.43 | 305,450,662.64 | 96,751,717.47 | 365,642,213.00 | 121,068,984.00 | 1,593,552,973.54 |
Accumulateddepreciation
| Accumulateddepreciation | ||||||
| Openingbalance | (210,725,255.48) | (114,086,892.23) | (58,060,958.31) | (195,644,163.28) | (59,528,147.68) | (638,045,416.98) |
| Provision | (24,493,901.95) | (40,831,522.87) | (8,724,407.96) | (29,263,986.69) | (30,393,164.67) | (133,706,984.14) |
| Transferfrominvestmentproperties | (4,649,383.55) | - | - | - | - | (4,649,383.55) |
| Transfertoinvestmentproperties | 64,379.86 | - | - | - | - | 64,379.86 |
| Disposalorretirement | 1,380,170.07 | 6,676,259.86 | 8,450,094.96 | 8,340,010.37 | 12,128,979.28 | 36,975,514.54 |
Closingbalance
| Closingbalance | (238,423,991.05) | (148,242,155.24) | (58,335,271.31) | (216,568,139.60) | (77,792,333.07) | (739,361,890.27) |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Fixedassets(Continued)
2020(Continued)
| 2020(Continued) | ||||||
| Buildingsandconstructions | Machineryandequipment | Motorvehicles | Officeequipment | Electronicequipment | Total |
Provisionforimpairment
| Provisionforimpairment | ||||||
| Openingbalance | - | - | - | - | - | - |
Closingbalance
| Closingbalance | - | - | - | - | - | - |
Carryingamount
| Carryingamount | ||||||
| Atendofyear | 466,215,405.38 | 157,208,507.40 | 38,416,446.16 | 149,074,073.40 | 43,276,650.93 | 854,191,083.27 |
Atbeginningofyear
| Atbeginningofyear | 393,123,505.11 | 125,654,358.11 | 31,962,606.58 | 126,654,561.27 | 30,605,141.56 | 708,000,172.63 |
VNotestotheconsolidatedfinancialstatements(Continued)
14.Fixedassets(Continued)
Asat31December2021,thefixedassetswithoutcertificatesofownershiparepresentedasfollows:
Bookvalue
| Bookvalue | Reasonfornotaccomplishingcertificationofownership |
Buildingsandconstructions
| Buildingsandconstructions | 24,765,862.39 | Asat31December2021,theGrouphasnotyetaccpmplishedthecertificationoftitleforNo.13JingxingNorthStreet,TiexiDistrict,Shenyang.TheState-ownedAssetsSupervisionandAdministrationCommissionofTiexiDistrict,Shenyang,whichwasthetransferparty,wasstillprocessingthecaseandhadprovidedarelevantnotification. |
Buildingsandconstructions
| Buildingsandconstructions | 38,854,943.08 | Asat31December2021,theGrouphasnotyetobtainedthecertificationoftitleforNo.53NanshiZhongRoad,TiexiDistrict,Shenyang.TtheState-ownedAssetsSupervisionandAdministrationCommissionofTiexiDistrict,Shenyang,whichwasthetransferparty,wasstillprocessingthecaseandhadprovidedarelevantnotification. |
Buildingsandconstructions
| Buildingsandconstructions | 486,956.52 | Asat31December2021,theGroupfailedtoapplythepropertyrightcertificationofthetitleforNo.31YiheRoad,Kaiyuansincetheconstructionareaislargerthantheapprovedarea.However,KaiyuanCityPlanningBureauhasissuedacertificateofacceptanceofconstructionprojectcompletionplanning. |
Buildingsandconstructions
| Buildingsandconstructions | 119,844.81 | Asat31December2021,theGrouphadbuiltasimplewarehouselocatedatNo.2BaiyuRoad,SujiatunDistrict,Shenyangforself-storage.TheGroupfailedtoaccomplishthepropertyrightcertificationofthewarehouse. |
Asat31December2021and31December2020,nofixedassetsweretemporarilyidle.
Asat31December2021and31December2020,nofixedassetswererentoutforoperatinglease.
VNotestotheconsolidatedfinancialstatements(Continued)
15.Constructioninprogress
31December2021
| 31December2021 | 31December2020 |
Constructioninprogress
| Constructioninprogress | 49,849,506.70 | 46,631,190.23 |
31December2021
| 31December2021 | 31December2020 | ||||
| Carryingbalance | Impairment | Carryingamount | Carryingbalance | Impairment | Carryingamount |
Softwareproject
| Softwareproject | 24,794,281.62 | - | 24,794,281.62 | 19,443,779.83 | - | 19,443,779.83 |
| Supplychainextensionproject | 12,446,732.50 | - | 12,446,732.50 | 12,248,729.81 | - | 12,248,729.81 |
| Warehouseimprovementproject | 3,182,704.49 | - | 3,182,704.49 | 2,357,739.84 | - | 2,357,739.84 |
| Newofficebuildingproject | - | - | - | 2,654,403.71 | - | 2,654,403.71 |
| Otherprojects | 9,425,788.09 | - | 9,425,788.09 | 9,926,537.04 | - | 9,926,537.04 |
49,849,506.70
| 49,849,506.70 | - | 49,849,506.70 | 46,631,190.23 | - | 46,631,190.23 |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Constructioninprogress(Continued)
Changesofsignificantitemsofconstructioninprogressin2021arepresentedasfollows:
Projectname
| Projectname | Atbeginningoftheyear | Increase | Decrease | Atendofyear | Sourceoffunds | Proportionofinvestmenttobudget(%) | ||||
| Transferredtofixedassets | Transferredtointangibleassets | Transferredtolong-termprepaidexpense | Otherdecrease | |||||||
Softwareproject
| Softwareproject | 19,443,779.83 | 24,794,281.62 | - | (19,443,779.83) | - | - | 24,794,281.62 | Self-raisedfunds | 42.00% | |
| Supplychainextensionproject | 12,248,729.81 | 9,667,845.86 | (9,469,843.17) | - | - | - | 12,446,732.50 | Self-raisedfunds | 48.61% | |
| Warehouseimprovementproject | 2,357,739.84 | 30,023,707.75 | (336,010.23) | - | (28,862,732.87) | - | 3,182,704.49 | Self-raisedfunds/Specializedborrowings | 95.76% | |
| Newofficebuildingproject | 2,654,403.71 | - | - | - | (2,654,403.71) | - | - | Self-raisedfunds | 100.00% | |
| Otherconstructionprojects | 9,926,537.04 | 1,120,773.41 | - | - | (1,621,522.36) | - | 9,425,788.09 | Self-raisedfunds | 5.50% |
46,631,190.23
| 46,631,190.23 | 65,606,608.64 | (9,805,853.40) | (19,443,779.83) | (33,138,658.94) | - | 49,849,506.70 |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Constructioninprogress(Continued)
Changesofsignificantitemsofconstructioninprogressin2021arepresentedasfollows:(Continued)
2021
2021Projectname
| Projectname | Projectbudget | Projectprogress(%) | Accumulatedamountofborrowingscapitalised | Including:borrowingscapitalisedinthecurrentyear | Capitalizationrate(%) |
Softwareproject
| Softwareproject | 105,427,000.00 | 42.00% | - | - | - |
| Supplychainextensionproject | 56,041,053.09 | 48.61% | - | - | - |
| Warehouseimprovementproject | 33,824,861.55 | 95.76% | 236,775.17 | 236,775.17 | - |
| Newofficebuildingproject | 3,754,800.69 | 100.00% | - | - | - |
| Otherconstructionprojects | 207,470,727.73 | 5.50% | - | - | - |
236,775.17
| 236,775.17 | 236,775.17 |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Constructioninprogress(Continued)
Changesofsignificantitemsofconstructioninprogressin2020arepresentedasfollows:
Projectname
| Projectname | Atbeginningoftheyear | Increase | Decrease | Atendofyear | Sourceoffunds | Proportionofinvestmenttobudget(%) | ||||
| Transferredtofixedassets | Transferredtointangibleassets | Transferredtolong-termprepaidexpense | Otherdecrease | |||||||
Softwareproject
| Softwareproject | 13,197,683.52 | 19,443,779.83 | - | (13,197,683.52) | - | - | 19,443,779.83 | Self-raisedfunds | 100.00% | |
| Supplychainextensionproject | 8,081,340.80 | 6,452,163.18 | (2,284,774.17) | - | - | - | 12,248,729.81 | Self-raisedfunds | 57.29% | |
| Newofficebuildingproject | 110,090.53 | 2,685,041.41 | - | - | (140,728.23) | - | 2,654,403.71 | Self-raisedfunds | 66.53% | |
| Warehouseimprovementproject | 1,232,957.94 | 6,287,811.88 | (2,511,667.25) | - | (2,651,362.73) | - | 2,357,739.84 | Self-raisedfunds | 93.29% | |
| Otherconstructionprojects | 8,960,503.05 | 3,391,463.10 | - | - | (2,425,429.11) | - | 9,926,537.04 | Self-raisedfunds | 5.97% |
31,582,575.84
| 31,582,575.84 | 38,260,259.40 | (4,796,441.42) | (13,197,683.52) | (5,217,520.07) | - | 46,631,190.23 |
VNotestotheconsolidatedfinancialstatements(Continued)
15.Constructioninprogress(Continued)
Changesofsignificantitemsofconstructioninprogressin2020arepresentedasfollows:(Continued)
2020
2020Projectname
| Projectname | Projectbudget | Projectprogress(%) | Accumulatedamountofborrowingscapitalised | Including:borrowingscapitalisedinthecurrentyear | Capitalizationrate(%) |
Supplychainextensionproject
| Supplychainextensionproject | 29,065,907.09 | 57.29% | - | - | - |
| Softwareproject | 19,443,779.83 | 100.00% | - | - | - |
| Warehouseimprovementproject | 6,910,764.45 | 93.29% | - | - | - |
| Newofficebuildingproject | 4,080,919.77 | 66.53% | - | - | - |
| Otherconstructionprojects | 208,542,337.64 | 5.97% | - | - | - |
-
| - | - | - |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Right-of-useassets
2021
2021
Buildingsandconstructions
| Buildingsandconstructions | Machinery,transportandofficeequipment | Others | Total |
Cost
| Cost | ||||
| Openingbalance | 3,642,726,568.57 | 6,617,052.55 | 2,418,809.35 | 3,651,762,430.47 |
| Increase | 1,395,603,990.08 | 1,068,121.83 | - | 1,396,672,111.91 |
| Businesscombinationsinvolvingenterprisesnotundercommoncontrol | 41,047,873.29 | - | - | 41,047,873.29 |
| Disposal | (782,705,015.55) | (2,757,280.62) | - | (785,462,296.17) |
Closingbalance
| Closingbalance | 4,296,673,416.39 | 4,927,893.76 | 2,418,809.35 | 4,304,020,119.50 |
Accumulatedamortisation
| Accumulatedamortisation | ||||
| Openingbalance | (1,289,526,014.83) | (5,092,290.96) | (191,731.69) | (1,294,810,037.48) |
| Accrual | (1,033,746,635.39) | (1,015,033.05) | (95,734.70) | (1,034,857,403.14) |
| Disposal | 598,615,919.44 | 2,271,741.68 | - | 600,887,661.12 |
Closingbalance
| Closingbalance | (1,724,656,730.78) | (3,835,582.33) | (287,466.39) | (1,728,779,779.50) |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Right-of-useassets(Continued)
2021(Continued)
2021(Continued)Buildingsandconstructions
| Buildingsandconstructions | Machinery,transportandofficeequipment | Others | Total |
Provisionforimpairment
| Provisionforimpairment | ||||
| Openingbalance | - | - | - | - |
Closingbalance
| Closingbalance | - | - | - | - |
Bookvalue
| Bookvalue | ||||
| Theendoftheyear | 2,572,016,685.61 | 1,092,311.43 | 2,131,342.96 | 2,575,240,340.00 |
Thebeginningofyear
| Thebeginningofyear | 2,353,200,553.74 | 1,524,761.59 | 2,227,077.66 | 2,356,952,392.99 |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Right-of-useassets(Continued)
2020
2020
Buildingsandconstructions
| Buildingsandconstructions | Machinery,transportandofficeequipment | Others | Total |
Cost
| Cost | ||||
| Openingbalance | 2,634,697,656.23 | 14,470,094.95 | 2,418,809.35 | 2,651,586,560.53 |
| Increase | 992,942,597.22 | 98,521.31 | - | 993,041,118.53 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | 463,952,931.93 | - | - | 463,952,931.93 |
| Disposal | (448,866,616.81) | (7,951,563.71) | (456,818,180.52) |
Closingbalance
| Closingbalance | 3,642,726,568.57 | 6,617,052.55 | 2,418,809.35 | 3,651,762,430.47 |
Accumulatedamortisation
| Accumulatedamortisation | ||||
| Openingbalance | (652,657,513.16) | (4,075,450.60) | (95,734.70) | (656,828,698.46) |
| Accrual | (863,616,827.21) | (3,712,235.62) | (95,996.99) | (867,425,059.82) |
| Disposal | 226,748,325.54 | 2,695,395.26 | - | 229,443,720.80 |
Closingbalance
| Closingbalance | (1,289,526,014.83) | (5,092,290.96) | (191,731.69) | (1,294,810,037.48) |
VNotestotheconsolidatedfinancialstatements(Continued)
16.Right-of-useassets(Continued)
2020(Continued)
2020(Continued)Buildingsandconstructions
| Buildingsandconstructions | Machinery,transportandofficeequipment | Others | Total |
Provisionforimpairment
| Provisionforimpairment | ||||
| Openingbalance | - | - | - | - |
Closingbalance
| Closingbalance | - | - | - | - |
Bookvalue
| Bookvalue | ||||
| Theendoftheyear | 2,353,200,553.74 | 1,524,761.59 | 2,227,077.66 | 2,356,952,392.99 |
Thebeginningofyear
| Thebeginningofyear | 1,982,040,143.07 | 10,394,644.35 | 2,323,074.65 | 1,994,757,862.07 |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Intangibleassets
31December2021
| 31December2021 | 31December2020 |
Intangibleassets
| Intangibleassets | 669,926,562.82 | 734,345,179.40 |
2021
| 2021 | Landuserights | Software | Trademarkandbranduserights | Favourableleases | Distributionnetwork | Franchise | Total |
Originalcost
| Originalcost | |||||||
| Openingbalance | 88,694,377.76 | 198,298,230.20 | 282,036,925.12 | 127,486,000.00 | 283,573,678.24 | 710,000.00 | 980,799,211.32 |
| Purchase | - | 14,559,921.40 | - | - | - | - | 14,559,921.40 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | - | 221,415.51 | 40,440,000.00 | - | - | - | 40,661,415.51 |
| Transferfromconstructioninprogress | - | 19,443,779.83 | - | - | - | - | 19,443,779.83 |
| Transferfrominvestmentproperties | 25,090.42 | - | - | - | - | - | 25,090.42 |
| Disposalordiscard | - | (1,207,082.81) | - | - | - | - | (1,207,082.81) |
Closingbalance
| Closingbalance | 88,719,468.18 | 231,316,264.13 | 322,476,925.12 | 127,486,000.00 | 283,573,678.24 | 710,000.00 | 1,054,282,335.67 |
Accumulatedamortisation
| Accumulatedamortisation | |||||||
| 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) |
| Provision | (1,813,760.30) | (25,870,279.71) | (13,459,390.62) | (7,085,955.88) | (15,975,813.30) | - | (64,205,199.81) |
| Transferfrominvestmentproperties | (3,512.49) | - | - | - | - | - | (3,512.49) |
| Disposalordiscard | - | 306,971.37 | - | - | - | - | 306,971.37 |
Closingbalance
| Closingbalance | (32,482,133.76) | (136,724,139.35) | (18,520,174.43) | (44,964,482.67) | (76,954,842.64) | (710,000.00) | (310,355,772.85) |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Intangibleassets(Continued)
2021(Continued)
| 2021(Continued) | Landuserights | Software | Trademarkandbranduserights | Favourableleases | Distributionnetwork | Franchise | Total |
Provisionforimpairment
| Provisionforimpairment | |||||||
| Openingbalance | - | - | - | - | - | - | - |
| Provision | - | - | (43,000,000.00) | - | (31,000,000.00) | - | (74,000,000.00) |
Closingbalance
| Closingbalance | - | - | (43,000,000.00) | - | (31,000,000.00) | - | (74,000,000.00) |
Carryingamount
| Carryingamount | |||||||
| Atendoftheyear | 56,237,334.42 | 94,592,124.78 | 260,956,750.69 | 82,521,517.33 | 175,618,835.60 | - | 669,926,562.82 |
Atbeginningoftheyear
| Atbeginningoftheyear | 58,029,516.79 | 87,137,399.19 | 276,976,141.31 | 89,607,473.21 | 222,594,648.90 | - | 734,345,179.40 |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Intangibleassets(Continued)
2020
| 2020 | Landuserights | Software | Trademarksandbrandsuserights | Favourableleases | Distributionnetwork | Franchise | Total |
Originalcost
| Originalcost | |||||||
| Openingbalance | 62,083,143.97 | 175,625,594.44 | 92,349,850.00 | 127,486,000.00 | 112,117,142.86 | 710,000.00 | 570,371,731.27 |
| Purchase | - | 7,672,816.94 | - | - | - | - | 7,672,816.94 |
| Businesscombinationnotinvolvingenterprisesundercommoncontrol | 24,880,950.20 | 2,142,366.10 | 189,687,075.12 | - | 171,456,535.38 | - | 388,166,926.80 |
| Transferfromconstructioninprogress | - | 13,197,683.52 | - | - | - | - | 13,197,683.52 |
| Transferfrominvestmentproperties | 1,730,283.59 | - | - | - | - | - | 1,730,283.59 |
| Disposalordiscard | - | (340,230.80) | - | - | - | - | (340,230.80) |
Closingbalance
| Closingbalance | 88,694,377.76 | 198,298,230.20 | 282,036,925.12 | 127,486,000.00 | 283,573,678.24 | 710,000.00 | 980,799,211.32 |
Accumulatedamortisation
| Accumulatedamortisation | |||||||
| Openingbalance | (28,858,577.16) | (88,726,743.09) | (196,850.16) | (30,792,570.91) | (46,298,190.47) | (710,000.00) | (195,582,931.79) |
| Provision | (1,355,326.17) | (22,774,318.72) | (4,863,933.65) | (7,085,955.88) | (14,680,838.87) | - | (50,760,373.29) |
| Transferfrominvestmentproperties | (450,957.64) | - | - | - | - | - | (450,957.64) |
| Disposalordiscard | - | 340,230.80 | - | - | - | - | 340,230.80 |
Closingbalance
| Closingbalance | (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) |
VNotestotheconsolidatedfinancialstatements(Continued)
17.Intangibleassets(Continued)
2020(Continued)
| 2020(Continued) | Landuserights | Software | Trademarksandbrandsuserights | Favourableleases | Distributionnetwork | Franchise | Total |
Provisionforimpairment
| Provisionforimpairment | |||||||
| Openingbalance | - | - | - | - | - | - | - |
Closingbalance
| Closingbalance | - | - | - | - | - | - | - |
Carryingamount
| Carryingamount | |||||||
| Atendoftheyear | 58,029,516.79 | 87,137,399.19 | 276,976,141.31 | 89,607,473.21 | 222,594,648.90 | - | 734,345,179.40 |
Atbeginningoftheyear
| Atbeginningoftheyear | 33,224,566.81 | 86,898,851.35 | 92,152,999.84 | 96,693,429.09 | 65,818,952.39 | - | 374,788,799.48 |
Asat31December2021,intangibleassetsformedthroughinternalresearchintheyear-endbookvalueofintangibleassetswas9.10%(31December2020:
7.32%).Asat31December2021and31December2020,therewerenointangibleassetswhosecertificatesoftitlehavenotbeenobtained..Accordingtotheresultsoftheintangibleassetimpairmenttesting,theGroup'sprovisionofintangibleassetimpairmentlossofRMB74,000,000.00fortheyearwasreviewedandapprovedbytheDirectorsoftheCompanyatitsmeetingheldonMarch8,2022.
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill
2021
| 2021 | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Businesscombinationsnotundercommoncontrol |
Pharmaceuticaldistribution
| Pharmaceuticaldistribution | ||||
| SinopharmHolding(Jiangmen)Co.,Ltd.(“SinopharmJiangmen”) | 27,392,317.73 | - | - | 27,392,317.73 |
| SinopharmHoldingShenzhenYanfengCo.,Ltd.(“SinopharmYanfeng”) | 16,868,644.87 | - | - | 16,868,644.87 |
| SinopharmHoldingZhaoqingCo.,Ltd.(“SinopharmZhaoqing”) | 2,594,341.53 | - | - | 2,594,341.53 |
| SinopharmHoldingShaoguanCo.,Ltd.(“SinopharmShaoguan”) | 1,686,496.80 | - | - | 1,686,496.80 |
| SinopharmHoldingMeizhouCo.,Ltd.(“SinopharmMeizhou”) | 1,610,819.66 | - | - | 1,610,819.66 |
| SinopharmHoldingHuizhouCo.,Ltd.(“SinopharmHuizhou”) | 923,184.67 | - | - | 923,184.67 |
| SinopharmHoldingZhanjiangCo.,Ltd.(“SinopharmZhanjiang”) | 282,135.55 | - | - | 282,135.55 |
| SinopharmHoldingDongguanCo.,Ltd.(“SinopharmDongguan”) | 1,499.02 | - | - | 1,499.02 |
| SouthPharma&Trade | 2,755,680.62 | - | - | 2,755,680.62 |
| FoshanNanhai | 88,877,850.51 | - | - | 88,877,850.51 |
| SinopharmHoldingZhuhaiCo.,Ltd.(“SinopharmZhuhai”) | 6,772,561.47 | 6,772,561.47 | ||
| SinopharmHoldingMaomingCo.,Ltd.(“SinopharmMaoming”) | 66,417.07 | - | - | 66,417.07 |
| SinopharmHoldingGuodaForMeMedicines(Shanghai)Co.,Ltd.(“ForMeMedicines’’) | 3,033,547.53 | - | - | 3,033,547.53 |
Pharmaceuticalretail
| Pharmaceuticalretail | ||||
| SinopharmHebeiLerentangPharmacyChainStoreCo.,Ltd.(“HebeiLerentang”) | 29,482,149.57 | - | - | 29,482,149.57 |
| XiaoyiGuodaWanminBaicaotangPharmacyChainStoreCo.,Ltd.(“XiaoyiWanmin”) | 15,866,680.00 | - | - | 15,866,680.00 |
| ShanxiGuodaWanminPharmacyChainStoreCo.,Ltd.(“ShanxiWanmin”) | 65,025,000.00 | - | - | 65,025,000.00 |
| SinopharmHoldingGuodaForMePharmacyChainStoreShanghaiCo.,Ltd.(“ForMePharmacyChainStore”) | 19,405,450.23 | - | - | 19,405,450.23 |
| SinopharmHoldingGuodaPharmacyChainStoreShanghaiCo.,Ltd.(“ChainStoreShanghai”) | 5,028,638.00 | - | - | 5,028,638.00 |
| SinopharmHoldingGuodaYangzhouDadeshengPharmacyChainStoreCo.,Ltd.(“YangzhouDadesheng”) | 7,979,000.00 | - | - | 7,979,000.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)
2021(Continued)
| 2021(Continued) | Openingbalance | Increaseduringtheyears | Decreaseduringtheyear | Closingbalance |
| Businesscombinationsnotundercommoncontrol |
Pharmaceuticalretail(Continued)
| Pharmaceuticalretail(Continued) | ||||
| ZhejiangGuodaPharmacyCo.,Ltd.(“GuodaZhejiang”) | 3,045,183.85 | - | - | 3,045,183.85 |
| SinopharmHoldingGuodaNanjingPharmacyChainStoreCo.,Ltd.(“GuodaNanjing”) | 11,598,341.12 | - | - | 11,598,341.12 |
| FujianGuodaPharmacyChainStoreCo.,Ltd.(“GuodaFujian”) | 1,567,250.76 | - | - | 1,567,250.76 |
| SinopharmHoldingGuodaShandongPharmacyChainStoreCo.,Ltd.(“GuodaShandong”) | 29,110,409.46 | - | - | 29,110,409.46 |
| SinopharmHoldingGuodaShenyangPharmacyChainStoreCo.,Ltd.(“GuodaShenyang”) | 41,047,958.08 | - | - | 41,047,958.08 |
| LiyangGuodaPeoplePharmacyChainStoreCo.,Ltd.(“GuodaLiyang”) | 107,275,095.74 | - | - | 107,275,095.74 |
| SinopharmHoldingHunanGuodaMinshengtangPharmacyChainCo.,Ltd.(“GuodaHunan”) | 41,165,574.64 | - | - | 41,165,574.64 |
| QuanzhouGuodaPharmacyChainStoreCo.,Ltd.(“GuodaQuanzhou”) | 41,298,622.59 | - | - | 41,298,622.59 |
| SinopharmHoldingGuodaHenanPharmacyChainStoreCo.,Ltd.(“GuodaHenan”) | 22,666,179.77 | - | - | 22,666,179.77 |
| GuodaInnerMongolia | 70,485,777.00 | - | - | 70,485,777.00 |
| SinopharmGuodaPharmacyJiangmenChainCo.,Ltd.(“GuodaJiangmen”) | 77,350,000.00 | - | - | 77,350,000.00 |
| SinopharmHoldingGuodaShanxiYiyuanPharmacyChainStoreCo.,Ltd.(“ShanxiYiyuan”) | 9,080,100.00 | - | - | 9,080,100.00 |
| ShenzhenGuanganliPharmacyChainStoreCo.,Ltd.storeacquisition(“ShenzhenGuanganli”) | 13,420,000.00 | - | - | 13,420,000.00 |
| BeijingGoldenElephantPharmacyMedicineChainCompanyLimited(“BeijingGoldenElephant”) | 64,140,124.36 | - | - | 64,140,124.36 |
| GuodaTaishan | 26,826,120.55 | - | - | 26,826,120.55 |
| SinopharmGuodaTaiyuanTongxinliPharmacyCo.,Ltd.(“TaiyuanTongxinli”) | 2,818,647.85 | - | - | 2,818,647.85 |
| ChaoyangYongxingtangPharmacyChainStoreCo.,Ltd.(“ChaoyangYongxingtang”)stores’acquisition | 25,973,399.17 | - | - | 25,973,399.17 |
| InnerMongoliaTongrenPharmacyChainStoreCo.,Ltd.(“InnerMongoliaTongren”)stores’acquisition | 13,494,000.00 | - | - | 13,494,000.00 |
| GuodaPu’er | 71,064,684.79 | - | - | 71,064,684.79 |
| ShanghaiPudongNewAreaMedicine&MedicationCo.,Ltd.(“PudongMedicine”) | 65,978,042.61 | - | - | 65,978,042.61 |
| ShanghaiDingqun | 520,836,246.17 | - | - | 520,836,246.17 |
| ChengdaFangyuanPharmaceuticalGroupCo.,Ltd.(“CDFY”) | 1,182,443,676.11 | - | - | 1,182,443,676.11 |
| LiaoningXianzhenPharmaceuticalChainCo.,Ltd.(“LiaoningXianzhen”)stores’acquisition | 34,037,431.66 | - | - | 34,037,431.66 |
| SinopharmNantongPujipharmacychainCo.,Ltd.(“NantongPuji”)stores’acquisition | - | 11,498,100.00 | - | 11,498,100.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)
2021(Continued)
| 2021(Continued) | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Businesscombinationsnotundercommoncontrol |
Pharmaceuticalretail(Continued)
| Pharmaceuticalretail(Continued) | ||||
| ShanxiHuiminKangweipharmacychainCo.,Ltd.(“HuiminKangwei”)stores’acquisition | - | 20,970,000.00 | - | 20,970,000.00 |
| DishengPharmacyChain | - | 158,492,204.21 | - | 158,492,204.21 |
| 2,772,375,281.11 | 190,960,304.21 | - | 2,963,335,585.32 |
2020
| 2020 | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Businesscombinationsnotundercommoncontrol |
Pharmaceuticaldistribution
| Pharmaceuticaldistribution | ||||
| SinopharmJiangmen | 27,392,317.73 | - | - | 27,392,317.73 |
| SinopharmYanfeng | 16,868,644.87 | - | - | 16,868,644.87 |
| SinopharmZhaoqing | 2,594,341.53 | - | - | 2,594,341.53 |
| SinopharmShaoguan | 1,686,496.80 | - | - | 1,686,496.80 |
| SinopharmMeizhou | 1,610,819.66 | - | - | 1,610,819.66 |
| SinopharmHuizhou | 923,184.67 | - | - | 923,184.67 |
| SinopharmZhanjiang | 282,135.55 | - | - | 282,135.55 |
| SinopharmDongguan | 1,499.02 | - | - | 1,499.02 |
| SouthPharma&Trade | 2,755,680.62 | - | - | 2,755,680.62 |
| FoshanNanhai | 88,877,850.51 | - | - | 88,877,850.51 |
| SinopharmZhuhai | 6,772,561.47 | 6,772,561.47 | ||
| SinopharmMaoming | 66,417.07 | - | - | 66,417.07 |
| ForMeMedicines | 3,033,547.53 | - | - | 3,033,547.53 |
Pharmaceuticalretail
| Pharmaceuticalretail | ||||
| HebeiLerentang | 29,482,149.57 | - | - | 29,482,149.57 |
| XiaoyiWanmin | 15,866,680.00 | - | - | 15,866,680.00 |
| ShanxiWanmin | 65,025,000.00 | - | - | 65,025,000.00 |
| ForMePharmacyChainStore | 19,405,450.23 | - | - | 19,405,450.23 |
| ChainStoreShanghai | 5,028,638.00 | - | - | 5,028,638.00 |
| YangzhouDadesheng | 7,979,000.00 | - | - | 7,979,000.00 |
| GuodaZhejiang | 3,045,183.85 | - | - | 3,045,183.85 |
| GuodaNanjing | 11,598,341.12 | - | - | 11,598,341.12 |
| GuodaFujian | 1,567,250.76 | - | - | 1,567,250.76 |
| GuodaShandong | 29,110,409.46 | - | - | 29,110,409.46 |
| GuodaShenyang | 41,047,958.08 | - | - | 41,047,958.08 |
| GuodaLiyang | 107,275,095.74 | - | - | 107,275,095.74 |
| GuodaHunan | 41,165,574.64 | - | - | 41,165,574.64 |
| GuodaQuanzhou | 41,298,622.59 | - | - | 41,298,622.59 |
| GuodaHenan | 22,666,179.77 | - | - | 22,666,179.77 |
| GuodaInnerMongolia | 70,485,777.00 | - | - | 70,485,777.00 |
| GuodaJiangmen | 77,350,000.00 | - | - | 77,350,000.00 |
| ShanxiYiyuan | 9,080,100.00 | - | - | 9,080,100.00 |
| ShenzhenGuanganlistores’acquisition | 13,420,000.00 | - | - | 13,420,000.00 |
| BeijingGoldenElephant | 64,140,124.36 | - | - | 64,140,124.36 |
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)
2020(Continued)
| 2020(Continued) | Openingbalance | Increaseduringtheyear | Decreaseduringtheyear | Closingbalance |
| Businesscombinationsnotundercommoncontrol |
Pharmaceuticalretail(Continued)
| Pharmaceuticalretail(Continued) | ||||
| GuodaTaishan | 26,826,120.55 | - | - | 26,826,120.55 |
| TaiyuanTongxinli | 2,818,647.85 | - | - | 2,818,647.85 |
| AcquisitionofstoreofChaoyangYongxingtang | 25,973,399.17 | - | - | 25,973,399.17 |
| AcquisitionofstoreofInnerMongoliaTongren | 13,494,000.00 | - | - | 13,494,000.00 |
| GuodaPu’er | 71,064,684.79 | - | - | 71,064,684.79 |
| PudongMedicine | 65,978,042.61 | - | - | 65,978,042.61 |
| ShanghaiDingqun | - | 520,836,246.17 | - | 520,836,246.17 |
| CDFY | - | 1,182,443,676.11 | - | 1,182,443,676.11 |
| AcquisitionofstoreofLiaoningXianzhen | - | 34,037,431.66 | - | 34,037,431.66 |
1,035,057,927.17
| 1,035,057,927.17 | 1,737,317,353.94 | - | 2,772,375,281.11 |
Changesinprovisionforimpairmentofgoodwillarepresentedasfollows:
| 2021 | Openingbalance | Increase | Decrease | Closingbalance |
| Provision | Disposal |
Pharmaceuticalretail
| Pharmaceuticalretail | ||||
| GuodaQuanzhou | 25,000,000.00 | - | - | 25,000,000.00 |
| JilinTianhe | - | 162,690,000.00 | - | 162,690,000.00 |
25,000,000.00
| 25,000,000.00 | 162,690,000.00 | - | 187,690,000.00 |
2020
| 2020 | Openingbalance | Increase | Decrease | Closingbalance |
| Provision | Disposal |
Pharmaceuticalretail
| Pharmaceuticalretail | ||||
| GuodaQuanzhou | 25,000,000.00 | - | - | 25,000,000.00 |
GuodaDrugstore,theCompany’ssubsidiary,hadacquired70%equityofYunnanGuodaDishengMedicineandDishengPharmacyChaininMarch2021,whichsavedrisetogoodwillamountingtoRMB158,492,204.21.RefertoNoteVI(1.1)formoredetails.YangzhouDadesheng,theCompany’ssubsidiary,hadacquired15storesofNantongPujiinMarch2021,whichsavedrisetogoodwillamountingtoRMB11,498,100.00.RefertoNoteVI(1.2)formoredetails.ShanxiWanmin,theCompany’ssubsidiary,hadacquired32storesofHuiminKangweiinFebruary2021,whichsavedrisetogoodwillamountingtoRMB20,970,000.00.RefertoNoteVI(1.3)formoredetails.Accordingtotheresultsofthegoodwillimpairmenttest,theproposaloftheGrouptorecordagoodwillimpairmentlossofRMB162,690,000.00fortheyearwasreviewedandapprovedbytheboardmeetingoftheCompanyheldon8March2022.
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)
Thegoodwillobtainedfrombusinesscombinationhasbeenallocatedtotheoperatingassetgroupsoftheprincipleoperationsinrelevantsubsidiariesforgoodwillimpairmenttest.Theseassetgroupsareconsistentwiththeassetgroupsrecognizedonthepurchasedateandinthegoodwillimpairmenttestinpreviousyears.Therecoverableamountisdeterminedaccordingtothepresentvalueoftheexpectedfuturecashflowoftheoperatingassetgroupsoftheprincipleoperationsofeachsubsidiarywithgoodwill.Managementestimatesfuturecashflowsbasedonadetailedfive-yearforecastperiodandsubsequentforecastperiods.Theprojectedfuturecashflowsforthedetailedforecastperiodaredeterminedbasedonthebusinessplanmadebymanagement.Theestimatedfuturecashflowforthesubsequentforecastperiodisdeterminedbythecashflowofthelastyearofthedetailedforecastperiod,theGroup'sbusinessplan,developmenttrendsoftheindustryandotherfactors.Therecoverableamountofassetgroupsandassetgroupscombinationiscalculatedbythefive-yearbudgetapprovedbythemanagement,usingthecashflowforecastingmethod.Cashflowbeyondthefive-yearperiodisextrapolatedrefertotheinflationrate.ThekeyassumptionstodeterminethecashflowforecastwhentheGroupconductsgoodwillimpairmenttestareasfollows:
(1)Itisassumedthattheentitycontinuestooperate,andthereisnomajorchangefromthe
currentsituationinkeyaspectssuchasbusinessscope,salesmodelandchannels,managementandotherfactorsthataffectproductionandoperation;
(2)Itisassumedthatthesocio-economicenvironmentwheretheentityislocatedwillnotundergomajorchanges,andthattherelevantlawsandregulationsoftheregionwhereitislocatedhasnomajorchangesfromthepresent;
(3)Itisassumedthatthebusinessscope,businessmode,andmanagementmodeloftheentity
arecontinuouslyimprovedandperfectedbasedonmaintainingconsistency.Theentitycanadjustandinnovateinatimelymannerwiththedevelopmentoftheeconomy;
(4)Itisassumedthatinterestratesandtaxrateswillhavenosignificantchangeswithinthe
specifiednormalrange.Keyassumptionswereusedtocalculatetheestimatedpresentvaluesoffuturecashflowoftheassetgroups,pharmaceuticaldistributionandpharmaceuticalretailon31December2021.Keyassumptionsmadebythemanagementonprojectionsofcashflowsusedingoodwillimpairmenttestingaredescribedasfollows:
Pharmaceuticaldistribution
| Pharmaceuticaldistribution | Pharmaceuticalretail |
Revenuegrowthrateinthebudgetperiod
| Revenuegrowthrateinthebudgetperiod | 2.49%-17.00% | -2.25%-14.03% |
| Sustainablegrowthrate | 3.00% | 3.00% |
| Grossmargin | 3.34%-6.20% | 12.36%-52.00% |
| Discountrate | 12.40%-15.00% | 12.58%-15.00% |
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)Themanagementdeterminedthebudgetedgrossmarginandweightaveragegrowthratebasedonthehistoricalperformanceandmarketdevelopmentexpectation.Thediscountratesareusedaspre-taxdiscountratesreflectingspecificrisksoftherelevantassetgroupsandgroupsofassetgroups.Theaboveassumptionsareusedtoanalysetherecoverableamountofeachassetgroupandgroupofassetgroupsinthebusinesssegment.ThemainoperatingentityofShanghaiDingqunisSinopharmHoldingTianheJilinPharmaceuticalCo.,Ltd.("JilinTianhe"),whichismainlyengagedinpharmaceuticalwholesaleandretailbusiness.ThegoodwillformedbytheGroup'sacquisitionofShanghaiDingqunwasallocatedtoJilinTianhein2021,whichwasconsistentwiththeassetgroupdeterminedduringtheimpairmenttestin2020.JilinTianheismainlyengagedindirectsalesofmedicalinstitutions,commercialpharmaceuticaldistribution,retailchain,logisticsanddistribution,etc.Itsbusinessisgenerallycomposedofwholesaleandretailsectors.In2021,theperformancedroppedsignificantlyduetothesuperimposedeffectsofmultiplefactorssuchastheCovid-19andindustrypolicies.Pharmaceuticalwholesale:In2021,salesfellduetotheimpactoftheCovid-19,4+7centralizedpurchasing,thegeneralreductionofhospitaldrugpricescausedbytheimplementationofnewstandardsinJilinProvince,thecompany'sreductionininventoryturnover,andtheamountofcommoditycooperationwithlowgrossprofitcontribution,etc.In2021,theepidemicsituationinJilinProvincecontinuedtorecur,thenumberofpatientsarestilllimited,thehospital'sfundswereundergreatpressure,andpaymentcollectionsloweddown;Chaincustomersareaffectedbytheepidemicsincethesalesofdrugsusingtocurefeverandcough,anti-virusandantibioticswereundercontrol,resultinginadeclineinitsturnover,andcontinuedpressureoncapitalturnover,whichsuppressedthepaymentofgoodsfromdistributors.Inthisway,thereceivablesturnoverdaysofJilinTianhe’schaincustomersextended,andJilinTianhe’sworkingcapitalaccountedforarelativelyhighproportionofrevenue.Retailsector:In2021,thesalesofdrugsusingtocurefeverandcough,anti-virusandantibioticswereberemovedfromtheshelvesduetocontrolledsales,resultinginadeclineinsales.Meanwhile,customers'consumptionhabitshavechangedduetotheimpactoftheepidemic,thatonlinedrugpurchaseshaveincreased.Therefore,thecompany'ssalesstructurehaschanged.In2021,theproportionofB2Cbusinesssalesincreased,expensesincreasedsignificantly,andprofitmarginsdecreased.TherecoverableamountoftheassetgroupsinwhichShanghaiDingqunisincludedwascalculatedbasedonthefive-yearbudgetapprovedbythecompany'smanagement,usingthecashflowforecastingmethod,andthecashflowbeyondthefive-yearperiodiscalculatedrefertotheinflationrate.ThekeyassumptionsmadebytheGroupwhenconductingthegoodwillimpairmenttestanddeterminingthecashflowforecastareasfollows:
Keyassumptions
| Keyassumptions | Predictionindex |
| Averagerevenuegrowthrateinthebudgetperiod | 11.91% |
| Sustainablegrowthrate | 3.00% |
| Averagenetinterestrateinthebudgetperiod | 3.12% |
| Discountrate | 12.58% |
VNotestotheconsolidatedfinancialstatements(Continued)
18.Goodwill(Continued)
AfteraprudentassessmentoftherecoverablevalueofShanghaiDingqun'srelevantassetgroups,theGroupmadeaprovisionforimpairmentofgoodwillofRMB162,690,000.00forthegoodwillformedbytheacquisitionofShanghaiDingqunduringthereportingperiod.
19.Long-termprepaidexpenses
2021
| 2021 | Openingbalance | Increase | Amortisation | Otherdecrease | Closingbalance |
Fixedassetimprovementexpenditureofoperatingleases
| Fixedassetimprovementexpenditureofoperatingleases | 336,895,157.13 | 244,798,669.54 | (128,242,371.51) | (5,536,204.71) | 447,915,250.45 |
| Acquisitionexpendituretoobtaintherighttooperate | 95,802,321.95 | 94,688,249.44 | (24,476,725.85) | - | 166,013,845.54 |
| Others | 25,007,797.01 | 5,099,952.06 | (10,061,403.30) | - | 20,046,345.77 |
457,705,276.09
| 457,705,276.09 | 344,586,871.04 | (162,780,500.66) | (5,536,204.71) | 633,975,441.76 |
2020
| 2020 | Openingbalance | Increase | Amortisation | Otherdecrease | Closingbalance |
Fixedassetimprovementexpenditureofoperatingleases
| Fixedassetimprovementexpenditureofoperatingleases | 289,508,030.05 | 152,559,690.26 | (103,648,906.24) | (1,523,656.94) | 336,895,157.13 |
| Acquisitionexpendituretoobtaintherighttooperate | 56,532,005.51 | 61,782,068.03 | (22,511,751.59) | - | 95,802,321.95 |
| Others | 27,487,932.58 | 7,479,650.45 | (9,951,162.18) | (8,623.84) | 25,007,797.01 |
373,527,968.14
| 373,527,968.14 | 221,821,408.74 | (136,111,820.01) | (1,532,280.78) | 457,705,276.09 |
20.Deferredtaxassets/liabilities
Deferredtaxassetsanddeferredtaxliabilitiesbeforeoffsettingareasfollows:
31December2021
| 31December2021 | 31December2020 | |||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
Deferredtaxassets
| Deferredtaxassets | |||||
| Provisionforimpairmentofassets | 204,535,469.12 | 49,334,631.28 | 170,577,875.56 | 40,697,280.41 | |
| Deductibleloss | 156,999,428.65 | 39,093,138.09 | 30,798,485.93 | 7,699,621.49 | |
| Effectoftheleasestandard | 126,166,577.96 | 29,685,521.43 | 93,685,083.09 | 22,420,179.23 | |
| Accruedsellingexpenses | 109,319,247.99 | 25,802,416.16 | 113,445,282.36 | 26,095,709.73 | |
| Payrollpayable | 59,779,846.77 | 14,472,633.63 | 47,280,390.08 | 11,210,512.95 | |
| Membershipawardpoints | 56,953,502.72 | 13,804,027.96 | 59,179,220.98 | 14,575,814.61 | |
| Others | 15,774,146.45 | 3,884,627.84 | 21,096,550.78 | 4,641,850.41 |
729,528,219.66
| 729,528,219.66 | 176,076,996.39 | 536,062,888.78 | 127,340,968.83 |
VNotestotheconsolidatedfinancialstatements(Continued)
20.Deferredtaxassets/liabilities(Continued)
31December2021
| 31December2021 | 31December2020 | |||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
Deferredtaxliabilities
| Deferredtaxliabilities | |||||
| Fairvalueadjustmentsforabusinesscombinationnotinvolvingenterprisesundercommoncontrol | 636,489,820.31 | 159,122,455.09 | 713,703,864.68 | 178,425,966.17 | |
| FixedassetslessthanRMB5millionwhicharedeductedatonce | 168,175,688.17 | 41,874,528.38 | 126,722,799.31 | 31,679,099.86 | |
| Changesinfairvalueoffinancialassetsthroughothercomprehensiveincome | 48,802,552.99 | 12,200,638.25 | 85,802,580.28 | 21,450,645.07 | |
| Changesinassetvaluationduetochangeincompanypolicy | 14,911,259.12 | 3,727,814.78 | 17,160,546.40 | 4,290,136.60 | |
| Others | 25,604,493.16 | 5,359,719.05 | 25,205,927.86 | 5,297,761.98 |
893,983,813.75
| 893,983,813.75 | 222,285,155.55 | 968,595,718.53 | 241,143,609.68 |
Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachotherareas
follows:
Deferredtaxassetsandliabilitiesarepresentedafterbeingoffsetagainsteachotherareas
follows:
31December2021
| 31December2021 | 31December2020 | |||
| Theamountofoffset | Deferredtaxassets/liabilities-net | Theamountofoffset | Deferredtaxassets/liabilities-net | |
Deferredtaxassets
| Deferredtaxassets | 46,336,826.62 | 129,740,169.77 | 35,222,201.02 | 92,118,767.81 |
Deferredtax
liabilities
| Deferredtaxliabilities | 46,336,826.62 | 175,948,328.93 | 35,222,201.02 | 205,921,408.66 |
Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognisedasdeferredtaxassetsarepresentedasfollows:
Thedeductibletemporarydifferencesanddeductiblelossesthatwerenotrecognisedasdeferredtaxassetsarepresentedasfollows:
31December2021
| 31December2021 | 31December2020 |
Deductibletemporarydifferences
| Deductibletemporarydifferences | 11,238,147.54 | 9,435,555.39 |
| Deductiblelosses(1) | 59,698,786.44 | 61,373,403.25 |
70,936,933.98
| 70,936,933.98 | 70,808,958.64 |
(1)Forthoseloss-makingsubsidiaries,asitisnotconsideredprobablethattaxableprofitswillbeavailable
againstwhichthetaxlossescanbeutilised,theGrouphasnotrecognisedthedeferredtaxassetfortheaccumulatedlossesamountingtoRMB59,698,786.44ofthedeductibletaxableincomeofthoseloss-makingsubsidiaries.
VNotestotheconsolidatedfinancialstatements(Continued)
20.Deferredtaxassets/liabilities(Continued)
Thedeductiblelossesonunrecogniseddeferredtaxassetswillbedueinthefollowingyears:
Thedeductiblelossesonunrecogniseddeferredtaxassetswillbedueinthefollowingyears:
31December2021
| 31December2021 | 31December2020 |
2021
| 2021 | - | 2,563,056.08 |
| 2022 | 6,641,123.64 | 10,708,676.12 |
| 2023 | 8,298,591.45 | 12,443,327.47 |
| 2024 | 23,628,477.37 | 25,745,840.71 |
| 2025 | 8,439,382.18 | 9,912,502.87 |
| 2026 | 12,691,211.80 | - |
59,698,786.44
| 59,698,786.44 | 61,373,403.25 |
21.Othernon-currentassets
| 31December2021 | 31December2020 |
Speciallyapprovedreservingmaterials
| Speciallyapprovedreservingmaterials | 296,857,937.49 | 260,590,932.98 | |
| Guarantees | 101,794,142.50 | 114,186,431.57 | |
| Prepaymentforprojectsandequipment | 39,854,590.30 | 24,809,091.30 | |
| Contractassets | 16,587,685.64 | 6,999,074.72 | |
| Others | 4,891,413.31 | 1,611,992.27 |
459,985,769.24
| 459,985,769.24 | 408,197,522.84 |
22.Short-termborrowings
| 31December2021 | 31December2020 |
Creditborrowings
| Creditborrowings | 1,930,467,146.38 | 1,612,187,020.12 |
Asat31December2021,theweightedaverageannualinterestrateoftheaboveborrowingswas
0.44%-4.50%(31December2020:0.56%-5.00%).
Asat31December2021,theweightedaverageannualinterestrateoftheaboveborrowingswas
0.44%-4.50%(31December2020:0.56%-5.00%).Asat31December2021and31December2020,noshort-termborrowingsoftheGrouphavematuredbutwerenotyetpaid.
VNotestotheconsolidatedfinancialstatements(Continued)
23.Notespayable
31December2021
| 31December2021 | 31December2020 |
Commercialacceptancebills
| Commercialacceptancebills | 73,700,292.69 | 56,360,197.69 | ||
| Bankacceptancebills | 7,586,516,530.99 | 7,463,805,077.00 |
7,660,216,823.68
| 7,660,216,823.68 | 7,520,165,274.69 |
At31December2021and31December2020,nonotespayableoftheGrouphavematuredbutwerenotyetpaid.
24.AccountspayableAccountspayableareinterest-freeandwillbepaidnormallybetween1and6months.
| 31December2021 | 31December2020 |
Paymentforgoods
| Paymentforgoods | 9,057,718,968.14 | 7,697,451,142.50 |
At31December2021,significantaccountspayableagedoveroneyearwereanalysedbelow:
| Amount | Reason |
Paymentforgoods
| Paymentforgoods | 460,528,323.13 | Notyetsettled |
25.Advancedreceivables
| 31December2021 | 31December2020 |
Advancedleasepayment
| Advancedleasepayment | 19,289,567.44 | 12,352,466.64 |
26.Contractliabilities
| 31December2021 | 31December2020 |
Contractliabilities
| Contractliabilities | 431,303,231.37 | 368,600,357.14 |
TheendingbalanceofcontractliabilitiesistheadvancepaymentsreceivedbytheGroup.Generally,aftertheGroupreceivestheadvancepaymentsbythecustomersforthesalesofgoods,itwillperformtheperformanceobligationsandrecognisetherevenuewithinabout6months.
VNotestotheconsolidatedfinancialstatements(Continued)
27.Employeebenefitspayable
2021
| 2021 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
Short-termemployeebenefits
| Short-termemployeebenefits | 347,602,975.86 | 3,022,481,722.01 | (3,037,343,973.01) | 332,740,724.86 |
| Post-employmentbenefits(definedcontributionplan) | 9,216,204.49 | 288,373,093.26 | (290,325,654.07) | 7,263,643.68 |
| Terminationbenefits | 392,866.75 | 1,130,908.95 | (1,331,018.91) | 192,756.79 |
357,212,047.10
| 357,212,047.10 | 3,311,985,724.22 | (3,329,000,645.99) | 340,197,125.33 |
2020
| 2020 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
Short-termemployeebenefits
| Short-termemployeebenefits | 254,250,943.71 | 2,659,830,539.44 | (2,566,478,507.29) | 347,602,975.86 |
| Post-employmentbenefits(definedcontributionplan) | 5,057,047.69 | 122,670,266.27 | (118,511,109.47) | 9,216,204.49 |
| Terminationbenefits | 332,821.70 | 1,044,714.24 | (984,669.19) | 392,866.75 |
259,640,813.10
| 259,640,813.10 | 2,783,545,519.95 | (2,685,974,285.95) | 357,212,047.10 |
VNotestotheconsolidatedfinancialstatements(Continued)
27.Employeebenefitspayable(Continued)
Short-termemployeebenefits:
Short-termemployeebenefits:
2021
| 2021 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Salaries,bonuses,allowancesandgrants
| Salaries,bonuses,allowancesandgrants | 330,233,181.61 | 2,620,557,385.11 | (2,640,034,334.79) | 310,756,231.93 | |||
| Staffwelfare | 1,469,381.07 | 81,943,225.52 | (81,516,526.62) | 1,896,079.97 | |||
| Socialsecuritycontribution | 2,194,328.52 | 160,467,133.87 | (157,992,646.14) | 4,668,816.25 | |||
| Including:Medicalinsurance | 1,531,693.95 | 149,493,307.88 | (146,468,248.07) | 4,556,753.76 | |||
| Workinjuryinsurance | 84,285.35 | 6,209,447.97 | (6,201,158.86) | 92,574.46 | |||
| Maternityinsurance | 578,349.22 | 4,764,378.02 | (5,323,239.21) | 19,488.03 | |||
| Housingfunds | 1,650,393.19 | 109,436,368.55 | (109,112,123.03) | 1,974,638.71 | |||
| Labourunionfundsandemployeeeducationfunds | 11,183,869.70 | 47,392,989.69 | (46,003,723.16) | 12,573,136.23 | |||
| Othershort-termbenefits | 871,821.77 | 2,684,619.27 | (2,684,619.27) | 871,821.77 |
347,602,975.86
| 347,602,975.86 | 3,022,481,722.01 | (3,037,343,973.01) | 332,740,724.86 |
2020
| 2020 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Salaries,bonuses,allowancesandgrants
| Salaries,bonuses,allowancesandgrants | 240,039,850.54 | 2,339,888,250.22 | (2,249,694,919.15) | 330,233,181.61 | |||
| Staffwelfare | 1,390,324.53 | 78,183,745.16 | (78,104,688.62) | 1,469,381.07 | |||
| Socialsecuritycontribution | 1,749,787.15 | 106,178,873.53 | (105,734,332.16) | 2,194,328.52 | |||
| Including:Medicalinsurance | 1,488,183.67 | 97,295,076.61 | (97,251,566.33) | 1,531,693.95 | |||
| Workinjuryinsurance | 34,813.39 | 2,594,296.30 | (2,544,824.34) | 84,285.35 | |||
| Maternityinsurance | 226,790.09 | 6,289,500.62 | (5,937,941.49) | 578,349.22 | |||
| Housingfunds | 1,461,572.85 | 91,053,848.06 | (90,865,027.72) | 1,650,393.19 | |||
| Labourunionfundsandemployeeeducationfunds | 8,550,047.84 | 42,259,342.96 | (39,625,521.10) | 11,183,869.70 | |||
| Othershort-termbenefits | 1,059,360.80 | 2,266,479.51 | (2,454,018.54) | 871,821.77 |
254,250,943.71
| 254,250,943.71 | 2,659,830,539.44 | (2,566,478,507.29) | 347,602,975.86 |
VNotestotheconsolidatedfinancialstatements(Continued)
27.Employeebenefitspayable(Continued)
Definedcontributionplan:
Definedcontributionplan:
2021
| 2021 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Basicpensioninsurance
| Basicpensioninsurance | 3,593,380.27 | 272,693,481.30 | (274,018,523.28) | 2,268,338.29 | |||
| Unemploymentinsurance | 106,718.12 | 8,589,082.19 | (8,553,196.62) | 142,603.69 | |||
| Contributiontoapensionfund | 5,516,106.10 | 7,090,529.77 | (7,753,934.17) | 4,852,701.70 |
9,216,204.49
| 9,216,204.49 | 288,373,093.26 | (290,325,654.07) | 7,263,643.68 |
2020
| 2020 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Basicpensioninsurance
| Basicpensioninsurance | 1,971,797.54 | 113,012,198.11 | (111,390,615.38) | 3,593,380.27 | |||
| Unemploymentinsurance | 107,237.57 | 3,832,752.98 | (3,833,272.43) | 106,718.12 | |||
| Contributiontoapensionfund | 2,978,012.58 | 5,825,315.18 | (3,287,221.66) | 5,516,106.10 |
5,057,047.69
| 5,057,047.69 | 122,670,266.27 | (118,511,109.47) | 9,216,204.49 |
VNotestotheconsolidatedfinancialstatements(Continued)
27.Employeebenefitspayable(Continued)
Terminationbenefits:
Terminationbenefits:
2021
| 2021 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Retirementbenefitspayable-within1year(NoteV(35))
| Retirementbenefitspayable-within1year(NoteV(35)) | 205,673.65 | 166,000.00 | (232,605.96) | 139,067.69 | |||
| Otherterminationbenefits(1) | 187,193.10 | 964,908.95 | (1,098,412.95) | 53,689.10 |
392,866.75
| 392,866.75 | 1,130,908.95 | (1,331,018.91) | 192,756.79 |
Terminationbenefits:
Terminationbenefits:
2020
| 2020 | Atbeginningofyear | Increase | Decrease | Atendofyear |
Retirementbenefitspayable-within1year(NoteV(35))
| Retirementbenefitspayable-within1year(NoteV(35)) | 247,866.06 | 182,000.00 | (224,192.41) | 205,673.65 | |||
| Otherterminationbenefits(1) | 84,955.64 | 862,714.24 | (760,476.78) | 187,193.10 |
332,821.70
| 332,821.70 | 1,044,714.24 | (984,669.19) | 392,866.75 |
(1)In2021,otherterminationbenefitsforterminationlabourrelationsprovidedbytheGroupwere
RMB964,908.95andtheunpaidbalanceattheendoftheyearwasRMB53,689.10(2020:
OtherterminationbenefitsforterminationlabourrelationswereRMB862,714.24,andtheunpaidbalanceattheendoftheyearwasRMB187,193.10).
VNotestotheconsolidatedfinancialstatements(Continued)
28.Taxpayable
31December2021
| 31December2021 | 31December2020 |
CorporateIncometaxes
| CorporateIncometaxes | 178,870,986.61 | 173,016,908.47 | |
| Value-addedtax | 116,033,746.26 | 102,586,862.95 | |
| Stampduty | 9,920,803.28 | 8,243,076.57 | |
| Citymaintenanceandconstructionsurtax | 8,285,798.93 | 6,993,947.17 | |
| Individualincometax | 7,421,770.17 | 6,790,402.61 | |
| Educationalsurcharge | 6,128,676.48 | 5,254,608.43 | |
| Waterconservancyfund | 1,904,421.45 | 5,586,926.64 | |
| Propertytax | 1,166,484.81 | 664,697.78 | |
| Landusetax | 63,985.06 | 54,028.60 | |
| Others | 7,367,407.14 | 7,675,689.94 |
337,164,080.19
| 337,164,080.19 | 316,867,149.16 |
29.Otherpayables
| 31December2021 | 31December2020 |
Interestpayable
| Interestpayable | 31,587,062.03 | 35,572,620.82 | |
| Dividendpayable | 30,140,616.33 | 6,389,320.96 | |
| Otherpayables | 1,653,019,308.10 | 1,557,204,939.36 |
1,714,746,986.46
| 1,714,746,986.46 | 1,599,166,881.14 |
Interestpayable
| 31December2021 | 31December2020 |
Factoringinterestonaccountsreceivable
| Factoringinterestonaccountsreceivable | 31,587,062.03 | 35,572,620.82 |
Dividendpayable
| 31December2021 | 31December2020 |
JilinYiheInvestmentConsultingCo.,Ltd
| JilinYiheInvestmentConsultingCo.,Ltd | 22,635,133.81 | - | |
| ShanghaiFosunPharmaceutical(Group)Co.,Ltd.(“FosunPharm”) | 4,835,511.58 | 4,835,511.58 | |
| DividendpayabletoZhangZhenfang | 2,505,800.87 | 1,389,639.31 | |
| MeiluoPharmaceuticalCo.,Ltd. | 164,170.07 | 164,170.07 |
30,140,616.33
| 30,140,616.33 | 6,389,320.96 |
Asat31December2021and31December2020,theGrouphadnosignificantdividendagedmorethanoneyearandnotyetpaid.
VNotestotheconsolidatedfinancialstatements(Continued)
29.Otherpayables(Continued)
Otherpayables
31December2021
| 31December2021 | 31December2020 |
Payablesforfactoringprograms
| Payablesforfactoringprograms | 549,837,612.90 | 576,523,284.81 | |
| Deposits | 449,660,261.02 | 472,800,624.92 | |
| Accruedexpenses | 230,547,704.07 | 213,950,722.34 | |
| Equitypayable | 125,000,000.00 | 38,702,372.01 | |
| Payablesforrentals | 95,330,986.78 | 68,417,303.16 | |
| Payablesforconstructioninprogressandequipment | 53,913,827.67 | 40,898,589.59 | |
| Collectionofothers | 28,674,847.66 | 19,119,286.19 | |
| Payablestoindividuals | 17,809,022.64 | 25,869,320.67 | |
| Temporaryloans | 9,984,512.61 | 11,017,981.51 | |
| Payablesforlandtransferpayments | 7,486,500.00 | 12,597,500.00 | |
| Payablestorelatedparties | 596,258.19 | 5,093,263.36 | |
| Others | 84,177,774.56 | 72,214,690.80 |
1,653,019,308.10
| 1,653,019,308.10 | 1,557,204,939.36 |
At31December2021,significantotherpayablesoutstandingforover1yearareasfollows:
| Amountpayable | Reasonforoutstanding |
Payablesfordeposits
| Payablesfordeposits | 18,256,859.55 | Paymentconditionsnotmet | |
| Temporaryloans | 9,800,000.00 | Paymentconditionsnotmet | |
| Payablesforlandtransferpayments | 7,486,500.00 | Paymentconditionsnotmet |
35,543,359.55
30.Non-currentliabilitiesduewithinoneyear
35,543,359.5531December2021
| 31December2021 | 31December2020 |
Leaseliabilitiesduewithin1year(NoteV(33))
| Leaseliabilitiesduewithin1year(NoteV(33)) | 848,328,648.14 | 748,732,059.89 |
848,328,648.14
| 848,328,648.14 | 748,732,059.89 |
VNotestotheconsolidatedfinancialstatements(Continued)
31.Othercurrentliabilities
31December2021
| 31December2021 | 31December2020 |
VATcollectedinadvance
| VATcollectedinadvance | 27,078,191.86 | 24,142,106.09 | |
| OutputVATtoberecognised | 418,081.05 | 644,972.46 | |
| Others | 12,089,196.74 | - |
39,585,469.65
| 39,585,469.65 | 24,787,078.55 |
32.Long-termborrowings
| 31December2021 | 31December2020 |
Creditloans
| Creditloans | 40,000,000.00 | - | ||
| Entrustedloans | 31,637,173.89 | 31,637,173.89 |
71,637,173.89
| 71,637,173.89 | 31,637,173.89 |
Asat31December2021,thebalanceofcreditloanswasRMB40,000,000.00(31December2020:
nil),theweightedaverageannualinterestrateoftheentrustedloanswas4.05%(31December2020:nil).
Asat31December2021,thebalanceofcreditloanswasRMB40,000,000.00(31December2020:
nil),theweightedaverageannualinterestrateoftheentrustedloanswas4.05%(31December2020:nil).Asat31December2021,thebalanceofentrustedloanswasRMB31,637,173.89(31December2020:RMB31,637,173.89).CNPGCentrustedSinopharmGroupFinanceCo.,Ltd.toprovidetheloans.Asat31December2021,theweightedaverageannualinterestrateoftheentrustedloanswas3.85%(31December2020:3.85%).
33.Leaseliabilities
Asat31December2021,thebalanceofentrustedloanswasRMB31,637,173.89(31December2020:RMB31,637,173.89).CNPGCentrustedSinopharmGroupFinanceCo.,Ltd.toprovidetheloans.Asat31December2021,theweightedaverageannualinterestrateoftheentrustedloanswas3.85%(31December2020:3.85%).31December2021
| 31December2021 | 31December2020 |
Leasepayment
| Leasepayment | 2,400,604,558.67 | 2,217,275,863.33 | ||
| Unrecognisedfinancingexpenses | (176,848,033.25) | (165,489,639.54) | ||
| Less:Leaseliabilitiesduewithin1year(NoteV(30)) | 848,328,648.14 | 748,732,059.89 |
1,375,427,877.28
| 1,375,427,877.28 | 1,303,054,163.90 |
34.Long-termpayables
| 31December2021 | 31December2020 |
Payablesforspecificprojects
| Payablesforspecificprojects | 6,938,189.00 | 6,938,189.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
34.Long-termpayables(Continued)
Payablesforspecificprojects
2021
| 2021 | |||||||
| Atbeginningofyear | Increase | Decrease | Atendofyear |
Medicalreservefunds(1)
| Medicalreservefunds(1) | 6,138,189.00 | - | - | 6,138,189.00 | |||
| Specialfundsgrantedbythegovernment(2) | 800,000.00 | - | - | 800,000.00 |
6,938,189.00
| 6,938,189.00 | - | - | 6,938,189.00 |
2020
| 2020 | |||||||
| Atbeginningofyear | Increase | Decrease | Atendofyear |
Medicalreservefunds(1)
| Medicalreservefunds(1) | - | 6,138,189.00 | - | 6,138,189.00 | |||
| Specialfundsgrantedbythegovernment(2) | 800,000.00 | - | - | 800,000.00 |
800,000.00
| 800,000.00 | 6,138,189.00 | - | 6,938,189.00 |
(1)ThemedicalreservefundswereallocatedbytheLiaoningProvinceDepartmentofFinancetoLiaoningChengda
FangyuanPharmaceuticalChainCo.,Ltd.(“LiaoningChengdaPharmacyChains”),whichwasincorporatedintotheconsolidationfinancialstatementsin2020.
(2)Thespecificpayablesareresearchfundsallocatedbygovernmentdepartmentsandareaccountedforthespecific
payableaccountatthetimeofallocation.
35.Long-termemployeebenefitspayable
| 31December2021 | 31December2020 |
Long-termterminationbenefits
| Long-termterminationbenefits | 965,000.00 | 1,049,000.00 | |
| Netliabilitiesofdefinedbenefitplans | 237,000.00 | 270,000.00 |
1,202,000.00
| 1,202,000.00 | 1,319,000.00 |
31December2021
| 31December2021 | 31December2020 |
Earlyretirementbenefitspayable
| Earlyretirementbenefitspayable | 1,341,067.69 | 1,524,673.65 | |
| Less:Retirementbenefitspayablewithin1year(NoteV(27)) | 139,067.69 | 205,673.65 |
1,202,000.00
| 1,202,000.00 | 1,319,000.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
35.Long-termemployeebenefitspayable(Continued)
SomeemployeesoftheGrouphaveenrolledintoearlyretirement.Theprimaryactuarialassumptionsadoptedattheendofthereportingperiodarepresentedasfollows:
| 31December2021 | 31December2020 |
Discountrate
| Discountrate | 3.00% | 3.25% | |
| Growthrateofwages | 6.00% | 6.00% |
Thetotalpost-employmentbenefitsrecognisedinprofitorlossofthecurrentyearareshownbelow:
Thetotalpost-employmentbenefitsrecognisedinprofitorlossofthecurrentyearareshownbelow:
2021
| 2021 | 2020 |
Includedinadministrativeexpenses
| Includedinadministrativeexpenses | 2,000.00 | 17,000.00 | |
| Includedinfinancecosts | 47,000.00 | 51,000.00 |
49,000.00
| 49,000.00 | 68,000.00 |
36.Accruedliabilities
| Atbeginningofyear | Increase | Decrease | Atendingofyear |
Pendinglitigationorarbitration(1)
| Pendinglitigationorarbitration(1) | 68,808,166.79 | - | (68,808,166.79) | - |
(1)Pendinglitigationorarbitrationmainlyincludes:fourcompanieswithZhangPengasthe
actualcontrollersignedseveralcontractswithShenyangBranchofBankofDalianCo.,Ltd.(“theBank”)inpreviousyears,whichagreedthattheabovecompanieswouldtransfertheircreditor'srightsofaccountsreceivableofLiaoningCdfyPharmCo.,Ltd.(“LiaoningCdfyPharm”)totheBank,andtheBankwouldconductfactoringbusinessfortheabovecompaniesinaccordancewiththeagreement.AsthefourcompaniesfailedtopaytherelevantamounttotheBank,theBankfiledalawsuittothePeople’sCourt,requestingLiaoningCdfyPharmanditsparentcompany,CDFY,toassumethecorrespondinglegalresponsibilities.ChengdaPharmaceuticalChainrecognisedtheaccruedliabilitiesofRMB68,663,166.79inaccordancewiththeprogressofthecase.In2021,LiaoningCdfyPharmpaidallthemoneytotheBankaccordingtothejudgment.
VNotestotheconsolidatedfinancialstatements(Continued)
37.Deferredincome
2021
| 2021 | Openingbalance | Increase | Decrease | Closingbalance |
Governmentgrants
| Governmentgrants | 89,559,628.65 | 7,551,767.34 | (10,709,176.45) | 86,402,219.54 |
| Inputtaxplusandminus | 283,954.72 | 2,323,372.25 | (2,092,494.73) | 514,832.24 |
89,843,583.37
| 89,843,583.37 | 9,875,139.59 | (12,801,671.18) | 86,917,051.78 |
2020
| 2020 | Openingbalance | Increase | Decrease | Closingbalance |
Governmentgrants
| Governmentgrants | 88,471,539.41 | 7,736,003.12 | (6,647,913.88) | 89,559,628.65 |
| Inputtaxplusandminus | 232,733.47 | 1,654,660.85 | (1,603,439.60) | 283,954.72 |
88,704,272.88
| 88,704,272.88 | 9,390,663.97 | (8,251,353.48) | 89,843,583.37 |
Asat31December2021,deferredincomefromgovernmentgrantsisasfollows:
Asat31December2021,deferredincomefromgovernmentgrantsisasfollows:
Governmentgrantsprogram
| Governmentgrantsprogram | Openingbalance | Additionintheyear | Amountincludedinotherincomeintheyear | Otherchanges | Closingbalance | Asset-related/income-related |
| Resettlementcompensation(1) | 70,158,624.05 | - | - | (2,698,408.56) | 67,460,215.49 | Asset-related |
| LogisticsprojectofNanningEconomicDevelopmentZoneconstructionsupportfunds | 4,846,565.87 | - | (186,406.44) | - | 4,660,159.43 | Asset-related |
| Constructionfundofthemodernsupplychainsysteminthecentralcirculationfieldin2018 | 4,353,019.54 | 4,650,000.00 | (2,242,364.74) | - | 6,760,654.80 | Asset-related |
| Subsidiesforpharmaceuticalsupplychainprojects | - | 2,800,000.00 | (889,995.63) | - | 1,910,004.37 | Asset-related |
| Guangzhoulogisticsstandardisationpilotproject | 1,722,518.87 | - | (546,246.84) | - | 1,176,272.03 | Asset-related |
| Fundsforthelogisticsinformationplatformprojectofthepharmaceuticalstoragecentre | 809,523.99 | - | (142,857.12) | - | 666,666.87 | Asset-related |
| Comprehensiveexperimentalmodernserviceindustrysubsidies | 900,000.00 | - | (300,000.00) | - | 600,000.00 | Asset-related |
| Specialfundsforindustrialtransformationandupgradingindualisedintegrationprojects | 827,658.18 | - | (434,938.08) | - | 392,720.10 | Asset-related |
| Otherprojects | 5,941,718.15 | 101,767.34 | (2,809,211.08) | (458,747.96) | 2,775,526.45 | Asset-related/income-related |
89,559,628.65
| 89,559,628.65 | 7,551,767.34 | (7,552,019.93) | (3,157,156.52) | 86,402,219.54 |
VNotestotheconsolidatedfinancialstatements(Continued)
37.Deferredincome(Continued)
Asat31December2020,deferredincomefromgovernmentgrantsisasfollows:
Asat31December2020,deferredincomefromgovernmentgrantsisasfollows:
Governmentgrantsprogram
| Governmentgrantsprogram | Openingbalance | Additionintheyear | Amountincludedinotherincomeintheyear | Otherchanges | Closingbalance | Asset-related/income-related |
| Resettlementcompensation(1) | 72,857,032.61 | - | - | (2,698,408.56) | 70,158,624.05 | Asset-related |
| LogisticsprojectofNanningEconomicDevelopmentZoneconstructionsupportfunds | 5,032,972.31 | - | (186,406.44) | - | 4,846,565.87 | Asset-related |
| Constructionfundofthemodernsupplychainsysteminthecentralcirculationfieldin2018 | 2,364,075.79 | 2,651,300.00 | (662,356.25) | - | 4,353,019.54 | Asset-related |
| GuangzhouLogisticsstandardisationpilotproject | 2,268,765.71 | - | (546,246.84) | - | 1,722,518.87 | Asset-related |
| Specialfundsforindustrialtransformationandupgradingindualisedintegrationprojects | 1,276,698.66 | - | (449,040.48) | - | 827,658.18 | Asset-related |
| Comprehensiveexperimentalmodernserviceindustrysubsidies | 1,200,000.00 | - | (300,000.00) | - | 900,000.00 | Asset-related |
| Fundsforthelogisticsinformationplatformprojectofthepharmaceuticalstoragecentre | 952,381.11 | - | (142,857.12) | - | 809,523.99 | Asset-related |
| Otherprojects | 2,519,613.22 | 5,084,703.12 | (1,367,821.15) | (294,777.04) | 5,941,718.15 | Asset-related/income-related |
88,471,539.41
| 88,471,539.41 | 7,736,003.12 | (3,654,728.28) | (2,993,185.60) | 89,559,628.65 |
(1)DuetotheimplementationofurbanplanningforoldtownreconstructioninNanning,the
operatingcentreofGuangxiLogistics,whichwaslocatedinLongtengRoadDistrict,NanningCity,wastobereconstructedinanotherplace.AccordingtotheagreementsignedbetweenGuangxiLogisticsandtherealestatedeveloper,GuangxiLogisticswouldobtainacompensationofRMB120,250,000.00,includingcashofRMB50,000,000.00andapropertyinconstructionequaltoavalueofRMB70,250,000.00.CashcompensationofRMB50,000,000.00wasreceivedinMay2012.Inyear2015,constructionpropertywithavalueofRMB70,250,000.00wasbuiltanddelivered,whichhadbeenrecognisedasinvestmentproperty.Thecompensationrelatingtothecapitalexpenditureinthereconstructionofthenewlogisticscentreinanotherplace,amountingtoRMB93,320,000.00,wasrecognisedasdeferredincomeandwouldbeamortisedandrecognisedintheincomestatementwithintheexpectedusefullivesusingthestraight-linemethod,andtheothercashcompensation,withamountapproximatesofRMB26,930,000.00wasrecognisedintheincomestatementin2012.
VNotestotheconsolidatedfinancialstatements(Continued)
38.Othernon-currentliabilities
31December2021
| 31December2021 | 31December2020 |
Medicalreservefunds(1)
| Medicalreservefunds(1) | 560,495,462.17 | 711,029,182.37 | ||
| Equitypayable | 71,400,000.00 | - | ||
| Productpromotionaccumulativepointsprogramme(2) | 32,479,462.95 | 29,815,911.17 | ||
| Others | 6,140.53 | 17,896.05 |
664,381,065.65
| 664,381,065.65 | 740,862,989.59 |
(1)ThemedicalreservefundsincludestheCentralMedicalReserveFunds,theProvincialReserve
Funds,theMunicipalReserveFunds,andtheEmergencyReserveFundsallocatedbytheCentralMinistryofFinancetoestablishthesystemofreservemedicalsuppliesforpublichealthemergencies.Inthefuture,accordingtogovernmentinstructions,purchasedesignatedreservepharmaceuticalproducts.
(2)Theproductpromotionaccumulativepointsprogrammereferstothoseproduct-originatedaccumulativepointsthatremainsurplusformorethanoneyearbeforetheexpirationdate.
39.Sharecapital
(1)ThemedicalreservefundsincludestheCentralMedicalReserveFunds,theProvincialReserve
Funds,theMunicipalReserveFunds,andtheEmergencyReserveFundsallocatedbytheCentralMinistryofFinancetoestablishthesystemofreservemedicalsuppliesforpublichealthemergencies.Inthefuture,accordingtogovernmentinstructions,purchasedesignatedreservepharmaceuticalproducts.
(2)Theproductpromotionaccumulativepointsprogrammereferstothoseproduct-originatedaccumulativepointsthatremainsurplusformorethanoneyearbeforetheexpirationdate.
2021
| 2021 | Atbeginningoftheyear | Increase/decreaseduringthecurrentyear | Atendoftheyear | |||
| Issueofnewshares | Others | Subtotal | ||||
| Listedshareswithoutrestrictionoftrading: | ||||||
| -Ashares,listed | 367,733,625.00 | - | - | - | 367,733,625.00 | |
| -Bshares,listed | 54,884,475.00 | - | - | - | 54,884,475.00 | |
| Listedshareswithrestrictionoftrading: | ||||||
| -State-ownedlegalpersonsshares | 5,505,770.00 | - | - | - | 5,505,770.00 | |
| -NaturalpersonsregisteredwithinChinashares | 3,113.00 | - | - | - | 3,113.00 | |
428,126,983.00
| 428,126,983.00 | - | - | - | 428,126,983.00 |
2020
| 2020 | Atbeginningoftheyear | Increase/decreaseduringthecurrentyear | Atendoftheyear | |||
| Issueofnewshares | Others | Subtotal | ||||
| Listedshareswithoutrestrictionoftrading: | ||||||
| -Ashares,listed | 307,744,355.00 | - | 59,989,270.00 | 59,989,270.00 | 367,733,625.00 | |
| -Bshares,listed | 54,884,475.00 | - | - | - | 54,884,475.00 | |
| Listedshareswithrestrictionoftrading: | ||||||
| -State-ownedlegalpersonshares | 60,380,743.00 | - | (54,874,973.00) | (54,874,973.00) | 5,505,770.00 | |
| -LegalpersonsregisteredwithinChinashares | 5,114,297.00 | - | (5,114,297.00) | (5,114,297.00) | - | |
| -NaturalpersonsregisteredwithinChinashares | 3,113.00 | - | - | - | 3,113.00 | |
428,126,983.00
| 428,126,983.00 | - | - | - | 428,126,983.00 |
VNotestotheconsolidatedfinancialstatements(Continued)
40.Capitalsurplus
2021
| 2021 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
Sharepremium
| Sharepremium | 2,118,174,787.27 | - | - | 2,118,174,787.27 |
| Othercapitalsurplus- | ||||
| Significantreorganisation | 1,173,907,763.19 | - | - | 1,173,907,763.19 |
| Transferofcapitalsurplusrecognisedunderthepreviousaccountingsystem | 2,650,322.00 | - | - | 2,650,322.00 |
| Otherchangesinequityofinvestedunitsundertheequitymethod(1) | (52,403,860.01) | - | (701,946.29) | (53,105,806.30) |
| Businesscombinationundercommoncontrol(2) | 9,890,417.88 | - | - | 9,890,417.88 |
| Others | 1,120,284,623.39 | - | - | 1,120,284,623.39 |
4,372,504,053.72
| 4,372,504,053.72 | (701,946.29) | 4,371,802,107.43 |
2020
| 2020 | Atbeginningoftheyear | Increase | Decrease | Atendoftheyear |
Sharepremium
| Sharepremium | 2,118,174,787.27 | - | - | 2,118,174,787.27 |
| Othercapitalsurplus- | ||||
| Significantreorganisation | 1,173,907,763.19 | - | - | 1,173,907,763.19 |
| Transferofcapitalsurplusrecognisedunderthepreviousaccountingsystem | 2,650,322.00 | - | - | 2,650,322.00 |
| Otherchangesinequityofinvestedunitsundertheequitymethod(1) | (52,009,984.28) | - | (393,875.73) | (52,403,860.01) |
| Businesscombinationundercommoncontrol(2) | 107,759,447.87 | - | (97,869,029.99) | 9,890,417.88 |
| Others | 1,120,284,623.39 | - | - | 1,120,284,623.39 |
4,470,766,959.44
| 4,470,766,959.44 | (98,262,905.72) | 4,372,504,053.72 |
(1)AdecreaseofRMB701,946.29inotherchangesinequityoftheinvestedentityunderthe
equitymethodinthecurrentyear,whichwasduetothedecreaseofotherchangesinequityoftheGroup’sassociatecompany,ShyndecPharma,decreasedthebookvalueofalong-termequityinvestmentandwrotedownthecapitalreserveofRMB701,946.29.AdecreaseofRMB393,875.73inotherchangesinequityoftheinvestedentityundertheequitymethodin2020,whichwasduetothedecreaseofotherchangesinequityoftheGroup’sassociatecompany,ShyndecPharma,decreasedthebookvalueofalong-termequityinvestmentandincludedincapitalsurplusofRMB393,875.73.
(2)TheCompany’ssubsidiary,GuodaDrugstore,acquiredPudongMedicine,anenterpriseunder
commoncontrolon2January,2020,whichformedabusinesscombinationundercommoncontrol(NoteVI(2)).Thereportingentityformedafterthedeemedmergerhasexistedsincethefinalcontrollerbegantocontrol.Whenpreparingandcomparingtheconsolidatedfinancialstatements,theitemsofthepreviousfinancialstatementsshallbeadjusted.At2020,theCompanyrestatedandconfirmedthecapitalreserveofRMB107,759,447.87,offsettingthecapitalreserveofRMB107,759,447.87attheconsolidationdate.ThecapitalsurpluswasrecognisedatRMB9,890,417.88basedonthedifferencebetweenthebookvalueofidentifiablenetassetsandtheconsiderationpaymentsattheconsolidationdate.
VNotestotheconsolidatedfinancialstatements(Continued)
41.OthercomprehensiveincomeAccumulatedbalanceofothercomprehensiveincomeattributabletoownersoftheparentintheconsolidatedbalancesheet:
1January2021
| 1January2021 | Increase/(decrease) | 31December2021 |
Changeinthefairvalueofotherequityinvestments
| Changeinthefairvalueofotherequityinvestments | 38,611,051.04 | (16,650,012.28) | 21,961,038.76 |
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | (128,033.32) | 41,192.92 | (86,840.40) |
38,483,017.72
| 38,483,017.72 | (16,608,819.36) | 21,874,198.36 |
1January2020
| 1January2020 | Increase/(decrease) | 31December2020 |
Changeinthefairvalueofotherequityinvestments
| Changeinthefairvalueofotherequityinvestments | 46,050,708.96 | (7,439,657.92) | 38,611,051.04 |
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | (133,366.19) | 5,332.87 | (128,033.32) |
45,917,342.77
| 45,917,342.77 | (7,434,325.05) | 38,483,017.72 |
Thecurrentoccurrenceamountofothercomprehensiveincomeintheconsolidatedincomestatementisasfollows:
2021
| Occurrenceamountbeforetax | Less:Incometax | Attributabletoownersoftheparent | Attributabletonon-controllinginterests |
Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss
| Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | |||||||
| Changeinthefairvalueofotherequityinvestments | (37,000,027.29) | 9,250,006.82 | (16,650,012.28) | (11,100,008.19) | |||
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||||||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | 41,192.92 | - | 41,192.92 | - |
(36,958,834.37)
| (36,958,834.37) | 9,250,006.82 | (16,608,819.36) | (11,100,008.19) |
VNotestotheconsolidatedfinancialstatements(Continued)
41.Othercomprehensiveincome(Continued)
2020
Occurrenceamountbefore
tax
| Occurrenceamountbeforetax | Less:Incometax | Attributabletoownersoftheparent | Attributabletonon-controllinginterests |
Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss
| Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | |||||||
| Changeinthefairvalueofotherequityinvestments | (16,532,659.72) | 4,133,164.93 | (7,439,657.92) | (4,959,836.87) | |||
| Othercomprehensiveincomethatmaybereclassifiedtoprofitorloss | |||||||
| Othercomprehensiveincomeusingtheequitymethodthatmaybereclassifiedtoprofitorloss | 5,332.87 | - | 5,332.87 | - |
(16,527,326.85)
| (16,527,326.85) | 4,133,164.93 | (7,434,325.05) | (4,959,836.87) |
VNotestotheconsolidatedfinancialstatements(Continued)
42.Surplusreserves
31December2021
| 31December2021 | 31December2020 |
Statutorysurplusreserves
| Statutorysurplusreserves | 214,063,491.50 | 214,063,491.50 |
AccordingtotheprovisionsoftheCompanyLawandtheCompany’sarticlesofassociation,theCompanyappropriatesstatutorysurplusreservesat10%ofthenetprofit.Wheretheaccumulatedamountofsurplusreservesreaches50%ormoreoftheCompany’sregisteredcapital,additionalappropriationisnotrequired.Whenapproved,thediscretionarysurplusreservescanbeusedtorecoveraccumulatedlossesorincreasesharecapital.TheaccumulatedamountofthestatutorysurplusreservesoftheCompanyhasalreadyreached50%oftheregisteredcapital.AccordingtotheCompany’sarticlesofassociation,theCompanyisnotrequiredtocontinuetoappropriatethesurplusreserves.
43.Retainedearnings
| 31December2021 | 31December2020 |
Retainedearningsattheendoftheprioryearbeforeadjustment
| Retainedearningsattheendoftheprioryearbeforeadjustment | 8,895,145,106.39 | 7,755,295,537.08 |
| Adjust:Businesscombinationundercommoncontrol(1) | - | (3,029,877.91) |
Retainedearningsattheendoftheprioryearafteradjustment
| Retainedearningsattheendoftheprioryearafteradjustment | 8,895,145,106.39 | 7,752,265,659.17 |
| Add:Netprofitattributabletotheparent | 1,336,427,752.22 | 1,401,892,593.23 |
| Less:Withdrawalfromthesurplusreserves | - | - |
| Cashdividendspayableforordinaryshares(2) | 342,501,586.40 | 256,876,189.80 |
| Others | - | 2,136,956.21 |
Retainedearningsatendofyear
| Retainedearningsatendofyear | 9,889,071,272.21 | 8,895,145,106.39 |
(1)
| (1) | Duetothechangeinthescopeofbusinesscombinationunderthecommoncontrol,theundistributedprofitatthebeginningoftheyearwasRMB0.00(2020:decreasedbyRMB3,029,877.91). |
| (2) | PursuanttotheresolutionoftheGeneralMeetingofshareholderson28April2021,theCompanypaidacashdividendofRMB8.00forevery10sharestoallshareholders.Thecashdividendwascalculatedonthebasisof428,126,983sharesinissue,withanaggregateamountofRMB342,501,586.40. |
VNotestotheconsolidatedfinancialstatements(Continued)
44.Operatingrevenueandcost
2021
| 2021 | 2020 | ||
| Revenue | Cost | Revenue | Cost |
Principaloperations
| Principaloperations | 67,647,803,370.00 | 60,117,131,141.65 | 59,129,559,267.80 | 52,474,778,734.75 |
| Otheroperations | 710,006,201.99 | 222,166,910.59 | 519,895,744.23 | 116,988,729.62 |
68,357,809,571.99
| 68,357,809,571.99 | 60,339,298,052.24 | 59,649,455,012.03 | 52,591,767,464.37 |
Revenueisasfollows:
Revenueisasfollows:
2021
| 2021 | 2020 |
Revenuefromcontractswithcustomers
| Revenuefromcontractswithcustomers | 68,263,151,536.38 | 59,575,293,446.98 | |
| Rentals | 94,658,035.61 | 74,161,565.05 |
68,357,809,571.99
| 68,357,809,571.99 | 59,649,455,012.03 |
Disaggregationofrevenuefromcontractswithcustomersisasfollows:
Disaggregationofrevenuefromcontractswithcustomersisasfollows:
2021
| 2021 | 2020 |
Placeofbusiness
| Placeofbusiness | |||
| China | 68,263,151,536.38 | 59,575,293,446.98 |
Typesofmajoractivities
| Typesofmajoractivities | |||
| Pharmaceuticaldistribution | 47,415,894,164.79 | 41,771,721,959.60 | |
| Retailpharmacy | 20,546,784,164.42 | 17,626,007,757.96 | |
| Others | 300,473,207.17 | 177,563,729.42 |
68,263,151,536.38
| 68,263,151,536.38 | 59,575,293,446.98 |
Typesofmajorgoods
| Typesofmajorgoods | |||
| Pharmaceuticals | 60,694,809,091.70 | 54,004,558,520.07 | |
| Medicaldevicesanddisposables | 5,831,199,233.19 | 4,010,735,060.66 | |
| Diagnosticreagents | 994,724,313.55 | 947,638,322.63 | |
| Medicalequipment | 441,945,690.77 | 434,797,814.20 | |
| Others | 300,473,207.17 | 177,563,729.42 |
68,263,151,536.38
| 68,263,151,536.38 | 59,575,293,446.98 |
VNotestotheconsolidatedfinancialstatements(Continued)
44.Operatingrevenueandcost(Continued)
Disaggregationofrevenuefromcontractswithcustomersisasfollows:(Continued)
Disaggregationofrevenuefromcontractswithcustomersisasfollows:(Continued)2021
| 2021 | 2020 |
Timingofrevenuerecognition
| Timingofrevenuerecognition | |||
| Atapointintime | |||
| Saleofgoods | 67,962,678,329.21 | 59,397,729,717.56 | |
| Overtime | |||
| Provisionofservices | 123,347,496.99 | 68,569,069.02 | |
| Storageandlogistics | 177,125,710.18 | 108,994,660.40 |
68,263,151,536.38
| 68,263,151,536.38 | 59,575,293,446.98 |
Revenuerecognisedthatwasincludedincontractliabilitiesatthebeginningoftheyearisasfollows:
Revenuerecognisedthatwasincludedincontractliabilitiesatthebeginningoftheyearisasfollows:
2021
| 2021 | 2020 |
Saleofgoods
| Saleofgoods | 368,600,357.14 | 302,650,567.97 |
InformationabouttheGroup’sperformanceobligationsissummarisedbelow:
InformationabouttheGroup’sperformanceobligationsissummarisedbelow:
(1)
| (1) | Revenueisrecognisedwhencontrolofthegoodshastransferred,andpaymentisgenerallyduewithin30to210daysfromdelivery; |
| (2) | Revenueisrecognisedintheservicedurationandthepaymentisgenerallyduewithin30to210daysaftertheserviceiscompleted. |
VNotestotheconsolidatedfinancialstatements(Continued)
45.Taxesandsurcharges
2021
| 2021 | 2020 |
Citymaintenanceandconstructiontax
| Citymaintenanceandconstructiontax | 61,522,088.57 | 59,276,259.36 | |
| Stampduty | 46,171,015.32 | 39,538,983.99 | |
| Educationalsurcharge | 44,666,008.44 | 43,510,012.21 | |
| Propertytax | 9,265,222.92 | 7,664,420.10 | |
| River&embankmentmaintenancefee | 4,588,775.31 | 1,949,549.82 | |
| Landtax | 1,653,652.98 | 1,174,966.86 | |
| Vehicleandvesselusetax | 186,063.72 | 194,779.35 | |
| Others | 1,414,741.01 | 1,322,475.51 |
169,467,568.27
| 169,467,568.27 | 154,631,447.20 |
46.Sellingexpenses
| 2021 | 2020 |
Employeebenefits
| Employeebenefits | 2,455,601,404.16 | 2,043,118,426.77 | |
| Depreciationexpensesofright-of-useassets | 952,094,987.01 | 835,697,733.77 | |
| Rentalexpenses | 247,722,061.87 | 158,482,491.26 | |
| Technicalservicefee | 217,961,408.80 | 131,325,755.99 | |
| Amortisationoflong-termdeferredexpenses | 141,330,721.55 | 115,379,262.15 | |
| Depreciationexpensesoffixedassets | 120,553,856.31 | 97,651,219.31 | |
| Utilities | 89,553,600.70 | 78,849,800.64 | |
| Officeexpense | 83,255,087.05 | 66,308,505.21 | |
| Storageexpenses | 48,647,528.57 | 36,065,016.61 | |
| Promotionandmarketingexpenses | 44,119,240.26 | 49,558,552.69 | |
| Amortisationofintangibleassets | 38,160,273.97 | 27,930,125.84 | |
| Propertymanagementfee | 37,012,324.99 | 31,062,038.32 | |
| Entertainmentexpenses | 33,588,865.45 | 33,444,574.42 | |
| Repairingfees | 20,378,201.18 | 20,602,212.23 | |
| Marketdevelopmentfee | 14,481,534.88 | 21,647,420.16 | |
| Conferenceexpenses | 9,568,265.21 | 16,225,584.87 | |