China National Accord Medicines Corporation Ltd.
First Quarterly Report 2019
April 2019
Section I. Important Notes
Board of Directors and the Supervisory Committee of China National Accord Medicines Corporation Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives should guarantee the reality, accuracy and completion of the quarterly report, there are no any fictitious statements, misleading statements or important omissions carried in this report, and shall take legal responsibilities, individual and/or joint.
Other directors attending the Meeting for Quarterly Report deliberation except for the followed
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|Nameofdirectorabsent|Titleforabsentdirector|Reasonsforabsent|Attorney|
|LiZhiming|director|Officialbusiness|LiuYong|
|JiangXiuchang|director|Officialbusiness|LiuYong|

Lin Zhaoxiong person in charge of the Company, Wei Pingxiao, person in charger of accounting works and Wang Ying, person in charger of accounting organ (accounting officer) hereby confirm that the Financial Report of this Quarterly Report is authentic, accurate and complete.
Section II. Company profile
I. Main accounting data andfinancialindexes
Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata
□Yes√No
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||CurrentPeriod|Sameperiodoflastyear|Changesofthisperiodoversameperiodoflastyear|
|Operatingincome(RMB)|11,879,309,078.82|10,256,566,731.51|15.82%|
|Net profit attributable to shareholders ofthelistedcompany(RMB)|300,149,012.08|292,731,685.33|2.53%|
|Netprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosses(RMB)|297,420,355.99|284,982,162.39|4.36%|
|Netcashflowarisingfromoperatingactivities(RMB)|-759,367,352.29|-864,716,289.96|12.18%|
|asicearningspershare(RMB/Share)|0.70|0.68|2.94%|
|ilutedearningspershare(RMB/Share)|0.70|0.68|2.94%|
|WeightedaverageROE|2.55%|3.07%|-0.52%|
||Attheendofthereportingperiod|Attheendoflastyear|Changesofthisperiod-endoversameperiod-endoflastyear|
|otalassets(RMB)|30,855,284,546.74|28,930,300,519.97|6.65%|
|etassetsattributabletoshareholderofstedcompany(RMB)|11,918,581,615.36|11,618,432,603.28|2.58%|

Itemsofnon-recurringgainsandlosses
√Applicable□Notapplicable
InRMB
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|Item|Amountfromyear-begintoperiod-end|Note|
|Gains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairmentofassets)|-24,914.66|FixedassetsdisposalfromsubsidiaryGuodaDrugstoreandSinopharmHoldingGuangxiCompany.|
|Governmentalsubsidyreckonedintocurrentgains/losses(notincludingthesubsidyenjoyedinquotaorrationaccordingtonationalstandards,whicharecloselyrelevanttoenterprise’sbusiness)|1,897,634.72|Mainlyduetothevariousspecialgrantsreceivedinthecurrentperiod.|

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|Reversalofimpairmentreserveforaccountreceivablewithseparateimpairmenttesting|479,568.94|Theimpairmentofaccountreceivableseparatelyaccrualinpreviousyears havebeentakenbackinthecurrentperiod.|
|Gainsandlossesonforeignentrustedloans|875,924.93|The gains obtained from offeringentrust loans to China NationalZhijun(Suzhou).|
|Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems|770,827.15||
|Less:impactonincometax|887,466.28||
|Impactonminorityshareholders’equity(post-tax)|382,918.71||
|Total|2,728,656.09|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/lossaccordingto the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their SecuritiestothePublic---ExtraordinaryProfit/loss,explainreasons
□Applicable√Notapplicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&AAnnouncement No.1on Information Disclosurefor Companies Offering TheirSecuritiesto thePublic---ExtraordinaryProfit/loss
II. Total number ofshareholders atthe endof thisreport period andtop ten shareholders 1.Totalnumberofcommonshareholdersattheendofthisreportperiodandtoptencommonshareholders In shares
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|Totalcommonshareholdersattheendofreportperiod||17,550||Totalpreferenceshareholderswithvotingrightsrecoveredatendofreportingperiod(ifapplicable)|||0||
|Toptenshareholders|||||||||
|Shareholder’sname|Natureofshareholder|Proportionofsharesheld|Amountofsharesheld||Amountofrestrictedsharesheld|Numberofsharepledged/frozen|||
|||||||Stateofshare||Amount|
|SinopharmGroupCo.,Ltd.|State-ownedlegalperson|56.06%|239,999,991||55,057,700||||
|Hong KongSecuritiesClearingCompanyLtd|ForeignCorporation|3.39%|14,512,583||0||||
|HTHK/CMG|Foreign|2.68%|11,469,644||0||||

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|FSGUFP-CMGFIRSTSTATECHINAGROWTHFD|Corporation||||||
|China UnitedPropertyInsuranceCompanyLimited -Traditionalinsuranceproducts|Domesticnonstate-ownedlegalperson|1.73%|7,400,422|0|||
|ChinaNationalPharmaceuticalForeignTradeCorporation|State-ownedlegalperson|1.24%|5,323,043|5,323,043|||
|#BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFund|Domesticnonstate-ownedlegalperson|0.96%|4,118,716||||
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|ForeignCorporation|0.90%|3,835,608||||
|CentralHuijinInvestmentLtd.|State-ownedlegalperson|0.89%|3,804,400||||
|Fidelity(HongKong)Co.,Ltd.-customercapital|ForeignCorporation|0.87%|3,743,017||||
|Bank of China-HarvestShanghai-H.K.-Shenzhen SelectedSecuritiesInvestmentFund|Domesticnonstate-ownedlegalperson|0.83%|3,554,700||||
|Toptenshareholderswithunrestrictedsharesheld|||||||
|Shareholder’sname||Amountofunrestrictedsharesheld|||Typeofshares||
||||||Type|Amount|
|SinopharmGroupCo.,Ltd.||184,942,291|||RMB ordinaryshares|184,942,291|

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|Hong Kong Securities ClearingCompanyLtd|14,512,583|RMB ordinaryshares|14,512,583|
|HTHK/CMGFSGUFP-CMGFIRSTSTATECHINAGROWTHFD|11,469,644|Domestic listedforeignshares|11,469,644|
|China United Property InsuranceCompany Limited - Traditionalinsuranceproducts|7,400,422|RMB ordinaryshares|7,400,422|
|#BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFund|4,118,716|RMB ordinaryshares|4,118,716|
|GUOTAIJUNANSECURITIES(HONGKONG)LIMITED|3,835,608|Domestic listedforeignshares|3,835,608|
|CentralHuijinInvestmentLtd.|3,804,400|RMB ordinaryshares|3,804,400|
|Fidelity(HongKong)Co.,Ltd.-customercapital|3,743,017|RMB ordinaryshares|3,743,017|
|Bank of China-HarvestShanghai-H.K.-Shenzhen SelectedSecuritiesInvestmentFund|3,554,700|RMB ordinaryshares|3,554,700|
|Basicendowmentinsurancefund-1003group|3,359,356|RMB ordinaryshares|3,359,356|
|Explanation on associatedrelationship among the aforesaidshareholders|Itisunknown thatthereexistsnoassociated relationshiporbelongstotheconsistentpersonacting in concert among the other tradable shareholders regulated by the ManagementMeasureofInformationDisclosureonChangeofShareholdingforListedCompanies.|||
|Explanation on shareholdersinvolvingmargin businessabout topten common stock shareholders (ifapplicable)|BeijingHaoqingFortuneInvestmentManagementCo.,Ltd.–HaoqingValueStableNo.8InvestmentFundholdssharesoftheCompanythroughmargintradingandnegotiablesecuritiesaccountthatis4,118,716sharesintotal.|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealinginreportingperiod
□Yes√No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have nobuy-back agreementdealinginreportingperiod.
2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferredstockheld
□Applicable√Notapplicable
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index andexplanationsofreasons
√Applicable□Notapplicable
1.Interestreceivable:anincreaseof2.5509millionYuancomparedwiththebeginningoftheperiod,withagrowthrateof31.02%, mainlybecausetheaccrualfordepositinterestincreased;
2. Construction in progress: a decrease of 13.2163 millionYuan compared with thebeginning of the period, with a growth rate of-36.30%,mainlybecausetheERPprojectcompletedforacceptanceandtransferout;
3. Wages payable: adecrease of 70.1103millionYuan compared with thebeginning of theperiod, with a growth rate of-30.24%,mainlybecauseemployee’swagesaccruallastyearareprovidedinthePeriod;
4. Other currentliabilities: an increase of 145,300Yuan compared withthebeginningof theperiod, witha growthrateof49.66%, mainlybecausetheoutputtaxreadyfortransferincreasedoverthatofamountatbeginningoftheyear;
5. Financial expenses : an increase of 8.7817 millionYuan on a year-on-year basis, with a growth rate of39.43%, mainly because financingcostofthesupplychaininthisperiodhasincreasedcomparedwiththesameperiodoflastyear;
6. Assets impairment loss: an increase of 1.0471 million Yuan on a year-on-year basis, with a growth rate of197.37%, mainly becauseinventoryfallingpricereservesreversedintheperioddeclinedfromayearearlier;
7. Credit impairment loss: an increase of 5.2393 million Yuan on a year-on-year basis, with a growth rate of624.12%, mainly because account receivable at period-end has increased over same period of last year, thus the impairment for bad debts accrual increasedonay-o-ybasis;
8.Incomefromassetsdisposal:adecreaseof3.8445millionYuanonayear-on-yearbasis,withagrowthrateof-100.37%,mainly because insame periodof last year,government collected propertypayments arereceived whilenosuch amountedoccurred inthe period;
9.Non-operatingincome:anincreaseof480,200Yuanonayear-on-yearbasis,withagrowthrateof35.31%,mainlybecausewritten offfortheaccountpayablethatnoneedtobepaidincreasedfromayearearlierintheperiod;
10.Non-operatingexpense:adecreaseof264,900Yuanonayear-on-yearbasis,withagrowthrateof-42.40%,mainlybecausefine fordelayingintheperioddeclinedonay-o-ybasis;
11. Minorityshareholders’gains and losses: an increase of 24.3643 million Yuan on a year-on-year basis, with a growth rate of121.17%, mainly because at second half of 2018, subsidiary Guoda Drugstore introduce strategic investors, then theminority’s interestdeclinedonay-o-ybasis;
12.Totalcomprehensiveincomeattributabletominorityshareholders:anincreaseof24.3643millionYuanonayear-on-yearbasis,withagrowthrateof121.17%,mainlybecauseatsecondhalfof2018,subsidiaryGuodaDrugstoreintroducestrategicinvestors,thus thetotalcomprehensiveincomeattributabletominorityshareholdersareincreasedcorrespondingly;
13. Refunds of taxes: a decrease of 400Yuan on a year-on-year basis, with a growth rate of-100.00%, mainly because refunds of taxesreceivedinsameperiodoflastyearwhilenosuchamountoccurredintheperiod;
14. Cash received from investment income: an increase of 296,000 Yuan on a year-on-year basis, with a growth rate of39.10%, mainlybecausereceivedcashbonusfromjointventureintheperiodwhilenosuchamountoccurredinsameperiodoflastyear; 15.Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets:adecreaseof5.613millionYuanon a year-on-year basis, with a growth rate of-98.73%, mainly because revenue from intangible assets disposal in the period decline fromayearearlier;
16.Othercashreceivedrelatingtoinvestmentactivities:adecreaseof44millionYuanonayear-on-yearbasis,withagrowthrateof-100%,mainlybecauseloanbymandatereceivedfromSinopharmHoldingZhijun(Suzhou)Companyatsameperiodlastyearwhile nosuchamountoccurredintheperiod;
17.Sub-totalofcashinflowsfrominvestmentactivities:adecreaseof49.3170millionYuanonayear-on-yearbasis,withagrowthrateof-97.77%,mainlybecauseloanbymandatereceivedfromSinopharmHoldingZhijun(Suzhou)Companyatsameperiodlast yearwhilenosuchamountoccurredintheperiod;
18. Cash paid for investment: an increase of 20.1221 million Yuan on a year-on-year basis, with a growth rate of100%, mainly because stores transfer amount for retail store acquisition from subsidiary Guoda Drugstore are paid in the period while no such amountoccurredatsameperiodlastyear;
19.Othercashpaidrelatingtoinvestmentactivities:adecreaseof43.9970millionYuanonayear-on-yearbasis,withagrowthrate of-99.99%, mainly because loan by mandate of Sinopharm Holding Zhijun (Suzhou) Company are paid at same period last year whilenosuchamountoccurredintheperiod;
20. Net cash flow from investment activities: a decrease of 27.0534 million Yuan on a year-on-year basis, with a growth rate of-61.00%, mainlybecause storestransfer amount for retail storeacquisitionfrom subsidiaryGuodaDrugstorearepaidin theperiod whilenosuchamountoccurredatsameperiodlastyear;
21. Cash received by absorbing investments: a decrease of 7.1012 million Yuan on a year-on-year basis, with a growth rate of-61.79%,mainlybecauseinvestmentfromminorityshareholdersaredeclinedfromayearearlier;
22.Other cashreceived relatingtofinancingactivities: anincreaseof69.0575millionYuanonayear-on-yearbasis, with agrowthrateof67.82%,mainlybecausesupplychainfinancingincreasedfromayearearlier;
23. Sub-totalofcash inflows fromfinancingactivities: an increase of58.2847millionYuanonayear-on-year basis,withagrowthrateof45.90%,mainlybecausesupplychainfinancingincreasedfromayearearlier;
24. Cash paid for distributionof dividend,profit or interest payment: an increase of53.2311millionYuan onayear-on-year basis,withagrowthrateof172.70%,mainlybecauseinterestofthesupplychainfinancingincreasedfromayearearlier;
25.Sub-totalofcashoutflowsfromfinancingactivities:anincreaseof60.6417millionYuanonayear-on-yearbasis,withagrowthrateof64.55%,mainlybecauseinterestofthesupplychainfinancingincreasedfromayearearlier;
26.Balanceofcashandcashequivalentsattheperiod-end:anincreaseof4044millionYuanonayear-on-yearbasis,withagrowthrateof144.57%,mainlybecauseendowmentmoneyfromstrategicinvestorswasreceivedbysubsidiaryGuodaDrugstoreatsecond halfoflastyearwhilenosuchamountoccurredatsameperiodlastyear
II. Analysisandexplanationof significantevents andtheir influenceand solutions
□Applicable√Notapplicable
Progressofsharesbuy-back
□Applicable√Notapplicable
Implementationprogressofthereductionofrepurchasessharesbycentralizedbidding
□Applicable√Notapplicable
III. Commitments completed in Period and those without completed till end of the Period fromactual controller, shareholders, related parties, purchaser andcompanies
√Applicable□Notapplicable
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|Commitments|Promise|Typeofcommit|Contentofcommitments|Commitment|Commitmentterm|Implementation|

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|Commitmentsforshare mergerreform|||||||
|Commitmentsin report ofacquisition orequitychange|SinopharmHolding|Commitment ofshareholders|"As a large pharmaceutical commercial enterprise whosebusiness involves pharmaceutical wholesale and retail,Sinopharm Holding may overlap with the Company ingeographical segmentation during its future businessdevelopment.Toavoidthepotentialpeercompetitionbroughtbysuchgeographicaloverlap,SinopharmHoldingundertakesthat, upon the transfer of shares of Sinopharm HoldingGuangzhou it held to Sinopharm Accord, “1. it will notnewly-establish or broaden within Guangdong any businessoperation that actually compete with that of SinopharmAccord, or set up any new subsidiaries or subordinateenterprises who engage insuch business. 2. It will enter intobusiness delineation with SinopharmAccord and SinopharmHolding Guangzhou, thereby giving the three parties cleargeographicalareastocarryoutpharmaceuticalwholesaleandretail businesses, so as to avoid potential peer competition.Apart from above, Sinopharm Holding will no longernewly-establish any enterprise that may compete withSinopharm Accord in the production and R&D ofpharmaceuticalproducts.”|21 June2005|Long-termeffective|Normallyimplementing|
|Commitmentsin assetsreorganization|SinopharmGroupCo.,Ltd;ChinaNationalPharmaceuticalForeignTradeCorporation|Commitment onrestrictedshares|“Sinopharm Holding and Sinopharm Foreign Trade madecommitments in the Report about China National AccordMedicines Corporation Ltd. Purchasing Assets and RaisingSupporting Funds and Related Transactions by Asset Sale,Stock Issuance and Cash Payment that the non-publicoffering of shares of Sinopharm Accord obtained from thistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceandshallbeunlockedafter36monthssincethedateoflisting.Within6monthsafterthecompletionof this transaction, if the closing price of the stock ofSinopharmAccord is less than the issue price in continuous20 trading days, or the closing price at the end of 6 monthsafter the completion of this transaction is less than the issueprice,thelockupperiodofthestockofSinopharmGroupandSinopharm Foreign Trade obtained from Sinopharm Accordby this transaction will automatically prolong at least 6months. The shares derived from stock dividends allocationandcapitalreserveincreasetransferringofSinopharmAccordbased on the non-public offering of shares of SinopharmAccord obtained bythistransaction should also abideby the|31 May2016|36months|Normallyimplementing|

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|||abovestockrestrictedarrangements.”||||
|Ping’anAssetsManagement Co.,Ltd.|Commitment onrestrictedshares|"PingAnAssetManagementCo.,Ltd.madecommitmentsinthe Report about China National Accord MedicinesCorporation Ltd. Purchasing Assets and Raising SupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceand Cash Payment that the non-public offering of shares ofSinopharmAccordobtainedfromthistransactionshallnotbetransferredwithin36monthssincethefinishdateofissuanceand shall be unlocked after 36 months since the date oflisting. After placement completed, the shares of the listedcompany increased due to bonus shares and turning toincrease capital should pursuit to the restriction arrangementtheabovementioned.|31 May2016|36months|Normallyimplementing|
|ChinaNationalAccordMedicinesCorporation Ltd.;SinopharmGroupCo., Ltd;SINOPHARM|Othercommitments|“The listed company, controlling shareholders, the actualcontrollers made commitments in the Report about ChinaNational Accord Medicines Corporation Ltd. PurchasingAssets and Raising Supporting Funds and RelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthattheCompanyshallnotviolatetherelevantregulationsofArticle 16 in Securities Issuance and UnderwritingManagement Approach, and directly or indirectly providingfinancial assistance or compensation for the subscriptionobjectsanditsshareholders/partners/clients(ifany)ofthisnon-public offering does not exist and will not occur in thefuture.”|31 May2016|Long-termeffective|Normallyimplementing|
|Ping’anAssetsManagement Co.,Ltd.|Othercommitments|“PingAnAssetManagementCo.,Ltd.Promisesthattheunitintends to utilize Ping An Asset Xinxiang No.3 assetmanagementproductandPingAnAssetXinxiangNo.7assetmanagement product to fund and subscribe some non-publicoffering of shares of Sinopharm Accord in this major assetrestructuring process, and has the ability to subscribe theshares, therelevant capital sourcesare legitimate, thereisnohierarchical income and other structured arrangements, andthereisnouseof leveraged funds.Theunit does not receivefinancialassistanceorcompensationfromSinopharmAccordanditscontrollingshareholders,ortheactualcontrollers.Theinvestors’ structure of above - mentioned products do notchange from the issue date of the commitment letter to theend date of the lockup period of the stock that the unitsubscribesfromSinopharmAccord.”|24March2016|Long-termeffective|Normallyimplementing|
|SINOPHARM|Increaseholdingcommit|“Sinopharm made commitments in the Report about ChinaNational Accord Medicines Corporation Ltd. PurchasingAssets and Raising Supporting Funds and Related|6 Jan.2017|Threeyears fromthe end of|There isno needfor actual|

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||ment|TransactionsbyAssetSale,StockIssuanceandCashPaymentthat1.ifthestockintradaypriceofSinopharmAccordonanytrading day of the 30 trading days after the listing of newlyincreasedsharesinthistransactionislessthantheissuepriceofnewly increasedsharesinthistransaction,Sinopharmwillaccumulatively invest no more than RMB 150 million inthese 30 trading days to increase the holding by the stocktradingsystemoftheShenzhenStockExchange(thisincreaseof holding) until the earlier one of below two situationsoccurs: (1) the above-mentioned funds are use up; (2) theintraday price of SinopharmAccord is no less than the issueprice of newly increased shares in this transaction. 2.Sinopharm shall not sell the shares obtained from thisincrease of holding within 3 years after the end of thisincreaseofholding.”||increaseholding (ifapplicable)|controllers toincreaseholdings|
|SinopharmGroupCo.,Ltd|Commitmentsonhorizontalcompetition,relationtransaction andcapitaloccupation|“SinopharmHoldingmadecommitmentsintheReportaboutChina National Accord Medicines Corporation Ltd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthat the Company shall be the controlling shareholder ofChina National Accord Medicines Corporation Ltd.(hereinafter referred toasSinopharmAccord) upto theissuedate of this commitment letter, after the completion of thismajor assets reorganization (hereinafter referred to as “thisreorganization”), Sinopharm Accord shall no longer holdshares or operate relevant businesses of pharmaceuticalindustry, the main business will become the nationalpharmaceutical retail and pharmaceutical distributionbusinessin GuangdongandGuangxi. In order to support thebusiness development of Sinopharm Accord and avoidhorizontal competition with Sinopharm Accord and itscontrolling enterprises, the Company made followingirrevocable commitments and promises:1, after thecompletion of this reorganization, as for the social retaildrugstore assets except for Sinopharm Holding GuodaDrugstore Co., Ltd. and its subsidiaries and branches ownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriate measures to solve the horizontal competitionproblem in the pharmaceutical retail business between theCompany and Sinopharm Accord within 5 years since thecompletiondateofthisreorganization.2.TheCompany'swayof resolving horizontal competitionproblems includes and isnot limited to purchasing the social retail drugstore assetssubordinated to the Company by Sinopharm Accord, taking|28 Dec.2016|Long-termeffective|Normallyimplementing|

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|the entrusted operation, leasing or contracting operation bySinopharm Accord and its controlling enterprises inaccordance with the methods permitted to national laws tohold or control the social retail drugstore assets, ortransferringthecontrollingstakeofthesocialretaildrugstoreassets by the Company. 3. If the shareholders of the socialretail drugstore assets (hereinafter referred to as "the thirdparty") of the Company or the enterprises controlled by theCompanyhaveoraregoingtoperformthepreemptiverightsunder the same conditions in accordance with relevant lawsand corresponding Articles of Association, then the abovecommitment will not be applicable, but in this case, theCompany should try its utmost to urge the third party towaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompanywill urge the enterprises controlled by the Company totransfer the social retail drugstore assets to the third party tosolve the horizontal competition problem. 4. Thepharmaceutical distribution assets currently owned orcontrolled by the Company are distributed outsideGuangdong and Guangxi regions, there is no horizontalcompetition with Sinopharm Accord, the Company will notengage in the same or similar operation businesses toSinopharmAccord in Guangdongand Guangxi in thefuture,if the Company and its holding enterprises obtain the newbusiness opportunities constituting substantial horizontalcompetition (hereinafter referred to as competitive newbusiness) within the pharmaceutical distribution businessscopeof SinopharmAccord in Guangdong and Guangxi, theCompany will send written notice to SinopharmAccord andtryitsutmosttofirstlyprovidethenewbusinessopportunitiesto SinopharmAccord or its holding enterprises according tothereasonableandfairtermsandconditionssoastoavoidthehorizontal competition with Sinopharm Accord and itsholding enterprises. 5. Since the issue date of thiscommitment letter, the Company promises to indemnifySinopharm Accord for all actual losses, damages andexpenses caused by the Company in violation of anycommitments under this commitment letter. 6. Thiscommitment letter terminates when following circumstancesoccur (subject to the earlier one): (1) the Company is nolonger the controlling shareholder of Sinopharm Accord; or(2) the shares of Sinopharm Accord terminate the listing atthestockexchange.”|

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|SINOPHARM|Commitmentsonhorizontalcompetition,relationtransaction andcapitaloccupation|“SINOPHARM made commitments in the Report aboutChina National Accord Medicines Corporation Ltd.PurchasingAssetsandRaisingSupportingFundsandRelatedTransactionsbyAssetSale,StockIssuanceandCashPaymentthat the Company shall be the actual controller of ChinaNational Accord Medicines Corporation Ltd. (hereinafterreferred toas SinopharmAccord)upto theissuedateofthiscommitment letter, after the completion of this major assetsreorganization (hereinafter referred to as “thisreorganization”), Sinopharm Accord shall no longer holdshares or operate relevant businesses of pharmaceuticalindustry, the main business will become the nationalpharmaceutical retail and pharmaceutical distributionbusinessin GuangdongandGuangxi. In order to support thebusiness development of Sinopharm Accord and avoidhorizontal competition with Sinopharm Accord and itscontrolling enterprises, the Company made followingirrevocable commitments and promises:1, after thecompletion of this reorganization, as for the social retaildrugstore assets except for Sinopharm Group GuodaDrugstore Co., Ltd. and its subsidiaries and branches ownedorcontrolledbytheCompany,theCompanypromisedtotakeappropriate measures to solve the horizontal competitionproblem in the pharmaceutical retail business between theCompany and Sinopharm Accord within 5 years since thecompletiondateofthisreorganization.2.TheCompany'swayof resolving horizontal competitionproblems includes and isnot limited to purchasing the social retail drugstore assetssubordinated to the Company by Sinopharm Accord, takingthe entrusted operation, leasing or contracting operation bySinopharm Accord and its controlling enterprises inaccordance with the methods permitted to national laws tohold or control the social retail drugstore assets, ortransferringthecontrollingstakeofthesocialretaildrugstoreassets by the Company. 3. If the shareholders of the socialretail drugstore assets (hereinafter referred to as "the thirdparty") of the Company or the enterprises controlled by theCompanyhaveoraregoingtoperformthepreemptiverightsunder the same conditions in accordance with relevant lawsand corresponding Articles of Association, then the abovecommitment will not be applicable, but in this case, theCompany should try its utmost to urge the third party towaiveitspreemptiverights.IftheCompanyisunabletourgethethirdpartytogiveupthepreemptiverights,theCompany|28 Dec.2016|Long-termeffective|Normallyimplementing|

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||||will urge the enterprises controlled by the Company totransfer the social retail drugstore assets to the third party tosolve the horizontal competition problem. 4. Thepharmaceutical distribution assets currently owned orcontrolled by the Company are distributed outsideGuangdong and Guangxi regions, there is no horizontalcompetition with Sinopharm Accord, the Company will notengage in the same or similar operation businesses toSinopharmAccord in Guangdongand Guangxi in thefuture,if the Company and its holding enterprises obtain the newbusiness opportunities constituting substantial horizontalcompetition (hereinafter referred to as competitive newbusiness) within the pharmaceutical distribution businessscopeof SinopharmAccord in Guangdong and Guangxi, theCompany will send written notice to SinopharmAccord andtryitsutmosttofirstlyprovidethenewbusinessopportunitiesto SinopharmAccord or its holding enterprises according tothereasonableandfairtermsandconditionssoastoavoidthehorizontal competition with Sinopharm Accord and itsholding enterprises. 5. This commitment letter terminateswhen following circumstances occur (subject to the earlierone): (1) the Company is no longer the actual controller ofSinopharm Accord; or (2) the shares of Sinopharm Accordterminatethelistingatthestockexchange.”||||
|Commitmentsmake in initialpublicofferingorre-financing|SinopharmHolding|Commitment ofshareholders|SinopharmHoldingmadecommitmentsintheCommitmentLetterAboutSinopharmGroupCo.,Ltd.toAvoidHorizontalCompetition: “First, the Company and the Company’swholly-owned, controlling or other enterprises with actualcontrol (in addition to SinopharmAccord and its controllingenterprises, hereinafter the same) don’t have businesses andoperations constituting thesubstantial horizontal competitiontoSinopharmAccord andits controllingenterprises. Second,the Company and the Company’s wholly-owned, controllingor other enterprises with actual control shall not engage,participate in or do businesses and activities in Guangdongand Guangxi which constitute substantial competition toSinopharm Accord and pharmaceutical business services.Third, the Company and the Company’s wholly-owned,controlling or other enterprises with actual control shall notengage, participate in or do businesses and activities whichconstitute substantial competition to Sinopharm Accord andpharmaceutical industry businesses. Fourth, the Companyshall not take advantage of the control to SinopharmAccordto damage the legitimate rights and interests of Sinopharm|5 Sept.2013|Long-termeffective|Controllingshareholder isimplement in realearnest,SinopharmAccordwillactivelyurged thecontrollingshareholder andactualcontrollerto fulfillcommitm|

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|-|-|-|-|-|-|
|||Accordandother shareholders(especiallymediumandsmallshareholders). This commitment letter takes effect from theissue date, and remains in effect for the entire period whentheCompanyactsasthecontrollingshareholderoritsrelatedpartyofSinopharmAccord.Withintheeffectiveperiodofthecommitment, if the Company violates this commitment andcausesalosstoSinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.”|||ents|
|SinopharmHolding|Commitment ofshareholders|Sinopharm Holding made commitments in the CommitmentLetter About Sinopharm Group Co., Ltd. to Regulate theRelated Transactions with China NationalAccord MedicinesCorporation Ltd.: “First, when the Company is controllingSinopharm Accord, the Company and the companies andenterprisesdirectlyandindirectlycontrolledbytheCompany(“related party” for short) will strictly regulate the relatedtransactions with Sinopharm Accord and its controllingenterprises. Second, for the related transactions that can notbe avoided nor have reasonable reasons to occur, theCompany and related party shall sign normative relatedtransaction agreement in accordance with relevant laws withSinopharm Accord. Sinopharm Accord implements theapproval procedures and fulfills the information disclosureobligations of the related transactions according to relevantlaws, regulations, rules, other normative documents and theconstitutions of Sinopharm Accord. Third, for the relatedtransactions that can not be avoided or have reasonablereasons to occur, the Company and related party shall abideby the open, fair and just market principles and confirm thepriceofrelated transactionsinaccordancewiththepricethatthe independent third party without association sets for thesame and similar transactions, and ensure the fairness of theprice of the related transactions. Fourth, when the board ofdirectors and the general meeting of stockholders ofSinopharmAccord vote on therelated transactions involvingthe Company and other enterprises controlled by theCompany,theCompanyshallfulfillthenecessaryobligationsthat the associated directors and associated shareholdersabstain from voting in accordance with the relevantprovisions, and abide by the legal procedures for approvingrelated transactions and the information disclosureobligations. Fifth, the Company guarantees to participate inthe shareholders' general meeting, equally exercise thecorresponding rights and take the corresponding obligationsin accordance with the constitutions of Sinopharm Accord,|5 Sept.2013|Long-termeffective|Controllingshareholder isimplement in realearnest,SinopharmAccordwillactivelyurged thecontrollingshareholder andactualcontrollerto fulfillcommitments|

|||||||
|-|-|-|-|-|-|
|||nottotakeadvantageofcontrollingshareholderstatustoseekimproper benefits or utilize related transactions to illegallytransfer the funds and profits of SinopharmAccord, and notto damage the legitimate rights and interests of othershareholders (especially the medium and small shareholders)of Sinopharm Accord. Sixth, this commitment letter comesinto force from the issue date and remains in effect for theentire period when the Company acts as the controllingshareholder or itsrelated partyof SinopharmAccord.Withinthe effective period of the commitment, if the Companyviolates this commitment and causes a loss to SinopharmAccord,theCompanywilltimelymakefullcompensationforSinopharmAccord.”||||
|SINOPHARM|Commitment ofactualcontroller|"SINOPHARM made commitments in the CommitmentLetter About China National Pharmaceutical GroupCorporation to Avoid Horizontal Competition with ChinaNational Accord Medicines Corporation Ltd.: “First, in thenextfiveyears,Sinopharmplanstotakeappropriatemeasures(including assets replacement or acquisition, equityreorganization, etc.) to resolve the horizontal competitionbetweenSinopharmWeiqidaandSinopharmAccord.Second,in addition to the past matters and matters disclosed in thiscommitment letter, the Company and the Company’swholly-owned, controlling or other enterprises with actualcontrol rights (except for Sinopharm Accord and itscontrolling enterprises, the same as below) shall not directlyengaged in, participate in or do the businesses an activitiesconstituting actual competition to the production andoperation of Sinopharm Accord in China. The relevantcommitments about avoiding horizontal competition that theCompany made in the past still remain in effect. Third, theCompanyshallnottakeadvantageofthecontrolrelationshipto Sinopharm Accord to damage the legitimate rights andinterests of Sinopharm Accord and its shareholders(especially the medium and small shareholders). Fourth, thiscommitment letter comes into force from the issue date andremainsineffectfortheentireperiodwhentheCompanyactsas the controlling shareholder or its related party ofSinopharmAccord.”|16 Oct.2013|Long-termeffective|ActualController isimplement in realearnest,SinopharmAccordwillactivelyurged thecontrollingshareholder andactualcontrollerto fulfillcommitments|
|SINOPHARM|Commitment ofactualcontrolle|"SINOPHARM made commitments in the CommitmentLetter About Sinopharm Group Co., Ltd. to Regulate theRelated Transactions with China NationalAccord MedicinesCorporation Ltd.: “First, when the Company is controllingSinopharm Accord, the Company and the companies and|22 Sept.2013|Long-termeffective|ActualController isimplement in real|

|||||
|-|-|-|-|
||r|enterprisesdirectlyandindirectlycontrolledbytheCompany(“related party” for short) will strictly regulate the relatedtransactions with Sinopharm Accord and its controllingenterprises. Second, for the related transactions that can notbeavoidedorhavereasonablereasonstooccur,theCompanyand related party shall sign normative related transactionagreement in accordance with relevant laws with SinopharmAccord. Sinopharm Accord implements the approvalproceduresand fulfills theinformation disclosureobligationsof the related transactions according to relevant laws,regulations, rules, other normative documents and theconstitutions of Sinopharm Accord. Third, for the relatedtransactions that can not be avoided or have reasonablereasons to occur, the Company and related party shall abideby the open, fair and just market principles and confirm thepriceofrelated transactionsinaccordancewiththepricethatthe independent third party without association sets for thesame and similar transactions, and ensure the fairness of theprice of the related transactions. Fourth, when the board ofdirectors and the general meeting of stockholders ofSinopharmAccord vote on therelated transactions involvingthe Company and other enterprises controlled by theCompany,theCompanyshallfulfillthenecessaryobligationsthat the associated directors and associated shareholdersabstain from voting in accordance with the relevantprovisions, and abide by the legal procedures for approvingrelated transactions and the information disclosureobligations. Fifth, the Company guarantees not to takeadvantageofactualcontrollerstatustoseekimproperbenefitsor utilize related transactions to illegally transfer the fundsand profits of Sinopharm Accord, and not to damage thelegitimate rights and interests of other shareholders(especiallythemediumandsmallshareholders)ofSinopharmAccord. Sixth, thiscommitment letter comes into force fromtheissuedateandremainsineffectfortheentireperiodwhentheCompany acts as the actual controller or its related partyofSinopharmAccord.|earnest,SinopharmAccordwillactivelyurged thecontrollingshareholder andactualcontrollerto fulfillcommitments|
|Equityincentivecommitment||||
|Othercommitmentsfor mediumand smallshareholders||||

|||
|-|-|
|Completed ontime(Y/N)|Y|

IV.Predict ofthe business performance fromJanuary to June2019
Warningsandreasonsofthepredictthatthecumulativenetprofitfromthebeginoftheyeartotheendofnextreportperiodmaybe lossorhavegreatchangescomparingwiththesameperiodoflastyear
□Applicable√Notapplicable
V. Securities Investment
□Applicable√Notapplicable
NosecurityinvestmentinthePeriod.
VI.Derivativeinvestment
□Applicable√Notapplicable
NoderivativeinvestmentinthePeriod.
VII. Registration form for receiving research, communication and interview in the report period
□Applicable√Notapplicable
TheCompanyhadnoreceivingresearch,communicationorinterviewinthereportperiod.
VIII. Guarantee outsideagainsttheregulation
□Applicable√Notapplicable
TheCompanyhadnoguaranteeoutsideagainsttheregulationintheperiod.
IX.Non-operational fund occupationfromcontrolling shareholders andits related party□Applicable√Notapplicable
TheCompanyhadnonon-operationalfundoccupationformcontrollingshareholdersanditsrelatedpartyintheperiod.
Section IV. Financial Statement
I. Financialstatement
1.Consolidatebalancesheet
PreparedbyChinaNationalAccordMedicinesCorporationLtd.
InRMB
||||
|-|-|-|
|Item|2019-3-31|2018-12-31|
|Currentassets:|||
|Monetaryfunds|7,227,934,452.95|8,089,781,304.56|
|Settlementprovisions|||
|Capitallent|||
|Transactionalfinancialassets|||
|Financialassetsmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialassets|||
|Notereceivableandaccountreceivable|12,883,896,343.83|10,694,173,577.55|
|Including:Notereceivable|1,291,769,217.58|1,357,311,929.63|
|Accountreceivable|11,592,127,126.25|9,336,861,647.92|
|Accountspaidinadvance|469,305,072.68|583,484,515.95|
|Insurancereceivable|||
|Reinsurancereceivables|||
|Contractreserveofreinsurancereceivable|||
|Otheraccountreceivable|669,828,115.37|643,493,359.32|
|Including:Interestreceivable|10,774,272.10|8,223,327.64|
|Dividendreceivable|||
|Buyingbackthesaleoffinancialassets|||
|Inventories|5,021,180,614.11|4,389,335,942.19|
|Contractualassets|||
|Assetsheldforsale|||

||||
|-|-|-|
|Non-currentassetduewithinoneyear|216,449.81|0.00|
|Othercurrentassets|78,322,158.95|95,347,629.18|
|Totalcurrentassets|26,350,683,207.70|24,495,616,328.75|
|Non-currentassets:|||
|Loansandpaymentsonbehalf|||
|Creditor'srightsinvestment|||
|Financeassetavailableforsales|||
|Othercreditor'srightsinvestment|||
|Held-to-maturityinvestment|||
|Long-termaccountreceivable|||
|Long-termequityinvestment|1,965,032,173.28|1,880,393,786.10|
|OtherEquityInstrumentInvestment|13,685,760.00|13,685,760.00|
|Othernon-currentfinancialassets|140,000,000.00|140,000,000.00|
|InvestmentRealEstate|142,440,522.94|144,894,495.97|
|Fixedassets|599,595,334.28|607,933,827.67|
|Constructioninprogress|23,196,302.61|36,412,614.61|
|Productivebiologicalasset|||
|Oilandgasasset|||
|Right-of-useassets|||
|Intangibleassets|325,672,972.38|319,207,126.15|
|ExpenseonResearchandDevelopment|||
|Goodwill|833,547,800.60|833,547,800.60|
|Long-termexpensestobeapportioned|307,485,030.89|311,328,706.46|
|Deferredincometaxasset|79,583,749.57|74,914,209.95|
|Othernon-currentasset|74,361,692.49|72,365,863.71|
|Totalnon-currentasset|4,504,601,339.04|4,434,684,191.22|
|Totalassets|30,855,284,546.74|28,930,300,519.97|
|Currentliabilities:|||
|Short-termloans|2,966,927,256.65|2,597,652,702.43|
|Loanfromcentralbank|||
|Capitalborrowed|||
|Transactionalfinancialliabilities|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedinto|||

||||
|-|-|-|
|currentgains/losses|||
|Derivativefinancialliability|||
|Notepayableandaccountpayable|11,051,700,299.25|9,885,291,642.97|
|Accountsreceivedinadvance|||
|Sellingfinancialassetofrepurchase|||
|Absorbingdepositandinterbankdeposit|||
|Securitytradingofagency|||
|Securitysalesofagency|||
|Wagepayable|161,756,066.12|231,866,407.40|
|Taxespayable|206,747,491.44|241,980,412.72|
|Otheraccountpayable|1,697,350,774.81|1,539,436,971.93|
|Including:Interestpayable|23,450,973.62|21,906,660.63|
|Dividendpayable|6,389,320.96|6,389,320.96|
|Commissionchargeandcommissionpayable|||
|Reinsurancepayable|||
|Contractualliability|237,075,149.10|255,590,612.37|
|Liabilityheldforsale|||
|Non-currentliabilitiesduewithinoneyear|5,810,749.03|5,861,324.37|
|Othercurrentliabilities|437,717.78|292,465.75|
|Totalcurrentliabilities|16,327,805,504.18|14,757,972,539.94|
|Non-currentliabilities:|||
|Insurancecontractreserve|||
|Long-termloans|31,600,000.00|31,600,000.00|
|Bondspayable|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Leaseliabilities|||
|Long-termaccountpayable|3,249,184.86|4,563,978.52|
|Long-termwagespayable|2,050,000.00|2,050,000.00|
|Accrualliability|||
|Deferredincome|93,363,910.59|91,491,170.40|
|Deferredincometaxliabilities|73,707,747.31|67,605,161.88|

||||
|-|-|-|
|Othernon-currentliabilities|68,719,380.11|69,241,176.18|
|Totalnon-currentliabilities|272,690,222.87|266,551,486.98|
|Totalliabilities|16,600,495,727.05|15,024,524,026.92|
|Owner’sequity:|||
|Sharecapital|428,126,983.00|428,126,983.00|
|Otherequityinstrument|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Capitalpublicreserve|4,320,984,981.51|4,320,984,981.51|
|Less:Inventoryshares|||
|Othercomprehensiveincome|||
|Specialreserves|||
|Surpluspublicreserve|214,063,491.50|214,063,491.50|
|Provisionofgeneralrisk|||
|Retainedprofit|6,955,406,159.35|6,655,257,147.27|
|Totalowner’sequityattributabletoparentcompany|11,918,581,615.36|11,618,432,603.28|
|Minorityinterests|2,336,207,204.33|2,287,343,889.77|
|Totalowner’sequity|14,254,788,819.69|13,905,776,493.05|
|Totalliabilitiesandowner’sequity|30,855,284,546.74|28,930,300,519.97|

 LegalRepresentative:LinZhaoxiong
Personinchargeofaccountingworks:WeiPingxiao
Personinchargeofaccountinginstitute:WangYing
2.CompanyBalanceSheet
InRMB
||||
|-|-|-|
|Item|2019-3-31|2018-12-31|
|Currentassets:|||
|Monetaryfunds|1,610,546,696.63|1,817,654,598.01|
|Transactionalfinancialassets|||
|Financialassetsmeasuredbyfairvalueandwithvariationreckonedinto|||

||||
|-|-|-|
|currentgains/losses|||
|Derivativefinancialassets|||
|Notereceivableandaccountreceivable|778,182,144.17|695,107,574.33|
|Including:Notereceivable|61,801,525.19|63,870,980.39|
|Accountreceivable|716,380,618.98|631,236,593.94|
|Accountspaidinadvance|2,866,786.21|4,760,182.00|
|Otheraccountreceivable|1,738,408,183.81|1,541,980,883.50|
|Including:Interestreceivable|10,239,458.70|7,550,877.07|
|Dividendreceivable|||
|Inventories|248,756,233.39|158,166,185.65|
|Contractualassets|||
|Assetsheldforsale|||
|Non-currentassetduewithinoneyear|||
|Othercurrentassets|39,482.38|39,482.38|
|Totalcurrentassets|4,378,799,526.59|4,217,708,905.87|
|Non-currentassets:|||
|Creditor'srightinvestment|||
|Financeassetavailableforsales|||
|OtherCreditor'srightinvestment|||
|Held-to-maturityinvestment|||
|Long-termaccountreceivable|||
|Long-termequityinvestment|7,520,772,179.63|7,432,906,692.24|
|OtherEquityInstrumentInvestment|||
|Othernon-currentfinancialassets|140,000,000.00|140,000,000.00|
|Investmentrealestate|1,753,860.08|1,955,854.46|
|Fixedassets|20,366,256.30|21,362,422.03|
|Constructioninprogress|||
|Productivebiologicalasset|||
|Oilandgasasset|||
|Right-of-useassets|||
|Intangibleassets|2,510,842.98|2,452,222.51|
|ExpenseonResearchandDevelopment|||
|Goodwill|||

||||
|-|-|-|
|Long-termexpensestobeapportioned|7,393,587.02|7,481,809.53|
|Deferredincometaxasset|||
|Othernon-currentasset|7,000,000.00|7,000,000.00|
|Totalnon-currentasset|7,699,796,726.01|7,613,159,000.77|
|Totalassets|12,078,596,252.60|11,830,867,906.64|
|Currentliabilities:|||
|Short-termloans|589,000,000.00|539,000,000.00|
|Transactionalfinancialliabilities|||
|Financialliabilitymeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||
|Derivativefinancialliability|||
|Notepayableandaccountpayable|869,660,213.37|694,367,042.00|
|Accountsreceivedinadvance|||
|Contractualliability|5,410,556.58|4,182,083.40|
|Wagepayable|24,216,942.71|36,233,563.12|
|Taxespayable|9,550,478.10|13,426,601.90|
|Otheraccountpayable|1,414,671,051.06|1,481,817,856.56|
|Including:Interestpayable|3,170,194.80|1,354,592.35|
|Dividendpayable|||
|Liabilityheldforsale|||
|Non-currentliabilitiesduewithin1year|||
|Othercurrentliabilities|286,774.36|226,427.99|
|Totalcurrentliabilities|2,912,796,016.18|2,769,253,574.97|
|Non-currentliabilities:|||
|Long-termloans|31,600,000.00|31,600,000.00|
|Bondspayable|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Leaseliabilities|||
|Long-termaccountpayable|800,000.00|800,000.00|
|Long-termwagespayable|118,000.00|118,000.00|
|Accrualliability|||
|Deferredincome|1,598,343.17|1,687,899.50|

||||
|-|-|-|
|Deferredincometaxliabilities|2,264,238.33|2,298,426.39|
|Othernon-currentliabilities|||
|Totalnon-currentliabilities|36,380,581.50|36,504,325.89|
|Totalliabilities|2,949,176,597.68|2,805,757,900.86|
|Owner’sequity:|||
|Sharecapital|428,126,983.00|428,126,983.00|
|Otherequityinstrument|||
|Including:preferredstock|||
|Perpetualcapitalsecurities|||
|Capitalpublicreserve|4,426,362,777.26|4,426,362,777.26|
|Less:Inventoryshares|||
|Othercomprehensiveincome|||
|Specialreserves|||
|Surpluspublicreserve|214,063,491.50|214,063,491.50|
|Retainedprofit|4,060,866,403.16|3,956,556,754.02|
|Totalowner’sequity|9,129,419,654.92|9,025,110,005.78|
|Totalliabilitiesandowner’sequity|12,078,596,252.60|11,830,867,906.64|

 3.ConsolidatedIncomeStatement
InRMB
||||
|-|-|-|
|Item|Currentperiod|Lastperiod|
|I.Totaloperatingincome|11,879,309,078.82|10,256,566,731.51|
|Including:Operatingincome|11,879,309,078.82|10,256,566,731.51|
|Interestincome|||
|Insurancegained|||
|Commissionchargeandcommissionincome|||
|II.Totaloperatingcost|11,537,438,016.52|9,962,364,535.96|
|Including:Operatingcost|10,577,400,754.11|9,138,308,909.43|
|Interestexpense|||
|Commissionchargeandcommissionexpense|||
|Cashsurrendervalue|||
|Netamountofexpenseofcompensation|||

||||
|-|-|-|
|Netamountofwithdrawalofinsurancecontractreserve|||
|Bonusexpenseofguaranteeslip|||
|Reinsuranceexpense|||
|Taxandextras|30,332,457.09|26,770,236.12|
|Salesexpense|715,774,974.40|606,866,589.59|
|Administrativeexpense|177,959,158.93|169,516,240.49|
|R&Dexpense|||
|Financialexpense|31,054,269.89|22,272,552.43|
|Including:Interestexpenses|58,290,745.18|36,406,979.15|
|Interestincome|29,668,524.26|10,935,569.52|
|Lossesofdevaluationofasset|516,563.77|-530,515.38|
|Lossesofdevaluationofcredit|4,399,838.33|-839,476.72|
|Add:otherincome|1,089,732.58|1,419,763.88|
|Investmentincome(Lossislistedwith“-”)|81,891,387.17|82,615,372.00|
|Including:Investmentincomeonaffiliatedcompanyandjointventure|81,891,387.17|82,615,372.00|
|Exchangeincome(Lossislistedwith“-”)|||
|Netincomeofexposurehedging (Lossislistedwith“-”)|||
|Incomefromchangeoffairvalue(Lossislistedwith“-”)|||
|Incomefromassetsdisposal(Lossislistedwith “-”)|-14,209.30|3,830,300.39|
|III.Operatingprofit(Lossislistedwith“-”)|424,837,972.75|382,067,631.82|
|Add:Non-operatingincome|1,840,284.73|1,360,096.85|
|Less:Non-operatingexpense|359,824.55|624,679.96|
|IV.TotalProfit(Lossislistedwith“-”)|426,318,432.93|382,803,048.71|
|Less:Incometaxexpense|81,698,106.29|69,964,333.16|
|V.Netprofit(Netlossislistedwith“-”)|344,620,326.64|312,838,715.55|
|(i)Classifybybusinesscontinuity|||
|1.Netprofitfromcontinuousoperation(Netlossislistedwith“-”)|344,620,326.64|312,838,715.55|
|2.Netprofitfromdiscontinuedoperation(Netlossislistedwith“-”)|||
|(ii)Classifybyownership|||

||||
|-|-|-|
|1.Netprofitattributabletoownersofparentcompany|300,149,012.08|292,731,685.33|
|2.Minorityshareholders’gainsandlosses|44,471,314.56|20,107,030.22|
|VI.Netafter-taxofothercomprehensiveincome|||
|Netafter-taxofothercomprehensiveincomeattributabletoownersofparentcompany|||
|(i)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytogain/loss|||
|1.Re-measurementofthechangeofdefinedbenefitplan|||
|2.Othercomprehensiveincomeunabletransfertogain/lossunderequitymethod|||
|3.Changeoffairvalueofinvestmentinotherequityinstrument|||
|4.Fairvaluechangeofenterprise'screditrisk|||
|5.Other|||
|(ii)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss|||
|1.Othercomprehensiveincomeabletotransfertogain/lossunderequitymethod|||
|2.Changeoffairvalueofotherdebtinvestment|||
|3.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets|||
|4.Amountoffinancialassetsre-classifytoothercomprehensiveincome|||
|5.Gainsorlossesarisingfromreclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets|||
|6.Creditimpairmentprovisionforotherdebtinvestment|||
|7.Cashflowhedgingreserve|||
|8.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements|||
|9.Other|||
|Netafter-taxofothercomprehensiveincomeattributabletominorityshareholders|||

||||
|-|-|-|
|VII.Totalcomprehensiveincome|344,620,326.64|312,838,715.55|
|TotalcomprehensiveincomeattributabletoownersofparentCompany|300,149,012.08|292,731,685.33|
|Totalcomprehensiveincomeattributabletominorityshareholders|44,471,314.56|20,107,030.22|
|VIII.Earningspershare:|||
|(i) Basicearningspershare|0.70|0.68|
|(ii) Dilutedearningspershare|0.70|0.68|

 EnterprisecombineunderthesamecontrolinthePeriod,thecombinedpartyrealizednetprofitof0Yuanbeforecombination,and realized0Yuanatlastperiodforcombinedparty
LegalRepresentative:LinZhaoxiong
Personinchargeofaccountingworks:WeiPingxiao
Personinchargeofaccountinginstitute:WangYing
4.CompanyIncomeStatement
InRMB
||||
|-|-|-|
|Item|Currentperiod|Lastperiod|
|I.Operationincome|980,473,288.29|838,120,017.53|
|Less:Operatingcost|941,804,760.61|799,779,364.60|
|Taxandextras|1,316,238.98|835,459.34|
|Salesexpense|14,925,549.11|12,616,898.48|
|Administrativeexpense|14,279,164.82|17,050,142.14|
|R&Dexpense|||
|Financialexpense|-13,902,193.26|-8,050,984.45|
|Including:Interestexpenses|10,213,129.26|10,790,064.92|
|Interestincome|24,381,516.96|19,000,031.39|
|Lossesofdevaluationofasset|361,970.94|615,777.60|
|Lossesofdevaluationofcredit|||
|Add:otherincome|193,207.80|326,108.76|
|Investmentincome(Lossislistedwith“-”)|87,865,487.39|86,415,508.07|
|Including:Investmentincomeonaffiliatedcompanyandjointventure|87,865,487.39|86,415,508.07|
|Netincomeofexposurehedging (Lossislistedwith“-”)|||

||||
|-|-|-|
|Incomefromchangeoffairvalue(Lossislistedwith “-”)|||
|Incomefromassetsdisposal(Lossislistedwith “-”)|||
|II.Operatingprofit(Lossislistedwith“-”)|109,746,492.28|102,014,976.65|
|Add:Non-operatingincome|45,736.26|1.36|
|Less:Non-operatingexpense||127,688.63|
|III.TotalProfit(Lossislistedwith“-”)|109,792,228.54|101,887,289.38|
|Less:Incometaxexpense|5,482,579.40|3,887,522.50|
|IV.Netprofit(Netlossislistedwith“-”)|104,309,649.14|97,999,766.88|
|(i)netprofitfromcontinuousoperation(Netlossislistedwith “-”)|104,309,649.14|97,999,766.88|
|(ii)netprofitfromdiscontinuedoperation(Netlossislistedwith “-”)|||
|V.Netafter-taxofothercomprehensiveincome|||
|(i)Othercomprehensiveincomeitemswhichwillnotbereclassifiedsubsequentlytogain/loss|||
|1.Re-measurementofthechangeofdefinedbenefitplan|||
|2.Othercomprehensiveincomeunabletransfertogain/lossunderequitymethod|||
|3.Changeoffairvalueofinvestmentinotherequityinstrument|||
|4.Fairvaluechangeofenterprise'screditrisk|||
|5.Other|||
|(ii)Othercomprehensiveincomeitemswhichwillbereclassifiedsubsequentlytoprofitorloss|||
|1.Othercomprehensiveincomeabletotransfertogain/lossunderequitymethod|||
|2.Changeoffairvalueofotherdebtinvestment|||
|3.Gainsorlossesarisingfromchangesinfairvalueofavailable-for-salefinancialassets|||
|4.Amountoffinancialassetsre-classifytoothercomprehensiveincome|||
|5.Gainsorlossesarisingfrom|||

||||
|-|-|-|
|reclassificationofheld-to-maturityinvestmentasavailable-for-salefinancialassets|||
|6.Creditimpairmentprovisionforotherdebtinvestment|||
|7.Cashflowhedgingreserve|||
|8.Translationdifferencesarisingontranslationofforeigncurrencyfinancialstatements|||
|9.Other|||
|VI.Totalcomprehensiveincome|104,309,649.14|97,999,766.88|
|VII.Earningspershare:|||
|(i) Basicearningspershare|||
|(ii) Dilutedearningspershare|||

5.ConsolidatedCashFlowStatement
InRMB
||||
|-|-|-|
|Item|Currentperiod|Lastperiod|
|I. Cashflowsarisingfromoperatingactivities:|||
|Cashreceivedfromsellingcommoditiesandprovidinglaborservices|11,235,250,201.33|9,559,665,373.83|
|Netincreaseofcustomerdepositandinterbankdeposit|||
|Netincreaseofloanfromcentralbank|||
|Netincreaseofcapitalborrowedfromotherfinancialinstitution|||
|Cashreceivedfromoriginalinsurancecontractfee|||
|Netcashreceivedfromreinsurancebusiness|||
|Netincreaseofinsuredsavingsandinvestment|||
|Netincreaseofamountfromdisposalfinancialassetsthatmeasuredbyfairvalueandwithvariationreckonedintocurrentgains/losses|||

||||
|-|-|-|
|Cashreceivedfrominterest,commissionchargeandcommission|||
|Netincreaseofcapitalborrowed|||
|Netincreaseofreturnedbusinesscapital|||
|Netcashreceivedbyagentsinsaleandpurchaseofsecurities|||
|Write-backoftaxreceived||389.03|
|Othercashreceivedconcerningoperatingactivities|132,553,315.42|148,125,927.35|
|Subtotalofcashinflowarisingfromoperatingactivities|11,367,803,516.75|9,707,791,690.21|
|Cashpaidforpurchasingcommoditiesandreceivinglaborservice|10,889,119,533.11|9,484,567,939.67|
|Netincreaseofcustomerloansandadvances|||
|Netincreaseofdepositsincentralbankandinterbank|||
|Cash paid for original insurancecontractcompensation|||
|Netincreaseoffinancialassetsheldfortransactionpurposes|||
|Netincreaseofcapitallent|||
|Cashpaidforinterest,commissionchargeandcommission|||
|Cashpaidforbonusofguaranteeslip|||
|Cashpaidto/forstaffandworkers|565,281,263.79|506,267,191.33|
|Taxespaid|319,123,756.29|263,785,194.50|
|Othercashpaidconcerningoperatingactivities|353,646,315.85|317,887,654.67|
|Subtotalofcashoutflowarisingfromoperatingactivities|12,127,170,869.04|10,572,507,980.17|
|Netcashflowsarisingfromoperatingactivities|-759,367,352.29|-864,716,289.96|
|II. Cashflowsarisingfrominvestingactivities:|||

||||
|-|-|-|
|Cashreceivedfromrecoveringinvestment|||
|Cashreceivedfrominvestmentincome|1,053,000.00|757,007.78|
|Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets|72,078.73|5,685,052.04|
|Netcashreceivedfromdisposalofsubsidiariesandotherunits|||
|Othercashreceivedconcerninginvestingactivities||44,000,000.00|
|Subtotalofcashinflowfrominvestingactivities|1,125,078.73|50,442,059.82|
|Cashpaidforpurchasingfixed,intangibleandotherlong-termassets|52,402,499.52|50,791,078.84|
|Cashpaidforinvestment|20,122,074.00||
|Netincreaseofmortgagedloans|||
|Netcashreceivedfromsubsidiariesandotherunitsobtained|||
|Othercashpaidconcerninginvestingactivities|2,761.38|43,999,800.00|
|Subtotalofcashoutflowfrominvestingactivities|72,527,334.90|94,790,878.84|
|Netcashflowsarisingfrominvestingactivities|-71,402,256.17|-44,348,819.02|
|III. Cashflowsarisingfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|4,392,000.00|11,493,200.00|
|Including:Cashreceivedfromabsorbingminorityshareholders’investmentbysubsidiaries|4,392,000.00|11,493,200.00|
|Cashreceivedfromloans|10,000,000.00|13,671,657.79|
|Cashreceivedfromissuingbonds|||
|Othercashreceivedconcerningfinancingactivities|170,881,105.78|101,823,564.80|
|Subtotalofcashinflowfromfinancingactivities|185,273,105.78|126,988,422.59|

||||
|-|-|-|
|Cashpaidforsettlingdebts|66,561,634.53|60,000,000.00|
|Cashpaidfordividendandprofitdistributingorinterestpaying|84,053,395.41|30,822,293.85|
|Including:Dividendandprofitofminorityshareholderpaidbysubsidiaries||2,581,864.12|
|Othercashpaidconcerningfinancingactivities|3,976,889.98|3,127,895.57|
|Subtotalofcashoutflowfromfinancingactivities|154,591,919.92|93,950,189.42|
|Netcashflowsarisingfromfinancingactivities|30,681,185.86|33,038,233.17|
|IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate|605.19||
|V.Netincreaseofcashandcashequivalents|-800,087,817.41|-876,026,875.81|
|Add:Balanceofcashandcashequivalentsattheperiod-begin|7,641,958,558.92|3,673,498,691.48|
|VI.Balanceofcashandcashequivalentsattheperiod-end|6,841,870,741.51|2,797,471,815.67|

6.CashFlowStatementofParentCompany
InRMB
||||
|-|-|-|
|Item|Currentperiod|Lastperiod|
|I. Cashflowsarisingfromoperatingactivities:|||
|Cashreceivedfromsellingcommoditiesandprovidinglaborservices|979,117,418.50|762,534,474.46|
|Write-backoftaxreceived|||
|Othercashreceivedconcerningoperatingactivities|8,959,448.01|35,545,170.43|
|Subtotalofcashinflowarisingfromoperatingactivities|988,076,866.51|798,079,644.89|
|Cashpaidforpurchasingcommoditiesandreceivinglaborservice|893,485,571.99|809,539,295.55|

||||
|-|-|-|
|Cashpaidto/forstaffandworkers|31,401,584.94|28,353,128.47|
|Taxespaid|16,046,448.54|9,359,247.21|
|Othercashpaidconcerningoperatingactivities|9,310,459.60|5,064,967.04|
|Subtotalofcashoutflowarisingfromoperatingactivities|950,244,065.07|852,316,638.27|
|Netcashflowsarisingfromoperatingactivities|37,832,801.44|-54,236,993.38|
|II. Cashflowsarisingfrominvestingactivities:|||
|Cashreceivedfromrecoveringinvestment|||
|Cashreceivedfrominvestmentincome|16,895,775.01|15,164,809.14|
|Netcashreceivedfromdisposaloffixed,intangibleandotherlong-termassets|||
|Netcashreceivedfromdisposalofsubsidiariesandotherunits|||
|Othercashreceivedconcerninginvestingactivities|442,400,000.00|567,200,000.00|
|Subtotalofcashinflowfrominvestingactivities|459,295,775.01|582,364,809.14|
|Cashpaidforpurchasingfixed,intangibleandotherlong-termassets|1,462,422.93|3,475,188.15|
|Cashpaidforinvestment|||
|Netcashreceivedfromsubsidiariesandotherunitsobtained|||
|Othercashpaidconcerninginvestingactivities|629,400,000.00|564,900,000.00|
|Subtotalofcashoutflowfrominvestingactivities|630,862,422.93|568,375,188.15|
|Netcashflowsarisingfrominvestingactivities|-171,566,647.92|13,989,620.99|
|III. Cashflowsarisingfromfinancingactivities|||
|Cashreceivedfromabsorbinginvestment|||

||||
|-|-|-|
|Cashreceivedfromloans|10,000,000.00|10,000,000.00|
|Cashreceivedfromissuingbonds|||
|Othercashreceivedconcerningfinancingactivities|4,517,196,050.81|3,631,131,894.36|
|Subtotalofcashinflowfromfinancingactivities|4,527,196,050.81|3,641,131,894.36|
|Cashpaidforsettlingdebts|10,000,000.00|10,000,000.00|
|Cashpaidfordividendandprofitdistributingorinterestpaying|6,245,437.77|9,054,055.96|
|Othercashpaidconcerningfinancingactivities|4,584,325,273.13|4,194,238,186.87|
|Subtotalofcashoutflowfromfinancingactivities|4,600,570,710.90|4,213,292,242.83|
|Netcashflowsarisingfromfinancingactivities|-73,374,660.09|-572,160,348.47|
|IV.Influenceoncashandcashequivalentsduetofluctuationinexchangerate|605.19||
|V.Netincreaseofcashandcashequivalents|-207,107,901.38|-612,407,720.86|
|Add:Balanceofcashandcashequivalentsattheperiod-begin|1,817,654,598.01|1,776,696,342.87|
|VI.Balanceofcashandcashequivalentsattheperiod-end|1,610,546,696.63|1,164,288,622.01|

II. Explanationon financialstatement adjustment
1. Financial statement adjustment at the beginning of the first year when implementation of new financial instrumentrules,newrevenuerulesandnewleasingrules
□Applicable√Notapplicable
2. Retrospective adjustment of the comparative data for initial implementation of new financial instrument rulesandnewleasingrules
□Applicable√Notapplicable
III. Auditreport
Whetherthefirstquarterlyreporthadbeenauditedornot
□Yes√No
ThefirstquarterlyreportoftheCompanyhadnotbeenaudited.
ChinaNationalAccordMedicinesCorporationLtd. Legal representative: Lin Zhaoxiong 25 April 2019