China National Accord Medicines Corporation Ltd.
First Quarterly Report 2016
April 2016
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.
All Directors are attended the Board Meeting for Quarterly Report deliberation. 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. Main financial data and changes of shareholders I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□ Yes√No
|||||
|-|-|-|-|
||||Changes of this period over|
||Current Period|Same period of last year||
||||same period of last year|
|Operating income (RMB)|7,053,846,519.17|6,261,714,700.23|12.65%|
|Net profit attributable to shareholders of|199,027,472.31|197,026,237.82||
||||1.02%|
|the listed company(RMB)||||
|Net profit attributable to shareholders of||||
|the listed company after deducting|187,445,696.09|192,315,542.07|-2.53%|
|non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating|-100,461,465.99|182,179,606.70||
||||-155.14%|
|activities(RMB)||||
|Basic earnings per share (RMB/Share)|0.549|0.543|1.10%|
|Diluted earnings per share (RMB/Share)|0.549|0.543|1.10%|
|Weighted average ROE|3.58%|4.05%|-0.47%|
||||Changes of this period-end|
||At the end of the reporting|||
|||At the end of last year|over same period-end of last|
||period|||
||||year|
|Total assets (RMB)|14,172,328,814.96|13,218,349,735.31|7.22%|
|Net assets attributable to shareholder of|5,652,382,580.33|5,453,393,694.55||
||||3.65%|
|listed company (RMB)||||

Items of non-recurring gains and losses
√ Applicable□ Not applicable
In RMB
||||
|-|-|-|
||Amount from year-begin to||
|Item||Note|
||period-end||
|||Mainly because the subsidiary|
|Gains/losses from the disposal of non-current asset (including the||Guangxi Logistics disposed the|
||9,117,952.96||
|write-off that accrued for impairment of assets)||house property and obtained|
|||compensation for demolition;|
|Governmental subsidy reckoned into current gains/losses (not|||
|||Mainly due to the various special|
|including the subsidy enjoyed in quota or ration according to|||
||4,043,684.40|grants received in the current|
|national standards, which are closely relevant to enterprise’s|||
|||period;|
|business)|||

||||
|-|-|-|
|||Mainly because the bad debts of|
|Reversal of impairment reserve for account receivable with||receivables withdrawn alone in|
||953,105.02||
|separate impairment testing||the previous years have been|
|||taken back in the current period;|
|Other non-operating income and expenditure except for the|||
||1,110,983.48||
|aforementioned items|||
|Less: impact on income tax|3,514,045.71||
|Impact on minority shareholders’ equity (post-tax)|129,903.93||
|Total|11,581,776.22|--|

Concerning the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable√ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss
II. Total number of shareholders at the end of this report period and top ten shareholders
1. Total number of common shareholders at the end of this report period and top ten common shareholders In shares
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Total preference shareholders|||||
|Total common shareholders||||with voting rights recovered at|||||
|||16,413|||||0||
|at the end of report period||||end of reporting period (if|||||
|||||applicable)|||||
|Top ten shareholders|||||||||
||||||Amount of|Number of share pledged/frozen|||
|Shareholder’s|Nature of|Proportion of|Amount of shares||||||
||||||restricted shares||||
|name|shareholder|shares held|held|||State of share||Amount|
||||||held||||
|Sinopharm GroupCo., Ltd.|State-owned legalperson|51.00%|184,942,291||74,482,543||||
|National SocialSecurity Fund106 combination|Domestic nonstate-owned legalperson|2.01%|7,298,555||||||
||Domestic nonstate-ownedCorporation|1.97%|7,132,757||||||
|China Securities|||||||||
|Finance Co., Ltd.|||||||||
|HTHK/CMGFSGUFP-CMGFIRST STATECHINA|ForeignCorporation|1.94%|7,032,720||||||

|||||||
|-|-|-|-|-|-|
|GROWTH FD||||||
|VALUEPARTNERSCLASSIC FUND|ForeignCorporation|1.42%|5,138,568|||
||Domestic nonstate-ownedCorporation|1.38%|5,008,637|||
|CITIC Securities||||||
|Co., Ltd.||||||
|National SocialSecurity Fund116 combination|Domestic nonstate-owned legalperson|1.32%|4,783,965|||
|New China LifeInsurance Co.,Ltd. – Bonus –Individualbonuses --018L-FH002Shen|Domestic nonstate-ownedCorporation|1.16%|4,199,772|||
||State-ownedCorporation|1.05%|3,804,400|||
|Central Huijin||||||
|Investment Ltd.||||||
|China LifeInsurance Co.,Ltd. – tradition –general insuranceproducts -005L-CT001Shen|Domestic nonstate-ownedCorporation|1.03%|3,750,090|||
|Top ten shareholders with unrestricted shares held||||||
|||||Type of shares||
|Shareholder’s name||Amount of unrestricted shares held||||
|||||Type|Amount|
|Sinopharm Group Co., Ltd.||110,459,748||RMB ordinary||
||||||110,459,748|
|||||shares||
|National Social Security Fund 106combination||7,298,555||RMB ordinary||
||||||7,298,555|
|||||shares||
|China Securities Finance Co., Ltd.||7,132,757||RMB ordinary||
||||||7,132,757|
|||||shares||
|HTHK/CMG FSGUFP-CMG FIRSTSTATE CHINA GROWTH FD||7,032,720||Domestically||
|||||listed foreign|7,032,720|
|||||shares||
|VALUE PARTNERS CLASSICFUND||5,138,568||Domestically||
|||||listed foreign|5,138,568|
|||||shares||

|||||
|-|-|-|-|
|CITIC Securities Co., Ltd.|5,008,637|RMB ordinary||
||||5,008,637|
|||shares||
|National Social Security Fund 116combination|4,783,965|RMB ordinary||
||||4,783,965|
|||shares||
|New China Life Insurance Co., Ltd.– Bonus – Individual bonuses --018L-FH002 Shen|4,199,772|||
|||RMB ordinary||
||||4,199,772|
|||shares||
|Central Huijin Investment Ltd.|3,804,400|RMB ordinary||
||||3,804,400|
|||shares||
|China Life Insurance Co., Ltd. –tradition – general insuranceproducts - 005L-CT001 Shen|3,750,090|||
|||RMB ordinary||
||||3,750,090|
|||shares||
|Explanation on associated|It is unknown that there exists no associated relationship or belongs to the consistent actionist|||
|relationship among the aforesaid|among the above shareholders regulated by the Management Measure of Information|||
|shareholders|Disclosure on Change of Shareholding for Listed Companies.|||

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period
□ Yes√ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy-back agreement dealing in reporting period.
2. Total shareholders with preferred stock held at Period-end and shares held by top ten shareholders with preferred stock held
□ Applicable√ Not applicable
Section III. Significant Events
I. Particulars about material changes in items of main accounting statement and financial index and explanations of reasons
√Applicable□Not applicable
1. Divided into assets held for sale: a decrease of 2,456,900 yuan compared with the beginning of the period, with a growth rate of-100.00%, mainly because the underlying assets have been completed in the current transaction;
2. Other current assets: a decrease of 7,106,200 yuan compared with the beginning of the period, with a growth rate of-36.52%, mainly because the value added tax retained has reduced in the current period;
3. Employee pay payable: a decrease of 68,188,800 yuan compared with the beginning of the period, with a growth rate of-41.50%, mainly because employee remuneration withdrawn in the previous year has been issued in the current period;
4. Taxes payable: an increase of 39,752,200 yuan compared with the beginning of the period, with a growth rate of54.56%, mainly due to the sales growth in current period resulting in an increase of provision for income tax;
5. Non-current liabilities due within one year: an increase of 2,075,200 yuan compared with the beginning of the period, with a growth rate of38.11%, mainly due to the increase of member points in the current period;
6. Non-operating expenses: a decrease of 151,700 yuan on a year-on-year basis, with a growth rate of-46.84%, mainly because the loss of non-current assets disposed in the current period has reduced on a year-on-year basis;
7. Tax refunds received: an increase of 3,753,300 yuan on a year-on-year basis, with a growth rate of1,125.52%, mainly because the increase of the amount of exports in the last year has led to an increase of amount of export rebates in the current period;
8. Other cash paid relating to operating activities: a decrease of 24,517,900 yuan on a year-on-year basis, with a growth rate of-30.29%, mainly due to the decrease of cash outflow related to expenses on a year-on-year basis;
9. Net cash flow from operating activities: a decrease of 283 million yuan on a year-on-year basis, with a growth rate of-155.14%, mainly because the cash paid for the purchase of goods and the service payments has increased on a year-on-year basis;
10. Net cash received by disposing fixed assets, intangible assets and other long-term assets: an increase of 2,126,900 yuan on a year-on-year basis, with a growth rate of9,524.51%, mainly due to an increase of fixed assets income disposed in the current period on a year-on-year basis;
11. Sub-total of cash inflows from investing activities: an increase of 2,126,900 yuan on a year-on-year basis, with a growth rate of9,524.51%, mainly due to an increase of fixed asset income disposed in the current period on a year-on-year basis;
12. Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets: a decrease of 17,563,300 yuan, with a growth rate of-35.57%, mainly due to a decrease in expenditures for acquisition of fixed assets in the current period on a year-on-year basis;
13. Other cash paid relating to investing activities: an increase of 26,502,400 yuan on a year-on-year basis, with a growth rate of10,516.81%, mainly because the earnest money for transferring the stock rights of subsidiaries has been returned in the current period;
14. Cash received by absorbing investments: a decrease of 1.47 million yuan on a year-on-year basis, with a growth rate of-100.00%, mainly because there were investment funds paid to minority shareholders of subsidiaries at the same period of last year but there is no such business in the current period;
15. Cash received from debts: an increase of 46,309,900 yuan on a year-on-year basis, mainly due to an increase in bank loans in the current period on a year-on-year basis;
16. Other cash received relating to financing activities: an increase of 112 million yuan on a year-on-year basis, mainly because the supply chain financing funds received in the current period have increased on a year-on-year basis;
17. Sub-total of cash inflows from financing activities: an increase of 157 million yuan on a year-on-year basis, with a growth rate of10,671.16%, mainly because the supply chain financing funds received in the current period have increased on a year-on-year basis; 18. Other cash paid relating to financing activities: a decrease of 27,930,600 yuan on a year-on-year basis, with a growth rate of-96.27%, mainly because the supply chain financing funds received in the current period have decreased on a year-on-year basis; 19. Net cash flow from financing activities: an increase of 175 million yuan on a year-on-year basis, with a growth rate of149.72%, mainly because the supply chain financing funds received in the current period have increased on a year-on-year basis;
20. Effects of exchange rate changes on cash and cash equivalents: a decrease of 9,250.41 yuan on a year-on-year basis, with a growth rate of-100.00%, mainly due to a decrease in foreign currency holdings on a year-on-year basis.
21. Net increase in cash and cash equivalents: a decrease of 115 million yuan on a year-on-year basis, with a growth rate of-721.18%, mainly because the net cash flow from operating activities has decreased by 283 million yuan on a year-on-year basis.
II. Analysis and explanation of significant events and their influence and solutions
√Applicable□Not applicable
The company held the 13th meeting of the seventh board of directors on March 9, 2016 which reviewed and approved the "Proposal on thecompany’s asset sale, issue of shares and cash purchase of assets and the raise of matching funds and the program of related transaction", "Proposal on the asset sale, issue of shares and cash purchase of assets and the raise of matching funds and the related transaction plan of China National Accord Medicines Corporation Ltd." and other related proposals, and released the announcement about "Asset sale, issue of shares and cash purchase of assets and the raise of matching funds and the related transaction plan of China National Accord Medicines Corporation Ltd." on the designated information disclosure media on March 10, 2016. On March 17, 2016, the company received the "Inquiry letter about the restructuring of China National Accord Medicines Corporation Ltd." (XKLCZWXH No.[2016] 22) issued by Shenzhen Stock Exchange. The company has replied the questions involved in the inquiry letter and revised the relevant documents of this major asset restructuring plan, please see the relevant replies and revision of relevant documents on “Revision announcement about the asset sale, issue of shares and cash purchase of assets and the raise of matching funds and the related transaction plan of China National Accord Medicines Corporation Ltd.”, and “Asset sale, issue of shares and cash purchase of assets and the raise of matching funds and the related transaction plan of China National Accord Medicines Corporation Ltd.” released on the designated information disclosure media on March 25, 2016. Since the disclosure of this major asset restructuring plan, the company, transaction parties and engaged intermediaries are actively promoting the audit, evaluation, and due diligence and other work related to the restructuring, after the completion of above-mentioned work, the company shall establish the reports and other documents related to this major asset restructuring, and reconvene the board meeting to consider the relevant matters involving in this major asset restructuring.
||||
|-|-|-|
|||Interim report disclosure website query|
|Overview of important matters|Date of disclosure||
|||index|
|"Proposal on the asset sale, issue of sharesand cash purchase of assets and the raise ofmatching funds and the related transactionplan of China National Accord MedicinesCorporation Ltd." etc.|||
|||Juchao Website|
||2016-03-10||
|||(http://www.cninfo.com.cn)|

||||
|-|-|-|
|“Revision announcement about the assetsale, issue of shares and cash purchase ofassets and the raise of matching funds andthe related transaction plan of ChinaNational Accord Medicines CorporationLtd.”, and revised “Asset sale, issue ofshares and cash purchase of assets and theraise of matching funds and the relatedtransaction plan of China National AccordMedicines Corporation Ltd.”|||
|||Juchao Website|
||2016-03-25||
|||(http://www.cninfo.com.cn)|

III. Commitments from the Company or shareholders (with over5% shares held) in or occurred in the previous period but continued to reporting period
√Applicable□Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
|||||Commitment|Commitment|Implementatio|
|Commitments|Promise|commitment|Content of commitments||||
|||||date|term|n|
|||s|||||
|Commitments for|||||||
|Share Merger|||||||
|Reform|||||||
||||As a large pharmaceutical||||
||||commercial enterprise whose||||
||||business involves pharmaceutical||||
||||wholesale and retail, Sinopharm||||
||||Holding may overlap with the||||
||||Company in geographical||||
||||segmentation during its future||||
||||business development. To avoid||||
||||the potential peer competition||||
||||brought by such geographical||||
|Commitments in|||||||
|||Commitmen|overlap, Sinopharm Holding|||Normally|
|report of|Sinopharm||||Long-term||
|||t of|undertakes that, upon the transfer|2005-06-21||implement|
|acquisition or equity|Holding||||effective||
|||shareholders|of shares of Sinopharm Holding||||
|change|||||||
||||Guangzhou it held to Accord||||
||||Pharma, “1. it will not||||
||||newly-establish or broaden within||||
||||Guangdong any business||||
||||operation that actually compete||||
||||with that of Accord Pharma, or||||
||||set up any new subsidiaries or||||
||||subordinate enterprises who||||
||||engage in such business. 2. It will||||
||||enter into business delineation||||

||||||||
|-|-|-|-|-|-|-|
||||with Accord Pharma and||||
||||Sinopharm Holding Guangzhou,||||
||||thereby giving the three parties||||
||||clear geographical areas to carry||||
||||out pharmaceutical wholesale and||||
||||retail businesses, so as to avoid||||
||||potential peer competition. Apart||||
||||from above, Sinopharm Holding||||
||||will no longer newly-establish||||
||||any enterprise that may compete||||
||||with Accord Pharma in the||||
||||production and R&D of||||
||||pharmaceutical products.”||||
|Commitments in|||||||
|assets reorganization|||||||
||||Sinopharm Holding has||||
||||undertaken in the Letter of||||
||||Undertaking from Sinopharm||||
||||Group Co. Ltd. on Avoiding Peer||||
||||Competition that, “I. the||||
||||Company and the enterprises it||||
||||wholly-owns, controls or has de||||
||||facto control over (excluding|||Controlling|
||||Sinopharm Accord and its|||shareholder|
||||controlled enterprises, similarly|||is implement|
||||hereinafter) do not exist any|||in real|
||||business or operation that would|||earnest,|
||||constitute substantive peer|||Sinopharm|
|Commitments make|||||||
|||Commitmen|competition with Sinopharm|||Accord will|
|in initial public|Sinopharm||||Long-term||
|||t of|Accord and its controlled|2013-09-05||actively urged|
|offering or|Holding||||effective||
|||shareholders|enterprises. II. the Company and|||the|
|re-financing|||||||
||||the enterprises it wholly-owns,|||controlling|
||||controls or has de facto control|||shareholder|
||||over will not engage in,|||and actual|
||||participate in or carry out in|||controller to|
||||Guangdong and Guangxi any|||fulfill|
||||business or activities that would|||commitments|
||||constitute substantive competition||||
||||with the pharmaceutical||||
||||commercial businesses of||||
||||Sinopharm Accord. III. The||||
||||Company and the enterprises it||||
||||wholly-owns, controls or has de||||
||||facto control over will not engage||||

|||||||
|-|-|-|-|-|-|
|||in, participate in or carry out any||||
|||business or activities that would||||
|||constitute substantive competition||||
|||with the pharmaceutical industrial||||
|||businesses of Sinopharm Accord.||||
|||IV. The Company will not make||||
|||use of its control over Sinopharm||||
|||Accord to damage the legal||||
|||interests of Sinopharm Accord||||
|||and other shareholders (especially||||
|||minority shareholders). The||||
|||Letter of Undertaking takes effect||||
|||since the date of issue and will||||
|||remain effective during the entire||||
|||period when the Company has||||
|||been the controlling shareholder||||
|||or connected party of Sinopharm||||
|||Accord. During the validity of the||||
|||Undertaking, the Company will||||
|||indemnify in time Sinopharm||||
|||Accord from any loss which may||||
|||arise out of the Company’s||||
|||violation of the Undertaking.”||||
|||Sinopharm Holding has||||
|||undertaken in the Letter of||||
|||Undertaking from Sinopharm||||
|||Group Co. Ltd. on|||Controlling|
|||Standardization of the Connected|||shareholder|
|||Transactions with China National|||is implement|
|||Accord Medicines Corporation|||in real|
|||Ltd. that, “I. during the period|||earnest,|
|||when the Company takes control|||Sinopharm|
||Commitmen|over Sinopharm Accord, the|||Accord will|
|Sinopharm||||Long-term||
||t of|Company and the companies or|2013-09-05||actively urged|
|Holding||||effective||
||shareholders|enterprises it directly or indirectly|||the|
|||controls (hereinafter referred to as|||controlling|
|||“Connected Party”) will strictly|||shareholder|
|||standardize the connected|||and actual|
|||transactions with Sinopharm|||controller to|
|||Accord and its controlled|||fulfill|
|||enterprises. II. for those|||commitments|
|||connected transactions beyond||||
|||avoidance or out of reasonable||||
|||causes, the Company and||||

||
|-|
|Connected Party will enter into|
|standardized connected|
|transaction agreement with|
|Sinopharm Accord according to|
|law. Sinopharm Accord will|
|perform approval procedure|
|according to relevant laws, rules|
|and regulations, other|
|standardization documents and its|
|constitutional documents, and|
|fulfill its obligation to disclose|
|information on connected|
|transactions. III. For those|
|connected transactions beyond|
|avoidance or out of reasonable|
|causes, the Company and|
|Connected Party will determine|
|the prices of connected|
|transactions based on the prices|
|of same or similar transactions|
|entered into by independent third|
|parties of no connection while|
|following the principles of open,|
|fair and just to ensure the|
|fairness. IV. when the board or|
|shareholders’ meeting of|
|Sinopharm Accord votes on the|
|relevant connected transactions|
|involving the Company and other|
|enterprises it controls, the|
|Company will perform|
|obligations including that|
|necessary interested directors and|
|shareholders shall be abstained|
|from voting according to relevant|
|regulations, and follow the legal|
|procedures for approval of|
|connected transactions and fulfill|
|its information disclosure|
|obligation. V. the Company|
|guarantees to attend shareholders’|
|meeting according to the|
|constitutional documents of|
|Sinopharm Accord, exercise its|

|||||||
|-|-|-|-|-|-|
|||corresponding rights and assumed||||
|||its corresponding obligations in||||
|||an equitable manner, not to take||||
|||advantage of its standing as||||
|||controlling shareholder to seek||||
|||unjust interests, or to use||||
|||connected transactions to illegally||||
|||transfer capital or profit out of||||
|||Sinopharm Accord, or to||||
|||prejudice the legal interests of||||
|||Sinopharm Accord and other||||
|||shareholders (especially minority||||
|||shareholders). VI. The Letter of||||
|||Undertaking takes effect since the||||
|||date of issue and will remain||||
|||effective during the entire period||||
|||when the Company has been the||||
|||controlling shareholder or||||
|||connected party of Sinopharm||||
|||Accord. During the validity of the||||
|||Undertaking, the Company will||||
|||indemnify in time Sinopharm||||
|||Accord from any loss that may||||
|||arise out of the Company’s||||
|||violation of the Undertaking.”||||
|||”Sinopharm Group has||||
|||undertaken in the Letter of||||
|||Undertaking from China National|||Controlling|
|||Pharmaceutical Group|||shareholder|
|||Corporation on Avoiding the Peer|||is implement|
|||Competition with China National|||in real|
|||Accord Medicines Corporation|||earnest,|
|||Ltd. that, “I. in the coming five|||Sinopharm|
||Commitmen|years, Sinopharm Group intends|||Accord will|
|Sinopharm||||Long-term||
||t of actual|to take appropriate measures|2013-10-16||actively urged|
|Group||||effective||
||controller|including replacement or|||the|
|||acquisition of assets or equity|||controlling|
|||reorganization to solve the|||shareholder|
|||problem of peer competition|||and actual|
|||between Weiqida and Sinopharm|||controller to|
|||Accord. II. apart from the|||fulfill|
|||matters disclosed in the past and|||commitments|
|||in the Letter of Undertaking, the||||
|||Company and the enterprises it||||

|||||||
|-|-|-|-|-|-|
|||wholly-owns, controls or has de||||
|||facto control over (excluding||||
|||Sinopharm Accord and its||||
|||controlled enterprises, similarly||||
|||hereinafter) do not directly||||
|||engage in, participate in or carry||||
|||out within the PRC any business||||
|||or activities that would constitute||||
|||substantive competition with the||||
|||production and operation of||||
|||Sinopharm Accord. The relative||||
|||undertakings in respect of||||
|||avoiding peer competition given||||
|||by the Company in the past||||
|||remain valid. III. The Company||||
|||will not take advantage of its||||
|||control over Sinopharm Accord to||||
|||damage the legal interests of||||
|||Sinopharm Accord and other||||
|||shareholders (especially minority||||
|||shareholders). IV. The Letter of||||
|||Undertaking takes effect since the||||
|||date of issue and will remain||||
|||effective during the entire period||||
|||when the Company has been the||||
|||de facto controller or connected||||
|||party of Sinopharm Accord.”||||
|||Sinopharm Group has undertaken||||
|||in the Letter of Undertaking from|||Controlling|
|||China National Pharmaceutical|||shareholder|
|||Group Corporation on|||is implement|
|||Standardization of the Connected|||in real|
|||Transactions with China National|||earnest,|
|||Accord Medicines Corporation|||Sinopharm|
||Commitmen|Ltd that, “I. during the period|||Accord will|
|Sinopharm||||Long-term||
||t of actual|when the Company takes control|2013-09-22||actively urged|
|Group||||effective||
||controller|over Sinopharm Accord, the|||the|
|||Company and the companies or|||controlling|
|||enterprises it directly or indirectly|||shareholder|
|||controls (hereinafter referred to as|||and actual|
|||“Connected Party”) will strictly|||controller to|
|||standardize the connected|||fulfill|
|||transactions with Sinopharm|||commitments|
|||Accord and its controlled||||

||
|-|
|enterprises. II. for those|
|connected transactions beyond|
|avoidance or out of reasonable|
|causes, the Company and|
|Connected Party will enter into|
|standardized connected|
|transaction agreement with|
|Sinopharm Accord according to|
|law. Sinopharm Accord will|
|perform approval procedure|
|according to relevant laws, rules|
|and regulations, other|
|standardization documents and its|
|constitutional documents, and|
|fulfill its obligation to disclose|
|information on connected|
|transactions. III. For those|
|connected transactions beyond|
|avoidance or out of reasonable|
|causes, the Company and|
|Connected Party will determine|
|the prices of connected|
|transactions based on the prices|
|of same or similar transactions|
|entered into by independent third|
|parties of no connection while|
|following the principles of open,|
|fair and just to ensure the|
|fairness. IV. when the board or|
|shareholders’ meeting of|
|Sinopharm Accord votes on the|
|relevant connected transactions|
|involving the Company and other|
|enterprises it controls, the|
|Company will perform|
|obligations including that|
|necessary interested directors and|
|shareholders shall be abstained|
|from voting according to relevant|
|regulations, and follow the legal|
|procedures for approval of|
|connected transactions and fulfill|
|its information disclosure|
|obligation. V. the Company|

||||
|-|-|-|
|||guarantees not to take advantage|
|||of its standing as actual controller|
|||to seek unjust interests, or to use|
|||connected transactions to illegally|
|||transfer capital or profit out of|
|||Sinopharm Accord, or to|
|||prejudice the legal interests of|
|||Sinopharm Accord and other|
|||shareholders (especially minority|
|||shareholders).”VI. The Letter of|
|||Undertaking takes effect since the|
|||date of issue and will remain|
|||effective during the entire period|
|||when the Company has been the|
|||actual controller or connected|
|||party of Sinopharm Accord.|
|Equity incentive|||
|commitment|||
|Other commitments|||
|for medium and|||
|small shareholders|||
|Completed on time|||
||Yes||
|or not|||

IV. Predict of the business performance from January to June 2016
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year
□Applicable √Not applicable
V. Securities Investment
□ Applicable√ Not applicable
No security investment in the Period.
VI. Derivative investment
□ Applicable√ Not applicable
No derivative investment in the Period.
VII. Registration form for receiving research, communication and interview in the report period
√Applicable□ Not applicable
|||||
|-|-|-|-|
|Date|||Basic situation index of investigation|
||Method|Type of investors||
||||Research situation see “Investor relations|
|2016-01-13|Field research|Institute|activity record on 13 January 2016” that|
||||the Company uploaded to Shenzhen|

||
|-|
|stock exchange interactions|
|(http://irm.cninfo.com.cn/ssessgs/S0000|
|28/index.html)|

VIII. Guarantee outside against the regulation
□Applicable√Not applicable
The Company had no guarantee outside against the regulation in the period.
IX. Non-operational fund occupation from controlling shareholders and its related party□ Applicable√ Not applicable
The Company had no non-operational fund occupation form controlling shareholders and its related party in the period.
Section IV. Financial Statement
I. Financial statement
1. Consolidate balance sheet
Prepared by China National Accord Medicines Corporation Ltd.
2016-03-31
In RMB
||||
|-|-|-|
|Item|Balance at period-end|Balance at period-begin|
|Current assets:|||
|Monetary funds|1,476,829,805.83|1,570,706,970.51|
|Settlement provisions|||
|Capital lent|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial assets|||
||827,173,710.53|820,125,807.67|
|Notes receivable|||
||7,516,654,933.29|6,153,830,882.75|
|Accounts receivable|||
|Accounts paid in advance|59,788,518.91|72,041,261.84|
|Insurance receivable|||
|Reinsurance receivables|||
|Contract reserve of reinsurance|||
|receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|46,197,363.97|38,175,884.46|
|Purchase restituted finance asset|||
|Inventories|2,241,114,541.67|2,533,160,758.28|
|Divided into assets held for sale||2,456,876.83|
|Non-current asset due within one|||
|year|||
|Other current assets|12,350,715.19|19,456,915.58|
|Total current assets|12,180,109,589.39|11,209,955,357.92|
|Non-current assets:|||

||||
|-|-|-|
|Loans and payments on behalf|||
|Finance asset available for sales|||
|Held-to-maturity investment|||
|Long-term account receivable|||
|Long-term equity investment|190,892,496.96|180,831,714.55|
|Investment property|142,669,542.33|145,102,318.77|
|Fixed assets|1,098,019,776.18|1,079,412,437.53|
|Construction in progress|142,266,655.14|176,096,786.58|
|Engineering material|||
|Disposal of fixed asset|||
|Productive biological asset|||
|Oil and gas asset|||
|Intangible assets|136,860,507.21|137,720,156.55|
|Expense on Research and|5,619,315.47|5,619,315.47|
|Development|||
|Goodwill|79,378,833.15|79,378,833.15|
|Long-term expenses to be|38,791,881.83|40,464,563.93|
|apportioned|||
|Deferred income tax asset|84,499,424.29|88,210,062.44|
|Other non-current asset|73,220,793.01|75,558,188.42|
|Total non-current asset|1,992,219,225.57|2,008,394,377.39|
|Total assets|14,172,328,814.96|13,218,349,735.31|
|Current liabilities:|||
|Short-term loans|1,327,167,887.16|1,212,959,267.74|
|Loan from central bank|||
|Absorbing deposit and interbank|||
|deposit|||
|Capital borrowed|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|1,159,255,532.51|1,301,594,416.81|
|Accounts payable|4,744,168,373.49|4,036,910,159.14|
|Accounts received in advance|53,354,398.79|56,943,167.40|
|Selling financial asset of|||
|repurchase|||
|Commission charge and|||

||||
|-|-|-|
|commission payable|||
|Wage payable|96,127,182.14|164,315,934.17|
|Taxes payable|112,615,669.79|72,863,480.20|
|Interest payable|6,111,460.23|6,544,067.19|
|Dividend payable|||
|Other accounts payable|576,015,459.88|468,450,153.85|
|Reinsurance payables|||
|Insurance contract reserve|||
|Security trading of agency|||
|Security sales of agency|||
|Divided into liability held for sale|||
|Non-current liabilities due within 1|7,520,033.19|5,444,858.84|
|year|||
|Other current liabilities|||
|Total current liabilities|8,082,335,997.18|7,326,025,505.34|
|Non-current liabilities:|||
|Long-term loans|72,495,172.30|72,495,172.30|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|9,327,331.42|8,394,559.05|
|Long-term wages payable|2,549,520.00|2,499,100.00|
|Special accounts payable|1,287,000.00|1,287,000.00|
|Accrual liabilities|||
|Deferred income|164,314,411.13|173,099,023.98|
|Deferred income tax liabilities|23,119,723.98|22,647,074.06|
|Other non-current liabilities|45,427,343.31|45,427,343.31|
|Total non-current liabilities|318,520,502.14|325,849,272.70|
|Total liabilities|8,400,856,499.32|7,651,874,778.04|
|Owner’s equity:|||
|Share capital|362,631,943.00|362,631,943.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||

||||
|-|-|-|
|Capital public reserve|1,863,894,533.34|1,863,894,533.34|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus public reserve|181,315,971.50|181,315,971.50|
|Provision of general risk|||
|Retained profit|3,244,540,132.49|3,045,551,246.71|
|Total owner’s equity attributable to|5,652,382,580.33|5,453,393,694.55|
|parent company|||
|Minority interests|119,089,735.31|113,081,262.72|
|Total owner’s equity|5,771,472,315.64|5,566,474,957.27|
|Total liabilities and owner’s equity|14,172,328,814.96|13,218,349,735.31|

 Legal Representative: Lin Zhaoxiong
Person in charge of accounting works: Wei Pingxiao
Person in charge of accounting institute: Wang Ying
2. Balance Sheet of Parent Company
In RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
||435,571,746.30|429,437,078.35|
|Monetary funds|||
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
||6,797,635.32|43,896,287.87|
|Notes receivable|||
|Accounts receivable|606,415,383.70|381,093,808.53|
|Account paid in advance|1,789,968.89|5,452,046.55|
|Interest receivable|1,967,461.71|2,053,659.27|
|Dividends receivable|||
|Other receivables|1,623,382,771.08|1,613,862,656.17|
|Inventories|163,105,942.26|182,659,794.51|
|Divided into assets held for sale|||
|Non-current assets maturing within|||
|one year|||
|Other current assets|39,482.38|39,482.38|
|Total current assets|2,839,070,391.64|2,658,494,813.63|

||||
|-|-|-|
|Non-current assets:|||
|Available-for-sale financial assets|||
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|2,805,291,991.34|2,795,231,208.93|
|Investment property|4,177,792.46|4,379,786.84|
|Fixed assets|421,747,206.06|391,937,393.50|
|Construction in progress|98,147,535.71|129,851,067.29|
|Project materials|||
|Disposal of fixed assets|||
|Productive biological assets|||
|Oil and natural gas assets|||
|Intangible assets|35,507,533.83|35,678,610.77|
|Research and development costs|||
|Goodwill|||
|Long-term deferred expenses|7,083,730.42|7,417,691.74|
|Deferred income tax assets|2,906,189.80|2,906,189.80|
|Other non-current assets|35,700,861.50|34,856,698.50|
|Total non-current assets|3,410,562,841.12|3,402,258,647.37|
|Total assets|6,249,633,232.76|6,060,753,461.00|
|Current liabilities:|||
|Short-term borrowings|190,000,000.00|106,000,000.00|
|Financial liability measured by fair|||
|value and with variation reckoned into|||
|current gains/losses|||
|Derivative financial liability|||
|Notes payable|171,340,931.37|285,394,838.22|
|Accounts payable|440,401,314.96|292,794,309.39|
|Accounts received in advance|5,361,477.29|5,841,769.74|
|Wage payable|15,529,796.84|22,441,125.24|
|Taxes payable|8,441,746.68|10,770,924.28|
|Interest payable|352,433.94|354,492.17|
|Dividend payable|||
|Other accounts payable|737,363,557.74|680,741,770.79|

||||
|-|-|-|
|Divided into liability held for sale|||
|Non-current liabilities due within 1|||
|year|||
|Other current liabilities|||
|Total current liabilities|1,568,791,258.82|1,404,339,229.83|
|Non-current liabilities:|||
|Long-term loans|72,495,172.30|72,495,172.30|
|Bonds payable|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Long-term account payable|||
|Long-term wages payable|72,000.00|72,000.00|
|Special accounts payable|800,000.00|800,000.00|
|Projected liabilities|||
|Deferred income|4,949,999.98|5,074,999.99|
|Deferred income tax liabilities|3,773,319.00|3,773,319.00|
|Other non-current liabilities|||
|Total non-current liabilities|82,090,491.28|82,215,491.29|
|Total liabilities|1,650,881,750.10|1,486,554,721.12|
|Owners’ equity:|||
|Share capita|362,631,943.00|362,631,943.00|
|Other equity instrument|||
|Including: preferred stock|||
|Perpetual capital|||
|securities|||
|Capital public reserve|1,869,692,921.70|1,869,692,921.70|
|Less: Inventory shares|||
|Other comprehensive income|||
|Reasonable reserve|||
|Surplus reserve|181,315,971.50|181,315,971.50|
|Retained profit|2,185,110,646.46|2,160,557,903.68|
|Total owner’s equity|4,598,751,482.66|4,574,198,739.88|
|Total liabilities and owner’s equity|6,249,633,232.76|6,060,753,461.00|

3. Consolidated Profit Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Total operating income|7,053,846,519.17|6,261,714,700.23|
|Including: Operating income|7,053,846,519.17|6,261,714,700.23|
|Interest income|||
|Insurance gained|||
|Commission charge and commission|||
|income|||
|II. Total operating cost|6,808,388,675.34|6,022,798,273.95|
|Including: Operating cost|6,519,978,864.87|5,727,401,760.21|
|Interest expense|||
|Commission charge and commission|||
|expense|||
|Cash surrender value|||
|Net amount of expense of|||
|compensation|||
|Net amount of withdrawal of|||
|insurance contract reserve|||
|Bonus expense of guarantee slip|||
|Reinsurance expense|||
|Operating tax and extras|14,380,933.14|13,110,911.30|
|Sales expenses|145,882,059.43|149,553,656.91|
|Administration expenses|103,771,187.01|101,713,713.18|
|Financial expenses|21,233,905.22|27,144,103.26|
|Losses of devaluation of asset|3,141,725.67|3,874,129.09|
|Add: Changing income of fair|||
|value(Loss is listed with “-”)|||
|Investment income (Loss is listed|||
||10,060,782.41|12,709,847.11|
|with “-”)|||
|Including: Investment income on|||
||10,060,782.41|12,709,847.11|
|affiliated company and joint venture|||
|Exchange income (Loss is listed|||
|with “-”)|||
|III. Operating profit (Loss is listed with|||
||255,518,626.24|251,626,273.39|
|“-”)|||

||||
|-|-|-|
|Add: Non-operating income|6,777,356.51|5,960,690.37|
|Including: Disposal gains of|||
||1,484,859.51|2,827.43|
|non-current asset|||
|Less: Non-operating expense|172,206.34|323,927.54|
|Including: Disposal loss of|||
||34,377.22|121,498.58|
|non-current asset|||
|IV. Total Profit (Loss is listed with “-”)|262,123,776.41|257,263,036.22|
|Less: Income tax expense|57,126,418.04|55,141,543.92|
|V. Net profit (Net loss is listed with “-”)|204,997,358.37|202,121,492.30|
|Net profit attributable to owner’s of|||
||199,027,472.31|197,026,237.82|
|parent company|||
|Minority shareholders’ gains and|||
||5,969,886.06|5,095,254.48|
|losses|||
|VI. Net after-tax of other comprehensive|||
|income|||
|Net after-tax of other comprehensive|||
|income attributable to owners of parent|||
|company|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will not be reclassified subsequently to|||
|profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method which|||
|will be reclassified subsequently to profit|||
|or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||
|available-for-sale financial assets|||

||||
|-|-|-|
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale financial|||
|assets|||
|4. The effect hedging portion|||
|of gains or losses arising from cash flow|||
|hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign currency|||
|financial statements|||
|6. Other|||
|Net after-tax of other comprehensive|||
|income attributable to minority|||
|shareholders|||
|VII. Total comprehensive income|204,997,358.37|202,121,492.30|
|Total comprehensive income|199,027,472.31||
|||197,026,237.82|
|attributable to owners of parent Company|||
|Total comprehensive income|5,969,886.06||
|||5,095,254.48|
|attributable to minority shareholders|||
|VIII. Earnings per share:|||
|(i) Basic earnings per share|0.549|0.543|
|(ii) Diluted earnings per share|0.549|0.543|

 Legal Representative: Lin Zhaoxiong
Person in charge of accounting works: Wei Pingxiao
Person in charge of accounting institute: Wang Ying
4. Profit Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Operating income|749,904,714.81|682,110,778.60|
|Less: Operating cost|722,509,130.22|651,556,733.03|
|Operating tax and extras|1,619,254.47|1,291,426.07|
|Sales expenses|10,022,247.07|11,197,849.92|
|Administration expenses|11,851,048.63|10,188,227.73|
|Financial expenses|-15,476,187.80|-15,344,108.10|
|Losses of devaluation of asset|181,694.80|142,228.63|
|Add: Changing income of fairvalue(Loss is listed with “-”)|||

||||
|-|-|-|
|Investment income (Loss is|||
||10,060,782.41|12,709,847.11|
|listed with “-”)|||
|Including: Investment income|||
||10,060,782.41|12,709,847.11|
|on affiliated company and joint venture|||
|II. Operating profit (Loss is listed|||
||29,258,309.83|35,788,268.43|
|with “-”)|||
|Add: Non-operating income|125,086.40|2.62|
|Including: Disposal gains of|||
|non-current asset|||
|Less: Non-operating expense||0.01|
|Including: Disposal loss of|||
|non-current asset|||
|III. Total Profit (Loss is listed with|||
||29,383,396.23|35,788,271.04|
|“-”)|||
|Less: Income tax expense|4,830,653.45|5,769,605.99|
|IV. Net profit (Net loss is listed with|||
||24,552,742.78|30,018,665.05|
|“-”)|||
|V. Net after-tax of other comprehensive|||
|income|||
|(I) Other comprehensive income|||
|items which will not be reclassified|||
|subsequently to profit of loss|||
|1. Changes as a result of|||
|re-measurement of net defined benefit|||
|plan liability or asset|||
|2. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will not be reclassified|||
|subsequently to profit and loss|||
|(II) Other comprehensive income|||
|items which will be reclassified|||
|subsequently to profit or loss|||
|1. Share of the other|||
|comprehensive income of the investee|||
|accounted for using equity method|||
|which will be reclassified subsequently|||
|to profit or loss|||
|2. Gains or losses arising|||
|from changes in fair value of|||

||||
|-|-|-|
|available-for-sale financial assets|||
|3. Gains or losses arising|||
|from reclassification of held-to-maturity|||
|investment as available-for-sale|||
|financial assets|||
|4. The effect hedging|||
|portion of gains or losses arising from|||
|cash flow hedging instruments|||
|5. Translation differences|||
|arising on translation of foreign|||
|currency financial statements|||
|6. Other|||
|VI. Total comprehensive income|24,552,742.78|30,018,665.05|
|VII. Earnings per share:|||
|(i) Basic earnings per share|||
|(ii) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|6,388,288,249.42|6,225,835,431.92|
|services|||
|Net increase of customer deposit|||
|and interbank deposit|||
|Net increase of loan from central|||
|bank|||
|Net increase of capital borrowed|||
|from other financial institution|||
|Cash received from original|||
|insurance contract fee|||
|Net cash received from reinsurance|||
|business|||
|Net increase of insured savings and|||
|investment|||
|Net increase of amount from|||
|disposal financial assets that measured|||

||||
|-|-|-|
|by fair value and with variation|||
|reckoned into current gains/losses|||
|Cash received from interest,|||
|commission charge and commission|||
|Net increase of capital borrowed|||
|Net increase of returned business|||
|capital|||
|Write-back of tax received|4,086,750.89|333,471.38|
|Other cash received concerning|||
||23,407,284.10|29,217,661.76|
|operating activities|||
|Subtotal of cash inflow arising from|||
||6,415,782,284.41|6,255,386,565.06|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|6,089,255,619.56|5,644,089,272.34|
|service|||
|Net increase of customer loans|||
|and advances|||
|Net increase of deposits in central|||
|bank and interbank|||
|Cash paid for original insurance|||
|contract compensation|||
|Cash paid for interest, commission|||
|charge and commission|||
|Cash paid for bonus of guarantee|||
|slip|||
|Cash paid to/for staff and workers|230,667,038.12|215,442,209.33|
|Taxes paid|139,883,077.94|132,719,577.58|
|Other cash paid concerning|||
||56,438,014.78|80,955,899.11|
|operating activities|||
|Subtotal of cash outflow arising from|||
||6,516,243,750.40|6,073,206,958.36|
|operating activities|||
|Net cash flows arising from operating|||
||-100,461,465.99|182,179,606.70|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
|income|||

||||
|-|-|-|
|Net cash received from disposal of|||
|fixed, intangible and other long-term|2,149,217.61|22,330.68|
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
|investing activities|||
|Subtotal of cash inflow from investing|||
||2,149,217.61|22,330.68|
|activities|||
|Cash paid for purchasing fixed,|||
||31,818,451.80|49,381,727.56|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net increase of mortgaged loans|||
|Net cash received from|||
|subsidiaries and other units obtained|||
|Other cash paid concerning|||
||26,754,358.77|252,000.00|
|investing activities|||
|Subtotal of cash outflow from investing|||
||58,572,810.57|49,633,727.56|
|activities|||
|Net cash flows arising from investing|||
||-56,423,592.96|-49,611,396.88|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|||1,470,000.00|
|investment|||
|Including: Cash received from|||
|absorbing minority shareholders’||1,470,000.00|
|investment by subsidiaries|||
|Cash received from loans|46,309,896.11||
|Cash received from issuing bonds|||
|Other cash received concerning|||
||112,026,204.05||
|financing activities|||
|Subtotal of cash inflow from financing|||
||158,336,100.16|1,470,000.00|
|activities|||
|Cash paid for settling debts|80,100,000.00|63,839,764.78|
|Cash paid for dividend and profit|||
||19,157,310.80|25,275,601.52|
|distributing or interest paying|||
|Including: Dividend and profit of|||

||||
|-|-|-|
|minority shareholder paid by|||
|subsidiaries|||
|Other cash paid concerning|||
||1,082,001.86|29,012,559.76|
|financing activities|||
|Subtotal of cash outflow from|||
||100,339,312.66|118,127,926.06|
|financing activities|||
|Net cash flows arising from financing|||
||57,996,787.50|-116,657,926.06|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in||9,250.41|
|exchange rate|||
|V. Net increase of cash and cash|||
||-98,888,271.45|15,919,534.17|
|equivalents|||
|Add: Balance of cash and cash|||
||1,569,226,304.36|854,212,006.84|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||1,470,338,032.91|870,131,541.01|
|equivalents at the period -end|||

6. Cash Flow Statement of Parent Company
In RMB
||||
|-|-|-|
|Item|Current Period|Last Period|
|I. Cash flows arising from operating|||
|activities:|||
|Cash received from selling|||
|commodities and providing labor|649,815,583.17|711,445,698.87|
|services|||
|Write-back of tax received|||
|Other cash received concerning|||
||7,378,429.80|3,324,178.44|
|operating activities|||
|Subtotal of cash inflow arising from|||
||657,194,012.97|714,769,877.31|
|operating activities|||
|Cash paid for purchasing|||
|commodities and receiving labor|660,517,729.80|697,915,966.60|
|service|||
|Cash paid to/for staff and workers|21,139,613.30|18,182,948.12|
|Taxes paid|12,632,832.46|6,338,325.38|
|Other cash paid concerning|||
||3,957,308.12|8,502,230.29|
|operating activities|||

||||
|-|-|-|
|Subtotal of cash outflow arising from|||
||698,247,483.68|730,939,470.39|
|operating activities|||
|Net cash flows arising from operating|||
||-41,053,470.71|-16,169,593.08|
|activities|||
|II. Cash flows arising from investing|||
|activities:|||
|Cash received from recovering|||
|investment|||
|Cash received from investment|||
||17,461,541.74|15,334,120.54|
|income|||
|Net cash received from disposal of|||
|fixed, intangible and other long-term|||
|assets|||
|Net cash received from disposal of|||
|subsidiaries and other units|||
|Other cash received concerning|||
||524,540,000.00|735,380,315.47|
|investing activities|||
|Subtotal of cash inflow from investing|||
||542,001,541.74|750,714,436.01|
|activities|||
|Cash paid for purchasing fixed,|||
||16,955,491.97|43,164,474.15|
|intangible and other long-term assets|||
|Cash paid for investment|||
|Net cash received from|||
|subsidiaries and other units|||
|Other cash paid concerning|||
||551,283,252.00|765,721,572.00|
|investing activities|||
|Subtotal of cash outflow from investing|||
||568,238,743.97|808,886,046.15|
|activities|||
|Net cash flows arising from investing|||
||-26,237,202.23|-58,171,610.14|
|activities|||
|III. Cash flows arising from financing|||
|activities|||
|Cash received from absorbing|||
|investment|||
|Cash received from loans|80,100,000.00|57,656,125.85|
|Cash received from issuing bonds|||
|Other cash received concerning|||
||1,356,395,860.16||
|financing activities|||

||||
|-|-|-|
|Subtotal of cash inflow from financing|||
||1,436,495,860.16|57,656,125.85|
|activities|||
|Cash paid for settling debts|80,100,000.00|10,000,000.00|
|Cash paid for dividend and profit|||
||2,805,513.22|4,011,288.08|
|distributing or interest paying|||
|Other cash paid concerning|||
||1,280,165,006.05|2,000,160.00|
|financing activities|||
|Subtotal of cash outflow from|||
||1,363,070,519.27|16,011,448.08|
|financing activities|||
|Net cash flows arising from financing|||
||73,425,340.89|41,644,677.77|
|activities|||
|IV. Influence on cash and cash|||
|equivalents due to fluctuation in|||
|exchange rate|||
|V. Net increase of cash and cash|||
||6,134,667.95|-32,696,525.45|
|equivalents|||
|Add: Balance of cash and cash|||
||429,437,078.35|257,173,314.81|
|equivalents at the period -begin|||
|VI. Balance of cash and cash|||
||435,571,746.30|224,476,789.36|
|equivalents at the period -end|||

II. Audit report
Whether the first quarterly report had been audited or not
□ Yes√ No
The first quarterly report of the Company had not been audited.